960+ Fundamentals of Laws and Ethics Solved MCQs

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Cost Accounting .

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251.	The period of limitation for simple contract in India is
A.	2 years
B.	3 years
C.	6 years
D.	8 years
Answer» B. 3 years

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252.	The exceptions to the rule that an agreement in restraint of trade is void, are contained in
A.	The provisions of Sec. 27 of the Contract Act only
B.	Secs. 11, 36, 54 and 55 of the partnership Act only
C.	Both the above mentioned provisions of the Contract Act & Partnership Act respectively
D.	None of the above provisions
Answer» C. Both the above mentioned provisions of the Contract Act & Partnership Act respectively

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253.	A contract to trade with an enemy is
A.	an immoral agreement
B.	a valid agreement
C.	an agreement opposed to public policy
D.	an enforceable agreement
Answer» C. an agreement opposed to public policy

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254.	An agreement to share the emoluments of a public office is
A.	Void
B.	Voidable
C.	Valid
D.	Defective
Answer» A. Void

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255.	An agreement, the object of which is to procure a public post, is
A.	Void
B.	Voidable
C.	Valid
D.	Defective
Answer» A. Void

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256.	Under which section of Indian Contract Act, agreements of wager are void?
A.	Section 28
B.	Section 29
C.	Section 30
D.	Section 27
Answer» C. Section 30

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257.	An agreement in restraint of parental rights is
A.	Void
B.	Valid
C.	Voidable
D.	Defective
Answer» A. Void

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258.	An agreement will be unlawful if:
A.	There is no consent
B.	Consent is not free
C.	There is no consideration
D.	The object is forbidden by law
Answer» D. The object is forbidden by law

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259.	An agreement in restraint of marriage is:
A.	Voidable
B.	Void
C.	Valid
D.	Illegal
Answer» B. Void

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260.	An agreement in restraint of trade is:
A.	Voidable
B.	Valid
C.	Void
D.	Illegal
Answer» C. Void

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261.	A wagering agreement is:
A.	Voidable
B.	Void
C.	Valid
D.	Illegal
Answer» B. Void

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262.	A contract of insurance is a :
A.	Contract of guarantee
B.	Contract of indemnity
C.	Wagering agreement
D.	Contingent contract
Answer» D. Contingent contract

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263.	In a wagering agreement:
A.	Both the parties win
B.	Both the parties loose
C.	None of the parties wins
D.	One party wins and the other looses
Answer» D. One party wins and the other looses

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264.	Which one of the following statements is correct?
A.	Void agreements are always illegal
B.	Illegal agreements are voidable
C.	Illegal agreement can be ratified by the parties
D.	Illegal agreements are always void
Answer» D. Illegal agreements are always void

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265.	Which one of the following is not a wagering agreement?
A.	A lottery
B.	An agreement to buy a ticket for a lottery
C.	Commercial transaction, the intention of which is not to deliver the goods but only to pay the difference in price
D.	A contract of insurance
Answer» D. A contract of insurance

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266.	A wagering agreement in India is declared by the Contract Act as
A.	Illegal and void
B.	Void but not illegal
C.	Voidable at the option of the aggrieved party
D.	Immoral
Answer» B. Void but not illegal

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267.	Which one of the following is a void agreement?
A.	An agreement without consideration
B.	An agreement in restraint of marriage
C.	An agreement in restraint of trade
D.	All of the above
Answer» D. All of the above

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268.	Agreement to do an impossible act has been declared
A.	Void
B.	Voidable
C.	Enforceable
D.	None of these
Answer» A. Void

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269.	Agreement in restraint of marriage has been defined in
A.	Section 23
B.	Section 24
C.	Section 25
D.	Section 26
Answer» D. Section 26

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270.	An agreement which restricts a person's freedom to marry or to marry any person of his choice is against public policy and is
A.	Lawful
B.	Illegal
C.	Void
D.	None of these
Answer» C. Void

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271.	An agreement of service under which an employee agrees that he will serve a particular employer for a certain duration and that he will not serve anybody else during that period, is a
A.	Valid agreement
B.	Void agreement
C.	Illegal agreement
D.	None of these
Answer» A. Valid agreement

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272.	If the seller agrees to supply all the goods produced by him to a certain buyer and to nobody else, and the buyer also, in turn undertakes to accept the whole of the quantity, the agreement is
A.	Void agreement
B.	Solus agreement
C.	Illegal agreement
D.	None of these
Answer» D. None of these

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273.	Section 28 of the Indian Contract Act, speaks about
A.	Agreement in restraint of legal proceedings
B.	Agreement in restraint of trade
C.	Agreement in restraint of marriage
D.	None of these
Answer» A. Agreement in restraint of legal proceedings

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274.	Ambiguous and uncertain agreements are defined in
A.	Section 26
B.	Section 27
C.	Section 28
D.	Section 29
Answer» D. Section 29

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275.	If an agreement suffers from any uncertainty, it is
A.	Voidable
B.	Void
C.	Unenforceable
D.	None of these
Answer» B. Void

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276.	If the contract is impossible in itself physically or legally the agreement is
A.	Void contract
B.	Voidable
C.	Void ab initio
D.	None of these
Answer» C. Void ab initio

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277.	If the consideration or object of an agreement is regarded by the court to be immoral or opposed to public policy. The agreement is
A.	Void
B.	Voidable
C.	Unenforceable
D.	None of these
Answer» A. Void

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278.	M, who is a dealer in mustard oil only, agrees to sell to N '500 litres of oil'. This agreement is
A.	Valid contract
B.	Void contract
C.	Voidable contract
D.	Unenforceable contract
Answer» A. Valid contract

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279.	A and B agree that A shall pay ` 1000 for which B shall afterwards deliver to an either rice or smuggled opium. In this case
A.	The first agreement is void and the second voidable
B.	The first is voidable and the second is void
C.	The first is valid and the second is void
D.	The first is void and the second is valid
Answer» C. The first is valid and the second is void

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280.	A agrees to sell to B a 'hundred tons of oil'. There is nothing whatever to show what kind of oil was intended. The agreement is
A.	Valid
B.	Void for uncertainty
C.	Voidable
D.	Illegal
Answer» B. Void for uncertainty

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281.	A agrees to sell to B 'my white horse for `500 or ` 1,000'. There is nothing to show which of the two prices was to be given. The agreement is
A.	Valid
B.	Void
C.	Voidable
D.	Unenforceable
Answer» B. Void

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282.	Agreements between a husband and wife living in friendly environment are
A.	Valid contracts
B.	A void contracts
C.	Domestic arrangements
D.	Voidable contract
Answer» C. Domestic arrangements

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283.	A promised to marry none else than Miss B and in default to pay her a sum of ` 1,000. Subsequently A married Miss C and Miss B sued for recovery of ` 1,000. The contract is
A.	Valid
B.	Void
C.	Voidable
D.	Enforceable
Answer» B. Void

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284.	A promises B to pay ` 100 if it rains on Monday, and B promises A to pay ` 100 if it does not rain on Monday. This agreement is
A.	a valid agreement
B.	a voidable agreement
C.	a wagering agreement
D.	an illegal agreement
Answer» C. a wagering agreement

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285.	P engages B to kill C and borrows ` 100 from D to pay B. If D is aware of the purpose of the loan, the transaction is
A.	Valid
B.	Void
C.	Illegal
D.	Not enforceable
Answer» C. Illegal

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286.	A leaves a firm doing a particular business in Mumbai. He agrees with the other partners of the firm not to start a similar business as that of the firm in and around Mumbai for 3 years. This agreement is
A.	Valid
B.	Immoral
C.	Illegal
D.	Void
Answer» A. Valid

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287.	A, while filling up the insurance application form, states his age as 25 believing it to be true. His actual age was 27. The Life Insurance Corporation issued a policy in his favour charging a lower premium than what it should have charged if the actual age had been given. This is a case of
A.	Fraud
B.	Misrepresentation
C.	Undue influence
D.	Mistake of fact
Answer» B. Misrepresentation

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288.	B, having discovered a vein of ore on the estate of A, adopts means to conceal, and does conceal, the existence of the ore from A. Owing to A's ignorance B is enabled to buy the estate at a low- price. The contract is
A.	Valid
B.	Void
C.	Voidable at the option of A
D.	Invalid
Answer» C. Voidable at the option of A

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289.	B let a cabin on hire to P a prostitute, knowing that it would be used for immoral purposes. The agreement is
A.	Enforceable
B.	Valid
C.	Voidable
D.	Void
Answer» D. Void

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290.	A enters into an agreement with B who has robbed A of `10,000 to drop prosecution against him (B) in consideration of B's returning ` 8,000. Afterwards B refused to pay. A can get from B
A.	` 8,000
B.	` 100
C.	Nothing
D.	` 10,000 plus damages
Answer» C. Nothing

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291.	A agrees with B to discover treasure by magic for a consideration of ` 500. This is
A.	A void agreement
B.	A void contract
C.	A valid agreement
D.	An unenforceable contract
Answer» A. A void agreement

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292.	X, a tailor, employed Y as his assistant under an agreement that Y, on termination of his employment shall not start the business of a tailor. This restraint is
A.	Void
B.	Valid
C.	Illegal
D.	Voidable
Answer» A. Void

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293.	X leaves a firm doing a particular business in Delhi. He agrees with other partners of the firm not to start a similar business as that of the firm in Delhi for 2 yea` This agreement is
A.	Void
B.	Valid
C.	Voidable at X's option
D.	Invalid
Answer» B. Valid

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294.	X promises to supply Y one tola of gold brought from the sun. This is
A.	a valid contract
B.	an illegal contract
C.	a void agreement
D.	a voidable agreement
Answer» C. a void agreement

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295.	A promises B not to carry on a similar business as that of B if B pays him a certain amount. B pays the money but A continues to carry on the business. B can
A.	Do nothing
B.	Compel A to stop the business
C.	Get him imprisoned for fraud
D.	Sue A for damages
Answer» A. Do nothing

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296.	A purchases B's business of selling neckties in Delhi. A can restrain B from
A.	Doing the business of selling neckties again in his life
B.	Doing any business in Delhi
C.	Doing the business of selling neckties in Delhi for a limited period
D.	None of the above
Answer» C. Doing the business of selling neckties in Delhi for a limited period

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297.	A promised to marry B and none else and promised her to pay a sum of `5000 in addition to what he gets from the other party if he marries someone else. A marries C and gets ` 10,000 from C. B can get from A
A.	` 15,000
B.	` 10,000
C.	Nothing
D.	` 15,000 plus damages
Answer» C. Nothing

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298.	A promised B to obtain an employment for him in a public office. B promised to pay `2,000 to A for this. B gets a job through A but refuses to pay the money. A can
A.	Challenge B's appointment on the ground of non-payment of money
B.	Sue B for `2,000
C.	Do nothing
D.	Do both given at (a) and (b) above
Answer» C. Do nothing

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299.	A, a Hindu already married with a living wife B, enters into a marriage agreement with a widow of 30 years of age. This agreement is
A.	Void, because of being opposed to public policy ; (b)
B.	Valid and can be enforced by either party
C.	Voidable, because A has obtained B's consent by exercising undue influence against her
D.	Void, because of being forbidden by law
Answer» D. Void, because of being forbidden by law

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300.	Rajeev entered into a contract with Lata to marry her on a fixed date. However, before the marriage date. Rajeev went mad. With reference to the Indian Contract Act which is the valid response?
A.	Lata can't marry till Rajeev dies ; (b)
B.	The executers of Rajeev can enforce the contract against Lata
C.	The contract becomes void
D.	All the statements are correct
Answer» C. The contract becomes void

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960+ Fundamentals of Laws and Ethics Solved MCQs

The period of limitation for simple contract in India is

The exceptions to the rule that an agreement in restraint of trade is void, are contained in

A contract to trade with an enemy is

An agreement to share the emoluments of a public office is

An agreement, the object of which is to procure a public post, is

Under which section of Indian Contract Act, agreements of wager are void?

An agreement in restraint of parental rights is

An agreement will be unlawful if:

An agreement in restraint of marriage is:

An agreement in restraint of trade is:

A wagering agreement is:

A contract of insurance is a :

In a wagering agreement:

Which one of the following statements is correct?

Which one of the following is not a wagering agreement?

A wagering agreement in India is declared by the Contract Act as

Which one of the following is a void agreement?

Agreement to do an impossible act has been declared

Agreement in restraint of marriage has been defined in

An agreement which restricts a person's freedom to marry or to marry any person of his choice is against public policy and is

An agreement of service under which an employee agrees that he will serve a particular employer for a certain duration and that he will not serve anybody else during that period, is a

If the seller agrees to supply all the goods produced by him to a certain buyer and to nobody else, and the buyer also, in turn undertakes to accept the whole of the quantity, the agreement is

Section 28 of the Indian Contract Act, speaks about

Ambiguous and uncertain agreements are defined in

If an agreement suffers from any uncertainty, it is

If the contract is impossible in itself physically or legally the agreement is

If the consideration or object of an agreement is regarded by the court to be immoral or opposed to public policy. The agreement is

M, who is a dealer in mustard oil only, agrees to sell to N '500 litres of oil'. This agreement is

A and B agree that A shall pay ` 1000 for which B shall afterwards deliver to an either rice or smuggled opium. In this case

A agrees to sell to B a 'hundred tons of oil'. There is nothing whatever to show what kind of oil was intended. The agreement is

A agrees to sell to B 'my white horse for `500 or ` 1,000'. There is nothing to show which of the two prices was to be given. The agreement is

Agreements between a husband and wife living in friendly environment are

A promised to marry none else than Miss B and in default to pay her a sum of ` 1,000. Subsequently A married Miss C and Miss B sued for recovery of ` 1,000. The contract is

A promises B to pay ` 100 if it rains on Monday, and B promises A to pay ` 100 if it does not rain on Monday. This agreement is

P engages B to kill C and borrows ` 100 from D to pay B. If D is aware of the purpose of the loan, the transaction is

A leaves a firm doing a particular business in Mumbai. He agrees with the other partners of the firm not to start a similar business as that of the firm in and around Mumbai for 3 years. This agreement is

A, while filling up the insurance application form, states his age as 25 believing it to be true. His actual age was 27. The Life Insurance Corporation issued a policy in his favour charging a lower premium than what it should have charged if the actual age had been given. This is a case of

B, having discovered a vein of ore on the estate of A, adopts means to conceal, and does conceal, the existence of the ore from A. Owing to A's ignorance B is enabled to buy the estate at a low- price. The contract is

B let a cabin on hire to P a prostitute, knowing that it would be used for immoral purposes. The agreement is

A enters into an agreement with B who has robbed A of `10,000 to drop prosecution against him (B) in consideration of B's returning ` 8,000. Afterwards B refused to pay. A can get from B

A agrees with B to discover treasure by magic for a consideration of ` 500. This is

X, a tailor, employed Y as his assistant under an agreement that Y, on termination of his employment shall not start the business of a tailor. This restraint is

X leaves a firm doing a particular business in Delhi. He agrees with other partners of the firm not to start a similar business as that of the firm in Delhi for 2 yea` This agreement is

X promises to supply Y one tola of gold brought from the sun. This is

A promises B not to carry on a similar business as that of B if B pays him a certain amount. B pays the money but A continues to carry on the business. B can

A purchases B's business of selling neckties in Delhi. A can restrain B from

A promised to marry B and none else and promised her to pay a sum of `5000 in addition to what he gets from the other party if he marries someone else. A marries C and gets ` 10,000 from C. B can get from A

A promised B to obtain an employment for him in a public office. B promised to pay `2,000 to A for this. B gets a job through A but refuses to pay the money. A can

A, a Hindu already married with a living wife B, enters into a marriage agreement with a widow of 30 years of age. This agreement is

Rajeev entered into a contract with Lata to marry her on a fixed date. However, before the marriage date. Rajeev went mad. With reference to the Indian Contract Act which is the valid response?