Business Law Online MCQ Set 6

QN01. Which of following result in an offer-

  1. A declaration of intention
  2. an invitation to offer,
  3. an advertisement offering reward to anyone who finds lost dog of the advertise,
  4. an offer made in a joke.
Answer

(C) an advertisement offering reward to anyone who finds lost dog of the advertise,

QN02. An agreement made with an alien enemy is

  1. unlawful on the ground of public policy
  2. unlawful because it becomes difficult to be performed
  3. valid, d)voidable.
Answer

(A) unlawful on the ground of public policy

QN03. A contract to pay B Rs. 10,000 if B s house is burnt – This is a

  1. wagering agreement
  2. void
  3. voidable agreement
  4. contingent contract
  5. contract of guarantee.
Answer

(D) contingent contract

QN04. The case of Mohiri Bibi v. Dharmodas Ghose (1903) deals with-

  1. communication of offer
  2. communication of acceptance
  3. a minors agreements
  4. fraud
  5. a lunatic’s agreement.
Answer

(C) a minors agreements

QN05. Each party is a promisor and a Promisee in case of –

  1. past consideration
  2. present consideration
  3. every contract
  4. reciprocal promises
Answer

(D) reciprocal promises

QN06. The case of Taylor v. caldwell (1883)deals with-

  1. discharge of contract by destruction of subject matter,
  2. anticipatory breach of contract
  3. discharge of contract by death of a party
  4. breach of contract.
Answer

(A) discharge of contract by destruction of subject matter,

QN07. A promise made without the intention of performing it amounts to –

  1. innocent misrepresentation
  2. fraud
  3. negligent Misrepresentation
  4. wrongful misrepresentation
Answer

(B) fraud

QN08. A minor, by misrepresenting his age, borrows some money –

  1. he can be sued for the fraud,
  2. he cannot be sued for the fraud
  3. he is liable to return the money
  4. None of the above.
Answer

(B) he cannot be sued for the fraud

QN09. If there is a fraudulent misrepresentation as to the contents of a document, the contract is –

  1. void,
  2. voidable,
  3. valid
  4. illegal
Answer

(B) Voidable,

QN10. There is a counter-offer when-

  1. the offeree gives conditions for acceptance or introduces a fresh term in acceptance
  2. the offerer makes a fresh offer
  3. the offeree makes some query.
  4. the offeree accepts it.
Answer

(A) the offeree gives conditions for acceptance or introduces a fresh term in

QN11. An agreement made without consideration is

  1. valid,
  2. illegal,
  3. voidable
  4. void
Answer

(D) void

QN12. On the face of the ticket for a journey the words – for conditions see back are printed in small print. The passenger ________________

  1. is bound by the conditions whether he takes care to read them or not.
  2. is not bound by the conditions
  3. may not take note of the conditions
  4. none of the above.
Answer

(A) is bound by the conditions whether he takes care to read them or not.

QN13. A contract creates

  1. rights in personam,
  2. rights in rem,
  3. only rights and no obligations,
  4. only obligations and no rights.
Answer

(B) rights in rem,

QN14. A mere attempt at deceipt by a party to a contract ________________

  1. is not fraud unless the other party is actually deceived
  2. is fraud whether the other party has been deceived ornot
  3. amounts to misrepresentation
  4. none of the above.
Answer

(A) is not fraud unless the other party is actually deceived

QN15. If there is a fraudulent misrepresentation as to the character of a document, the contract is ________________

  1. void,
  2. voidable,
  3. valid
  4. illegal
Answer

(A) void,

QN16. The case of nordenfelt v. maxim nordenfelt gun co. (1904)deals with

  1. agreement in restraint of legal proceedings,
  2. minor’s agreements
  3. agreement in restraint of trade
  4. agreement in restraint of marriage.
Answer

(C) agreement in restraint of trade

QN17. When promisee refuses to accept performance from the promisor who offers to perform, it is ________________

  1. attempted performance,
  2. vicarious performance,
  3. tender
  4. frustration of contract.
Answer

(A) attempted performance,

QN18. Assignment by operation of law takes place ________________

  1. by the mutual consent of parties
  2. by the will of either party
  3. when the subject matter of a contract ceases to exist.
  4. by the death of a party to a contract.
Answer

(D) by the death of a party to a contract.

QN19. Where a contract could not be performed because of the default by a third person on whose work the promisor relied, it ________________

  1. is not discharged
  2. is discharged
  3. becomes void
  4. becomes voidable.
Answer

(A) is not discharged

QN20. Specific performance may be ordered by the court when ________________

  1. the contract is voidable
  2. damages are an adequate remedy
  3. damages are not an adequate remedy
  4. the contract is uncertain.
Answer

(C) damages are not an adequate remedy

QN21. A agreed to sell 100 shares to B at Rs. 75 per share delivery to be given on the 1st march,
B refused to accept delivery on 1st march as price had gone down to Rs. 60 per share. Subsequently A sold these shares at Rs.92 per share

  1. A cannot recover any damages from B
  2. A will have to restore to BRs. 1700 i.e. the profit he made
  3. A caan recover dameges to be determined by the President of the stock exchange.
Answer

(C) A caan recover dameges to be determined by the President of the stock exchange.

QN22. A finder of lost goods is a

  1. bailor
  2. Baile
  3. true owner
  4. thief
Answer

(B) Baile

QN23. A guarantee obtained by a creditor by keeping silence as to material circumstances is

  1. valid
  2. voidable
  3. unenforceable
  4. invalid
Answer

(D) invalid

QN24. If a price is not determined by the parties in a contract of sale, the buyer is bound to pay

  1. the price demanded by the seller,
  2. a reasonable price
  3. the price which the buyer thinks is reasonable
  4. the price to be determined by a third independent person.
Answer

(B) a reasonable price

QN25. In case of breach of a warranty, the buyer can

  1. repudiate the contract
  2. claim damages only
  3. return the goods
  4. refuse to pay the price
  5. refuse to take delivery of the goods.
Answer

(B) claim damages only

QN26. Law of contract is

  1. not the whole of agreements nor is it the whole law of obligations
  2. the whole law of agreements
  3. the whole law of obligations
  4. none of the above.
Answer

(A) not the whole of agreements nor is it the whole law of obligations

QN27. A specific offer can be accepted by

  1. any person
  2. any friend of offerer
  3. the person to whom it is made
  4. any friend of offeree.
Answer

(C) the person to whom it is made

QN28. 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. must be of more value than the value of promise made.
Answer

(B) need not be adequate to the promise made

QN29. A promise to subscribe to a charity. The promise is a

  1. valid contract,
  2. voidable contract,
  3. void agreement
  4. void contract.
Answer

(C) void agreement

QN30. A contract by an idot is

  1. voidable
  2. enforceable
  3. invalid
  4. void ab inito
Answer

(D) void ab inito

QN31. If there is error in cause, the contract I

  1. void
  2. voidable
  3. valid
  4. illegal
Answer

(B) voidable

QN32. A contingent contract is

  1. void
  2. voidable
  3. valid
  4. illegal
Answer

(C) valid

QN33. A lends Rs. 500 to B. He later tells B that he need not repay the amount, the contract is discharged by

  1. breach
  2. waiver
  3. novation
  4. performance
Answer

(B) waiver

QN34. The measure of damages in case of breach of a contract is the difference between the

  1. contract price and the market price at the date of breach
  2. contract price and the maximum market price during the term of the contract
  3. contract price and the price at which the plaintiff might have sold the goods,
  4. contract price and the price fixed by court.
Answer

(A) contract price and the market price at the date of breach

QN35. A minor has been supplied necessaries on credit

  1. he is not liable
  2. he is personally liable
  3. his estate is liable
  4. he is not personally liable
Answer

(C) his estate is liable

QN36. Any variance made without surety's consent in the terms of the contract between the principal debtor and thecreditor discharges the surety

  1. as to transactions prior to variance
  2. Coffee
  3. as to transactions subsequent to variance
  4. as to all transactions
  5. fromhis liability under the guarantee.
Answer

(B) as to transactions subsequent to variance

QN37. The doctrine of caveat emptor applies

  1. incase of implied conditions and warranties
  2. Coffee
  3. when the buyer does not intimate the purpose to the seller and depends upon his own skill and judgment
  4. when goods are sold by sample
  5. when goods are sold by description
Answer

(A) incase of implied conditions and warranties

QN38. A condition is a stipulation which is a

  1. essential to the main purpose of contract of sale
  2. not essential to the main purpose of contract of sale,
  3. collateral to the main purpose of contract of sale
  4. none of the above.
Answer

(A) essential to the main purpose of contract of sale

QN39. A contract

  1. may be void as originally entered into
  2. may become void subsequent to its formation
  3. cannot become void under any circumstances
  4. may become void at the will of party.
Answer

(B) may become void subsequent to its formation

QN40. A letter of acceptance sufficiently stamped and duly addressed is put into course of transmission. There is

  1. a contract voidable at the option of acceptor
  2. a contract voidable at the option of offerer,
  3. no contract at all,
  4. a valid
Answer

(D) Milk

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