There is a lot of animals.
There are lot of animals.
Which one between the above sentences is correct? Or can both be used?
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Unless the second is a typo, then neither are correct.
"There is a lot of" and "There are a lot of" are both legitimate terms, depending on whether the noun is countable or not.
In your example, animals are countable, therefore the sentence should read.
There are a lot of animals.
There are lots of animals.
"There ARE a lot of animals" is incorrect. "Lot" is the subject of the sentence and it is singular. "Is" goes with a singular subject, "are" goes with a plural subject. "There ARE lots" is correct because the subject "LOTS" is plural. When you say..."There IS a lot of animals"...that is correct. "Animals" is plural but it's not the subject. It's the object of the preposition "of". This is also INCORRECT..."There was an accident. But none of the passengers WERE injured". The correct way is...."But none of the passengers WAS injured". "Passengers" is not the subject but the object of the preposition "of". "None" is the subject. It's singular because "None" is short for "not one". If you're asked..."how many were injured?". You wouldn't say..."Not one were". You'd say..."Not one was".