Bailment and Pledge- Multiple Choice Questions

1. The term “Bailment” means

A. A delivery of a thing entrusted for some special purpose or object upon a
contract
B. Delivery of goods free of cost
C. Delivery of goods without cost for welfare of public
D. None of above
Answer – A

2. The delivery of goods by one person to another for some purpose upon a
contract that they shall when the purpose is accomplished be returned or
otherwise dispose of upon discretion of the delivering person the contract is
called
A. Indemnity
B. Bailment
C. Contingent Contract
D. None of above
Answer – B

3. In pledge contract, bailee is called

A. Pawnor
B. Pawnee
C. Pledger
D. None of above
Answer – B

4. In pledge, bailor is called

A. Pawnor
B. Pawnee
C. Both (a) and (b)
D. None of above
Answer – A

5. The Bailment of goods as security for payment of a debt or performance

of a promise is called:
A. Pledge
B. Bailment
C. Contingent contract
D. Agreement
Answer – A
6. Bailment means ………..
(a) temporary delivery of goods
(b) permanent delivery of goods
(c) part delivery of goods
(d) None
Ans. (a)

7. In the contract of bailment the person delivering the goods is called ………
(a) bailor
(b) bailee
(c) seller
(d) agent
Ans. (a)

8. Lien means ………..

(a) to retain goods in his possession
(b) rights to sell the goods
(c) right to purchase the goods
(d) right to destroy the goods
Ans. (a)

9. When goods are lent to a person to be used by him on free of cost. That is
……….. contract.
(a) comodatum
(b) pawn
(c) hire
(d) gift
The meaning of COMMODATUM is a gratuitous loan of movable property to
be used and returned by the borrower.
Ans. (a)

10. The person to whom goods are delivered temporally is ………

(a) baliee
(b) bailor
(c) purchaser
(d) user
Ans. (a)

11. When in transaction of Bailment comes to an end, the duty of transfer the
goods lies upon whom ?
(a) Bailee
(b) Bailor
(c) Bailment
(d) Person
Ans. (a)

12. Commodatum is a one type of Bailment in which ………..

(a) no consideration is charged
(b) consideration is charged
(c) reimburse severance of expenses is include behind the assets
(d) none of these
Ans. (a)

13. The bailor is bound to disclose to the bailee ……….

(a) faults the goods
(b) price of goods
(c) weight of goods
(d) owner of goods
Ans. (a)

14. The finder of goods has right of ………

(a) lien
(b) purchase
(c) succession
(d) none
Ans. (a)

15. A finder of goods is subject to the same responsibility as that of a ……..

(a) bailee
(b) bailor
(c) surety
(d) purchaser
Ans. (a)

16. The bailment of goods as security for payment of a debt is called ………
(a) pledge
(b) bailment
(c) mortgage
(d) none of these
Ans. (a)

17. The bailment of goods as security for performance of a promise is called

(a) pledge
(b) bailment
(c) mortgage
(d) None of these
Ans. (a)

18. The pledge is a contract of ………..

(a) bailment
(b) agency
(c) guarantee
(d) mortgage
Ans. (a)
19. An agreement reached between a bailer and a bailee is
a) Mortgage
b) Bailout
c) Bailment
d) Codicil
Ans.c

20. In general all of the following are requirement for a bailment; except
that the:
a) Bailor must be in possession of goods
b) Bailee must intent to possess goods
c) Bailee must return identical goods
d) Actual ownership of goods is necessary
Ans.d

21. A person who finds the goods belonging to others and takes them into
his possession is called
a) Bailee
b) Bailor
c) Pledgor
d) Pawnee
Ans.a

22. Which are the rights of finder of goods

a) Rights of lien
b) Right to sue for reward
c) Right to sale
d) All of the above
Ans.d

23. The bailment of goods as security for payment of a debt or

performance of a promise
a) Pledge
b) Lien
c) Agency
d) Bailment
Ans.a

24. Pledgee is also known as

a) Pawnee
b) Pawnor
c) Principal
d) Agent
Ans.a

25. Pledgor is also known as

a) Pawnor
b) Pawnee
c) Bailor
d) Agent
Ans.a

26. The term bailment is derived from a French word “bailor”, which
means:
a) Depends
b) Deliver
c) Selling
d) Buying
Ans.b

27. The person delivering the goods for achieving some purpose and
returned the same after completion is called
a) Bailee
b) Pledgee
c) Bailor
d) Agent
Ans.c

28. The person who delivered the goods for bailment process is called
a) Bailee
b) Bailor
c) Pawnor
d) Pawnee
Ans.b
29. When No consideration passes between the bailor and bailee, it is
called
a) Non gratuitous bailment
b) Gratuitous bailment
c) Special bailment
d) Conditional bailment
Ans.b

30. Choose the correct one; Duties of bailor

a) To return the goods
b) To disclose known faults
c) Not to set up an adverse title
d) To return any accretion to the goods
Ans.b

31. Right of a person to retain possession of some goods belonging to

another until some debts of the person in possession is satisfied
a) Pledge
b) Bailment
c) Lien
d) Guarantee
Ans.c

32. A gives B two suitcases to store for him while he is at a meeting. What
is the correct relationship between A and B.
a) A is the bailee and B is the bailor
b) A is the bailor and B is the bailee
c) A and B are both bailees
d) A and B are both Bailor
Ans.b

33. Which of the following is not an example of bailment

a) A coat check
b) Valet parking
c) Dry cleaning
d) A gift given on birthday
Ans.d

34. An example of bailment without a contract is ——

a) Giving a vehicle in a workshop for repair
b) Giving something in courier
c) Finder of the lost goods
d) None of these.
Answer: c

35. A finder of goods is

a) Entitled to retain the goods
b) Entitled to claim compensation when specific reward is offered
c) Not entitled to claim compensation and thus not entitled to retain the goods
d) Both (A) and (B)
Answer: d

36. Which of the following are the rights of bailee?

a) Right of indemnity
b) Right of remuneration
c) Right of lien
d) All the above.
Answer: d

37. Which of the following are the rights of bailor?

a) Right to demand restoration of goods
b) Right to get increase or profit from goods bailed
c) Right to sue the bailee for the enforcement of the duties imposed upon a
bailee
d) All the above.
Answer: d

38. Which of the following is not an example of bailment?

a) Giving clothes for dry-cleaning
b) Keeping property in mortgage
c) Giving clothes for tailoring
d) Giving book for reading
Answer: b

39. ———- entitles the bailee to retain those goods of the bailor for a general
balance of the account.
a) Particular lien
b) General lien
c) Ownership
d) Pledge
Answer: b
1. The term “Pledge” means

A. A thing which is given as security

B. A thing which is saled out

C. Both (a) and (b)

D. None of above

2. The term “Bailment” means

A. A delivery of a thing entrusted for some special purpose or object upon

a contract

B. Delivery of goods free of cost

C. Delivery of goods without cost for welfare of public

D. None of above

3. The definition of ‘Bailment’ is provided in section_____, of the Contract Act.

A. 146

B. 147

C. 148

D. All of above

4. The delivery of goods by one person to another for some purpose upon a
contract that they shall when the purpose is accomplished be returned or
otherwise dispose of upon discretion of the delivering person the contract is
called

A. Indemnity

B. Bailment

C. Contingent Contract

D. None of above

5. In pledge contract bailee is called

A. Pawnor

B. Pawnee

C. Pledger

D. None of above

6. Section 178, of the Contract Act 1872 deals with

A. Pledge by Trust agent

B. Pledge by mercantile agent

C. Pledge by international agent

D. None of above

7. A person employed to do any act for another or to represent another in

dealings with third person is called

A. Servant

B. Labour

C. Agent

D. None of above

8. The person who during the contract of bailment deliver goods is called

A. Bailor

B. Bailee

C. Both (a) and (b)

D. None of above

9. The person to whom goods are delivered according Bailment is called

A. Bailor

B. Bailee

C. Both (a) and (b)

D. None

10. In Bailment, bailor is duty bound to disclose fault in goods bailed as

provided in section

A. 148, of the Contract Act

B. 149, of the Contract Act

C. 150, of the Contract Act

D. None of above

11. A hires a carriage of B. The carriage is unsafe though B is not aware of it

and A is injured

A. B is responsible to A for the injury

B. B is not responsible to A for the injury

C. No one is responsible to each other

D. None of above

12. The bailment of goods as security for payment of debt or performance of a

promise is called

A. Pledge

B. Special bailment

C. Both (a) and (b)

D. None of above

13. In pledge bailor is called

A. Pawnor

B. Pawnee

C. Both (a) and (b)

D. None of above
14. If the bailee, without the consent of the bailor, mixes the goods of the
bailor with his own goods in such a manner that it is impossible to separate
the goods bailed from the other goods and deliver them back, the bailor is
entitled to be :

A. Compensated by the bailee for the loss of the goods

B. Compensated by the bailee for the 1/3 of loss

C. Compensated by the bailee for the 1/2 of loss

D. Compensated by the bailee for rupees 500

15. The Bailment of goods as security for payment of a debt or

performance of a promise is called :

A. Pledge

B. Bailment

C. Contingent contract

D. Agreement

16. The delivery of goods by one person to another for some purpose, upon a
contract and that they shall, when the purpose is accomplished, be returned or
otherwise disposed of by accounting to the directions of the person delivering
them, then it is called :

A. Contingent contract

B. Bailment

C. Pledge

D. Contract of indemnity

17. Section 180 of Indian Contract Act, 1872 provides :

A. Pledge where pownor has only a limited interest

B. Suit by bailor or bailee against wrongdoer

C. Appointment of relief or compensation obtained by such suit

D. Pawnee’s right where pawnor makes default

18. Section 170 of Indian contract Act 1872 provides :

A. Bailee’s particular lien

B. Care to be taken by bailee

C. Bailor’s responsibility to bailee

D. Pawnee’s right to retainer

19. If the bailee, with the consent of the bailor, mixes the goods of the bailor
with his own goods, the bailor and the bailee shall have an interest, in
production to their respective shares, in the mixture thus produced , it is :

A. True

B. False

C. Partly False

D. Not clear

20. Bailment and Pledge are contracts under Indian Contract Act.

A. True

B. False

C. Only when certain conditions are fulfilled

1. Section ------------ of Indian Contract Act defines a contract of

Indemnity.
A) Section 127
B) Section 124
C) Section 125
D) Section 130
1. Section ------------ of Indian Contract Act defines a contract of
Indemnity.
A) Section 127
B) Section 124
C) Section 125
D) Section 130
1. Section ------------ of Indian Contract Act defines a contract of
Indemnity.
A) Section 127
B) Section 124
C) Section 125
D) Section 130
1. Section ------------ of Indian Contract Act defines a contract of
Indemnity.
A) Section 127
B) Section 124
C) Section 125
D) Section 130
1. Section ------------ of Indian Contract Act defines a contract of
Indemnity.
A) Section 127
B) Section 124
C) Section 125
D) Section 130
2. A contract by which one party promises the other party to save
from loss which may be caused either by the conduct of the
promissor or by the conduct of any other person is called as --------
A) Contract of Bailment
B) Contract of Guarantee
C) Contract of Pledge
D) Contract of Indemnity

Discharge of Contract – Multiple Choice Questions

1. A contract can be discharged by:

a. Mutual agreement and performance
b. Lapse of time and operation of law
c. Breach of contract
d. All of these

A contract may come to an end on account of mutual agreement and

performance, lapse of time and operation of law and breach of contract.
Hence, option (d) is the correct answer.

2. If a new contract is substituted in place of an existing contract it is

called
a. Alteration
b. Rescission
c. Novation
d. Waiver
 Novation occurs when a new contract is substituted for an existing one
between the same parties. Hence, option (c) is the correct answer.

3. The original contract need not be performed if there is

a. Alteration of contract
b. Rescission of contract
c. Novation
d. All of these

In alteration of contract, one or more terms of the original contract changes with
mutual consent of the parties. In Rescission of contract, all or some of the terms
of the contract are cancelled. In case of novation, a new contract is substituted
for an existing one between the same parties. In all these cases the original
contract is discharged and a new contract is created. So, the original contract
need not be performed if there is alteration, rescission or novation of contract.
Hence, option (d) is the correct answer.

4. A lets out a theatre to B for a series of drama for certain days. The theatre
was completely destroyed by fire before the scheduled dates. In the case:
a. The contract is discharged by impossibility of performance
b. The contract is void ab initio
c. The contract is voidable at the option of B
d. The contract remains valid and must be performed

If at the time of making the contract, both the parties are ignorant of the
impossibility, then the contract is discharged by impossibility of performance.
In this case, at the time of formation of contract A and B both did not know
about the fire. So, the contract is discharged by impossibility of performance.
Hence, option (a) is the correct answer.

5. P, a resident of USA agrees to export leather bags to Q, a resident of

Afghanistan. Meanwhile before the order can be executed, war broke out
between USA and Afghanistan.

a. P must execute the contract

b. The agreement becomes voidable at the instance of Q.
c. The agreement becomes void due to Supervening impossibility
d. All of these.
Where the impossibility arises subsequent to the formation of a contract, the act
becomes impossible or unlawful to perform, it is called as supervening
impossibility and the contract becomes void (sec. 56). As, war broke out
between USA and Afghanistan, the agreement becomes void due to
Supervening impossibility. Hence, option (c) is the correct answer.

6. P hired a godown from D for a period of 12 months @Rs.1,000 per

month and paid the full amount (Rs.12,000) of rent to D in advance.
After four months, the godown was destroyed by fire.
a. P can claim refund of Rs.12,000 from D
b. P cannot claim for any refund from D
c. P can claim refund of Rs.8,000 from D
d. None of the above.

Where the impossibility arises subsequent to the formation of a contract and the
act becomes impossible or unlawful to perform, it is called as supervening
impossibility and the contract becomes void (sec. 56). In the given problem, P
can claim refund of Rs.8,000 from D as the accident takes place after 4 months
of the contract. Hence, option (c) is the correct answer.