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

Need your Support make a small contribution: GooglePay/PhonePay/Paytm: 7208379315

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


  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.



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

SYBCOM Business Law MCQ with Answers

For more notes Click Here 

Business Economics Click Here


SYBCOM Business Law MCQ with Answers, sybcom idol business law mcq question with answers, IDOL Mumbai University, Business Law MCQ with answers

6 comments on “SYBCOM Business Law MCQ with Answers: Mumbai University 2021

Post your Comment

Your email address will not be published. Required fields are marked *

nine − seven =