McqMate
| 101. |
A contract is made where: |
| A. | X agrees with Y to discover a treasure by magic. |
| B. | X bids at a public auction |
| C. | A sees a sea |
| D. | A sit in a public Omni bus. |
| Answer» D. A sit in a public Omni bus. | |
| 102. |
In case of void agreements, collateral transactions are |
| A. | Also void |
| B. | Unenforceable |
| C. | Not affected |
| D. | Illegal |
| Answer» C. Not affected | |
| 103. |
The delivery of goods by one person to another for some purpose, upon a contract and that they shall, when the purpose is accomplished, be returned or otherwise disposed of by accounting to the directions of the person delivering them, then it is called: |
| A. | Contingent contract |
| B. | Bailment |
| C. | Pledge |
| D. | Contract of indemnity |
| Answer» B. Bailment | |
| 104. |
A, a minor bought 11 expensive coasts from B. he was, at that time, adequately provided with clothes, but B did not know this fact. In such a case |
| A. | Minor is personally liable to pay for the coast |
| B. | Minor’s property can be attached for payment |
| C. | Minor is liable since he has Misled into supply of coats |
| D. | Minor is not liable at all |
| Answer» C. Minor is liable since he has Misled into supply of coats | |
| 105. |
A husband, by a registered agreement promised to pay wife Rs 5,000 p.m. there was no consideration moving from the wife to the husband. This contract is |
| A. | Void |
| B. | Illegal |
| C. | Valid |
| D. | Unenforceable |
| Answer» C. Valid | |
| 106. |
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 | |
| 107. |
Sonia contracts with Anshul to buy a necklace, believing it is made of pearls whereas in fact it is made of imitation pearls of no value. Anshul knows that Sonia is mistaken and takes no steps to correct the error. Now Sonia wants to cancel the contract based on fraud. Which of the following statement is correct? |
| A. | Sonia can cancel the contract alleging fraud |
| B. | Sonia cannot cancel the contract |
| C. | Sonia can cancel the contract alleging undue influence |
| D. | Sonia can claim damages |
| Answer» D. Sonia can claim damages | |
| 108. |
Which of the following is false with respect to minor entering a contract? |
| A. | An agreement with or by a minor is void ab initio |
| B. | A minor can be a beneficiary of a contract |
| C. | The guardian of a minor is responsible for his acts |
| D. | A minor cannot ratify a contract on attaining majority |
| Answer» C. The guardian of a minor is responsible for his acts | |
| 109. |
Anuj agrees to pay Rs10,000 to Manoj if a certain ship returns within a year. However, the ship sinks within the year. In this case, the contract becomes: |
| A. | Valid |
| B. | Void |
| C. | Voidable |
| D. | Illegal |
| Answer» B. Void | |
| 110. |
A invites B for coffee in Coffee day Restaurant and B accepts the invitation. On the appointed date, B goes there but A does not come. In this case |
| A. | B has no remedy against A. |
| B. | B has to wait for another invitation from A. |
| C. | B can sue A for not honoring his words. |
| D. | A has to invite B again, to keep the promise. |
| Answer» A. B has no remedy against A. | |
| 111. |
Where a contract has to be inferred from the conduct of parties, it is called |
| A. | Express contract. |
| B. | Implied contract. |
| C. | Tacit contract. |
| D. | Unlawful contract |
| Answer» B. Implied contract. | |
| 112. |
Voidable contract is one |
| A. | Which is lawful. |
| B. | Which is invalid. |
| C. | Which is valid if it is not avoided by the party entitled to do so. |
| D. | Which is unlawful. |
| Answer» C. Which is valid if it is not avoided by the party entitled to do so. | |
| 113. |
Undue influence can be presumed between |
| A. | Guardian and Ward |
| B. | Mother and Daughter |
| C. | Doctor and Patient |
| D. | All of the above |
| Answer» D. All of the above | |
| 114. |
Wagering Agreement is a _____________ agreement |
| A. | Valid |
| B. | Voidable |
| C. | Void |
| D. | Illegal |
| Answer» C. Void | |
| 115. |
A minor was facing a criminal prosecution for smuggling drugs. He borrowed Rs. 5000 to hire an advocate to defend him in the court of law. What is the remedy available to the creditor if the minor does not return the money on his own? |
| A. | The creditor cannot recover the amount from the minor since a contract with a minor is void ab initio |
| B. | The amount of loan can be recovered from minor’s property since it is a loan for necessaries |
| C. | The creditor can recover his amount of loan from the minor on his (minor’s) attaining the age of majority |
| D. | The creditor can recover his amount from the parent or guardian of the minor |
| Answer» A. The creditor cannot recover the amount from the minor since a contract with a minor is void ab initio | |
| 116. |
Future goods mean 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 above |
| Answer» B. After making of contract | |
| 117. |
A sold a stolen car to B which was subsequently recovered by the police form B's possession and he (B) was forced to return the same to the true owner. Here, there is breach of implied condition as to |
| A. | Merchantability |
| B. | Fitness for buyer's purpose |
| C. | Title |
| D. | None of these |
| Answer» C. Title | |
| 118. |
Where the goods are sold by description, there is an implied condition that the goods shall |
| A. | Be fit for buyer's purpose |
| B. | Free from any defects |
| C. | Correspond with the description |
| D. | Free form any encumbrance |
| Answer» C. Correspond with the description | |
| 119. |
As per the doctrine of caveat emptor incorporated in Section 16, there is no implied conditions or warranty in a contract of sale as to the |
| A. | Merchantability. |
| B. | Wholesomeness. |
| C. | Quality or fitness for buyer's purpose. |
| D. | None of these. |
| Answer» C. Quality or fitness for buyer's purpose. | |
| 120. |
Where the seller wrongfully neglects or refuses to deliver the goods to the buyer, the buyer may sue for: |
| A. | Damages for non-delivery |
| B. | Damages for non-acceptance |
| C. | Specific performance |
| D. | Compensation |
| Answer» A. Damages for non-delivery | |
| 121. |
The unpaid seller has right of stoppage of goods in transit only where the buyer |
| A. | Becomes insolvent |
| B. | Refuses to pay price |
| C. | Acts fraudulently |
| D. | All of these |
| Answer» A. Becomes insolvent | |
| 122. |
An unpaid seller is having rights against |
| A. | Goods only |
| B. | The buyer only |
| C. | Both goods and buyer |
| D. | None of the above |
| Answer» C. Both goods and buyer | |
| 123. |
Seller has right of resale where |
| A. | Goods are perishable |
| B. | Seller has reserved such right. |
| C. | Seller gives notice |
| D. | All of these. |
| Answer» D. All of these. | |
| 124. |
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 | |
| 125. |
The agent having in customary course of business as such agent authority either to sell goods or to consign goods for the purpose of sale or to buy goods or to raise money on the security of goods is called |
| A. | Agent |
| B. | Mercantile agent |
| C. | Partner |
| D. | None of above |
| Answer» B. Mercantile agent | |
| 126. |
According section 5(2) subject to provision of any law for the time being in force a contract of sale may be |
| A. | Made in writing |
| B. | By words of mouth |
| C. | Partly in writing or partly in words of mouth |
| D. | All above ways |
| Answer» A. Made in writing | |
| 127. |
A stipulation in contract of sale with reference to goods which are the subject there of may be |
| A. | A condition |
| B. | A warranty |
| C. | Both (a) and (b) |
| D. | None of above |
| Answer» C. Both (a) and (b) | |
| 128. |
Where an unpaid seller has made part delivery of the goods he may exercise his Right of _______ |
| A. | Return of remaining goods |
| B. | Lien on the remaining goods |
| C. | Sale to any other person |
| D. | None of above |
| Answer» B. Lien on the remaining goods | |
| 129. |
Delivery of key of the warehouse by the seller to the buyer will amount to: |
| A. | Symbolic Delivery |
| B. | Actual Delivery |
| C. | Constructive Delivery |
| D. | No delivery |
| Answer» A. Symbolic Delivery | |
| 130. |
The Right of Lien is exercised: |
| A. | To retain the possession of goods |
| B. | To regain the possession of goods |
| C. | To resell the goods |
| D. | To transfer the goods |
| Answer» A. To retain the possession of goods | |
| 131. |
Which company shares can be freely transferable? |
| A. | Private company |
| B. | Public company |
| C. | Both a & b |
| D. | None of the above |
| Answer» B. Public company | |
| 132. |
Maximum number of members in case of public company is: |
| A. | 50 |
| B. | 100 |
| C. | Unlimited |
| D. | 200 |
| Answer» C. Unlimited | |
| 133. |
The liability of members if company is limited by guarantee. |
| A. | Unpaid value of shares |
| B. | Guarantee amount |
| C. | Unlimited liability |
| D. | None of the above |
| Answer» B. Guarantee amount | |
| 134. |
The liability of members if company is limited by shares |
| A. | Unpaid value of shares |
| B. | Guarantee amount |
| C. | Unlimited liability |
| D. | None of the above |
| Answer» A. Unpaid value of shares | |
| 135. |
The companies which are formed under special charter granted by the king or queen of England are called |
| A. | Statutory companies |
| B. | Registered companies |
| C. | Chartered companies |
| D. | None of these |
| Answer» C. Chartered companies | |
| 136. |
In the MOA there are 7 clauses. We can alter all clauses expect one clause. What is that clause? |
| A. | Objects clause |
| B. | Name clause |
| C. | Association clause |
| D. | None of these |
| Answer» C. Association clause | |
| 137. |
Ultra vires means |
| A. | Beyond the powers |
| B. | Within the powers |
| C. | Both |
| D. | None of the above |
| Answer» A. Beyond the powers | |
| 138. |
Alteration of objects clause of MOA of a company requires |
| A. | Special resolution |
| B. | Approval of CLB |
| C. | Ordinary resolution |
| D. | Approval of ROC |
| Answer» A. Special resolution | |
| 139. |
AOA is a |
| A. | Public document |
| B. | Managerial document |
| C. | Private document |
| D. | Internal document |
| Answer» D. Internal document | |
| 140. |
Memorandum of association governs the relationship of the company: |
| A. | With the outside world |
| B. | With the shareholders |
| C. | With other companies |
| D. | of the above |
| Answer» A. With the outside world | |
| 141. |
The association clause of a public company must be signed by: |
| A. | 10 persons |
| B. | 12 persons |
| C. | 7 persons |
| D. | 5 persons |
| Answer» C. 7 persons | |
| 142. |
Quorum should be present at the |
| A. | Commencement of meeting |
| B. | Middle of the meeting |
| C. | End of the meeting |
| D. | Any time during meeting. |
| Answer» D. Any time during meeting. | |
| 143. |
Total managerial remuneration cannot exceed ____% of net profit |
| A. | 11 |
| B. | 12 |
| C. | 13 |
| D. | 14 |
| Answer» A. 11 | |
| 144. |
When a private company is converted into public company. In which form it should be |
| A. | Schedule III |
| B. | Schedule IV |
| C. | Schedule VI |
| D. | None of these |
| Answer» C. Schedule VI | |
| 145. |
The undertaking contained in a promissory note, to pay a certain sum of money is |
| A. | Conditional |
| B. | Unconditional |
| C. | May be conditional or unconditional depending upon the circumstances |
| D. | None of the above. |
| Answer» B. Unconditional | |
| 146. |
A bill of exchange contains a/an |
| A. | Unconditional undertaking |
| B. | Unconditional order |
| C. | Conditional undertaking |
| D. | Conditional order. |
| Answer» B. Unconditional order | |
| 147. |
Cheque is a |
| A. | Promissory note |
| B. | Bill of exchange |
| C. | Both (a) and (b) above |
| D. | None of the above. |
| Answer» B. Bill of exchange | |
| 148. |
The term 'negotiation' in section 14 of the Negotiable Instruments Act, 1881 refers to |
| A. | The transfer of a bill of exchange, promissory note or cheque to any person, so as to constitute the person the holder thereof |
| B. | The payment by a bank on a negotiable instrument after due verification of the instrument |
| C. | The bargaining between the parties to a negotiable instrument |
| D. | All of the above. |
| Answer» A. The transfer of a bill of exchange, promissory note or cheque to any person, so as to constitute the person the holder thereof | |
| 149. |
If an instrument may be construed either as a promissory note or bill of exchange, it is |
| A. | A valid instrument |
| B. | An ambiguous instrument |
| C. | A returnable instrument |
| D. | None of the above. |
| Answer» B. An ambiguous instrument | |
| 150. |
When an endorser willing to transfer to an endorsee only a part of the amount of the instrument, then it is which type of endorsement? |
| A. | Restrictive endorsement |
| B. | Conditional endorsement |
| C. | Special endorsement |
| D. | Partial endorsement |
| Answer» D. Partial endorsement | |
| 151. |
If a cheque is refused by the State Bank of India (SBI) due to inadequacy of funds for the cheque to clear, then it is said to be |
| A. | Bounced cheque |
| B. | Cancelled cheque |
| C. | Either a or b |
| D. | Both a and b |
| Answer» A. Bounced cheque | |
| 152. |
If the words "not negotiable" are used with special crossing in a cheque, the cheque is |
| A. | Not transferable |
| B. | Transferable |
| C. | Negotiable under certain circumstances |
| D. | None of the above |
| Answer» A. Not transferable | |
| 153. |
Crossing of a cheque effects the |
| A. | Negotiability of the cheque |
| B. | Mode of payment on the cheque |
| C. | Both (a) and (b) |
| D. | None of the above |
| Answer» C. Both (a) and (b) | |
| 154. |
Notice of dishonour must be given |
| A. | To the drawer and drawee only |
| B. | To the drawer, acceptor and endorser(s) only |
| C. | To all the parties liable on the instrument or to their duly authorized agent |
| D. | To all the parties who are secondarily liable on the instrument or to their duly authorized agent |
| Answer» D. To all the parties who are secondarily liable on the instrument or to their duly authorized agent | |
| 155. |
Presentation is required for |
| A. | Acceptance |
| B. | Sight |
| C. | Payment |
| D. | Any of the above three purposes |
| Answer» D. Any of the above three purposes | |
| 156. |
A minor cannot be a______________ of the instrument |
| A. | Drawer |
| B. | Drawee |
| C. | Payee |
| D. | Acceptor |
| Answer» C. Payee | |
| 157. |
Presentment of an acceptance is required in case of |
| A. | Every Bill of exchange |
| B. | Every Bill of exchange payable after sight |
| C. | Every promissory note |
| D. | Every cheque |
| Answer» C. Every promissory note | |
| 158. |
A drawee is need to be given a deliberation of |
| A. | 24 hrs |
| B. | 48 hrs |
| C. | 72hrs |
| D. | 10 days |
| Answer» B. 48 hrs | |
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