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This set of Business Law Multiple Choice Questions & Answers (MCQs) focuses on Business Law Set 1

Q1 | An agreement enforceable by law is
  • agreement
  • contract
  • offer
  • promise
Q2 | Every promise and every set of promises, forming the consideration for each other is an
  • agreement
  • offer
  • contract
  • acceptance
Q3 | In a contract of indemnity the right of the indemnifier is similar to that of the:
  • debtor
  • creditor
  • surety
  • agent
Q4 | In a contract of indemnity, minimum no of parties are
  • 4
  • 3
  • 2
  • 1
Q5 | The sale of goods act is of:
  • 1903
  • 1923
  • 1930
  • 1932
Q6 | Seller is a person who
  • sells
  • buys
  • debtor
  • transferee
Q7 | Document of title includes
  • business reports
  • railway receipt
  • cash memo
  • email
Q8 | A person coming forward to accept after it has been dishonoured is called:
  • acceptor for honour
  • acceptor for paying
  • payment for honour
  • holder
Q9 | Protest for better security is done for publicity stunt.
  • true
  • false
  • attention
  • fun
Q10 | When an instrument is lost, it is presumed that it was duly stamped
  • true
  • false
  • not inchoate
  • inchoate
Q11 | Which one of the following element is notnecessary for a contract ?
  • Competent parties
  • Reasonable terms and conditions.
  • Free consent
  • Lawful concentration
Q12 | An agreement becomes a contract if :
  • It is by free consent of the parties.
  • Parties are competent.
  • It is enforceable by law.
  • None of the above .
Q13 | In a standardized contract :
  • The individual has no choice but to accept and sign on
  • The individual must be protected in contract.
  • The agreement is without consideration.
  • None of the above.
Q14 | The correct sequence in the formation of a contract is :
  • Offer, acceptance, agreement, consideration.
  • Agreement, consideration, offer,acceptance.
  • Offer , Consideration, acceptance, agreement.
  • Offer,acceptance, consideration, agreement.
Q15 | A sells, by auction to B a horse which A knows to be unsound. A says nothing to B about the horse unsoundness. A does :
  • Fraud
  • Misrepresentation
  • No fraud
  • Undue Influence
Q16 | A petient in a lunatic Asylum who is at intervals of sound mind :
  • May not contract.
  • May contract.
  • May contact during those intervals when he is of sound mind.
  • May contract only after he becomes completely of sound mind .
Q17 | Which is not the correct statement ?
  • If consent is the result of coercion, the agreement is
  • If a party is minor, the agreement is void .
  • If the object of an agreement is unlawful, the agreement is void.
  • If the consideration of an agreement is unlawful, the agreement
Q18 | What is the purpose behind the enactment of Sale of Goods Act, 1930?
  • To define the laws relating to the sale of goods
  • To consolidate and amend the laws relating to the sale of goods
  • To consolidate, amend and define the laws relating to the sale of goods
  • To define and amend the laws relating to the sale of goods
Q19 | Section 2(1) of Sale of Goods Act defines ‘buyer’ as:
  • Person who buys goods and services
  • Person who agrees to buy goods
  • Person who buys or agrees to buy goods
  • Person who buys or agrees to buy goods and services
Q20 | Before the enactment of Sale of Goods Act, the provisions regarding Sale of
  • Indian Contract Act, 1872
  • Indian Registration Act, 1908
  • Transfer of Property Act, 1882
  • Indian Partnership Act, 1932
Q21 | Which of the following cannot be said to be included in the term “goods” defined under section 2(7) of the Sale of Goods
  • Stock
  • Shares
  • Growing crops
  • Actionable claims
Q22 | The voluntary transfer of possession from one person to another is called
  • Transfer
  • change of possession
  • Delivery
  • None of above
Q23 | Which of the following is not the right of an unpaid seller under Sale of Goods Act, 1930:
  • Right of lien on goods for the price while the goods are in possession of seller.
  • Right of stopping the goods in transit, in case of insolvency of buyer
  • Right of resale as limited by the Act
  • Right of withholding delivery where the property in the goods has passed to the buyer
Q24 | Future goods means goods to be manufactured or produced or acquired by the seller
  • In future prescribed time
  • after making of contract
  • before making of contract
  • none of the above
Q25 | Bearer cheques are also known as------ cheques.
  • Crossed
  • General
  • Special
  • Open