Multiple Choice Questions (Select the right answer and mention it on your answer sheet). (5 marks)

1. When seller is not deemed to be unpaid.

1. Goods have been sold on credit
2. Goods have been sold on cash, payment is not made
3. Goods have been sold on credit, but till the expiration of credit period, payment has not been made
4. Before the expiry of credit period, the buyer becomes insolvent

2. When a party to a contract transfers his contractual rights to another with mutual consent, it is known as

1. Rescission of contract
2. Remission of contract
3. Novation of contract

3. Consideration

1. must be adequate to the promise made
2. need not be adequate to the promise made
3. must be of reasonable value

4. Mr. Abbas offered to sell his car at Rs. 800, 000 to the agent of Mr. Husain. He did not communicate this offer to the principal (Mr. Husain) and accepted the offer of Mr. Abbas. This contract is called ___________.

1. Valid
2. Void
3. Voidable

5. A mere attempt to deceive by one party

1. Is not fraud unless the other party is actually deceived.
2. Is fraud whether the other party has been actually deceived or not.
3. Amounts to misrepresentation