Business Law Set 1 MCQs

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