Business Law (MCQs) Set-2

Categories: EDUCATION

Q.11. An agreement made without consideration is

  1. valid,
  2. illegal,
  3. voidable
  4. void

 

Answer: (D) void

 

Q.12. On the face of the ticket for a journey the words ― for conditions see back are printed in small print. The passenger _______

  1. is bound by the conditions whether he takes care to read them or not.
  2. is not bound by the conditions
  3. may not take note of the conditions
  4. none of the above.

 

Answer: (A) is bound by the conditions whether he takes care to read them or not.

 

Q.13. A contract creates

  1. rights in personam,
  2. rights in rem,
  3. only rights and no obligations,
  4. only obligations and no rights.

 

Answer: (B) rights in rem,

 

Q.14. A mere attempt at deceipt by a party to a contract ____

  1. is not fraud unless the other party is actually deceived
  2. is fraud whether the other party has been deceived ornot
  3. amounts to misrepresentation
  4. none of the above.

 

Answer: (A) is not fraud unless the other party is actually deceived

 

Q.15. If there is a fraudulent misrepresentation as to the character of a document, the contract is ______

  1. void,
  2. voidable,
  3. valid
  4. illegal

 

Answer: (A) void,

 

Q.16. The case of nordenfelt v. maxim nordenfelt gun co. (1904) deals with

  1. agreement in restraint of legal proceedings,
  2. minor‘s agreements
  3. agreement in restraint of trade
  4. agreement in restraint of marriage.

 

Answer: (C) agreement in restraint of trade

 

Q.17. When promisee refuses to accept performance from the promisor who offers to perform, it is ____

  1. attempted performance,
  2. vicarious performance,
  3. tender
  4. frustration of contract.

 

Answer: (A) attempted performance,

 

Q.18. Assignment by operation of law takes place ______

  1. by the mutual consent of parties
  2. by the will of either party
  3. when the subject matter of a contract ceases to exist.
  4. by the death of a party to a contract.

 

Answer: (D) by the death of a party to a contract.

 

  1. Where a contract could not be performed because of the default by a third person on whose work the promisor relied , it ____
  2. is not discharged
  3. is discharged
  4. becomes void
  5. becomes voidable.

 

Answer: (A) is not discharged

 

Q.20. Specific performance may be ordered by the court when _____

  1. the contract is voidable
  2. damages are an adequate remedy
  3. damages are not an adequate remedy
  4. the contract is uncertain.

 

Answer: (C) damages are not an adequate remedy

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