SYBCOM Business Law MCQ with Answers: Mumbai University 2021


SYBCOM Business Law MCQ with Answers: Mumbai University 2021

SYBCOM Business Law MCQ with Answers

Promises which form the consideration or part of the consideration for each other are called a_________.

  1. Mutual promises
  2. Reciprocal promises
  3. Promises
  4. Written Promises

Performance of the conditions of a proposal, or the acceptance of any consideration for a reciprocal promise which may be offered with a proposal, is an_________of the proposal.

  1. Acceptance
  2. Mutual Acceptance
  3. Written Acceptance
  4. Reciprocal Promise

In case of destruction of goods after sales, the loss is borne by the______.

  1. seller
  2. buyer
  3. creditor
  4. third party

A contract of sale of goods is a contract whereby the seller_______.

  1. transfer the property
  2. transfer the position of goods
  3. transfer the money
  4. transfer the ownership

Where the price is not determined by the contract, the buyer shall pay_______.

  1. any price
  2. reasonable price
  3. price fixed by the third party
  4. market price

A________is a contract to do or not to do something, if some event, collateral to such contract, does or does not happen.

  1. Contingent contract
  2. Quasi Contract
  3. Express of Implied Contract
  4. Indemnity Contract

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

  1. Bailor
  2. Indemnifier
  3. Bailee
  4. Guarantor

The liability of Karta of a joint Hindu family firm_____.

  1. unlimited liability
  2. limited liability
  3. no liability
  4. limited and unlimited liability

Property of the form deemed to be_____.

  1. personal property
  2. Goodwill of a firm
  3. property of the creditor of the firm
  4. personal property and assets of the partner

Registration of partnership in the state of Maharashtra is______.

  1. compulsory
  2. voluntary
  3. optional
  4. not optional

The maximum number of partners carrying a banking business cannot exceed______.

  1. 10
  2. 20
  3. 15
  4. 8

No public notice is to be given in the case of______.

  1. minor attending majority
  2. retirement of a partner
  3. death of a partner
  4. admission of a partner

The position of minor in partnership is dealt with in the Indian partnership act 1932 in_____.

  1. section 25
  2. section 29
  3. section 30
  4. section 20

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Goodwill of a business is_______.

  1. not a partnership property
  2. a partnership property
  3. an individual partner property
  4. not an individual partner property

All agreements are________if they are made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object, and are not hereby expressly declared to be void.

  1. Standard forms of contracts
  2. Contracts
  3. Enforceable Contracts
  4. Quasi-contracts.

When, at the desire of the promisor, the promisee or any other person has done or abstained from doing, or does or abstains from doing, or promises to do or to abstain from doing, something, such act or abstinence or promise is called a consideration for the promise is defined under________.

  1. Section 2(e)2
  2. Section 2(f)
  3. Section 2 (a)
  4. Section 2(d)

A new partner can be admitted to the firm_____.

  1. with the consent of existing partners
  2. without the consent of existing partners
  3. with the consent of senior partners
  4. with the consent of junior partners

Unless otherwise agreed any interest on advances by a partner as per this partnership act is allowed at______.

  1. the market rate
  2. 6%
  3. 10%
  4. 8%

A nominal partner is liable____.

  1. for the nominal sum of money
  2. not liable for firms debts
  3. liable for the debts of the firm
  4. not for the nominal sum of money

Where a partner is entitled to interest______.

  1. only out of profit
  2. only out of capital
  3. only out of surplus
  4. only out of gains

A firm has______.

  1. no legal existence
  2. has a legal existence
  3. does not have existence
  4. no legal existence apart from its partner

Where a partner has become of_______.

  1. dissolve the firm
  2. not dissolve the firm
  3. order the firm to continue the business
  4. dissolve the form on the petition of any partner

limited liability partnership act come into force in the year________.

  1. 2002
  2. 2008
  3. 2004
  4. 2005

A partner is not liable for holding out_______.

  1. after he makes a representation that he is a part…..
  2. after his death
  3. any other circumstances
  4. any other situation

Every partner of a limited liability partnership is for the purpose of the business_______.

  1. any agent of LLP
  2. an agent of other partners
  3. an agent of the third party
  4. an agent of any party

The president of the national commission is a person who is or has been_______.

  1. District judge
  2. judge of the high court
  3. judge of the supreme court
  4. district and high court judge

The place of the national commission shall be in_________.

  1. Kolkata
  2. Delhi
  3. Mumbai
  4. Chennai

A consumer is a person who_________.

  1. buys the goods for consideration
  2. buys the goods for resale
  3. gets the goods free of cost
  4. buy the goods for bailment

Member of the district forum shall hold office for the term of_______.

  1. 5 years or up to the age of 65
  2. 6 year for up to the age of 55
  3. 7 years after the age of 36
  4. 2 years after the age of 35

The law of copyright in India is contained the copyright act 1957 by the amendment act______.

  1. 1995
  2. 1994
  3. 1985
  4. 1958

A general meeting of a company may be called by giving not less than clear_______.

  1. 15 days notice
  2. 21 days notice
  3. 3 days notice
  4. 31 days notice

Every promise and every set of promises_______is an agreement.

  1. In exchange for each another
  2. Forming the consideration for each other
  3. Mutually agreed
  4. Partially agreed

When consent to an agreement is caused by coercion, fraud or misrepresentation, the agreement is a contract________whose consent was so caused.

  1. valid
  2. void ab initio
  3. Legally enforceable
  4. voidable at the option of the party

“Private Company”  means a company having the minimum paid-up share capital of_______.

  1. ₹5 lakh
  2. ₹1 lakh
  3. ₹10 lakh

National consumer dispute redressal commission established by the_______.

  1. state government
  2. central government
  3. federation government
  4. monarchy government

An agreement enforceable at law_____.

  1. agreement
  2. offer
  3. promise
  4. contract

Every promise and every set of_____.

  1. agreement
  2. contract
  3. offer
  4. acceptance

An agreement with or by a minor_______.

  1. void
  2. voidable at the option of minor
  3. voidable at the option of the party
  4. valid

A contract by an idiot is________.

  1. voidable
  2. enforceable
  3. invalid
  4. void ab initio

The flaw incapacity to a contract may arise from________.

  1. want of consideration
  2. unsoundness of mind
  3. illegality of object
  4. uncertainty of object

The case of Mohri bibi versus Dharmodas Ghosh deals with______.

  1. communication of offer
  2. communication of acceptance
  3. a minor agreement
  4. fraud

On attaining the age of majority minor’s agreement________.

  1. can be ratified by him
  2. cannot be rectified by him
  3. becomes void
  4. becomes valid

A contract creates_________.

  1. rights in personam
  2. rights in rem
  3. only rights and no obligations
  4. only obligations and no rights

An agreement not enforceable by law is said to be________.

  1. void
  2. voidable
  3. valid
  4. illegal

Consideration must move at the desire of_________.

  1. the promisor
  2. the promisee
  3. promisor or any third party
  4. any third party

Consideration must be something which the promise_______.

  1. is already bound to do
  2. is not already bound to do
  3. may voluntarily do
  4. must not do

A contract of life insurance is_________.

  1. a contract of indemnity
  2. not a contract of indemnity
  3. A wagging agreement
  4. non-contingent agreement

Compromises of dispute_______.

  1. is a good consideration for the contract
  2. is not good consideration for a contract
  3. result in a void agreement
  4. is not permitted by law

Quantum Meruit means_______.

  1. unknown gratuitous promise
  2. an implied promise
  3. as much as is earned
  4. as much as is paid

A finder of lost goods is a_______.

  1. Bailor
  2. Bailee
  3. true owner
  4. thief

A minor has been supplied_______.

  1. he is not liable
  2. he is personally liable
  3. his estate is liable
  4. he is not personally liable

A quasi-contract_______.

  1. is a contract
  2. is an agreement
  3. creates only a legal obligation
  4. illegal agreement

The omission of the creditor to sue within the period of limitation_________.

  1. discharge is the surety
  2. does not discharge the surety
  3. make the contract for guarantee void
  4. make the contract of guarantee enforcible

The right of subrogation in a contract of guarantee is available to the________.

  1. creditor
  2. principal debtors
  3. surety

A contract of indemnity is________.

  1. contingent contract
  2. wagering contract
  3. Quasi-contract
  4. voidable contract

Good means_______.

  1. every kind of movable property
  2. any immovable property
  3. money
  4. service

If the parties to a contract agree to_____a new contract for it, or to rescind or alter it, the original contract, needs not be performed.

  1. Alter
  2. Amend
  3. Substitute
  4. Modify

When an agreement is discovered to be void, or when a contract becomes void, any person who has received any_____under such agreement or contract is bound to restore it or to make compensation for it to the person from whom he received it.

  1. Advantage
  2. Benefit
  3. Consideration
  4. Favour

Law of contract in India is contained in

  1. The Indian Contract Act 1872
  2. The Indian Contract Act 1972
  3. The Indian Contract Act 1930
  4. The Indian Contract Act 1932

The Indian Contract Act came into force on_______.

  1. 1 st September 1972
  2. 1 st July 1932
  3. 1 st September 1872
  4. 1 st July 1930

A jus in personam means a right against______.

  1. A specific person
  2. The public at large
  3. A specific thing
  4. None of these

An offer is_______.

  1. a suggestion by one person to another
  2. expression of willingness by a person to another to do something in order to obtain
    assent of the other person
  3. communication of willingness of a person to another person
  4. an intention of a person to do or to abstain from doing an act

A proposal when accepted becomes a________.

  1. Promise
  2. Contract
  3. Offer
  4. Acceptance

When a proposal is accepted, it becomes

  1. promise
  2. contract
  3. Legal promise
  4. tentative agreement

A person to whom the proposal is made is called

  1. promisee
  2. acceptor
  3. offeree
  4. promisor

10. A promise is

  1. a valid offer
  2. a contract
  3. an accepted offer
  4. a valid agreement

Consideration means________.

  1. doing or abstaining from doing something at the desire of the promisor
  2. doing or abstaining from doing something voluntarily
  3. doing or abstaining from doing something which he promisee is already under a duty to do
  4. all of the above

Consideration is______.

  1. something in return
  2. something of value
  3. something invaluable
  4. doing something voluntarily

An agreement made without consideration is______.

  1. valid
  2. voidable
  3. illegal
  4. void

Consideration______.

  1. need not be adequate
  2. need not be real
  3. need not have monetary value
  4. need not be certain

Which of the following persons do not fall under the category of persons of unsound mind?

  1. Alien
  2. Idiot
  3. Lunatics
  4. Drunken persons

Minor’s agreement is______

  1. void from the beginning
  2. voidable
  3. void when court declares it void
  4. valid

Consent means parties agreeing on______.

  1. the terms of the contract
  2. something about a contract
  3. the something in the same sense
  4. the method of performance of contract

Free consent means_________.

  1. parties agreeing on the same thing in the same sense
  2. parties agree to do something
  3. parties willfully agree on the same thing in the same sense
  4. either a) or b)

Undue influence involves

  1. use of physical pressure
  2. use of position to obtain an unfair advantage over the other
  3. none of these
  4. a threat.

Fraud means________.

  1. a false representation of fact made innocently with a view to deceive the other party
  2. a false representation of fact made willfully without any intention to receive the other party
  3. a false representation of fact made willfully with a view to deceive the other party
  4. none of these.

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A contract based on happening or non-happening of some event which is collateral to contract is called______.

  1. Wagering contract
  2. Contingent contract
  3. Uncertain contract
  4. Illegal contract

A contingent contract may be_____.

  1. Void from beginning
  2. Void subsequently when event becomes impossible to happen
  3. Voidable
  4. Unlawful

Performance of contract means_______.

  1. Fulfilling all the obligations by a party
  2. Fulfilling all the obligations by the promisor
  3. Performing all the promises and fulfilling all the obligations by all the parties
  4. Both a) and b)

When a party to a contract transfers his contractual rights to another, it is________.

  1. rescission of the contract
  2. discharge of contract
  3. waiver of contract
  4. assignment of contract

When a valid tender of goods is not accepted, it is called________.

  1. actual performance
  2. attempted performance
  3. no performance
  4. discharge of contract

A contract is discharged________.

  1. When all the parties perform their promises.
  2. When the performance of contract becomes impossible
  3. When one party makes a breach of contract
  4. In all the above cases

A contract is discharged by remission______.

  1. When a party waives all his rights under a contract
  2. When a party cancels an existing contract
  3. When a party accepts lesser performance in discharge of a whole obligation
  4. When a party makes novation of a contract.

Anticipatory breach of a contract takes place:

  1. During the performance of the contract
  2. At the time when the performance is due
  3. Before the performance is due
  4. At the time when the contract is entered into.

The damages can be claimed only when the special circumstances are communicated to the promisor are called________.

  1. Ordinary damages
  2. Exemplary damages
  3. Special damages
  4. Nominal damages

The person who gives the indemnity is known as________.

  1. Indemnity-holder
  2. Surety
  3. Indemnifier
  4. Principal debtor

A contract to perform the promise or discharge the liability of a third person is case of his default is called_______.

  1. Guarantee
  2. Indemnity
  3. Agency
  4. consideration

4. In a contract of guarantee, a person who promises to discharge another’s liability, is known as______.

  1. Principal debtor
  2. Creditor
  3. Surety
  4. Indemnifier

The right of subrogation in a contract of guarantee is available to the_____.

  1. Creditor
  2. Principal debtor
  3. Surety
  4. Indemnifier

6. The delivery of goods by one person to another for some specific purpose is known as______.

  1. Bailment
  2. Hypothecation
  3. Pledge
  4. Mortgage

A bailee has________.

  1. a right of particular lien over the goods bailed.
  2. a right of the general lien
  3. a right of both particular and general lien
  4. no lien at all over the goods bailed

A gratuitous bailment is one which is________.

  1. supported by consideration
  2. not supported by consideration
  3. not enforceable by law
  4. void

The delivery of goods by one person to another as security for the repayment of a debt, is known as_______.

  1. Bailment
  2. Hypothecation
  3. Pledge
  4. Mortgage

The position of the finder of lost goods is that of a____

  1. Bailor
  2. Bailee
  3. Surety
  4. Principal debtor

A person appointed to contract on behalf of another person is known as__________.

  1. Principal
  2. Agent
  3. Servant
  4. Contractor

A mercantile agent to whom the possession of the goods is given for the purpose of selling the same, is known as________.

  1. Broker
  2. Factor
  3. Commission agent
  4. Insurance agent

A person appointed by the original agent to act in the business of agency, but under the control of original agent, is known as_______.

  1. Agent
  2. Del credere agent
  3. Substituted agent
  4. Sub-agent

Where one person allows another person to assume an appearance of authority to act on his behalf, such a position is known as_______.

  1. Express authority
  2. Implied authority
  3. Ostensible authority
  4. None of these

Where the agent contracts for a principal who is not competent to contract, in such a case, the agent is_____.

  1. Personally liable
  2. Not personally liable
  3. Exceeding authority
  4. None of these

Sale of Goods Act was passed in the year ________.

  1. 1930
  2. 1935
  3. 1932
  4. 1872

A contract of sale of contingent goods is________.

  1. Sale
  2. Agreement to sell
  3. Unlawful
  4. All of the above

Agreement to sell is_________.

  1. Executed contract
  2. Executory contract
  3. Sale
  4. Implied contract

A contract of sale of goods includes

  1. Sale only
  2. Agreement to sell only
  3. Both a) and b)
  4. Barter

 

Which of the following is an offer?

  1. declaration of intention.
  2. An invitation to offer.
  3. An advertisement offering a reward to anyone who finds a lost dog of the advertiser.
  4. An offer made jokingly.

An offer when accepted becomes_______

  1. Proposal.
  2. Consideration.
  3. Consent.
  4. Promise. 

Who can accept an offer?

  1. The person to whom the proposal is made
  2. Class of persons
  3. The of free
  4. Any person

Promises which form the consideration or part of the consideration for each other are called_______.

  1. Reciprocal promises
  2. Conditional offer
  3. Cross offer
  4. Conditional promises

Consideration means___________.

  1. To consider
  2. To talk
  3. Something in return
  4. To give a proposal

Past consideration is also called as_________.

  1. Executory consideration
  2. Executed consideration
  3. Prospective consideration
  4. Illusory consideration

Stranger to a contract cannot sue while stranger to consideration can sue______.

  1. TRUE
  2. FALSE
  3. Stranger to a contract alone can sue
  4. Stranger to a contract cannot sue

On attending the age of majority a minor’s agreement______.

  1. Can be ratified by him
  2. Cannot be ratified by him
  3. Becomes void
  4. Becomes valid

A minor, by misrepresenting his age, borrow some money_____.

  1. He can be sued for fraud
  2. He cannot be sued for fraud
  3. He is liable to return the money
  4. His guardian is liable to pay

When the consent of the party is obtained by coercion, undue influence, fraud or misrepresentation, the contract is______.

  1. Valid
  2. Void
  3. Voidable
  4. Illegal

Which of the following acts does not amount to fraud?

  1. Knowingly making a false statement
  2. Promise made without intending to perform
  3. The active concealment of facts
  4. Innocent false statement

Does silence amount to fraud?

  1. Yes, always
  2. No
  3. Yes, only when equivalent to speech
  4. Yes, only when not equivalent to speech

A minor enters into a contract for the purchase of certain necessaries in such a case_______.

  1. He is not personally liable to pay
  2. He is liable to pay
  3. His estate is liable to pay
  4. His guardian is liable to pay

 

MCQs on Contract II

 

 

Section ———— of Indian Contract Act defines a contract of Indemnity.

Section 127

Section 124

Section 125

Section 130

 

A contract by which one party promises the other party to save from loss which may be caused either by the conduct of the promissor or by the conduct of any other person is called as ——–

Contract of Bailment

Contract of Guarantee

Contract of Pledge

Contract of Indemnity

 

In a contract of Indemnity there are ——–

3 parties and one contract

2 parties and 2 contracts

3 parties and 3 contracts

2 parties and one contract

 

 

A Contract of Indemnity is ——-

Void Agreement

Quasi Contract

Contingent Contract

Wagering Contract

 

 

A ————– is a contract to perform the promise or discharge the liability of a third person in case of his default.

Contract of Guarantee

Contract of Bailment

Contract of Indemnity

Contract of Pledge

 

A Contract of Guarantee is a——————- agreement.

Bipartite agreement

Tripartite agreement

Either (A) or (B)

None of these

 

Surety is a person who ————

Who gives the guarantee

To whom the guarantee is given

In respect of whose default the guarantee is given

None of the above

 

Liability of surety is ———————-

Conditional on default

Independent of default

Can be conditional or independent

None of the above

 

A continuing guarantee applies to ——

Reasonable number of transactions

Any number of transactions

A series of transactions

A specific transaction

 

 

A surety can be discharged from his liability by —–

By Notice

By Novation

By his Death

All the above

 

 

 

Right of Subrogation means ———-

The surety will step into the shoes of the another

He is entitled to the benefit of every security which the creditor has

The surety can claim indemnity from the principal debtor

All the above

 

 

 

Bailment means ———

The goods delivered to be returned by way of an equivalent in other commodities

The goods delivered to be returned by way of an equivalent in money

 

The goods is delivered by one person to another for some purpose to be specifically returned or otherwise disposed of as per the order of the bailor

All of these

 

 

 

Bailment is defined under Section —— of Indian Contract Act, 1872.

A)144

  1. B) 146

C)148

D)149

 

 

In all cases of bailment, the bailee is bound to take as much care of the goods bailed to him as a man of ordinary prudence would under similar circumstances. The statement is ———–

True

False

Partly correct

None of the above

 

If the goods are lent free to the bailee for his use it is known as —-

Commodation

Gratuitous Bailment

Non-Gratuitous Bailment

Deposition

 

 

 

If the bailee mixes the goods of the bailor with his own goods, without the consent of the bailor

The bailee is liable to pay the expenses for separation of goods and damages

The bailee is not liable

Not liable for compensation

None of these

 

 

Lien means ———

A charge

A particular status

A guarantee

A legal claim to hold property as security

 

 

Bailor in Pledge is known as ———

Bailee

Pawnor

Pawnee

None of these

 

 

In a Pledge, the general property or ownership in goods

Transferred to the pawnee

Cannot be transferred to the pawnee

Continues in the pawnor

None of the above

 

According to Section 71 of the Contract Act, a person who finds goods belonging to another and takes them into his custody, is subject to the same responsibility as a ———–

Bailee

Bailor

Surety

Pawnor

 

 

As per Section 182 of the Contract Act, an agent is one ———–

Who is employed by another

To do any act for another

To represent another in dealing with third person

All of the above

 

 

A sub-agent is a person ——-

Who works under the main agent

Who carries out the order and direction of a person under whom he works directly

Who works on behalf of the main agent

Employed by and acting under the control of the original agent in the business of agency

 

Substituted agent is ———–

Agent’s agent

Principal’s agent

None of the above

Both (A) and (B)

 

 

Ratification of authority means

Delegation of powers

Subrogation

Termination of agency

Confirmation to make valid or sanction an act which is already done.

 

 

 

An agency is terminated ———–

By the principal revoking the authority

By the agent renouncing the business of agency

By either the principal or agent dying or becoming of unsound mind

All the above

 

Voluntary transfer of possession from one person to another is called

 

Sale

Purchase

Delivery

Exchange

 

 

Which of the following Section of the Sale of Goods Act, 1930 defines the term “Goods”?

Section 2(7)

Section 2(4)

Section 2(5)

Section 2(9)

 

 

Goods to be manufactured or produced or acquired by the seller after making of the contract of sale are —–

Contingent goods

Future goods

Unascertained goods

None of the above

 

The definition of goods in the sale of goods act include —

Stock and shares

Money

Actionable claims

All the above

 

 

Seller means a person —–

Who sells

Who agrees to sell

Both of the above

None of the above

 

 

The money consideration for a sale of goods is called ——–

Purchase money

Price

Value

None of the above

 

 

The Sale of Goods Act, 1930 deals with ———

Immovable property only

Movable property only

 

Both (A) and (B)

None of the above

 

 

An agreement to sell is an executory contract. The statement is

True

False

Depends

None of the above

 

 

Which of the following is a bailment plus agreement to sell?

Pledge

Hire purchase

Mortgage

None of the above

 

 

A stipulation essential to the main purpose of the contract is              –.

Warranty

Condition

Obligation

None of the above

 

A stipulation collateral to the main purpose of the contract is ——

Condition

Warranty

Obligation

None of the above

 

 

Which of the following sections of the Sale of Goods Act, 1930 deals with implied conditions and warranties?

Sections 13 to 16

Sections 14 to 17

Sections 15 to 18

Sections 16 to 18

 

 

Conditions and Warranties in a contract may be ——-

Express

Implied

Express or implied

None of the above

Which of the following is an implied warranty?

As to undisturbed possession

As to non-existence of encumbrances

As to disclosure of dangerous nature of goods

All of the above

 

A breach of condition may be treated as a breach of warranty and not vice versa. The statement is

True

False

Depends

None of the above

 

 

The term “Partnership” is defined in Section ——- of the Indian partnership act, 1932.

2

3

4

5

 

Persons who have entered into partnership with one another are collectively called as ——–

Partners

Directors

Firm

None of the above

 

Partnership is a subject in the —————-

Union List

State List

Concurrent List

None of the above

 

An action for the indemnity can be brought against a partner

By the firm

By any partner on behalf of the firm

By a partner in his individual capacity

Either (A) or (B)

 

A property of a partner becomes the property of the firm

When it is used for the business of the partnership

When the property is owned by the partners

When there is an agreement express or implied that the property is to be treated as that of the firm

None of the above

 

The property of the firm includes —-

All property and rights and interest in property originally brought into the stock of the firm

All property and rights and interest in property acquired, by purchase or otherwise, by or for the firm for the purposes and in the course of the business of the firm, and includes also the goodwill of the business

Both (A) and (B)

None of the above

 

47) Which of the following courts has the jurisdiction for trying an offence punishable under section138 of the Negotiable Instruments Act, 1881?

Judicial Magistrate of Second Class

Judicial Magistrate of First Class

 

Chief Judicial Magistrate

None of the above

 

A post dated cheque is only a ————— when it is written or drawn, it becomes a cheque when it is payable on demand.

Promissory Note

Bill of Exchange

Draft

None of the above

 

The offence u/s 138 of the Negotiable Instruments Act is —-

Cognizable and bailable

Non-cognizable and non-bailable

Cognizable and non-bailable

Non- cognizable and bailable

 

A promissory note is made by ———

Creditor

Debtor

Holder

Drawee

 

Right of Indemnity Holder is specified in —-

Section 126

Section 125

Section 124

Section 123

 

X and Y go into the shop. Y says to the shopkeeper ‘let him have the goods, I will see you paid’. This is a contract of ——

Guarantee

Bailment

Indemnity

Pledge

 

Contract of Indemnity as defined in the Indian Contract Act, 1872 covers only ——

Liability incurred by something done by the indemnified at the request of the indemnifier

Indemnity for loss caused by human agency

Indemnity arises from loss caused by the events or accidents which do not depend upon the conduct of indemnifier or any other person

None of the above

 

 

Which one of the following is not a party to a contract of guarantee?

Principal Debtor

Creditor

Surety

Pawnor

 

Anything done or any promise made, for the benefit of the principal debtor, may be a sufficient consideration to the surety for giving the guarantee. The statement is

True

False

 

Partly correct

None of the above

 

In a contract of guarantee, the person to whom the guarantee is given is known as ——

Principal debtor

Creditor

Surety

Bailor

 

In a contract of guarantee, the liability of surety is ——

Primary

Collateral and secondary

Does not arise

None of the above

 

  1. Surety is a ———-

Favored creditor

Favored debtor

None of the above

Both (A) and (B).

 

A guarantee obtained by means of keeping silence as to material circumstances is ——–

Valid

Void

Invalid

Voidable

 

A leaves a cow in the custody of B to be taken care of. The cow has a calf. In the absence of any contract to the contrary

B is bound to deliver only the cow to A

B is bound to deliver the calf as well as the cow to A

B is bound to deliver the calf as well as the cow if he is plaid half the price of the calf.

B is bound to deliver the calf as well as the cow if he is paid one third of the price of the calf.

 

 

An example of bailment without a contract is ——

Giving a vehicle in a workshop for repair

Giving something in courier

Finder of the lost goods

None of these.

 

A finder of goods is

Entitled to retain the goods

Entitled to claim compensation when specific reward is offered

Not entitled to claim compensation and thus not entitled to retain the goods

Both (A) and (B)

 

Which of the following are the rights of bailee?

Right of indemnity

Right of remuneration

Right of lien

All the above.

 

Which of the following are the rights of bailor?

Right to demand restoration of goods

Right to get increase or profit from goods bailed

Right to sue the bailee for the enforcement of the duties imposed upon a bailee

All the above.

 

Which of the following is not an example of bailment?

Giving clothes for dry-cleaning

Keeping property in mortgage

Giving clothes for tailoring

Giving book for reading

 

———- entitles the bailee to retain those goods of the bailor for a general balance of the account.

Particular lien

General lien

Ownership

Pledge

 

An agent can be appointed by —-

A minor of sound mind

Any person of sound mind

A major of sound mind

Any major of sound or unsound mind

 

An agent can lawfully employ a sub-agent ——

Originally

If the nature of the agency permits

If the ordinary custom of trade permits

 

Both (B) and (C)

 

Who is Sub-agent?

Who works under the main agent

Who carries out the order and direction of a person under whom he works directly

Who works on behalf of the main agent

Employed by and acting under the control of the original agent in the business of agency

 

For the acts of sub-agent lawfully appointed

The sub-agent is not responsible to the principal

The sub-agent is responsible to the principal directly

The agent is responsible to the principal

The agent is not responsible to the principal

 

An agency may be created by —-

Expressly or impliedly

Necessity

Ratification

All the above

 

———- is an agent who sells goods or other property by auction.

Del credere agent

Auctioneer

Factor

Broker

 

——— is a mercantile agent who guarantees the performance of the contract by the third person on the payment oof some extra commission.

Broker

Factor

Auctioneer

Del credere agenet

 

An agency comes to an end by ——–

Performance of the contract

Agreement between the principal and the agent

Renunciation of his authority by the agent

All of the above

 

An agency is irrevocable ——–

Where the authority of agency is one coupled with interest

Where the agent has incurred personal liability

Both (A) and (B)

None of the above.

 

The Sale of Goods Act, 1930 deals only with goods which are –

—— in nature.

Immovable

Movable

Specific

All the above

 

Goods identified at the time of contract of sale is called ———

Specific goods

Ascertained goods

 

Clear goods

Both (A) and (D)

 

——- is the concept of “Let the buyer beware”.

Unfair trade practices

Caveat venditor

Caveat emptor

None of the above

 

———– and ——– are the two parties’ involved in a contract of sale.

Customer and sales man

Customer and supplier

Seller and buyer

Agent and principal

 

It is a standard rule that risk follows ——–

Seller

Property

Buyer

Possession

 

An agreement to sell the transfer of property in goods from the seller to buyer takes place ———

At the end of the contract

Immediately

In a future date

  1. D) Both (B) and (C)

 

Which of the following is not a subject matter in a sale of goods act?

Trade mark

Electricity

Money

Water

 

A consideration in a contract of sale must be——————- only.

Goods

Movable only

Price

Purchase

 

——————– means no one gives what they do not have.

Caveat emptor

Caveat venditor

Nemo dat quod non habet

None of the above

 

Baldry V. Marshal is a leading case relating to

Fitness for buyer

Sale under a patent or trade name

Consent by fraud

None of the above

 

Where the partnership is at will a partner can retire any time

By consent

By agreement

By notice

All of the above

 

 

A minor admitted to the benefits of a firm has a right to ——-

Such share of the property and of the profits of the firm as may be agreed upon

Have access to and inspect and copy any of the accounts of the firm

Both (A) and (B)

Any of the above.

 

A minor can

Inspect the books of accounts and other books

Inspect the book of accounts not othr books and papers

Cannot inspect the book of accounts

None of the above

 

When    a           minor       becomes   a   partner,   his   personal   liability commences from ——

The date of his first admission

The date of majority

The date fixed by all the partners

Any one of the above

 

On the retirement of a partner, the firm –

Ceases to exist

Continues to exist

Depends

None of the above.

 

A partner may retire

With the consent of all the other partners

In accordance with an express agreement by the partners

Where the partnership is at will, by giving notice in writing to all the other partners of his intention to retire

All of the above.

 

Which of the following is a ground for dissolution u/s 44 of the Indian Partnership Act, 1932?

Misconduct

Permanent incapacity

Unsoundness of mind

All of the above

 

The Negotiable Instruments Act came into force on –

9th Dec 1881

1st March 1882

9th Dec 1882

1st April 1881

 

Promissory note is defined u/s                 ——– of the Negotiable Instruments Act, 1881.

4

5

7

8

 

The maker of a bill of exchange or cheque is called ——–

Holder

Drawer

 

Drawee

Payee

 

The person who is directed to pay a bill of exchange is called —

Holder

Drawer

Drawee

Payee

 

When does the offence u/s 138 of the Negotiable Instruments Act, complete?

When the drawer fails to pay the cheque amount within 15 days of the notice by the holder

When information regarding dishonor is received by the holder from the bank

When notice of dishonour is received by the drawer

When the cheque is dishonoured.

 

A person committing an offence u/s 138 shall be punished with for a term of imprisonment which may extend to

6 months

1 year

2 years

3 years

 

The drawee of a cheque is always a

Company

Payee

Debtor

Banker

 

 

———- cheque cannot be paid across the counter.

Stale

Mutilated

Crossed

Bearer

Asst Prof. Umesh Katekar Dayanand College of Law, Latur

SYBCOM Business Law MCQ with Answers

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Business Economics Click Here

Reference: http://www.ngmc.org/

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COMMENTS

  1. Thank you sir, actually ya subject ch book hi Market madhe available nahi.ahmala study karatana khup problem la face karav lagat.but subject khup interesting and easy ahe.tevad book pn publish kara ani market madhe available kara.business Law and practice ha Subject life madhe khup important ahe. Sarv information milate IT act, maharashtra shop act and establishment, general insurance, maharashtra agriculture products marketing.once again thank you so much for supporting to our studying, I read all MCQ.

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