Business Law (MCQs) Set-4
Categories: EDUCATION
Q.31. If there is error in cause, the contract I
- void
- voidable
- valid
- illegal
Answer: (B) voidable
Q.32. A contingent contract is
- void
- voidable
- valid
- illegal
Answer: (C) valid
Q.33. A lends Rs. 500 to B. He later tells B that he need not repay the amount, the contract is discharged by
- breach
- waiver
- novation
- performance
Answer: (B) waiver
Q.34. The measure of damages in case of breach of a contract is the difference between the
- contract price and the market price at the date of breach
- contract price and the maximum market price during the term of the contract
- contract price and the price at which the plaintiff might have sold the goods,
- contract price and the price fixed by court.
Answer: (A) contract price and the market price at the date of breach
Q.35. A minor has been supplied necessaries on credit
- he is not liable
- he is personally liable
- his estate is liable
- he is not personally liable
Answer: (C) his estate is liable
Q.36. Any variance made without surety's consent in the terms of the contract between the principal debtor and thecreditor discharges the surety
- as to transactions prior to variance
- Coffee
- as to transactions subsequent to variance
- as to all transactions
- fromhis liability under the guarantee.
Answer: (B) as to transactions subsequent to variance
Q.37. The doctrine of caveat emptor applies
- incase of implied conditions and warranties
- Coffee
- when the buyer does not intimate the purpose to the seller and depends upon his own skill and judgment
- when goods are sold by sample
- when goods are sold by description
Answer: (A) incase of implied conditions and warranties
Q.38. A condition is a stipulation which is a
- essential to the main purpose of contract of sale
- not essential to the main purpose of contract of sale,
- collateral to the main purpose of contract of sale
- none of the above.
Answer: (A) essential to the main purpose of contract of sale
Q.39. A contract
- may be void as originally entered into
- may become void subsequent to its formation
- cannot become void under any circumstances
- may become void at the will of party.
Answer: (B) may become void subsequent to its formation
Q.40. A letter of acceptance sufficiently stamped and duly addressed is put into course of transmission. There is
- a contract voidable at the option of acceptor
- a contract voidable at the option of offerer,
- no contract at all,
- a valid
Answer: (D) a valid