TYBCOM SEM 5 || BUSINESS LAW paper solution MCQ

 T.Y B.COM

SEMESTER - 5

BUSINESS LAW - I

MCQS = 2010 - 11

1) "A agrees to sell his car to B for Rs. Five lakh. A Offer to deliver the car, but B regret it". This is an example of __________.

a) Tender

b) Reciprocal promise 

c) Assignment

d) Joint promise

2) Latin maxim "consensus ad idem' means _________.

a) Meeting of parents 

b) Meeting of minds

c) Meeting of parties 

d) None of these

3) A proposal once accepted, becomes ________.

a) A Promise

b) An Offer

c) A Contract

d) An Agreement

4) If the acceptance is given by offeree is subject to some condition, it is ________.

a) Not a valid acceptance

b) Binding

c) valid

d) lawful

5) A supply to B- a lunatic with necessaries suitable to his condition in life. Which of the following statement is true?

a) A cannot recover price of necessity as B is not competent to make a contract

b) A cannot recover as no legal action lies against B

c) A can recover the cost from the estate of B.

d) A can recover by making further agreement

6) Which of the following is type of damages __________.

a) Specific performance

b) Supreme

c) Vindictive

d) Quantum meruit

7) The foundation of modern law of damages is to be found in the case of _________.

a) Balfour v. Balfour 

b) Saloman v. Saloman 

c) Hadely v.Baxendale 

d) Nash v. Inman

8) When the consent of the party is obtained by physical force, the contract is __________.

a) Voidable

b) Illegal

c) Void

d) Valid

9) A minor's agreement is _________.

a) Unlawful

b) Voidable

c) Void ab initio

d) Illegal

10) A threat to commit suicide amounts to __________.

a) Fraud

b) Coercion

c) Undue influence

d) Misrepresentation

11) When both the parties to the contract are under an erroneous belief about the fact which is material to the contract, the contract becomes _________.

a) Voidable

b) Void

c) Illegal

d) Valid

12) Which of the following is not correct __________.

a) Minor's estate is liable for necessaries supplied to him

b) Minor can always plead minority

c) Minor is liable in tort

d) Minor cannot be beneficiary

13) Mistake as to foreign law is treated as __________.

a) Mistake of union

b) Mistake of law

c) Mistake of fact

d) Fraud

14) An agreement whereby one party assists another in recovering money or property and in tum share in the proceeds of the action is called _________.

a) Champerty

b) Maintenance

c) Stifling prosecution

d) Interference with court of justice

15) Which of the following agreement is expressly declared void?

a) Agreement in restraint of trade

b) Agreement in restraint of marriage

c) Agreement in restraint of legal proceedings 

d) All of these

16) A Lottery, being a game of chance is a __________

a) Wagering agreement

b) Contingent contract

c) Valid contract

d) Quasi contract

17) Acceptance of a lesser fulfillment of the promise is technically called __________

a) Alteration

b) Rescission

c) Remission

d) Merger

T.Y B.COM

SEMESTER - 5

BUSINESS LAW - I

MCQS = 2009 - 2010

1) In order to have a lawful Consideration, it must move at the desire of __________.

a) Promisor

b) Third party

c) Promisee

d) Both the party

2) Once a Novation is made between the same party, the original contract _______

a) Comes to an end 

b) Remain in Operation 

c) Novation is not permissible under law

d) None of the above

3) Where a promisor could not perform because of the default by third person on whose work the promise relied, the contract ______

a) Is discharged

b) is not discharged

c) becomes void

d) becomes voidable

4) The court may grant rescission of contract where the contract is _______.

a) voidable at the option of defendant

b) voidable at the option of plaintiff

c) voidable

d) void

5) Specific performance may be ordered by the court when _______.

a) contract is uncertain

b) contract is voidable

c) Damages are not an adequale remedy

d) Damages are an adequate remedy

6) The Latin term 'Quid pro quo' is used for ______.

a) Acceptance

b) Promise

c) Offer

d) Consideration

7) Where a contract contain any special terms, it must be brought to the notice of the other party ______.

a) At the time of formation of contract

b) After the formation of the contract

c) At any moment

d) Not necessary

8) Anticipatory breach of contract takes place _______.

a) During the performance of contract

b) at the time when performance

c) at the time when the contract is entered into 

d) before the performance is due

9) Where consent is obtained under coercion, it renders the contract?

a) Illegal

b) valid

c) void

d) voidable

10) A contract made by lunatic during the interval of his sound mind is __________.

a) voidable

b) void

c) Illegal

d) valid

11) In which f the following case it was established that agreement by minor is void ab -initio ______

a) Moharibibi v. Dharmaodas Gosh

b) Mayuribibi v. Dharamdas Gosai

c) Mohanbai v. Dharmsingh Desai

d) None of the above.

12) 'X agreed to sell his car to Y". X's consent was obtained by threat to commit a murder. The consent of X is caused by _________.

a) Undue influence 

b) Compulsion

c) Coercion

d) Mistake

13) Pratik invites Mihir for a dinner. Mihir accept the invitation. Such an agreement is a __________.

a) Merely a social agreement

b) Valid contract

c) Voidable contract

d) Void contract

14) In case of joint promises, the liability of joint promisors are

a) Individual only 

b) Joint only

c) Joint as well as several 

d) Must perform jointly

15) Which of the following statement is false in context to Consideration?

a) Consideration must be real and not illusory

b) Consideration may be past, present or future

d) Consideration must be illegal

c) Consideration need not be adequate

16) According to Indian Majority Act where a person in whose case guardian or wad is appointed by the court for his person or property the age of majority is _________.

a) 18 years

b) 20 years

c) 22 years

d) 21 years

17) Which of the following relationship raise a presumption of undue influence?

a) Trustee and beneficiary

b) Doctor and patient

c) Solicitor and client

d) all of above

18) Which of the following is not an exception to the rule that 'contract without consideration is void'?

a) Love and affection

b) completed gift

c) Charitable subscription

d) Political Contribution

19) Aman gives a threat to her wife Niketa that if she fails to transfer some of her property in favour of his brother Girish, he will commit a suicide. Accordingly she sign the transfer deed in favour of Girish, In such a case Consent of Niketa is cause by _________.

a) Coercion

b) Misrepresentation 

c) Fraud

d) Undue influence

20) Offer can be accepted only by the person to whom it is made?

a) Public

b) Specific

c) General

d) open

21) An agreement enforceable by law is a / an _________.

a) Consideration

b) Acceptance

c) Contract

d) Offer

22) An agreement to do an impossible act in itself is __________.

a) Valid contract

b) Void agreement 

c) Voidable agreement 

d) Illegal agreement