Business Law MCQs

Which of following result in an offer-

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

An agreement made with an alien enemy is

unlawful on the ground of public policy
unlawful because it becomes difficult to be performed
valid
voidable.

A contract to pay B Rs. 10,000 if B s house is burnt â€“ This is a

wagering agreement
void
voidable agreement
contingent contract

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

communication of offer
communication of acceptance
a minors agreements
fraud

Each party is a promisor and a Promise in case of â€“

past consideration
present consideration
every contract
reciprocal promises

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

discharge of contract by destruction of subject matter,
anticipatory breach of contract
discharge of contract by death of a party
breach of contract.

A promise made without the intention of performing it amounts to â€“

innocent misrepresentation
fraud
negligent Misrepresentation
wrongful misrepresentation

A minor , by misrepresenting his age , borrows some money â€“

he can be sued for the fraud,
he cannot be sued for the fraud
he is liable to return the money
None of the above.

If there is a fraudulent misrepresentation as to the contents of a document , the contract is â€“

void
voidable
valid
illegal

There is a counter-offer when-

the offeree gives conditions for acceptance or introduces a fresh term in acceptance
the offeror makes a fresh offer
the offeree makes some query.
the offeree accepts it.

An agreement made without consideration is

valid
illegal
voidable
void

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

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

A contract creates

rights in personam,
rights in rem,
only rights and no obligations,
only obligations and no rights.

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

is not fraud unless the other party is actually deceived
is fraud whether the other party has been deceived or not
amounts to misrepresentation
none of the above.

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

void
voidable
valid
illegal

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

agreement in restraint of legal proceedings,
minorâ€™s agreements
agreement in restraint of trade
agreement in restraint of marriage.

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

attempted performance,
vicarious performance,
tender
frustration of contract.

Assignment by operation of law takes place ________________

by the mutual consent of parties
by the will of either party
when the subject matter of a contract ceases to exist.
by the death of a party to a contract.

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

is not discharged
is discharged
becomes void
becomes voidable.

Specific performance may be ordered by the court when ________________

the contract is voidable
damages are an adequate remedy
damages are not an adequate remedy
the contract is uncertain.

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 gon...

A cannot recover any damages from B
A will have to restore to BRs. 1700 i.e. the profit he made
A can recover damages to be determined by the President of the stock exchange.

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

valid
voidable
unenforceable
invalid

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

the price demanded by the seller,
a reasonable price
the price which the buyer thinks is reasonable
the price to be determined by a third independent person.

In case of breach of a warranty , the buyer can

repudiate the contract
claim damages only
return the goods
refuse to pay the price

Law of contract is

not the whole of agreements nor is it the whole law of obligations
the whole law of agreements
the whole law of obligations
none of the above.

A specific offer can be accepted by

any person
any friend of offerer
the person to whom it is made
any friend of offeree.

Consideration

must be adequate to the promise made,
need not be adequate to the promise made
must be of reasonable value
must be of more value than the value of promise made.

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

valid contract,
voidable contract,
void agreement
void contract.

A contract by an idot is

voidable
enforceable
invalid
void ab inito

If there is error in cause, the contract I

void
voidable
valid
illegal

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

breach
waiver
novation
performance

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

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

A minor has been supplied necessaries on credit

he is not liable
he is personally liable
his estate is liable
he is not personally liable

Any variance made without suretyâ€™s consent in the terms of the contract between the principal debtor and the creditor discharges the surety

as to transactions prior to variance
Coffee
as to transactions subsequent to variance
as to all transactions

The doctrine of caveat emptor applies

incase of implied conditions and warranties
Coffee
when the buyer does not intimate the purpose to the seller and depends upon his own skill and judgment
when goods are sold by sample

A condition is a stipulation which is a

essential to the main purpose of contract of sale
not essential to the main purpose of contract of sale,
collateral to the main purpose of contract of sale
none of the above.

A contract

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

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

a contract voidable at the option of acceptor
a contract voidable at the option of offerer,
no contract at all,
a valid

Compromise of dispute claims

is a good consideration for a contract
is not a good consideration for a contract
results in a void agreement
is not permitted by law.

Contracts made before war with an alien enemy which are against public policy are

suspended and are revived after the war is over.
dissolved
not affected at all
void ab initio

When a person positively asserts that a fact is true when his information does not warrant it to be so, though he believes it to be true, there is

misrepresentation
fraud
undue influence
coercion

The Case of Cundy v. Lindsay (1878) deals with

Coercion
undue influence
mistake as to the nature of transaction
mistake as regards identity

Promises forming consideration for each other are known as,

independent promises
dependent promises
reciprocal promises.
mutual promises

A contract has become more difficult of performance due to some un-contemplated events or delays .The contract

is discharged
is not discharged
becomes void
becomes voidable.

The court may grant rescission where the contract is

voidable at the option of the plaintiff
void
unenforceable
illegal

Quantum meruit means

a non gratuitous promise
an implied promise
as mush as earned
as much as is paid.

In a sale ,if the goods are destroyed , the loss falls on

the buyer
the seller
partly on buyer and partly on seller
the seller if price has not been paid

The omission of the creditor to sue within the period of limitation

discharges the surety
does not discharge the surety
makes the contract of guarantee void
makes the contract of guarantee illegal.

The case of Satyabrata Ghose v. Mugneeram Bangur & co. (1954) deals with

agreement opposed to public policy
Supervening impossibility
contract of guarantee
agency

A person enters into an agreement whereby he is bound to do something which is against his public or professional duty. The agreement is

void on the ground of public policy
valid
voidable
illegal

A minor enters into a contract for the purchase of certain necessaries , in such case

he is not personally liable to pay
he is liable to pay
his estate is liable to pay
his guardian is liable to pay.

Flaw in a capacity to contract may arise from

want of consideration
unsoundness of mind
illegality of object
uncertainty of object.

I there is error in consensus , the agreement is

void
voidable
avoid
illegal

An agreement to do an impossible act is,

void
voidable
illegal
enforceable under certain circumstances.

When a party to a contract transfers his contractual rights to another, it is known as,

rescission of contract
waiver of contract
discharge of contract,
assignment of contract.

A creditor agrees with his debtor and a third party to accept that third party as his debtor . The contract is discharged by,

performance
alteration
waiver
remission

Anticipatory breach of a contract takes place

during the performance of the contract
at the time when the performance is due.
before the performance is due
at the time when the contract is entered into.

Exemplary damages are

allowed in case of dishounor of a cheque by a banker having sufficient funds
the difference between the contract price and the market price
allowed where in case of breach of a contract , the plaintiff has not suffered any loss.
none of these.

The unlawful detention of any property of a person to obtain his consent to a contract amounts to

misrepresentation
fraud
undue influence
coercion

A person is usually of sound mind , but occasionally of sound mind

he may enter in to a contract when he is of sound mind,
he may not make a contract even when he is of sound mind
he cannot enter into a contract at all.
None of the above.

An offer is made to Mani in crowd It

can be accepted by him alone,
may be accepted by any person who hears it.
may be accepted by his brother
may be accepted by his friends.

A person who is not party t a contract

cannot sue,
can sue,
can sue only in well recognized cases
none of these.

The contractual capacity of a company is regulated by

its memorandum of association and the provisions of the companies act, 1956
the terms of contract entered into with a third party
its articles of association
its prospectus.

Merely because a contract was caused by one of the parties to it being under a mistake as to a matter of fact , it isnot

voidable
void
affected at all
none of the above.

A wagering agreement is.

forbidden by law,
immoral,
opposed to public policy
none of the above.

Where the debtor does not expressly intimate or where the circumstances attending on a payment do not indicateany intention , the creditor

may apply it to any lawful debt due
May apply it even to a time barred debt.

A undertakes to paint a picture of B. He dies before he paints the picture. The contract

is discharged by death
becomes voidable
becomes voidable at the option of the legal representatives of A.
will have to be performed by the legal representatives of A.

A quasi contract

is a contract
as an agreement
creates only legal obligation
is none of these

S and P go into a shop, S says to the shopkeeper, C let P have the goods and if he does not pay you, I will â€• This is a

contract of guarantee
contract of indemnity
wagering agreement
quasi contract

In a sale, the property in goods

is transferred to the buyer
is yet to be transferred to the buyer
may be transferred at a future time
is transferred when goods are delivered to the buyer

If a sale is by sample as well as by description , the implied condition is that the goods shall correspond with

sample
description
both sample and description
either sample or description.

In a sale , there is an implied condition on the part of the seller that he

has a right to sell the goods
is in possession of the goods
will have the right to sell
will acquire the goods

In case of a wrongful dishonour of a cheque by a banker having funds to the credit of the customer ,the court may award

ordinary damages,
nominal damages
exemplary damages
contemptuous damages.

An agreement is a voidable contract when it is

enforceable if certain conditions are fulfilled.
enforceable bylaw at the option of the aggrieved party.
enforceable by both parties d)not enforceable at all.
An agreement not enforceable by law is said to be

Acceptance may be revoked by the acceptor

at any time
before the letter of acceptance reaches the offerer
after the letter of acceptance reaches the offeree
before the death of the acceptor.

Consideration must move at the desire of

the promisor,
the promisee,
promisor or any other third party,
both the promisor and the promisee.

On attaining the age of majority a minorâ€™s agreement

can be ratified by him
cannot be ratified by him
becomes void
becomes valid.

When consent to an agreement is obtained by undue influence, the agreement is a

contract voidable at the option of the party whose consent was so obtained
void contract.
valid contract
void agreement.

an agreement the meaning of which is not certain, is

void
voidable
valid
illegal

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

is discharged
is not discharged
becomes void
is voidable at the option of A.

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

is bound to restore it
is not bound to restore it
is not bound to return it.
may retain it

A contract of indemnity is a

a contingent contract
wagering contract
quasi contract
void contract

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

possession
ownership
ownership and possession both
the subject matter of contract of sale.

Sale of goods for cash is an example of

mutual and independent promises
mutual and dependent promises
mutual and concurrent promises
conditional and dependent promises,.

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

discharges the other co-sureties
does not discharge the other co-sureties
makes all the co-sureties immediately liable
makes the contract of guarantee void.

The foundation of modern law of damages was laid down in,

Tinn v. Hoffman
Taylor v. caldwell
Hadley v. Baxendale
Addis v. Gramophone

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

anticipatory breach of contract.
quantum of damages
supervening impossibility
quasi contract.

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

bailee
true owner
bailor
pledge.

Ordinary damages are damages which

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

An agreement to do an act impossible in itself

is void,
is voidable
is void ab initio
becomes void when impossibility is discovered

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 prom...

jointly
severally
jointly and severally
jointly or severally

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Business Law MCQs