McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) , Bachelor of Financial Markets (B F M) , Union Public Service Commission (UPSC) , Indian Administrative Service (IAS) , Common Law Admission Test (CLAT) .
1. |
An agreement enforceable by law is |
A. | agreement |
B. | contract |
C. | offer |
D. | promise |
Answer» B. contract |
2. |
Every promise and every set of promises, forming the consideration for each other is an |
A. | agreement |
B. | offer |
C. | contract |
D. | acceptance |
Answer» A. agreement |
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 |
Answer» C. surety |
4. |
In a contract of indemnity, minimum no of parties are |
A. | 4 |
B. | 3 |
C. | 2 |
D. | 1 |
Answer» C. 2 |
5. |
The sale of goods act is of: |
A. | 1903 |
B. | 1923 |
C. | 1930 |
D. | 1932 |
Answer» C. 1930 |
6. |
Seller is a person who |
A. | sells |
B. | buys |
C. | debtor |
D. | transferee |
Answer» A. sells |
7. |
Document of title includes |
A. | business reports |
B. | railway receipt |
C. | cash memo |
D. | |
Answer» B. railway receipt |
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 |
Answer» A. acceptor for honour |
9. |
Protest for better security is done for publicity stunt. |
A. | true |
B. | false |
C. | attention |
D. | fun |
Answer» B. false |
10. |
When an instrument is lost, it is presumed that it was duly stamped |
A. | true |
B. | false |
C. | not inchoate |
D. | inchoate |
Answer» A. true |
11. |
Which one of the following element is not necessary for a contract ? |
A. | Competent parties |
B. | Reasonable terms and conditions. |
C. | Free consent |
D. | Lawful concentration |
Answer» B. Reasonable terms and conditions. |
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 . |
Answer» C. It is enforceable by law. |
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. |
Answer» A. The individual has no choice but to accept and sign on |
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. |
Answer» 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 |
Answer» C. No fraud |
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 . |
Answer» C. May contact during those intervals when he is 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 |
Answer» A. If consent is the result of coercion, the agreement is |
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 |
Answer» 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 |
Answer» C. Person who buys or agrees to buy goods |
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 |
Answer» A. Indian Contract Act, 1872 |
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 |
Answer» 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 |
Answer» C. Delivery |
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 |
Answer» 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 |
Answer» B. after making of contract |
25. |
Bearer cheques are also known as------ cheques. |
A. | Crossed |
B. | General |
C. | Special |
D. | Open |
Answer» D. Open |
26. |
Which of the following is not a negotiable instrument |
A. | Bill of exchange and cheque |
B. | Postal Order & Currency note |
C. | Promissory note and cheque |
D. | Promissory note & Bill of exchange |
Answer» B. Postal Order & Currency note |
27. |
Features of Negotiable instruments are - |
A. | Written and signed |
B. | Recovery |
C. | Freely transferable |
D. | All of the above |
Answer» D. All of the above |
28. |
Holder in due course means any person- |
A. | Drawing the instrument |
B. | who for consideration became the possession of promissory note |
C. | to whom order the money is directed to paid |
D. | none of the Above |
Answer» B. who for consideration became the possession of promissory note |
29. |
Cheque can be of types and crossing of cheques can be of types. |
A. | three, two |
B. | two, two |
C. | two, three |
D. | three, three |
Answer» B. two, two |
30. |
What are the limits of number of members in a Private Company? |
A. | Fifty |
B. | Seven |
C. | Twenty |
D. | Two hundred |
Answer» D. Two hundred |
31. |
A public company must have at least————- directors whereas a private company must have at least ——————- |
A. | 3;2 |
B. | 23 |
C. | 25 |
D. | 810 |
Answer» A. 3;2 |
32. |
The registered office clause of memorandum of association contains |
A. | The name of the state in which the registered office of the company is to |
B. | The name of the city/town only and not that of the state. |
C. | The name of registrar of companies |
D. | The complete postal address. |
Answer» A. The name of the state in which the registered office of the company is to |
33. |
Which documents contains the regulations relating to the internal management of a |
A. | Memorandum of Association |
B. | Articles of Association |
C. | Both (a) and (b) |
D. | None |
Answer» B. Articles of Association |
34. |
………….meeting is the first meeting of the members of the public company after |
A. | board |
B. | annual general |
C. | departmental |
D. | statutory |
Answer» D. statutory |
35. |
Who can endorse the negotiable |
A. | Maker of the |
B. | older of the |
C. | Drawee |
D. | Both of A and B |
Answer» D. Both of A and B |
36. |
A Bill of exchange contains — |
A. | Conditional undertaking |
B. | Unconditional undertaking |
C. | Unconditional order |
D. | Conditional order |
Answer» C. Unconditional order |
37. |
Memorandum of Association does not include. |
A. | Subscription Clause. |
B. | Capital Clause. |
C. | Liability Clause. |
D. | Assets Clause. |
Answer» D. Assets Clause. |
38. |
Quorum for general meeting for private and public companies. |
A. | 2 and 5. |
B. | 3 and 6. |
C. | 5 and 7. |
D. | None of these. |
Answer» A. 2 and 5. |
39. |
What do you mean by symbolic possession ? |
A. | Delivery of keys of lock of godown where the goods |
B. | Conditional promise to delivery. |
C. | Actual Delivery. |
D. | None of these |
Answer» A. Delivery of keys of lock of godown where the goods |
40. |
What does Caveat emptor means? |
A. | beware agent |
B. | beware customer |
C. | beware trader |
D. | beware seller |
Answer» B. beware customer |
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