Business Law MCQ Questions and Answers Part – 3

Business Law MCQ Questions and Answers Part – 1

Business Law MCQ Questions and Answers Part – 2

Business Law MCQ Questions and Answers Part – 3

101. The position of a finder of lost goods is that of a ______________
A. Bailer
B. Bailee
C. Surety
D. Principal debtors
ANSWER: A
102. A bailer is a _________
A. a right of a particular lien over the goods bailed
B. a right of generation
C. a right of both particular and general lien
D. no lien at all over the goods bailed
ANSWER: A
103. S and P go into a shop. S says to the shopkeeper, C let P have the goods and if he does not pay you I will. This is a __________
A. contract of guarantee
B. Contract of indemnity
C. Wagering contract
D. Quasi-contract
ANSWER: A
104. The contract of indemnity is a _____________
A. Contingent contract
B. Wagering contract
C. Quasi-contract
D. Void agreement
ANSWER: A
105. Ordinary damages are damages which _____________
A. Arise in the usual course of things from the breach
B. Which are in the contemplation of the parties at the time when the contract is made?
C. Are agreed in advance
D. Are given by way of punishment for breach of contract
ANSWER: A
106. In case of wrongful dishonour of a cherub by a banker having sufficient fund to the credit of the customer, the court nay award
A. Ordinary damage
B. Nominal damage
C. Exemplary damage
D. Contemptuous damages
ANSWER: C
107. Anticipatory breach of a contract takes place _____________
A. During the performance of the contract
B. At the time when the performance is due
C. Before the performance is due
D. At the time when the contract is entered into
ANSWER: C
108. The case of Hadely Bv. Baxendale (1854) 8 Ex .Ch 341 deals with
A. Anticipatory breach of contract
B. Quantum of damages
C. Supervening impossibility
D. Quasi-contract
ANSWER: B
109. 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: A
110. 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: C
111. 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: C
112. The court may grant rescission were the contract is __________.
A. voidable at the option of the plaintiff
B. void.
C. unenforceable.
D. illegal.
ANSWER: A
113. 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 voidable at the options of legal representatives of a.
D. will have to performed by legal representatives of A.
ANSWER: A
114. The case of Satyabrata Ghose V. Mugneeram Bangur and co., (195d. SC 44) deals with__________
A. agreement opposed to public policy.
B. supervening impossibility.
C. contract of guarantee.
D. agencies.
ANSWER: A
115. A creditor agrees with his debtors and a third party to accept that the third as his third patty as debtor the contract is discharged by ________________.
A. alteration.
B. waiver.
C. rescission.
D. performance.
ANSWER: B
116. Were a contact could not be performed because of the default by a third party on whose work the promiser relied, it ______________.
A. it is not discharged.
B. is discharged.
C. becomes void.
D. becomes voidable.
ANSWER: A
117. A contract has become more difficult of performance due to some uncontemplated events or delays. The contract______________.
A. is discharged.
B. is not discharged.
C. becomes void.
D. becomes voidable.
ANSWER: B
118. A lends Rs 500 to B. he later tells B that he need not repay the amount, the contract is discharged by __________.
A. breach
B. waiver.
C. notation.
D. performance.
ANSWER: B
119. 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: A
120. If a new contract is substituted in place of an existing contract, it is called________.
A. alteration.
B. rescission.
C. novation.
D. waiver.
ANSWER: C
121. 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: A
122. 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: A
123. Owing to a strike in the factory of A, he is not able to supply the goods to B as per the terms of the
agreement. The agreement in such a case
A. discharged.
B. is not discharged.
C. becomes void.
D. is voidable
ANSWER: A
124. A who ooze 10,000 to B dies living and estate of Rs 6,000. The legal representatives of 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: B
125. Assignment by operation of law takes place_______________.
A. by the mutual consent of the parties.
B. by the will of either party.
C. when the subject matter of a contract cases to exist.
D. by the death of a party to a contract.
ANSWER: D
126. When two or more persons have made a joint promise, then unless a contrary intention appears from the contract all such person must fulfil the promise__________.
A. jointly.
B. severally.
C. jointly and severally.
D. jointly or severally.
ANSWER: A
127. Where the deports does not expressly intimate or were the circumstances attending on the 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: A
128. 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 contract
ANSWER: D
129. 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 promises.
ANSWER: C
130. When the promisee refuses to accept performance from the promiser who offers to perform, it is __________.
A. attempted performance
B. vicarious performance.
C. tender.
D. frustration of contract.
ANSWER: A
131. Each party is a promisor and a promise in case of
A. Past consideration.
B. Present consideration
C. Every contract.
D. Reciprocal promises.
ANSWER: D
132. Promises forming consideration for each other are known as
A. Independent promises.
B. Dependent promises.
C. Reciprocal promises.
D. Mutual promises.
ANSWER: C
133. The case of Nordenfelt V. Maxim Nordenfelt Gun Co., (190d.b.9 B.L.R 107 deals with.
A. Agreements in restraint of legal proceedings.
B. Minors agreement.
C. Agreements in restraint of trade.
D. Agreements in restraint of marriage.
ANSWER: C
134. An employee, by the terms of his service agreement, is prevented from accepting a similar engagement after the termination of service. The restraint is __________.
A. valid.
B. void.
C. illegal.
D. unenforceable.
ANSWER: B
135. 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: A
136. Where both the parties to an agreement are under a mistake as a matter of fact essential to the agreement, the agreement is
A. void.
B. voidable.
C. illegal.
D. not affected at all.
ANSWER: A
137. 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: A
138. 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: B
139. Where there is no specific agreement as to place, the goods sold are to be delivered at the place______________
A. At which they are at the time of sale.
B. To be determined by the seller
C. Desired by the buyer.
D. Of the buyer.
ANSWER: A
140. 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: B
141. A contract by an idiot is_____________.
A. voidable.
B. enforceable.
C. invalid.
D. void ab initio.
ANSWER: D
142. A person is usually of unsound mind, but occasionally of sound mind_____________.
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: A
143. A minor enters into a contract for the purchase of certain necessaries. In such a case_____________.
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: C
144. 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: B
145. On attaining the age of majority a minors agreement _____________.
A. can be ratified by him.
B. cannot be ratified by him.
C. becomes void.
D. becomes valid.
ANSWER: B
146. 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: A
147. A promise to subscribe to a charity. The promise is a _____________.
A. voidable contract.
B. void agreement.
C. void contract.
D. valid contract.
ANSWER: C
148. An agreement made with out consideration is _____________.
A. valid.
B. illegal.
C. voidable.
D. void.
ANSWER: D
149. 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: A
150. 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: C

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