Business Law Online MCQ Set 8

QN01. an agreement the meaning of which is not certain, is

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

(D) illegal

QN02. Owing to a strike in the factory of A, he is not able to supply the goods to B as per the terms of the agreement > The agreement in such a case

  1. is discharged
  2. is not discharged
  3. becomes void
  4. is voidable at the option of A.
Answer

(B) is not discharged

QN03. when an agreement is discovered to be void, any person who has received any advantage under such agreement

  1. is bound to restore it
  2. is not bound to restore it
  3. is not bound to return it.
  4. may retain it
  5. none of these
Answer

(A) is bound to restore it

QN04. A contract of indemnity is a

  1. a contingent contract
  2. wagering contract
  3. quasi contract
  4. void contract
Answer

(A) a contingent contract

QN05. The term property as used in the sale of goods act 1930 means

  1. possession
  2. ownership
  3. ownership and possession both
  4. the subject matter of contract of sale.
Answer

(B) ownership

QN06. In case of breach of a warranty, the buyer can

  1. claim damages only
  2. repudiate the contract
  3. cannot return the goods
  4. refuse to take delivery of the goods
Answer

(B) repudiate the contract

QN07. Sale of goods for cash is an example of

  1. mutual and independent promises
  2. mutual and dependent promises
  3. mutual and concurrent promises
  4. conditional and dependent promises,.
Answer

(C) mutual and concurrent promises

QN08. Where there are co-sureties, a release by the creditor of one of them

  1. discharges the other co-sureties
  2. does not discharge the other co-sureties
  3. makes all the co-suretiesimmediately liable
  4. makes the contract of guarantee void.
Answer

(B) does not discharge the other co-sureties

QN09. The foundation of modern law of dameges was laid down in,

  1. Tinn v. Hoffman
  2. Taylor v. caldwell
  3. Hadley v. Baxendale
  4. Addis v. Gramophone
Answer

(C) Hadley v. Baxendale

QN10. The case of Hadley v. Baxendale (1854) deals with

  1. anticipatory breach of contract.
  2. quantum of damages
  3. supervening impossibility
  4. quasi contract.
Answer

(B) quantum of damages

QN11. A person who finds good belonging to another and takes them into his custody, is subject to the same responsibility as a

  1. bailee
  2. true owner
  3. bailor
  4. pledge.
Answer

(A) bailee

QN12. Ordinary damages are damages which

  1. arise in the usual course of things from the breach
  2. which are in the contemplation of the parties at the time when the contract is made
  3. are agreed in advance
  4. are given by way of punishment for breach of contract.
Answer

(A) arise in the usual course of things from the breach

QN13. An agreement to do an act impossible in itself

  1. is void,
  2. is voidable
  3. is void ab initio
  4. becomes void when impossibility is discovered
Answer

(A) is void,

QN14. When two or more persons have made a joint promise, then unless a contrary intention appears from the contract,all such persons must fulfill the promise

  1. jointly
  2. severally
  3. jointly and severally
  4. jointly or severally
Answer

(A) jointly

QN15. A contract of insurance is a

  1. contract of guarantee
  2. contingent contract
  3. wagering agreement
  4. unilateral agreement.
Answer

(B) contingent contract

QN16. If there is a unilateral mistake as regards identity of a party caused by fraud of he other party, the contract is

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

(B) voidable,

QN17. Consideration

  1. must move from the promisee,
  2. may move from the promisee or any other person
  3. may move from the third party
  4. may move from the promisor.
Answer

(B) may move from the promisee or any other person

QN18. A contract is

  1. a legal obligation
  2. an agreement plus a legal obligation
  3. consensus ad idem,
  4. agreement plus a legal object.
Answer

(B) an agreement plus a legal obligation

QN19. Consideration must be something which the promisor

  1. is already bound to do,
  2. is not already bound to do.
  3. may voluntarily do
  4. must not do.
Answer

(B) is not already bound to do.

QN20. Where consent is caused by fraud or misrepresentation, the contract is

  1. voidable at the option of the aggrieved party
  2. void
  3. unenforceable
  4. not affected in any manner
Answer

(A) voidable at the option of the aggrieved party

QN21. Thecollateral transactions to an illegal agreement are

  1. Void,
  2. illegal,
  3. voidable,
  4. not affected at all
Answer

(B) illegal,

QN22. Which of the following are contingent contracts?

  1. contract of insurance
  2. contract of guarantee,
  3. contracts for the sale of goods on credit
  4. Wagering agreements
Answer

(A) contract of insurance

QN23. If a new contract is substituted in place of an existing contract, it is called

  1. alteration
  2. rescission
  3. novation
  4. waiver,
  5. remission
Answer

(C) novation

QN24. The right of subrogation in a contract of guarantee is available to the

  1. creditor
  2. principal debtor
  3. surety
  4. indemnified
Answer

(C) surety

QN25. Ifa contract contains an undertaking to perform an impossibility, the contract is

  1. void ab initio
  2. void
  3. voidable at the option of the plaintiff
  4. illegal
Answer

(A) void ab initio

QN26. A agree to pay B Rs. 2000 if a certain ship does not return at Mumbai port within a year .A =s promise can beenforced when the ship

  1. arrives Mumbai a damaged condition during the years
  2. is lost during the year
  3. is sunk during the years
  4. arrives Mumbai in a good condition during the year.
Answer

(B) is lost during the year

QN27. An employee, by the terms of his service agreement, is prevented from accepting a similar engagement after the termination of his service .The restraint

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

(B) void

QN28. A who owes Rs. 10000 to B dies leaving an estate of Rs. 6000. The legal representation of A are

  1. Liable for Rs. 10000
  2. liable for Rs. 6000
  3. not liable at all
  4. liable for Rs. 3000.
Answer

(B) liable for Rs. 6000

QN29. Regulationas to the opening and closing of business in a market are

  1. not unlawful even if they are in restraint of trade.
  2. unlawful because they are in restraint of trade.
  3. void
  4. not valid
Answer

(A) not unlawful even if they are in restraint of trade.

QN30. Where both the parties to an agreement are under a mistake as a matter of fact essential to the agreement, theagreement I

  1. void
  2. voidable
  3. illegal
  4. not affected at all.
Answer

(A) void

QN31. Consent given to a contract under some misrepresentation by the other party makes the contract

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

(D) voidable

QN32. A promise to compensate, wholly or in part, a person who has already voluntarily done something for the promisor is

  1. enforceable
  2. not enforceable because it is without consideration,
  3. void
  4. voidable.
Answer

(A) enforceable

QN33. Consideration in a contract

  1. may be past, present or future,
  2. may be present or future only.
  3. must be present only.
  4. must be future only.
Answer

(A) may be past, present or future,

QN34. An agreement with or by minor is

  1. void
  2. voidable at the option of the minor
  3. voidable at the option of the other party
  4. valid.
Answer

(A) void

QN35. An agreement not enforceable by law is said to be

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

(A) void,

QN36. Flaw in capacity to contract may arise from

  1. lack of free consent
  2. lack of consideration
  3. minority
  4. absence of legal formalities.
Answer

(C) minority

QN37. An acceptance is not according to the mode prescribed but the offerer decides to keep quiet. In such a case there is

  1. a contract,
  2. no contract,
  3. a voidable contract,
  4. an unenforceable contract.
Answer

(A) a contract,

QN38. A makes an offer to B on 10th by a letter which reaches B on 12th B posts letter of acceptance on 14th which reaches A on 16th. The communication of acceptance is complete as against A on

  1. 12th
  2. 14th
  3. 16th
Answer

(C) 16th

QN39. The Law of Contract in India is contained in

  1. Indian Contract Act 1862
  2. Indian Contract Act 1962
  3. Indian Contract Act 1872
  4. Indian Contract Act 1972
Answer

(C)Indian Contract Act 1872

QN40. In case of illegal agreements the collateral agreements are

  1. Valid Contract
  2. Void Contract
  3. Voidable Contract
  4. None of these
Answer

(B)Void Contract

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