McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Cost Accounting .
| 201. |
The test of……….. is whether the person is capable of understanding the business concerned and its implications. |
| A. | Incapacity to contract |
| B. | Minority |
| C. | Soundness of mind |
| D. | Reciprocity |
| Answer» C. Soundness of mind | |
| 202. |
……..is the most extreme form of mental unsoundness? |
| A. | Lunacy |
| B. | Incapacity |
| C. | Minority |
| D. | Idiocy |
| Answer» D. Idiocy | |
| 203. |
The onus of proving insanity is on the ……………. |
| A. | Prosecutor |
| B. | State |
| C. | Accused |
| D. | On person who alleges it |
| Answer» D. On person who alleges it | |
| 204. |
Which of the following statement is incorrect: |
| A. | A parda-nashin women can enter into contract if it is established that the con tract was explained to her and she under stood it |
| B. | A parda-nashin women is open to undue influence and therefore cannot enter into contract |
| C. | A parda-nashin women is of unsound mind |
| D. | A parda-nashin women may be married or single |
| Answer» C. A parda-nashin women is of unsound mind | |
| 205. |
M, a minor, misrepresenting that he is a major induces Z to enter into a contract |
| A. | M is a liable on the contract |
| B. | M is a not liable on the contract |
| C. | M is liable to pay compensation |
| D. | M is liable to the contract on attending majority |
| Answer» B. M is a not liable on the contract | |
| 206. |
Select the false statement |
| A. | There can be no ratification of contract entered by a minor during his minority, even after becoming major |
| B. | Restitution of benefit is allowed in case of a minor |
| C. | Agreement with a minor is void ab initio |
| D. | The rule of estoppel cannot be applied against a minor |
| Answer» B. Restitution of benefit is allowed in case of a minor | |
| 207. |
Which of the following types of persons are not disqualified from contracting? |
| A. | Foreign Sovereigns |
| B. | Alien Enemy |
| C. | Convicts |
| D. | None |
| Answer» D. None | |
| 208. |
Which of the following person do not fall under the category of persons of unsound mind? |
| A. | Drunkards |
| B. | Lunatics |
| C. | Idiots |
| D. | Blind Person |
| Answer» D. Blind Person | |
| 209. |
If there is no consent the agreement is: |
| A. | Void |
| B. | Voidable |
| C. | Illegal |
| D. | Valid |
| Answer» A. Void | |
| 210. |
If consent in not free due to coercion, undue influence, fraud, and misrepresentation then the agreement is: |
| A. | Void |
| B. | Voidable |
| C. | Illegal |
| D. | Valid |
| Answer» B. Voidable | |
| 211. |
If the agreement is made by obtaining consent by doing an act forbidden by the Indian Penal Code, the agreement would be caused by: |
| A. | Coercion |
| B. | Fraud |
| C. | Misrepresentation |
| D. | Undue influence |
| Answer» A. Coercion | |
| 212. |
A buys an article thinking that it is worth ` 100 when in fact it is worth only ` 50. There has been no misrepresentation on the part of the seller. The contract is: |
| A. | Valid |
| B. | Void |
| C. | Voidable |
| D. | Unenforceable |
| Answer» A. Valid | |
| 213. |
Where a person is in a position to dominate the will of another person and uses that position to obtain on unfair advantage it is called: |
| A. | Fraud |
| B. | Coercion |
| C. | Undue influence |
| D. | Misrepresentation |
| Answer» C. Undue influence | |
| 214. |
An agreement caused by unilateral mistake of fact is: |
| A. | Void |
| B. | Voidable |
| C. | Illegal |
| D. | Valid |
| Answer» D. Valid | |
| 215. |
Unlawfully detaining or threatening to detain any property, to the prejudice of any person making him to enter into an agreement amounts to: |
| A. | Threat |
| B. | Coercion |
| C. | Undue influence |
| D. | Misappropriation |
| Answer» B. Coercion | |
| 216. |
An agreement made under mistake of fact, by both the parties, forming the essential subject matter of the agreement is: |
| A. | Void |
| B. | Voidable |
| C. | Valid |
| D. | Unenforceable |
| Answer» A. Void | |
| 217. |
"Threatening to commit certain acts forbidden by Indian Penal Code" is associated with which one of the following? |
| A. | Misrepresentation |
| B. | Fraud |
| C. | Coercion |
| D. | Unenforceable |
| Answer» C. Coercion | |
| 218. |
"Active concealment of fact" is associated with which one of the following? |
| A. | Misrepresentation |
| B. | Undue influence |
| C. | Fraud |
| D. | Mistake |
| Answer» C. Fraud | |
| 219. |
Lending money to a borrower, at high rate of interest, when the money market is tight renders the agreement of loan: |
| A. | Void |
| B. | Valid |
| C. | Voidable |
| D. | Illegal |
| Answer» B. Valid | |
| 220. |
When a person, who is in dominating position, obtains the consent of the other by exercising his influence on the other, the consent is said to be obtained by: |
| A. | Fraud |
| B. | Intimidation |
| C. | Coercion |
| D. | Undue influence |
| Answer» D. Undue influence | |
| 221. |
An officer enters into a contract with his subordinate to sell his (subordinate's) house at a lower price than the market price. The subordinate may challenge the contract on the ground of |
| A. | Coercion |
| B. | Undue influence |
| C. | Mistake |
| D. | Misrepresentation |
| Answer» B. Undue influence | |
| 222. |
With regard to the contractual capacity of a person of unsound mind, which one of the following statements is most appropriate? |
| A. | A person of unsound mind can never enter into a contract |
| B. | A person of unsound mind can enter into a contract |
| C. | A person who is usually of unsound mind can contract when he is, at the time of entering into a contract, of sound mind |
| D. | A person who is occasionally of unsound mind can contract although at the time of making the |
| Answer» C. A person who is usually of unsound mind can contract when he is, at the time of entering into a contract, of sound mind | |
| 223. |
While obtaining the consent of the promisee, keeping silence by the promisor when he has a duty to speak about the material facts, amounts to consent obtained by: |
| A. | Coercion |
| B. | Misrepresentation |
| C. | Mistake |
| D. | Fraud |
| Answer» D. Fraud | |
| 224. |
'A' threatened to commit suicide if his wife did not execute a sale deed in favour of this brother. The wife executed the sale deed. This transaction is: |
| A. | Voidable due to under influence |
| B. | Voidable due to coercion |
| C. | Void being immoral |
| D. | Void being forbidden by law |
| Answer» B. Voidable due to coercion | |
| 225. |
A contract which is vitiated by undue influence is declared as which one of the following by the Indian Contract Act? |
| A. | Invalid |
| B. | Void |
| C. | Illegal |
| D. | Voidable |
| Answer» D. Voidable | |
| 226. |
Consider the following: 1. Active concealment of fact. 2. Promise made without any intention of performing it. 3. Breach of duty which gains an advantage to the person committing it. 4. Inducing mistake as to subject matter. Which of the above amount to fraud? |
| A. | 1 and 2 |
| B. | 2 and 3 |
| C. | 3 and 4 |
| D. | 1 and 4 |
| Answer» A. 1 and 2 | |
| 227. |
Coercion is defined in which section of the Indian Contract Act? |
| A. | Section 15 |
| B. | Section 16 |
| C. | Section 17 |
| D. | Section 18 |
| Answer» A. Section 15 | |
| 228. |
A threatens to shoot B, if B does not agree to sell his property to A at a stated price. B's consent in this case has been obtained by |
| A. | Fraud |
| B. | Undue influence |
| C. | Coercion |
| D. | None |
| Answer» C. Coercion | |
| 229. |
What does Section 17 of the Indian Contract Act define? |
| A. | Coercion |
| B. | Undue influence |
| C. | Fraud |
| D. | Mistake |
| Answer» C. Fraud | |
| 230. |
If A unlawfully detains B's son in order to coerce B to enter into the agreement, the case would be covered within: |
| A. | Section 10 |
| B. | Section 14 |
| C. | Section 15 |
| D. | Section 16 |
| Answer» C. Section 15 | |
| 231. |
Factors vitiating consent are: |
| A. | Coercion, Undue influence |
| B. | Fraud, Misrepresentation |
| C. | Mistake |
| D. | All of these |
| Answer» D. All of these | |
| 232. |
A master asks his servant to sell his cycle to him at less than the market price. This contract can be avoided by the servant on grounds of: |
| A. | Coercion |
| B. | Undue influence |
| C. | Fraud |
| D. | Mistake |
| Answer» B. Undue influence | |
| 233. |
When the consent of a party to the contract has been obtained by fraud, in such a case the contract is: |
| A. | Void |
| B. | Voidable |
| C. | Unenforceable |
| D. | None of these |
| Answer» B. Voidable | |
| 234. |
A, intending to deceive B, falsely represents that five hundred mounds of Indigo are made annually at A's factory and, thereby, induces B to buy the factory. The contract is |
| A. | Voidable |
| B. | Void |
| C. | Unenforceable |
| D. | None of these |
| Answer» A. Voidable | |
| 235. |
If A sells, by auction to B a horse which A knows to be unsound and A says nothing to B about the horse's unsoundness, this amounts to: |
| A. | Fraud |
| B. | Not fraud |
| C. | Unlawful |
| D. | Illegal |
| Answer» B. Not fraud | |
| 236. |
When there is duty to speak, keeping silence is: |
| A. | Fraud |
| B. | Undue influence |
| C. | Coercion |
| D. | None of these |
| Answer» A. Fraud | |
| 237. |
Silence is fraud when silence is, in itself equivalent to speech. This statement is: |
| A. | True |
| B. | False |
| C. | Untrue in certain cases |
| D. | None of these |
| Answer» A. True | |
| 238. |
When the person making a false statement believes the statement to be true and does not intend to mislead the other party to the contract it is known as: |
| A. | Free consent |
| B. | Misrepresentation |
| C. | Fraud |
| D. | None of these |
| Answer» B. Misrepresentation | |
| 239. |
Misrepresentation means: |
| A. | Unwarranted assertion |
| B. | Any breach of duty without an intent to deceive |
| C. | Innocent mistake |
| D. | All the above |
| Answer» D. All the above | |
| 240. |
If a party stands in a fiduciary relation to the other: |
| A. | He cannot dominate |
| B. | He can dominate the will of another |
| C. | The trust should be maintained |
| D. | None of these |
| Answer» B. He can dominate the will of another | |
| 241. |
A person is deemed to be in a position to dominate the will of another if he: |
| A. | Holds real or apparent authority |
| B. | Stands in a fiduciary relationship |
| C. | Both (a) and (b) |
| D. | Either (a) or (b) |
| Answer» C. Both (a) and (b) | |
| 242. |
If both the parties to a contract believe in the existence of a subject, which infact does not exist, the agreement would be |
| A. | Unenforceable |
| B. | Void |
| C. | Voidable |
| D. | None of these |
| Answer» B. Void | |
| 243. |
For a valid contract |
| A. | Both the parties should have given their consent |
| B. | The consent should be free |
| C. | Both (a) and (b) |
| D. | Either (a) or (b) |
| Answer» C. Both (a) and (b) | |
| 244. |
When both the parties to an agreement are under a mistake as to a matter of fact essential to an agreement, the agreement is: |
| A. | Void |
| B. | Valid |
| C. | Voidable |
| D. | Illegal |
| Answer» A. Void | |
| 245. |
In Indian Contract Act, the term consensus ad idem means |
| A. | Parties under a mistake |
| B. | Parties under the free consent |
| C. | Parties agreeing upon the same thing in same sense |
| D. | None of these |
| Answer» C. Parties agreeing upon the same thing in same sense | |
| 246. |
To prove undue influence, the plaintiff has to prove that: |
| A. | The relations, subsisting between the parties are such that the defendant was in a position to dominate the will of the plaintiff |
| B. | The defendant used that position to obtain an unfair advantage from the plaintiff |
| C. | Both (a) and (b) |
| D. | None of these |
| Answer» C. Both (a) and (b) | |
| 247. |
The validity of contract is not affected by |
| A. | Mistake of fact |
| B. | Mistake of Indian law |
| C. | Misrepresentation |
| D. | Fraud |
| Answer» B. Mistake of Indian law | |
| 248. |
Error in causa means: |
| A. | Absence of consent |
| B. | Absence of free consent |
| C. | Presence of mistake |
| D. | Absence of mistake |
| Answer» B. Absence of free consent | |
| 249. |
Error in consensus means: |
| A. | Absence of consent |
| B. | Absence of free consent |
| C. | Presence of mistake |
| D. | Absence of mistake |
| Answer» A. Absence of consent | |
| 250. |
Unlawful agreements comprise |
| A. | Illegal agreements |
| B. | Immoral agreements only |
| C. | Agreements opposed to public policy only |
| D. | All the agreements mentioned above |
| Answer» A. Illegal agreements | |
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