Business Law Multiple Choice Question MCQ
Categories: Education
1. Compromise of dispute claims (A) is a good consideration for a contract (B) is not a good consideration for a contract (C) results in a void agreement (D) is not permitted by law. Correct answer: (A) 2. Contracts made before war with an alien enemy which are against public policy are (A) suspended and are revived after the war is over. (B) dissolved (C) not affected at all (D) void ab initio Correct answer: (B) 3. 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 (A) misrepresentation (B) fraud (C) undue influence (D) coercion. Correct answer: (A) 4. The Case of Cundy v. Lindsay (1878)deals with (A) Coercion (B) undue influence (C) mistake as to the nature of transaction (D) mistake as regards identity Correct answer: (D) 5. Promises forming consideration for each other are known as, (A) independent promises (B) dependent promises (C) reciprocal promises. (D) mutual promises Correct answer: (C) 6. A contract has become more difficult of performance due to some un-contemplated events or delays .The contract (A) is discharged (B) is not discharged (C) becomes void (D) becomes voidable. Correct answer: (B) 7. The court may grant rescission where the contract is (A) voidable at the option of the plaintiff (B) void (C) unenforceable (D) illegal Correct answer: (A) 8. Quantum meruit means (A) a non gratuitous promise (B) an implied promise (C) as mush as earned (D) as much as is paid. Correct answer: (C) 9. In a sale ,if the goods are destroyed , the loss falls on (A) the buyer (B) the seller (C) partly on buyer and partly on seller (D) the seller if price has not been paid Correct answer: (A) 10. The omission of the creditor to sue within the period of limitation (A) discharges the surety (B) does not discharge the surety (C) makes the contract of guarantee void (D) makes thecontract of guarantee illegal. Correct answer: (B) 11. The case of Satyabrata Ghose v. Mugneeram Bangur & co. (1954) deals with (A) agreement opposed to public policy (B) Supervening impossibility (C) contract of guarantee (D) agency Correct answer: (A) 12. A person enters into an agreement whereby he is bound to do something which is against his public orprofessional duty. The agreement is (A) void on the ground of public policy (B) valid (C) voidable (D) illegal Correct answer: (A) 13. A minor enters into a contract for the purchase of certain necessaries , in such case (A) he is not personally liable to pay (B) he is liable to pay (C) his estate is liable to pay (D) his guardian is liable to pay. Correct answer: (C) 14. Flaw in a capacity to contract may arise from (A) want of consideration (B) unsoundness of mind (C) illegality of object (D) uncertainty of object. Correct answer: (B) 15. I there is error in consensus , the agreement is (A) void (B) voidable (C) avoid (D) illegal Correct answer: (A) 16. An agreement to do an impossible act is, (A) void (B) voidable (C) illegal (D) enforceable under certain circumstances. Correct answer: (A) 17. When a party to a contract transfers his contractual rights to another, it is known as, (A) rescission of contract (B) waiver of contract (C) discharge of contract, (D) assignment of contract. Correct answer: (D) 18. A creditor agrees with his debtor and a third party to accept that third party as his debtor . The contract is discharged by, (A) performance (B) alteration (C) waiver (D) remission Correct answer: (C) 19. Anticipatory breach of a contract takes place (A) during the performance of the contract (B) at the time when the performance is due. (C) before the performance is due (D) at the time when the contract is entered into. Correct answer: (C) 20. Exemplary damages are (A) allowed in case of dishounor of a cheque by a banker having sufficient funds (B) the difference between the contract price and the market price (C) allowed where in case of breach of a contract , the plaintiff has not suffered any loss. (D) none of these. Correct answer: (A)