1. A _____ is comprised of reciprocal promises.

A.

Agreement

B.

Contract

C.

Both

D.

None of these

2. Which section of surety is discharged by any contract between the creditor and the principal debtor, b
released. Any release of the principal debtor is a release of the surety also.

A.

Section 134

B.

Section 135

C.

Section 138

D.

Section 137

3. Does release of one co-surety does not discharge other?

A.

Where there are co-sureties, a release by the creditor of one of them does not discharge the
surety so released from his responsibility to the other sureties. Correct answer

B.

Where there are co-sureties, a release by the debtor of one of them does not discharge the o
surety so released from his responsibility to the other sureties.

C.

Where there are co-sureties, a release by the supplier of one of them does not discharge the
surety so released from his responsibility to the other sureties.

D.

All of these

4. The seller must exercised his right of resale within a reasonable _____.

A.

Time

B.

Price

C.

Cost

D.

None of these

5. Is an agent entitled to retain possession of the principal's property until he has been paid?

A.

Yes, but only in respect of the particular property for which the money is owed and provid
possession

B.

No, but only in respect of the particular property for which the money is owed and provide

C.

Not without an order of the court

6. Where an agent has apparent authority to make a contract for a disclosed principal, who may enforce i

A.

The principal may enforce the agreement against the agent but the agent may not enforce it

B.

The principal cannot enforce the contract against the third party but the third party may enf

C.

The principal cannot enforce the contract against the third party unless he ratifies it, but the
against the principal.

7. What is the discharge of surety by variance in terms of contract?

A.

Any variance made without the surety's consent, in the terms of the contract between the p
creditor. Correct answer

B.

It may at any time be revoked by the surety, as to future transactions, by notice to the credi

C.

It is co-extensive with that of the principal debtor, unless it is otherwise provided by the co

D.

It extends to a series of transaction

8. The ownership of goods is different from _____ of goods.

A.

Possession

B.

Property

C.

selection

D.

none of these

9. A _______between the creditor and the principal debtor, by which the creditor make a composition w
not to sue, the principal debtor, discharges the surety, unless the surety assents to such contract.

A.

Contract

B.

Agreement

C.

Either Contract or Agreement

D.

neither Contract norAgreement

10. In the case of a disclosed agency, can the agent sue or be sued on the contract made with the third par

A.

Yes

B.

No

C.

Not unless the contract itself or the circumstances show that the agent has accepted person

11. Does an agent have the right to be remunerated by the principal?

A.

Yes, provided there is a term in the agency agreement to this effect and the agent acts with
has ratified an agent's unlawful act).

B.

Yes, provided there is a term in the agency agreement to this effect.

C.

Yes, even in the absence of a term in the agency agreement to this effect.

12. The _______ of goods refer to the custody of goods, though normally a person who is in possession o
but it need not necessarily be so.

A.

possession

B.

propety

C.

Selection

D.

none of these

13. Section ____ to 25 lay down the rules which determine when property passes from seller to the buyer.

A.

18

B.

19

C.

20

D.

21

14. What is the surety's liability?

A.

It is co-extensive with that of the principal debtor, unless it is otherwise provided by the co

B.

extends to a series of transaction

C.

It may at any time be revoked by the surety, as to future transactions, by notice to the credi

D.

None of these

15. Where an agent has actual authority to make a contract for a disclosed principal, who may enforce it a

A.

The principal may enforce the agreement against the third party and the third party may lik
principal.

B.

The principal may enforce the agreement against the third party but the third party may not

C.

The principal may enforce the agreement against the agent but the agent may not enforce it

16. Where a guaranteed debt has become due, or default of the principal debtor to perform a guaranteed d
upon _______ of all that he is liable for, is invested with all the rights which the creditor had against th

A.

Payment

B.

Performance

C.

Only Payment

D.

Both Payment and Performance

17. When the goods are put up for sale in lots, each lot is deemed _____ to be the subject matter of the sep

A.

Prima facie

B.

prime facie

C.

Prima face

D.

None of these

18. Does an agent have the right to be indemnified by his principal for expenses, losses and liabilities?

A.

Not unless there is an express term to this effect in the agency agreement.

B.

Yes, in respect of those that he reasonably incurs whilst executing his duties as agent withi
authority. This is the case unless there is an express term in the agency agreement to the contrar

C.

Yes, in respect of those that he reasonably incurs whilst executing his duties as agent withi
apparent authority. This is the case unless there is an express term in the agency agreement to th

19. In the case of _____ goods in a deliverable state the property passes at the time of the contract is made

A.

Specific

B.

Giffen

C.

Supplementry

D.

Complementry

20. Right of resale is also available where, by the contract seller has expreselly reserved a right of resale i
Section 54(____) .

A.

B.

C.

D.

21. ____ means to retain possession of an unpaid seller who is in possession of goods is entitled to retain
payment or tender of the price.

A.

Mortgage

B.

Lien

C.

Gratis

D.

None of these

22. Section 2 (_______) state that goods are set to be in a deliverable state when they are in such a state th
contract be bound to take delivery of them.

A.

B.

Correct answer

C.

D.

23. Section _____ provides that where the seller wrongfully neglects to deliver the goods to the buyer, ma
non delivery.

A.

58

B.

57

C.

56

D.

59

24. It might be unfair to allow an undisclosed principal to sue a third party on a contract where the third p
had contracted on the principal's behalf. What justification was given for this in Keighley, Maxted & C

A.

Convenience

B.

Common sense

C.

Culpability

25. _____ can be exercised only for non-payment of the price and not for any charges due against the buy

A.

Mortgage

B.

Lien

C.

Gratis

D.

None of these

26. Where the agent is acting on behalf of a disclosed principal and the third party settles with the agent, will
with the principal?

A.

Yes

B.

Only if the agent had either actual or apparent authority to accept monies on behalf of the prin

C.

No

27. Section ____ provides that in a contract of sale of specific or ascertained goods, if the seller fails to de
file a suit for specific performance.

A.

59

B.

58

C.

60

D.

57

28. The measure of damages in case of resale is the difference in the contract ______ and the price realize
expenses of resale.

A.

Cost

B.

Price

C.

Profit

D.

None of these

29. Where the third party settles with an undisclosed agent, will he be deemed to have settled with the pri

A.

no

B.

yes

C.

Only if the agent accounts to the principal for the money

30. A seller of goods is an _____ seller when whole of the price has been not paid or tender.

A.

Unpaid

B.

Paid

C.

Both unpaid and paid

D.

None of these