AURORA’S PG COLLEGE(MCA)
NAMPALLY,HYDERABAD
BUSINESS LAW & ETHICS[QUESTION BANK]
I. Choose the correct answer:
1. According to section11 the following persons and incompetent
to contract
A. Minor
B. Person Of Unsound Mind
C. Person Disqualified By Law To Contract
D. All Of The Above
2. Misrepresentation IsDefined Under
A . Section 18
B. Section 15
C. Section 19
D. Under Influence
3. An Act Of False Representation Made Intentionally By One Party With A View To
Deceive The Other Party Is Termed As
Coercion
Misrepresentation
Fraud
Under Influence
4. One OfThe EssentialElements OfAValid ContractIs
A.Misrepresentation
B. Lawful Consideration
C. Coercion
D. Agreement
5. AnOffer CanBeBefore Acceptance Before It’sCommunication
A. Revoked
B.Accepted
C.Contract
D. Agreement
6. LegalRules For LawfulConsideration Is
A. Deals withthe present Contract
B. Must BE Adequate
C. Must Move At The Desire Of The Promisor
D. Must BeIllegalAnd OpposedTo PublicPolicy
7.A Agreement Is An Agreement Which Is Not Enforceable By
Law A. Voidable
B.Void
C.Illegal
D.Legal
8.Who Among TheFollowing AreConsidered AsPersonsOfUnsound
Mind A.Idiots
B. Lunatics
C.Intoxicated Or Drunken PersonD.
AllThe Above
9. When A Contract IsBroken The Injured Parties Have One Or More Of The Following
Remedies
A.Suit For Agreement
B. Suit For Injunction
C. Suit For Rights
D. None Of The Above
10. Minor Is A Person Who Had Not Attained The AGE Of Years.
A. Twenty
B.Ninteen
C.Eighteen
D.Twenty One
11. Is ASpecialKind OfBailment
A.Pledge
B.Agency
C.Contract
D.Agreement
12. ASeller Who HasNot BeenPaid The WholePriceOfTheGoodsSold Is KnownAs
A.Paid Seller
B. Unpaid Seller
C. YesTo Pay Seller
D.Post Paid Seller
13.A Person Who Draws The Cheque Is Knowns As
A.Drawee
B.Payee
C.Drawer
D.None
14. ThePersonTo WhomGoodsAreDelivered Under AContract ABailment
Is A.Bailer
B.Pledger
C.Seller
D.Bailee
15. IfThe Transfer Of Property Of GoodsIsToBeTaken Place At ALaterTime Is
Termed Is Termed As
A. Agreement To Sell
B. Sale
C.Guarantee
D.Warranty
16. ThePersonWho GivesTheGuarantee IsCalled
A.Creditor
B. Surety
C.Debtor
D.Agent
17. When A Cheque BearsIn Addition Of The Name Of A Bankers Then It IsCalled As
A. General Crossing
B.Restrictive Crossing
C.Special Crossing
D.BillOfExchange
18. PromissoryNoteHave Parties _
A.Three
B.One
C .Six
D.Two
19. One Of The Essential Features Of Negotiable Instrument Is A. Easily
TransferableB.Recovery
C.Defect FreeTitleOfHolder InDueCourse
D.All The Above
20. The Person OnWhom Cheque Is Drawn Is Termed As, A.Promissor
B.Promisee
C.Payee
D.Bailor
21. Afinder oflost goodsis a
A. bailor
B. Baile
C. true owner
D. thief
22. Aspecific offer can be accepted by
A. anyperson
B. any friend of offerer
C. the person to whom it is made
D. any friend of offeree.
23. Specific performance may be ordered bythe court when
A. the contract is voidable
B. damages are an adequate remedy
C. damages are not an adequate remedy
D. the contract is uncertain.
24. In case of breach of a warranty , the buyer can
A. repudiatethe contract
B claim damages only
C. returnthe goods D. refuse topaythe
price refuse to take delivery of the
goods.
25. Acontingent contract is
A. void
B. voidable
C. valid
D. illegal
26. The court maygrant rescissionwhere the contract is
A. voidable at the option of the plaintiff
B. void
C. unenforceable
D. illegal
27. TheLawofContract inIndia is contained in
A. IndianContract Act 1862
B. IndianContract Act 1962
C. Indian Contract Act 1872
D. IndianContract Act 1972
28. For entering into a contract, a minor is a personwho has not completed the ageof
A.16 years
B.18 years
C.20 years
D.21 years
29. Ǫuantum meruit means
A. a nongratuitous promise
B. an implied promise
C. as much as earned
D. as muchas is paid
30.Aminor entersinto a contract forthe purchase ofcertain necessaries in suchcase
A. he is not personally liable to pay
B. he isliable to pay
C. his estate isliable to pay
D. his guardian is liable to pay
31. An offer may lapse by
A. Revocation
B. Counter Offer
C. Rejection of offer by offeree
D. All of these
32. Ordinarily, a minor's agreement is
A.Void ab initio
B.Voidable
C.Valid
D.Unlawful
33.The threat to commit suicide amounts to
A. Coercion
B. Undue influence
C. Misrepresentation
D. Fraud
34. On the valid performance of the contractual obligations by the parties,
the contract
A. Is discharged
B. Becomes enforceable
C. Becomes void
D. None of these
35.A contingent contract depend on the happening of the future uncertain event can be enforced
when the event
A. Happens
B. Becomes impossible
C. Doesn't happen
D. Either of these
36.Which of the following persons are not competent to contract
A .Minors
B .Persons of unsound mind
C. Persons disqualified by law
D. All of these
37. When the consent of a party is obtained by coercion undue influence, fraud or
misrepresentation, the contract is
A. Void
B. Voidable
C. Valid
D. llegal
39.Where the consent of a party is obtained by misrepresentation, the
contract is A. Valid
B. Void
C. Voidable
D. Illegal
40. A agrees to pay Rs.5 lakhs to B procures an employment for A in Income Tax
Department. This agreement is -
A. Void
B. Valid
C. Voidable
D. Contingent
41.An agreement to do an illegal act ( eg: sharing the earnings ofsmuggling business)
is
A. Valid
B. Void
C. Voidable
D. Contingent
42. Consideration may be
A. Past
B. Present
C. Future
D .All of the above
43. Consent is not said to be free when it is caused by
A. Coercion
B .Undue influence
C. Fraud
D. All of these
44. In case of illegal agreements, the collateral agreements are
A. Void
B. Valid
C. Voidable
D. Any of these
45. Sometimes, a party is entitled to claim compensation in proportion to the work done by
him. It is possible by a suit for
A. Damages
B. Injunction
C. Quantum merit
D .None of these
46. Which of the following statement is true
A. An agreement enforceable by law is a contract
B. An agreement is an accepted proposal
C. Both (a) and (b)
D. None of these
47. As a general rule, an agreement made without consideration is
A .Void
B .Voidable
C .Valid
D. Unlawful
48. A contingent contract dependent on the non happening of a future uncertain event becomes
void when such event
A. Happens
B. Does not become impossible
C. Does not happen
D. Both (a) and (b)
49. When offer is made to a definite person, it is known as
A. General offer
B. Cross offer
C. Counter offer
D. Special offer
50. A public company has been defined in sec
A. 3(1)(iv)
B. 3(1)(i)
C. 3(1)(iii)
D. 3(1)(ii)
FILLINTHEBLANKS
1. An Agreement May Be a Social Agreement or Legal Agreement.
2. Quantum meruit means ‘As much earned or As much as is merited.
3. An Agreement Enforceable by Law Is A contract.
4. Consent Is Said to Be Free When It Is Not Obtained Through Coercion, undue influence, misrepresentations or fraud.
5. An Offer Is a Proposal Made by One Person to Another.
6. The Assent or Agreement of The Offence to The Offer Is Termed as Acceptance.
7. All Contracts are Agreements but all Agreements need not be Contracts.
8. Breach of contract means breaking of the obligation Which contract imposes.
9. When a person is forced by using pressure or threat to enter into a Contract it is known As Coercion.
10. A Contract without consideration is Void.
11. Caveat Emptor means ‘let the buyer beware’.
12. In Agency by rectification a person may act on behalf of another with out his
knowledge and consent.
13. Pledge Is transfer of Bailment Of Goods as Security for the Payment of a debt or
Performance of a Promise.
14. One of the Rights of an Agent Is Right of lien.
15. The Two Parties Involved in Contract Sales are Buyer and Seller.
16. Bailment Means a Delivery Of Goods when the Condition is Satisfied.
17. Contracts Of Indemnity and Guarantee are Essentials of a general Contract.
18. A Surety posses rights against Creditors, the principal debtor and the co-sureties.
19. Contract of sale Refers to a Contract through which the Seller transfers or Agrees to transfer the Property in Goods to the Buyer for a Price.
20. Negotiable instrument is a method of Transferring a Debt from one person to another.
21. An agreement with or by a minor is void.
22. Offer + Acceptance= Agreement.
23. A person making proposal is called Promisor.
24. In Fraud there is an intention to deceive.
25. The person accepting to proposal is called promise.
26. Both the parties have yet to perform their mutual promises is known as Executory Contract.
27. Consent is said to be free when it is not caused by Undue influence.
28. One of the parties has already performed his part of the contract is known as Executed contract.
29. A person who draws the cheque is known as drawer.
30. The person on whom cheque is drawn is termed as Payee.
31. Consideration must move at desire of the Promiser.
32. In fraud there is an intention to deceive.
33. Sales creates right in rem.
34. Public company means a company which is not a private company.
35. Age limit for making contract is 18 years.
36. The place of national commission shall be in Delhi.
37. A Company is a separate legal entity.
38. Right of lien available to the unpaid seller is Particular lien 39.
39. Just-in-person means Personal rights.
40. The sales of goods act Implies to Movable property.
41. Promissory note is un conditional promise to pay.
42. A Contract with consideration is valid.
43. A consideration is a technical term used in the terms of “Quid pro quo”.
44. A Foreign company needs to be incorporated outside India.
45. Full form IDR is Indian Depository Receipts.
46. There are 29 accounting standards.
47. The company act 2013 has Superseded companies act 1956.
48. Promoter stands in a fiduciary relation to the company he floats.
49. An agreement forceable by law is valid.
50. A stipulation essential to the contract is called condition.