McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Cost Accounting .
| 51. |
Acceptance takes place as against the proposer, when |
| A. | When the letter of acceptance is posted by the acceptor |
| B. | When the letter of acceptance is received by the proposer |
| C. | When the offeree, writes the letter of acceptance, but doesn't post it |
| D. | All the above |
| Answer» A. When the letter of acceptance is posted by the acceptor | |
| 52. |
An advertisement for sale goods by auction |
| A. | Amounts to an invitation to offer |
| B. | Amounts to an offer to hold such sale |
| C. | Amounts to an implied offer |
| D. | Amount to a general offer |
| Answer» A. Amounts to an invitation to offer | |
| 53. |
Communication of offer is complete when |
| A. | It comes to the knowledge of the offeree |
| B. | It is posted to the offeree |
| C. | When the offeror writes the letter but does not post it |
| D. | None of the above |
| Answer» A. It comes to the knowledge of the offeree | |
| 54. |
Performance of conditions of a proposal is an acceptance to the proposal |
| A. | True |
| B. | False |
| C. | Depends on the facts of the case |
| D. | Partially true and partially false |
| Answer» A. True | |
| 55. |
An acceptance will be revoked at any time before the communication of acceptance is complete against the acceptor, but not afterwards |
| A. | True |
| B. | False |
| C. | Acceptance once given cannot be revoked |
| D. | Acceptance can be revoked at any time |
| Answer» A. True | |
| 56. |
An offer need not be made to a ascertained person |
| A. | True, it can be given to the world at large |
| B. | False, it has to specific |
| C. | May be specific or general |
| D. | Either (a) or (c) |
| Answer» D. Either (a) or (c) | |
| 57. |
An agreement to agree in future upon terms to be settled afterwards between the parties is |
| A. | Valid |
| B. | Not valid |
| C. | Illegal |
| D. | Voidable |
| Answer» B. Not valid | |
| 58. |
Acceptance once given cannot be revoked |
| A. | True |
| B. | False |
| C. | Incomplete information |
| D. | None of the above |
| Answer» A. True | |
| 59. |
A tender and a bid at an auction sale are |
| A. | Not offers |
| B. | Offers |
| C. | Acceptance of the offer |
| D. | Invitation to offer |
| Answer» B. Offers | |
| 60. |
A quotation is |
| A. | Not offer |
| B. | Offer |
| C. | Acceptance of the offer |
| D. | Invitation to offer |
| Answer» D. Invitation to offer | |
| 61. |
A contract is formed when the acceptor |
| A. | has done something to signify his intention |
| B. | makes his mind to do so |
| C. | reads the offer |
| D. | all the above |
| Answer» A. has done something to signify his intention | |
| 62. |
If the offeree does not accept the offer according to the mode prescribed, then |
| A. | The offeror may accept or reject such acceptance |
| B. | The offer lapses automatically |
| C. | It is a counter offer |
| D. | Offeree commits a breach of contract |
| Answer» A. The offeror may accept or reject such acceptance | |
| 63. |
When the mode of acceptance is prescribed in the proposal then |
| A. | It need not be accepted in that manner |
| B. | It should be accepted in that manner |
| C. | No matter how the acceptance is given |
| D. | Acceptance can be given in usual or reasonable manner |
| Answer» B. It should be accepted in that manner | |
| 64. |
A proposal when accepted becomes a |
| A. | Promise |
| B. | Contract |
| C. | Agreement |
| D. | All the above |
| Answer» A. Promise | |
| 65. |
Acceptance takes place when and where the message is received |
| A. | True |
| B. | False |
| C. | Incomplete information |
| D. | None of the above |
| Answer» A. True | |
| 66. |
Mental acceptance is |
| A. | No acceptance at all |
| B. | Valid |
| C. | Binding promise |
| D. | None of the above |
| Answer» A. No acceptance at all | |
| 67. |
The term 'proposal' used in the Indian Contract Act is synonymous with the term |
| A. | Contract |
| B. | Offer |
| C. | Agreement |
| D. | None of these |
| Answer» B. Offer | |
| 68. |
The term 'Proposal or offer' has been defined in section |
| A. | Section 2(a) |
| B. | Section 2(b) |
| C. | Section 2(c) |
| D. | Section 2(d) |
| Answer» A. Section 2(a) | |
| 69. |
A bid at an auction sale is |
| A. | An implied offer to buy |
| B. | An express offer to buy |
| C. | An Invitation to offer to buy |
| D. | An invitation to come to bid |
| Answer» B. An express offer to buy | |
| 70. |
A price list hanging outside the shop is meant for |
| A. | Attracting customers to buy the same in the mentioned price |
| B. | An advertisement of goods and meaningless from legal point of view |
| C. | An offer by the owner of the shop |
| D. | An invitation to customers to buy something |
| Answer» B. An advertisement of goods and meaningless from legal point of view | |
| 71. |
The communication of a proposal is complete when it comes to |
| A. | The knowledge of that person |
| B. | The object of the offer |
| C. | The intention with which offer is made |
| D. | The facts underlying the offer |
| Answer» A. The knowledge of that person | |
| 72. |
When the offers made by two persons to each other containing similar terms of bargain cross each other in post, they are known as |
| A. | Cross offers |
| B. | Implied offers |
| C. | Direct offers |
| D. | Expressed offers |
| Answer» A. Cross offers | |
| 73. |
General offers open for world at large can be accepted by |
| A. | Any person in the world |
| B. | Any person within the country |
| C. | Any person who complies with the conditions of the offer |
| D. | Any person who reads the advertisement |
| Answer» A. Any person in the world | |
| 74. |
When the proposal or acceptance is made other wise than words, the promise is said to be |
| A. | Expressed |
| B. | Implied |
| C. | Accepted |
| D. | Rejected |
| Answer» B. Implied | |
| 75. |
In order to convert a proposal into a promise, the acceptance must |
| A. | Be clear |
| B. | Be absolute |
| C. | Be unqualified |
| D. | Be absolute and unqualified |
| Answer» D. Be absolute and unqualified | |
| 76. |
The communication of an acceptance is com plete as against the acceptor |
| A. | When it is posted by him |
| B. | When it is put in the course of transmission |
| C. | When it comes to the knowledge of the proposer |
| D. | None of these |
| Answer» C. When it comes to the knowledge of the proposer | |
| 77. |
If the communication is made by an unauthorised person, it does not result in a/an |
| A. | Contract |
| B. | Agreement |
| C. | Offer |
| D. | Consideration |
| Answer» B. Agreement | |
| 78. |
Which section, of Indian Contract Act defines "performance of the conditions of a proposal is an acceptance of the proposal"? |
| A. | Section 6 |
| B. | Section 7 |
| C. | Section 8 |
| D. | Section 9 |
| Answer» C. Section 8 | |
| 79. |
Various modes of revocation of offer have been described in |
| A. | Section 4 |
| B. | Section 5 |
| C. | Section 6 |
| D. | Section 9 |
| Answer» C. Section 6 | |
| 80. |
Which section of Law of Contract defines, "A proposal may be revoked at anytime, before the communication of its acceptance is complete as against the proposer, but not afterwards." |
| A. | Section 5 |
| B. | Section 4 |
| C. | Section 6 |
| D. | Section 7 |
| Answer» A. Section 5 | |
| 81. |
According to Indian Contract Act, a promise is |
| A. | A communication of intention to do something |
| B. | A proposal which has been accepted |
| C. | A gentleman's word to do something |
| D. | A statement on oath |
| Answer» B. A proposal which has been accepted | |
| 82. |
When parties enter into a contract on telephone the contract becomes complete at the place where acceptance is heard by the proposer. This has been provided |
| A. | In no section of Indian Contract Act but so decided by the Supreme Court |
| B. | In section - 2 |
| C. | In section – 3 |
| D. | In section – 4 |
| Answer» A. In no section of Indian Contract Act but so decided by the Supreme Court | |
| 83. |
An advertisement inviting tender is |
| A. | An invitation for negotiations |
| B. | A proposal |
| C. | An invitation for proposal |
| D. | A promise |
| Answer» C. An invitation for proposal | |
| 84. |
Goods displayed in a shop window with a price label will amount to |
| A. | Offer |
| B. | Invitation to offer |
| C. | Acceptance of offer |
| D. | None of these |
| Answer» B. Invitation to offer | |
| 85. |
A promisee is |
| A. | A person who makes a promise |
| B. | A person who monitors the statement of intentions of two parties |
| C. | A person to whom the promise is made |
| D. | None of these |
| Answer» C. A person to whom the promise is made | |
| 86. |
The person making the proposal is called |
| A. | Promisor |
| B. | Promise |
| C. | Participator |
| D. | None of these |
| Answer» A. Promisor | |
| 87. |
A mere passing utterance will |
| A. | Amount to a proposal |
| B. | Not amount to a proposal |
| C. | Amount to a promise |
| D. | Amount to offer |
| Answer» B. Not amount to a proposal | |
| 88. |
Which of the following is an invitation for offer? |
| A. | A tender to supply goods at a certain time |
| B. | A request for a loan |
| C. | Bids in an auction sale |
| D. | A catalogue of goods for sale |
| Answer» D. A catalogue of goods for sale | |
| 89. |
Which of the following is an offer? |
| A. | The mere quotation of terms by trader |
| B. | The quotation of the lowest price in answer to enquiry |
| C. | Advertisement for sale or auction of goods |
| D. | Bids in an auction sale |
| Answer» D. Bids in an auction sale | |
| 90. |
Acceptance in ignorance of the offer is |
| A. | Valid |
| B. | Invalid |
| C. | Void |
| D. | Voidable |
| Answer» B. Invalid | |
| 91. |
An offer or its acceptance or both may be made |
| A. | By words |
| B. | By conduct |
| C. | Either by words or by conduct |
| D. | None of these |
| Answer» C. Either by words or by conduct | |
| 92. |
When a proposal and its acceptance are made by words, they are known as |
| A. | Expressed |
| B. | Implied |
| C. | Accepted |
| D. | Admitted |
| Answer» A. Expressed | |
| 93. |
In cases, where a proposal and its acceptance are not made by words and are inferred from the conduct of the parties. They are known as |
| A. | Implied offers |
| B. | Expressed offers |
| C. | Specific offers |
| D. | General offers |
| Answer» A. Implied offers | |
| 94. |
Express offers and acceptances may be proved by the agreement between the parties but implied offers can be proved only by |
| A. | The words |
| B. | The conduct |
| C. | Circumstantial evidence |
| D. | Both (b)&(c) |
| Answer» D. Both (b)&(c) | |
| 95. |
An offer which is allowed to remain offer for acceptance over a period of time is known as a |
| A. | Standing offer |
| B. | Specific offer |
| C. | Express offer |
| D. | Implied offer |
| Answer» A. Standing offer | |
| 96. |
Voidable contract is one |
| A. | Which is lawful |
| B. | Which is invalid |
| C. | Which is valid so long it is not avoided by the party entitled to do so |
| D. | None of these |
| Answer» C. Which is valid so long it is not avoided by the party entitled to do so | |
| 97. |
A contract is said to be executed when it has been performed wholly on |
| A. | One side |
| B. | Two sides |
| C. | More than two sides |
| D. | None of these |
| Answer» B. Two sides | |
| 98. |
When the contract is perfectly valid in its substance but which cannot be enforced because of certain technical defects. This is called a |
| A. | Unilateral contract |
| B. | Bilateral contract |
| C. | Unenforceable contract |
| D. | Void contract |
| Answer» C. Unenforceable contract | |
| 99. |
The difference between an advertisement for sale and a proposal is |
| A. | No difference at all |
| B. | That a proposal becomes a promise as soon as the party to whom it is made accepts it but an advertisement does not |
| C. | Every case will be viewed according to the circumstances |
| D. | None of these |
| Answer» B. That a proposal becomes a promise as soon as the party to whom it is made accepts it but an advertisement does not | |
| 100. |
In a Book depot a catalogue of book enlisting the price of each book and specifying the place where the particular book is available is |
| A. | An invitation to offer |
| B. | An offer |
| C. | An invitation to visit the book shop |
| D. | None of these |
| Answer» A. An invitation to offer | |
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