Business Law solved MCQs

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1. An agreement enforceable by law is

a. agreement

B. contract

c. offer

d. promise

2. Every promise and every set of promises, forming the consideration for each other is an

a. agreement

B. offer

c. contract

d. acceptance

3. In a contract of indemnity the right of the indemnifier is similar to that of the:

a. debtor

B. creditor

c. surety

d. agent

4. In a contract of indemnity, minimum no of parties are

a. 4

B. 3

c. 2

d. 1

5. The sale of goods act is of:

a. 1903

B. 1923

c. 1930

d. 1932

6. Seller is a person who

a. sells

B. buys

c. debtor

d. transferee

7. Document of title includes

a. business reports

B. railway receipt

c. cash memo

d. email

8. A person coming forward to accept after it has been dishonoured is called:

a. acceptor for honour

B. acceptor for paying

c. payment for honour

d. holder

9. Protest for better security is done for publicity stunt.

a. true

B. false

c. attention

d. fun

10. When an instrument is lost, it is presumed that it was duly stamped

a. true

B. false

c. not inchoate

d. inchoate

11. Which one of the following element is notnecessary for a contract ?

a. Competent parties

B. Reasonable terms and conditions.

c. Free consent

d. Lawful concentration

12. An agreement becomes a contract if :

a. It is by free consent of the parties.

B. Parties are competent.

c. It is enforceable by law.

d. None of the above .

13. In a standardized contract :

a. The individual has no choice but to accept and sign on

B. The individual must be protected in contract.

c. The agreement is without consideration.

d. None of the above.

14. The correct sequence in the formation of a contract is :

a. Offer, acceptance, agreement, consideration.

B. Agreement, consideration, offer,acceptance.

c. Offer , Consideration, acceptance, agreement.

d. Offer,acceptance, consideration, agreement.

15. A sells, by auction to B a horse which A knows to be unsound. A says nothing to B about the horse unsoundness. A does :

a. Fraud

B. Misrepresentation

c. No fraud

d. Undue Influence

16. A petient in a lunatic Asylum who is at intervals of sound mind :

a. May not contract.

B. May contract.

c. May contact during those intervals when he is of sound mind.

d. May contract only after he becomes completely of sound mind .

17. Which is not the correct statement ?

a. If consent is the result of coercion, the agreement is

B. If a party is minor, the agreement is void .

c. If the object of an agreement is unlawful, the agreement is void.

d. If the consideration of an agreement is unlawful, the agreement

18. What is the purpose behind the enactment of Sale of Goods Act, 1930?

a. To define the laws relating to the sale of goods

B. To consolidate and amend the laws relating to the sale of goods

c. To consolidate, amend and define the laws relating to the sale of goods

d. To define and amend the laws relating to the sale of goods

19. Section 2(1) of Sale of Goods Act defines ‘buyer’ as:

a. Person who buys goods and services

B. Person who agrees to buy goods

c. Person who buys or agrees to buy goods

d. Person who buys or agrees to buy goods and services

20. Before the enactment of Sale of Goods Act, the provisions regarding Sale of

a. Indian Contract Act, 1872

B. Indian Registration Act, 1908

c. Transfer of Property Act, 1882

d. Indian Partnership Act, 1932

21. Which of the following cannot be said to be included in the term “goods” defined under section 2(7) of the Sale of Goods

a. Stock

B. Shares

c. Growing crops

d. Actionable claims

22. The voluntary transfer of possession from one person to another is called

a. Transfer

B. change of possession

c. Delivery

d. None of above

23. Which of the following is not the right of an unpaid seller under Sale of Goods Act, 1930:

a. Right of lien on goods for the price while the goods are in possession of seller.

B. Right of stopping the goods in transit, in case of insolvency of buyer

c. Right of resale as limited by the Act

d. Right of withholding delivery where the property in the goods has passed to the buyer

24. Future goods means goods to be manufactured or produced or acquired by the seller

a. In future prescribed time

B. after making of contract

c. before making of contract

d. none of the above

25. Bearer cheques are also known as------ cheques.

a. Crossed

B. General

c. Special

d. Open

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