QN121: When a condition is breached in a contract of sale, the non-breaching party has the right to: Answer: a) Terminate the contract and claim damages.
a) Terminate the contract and claim damages.
b) Seek specific performance of the contract.
c) Request an extension of the contract period.
d) Waive the breach and continue with the contract.
Answer
QN122: A warranty in a contract of sale is: Answer: b) An assurance regarding the quality or performance of goods.
a) A promise to repair or replace defective goods.
b) An assurance regarding the quality or performance of goods.
c) A term that is not essential to the contract.
d) A term that can be waived by the seller but not by the buyer.
Answer
QN123: Which of the following is true regarding the remedies for breach of warranty? Answer: b) The buyer can choose between terminating the contract or claiming damages.
a) The buyer can only claim damages for breach of warranty.
b) The buyer can choose between terminating the contract or claiming damages.
c) The seller has the right to cure the breach before the buyer can claim any remedy.
d) The buyer must prove fraudulent intent on the part of the seller for breach of warranty.
Answer
QN124: Express warranties are: Answer: b) Warranties specifically stated by the seller or manufacturer.
a) Warranties that are implied by law.
b) Warranties specifically stated by the seller or manufacturer.
c) Warranties that can be disclaimed or excluded by the seller.
d) Warranties that are applicable only to new goods.
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QN125: The doctrine of caveat emptor means: Answer: a) Buyer beware
a) Buyer beware
b) Seller beware
c) Mutual responsibility
d) Equal distribution of risk
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QN126: Under the doctrine of caveat emptor, the primary responsibility for inspecting the goods lies with the: Answer: c) Buyer
a) Seller
b) Manufacturer
c) Buyer
d) Government regulatory authority
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QN127: The doctrine of caveat emptor places the risk of any defects or deficiencies in the goods on the: Answer: c) Buyer
a) Seller
b) Manufacturer
c) Buyer
d) Insurance company
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QN128: Which of the following statements is true regarding the doctrine of caveat emptor? Answer: d) The buyer must exercise reasonable care and diligence while purchasing goods.
a) The seller is always responsible for defects in the goods.
b) The buyer is entitled to a refund for any dissatisfaction with the goods.
c) The seller must provide a warranty for the goods sold.
d) The buyer must exercise reasonable care and diligence while purchasing goods.
Answer
QN129: Exceptions to the doctrine of caveat emptor include cases involving: Answer: a) Intentional misrepresentation by the seller
a) Intentional misrepresentation by the seller
b) Patently obvious defects in the goods
c) Damages occurring during transportation
d) Normal wear and tear of the goods
Answer
QN130: In the context of the rights of an unpaid seller, the right of lien refers to the seller’s right to: Answer: a) Seize the buyer’s property as collateral until payment is made
a) Seize the buyer’s property as collateral until payment is made
b) Demand immediate payment in full for the goods sold
c) Refuse to deliver the goods until the buyer provides a bank guarantee
d) Inspect the buyer’s financial records before completing the sale
Answer
QN131: The right of stoppage in transit allows an unpaid seller to: Answer: b) Retrieve the goods from a carrier while in transit
a) Cancel the sale agreement and demand a full refund
b) Retrieve the goods from a carrier while in transit
c) Withhold delivery of the goods until the buyer pays in full
d) Seek legal action against the buyer for breach of contract
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QN132: The right of resale is exercised by the unpaid seller when: Answer: a) The buyer fails to pay within a specified period after delivery
a) The buyer fails to pay within a specified period after delivery
b) The goods are damaged during transportation
c) The seller wants to repossess the goods for personal use
d) The buyer requests a refund due to dissatisfaction with the goods
Answer
QN133: In a case of breach of contract, the unpaid seller has the right to claim: Answer: a) Compensatory damages to cover the loss suffered
a) Compensatory damages to cover the loss suffered
b) Liquidated damages specified in the contract
c) Punitive damages as a penalty for the buyer’s breach
d) Exemplary damages to set an example for future cases
Answer
QN134: What is the meaning of negotiability under the Negotiable Instruments Act, 1882? Answer: a) The ability of an instrument to be freely transferred to another party
a) The ability of an instrument to be freely transferred to another party
b) The requirement for an instrument to be in writing
c) The condition that an instrument must be payable to a specific person
d) The necessity for an instrument to have a fixed maturity date
Answer
QN135: Which of the following is NOT a characteristic of a negotiable instrument under the Negotiable Instruments Act, 1882? Answer: c) Requirement of stamp duty
a) Transferability
b) Certainty of amount payable
c) Requirement of stamp duty
d) Endorsement by the payee
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QN136: Which of the following instruments is considered negotiable under the Negotiable Instruments Act, 1882? Answer: a) Promissory note
a) Promissory note
b) Lease agreement
c) Mortgage deed
d) Power of attorney
Answer
QN137: Under the Negotiable Instruments Act, 1882, which of the following is an essential requirement for an instrument to be negotiable? Answer: b) The instrument must be payable on demand or at a specific time
a) The instrument must be in electronic format
b) The instrument must be payable on demand or at a specific time
c) The instrument must be witnessed by two individuals
d) The instrument must be made by a bank
Answer
QN138: What is the significance of negotiation in relation to negotiable instruments? Answer: a) It refers to the act of transferring the instrument from one party to another
a) It refers to the act of transferring the instrument from one party to another
b) It refers to the process of writing the terms and conditions on the instrument
c) It refers to the requirement of obtaining a legal signature on the instrument
d) It refers to the obligation of the instrument holder to make timely payments
Answer
QN139: Which of the following statements accurately describes the nature of negotiable instruments? Answer: A) Negotiable instruments are written documents that represent a right to receive a specific amount of money.
A) Negotiable instruments are written documents that represent a right to receive a specific amount of money.
B) Negotiable instruments can only be used for personal transactions, not for business purposes.
C) Negotiable instruments are limited to paper documents and cannot be in electronic form.
D) Negotiable instruments are valid only if signed by the payer and the payee.
Answer
QN140: Which of the following requisites is necessary for an instrument to be classified as negotiable? Answer: A) The instrument must be payable to a specific person or to their order or bearer.
A) The instrument must be payable to a specific person or to their order or bearer.
B) The instrument must be a digital or electronic document.
C) The instrument must be signed by at least three parties.
D) The instrument must have a fixed maturity date.
Answer
QN141: Which of the following requisites is NOT necessary for an instrument to be considered negotiable? Answer: D) The instrument must be endorsed by the payee.
A) The instrument must be in writing.
B) The instrument must be dated.
C) The instrument must have a fixed amount of money payable.
D) The instrument must be endorsed by the payee.
Answer
QN142: Which of the following requisites is essential for negotiable instruments? Answer: A) The instrument must be payable on demand or at a specific time.
A) The instrument must be payable on demand or at a specific time.
B) The instrument must be issued by a financial institution.
C) The instrument must be physically delivered to the payee.
D) The instrument must be in the form of a promissory note.
Answer
QN143: Which of the following is NOT a requisite for negotiable instruments? Answer: D) The instrument must be signed by the payee.
A) The instrument must be freely transferable from one party to another.
B) The instrument must be payable in a foreign currency.
C) The instrument must be in writing or in electronic form.
D) The instrument must be signed by the payee.
Answer
QN144: Which of the following is NOT a type of negotiable instrument? Answer: D) Voucher
A) Promissory note
B) Bill of exchange
C) Certificate of deposit
D) Voucher
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QN145: Which type of negotiable instrument is primarily used for short-term borrowing? Answer: A) Promissory note
A) Promissory note
B) Bill of exchange
C) Cheque
D) Certificate of deposit
Answer
QN146: Which type of negotiable instrument is commonly used in international trade transactions? Answer: B) Bill of exchange
A) Promissory note
B) Bill of exchange
C) Cheque
D) Money order
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QN147: Which type of negotiable instrument is typically issued by a bank and represents a time deposit? Answer: D) Certificate of deposit
A) Promissory note
B) Bill of exchange
C) Cheque
D) Certificate of deposit
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QN148: Which type of negotiable instrument is commonly used for making payments from a bank account? Answer: C) Cheque
A) Promissory note
B) Bill of exchange
C) Cheque
D) Money order
Answer
QN149: In the context of negotiable instruments, which party is primarily liable for the payment of the instrument? Answer: A) Drawer
A) Drawer
B) Payee
C) Drawee
D) Endorser
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QN150: Which of the following instruments is considered an unconditional promise to pay a specific sum of money to a specified person or their order? Answer: C) Promissory note
A) Cheque
B) Bill of exchange
C) Promissory note
D) Draft
Answer
QN151: Under which circumstance can a holder in due course of a negotiable instrument acquire better rights than the previous parties? Answer: B) When the instrument is stolen or forged
A) When the instrument is not properly endorsed
B) When the instrument is stolen or forged
C) When the instrument is crossed
D) When the instrument is dishonored
Answer
QN152: What is the purpose of crossing a cheque? Answer: A) To restrict the payment of the cheque to a particular bank
A) To restrict the payment of the cheque to a particular bank
B) To make the cheque invalid and non-negotiable
C) To allow the cheque to be transferred without endorsement
D) To enable the drawer to cancel the cheque at any time
Answer
QN153: Which action by the drawee of a cheque constitutes dishonour of the cheque? Answer: B) Refusing to pay due to insufficient funds
A) Making a partial payment of the amount
B) Refusing to pay due to insufficient funds
C) Post-dating the cheque
D) Handing over the cheque to the payee
Answer
QN154: According to the Indian Partnership Act 1932, what is the definition of a partnership? Answer: a) An association of two or more persons who have agreed to share profits and losses of a business
a) An association of two or more persons who have agreed to share profits and losses of a business
b) A sole proprietorship with multiple owners
c) A corporation with limited liability
d) An agreement between two individuals to form a company
Answer
QN155: Which of the following is not a necessary element of a partnership under the Indian Partnership Act 1932? Answer: d) Appointment of a company secretary
a) Agreement between partners
b) Sharing of profits and losses
c) Joint liability for debts
d) Appointment of a company secretary
Answer
QN156: As per the Indian Partnership Act 1932, what is the maximum number of partners allowed in a banking partnership? Answer: a) 10 partners
a) 10 partners
b) 20 partners
c) 50 partners
d) Unlimited partners
Answer
QN157: In a partnership, what does “implied authority” refer to under the Indian Partnership Act 1932? Answer: a) The authority granted to a partner by the other partners
a) The authority granted to a partner by the other partners
b) The authority to make decisions without consulting other partners
c) The authority to sign legal documents on behalf of the partnership
d) The authority to change the terms of the partnership agreement
Answer
QN158: According to the Indian Partnership Act 1932, how are the profits and losses of a partnership distributed among partners? Answer: c) In proportion to their share in the partnership
a) Equally among all partners
b) In proportion to their capital contributions
c) In proportion to their share in the partnership
d) Based on the decision of the managing partner
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QN159: Which of the following is not a characteristic of a partnership? Answer: a) Separate legal entity
a) Separate legal entity
b) Mutual agency
c) Shared profits and losses
d) Voluntary agreement
Answer
QN160: A partnership agreement can be oral or written. Which of the following statements is true? Answer: c) Both oral and written agreements are legally valid
a) Oral agreements are not legally enforceable
b) Written agreements are not required by law
c) Both oral and written agreements are legally valid
d) Only written agreements are legally valid
Answer
