Business Laws and Special Contracts Set 4

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This set of Business Regulations Multiple Choice Questions & Answers (MCQs) focuses on Business Laws and Special Contracts Set 4

Q1 | A minor can be
  • ratify his agreement after attaining majority
  • be directed by the court for specific performance of the contract
  • always plead his minority
  • be held liable for cheques issued by him
Q2 | A minor’s guardian is not liable to the creditor for breach of contract by the minor, if thecontract is for __________
  • supply of necessaries
  • supply of non-necessaries
  • supply of services
  • all of the above
Q3 | The doctrine of restitution refers to the restoration of property or goods, obtained by falserepresentation. This doctrine is
  • beneficial to minors
  • not applicable to minors
  • applicable to minors
  • none of the above
Q4 | A consideration in a contract
  • may be any thing
  • nothing in return
  • something in return
  • may be illusory
Q5 | A consideration may be
  • past
  • present
  • future
  • either (a) or (b) or (c)
Q6 | An agreement not supported by the consideration is called
  • nudum pactum
  • an invalid consideration
  • ab initio
  • namo dat quod non habet
Q7 | The consideration is to be moved sometime after the formation of a contract, it is known as
  • present consideration
  • executory consideration
  • past consideration
  • executed consideration
Q8 | The term privity of contract means
  • stranger to contract
  • contract is private
  • first party to contract
  • second party to contract
Q9 | A proposal may consist of a promise for
  • doing an act
  • abstaining from doing an act
  • either (a) or (b)
  • returning the consideration
Q10 | A offers to sell his car on internet, it is
  • an express offer
  • an implied offer
  • a particular offer
  • no offer
Q11 | The offer which is allowed to remain open for the acceptance over a period of time is knownas a/an
  • standing offer
  • specific offer
  • special offer
  • implied offer
Q12 | The offer made to a specific person or group of persons is known as a
  • standing offer
  • specific offer
  • special offer
  • separate offer
Q13 | Terms of the offer must be
  • ambiguous
  • uncertain
  • definite
  • vague
Q14 | When a person invites the other party to make an offer, he is said to make a/an
  • proposal
  • offer
  • invitation to offer
  • acceptance
Q15 | Price lists, catalogues, advertisements in newspapers and enquiries from customers are
  • offers
  • invitations to offer
  • acceptances
  • cross offers
Q16 | Goods displayed in a shop with a price label is
  • an offer
  • an invitation to offer
  • a counter-offer
  • a contra-offer
Q17 | When the offers made by two persons to each other containing similar terms of bargain crosseach other in post, they are known as
  • cross offers
  • implied offers
  • direct offers
  • express offers
Q18 | Which of the following is not the mode of the lapse of an offer?
  • lapse of time
  • case against the offeror
  • insanity of the offeror
  • failure to accept condition precedent
Q19 | Contract is defined as an agreement enforceable by law, vide section . . . . . of the IndianContract Act
  • 2 (e)
  • 2 (f)
  • 2 (h)
  • 2 (i)
Q20 | When the contract is perfectly valid but cannot be enforced because of certain technicaldefects. This is called
  • unilateral contract
  • bilateral contract
  • unenforceable contract
  • void contract
Q21 | Where a contract has to be inferred from the conduct of parties, it is called
  • express contract
  • implied contract
  • tacit contract
  • unlawful contract
Q22 | Where the obligation in a contract is outstanding on the part of both parties, it is called
  • void contract
  • illegal agreement
  • valid contract
  • bilateral contract
Q23 | A contract in which, under the terms of a contract, nothing remains to be done by eitherparty is known as
  • executed contract
  • executory contract
  • unilateral contract
  • none of the above
Q24 | A contract in which, under the terms of a contract, one or both the parties have still toperform their obligations in future is known as
  • executed contract
  • executory contract
  • unilateral contract
  • none of the above
Q25 | The unpaid seller can exercise his right of lien over the goods for
  • price of goods
  • storage charges
  • any lawful charges
  • all of these