Business Law

Dr. G.R.DAMODARAN COLLEGE OF SCIENCE COIMBATOREGRD SCHOOL OF COMMERCE AND INTERNATIONAL BUSINESS

II B.COM E COM – FOURTH SEMESTERBUSINESS LAW –- 404 A

MULTIPLE CHOICE QUESTIONS

1. Law of contract is_____________.a. not the whole agreements nor is it the whole law of obligation.b. the whole law of agreement.c. the whole law of obligation.d. the part of law.Answer: A2. A contract creates_____________.a. rights in personam.b. rights in rem.c. only rights no obligations.d. only obligations and no rights.Answer: B3. An agreement is a void able contract when it is_____________.a. enforceable if certain conditions are fulfilled.b. enforceable by law at the options of the aggrieved party.c. enforceable by both the parties.d. not enforceable by all.Answer: B4. An agreement not enforceable by law is said to _____________.a. void.b. voidable.c. valid.d. unenforceable.Answer: A5. A contract _____________.a. may be void as originally entered into.b. may become void subsequent to its formation.c. cannot become void under any circumstances.d. may become void at the will of a party.Answer: B6. The transactions collateral to any illegal agreement is _____________.a. not effected in any manner.b. also tainted with illegality.c. voidable at the option of the plantiff.d. effected in any manner.Answer: B7. A contract is _____________.a. legal obligation.b. an agreement plus a legal obligation.

c. consensus ad idem.d. an agreement plus a legal object.Answer: B8. Flaw in capacity to contract may arise from _____________.a. lack of free consent.b. lack of considerationc. minority.d. absence of legal formalities.Answer: C9. Which of the following result /results is an offer?a. A declaration of intention.b. An invitation to offer.c. An advertisement offering reward to any one who finds the lost dog of the advertiser.d. An offer made in a joke.Answer: C10. A specific offer can be accepted by _____________.a. any person.b. any friend of offered.c. a person to whom it is made.d. any friend of offeree.Answer: C11. A letter of acceptance sufficiently stamped a duly addressed is put into course oftransmission. There is _____________.a. a contract voidable at the option of acceptor.b. a contact voidable at the option of offerer.c. no contract at all.d. a voidable contract.Answer: D12. 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 offerer.d. before the death of acceptor.Answer: B13. An advertisement to sell a thing by auction is _____________.a. an offer.b.an invitation to offer.c. no offer at all.d. a contract.Answer: B14. On the face of the ticket for a journey the words “for conditions see back” are printedin a small print. The passenger _____________.a. is bound by the conditions whether he takes care to read them or not.b. is not bound by the conditions.c. may not take note of the conditions.d. may take note of the conditions.

Answer: A15. An offer is made to Mani in a 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.Answer: A16. An acceptance is not according to the mode prescribed but the offer decides to keepquiet. In such a case there is_____________.a. a contract.b. no contract.c. a voidable contract.d. an unenforceable contract.Answer: A17. There is a counter- offer when _____________.a. the offeree gives conditions for acceptance or introduces a fresh term in acceptance.b. the offerer makes a fresh offer.c. the offeree makes some query.d. the oferee accepts it.Answer: A18. A makes an offer to B on 10th by a letter which reaches B on 1b.th. B posts letter ofacceptance on 14th which reaches A on 16th. The communication of acceptance iscomplete as against A on_____________.a. 12.th.

b. 14th.

c. 16th.

d. 15th.

Answer: C19. Consideration must move at the desire of _____________.a. the promisorb. the promiseec. promisor or any third partyd. both the promisor and the promiseAnswer: A20. Consideration _____________.a. must move from the promise.b. may move from the promisee or any other person.c. may from the third party.d. may move form the promisor.Answer: B21. Consideration _____________.a. must be adequate to the promise made.b. need not be adequate to the promise made.c. must be a reasonable value.d. must be of more value than the value of promise made.Answer: B

22. Consideration must be something which the promisor _____________.a. is already bound to do.b. is not already bound to do.c. may voluntarily do.d. must not do.Answer: B23. 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.Answer: A24. A promise to compensate, wholly or in part, a person who has already voluntarilydone something for a promisor is _____________.a. enforceable.b. not enforceable because it is without consideration.c. void.d. voidable.Answer: A25. A person who is not a party to contract _____________.a. cannot sue.b. can sue.c. can sue only in well- recognized cases.d. can sue under contract of guarantee .Answer: C26. Consideration in a contract _____________.a. may be past, present, or future.b. may be present or future only.c. must be present only.d. must be future only.Answer: A27. An agreement made with out consideration is _____________.a. valid.b. illegal.c. voidable.d. void.Answer: D28. A promise to subscribe to a charity. The promise is a _____________.a. voidable contract.b. void agreement.c. void contract.d. valid contract.Answer: C29. An agreement with or by a minor is _____________.a. void.b. voidable at the option of the minor.

c. voidable at the option of the other party.d. valid.Answer: A30. On attainting 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.Answer: B31. A minor, by misrepresenting his age, borrows some money_____________.a. he can be sued for fraud.b. he cannot be sued for fraud.c. he is liable to return the money.d. he is not liable to return the money.Answer: B32. A minors enters into a contract for the purchase of certain necessaries. In such acase_____________.a. he is not personally liable to pay.b. he is liable to pay.c. his estate is liable to pay.a. his guardian is liable to pay.Answer: C33. A person is usually of unsound mind, but occasionally of soundmind_____________.a. he may enter into a contract when he is of sound mind.b. . he may not make a contract when even when he is of sound mind.c. he cannot enter into a contract at all.d. he can enter all the time.Answer: A34. A contract by an idiot is_____________.a. voidable.b. enforceable.c. invalid.d. void ab initio.Answer: D35. 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.Answer: B36. The contractual capacity of a company is regulated by_____________.a. its memorandum of association and the provision of the companies act, 1956.b. the terms of contract entered into with a third party.c. its article of association.

d. its prospectus.Answer: A37. The case of Mohiri Bibi v. Dharmodas Ghose, (190c. 301 cal. 539 dealswith______________.a. communication of offer.b. communication of acceptance.c. a minor’s agreement.d. fraud.Answer: C38. Flaw of capacity to contract may arise from _____________.a. want of consideration.b. unsoundness of mind.c. illegality of object.d. uncertainty of object.Answer: B39. Where consent is caused by fraud or misrepresentation, the contract is_____________.a. voidable at the option of the aggrieved party.b. void.c. unenforceable.d. not affected in any manner.Answer: A40. Where both the parties to an agreement are under a mistake as a matter of factessential to the agreement, the agreement is _____________.a. void.b. voidable.c. illegal.d. not affected at all.Answer: A41. Merely because a contract was caused by one of the parties to it being under amistake as to a matter of fact, it is not _____________.a. voidable.b. void.c. affected at all.d. valid.Answer: A42. Consent given to a contract under some misrepresentation by the other party makesthe contract_____________.a. void.b. invalid.c. unenforceable.d. voidable.Answer: D43. When a person positively asserts that a fact is true when his information does notwarrant it to be so, though he believes it to be true, there is_____________.a. misrepresentation.

b. fraud.c. undue influence.d. coercion.Answer: A44. Fraud exists when it is shown that a false representation had beenmade_____________.a. knowingly.b. unknowingly.c. unintentionally.d. recklessly, not caring whether true or false.Answer: A45. A mere attempt at despite by a party to a contract_____________.a. is not fraud unless the other party is actually deceived.b. is fraud whether the other party has been deceived or not.c. amounts to miss representation.d. amount to fraud.Answer: A46. When consent of an agreement is obtained by undue influences the agreement is a_____________.a. contact voidable at the option of the party whose constant so obtained.b. void contract.c. valid contract.d. void agreement.Answer: A47. Which of the relationships raise presumption of undue influence? _____________.a. land lord and tenant.b. parents and child.c. doctor and patient.d. husband and wife.Answer: B48. If there is error in causal, the contract is _____________.a. void.b. voidable.c. valid.d. illegal.Answer: B49. If there is error in consensus, the agreement is _____________.a. void.b. voidable.c. avoid.d. illegal.Answer: A50. If there is a unilateral mistake as regards identify of a party caused by a fraud of theother party, the contract is _____________.a. void.b. voidable.

c. valid.d. illegal.Answer: B51. If there is a fraudulent misrepresentation as to the contents of a document, thecontract is_____________.a. void.b. voidable.c. valid.d. illegal.Answer: A52. If there is a fraudulent misrepresentation as to the charter of a document, the contractis_____________.a. void.b. voidable.c. valid.d. illegal.Answer: A53. The case of Cundy.V Lindsay (1878) 3AC 459 deals with.a. Coercion.b. Undue influence.c. Mistake as to the nature of transaction.d. Mistake as regards identity.Answer: D54. A promise made with out ht e indentation of performing its amounts to_____________.a. innocent misrepresentation.b. fraud.c. negligence misrepresentation.d. wrongful misrepresentation.Answer: B55. The lawful detention of ant property of person to obtain his consent to a contractamounts to __________.a. misrepresentation.b. fraud.c. undue influence.d. coercion.Answer: D56. The collateral transaction to an illegal agreement are_________.a. void.b. illegal.c. voidable.d. not affected at all.Answer: B57. An agreement made with an alien enemy is _________.a. unlawful on the ground of public policy.b. unlawful because it becomes difficult to be performed.

c. valid.d. voidable.Answer:58. A persons enters in to an agreement were by he is bound to do something which isagainst his pubic or professional duty. The agreement is _________.a. void on the ground of public policy.b. valid.c. voidabled. illegal.Answer: A59. Regulation as to the opening and closeting of business in a market are.a. Not unlawful even if they are in restraint of trade.b. Unlawful because they are restraint of trade.c. Void.d. Not valid.Answer: A60. An employee, by the terms of his service agreement, is prevented from accepting asimilar engagement after the termination of service. The restraint is __________.a. valid.b. void.c. illegal.d. unenforceable.Answer: B61. The case of Nordenfelt V. Maxim Nordenfelt Gun Co., (190d.b.9 B.L.R 107 dealswith.a. Agreements in restraint of legal proceedings.b. Minor’s agreement.c. Agreements in restraint of trade.d. Agreements in restraint of marriage.Answer: C62. Promises forming consideration for each other are known asa. Independent promises.b. . Dependent promises.c. . Reciprocal promises.d. Mutual promises.Answer: C63. Each party is a promisor and a promise in case ofa. Past consideration.b. Present consideration.c. Every contract.d. Reciprocal promises.Answer: D64. When the promisee refuses to accept performance from the promioser who offers toperform, it is __________.a. attempted performance.b. vicarious performance.

c. tender.d. frustration of contract.Answer: A65. Sale of goods for cash is an example of__________.a. mutual and independent promises.b. mutual and dependent promises.c. mutual and contract promises.d. conditional and dependent promisese.Answer: C66. 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 contractAnswer: D67. Where the deports does not expressly intimate or were the circumstances attending onthe payment do not indicate any intention, the creditor __________.a. may apply it top any lawful debt due.b. may apply it even to a time barred debt.c. it is not apply it even to a time barred debt.d. no loss.Answer: A68. When two or more persons have made a join promise, then unless a contrary intentionappears from the contract all such person must fulfill the promise__________.a. jointly.b. severally.c. jointly and severally.d. jointly or severally.Answer: A69. Assignment by operation of law takes place_______________.a. by the mutual consent of the parties.b. by the will of either parties.c. when the subject matter of a contract cases to exist.d. by the death of a party to a contract.Answer: D70. A who ooze 10,000 to B dies living and estate of Rs 6,000. The legal representativesof A are _______________.a. liable for rs 10,000.b. liable for rs 6,000.c. no liable at all.d. liable for Rs 3,000.Answer: B71. Owing to a strike in the factory of A, he is not able to supply the goods to B as per theterms of the agreement. The agreement in such a case _____________.a. discharged.

b. is not discharged.c. becomes void.d. is voidableAnswer: A72. If a contract contains an undertaking to perform impossibility, the contract is__________.a. void ab initio.b. void.c. voidable at the option of the plaintiff.d. illegal.Answer: A73. An agreement to do an act impossible in itself __________.a. is void.b. is voidable.c. is void ab initial.d. becomes void when impossibility is discovered.Answer: A74. If a new contract is substituted in place of an existing contract, it is called________.a. alteration.b. rescission.c. nova t ion.d. waiver.Answer: C75. The case of Taylor V. Coldwell, (188c. 3 B & S. 8b.6 deals with.a. Discharge of contract by destruction of subject matter.b. Anticipatory breach of contract.c. Discharge of contract by death of a party.d. Breach of contract.Answer: A76. A lends Rs 500 to B. he later tells B that he need not repay the amount, the contract isdischarged by __________.a. breach.b. waiver.c. notation.d. performance.Answer: B77. A contract has become more difficult of performance due to some uncontemplatedevents or delays. The contract______________.a. is discharged.b. is not discharged.c. becomes void.d. becomes voidable.Answer: B78. Were a contact could not be performed because of the default by a third party onwhose work the promiser relied, it ______________.a. it is not discharged.

b. is discharged.c. becomes void.d. becomes voidable.Answer: A79. A creditor agrees with his debtors and a third party to accept that the third as histhird patty as debtor the contract is discharged by ________________.a. performance.b. alteration.c. waiver.d. rescission.Answer: C80. The case of Satyabrata Ghose V. Mugneeram Bangur and co., (195d. SC 44 dealswith -________________a. agreement opposed to public policy.b. supervening impossibility.c. contract of guarantee.d. agencies.Answer: A81. A undertakes to paint a picture of B. he die before he paints the picture. The contract________.a. is discharged by death.b. becomes voidable at the options of b.c. becomes of voidalble at the options of legal representatives of a.d. will have to performed by legal representatives of A.Answer: A82. The court may grant rescission were the contract is __________.a. voidable at the option of the plaintiff.b. void.c. unenforceable.d. illegal.Answer: A83. The foundation of modern law damages was laid down in ___________________.a. tinn v. hoffman.b. taylor v. caldwell.c. hadley v. baxendale.d. addis v. gramophone co.Answer: C84. Specific performance may be ordered by the court when ______________.a. the contract is voidable.b. the damages are an adequate remedy.c. the damages are not an adequate remedy.d. the contract is uncertain.Answer: C85. The measure of damages in case of breach of a contract is the difference between the_______________.a. contract price and the market price at the date of breach.

b. contract price when the maximum market price during the terms of the contract.c. contract and the price at which the plane tiff might have sold the goods.d. contract price and the price fixed by the court.Answer: A86. The case of Hadely Bv. Baxendale (1854) 8 Ex .Ch 341 deals witha. Anticipatory breach of contractb. Quantum of damagesc. Supervening impossibilityd. Quasi-contractAnswer:B87. Anticipatory breach of a contract takes place _____________a. During the performance of the contractb. At the time when the performance is duec. Before the performance is dued. At the time when the contract is entered intoAnswer:C88. In case of wrongful dishonor of a cherub by a banker having sufficient fund to thecredit of the customer, the court nay awarda. Ordinary damageb. Nominal damagec. Exemplary damaged. Contemptuous damagesAnswer:C89.Ordinary damages are damages which _____________a. Arise in the usual course of things from the breachb. Which are in the contemplation of the parties at the time when the contract is made?c. Are agreed in advanced. Are given by way of punishment for breach of contractAnswer:A90. The contract of indemnity is a _____________a. Contingent contractb. Wagering contractc. Quasi-contractd. Void agreementAnswer:A91. S and P go into a shop. S says to the shopkeeper, C “let P have the goods, and if hedoes not pay you, I will. “This is a __________a. Contract of guaranteeb. Contract of indemnityc. Wagering contractd. Quasi-contractAnswer:A92. A bailer is a _________a.a right of a particular lien over the goods bailedb.a right of generationc.a right of both particular and general lien

d.no lien at all over the goods bailedAnswer:A93. The position of a finder of lost goods is that of a ______________

a. Bailerb. Baileec. Suretyd. Principal debtorsAnswer:A94.The gratuitous bailer is liable to the bailer for the defects in the goodsbailed_______________

a. Even if he is not aware of themb. Only if he is aware of themc. In all cases of lossd. In certain case of lossAnswer:B95. If the goods of the bailer get missed up with the like goods of the bailer by the act ofgod, the mixture belongs to the bailer and the bailer in proportion to their shares but thecost of separation will have to be borne by_____________

a. the baileeb. the bailerc. both of them in proportion to the value of their goodsd. Third partyAnswer:A96. A bailee fails to return the goods according to the bailer’s direction. He takesreasonable care of the goods but still the goods are lost. The loss will fallon____________________

a. the baileeb. the bailerc. on both of themd. neither of themAnswer:A97. “A” who purchases certain goods from B by a misrepresentation pledges them with“C”. the pledge is _____________________

a. validb. voidc. voidabled. invalidAnswer:B98. In a sale, the property in goods_____________________

a. Is transferred to the buyer.b. Is yet to be transferred to the buyers.c. May be transferred at a future time.

d. Is transferred when goods are delivered to the buyer.e. Is transferred when the buyer pays the price.Answer:A99. In a sale, if the goods are destroyed, the loss falls on________________a. The buyer.b. The seller.c. Partly on the buyer and partly on the seller.d. The seller if price has not been paid.Answer:A100. The term 'property' as used in the Sale of Goods Act, 1930 means_____________a. Possession.b. Ownership.c. Ownership and possession both.d. The subject matter of contract of sale.Answer:B101. If a price is not determined by the parties in a contract of sale, the buyer is bound topay________________a. The price demanded by the seller.b. A reasonable price.c. The price which the buyer thinks is reasonable.d. The price to be determined by a third independent person.Answer:B102. The doctrine of caveat emptor applies______________a. In case of implied conditions and warranties.b. When the buyer does not intimate the purpose to the seller and depends upon his own

skill and judgment.c. When goods are sold by sample.d. When goods are sold by description.Answer:A103. If a sale is by sample as well as by description, the implied condition is that thegoods shall correspond with_______________a. Sample.b. Description.c. Both sample and description.d. Either sample or description.Answer:C104. In a sale, there is an implied condition on the part of the seller thathe______________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.Answer:A105.A condition is a stipulation which is__________a. Essential to the main purpose of contract of sale.b. Not essential to the main purpose of contract of sale.

c. Collateral to the main purpose of contract of sale.d. Not mandatoryAnswer:A106. In case of breach of a warranty, the buyer can__________a. Repudiate the contract.b. Claim damages only.c. Return the goods.d. Refuse to pay the price.Answer:B107.In case of breach of a warranty, the buyer cans _______________a. Claim damages only.b. Repudiate the contract.c. Cannot return the goods.d. Refuse to take delivery of the goods.Answer:B108. The main objective of a contract of sale is _____________a. Transfer of possession of goods.b. Transfer of property in goods.c. Delivery of goods.d. Payment of price.Answer:B109. Risk follows ownership__________a. Only when goods have been delivered.b. Only when price has been paid.c. Whether delivery has been made or not.d. Even when price has not been paid.Answer:C110. In an agreement to sell, the seller gets for price if________a. The goods have been delivered to the buyer.b. The goods have not been delivered to the buyer.c. There is specific agreement.d. It is not a specific agreementAnswer:C111. In a contract of sale, unless goods are ascertained, there is______________a. A sale.b. An agreement to sell.c. A void agreement.d. An unenforceable agreement.Answer:B112.Where there is an unconditional contract for the sale of specific goods in adeliverable state, the property in the goods passes to the buyer when_______________a. The goods are delivered to the buyer.b. The price is paid by the buyer.c. The contract is made.d. The buyer accepts the good.Answer:C

113. If the contract is silent as to the party who is to appropriate the goods__________a. The buyer is to appropriate.b. Goods seller is to be appropriate.c. The party who under the contract is first to act is to appropriate.d. Any party may appropriate.Answer:C114. In a C.I.F., contract the property in goods passes from the seller to the buyer whenthe______________a. Goods are shipped.b. Goods are received by the buyer.c. Contract is entered into.d. Price is paid.Answer:A115. There is a constructive delivery of goods_____________a. When the seller hands over to the buyer the key of the warehouse where the goods are

lying.b. Where a third person in possession of the goods acknowledged to the buyer that he

holds them on his behalf.c. When the seller physically delivers the goods to the buyers.d. When the seller asks the buyer to take delivery of the goods.Answer:B116. Where there is no specific agreement as to place, the goods sold are to be deliveredat the place______________a. At which they are at the time of sale.b. Of the buyer.c. Desired by the buyer.d. To be determined by the seller.Answer:A117. Unless otherwise agreed, where goods are sent by the seller to the buyer by a routeinvolved sea transit, the seller________________a. Must inform the buyer in time to get the goods insured.b. May insure the goods.c. Must insure the goods.d. Did not inform the buyer.Answer:A118. Unless otherwise agreed, where goods are delivered to the buyer and he rejectsthem______________a. He is not bound to return them to the seller.b. It is sufficient if he intimates to the seller that he has rejected the goods.c. He is bound to deliver them to the seller.d. He may keep them with him.Answer:B119. A seller delivers goods in excess of the quantity ordered for. The buyermay_________a. Accept the whole.b. Rejects the whole.

c. Accept the goods ordered for and return the excess.d. Accept the part of goods.Answer:A120. Where the neglect or refusal of the buyer to take delivery of goods amounts to arepudiation of the contract, the seller may sue for the______________a. Price or damages.b. Price only.c. Damages only.d. Both for price and damages.Answer:A121. The lien of an unpaid seller depends on ___________________a. Possession.b. Title.c. Ownership.d. Whether the buyer has paid the price or not.Answer:A122. An unpaid seller can excise his right of lien_____________a. Where the goods have been sold on credit and the terms of credit has not expired.b. Where the buyers has not become insolvent.c. Where the buyer is insolvent .d. Where the seller is insolvent.Answer:C123. The right of lien excises by an unpaid seller is to _________a.Retain possession.b.Regain possession .c.Recover price and other charges.d.Recover damages.Answer:A124. An unpaid seller can excise the right of the stoppage in transit when the carrier holdsthe good_______________a. as sellers agent .b. as buyer agent .c. as agent of both of them .d. in his own name.Answer:D125. If the goods are rejected by the buyer and the carrier of the other baillee continuousto be in possession of them, the transit __________a. is deemed to be commence .b. is deemed to be an end.c. commences .d. is deemed to be not at an end.

Answer:B

126. An unpaid seller has not given notice of resale to the buyer. ON release there is aloss________________a. the unpaid seller can recover it from the buyer.

b. the unpaid seller cannot recover it from buyer.c. the buyer can recover it from the unpaid seller.d. the buyer must compensate the unpaid seller.Answer:B127. An unpaid seller has not given notice of resale to the buyer there is profit. the unpaidseller_____________a. is bound to hand it over to the buyer .b. is not bound to hand it over to the buyer.c. may deposes it of in any manner he likes.d. may set it of against a previous loss in similar circumstances.Answer:A128. If a seller makes use of pertained bidding at an auction to raise the price, the sale is_________________a. voidable at the option of the buyer.b. said .c. valid.d. illegal.Answer:A129. A firm ______________a. has a legal existence of its own .b. dose not has a legal existence, apart from its partners .c. has no legal existence.d. Separate entity.Answer:B130. If one exclusive test of partnership between a group of person is to be named, it is_________a. joint ownership of property .b. sharing of profit.c. contribution of capital.d. mutual agency.Answer:B131. In partnership, the liability of partner is __________a. joint .b. several.c. joint and several.d. joint or several.Answer:C132. The maximum any of partners in a firm carrying on banking businesses cannotexist__________a. 5.b. 10.c. 15.d. 20.Answer:D133. An unregistered firm wants to enforce against a third party a right arising from acontract. It _________

a. Can sue the third party .b. Cannot sue the third party.c. Can sue the party subject to certain condition.d. Can sue the party for any loss suffered by the aggrieved party.Answer:B134. The case of Cox V. Hickman, (1860) 8 H.L.C, 268 deals with_______________a. Test of partnership.b. Registration of a firm .c. Implant authority of a partner.d. Dissolution a firm.Answer:A135. The maximum no of partners allowed in a firm carrying on general businessis_______a. 10.b. 20.c. 50.d. 100.Answer:B136. There is no provision in the partnership deed regarding the division of partnership.This is________a. Partnership at will.b. Partnership for an indefinite period.c. Partnership by stopple.d. Partnership not recognized by law.Answer:A137. Registration of a firm under the Indian partnership act, 1932 is ________________a. Compulsory.b. Not optional.c. Not necessary.d. Inevitable.Answer:C138. The non- registration of firm does not effect the right the form______________a. To file a suit for the recovery of more than Rs 100.b. To file a suit for the recovery of less than Rs 100 .c. To file a suit against a partner for recovery of money due by him.d. To claim a set –off not exceeding Rs 100.Answer:B139. A nominal partner is _________________a. Labile for the debts of the firm .b. not Labile for the debts of the firm .c. labile for a nominal sum .d. one whose liability is primary.Answer:A140. As to important t matters concerning the nature of the business of firm, No changesmay be effected_________a. With out the consent of all the partners.

b. With out the consent of the majority of the partners at all.c. With the consent of all the partners.d. With the consent of majority of the partners.Answer:A141. In the absence of an agreement, the partners the are entitle to shareprofits__________a. Equally .b. In the ratio of capital.c. In any special agreement in deed .d. In any special ratio agreed by all partners.Answer:A142. If a minor choose to become a partner on attaining the age of majority he liable forthe debts of the firm_______________a. From the date of his attaining majority .b. From the date of his admission to the benefits of the partnership.c. From the date of his election to become a partner of the firm.d. As determined by other partners.Answer:B143. Public notice is nit given on the death of a partner but the firm continuous thebusiness. For the acts of the firm done after his death __________a. The estate of the deceased partner is liable.b. The estate of the deceased partner is not liable.c. His legal reprehensive are personally liable.d. Agent liable.Answer:B144. A firm in the course of its business receives money from a third party. One of thepartners misapplies it.a. There firm is libel is make the good the loss.b. The firm is not libel to the good the loss.c. The defaulting the partner along is liable.d. The defaulting the partner along is not liable.Answer:A145. The position of a minor is dealt with in the Indian partnership act, 1932 ina. Sec.25.b. Sec.29.c. Sec.30.9.d. Sec.35.Answer:C146. Where a partner is entitled to interest on capital subscribed by him, such interest willbe payable_________a. Only out of profit.b. Only out of capital .c. Out of profits or out of capital.d. Only out of assets realized .Answer:A147. Where a partner retires, and the remaining partners carrying on the business with the

firms property with out any final settlements of accounts, the out going partner if entitledto________a. Interest at 6% per annum on the amount due to him.b. such shares of the profits as may be attributable to the use of his share of the firms

property.c. either of the above two at the option of the out going partner.d. As per the partnership agreement.Answer:C148. The liability of a partner in firm is __________a. Limited.b. Unlimited.c. From personal assets .d. From other relative assets.Answer:B149. A change in the nature of business of affirm can be made if_______a. The majority of the partners agree.b. The senior partners agree.c. All the partners agree.d. The working partners agree.Answer:C150. In the absence ooze any agreement, inters on advances by a partner is _____a. Allowed 15% .b. Not allowed at all.c. Allowed at the market rate of interest .d. Allowed at 6%.Answer:D151. Dissolution of partner ship means ______________a. Complete break down of partnership between all the partners .b. Only a change in the relation of the partners .c. Stopping the business of the firm for some time .d. Stopping the business permanently .Answer:B152. where a partner have become of unsound mind, the court may _______a. Dissolve the firm on the petition of any partner.b. Not dissolve the firm.c. Order the other partners to continue the business.d. Dissolve the firm.Answer:A153. A, a partner in a firm, transfers the whole of his interest in the firm to a third a party.The court may_______a. Dissolve the firm at the instance of any other partner.b. Dissolve the firm at instance of A.c. Dissolve the firm on its own discretion .d. Not dissolve the firm at the instance of any other partner.Answer:A154. If the assets of a firm are insufficient to discharge the debts ant liabilities of the firm

the partner shall bear the deficiency_____________a. In the profit sharing ratio.b. In the capital ratio .c. Equally.d. As determines the court .Answer:A155. A contract createsa. Rights in personam.b. Rights in rem.c. Only rights and no obligations.d. Only obligations and no rights.Answer:A156. An agreement is a voidable contract when it isa. Enforceable if certain conditions are fulfilled .b. Enforceable by law at the option of the aggrieved party.c. Enforceable by both the parties.d. Not enforceable by the law.Answer:B157. An agreement isa. Offer.b. Offer + acceptance.c. Offer + acceptance + consideration.d. Contract.Answer:B158. Which of the following results in an offer?a. A declaration of intention.b. An invitation to offer.c. An advertisement offering reward to anyone who finds the lost dog of the advertiser.d. An offer made in a joke.Answer:C159. A specific offer can be accepted bya. Any person .b. Any friend of offerer.c. The person the whom it is made .d. Any friend of offeree.Answer:C160. A letter of acceptance sufficiently stamped and duly addressed is put into course oftransmission. there isa. A contract voidable at the option of acceptor .b. A contract voidable at the option of offerer.c. No contract at all.d. A valid contract.Answer:B161. On the face of ticket for a journey the words “for conditions seek back” are printedin small prints. The passengera. Is bound by the conditions whether he takes care to read them or not.

b. Is not bound by the conditions.c. May not take note of the conditions.d. Note the all point .Answer:A162. An acceptance is not according to the mode prescribed but the offerer decides tokeep quite .In such a case there isa. A contract .b. No contract .c. A voidable contract.d. Valid.Answer:A163. An acceptance is not according to the mode prescribed but the offerer decides tokeep quite. In such case there isa. A contract .b. No contract.c. A voidable contract.d. An unenforceable contract.Answer:A164. There is a counter-offer whena. The offerer gives conditional acceptance or introduces a fresh term in acceptance.b. The offer or makes a fresh offer.c. The offeree makes some query.d. The offeree accepts it.Answer:A165. Considering must move at the desire ofa. The promisor.b. The promise.c. promisor or any third party.d. Both the promisor and the promise.Answer:B166. Considerationa. Must move from the promise.b. May move from the promise or any other person.c. Must move from the third party.d. May move from the promisor.Answer:B167. Consideration must be something which the promisora. Is already bound to do.b. Is not already bound to do.c. May voluntarily do.d. Must not do.Answer:C168. A person who is not a party to a contracta. Cannot sue.b. Can sue.c. Can sue only in well recognized cases.

d. Can sue only when he connected to the contract.Answer:A169. Considering in a contracta. May be past, present or future.b. May be present or future.c. Must be present only.d. Must be future only.Answer:B170.s An agreement made without consideration is__a. Valid.b. Illegal.c. Voidable.d. Void.Answer:A

171. An agreement with or by a minor is_____________.a..Void.b.Voidable at the option of the minor.c.Voidable at the option of the other party.d.Valid.Answer: B172. On attaining the age of majority a minor’s agreement_____________.a.Void.b.Cannot be ratified.c.Becomes void.d.Becomes valid.Answer: B173. A minor, by misrepresentation his age, borrows some money. He__________.a.Can be sued for fraud.b.Cannot be sued for fraud.c.Is liable to return the money.d.Is liable to compensate the loss.Answer: C174. A minor enters into a contract for the purchase of certain necessaries. In such acase____________.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.Answer: A175. A person who is of the unsound mind but occasionally of sound mind___________.a.May enter into a contract when he is of sound mind.b.May not make a contract even when he is of sound mind.c.Cannot enter into a contract at all.d.He can not enter when he is unsound mind.Answer: B

176. Contracts made before war with an alien enemy which are against public policyare_____________.a.Suspended and are received after the war.b.Dissolved.c.Not affected at all.d.Void ab into.Answer: A177. An agreement with a minor is___________.a.Absolutely void.b.A voidable contract.c.A contract which is valid.d.Invalid.Answer: A178. Where consent is caused by fraud or misrepresentation, the contract is __________.a.Voidable at the option of the aggrieved party.b.Void.c.Unenforceable.dNot affected in any manner.Answer: A

179. Where both the parties to an agreement are under a mistake as to matter of factsessential to the agreement , the agreement is_____________.a.Void.b.Voidable.c.Illegal.d.Not affected at all.Answer: A

180. When a person positively asserts that a act is true when his information does notwarrant it to be so, through he believes it to be true, there is___________.a.Misrepresentation.b.Fraud.c.Undue influence.d.Coercion.Answer: A181. A mare attempt at deceit by one party_____________.a.Is not fraud unless the other party is actually deceived.b.Is fraud whether the other party has been deceived or not.c.Amounts to misrepresentation.dAmount to fraud.Answer: A

182. When consent to an agreement is obtained by undue influence, the agreement is acontract voidable at the option of the party whose consent so obtained_________.a.Void contract.b.Valid contract.

c.Voidable .d.Invalid.Answer:B183. Which of the following relationships raise presumption of undue insurance______.a.Landlord and tenant.b.Parents and child.c.Doctor and patient .d.Husband and wife.Answer:B184. If there is unilateral mistake as regards identity caused by fraud of the other partythe contract is___________.a.Void.b.Voidable.c.Valid .d.Illegal.Answer: A185. A promise made with out the intention performing it amounts to__________.a.Innocent misrepresentation.b.Fraud.c.Negligent misrepresentation.d.Wrongful misrepresentation.Answer:B186. The unlawful detention of any property of a person to obtain his consent to acontract amounts to___________.a.Misrepresentation.b.Fraud.c.Undue influence.d.Coercion.Answer:D187. The collateral transition to an illegal agreement are___________.a.Void .b.Illegal .c.Voidable.d.Not effected at all.Answer:B188. An agreement made with an alien enemy is _____________.a.Unlawful on the grounds of public policy.b.Unlawful because it becomes difficult to be performed.c.Valid .d.Voidable.Answer:A189. A person enters into an agreement where by he bound to do something which isagainst his public or professional duty the agreement is ___________.a.Void on the ground of public policy.b.Valid .c.Voidable .

d.Illegal.Answer:A190. An employee, by the terms of service agreement, is prevented from acceptingsimilar engagement after the termination of service. The restraint is__________.a.Valid .b.Void.c.Illegal .d.Unenforceable.Answer:B191. A contract of a insurance is______________.a.Contract of guarantee.b.Contingent contract.c.Wagering contract agreement.d.Unilateral agreement.Answer:B192. A contingent contract is _____________.a.Void .b.Voidable .c.Valid .d.Illegal.Answer:C193. A quasi- contract ________________.a. Is a contract.b. Is an agreement .c. Has only a legal obligation.d. Contingent contract.Answer:C194. When an agreement is discovered to be void, any person who have received anyadvantage under such agreement ______________.a. Is bound to restore it .b. Is not bound to return it.c. May retain it .d. No need to return.Answer:A195. A minor has been supplied necessaries on credit_____________.a. He is not liable .b. He is personally liable.c. His estate is liable .d. He is only personally liable.Answer:C196. A person who finds goods belonging to another and takes them into his custody, issubject to the same responsibility as a ________________.a. Bailee.b. True owner .c. Thief.d. Agent.

Answer:A197. A finder of lost goods is a________________.a. Bailer.b. Bailee.c. True owner.d. Thief.Answer:B198. Quantum merit means____________.a. A non-gratuitous promise.b. An implied promise.c. As much as is earned.d. As much is paid.Answer:C199. The court may grant rescission was the contract is _____________.a. Voidable at the option of plaintiff.b. Void .c. Unenforceable.d. Illegal.Answer:A200) If specific performance may be ordered by the court when________________.a. The contract is voidable.b. Damages are an adequate remedy.c. Damages are not an adequate remedy.d. The contract is void.Answer:C201.The measure of damages in case of breach of a contract is the difference between

the ___________.a. Contract price and the market price at the date of breach.b. Contract price and the maximum market price during the terms of contract.c. Contract price and the price at which the planetiff might have sold the goods.d. Contract price and the price fixed by the court.Answer:A202. A contract of indemnity is _____________.a. Contingent contract.b. Wagering contract.c. Quasi contract.d. Void agreement.Answer:A203. Any variance made with out surety consent in the terms of the contract between theprincipal debtor and the creditor discharges surety ______________.a. As to transaction prior to variance.b. As to transaction subsequent to variance.c. As to all transactions .d. From his liability under the guarantee.Answer:B204. The right of subrogation in a contract of guarantee is available to the __________.

a. Creditors.b. Principle debtors.c. Surety .d. Indemnifier.Answer:C205. The omission of the creditor to sue with in the period of limitation __________.a. Discharges the surety.b. Dose not discharge the surety.c. Makes the contract of guarantee void .d. Makes the contract illegal.Answer:B206. A bailee has___________.a. A right of particular lien over the good bailed.b. A right of general lien.c. A right of both particular and general lien .d. No lien at all over the goods bailed.Answer:A207.The position of finder of lost goods is that of a ___________.a. Bailor .b. Bailee.c. Surety.d. Principal debtor.Answer:B208.A gratuitous bailee is liable for defects in the goods bailed __________.a. Even if he is not aware of themb. Only if he is aware of themc. In all casesd. In particular caseAnswer:B209.A who purchases certain goods from B by representation pledges them with C. thepledge is_____________.a. Validb. Voidc. Voidabled. InvalidAnswer:A210. A gratuitous bailment is one which is _____________.a. Supported by considerationb. Not Supported by considerationc. Not enforced by lawd. VoidAnswer:B211. For a valid ratification the principal must have contractual capacity ________.a. Borty at the time of the contract and at the time of ratification .b. At the time of ratification.c. At the time of contract.

d. At any time.Answer:A212.An agent is personally liable _____________.a. When he acts for an undisclosed principal.b. When he acts for a named principal.c. When he acts for a principal not in existence.d. When he act as a sub-agent.Answer:A213. For a general balance of accounts between a factor and principal, the factor____.a. Does not have any lies on the goods of his principals.b. Have a particular lien on the goods of his principle.c. Has a general lien on the goods of his principal.d. Has not a general lien on the goods of his principal.Answer:C214. If there no agreement, an agent is____________.a. Not entitled to any remuneration .b. Entitled reasonable remuneration.c. Entitled to remuneration which he thinks is reasonable.d. Gets commission only.Answer:B215. For his commission of enumeration an agent has ____________.a. A general lien .b. A particular lien.c. No lien at all.d. Neither general lien nor particular lien.Answer:B216.An agent makes some secret profit out of the business of agencies. His losses _____.a. His remuneration.b. His profits .c. Not only his profits also his remuneration.d. Commission.Answer:C217.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 future time .d. Is transferred when the buyer pays the price.Answer:A218.In sale, If the goods are destroyed, the loss falls on _____________.a. The buyer .b. The seller .c. Partly on the buyer and partly on the seller.d. Third party.Answer:A219. Specific goods are those which are identified ___________.a. At the time of contract of sale.

b. By an expert.c. By the seller.d. By the buyer.Answer:A220. If a price is not determined by the parties in a contract of sale the buyer is bound topay___________.a. The price demanded by the seller.b. A reasonable price.c. The price which the buyer is reasonable.d. Cost.Answer:B221.The doctrine of caveat emptor applies ___________.a. In case of implied conditions and warranties.b. When the buyer doesn’t intimate the purpose of seller and depends upon his on skill

and judgment .c. When goods are sold by sample.d. When goods are sold by description.Answer:B222. If sale is by sample as well as by description, the implied condition is that the goodsshall correspond with ____________.a. Sample .b. Description .c. Both sample and description.d. Either sample or description.Answer:C223.In a sale , there is an implied condition on the part of seller that he __________.

a. Has right to sell the goods .b. Is in position of the goods .c. Will have the right sell.d. Will azure the goods.

Answer:A224. A condition is a stipulation which is____________.a. Essential to the main purpose of contract of sale.b. Not essential to the main purpose of the contract of sale.c. Collateral to the main purpose of contract of sale .d. Additional security.Answer:A225. In the case of breach of a warranty, the buyer can __________.a. Repudiate the contract.b. Claim damage only.c. Refuses to pay the price.d. Refuses to take the delivery of the goods.Answer:B226. The main objective of a contract of sale is ______________.a. Transfer of possessing of goods .b. Transfer of property in goods from seller to buyer.

c. Delivery of goods.d. Payment of price.Answer:B

227. Risk follows ownership ___________.a. Only when goods have been delivered .b. Only when price has been paid .c. Whether delivery has been made or not.d. Even when the price has not been paid.Answer:C228. in an agreement to sell, the seller can sue for price if_____________.a. The goods have been delivered to the buyer.b. The goods have not been delivered to the buyer.c. There is a specific agreement .d. There is a general agreement.Answer:C229. where there is an unconditional contract for the sale of specific goods in adeliverable state, the property in the goods passes to the buyer when________.a. The goods are delivered to the buyer .b. The price is paid by the buyer.c. The contract is made .d. The buyer accepts the goods.Answer:C230) Where there is a contract for the sale of unascertained goods , the property ingoods___________.a. Passes when the buyer pays the price.b. Does not pass until the goods are ascertained .c. When the contract is entered into.d. When the buyer accepts the goods .Answer:B231. There is a constrictive delivery of goods ___________.a. When the seller hands over to the buyer to the key of ware house where the goods are

lying.b. Where a third person in possessing of the goods acknowledgment to the buyer that he

holds them on his behalf.c. When the seller physically delivers the goods .d. Possession and ownership.Answer:B232. When there is n specific agreement as to place, the goods sold are to be delivered atthe place__________.a. At which they are at time of sale.b. Of the buyer.c. Decide by the seller.d. To be determined by the seller.Answer:A

233. Unless otherwise agreed , were goods are send by the seller to the buyer by a routeinvolving a sea transit of the seller____a. Must inform the buyer in time to get the goods insured.b. May insure the goods.c. Must insure the goods .d. No need to insure the goods.Answer:A234. A seller delivers goods in excess of the quantity ordered for. The buyermay_______.a. Accept the whole .b. Reject the whole.c. Accept the goods ordered for and returns .d. Accept the part of goods.Answer:A235. Where the neglected or refusal of the buyer to take delivery of goods amounts to arepudiation of the contract, the seller may sue for the __________.a. Price of damages .b. Price only .c. Damages only.d. Both for price and damages.Answer:A236. The lien of an unpaid seller depends on _____________.a. Possession.b. Title.c. Ownership.d. Possession and ownership.Answer:A237. An unpaid seller can excises his rights of lien ___________.a. Where the goods have been sold on credit and terms of credit has not expired.b. Where the buyer has not become insolvent.c. For the price of the goods.d. For the price of the goods and expenses.Answer:C238. The right of lien excised by an unpaid seller is to ___________.a. Retain possession.b. Regain possession .c. Recovery price and other charges.d. Damages.Answer:A239. An unpaid seller can excises the right of stoppage in transit when the carrier holdsthe goods ____________.a. As sellers agent .b. As buyer s agent .c. As agent of both of them .d. In his own name.Answer:D

240. If the goods are rejected by the buyer and the carrier or the bailee continuous to bein possession of them the transit ________.a. Is deemed to be an end .b. Is not deemed to be an end.c. Commences .d. Not yet commences.Answer:B241. An unpaid seller has not given notice of resale to the buyer. On the resale there is aloss____________.a. The unpaid seller can recover it from the buyer.b. The unpaid seller cannot recover it from the buyer .c. The buyer can recover it from unpaid seller.d. The buyer must compensate the unpaid seller.Answer:B242. The sale of goods act, 1930 deals with_________.a. Movable goods only .b. Immovable goods only .c. Both movable and immovable goods.d. All goods except ornaments.Answer:A243. The term , ’goods ‘ for the purpose of sale of goods act, does not include_________.a. Money .b. Actionable claims .c. Immovable property.d. All of these.Answer:B244. A contract for the sale of ‘furniture goods ‘is_____________.a. Sale .b. Agreement to sell.c. Void.d. Voidable.Answer:B245. In a hire – purchase agreement , the hirer ____________.a. Has an option to buy the goods.b. Must but the goods.c. Must return the goods.d. Is not given the possession of the goods .Answer:A246. Gives the buyer only a right to claim damages is known as___________.a. Condition.b. Guarantee.c. Warranty.d. Indemnity.Answer:C247. Which of the following is not an implied condition in a contract of sale _________.

a. Condition as to title.b. Condition as to description .c. Condition as to freedom from the encumbrance .d. Condition as to a sample.Answer:C248. The term goods exclude_________.a. Stock and shares .b. Growing crops .c. Actionable claim .d. Services.Answer:C249. A contract of sale may be __________.a. Absolute only .b. Condition only.c. Absolute and conditional .d. Indemnity.Answer:C250. The sale of goods act ,1930 dose not cover __________.a. Existing good .b. Immovable goods .c. Future goods .d. Services.Answer:B