Business Laws and Special Contracts Set 1

Bachelor of Business Administration (BBA)

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This set of Business Regulations Multiple Choice Questions & Answers (MCQs) focuses on Business Laws and Special Contracts Set 1

Q1 | The Indian contract act come into force
  • from 1 september 1972
  • before 1 september 1882
  • from 1 september 1872
  • after 1 september 1872
Answer: from 1 september 1872
Q2 | Contract with minor is
  • illegal
  • valid
  • void
  • voidable
Answer: void
Q3 | Agreement caused by a bilateral mistake of fact is-
  • void
  • voidable
  • illegal
  • valid
Answer: void
Q4 | Which of these is a wagering contract?
  • insurance contract
  • teji mandi contract
  • lottery
  • all of these
Answer: lottery
Q5 | Consideration must move at the desire of-
  • third party
  • the promisee
  • the promisor
  • none of these
Answer: the promisor
Q6 | A contract entered into between the parties by words is called-
  • express contract
  • implied contract
  • quasi contract
  • specific contract
Answer: express contract
Q7 | When an offer can be accepted only by the person to whom it is made, it is called-
  • express offer
  • general offer
  • specific offer
  • implied offer
Answer: specific offer
Q8 | A promise to subscribe to a charity is a
  • void agreement
  • void contract
  • voidable contract
  • valid contract
Answer: void agreement
Q9 | A contract for the benefit of a minor entered into by his manager is
  • illegal
  • voidable
  • void
  • valid
Answer: valid
Q10 | Two or more persons are said to consent when they agree upon
  • the same thing in the same sense
  • the same thing in any sense
  • the same thing in a specific sense
  • none of these
Answer: the same thing in a specific sense
Q11 | The term “Quid pro quo” means:
  • something in return
  • something important
  • something of value
  • something relevant
Answer: something in return
Q12 | Which of the following is not an essential element of a valid contract:
  • adequacy of consideration
  • capacity to contract
  • free consent
  • none of the above
Answer: adequacy of consideration
Q13 | If a contract provides for the payment of a certain amount on breach of a contract, suchpayment is termed as:
  • special damages
  • nominal damages
  • liquidated damages
  • compensatory damages
Answer: liquidated damages
Q14 | Which of the following case is not covered by the concept of supervening impossibility?
  • destruction of subject matter
  • death or incapacity of the promisor
  • outbreak of war
  • difficulty of performance
Answer: difficulty of performance
Q15 | Under the Contract Act, 1872 a person is said to be of sound mind for the purpose of makinga contract if:
  • he is not illiterate and can read and understand the terms of the contract.
  • he is capable of understanding the contract and forming a rational judgement as to its effect upon his interests.
  • he is of the age of majority and is not disqualified from contracting by any law to which he is subject.
  • he is not suffering from any mental disease or distress.
Answer: he is capable of understanding the contract and forming a rational judgement as to its effect upon his interests.
Q16 | A positive assertion, in a manner not warranted by the information of the person making it, ofthat which is not true, though he believes it to be true is said to be a:
  • fraud
  • misrepresentation
  • mistake
  • misinterpretation
Answer: misrepresentation
Q17 | A minor can:
  • be an agent
  • be a principal
  • both
  • none of these
Answer: be an agent
Q18 | Choose the incorrect statement:To constitute a wager, following elements should be present in the agreement:
  • uncertain event
  • each party must pay in a win or lose situation
  • neither party should have any contract over the event
  • there should be a promise to pay money only
Answer: there should be a promise to pay money only
Q19 | The Indian Contract Act, 1872 applies to the
  • whole of india including jammu & kashmir
  • whole of india excluding jammu & kashmir
  • states notified by the government every year
  • northern and eastern indian states
Answer: whole of india excluding jammu & kashmir
Q20 | A jus in personam means a right against
  • a specific person
  • the public at large
  • a specific thing
  • none of these
Answer: a specific person
Q21 | Which of the following statement is true
  • an agreement enforceable by law is a contract
  • an agreement is an accepted proposal
  • both (a) and (b)
  • none of these
Answer: both (a) and (b)
Q22 | A contract is made where
  • x agrees with y to discover a treasure by magic
  • x bids at a public auction
  • x takes a sit in a public omni bus
  • x promises in writing to give rs. 500 to y
Answer: x takes a sit in a public omni bus
Q23 | A void agreement is one which is
  • valid but not enforceable
  • enforceable at the option of both the parties
  • enforceable at the option of one party
  • not enforceable in a court of law
Answer: not enforceable in a court of law
Q24 | In case of void agreements, collateral transactions are
  • also void
  • unenforceable
  • not affected
  • illegal
Answer: not affected
Q25 | In which of the following circumstances a contract can be treated as discharged under the concept of supervening impossibility?
  • spurt in prices
  • change in import policy
  • non-receipt of raw material from the supplier
  • shortage of working capital
Answer: change in import policy
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