Business Law Multiple Choice Question MCQ
Categories: Education
1. The3unlawful detention of any property of a person to obtain his consent to a contract amounts to (A) misrepresentation (B) fraud (C) undue influence (D) coercion. Correct answer: (D) 2. A person is usually of sound mind , but occasionally of sound mind (A) he may enter in to a contract when he is of sound mind, (B) he may not make a contract even when he is of sound mind (C) he cannot enter into a contract at all. (D) None of the above. Correct answer: (A) 3. An offer is made to Mani in crowd It (A) can be accepted by him alone, (B) may be accepted by any person who hears it. (C) may be accepted by his brother (D) may be accepted by his friends. Correct answer: (A) 4. A person who is not party t a contract (A) cannot sue, (B) can sue, (C) can sue only in well recognized cases (D) none of these. Correct answer: (C) 5. The contractual capacity of a company is regulated by (A) its memorandum of association and the provisions of the companies act, 1956 (B) the terms of contract enteredinto with a third party (C) its articles of association (D) its prospectus. Correct answer: (A) 6. 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 (A) voidable (B) void (C) affected at all (D) none of the above. Correct answer: (A) 7. A wagering agreement is. (A) forbidden by law, (B) immoral, (C) opposed to public policy (D) none of the above. Correct answer: (A) 8. Where the debtor does not expressly intimate or where the circumstances attending on a payment do not indicateany intention , the creditor (A) may apply it to any lawful debt due (B) May apply it even to a time barred debt. Correct answer: (A) 9. A undertakes to paint a picture of B. He dies before he paints the picture. The contract (A) is discharged by death (B) becomes voidable (C) becomes voidable at the option of the legal representatives of A. (D) will have to be performed by the legal representatives of A. Correct answer: (A) 10. A quasi contract (A) is a contract (B) as an agreement (C) creates only legal obligation (D) is none of these Correct answer: (C) 11. 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 ― This is a (A) contract of guarantee (B) contract of indemnity (C) wagering agreement (D) quasi contract Correct answer: (A) 12. In a sale, the property in goods (A) is transferred to the buyer (B) is yet to be transferred to the buyer (C) may be transferred at a future time (D) is transferred when goods are delivered to the buyer Correct answer: (A) 13. If a sale is by sample as well as by description , the implied condition is that the goods shall correspond with (A) sample (B) description (C) both sample and description (D) either sample or description. Correct answer: (C) 14. In a sale , there is an implied condition on the part of the seller that he (A) has a right to sell the goods (B) is in possession of the goods (C) will have the right to sell (D) will acquire the goods Correct answer: (A) 15. In case of a wrongful dishonour of a cheque by a banker having funds to the credit of the customer ,the court may award (A) ordinary damages, (B) nominal damages (C) exemplary damages (D) contemptuous damages. Correct answer: (C) 16. An agreement is a voidable contract when it is (A) enforceable if certain conditions are fulfilled. (B) enforceable bylaw at the option of the aggrieved party. (C) enforceable by both parties d)not enforceable at all. (D) An agreement not enforceable by law is said to be Correct answer: (B) 17. Acceptance may be revoked by the acceptor (A) at any time (B) before the letter of acceptance reaches the offerer (C) after the letter of acceptance reaches the offeree (D) before the death of the acceptor. Correct answer: (B) 18. Consideration must move at the desire of (A) the promisor, (B) the promisee, (C) promisor or any other third party, (D) both the promisor and the promisee. Correct answer: (A) 19. On attaining the age of majority a minor‘s agreement (A) can be ratified by him (B) cannot be ratified by him (C) becomes void (D) becomes valid. Correct answer: (B) 20. When consent to an agreement is obtained by undue influence, the agreement is a (A) contract voidable at the option of the party whose consent was so obtained (B) void contract. (C) valid contract (D) void agreement. Correct answer: (A)