The Indian Contract Act, 1872 – Test 3

Statement (1): In a gratuitous bailment, the bailor is liable to disclose all the faults whether known to him or not
Statement (2): In a non-gratuitous bailment, the bailor is liable to disclose only such faults which are known to
him.

If the bailee does any act inconsistent with the terms and conditions of the contract, the bailment become
_________.

Statement (1): If the bailee makes any inconsistent use of goods, the bailment becomes void.
Statement (2): If the bailee makes any inconsistent use of goods, the bailee shall be liable for any loss or damage
except such loss as is caused due to an act of god or other unavoidable reasons.

If the bailment is _________ and __________, the bailor may compel the bailee to return the goods before
expiry of the period of bailment but the bailor shall indemnify the bailee for any loss incurred by the bailee.

In case there are 2 or more joint owners of the goods, the bailee has to deliver them back to __________, in
the absence of any agreement to the contrary.

If the true owner does not pay to the finder of goods and expenses incurred by the finder of goods for finding the
true owner and preserving the goods, the finder of goods has the right to __________

If the true owner does not pay to the finder of goods the reward declared by the true owner for finding the goods,
the finder of goods has the right to ________

If the true owner refuses to pay the lawful expenses incurred by the finder of goods, the finder of goods has the
right to sell the goods if the goods are in danger of perishing or losing a greater part of its value __________
the lawful charges of the finder, in respect of the goods found, amount to __________ of value of goods

The bailment of goods as security for __________ is called ‘pledge’

In case of default by the pawnor to pay the debt or perform his promise, the pawnor has the right to sell the
goods after giving _________ to the pawnor

Where a person pledges the goods in which he has only a limited interest, the pledge is __________

An ‘agent’ is a person employed to _________

Any person may employ an agent if _________

A minor or a person of unsound mind __________

An agent is not liable to the principal if ___________.

In a contract of agency, __________

__________ is a person employed by, and acting under the control of, the original agent in the business of the
agency.

A substituted agent acts on behalf of the ___________

A substituted agent is appointed by ___________ to act on behalf of __________

Where a part of transaction is ratified, _________

Agency coupled with interest _________

When agency is created for securing some benefit to the agent __________ his remuneration as an agent, it is
called as agency coupled with interest

Agency coupled with interest does not terminate by reason of __________

It is the duty of the agent to protect and preserve the interest on behalf of the principal’s representative in case
of __________

If the remuneration is not fixed, then he has ___________

If an agent acts for sale or purchase of goods for a principal resident abroad, _________

A Contract is called as a ‘contract of indemnity’ if one party promises to save the other from loss caused to him
by __________

There are __________ parties in a contract of indemnity

The party who gives indemnity is called as _________

The party to whom indemnity is given is called as __________