McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Cost Accounting .
| 101. |
A catalogue of the goods of a company for sale ….. a series of offers but only an invitation for offers. |
| A. | Is |
| B. | Is not |
| C. | In normal cases is |
| D. | In normal cases is not |
| Answer» B. Is not | |
| 102. |
Is telegraphing lowest price on request a mere invitation for an offer? |
| A. | Yes |
| B. | No |
| C. | Not in normal cases |
| D. | None of these |
| Answer» A. Yes | |
| 103. |
Is the Is promise defined under clause ………the same thing as an agreement which is defined under clause (e) of section 2 |
| A. | (a) ; (b) |
| B. | ; (c) |
| C. | ; (d) |
| Answer» B. ; (c) | |
| 104. |
After a proposal has been accepted and there is promise, can the promisor resile from the promise? |
| A. | Yes, |
| B. | No |
| C. | Depends |
| D. | Any of the above |
| Answer» B. No | |
| 105. |
Can there be an acceptance of an offer which has not come to the knowledge of the offeree? |
| A. | Yes |
| B. | No |
| C. | Depends |
| D. | Any of the above |
| Answer» B. No | |
| 106. |
Can the mere writing on bills of medical practitioners that interest at one per cent, per mensum be charged, amount to a contract? |
| A. | Yes |
| B. | No |
| C. | Depends |
| D. | None of the above |
| Answer» B. No | |
| 107. |
Can a mere mental resolve to make an offer unless such intention is also communicated to the other party has agreed to make such statement? |
| A. | Yes |
| B. | No |
| C. | In normal cases |
| D. | Not in normal cases |
| Answer» B. No | |
| 108. |
In the absence of any express or implied directions from the offeror to the contrary, can an offer be accepted by a letter? |
| A. | Yes |
| B. | No |
| C. | Depends |
| D. | None of the above |
| Answer» A. Yes | |
| 109. |
Should both offer and acceptance be absolute, unqualified and unconditional? |
| A. | Yes |
| B. | No |
| C. | Not in normal cases |
| D. | Depends |
| Answer» B. No | |
| 110. |
Can a letter of acceptance to a Proposer, not correctly addressed, although posted, be said to have been "Put in a course of transaction" to him? |
| A. | Yes |
| B. | No |
| C. | Depends |
| D. | Any of the above |
| Answer» B. No | |
| 111. |
After a transaction has ripened into a contract, does it require the consent of both parties to revoke or modify it? |
| A. | Yes |
| B. | No |
| C. | Not in normal cases |
| D. | Depends |
| Answer» A. Yes | |
| 112. |
An offer does not lapse if the |
| A. | offeror dies before acceptance |
| B. | The offeree dies before acceptance |
| C. | Acceptance is made by the offeree in ignorance of the death of the offeror |
| D. | Acceptance is made by the offeree with knowledge of the death of the offeror |
| Answer» C. Acceptance is made by the offeree in ignorance of the death of the offeror | |
| 113. |
A telephonic acceptance is complete when the offer is |
| A. | spoken into the telephone |
| B. | heard but not understood by the offeror |
| C. | heard and understood by the offeror |
| D. | is received, heard and understood by some person in the offeror's house |
| Answer» C. heard and understood by the offeror | |
| 114. |
When goods are displayed in a show-window bearing price-tags, it indicates |
| A. | Offer to sell goods at prices mentioned on the price tags |
| B. | an invitation to make an offer |
| C. | an advertisement |
| D. | an announcement |
| Answer» B. an invitation to make an offer | |
| 115. |
Which one of the following statements about a valid acceptance of an offer is NOT correct? |
| A. | Acceptance should be absolute and unqualified |
| B. | Acceptance should be in the prescribed manner |
| C. | Acceptance should be made while the offer is subsisting |
| D. | Acceptance should in all cases be through registered post |
| Answer» D. Acceptance should in all cases be through registered post | |
| 116. |
A counter offer is |
| A. | An invitation to treat |
| B. | An acceptance of the offer |
| C. | A rejection of the original offer |
| D. | A bargain |
| Answer» C. A rejection of the original offer | |
| 117. |
Consider the following statements: 1. There is no difference between the English law and Indian law with regard to acceptance through post. 2. Both under the English law and the Indian law a contract is concluded when the letter of acceptance is posted 3. Under the Indian law when the letter of acceptance is posted it is complete only as against the proposer. 4. It is complete only as against the proposer. Which of the above statements is/are correct? |
| A. | 1 and 2 |
| B. | 2 alone |
| C. | 3 alone |
| D. | None |
| Answer» C. 3 alone | |
| 118. |
For binding contract both the parties to the contract must |
| A. | Agree with each other |
| B. | Stipulate their individual offer and consideration |
| C. | Agree upon the same thing in the same sense |
| D. | Put the offer and counter offers |
| Answer» C. Agree upon the same thing in the same sense | |
| 119. |
Where a particular mode of communication of acceptance is not prescribed and the parties are not in each other's presence, the most authentic mode of communication of acceptance is the |
| A. | Telephone |
| B. | Telegraph |
| C. | Wireless |
| D. | Letter |
| Answer» D. Letter | |
| 120. |
When a person without expressing his final willingness, proposes certain terms on which he is willing to negotiate, he makes |
| A. | Counter offer |
| B. | Standing offer |
| C. | Offer |
| D. | Invitation to treat |
| Answer» D. Invitation to treat | |
| 121. |
The communication of acceptance through telephone is regarded as complete when |
| A. | Acceptance is spoken on phone |
| B. | Acceptance comes to the knowledge of party proposing |
| C. | Acceptance is put in course of transmission |
| D. | Acceptor has done whatever is required to be done by him |
| Answer» B. Acceptance comes to the knowledge of party proposing | |
| 122. |
The term consensus ad-idem means |
| A. | Formation of the contract |
| B. | Reaching of agreement |
| C. | Meeting of minds |
| D. | General consensus |
| Answer» C. Meeting of minds | |
| 123. |
Which one of the following has the correct sequence? |
| A. | Offer, acceptance, contract, consideration |
| B. | Offer, acceptance, consideration, contract |
| C. | Contract, acceptance, consideration, offer |
| D. | Offer, consideration, acceptance, contract |
| Answer» B. Offer, acceptance, consideration, contract | |
| 124. |
When a person signifies his assent to a proposal made to him to refrain from doing something, the resultant transaction is known as |
| A. | Promise |
| B. | Agreement |
| C. | Contract |
| D. | Understanding |
| Answer» A. Promise | |
| 125. |
A notice in the newspapers inviting tenders is |
| A. | A proposal |
| B. | An invitation to proposal |
| C. | A promise |
| D. | An invitation for negotiation |
| Answer» B. An invitation to proposal | |
| 126. |
Which one of the following statements is true? |
| A. | Offer and acceptance are revocable |
| B. | Offer and acceptance are irrevocable |
| C. | An offer can be revoked but acceptance cannot |
| D. | An offer cannot be revoked but acceptance can be |
| Answer» C. An offer can be revoked but acceptance cannot | |
| 127. |
The doctrine of privity of contract is laid down in the case of |
| A. | Carlill v. Carbolic Smoke Ball & Co. |
| B. | Balfour v. Balfour |
| C. | Harvey v. Facey |
| D. | Dunlop Pneumatic Tyre Co. Ltd. v. Self ridge & Co. |
| Answer» D. Dunlop Pneumatic Tyre Co. Ltd. v. Self ridge & Co. | |
| 128. |
Which one of the following is not the legal requirement of valid offer? |
| A. | It must be communicated to the offeree |
| B. | It must express offeror' final willingness |
| C. | It must be made to a specific person and not to public at large |
| D. | It must be made with a view to obtain offeree' assent |
| Answer» C. It must be made to a specific person and not to public at large | |
| 129. |
Sections 4 and 5 of the Indian Contract Act provide for communication of offer and acceptance and revocation thereof. In this relation, which one of the following is not correct? |
| A. | Communication of offer is complete when it reaches the offeree |
| B. | Revocation of acceptance is complete when acceptance is posted in favour of the proposer |
| C. | A Proposal may by revoked any time before communication of acceptance |
| D. | Acceptance may be revoked any time before communication of acceptance |
| Answer» D. Acceptance may be revoked any time before communication of acceptance | |
| 130. |
What can a catalogue of books, listing price of each book and specifying the place where the listed books are available be termed as? |
| A. | An offer |
| B. | An obligation to sell book |
| C. | An invitation to offer |
| D. | A promise to make available the books at the listed |
| Answer» C. An invitation to offer | |
| 131. |
Consider the following statements: 1. General offer require the communication of acceptance. 2. All contracts are agreements 3. All agreements are contracts 4. All illegal agreements are void agreements Which of the statements given above are correct? |
| A. | 2 and 4 |
| B. | 1, 3 and 4 |
| C. | 1 and 2 |
| D. | 2, 3 and 4 |
| Answer» A. 2 and 4 | |
| 132. |
Consideration is |
| A. | Doing or abstaining from doing something at the desire of promisor |
| B. | Essential condition of a contract |
| C. | Element of exchange in a contract |
| D. | All the above |
| Answer» D. All the above | |
| 133. |
If there is no consideration, then |
| A. | The agreement is void |
| B. | The agreement is valid |
| C. | The agreement is illegal |
| D. | The agreement is voidable |
| Answer» A. The agreement is void | |
| 134. |
Consideration must be |
| A. | Adequate |
| B. | Superficial |
| C. | Unlawful |
| D. | Something |
| Answer» D. Something | |
| 135. |
Which section of Indian Contract Act defines consideration? |
| A. | Section 2(a) |
| B. | Section 2(b) |
| C. | Section 2(c) |
| D. | Section 2(d) |
| Answer» D. Section 2(d) | |
| 136. |
A valid consideration includes, |
| A. | Executed or executory consideration |
| B. | Past consideration ; (c) |
| C. | Inadequate consideration |
| D. | All of these |
| Answer» D. All of these | |
| 137. |
A valid consideration has the following essential elements : |
| A. | It must move at the desire of the promisor |
| B. | Consideration may be supplied by the promisee or any other person |
| C. | Consideration may be past, present or future |
| D. | All the above |
| Answer» D. All the above | |
| 138. |
Consideration contemplated under Indian law is, |
| A. | Past consideration only |
| B. | Present consideration only |
| C. | Past, present or future consideration |
| D. | Monetary consideration only |
| Answer» C. Past, present or future consideration | |
| 139. |
An agreement without consideration is void under |
| A. | Sec. 25(1) of the Contract Act |
| B. | Sec. 25(3) of the Contract Act |
| C. | Sec. 25(2) of the Contract Act |
| D. | None of the above clauses in sec. 25 |
| Answer» D. None of the above clauses in sec. 25 | |
| 140. |
The exceptions to the doctrine of Privity of Contract include |
| A. | Family settlements |
| B. | Agreements |
| C. | Assignment |
| D. | All of these |
| Answer» D. All of these | |
| 141. |
The latin term "quid pro quo" refers to : |
| A. | Something in return |
| B. | Stranger to consideration |
| C. | Something sensible |
| D. | Something valuable |
| Answer» A. Something in return | |
| 142. |
A stranger to a consideration can file a suit and such a stranger is |
| A. | A person who is not a party to the contract |
| B. | A person who has given consideration |
| C. | A person who has not given consideration |
| D. | A person who is a party to the contract but not given consideration |
| Answer» D. A person who is a party to the contract but not given consideration | |
| 143. |
Consideration must move at the desire of: |
| A. | Promisor |
| B. | Promisee |
| C. | Third party |
| D. | Any other person |
| Answer» A. Promisor | |
| 144. |
Consideration may be given by |
| A. | The promisor |
| B. | The promise |
| C. | Any other person |
| D. | The promisee or any other person |
| Answer» D. The promisee or any other person | |
| 145. |
A promise to pay a time-barred debt must be : |
| A. | Oral |
| B. | Written and signed |
| C. | Registered |
| D. | Written and registered |
| Answer» B. Written and signed | |
| 146. |
Which are of the following statements is false. |
| A. | Promisee or any other person may supply consideration |
| B. | Past consideration is good Consideration |
| C. | Consideration need not be adequate |
| D. | Consideration should be adequate |
| Answer» D. Consideration should be adequate | |
| 147. |
Which of the following statements is not true |
| A. | Consideration must be real & not illusory |
| B. | Consideration may be inadequate |
| C. | Past consideration is no consideration |
| D. | Consideration should not consist of a legal obligation |
| Answer» C. Past consideration is no consideration | |
| 148. |
The exceptions to the rule A stranger to a con tract cannot sue are |
| A. | Beneficiaries in the case of trust |
| B. | Family settlement |
| C. | Assignment of contract |
| D. | All the above |
| Answer» D. All the above | |
| 149. |
A stranger to a consideration |
| A. | Can file a suit |
| B. | Cannot file a suit |
| C. | Can file, only with consent of court |
| D. | Is similar to stranger to a contract |
| Answer» A. Can file a suit | |
| 150. |
A stranger to a contract |
| A. | Can file a suit |
| B. | Can file a suit only with permission of court |
| C. | Can file a suit, if contract is in writing |
| D. | Cannot file a suit |
| Answer» D. Cannot file a suit | |
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