Objective Questions with Answers on Law Of Contract - 71

1) X takes a room on rent in a hotel an pays advance rent for a month, when he enters the room, he sees a notice that, the owner of the hotel will not be liable for loss or theft of goods unless the goods are deposited with the manager. Due to negligence of the employees of the hotel the goods of X are stolen. Point out the correct statement of the following..

 

A) The owner of the hotel is not liable because notice had been  given to x

B) The owner of the hotel is not liable for the negligence of his employees

C) The owner of the hotel shall be liable to x because notice had been given after the conclusion of the contract

D) None of the above

Answer : C

2) X and Y jointly owe rs. 1000 to Z. X pays Rs. 1000 to Z alone an unknown of this fact y again pays Rs.1000 to Z. Point out the correct statement of the following...

A) Z bound to return y Rs. 1000

B) Z is bound to return Y only Rs. 500

C) Z is  not bound to return Y any amount

 D) Z may refuse to return X and Y both

Answer : A

3) A lost his watch and offered a reward of Rs. 500 to the finder. B not having learnt of the reward found and returned the watch to A. In this circumstance...

A) B can claim the reward

B) B cannot claim the reward

C) B can recover the watch from A

D) B can claim damages from A

Answer : B

4) X resides in Lucknow and Y resides in Kanpur. Both enter into a contract stipulating that in case the contract is not performed, the suit for breach of contract would be brought in Kanpur only within a year, such contract is :

A) Valid  because both have agreed to the condition

B) Void because it restricts the jurisdiction of court

C) Void because it restricts the time prescribed by the law of limitations

D) Voidable at the option of either party

Answer : C

5)  X seeks a loan from Y without, security at such time when no one is ready to give loan to X without security. Y agrees to give loan only at a very high rate  of interest looking into the dire necessity of X. Such contract is...

A) Void

B) Voidable at the instance of y only

C) Voidable at the instance of x only

D) Valid

Answer : D