T.Y B.COM
SEMESTER - 5
BUSINESS LAW - I
MCQs: 25 NOV 2021
1. Find out from the following case, where the court may pass an order of specific performance of contract
A. contract is voidable.
B. injunction is an adequate remedy.
C. Damages are not adequate remedy.
D. The contract is uncertain.
2. A sells his TV set to B for Rs.10,000/-. A has a right to recover the price of the TV set from B. This right is known as.......
A. Jus in rem
B. Jus in personam
C. Social right
D. Moral right
3. Which of the following is not essential element of valid contract?
A. Consideration and object of contract must be lawful.
B. Consent of parties to contract must be free.
C. Parties to contract must be competent to contract.
D. every contract must be in writing.
4. A person who is usually of unsound mind, but occasionally of sound mind, Which of the following is correct?
A. he may enter in to contract when he is unsound mind
B. he may not enter in to a contract when he is of sound mind
C. he may enter in to a contract when he is of sound mind.
D. he may enter in to a contract with the permission of court
5. Identify from the following an agreement which is not expressly declared void
A. an Agreement by way of wager.
B. Agreement contingent on impossible event.
C. Agreement in restraint of trade.
D. Agreement of Charitable subscription where the promisee on the strength of the promise makes commitments.
6. Which one of the following is not a test of a soundness of mind ?
A. A person is said to be of sound mind for the purpose of making a contract if, at the time when he makes it, he is capable of understanding it and forming a rational judgment as to its effect upon his interest.
B. A person is said to be of sound mind for the purpose of making a contract if, at the time when he makes it, he is healthy and wealthy.
C. A person who is usually of sound mind, but occasionally of unsound mind, may not make a contract when he is of unsound mind.
D. A person who is usually of unsound mind, but occasionally of sound mind may make a contract (adadhu che aa last ma)
7. In which of the following cases object is lawful?
A. B, promises to pay A, Rs.2,00,000/- in return for A's promise to obtain employment in the public service for B.
B. Agreement between 3 persons for division among them of gains acquired to be acquired by fraud.
C. A agrees to sell his house to B for Rs.50,00,000/- and B agrees to buy the house for Rs.50,00,000/-.
D. A agrees to let his premises in Gujarat to B, for storage of liquor.
8. Mr. A owes Rs. 50,000 to Mr. B. If Mr. B accept Rs. 30,000 in full and final settlement of the outstanding due. It is known as...
A. Remission
B. Novation
C. Alteration
D. Rescission
9. In which of the following cases court will pass order of specific performance of a contract?
A. Where the contract is in its nature irrevocable.
B. Where damages are an adequate remedy.
C. When the act agreed to be done is such that compensation in money for its non-performance is not an adequate relief.
D. Where contract is not certain or is inequitable to either party.
10. In which of the following relationship presumption of undue influence is not there
A. Parent and child.
B. Religious adviser and disciple.
C. Solicitor and client.
D. Landlord and tenant.
11. A compromise of dispute claims is...
A. a good consideration for a contract. Sayad
B. not a good consideration for a contract.
C. results into void agreement.
D. is not permitted by law.
12. Which of the following reason is not an excuse for non-performance of contract in relation to supervening impossibility?
A. Failure of third party.
B. Change of law.
C. Outbreak of war.
D. Non-existence of a state of things.
13. A is appointed as guardian by the court of Law for the person and property of B. The age of majority in relation to B is.....
A. 18 years
B. 25 years
C. 20 years
D. 21 years
14. Which of the following is an excuse for non performance of contract in connection with supervening impossibility?
A. Destruction of subject matter.
B. Difficulty of performance.
C. Commercial impossibility.
D. Lock-outs and civil disturbances.
15. Void agreement means ?
A. An agreement which is enforceable by one party.
B. An agreement not enforceable by law.
C. An agreement which is criminal in nature.
D. An agreement which cannot be enforced in a court of law because of some technical defect.
16. Where work has been done in pursuance of a contract, which has been discharges by the default of the defendant, the plaintiff is entitle for...
A. suit upon quantum meruit
B. suit for injunction
C. suit for damages
D. suit for specific performance
17. Where the two promises are to be performed simultaneously, they are said to be...
A. mutual and independent
B. mutual and dependent
C. mutual and concurrent true
D. mutual
18. In a contract, when promisor has made his part of performance and the same is not accepted by the promisee, what will be the consequences?
A. The promisor is not responsible for non-performance, nor does he thereby lose his rights under the contract.
B. Promisor is not responsible for non-performance, but he loses his rights under contract.
C. Promisor is responsible for non-performance but not loses his rights under contract.
D. Promisor is not only responsible for non-performance but also loses his right under contract.
19. Identify from following in which obligation is imposed by law, though there is no contractual relation between parties
A. Quasi contract
B. Executory contract
C. Implied contract
D. Contract of indemnity
20. Responsibility of finder of goods is that of the
A. Bailee
B. Buyer
C. True owner
D. Pawnee
21. Which of the following is not a valid contract?
A. A father in natural love and affection promises his son to give bike. He puts his promise to give bike in writing and registered it.
B. A owes B Rs. 50,00,000 but debt is barred by the limitation Act. A sings a written promise to pay 30,00,000 on account of debt.
C. A finds B's purse and gives it to him. B promises to give A Rs.1000 as reward.
D. A promises to give Rs. 100,000 to B for no consideration. True
22. Which one of the following is not a quasi Contract?
A. Claim for necessaries supplied to person incapable of contracting or to any other person to whom he is bound to supply necessaries.
B. Reimbursement to a person making payment, which another is bound by law to make but the person paying is interested in such payment.
C. Promise contingent upon happening or non happening of uncertain future event.
D. Responsibility of finder of finder of goods.
23. Which one of the following is not a contract?
A. A finds B's purse and gives it to him. B, in return promises to pay Rs. 5000/- to A.
B. A promises to pay B, Rs.50,000/- without consideration.
C. A agrees to sell a house worth Rs.50,00,000/- for Rs.5,00,000/-. A's consent is free.
D. A, an eminent cricket player gives coaching to B's minor son for cricketing skills. B promises to pay for learning cricketing skills to his minor son.
24. Which of the following is not true in relation to minor's agreement?
A. the rule of estoppel does not apply to a minor
B. ratification may be allowed on attaining the age of majority
C. beneficial agreements are valid contracts
D. minor can be admitted to the benefit of partnership firm with the consent of all partners
25. A who is a practicing Dentist, is employed by B as a Dentist in his Hospital. A, agreed not to do his own practice or get employed with anyone else while in the services of the B. While in the services of B, A started his own independent practice of a Dentist. B can file suit against A for _________.
A. Specific performance of contract.
B. damages
C. Injunction
D. Quantum meruit
26. Identify the principle which was laid down in Mohiri Bibi vs. Dharmodas Ghose :
A. An agreement with or by minor is void and inoperative ab initio
B. Contract without consideration is void.
C. Object of contract must be lawful.
D. Intention of parties to contract must to create legal relationship.
27. When both the parties have performed their respective obligations under a contract. It is __________.
A. an executory contract.
B. an executed contract.
C. partly executory contract.
D. partly executed contract.
28. Which of the following convey the meaning of Consensus ad idem
A. Meeting of minds.
B. Something in return.
C. Competency of parties.
D. Contract without consideration.
29. It is the duty of the injured party to __________ damage suffered as a result of the breach of contract by the other party.
A. strengthen
B. mitigate sayad
C. increase
D. maximise
30. If a person has supplied necessaries to the minor which is suitable to his life, the supplier is...
A. Not entitle to be be reimbursed for such supplies from relative of the minor person.
B. Entitle to be reimbursed for such supplies from the property of minor person. True ek dam
C. Not entitled for reimbursement, because minor in not capable to create contract.
D. Entitle to be reimbursed for such supplies from friends of the minor person, provided friends must be capable of contracting.
31. Where persons reciprocally promise, firstly to do certain things which are legal, and secondly, under specified circumstances, to do certain things which are illegal. Which one is valid?
A. The first set of promises is a contract, but the second is a void agreement.
B. The contract is void.
C. The whole contract is valid.
D. The contract is voidable.
32. consent involves identity of minds of contracting parties, which is also known as...
A. consensus ad-idem
B. quid-pro-quo
C. ab-initio
D. quantum meruit
33. Consent is said to be not free __________.
A. If it is given under coercion or undue influence.
B. If it is given because of fraud or misrepresentation.
C. If it is given under mutual mistake of fact.
D. All of the above.
34. A agrees to sell to B a horse for Rs.50000/- if it wins a race and for Rs.5000/- if it does not. It is a ________.
A. contingent contract.
B. voidable contract.
C. wagering agreement.
D. void agreement
35. A promise made without any intention of performing it amounts to.....
A. unlawful dealing
B. fraud
C. misrepresentation
D coercion
36. Identify from the following where contract is not discharge...
A. change of law
B. outbreak of war
C. destruction of subject matter of contract
D. commercial impossibility
37. The damages which are awarded with a view to punish the guilty party for the breach of contract is called as....
A. special damages
B. exemplary damages
C. ordinary damages
D. nominal damages sayad
38. Hadley vs. Baxendale is a leading case on.........
A. Damages
B. Rescission
C. Quantum meruit
D. Injunction
39. A owns a plot. He is entitled to a quiet possession and enjoyment of his property. This right is ________.
A. Jus in personam
B. Jus in rem
C. Moral right
D. There is no right
40. A compromise of dispute claims is...
A. a good consideration for a contract.
B. is not a good consideration for a contract.
C. results into void agreement.
D. is not permitted by law.
41. Which one of the following is not a discharge of contract by operation of law ?
A. By Merger.
B. By insolvency.
C. By breach of contract.
D. By unauthorized alteration of terms of a written contract.
42. In which of the following circumstances contract is not voidable at the option of party whose consent is so obtain?
A. When the consent was caused by coercion
B. When the consent was caused by misrepresentation
C. When consent is implied
D. When the consent was caused by fraud.
43. In a Contract, where the consent is given by a party under a mistake as to the nature and character of a written document, the agreement is...
A. voidable
B. valid
C. absolutely void
D. partly valid
44. To be valid, tender __________.
A. must be absolute, unconditional and must be of whole quantity or obligation contracted for.
B. must be made to the proper person and at the and proper time and place.
C. may be made to one of the several joint promises and in case of tender of goods must give a reasonable opportunity to the promisee to inspect the goods.
D. All of the above
45. When consent of a person is obtained by threat to commit a suicide, it is covered under
A. Undue influence
B. Fraud
C. Coercion
D. Misrepresentation
46. If agreement in which part of object is lawful and part of object unlawful, if lawful part cannot be separated from the unlawful part, what will be the consequences?
A. The whole Agreement is void.
B. Agreement is valid.
C. Agreement is voidable.
D. Part of object which is lawful is enforceable
47. Where a contract consists of reciprocal promises and such reciprocal promises are to be simultaneously performed, identify which of the following is true?
A Promisor need to perform his part of promise first
B. Promisor need not perform his part of promise unless promisee is ready and willing to perform his part of promise.
C. It is promisor's duty to remind promisee to perform his part of promise under contract
D. Promisor has to compel promisee to perform his part of promise under contract.
48. The positive assertion, in a manner not warranted by the information of the person making it, of that which is not true, though he believers it to be true is called as...
A. fraud
B. coercion
C. mistake
D. misrepresentation
49. Contractual rights and obligations created by
A. Contract Act.
B. contract.
C. Custom or usage.
D. Statute.
50. "All illegal agreements are void but all void agreements are not necessarily illegal" identify the correctness of statement...
A. partly correct
B. partly incorrect
C. true
D. Ouncertain
51. If agreement in which part of object is lawful and part of object unlawful, if lawful Part cannot be separated from the unlawful part, what will be the consequences?
A. The whole Agreement is void
B. Agreement is valid
C. Agreement is voldable
D. Part of object which is lawful is enforceable
52. An agreement to result in to a valid contract __________.
A. Must have all the essentials of a valid contract.
B. Must be enforceable by law.
C. Both (a) and (b)
D. Only (b)
53. Mr. P supports A's infant son. A promises to pay P's expenses in so doing. It is.....
A. not a valid contract
B. not enforceable contract
C. a valid contract
D. voidable contract
54. Identify from following which indicate meaning of Quantum meruit
A. A non-gratuitous promise.
B. An implied promise.
C. As much as is earned.
D. As much as is paid.
55. An offer is not valid when
A. Terms of the offer are such as in law not incapable of being accepted and giving rise to legal relationship.
B. It contains a term the non compliance of which may be assumed to amount acceptance.
C. Terms of the offer are not indefinite, ambiguous, uncertain, loose and vague.
D. All of the above.
56. When both the parties to a contract have, completely performed their part of obligation and nothing remains to be done by either party under the contract, a contract is said to be........
A. executory contract
B. executed contract
C. partly executed contract
D. partly executory contract
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