T.y b.com 

Semester: 5 

Business law - I 

MCQs: 25 NOV 2021 

 

1. Find out from the following case, where the court may pass an order of specific performance of contract

A. contract is voidable. 

B. injunction is an adequate remedy. 

C. Damages are not an adequate remedy. 

D. The contract is uncertain. 

 

2. A sells his TV set to B for Rs.10,000/-. A has a right to recover the price of the TV set from B. This right is known as.......

A. Jus in rem 

B. Jus in personam 

C. Social right 

D. Moral right 

 

3. Which of the following is not an essential element of valid contract?

A. Consideration and object of contract must be lawful. 

B. Consent of parties to contract must be free. 

C. Parties to contract must be competent to contract. 

D. every Contract must be in writing. 

 

4. A person who is usually of unsound mind, but occasionally of sound mind, Which of the following is correct?

A. he may enter in to contract when he is unsound mind 

B. he may not enter in to a contract when he is of sound mind 

C. he may enter in to a contract when he is of sound mind. 

D. he may enter in to a contract with the permission of court 

 

5. Identify from the following an agreement which is not expressly declared void

A. an Agreement by way of wager. 

B. Agreement contingent on impossible event. 

C. Agreement in restraint of trade. 

D. Agreement of Charitable subscription, where the promisee on the strength of the promise makes commitments. 

 

6. If an agreement in which part of object is lawful and part of object unlawful, if the lawful Part cannot be separated from the unlawful part, what will be the consequences?

A. The whole Agreement is void 

B. Agreement is valid 

C. Agreement is voidable 

D. Part of object which is lawful is enforceable

 

7. In which of the following cases, object is lawful?

A. B, promises to pay A, Rs.2,00,000/-in return for A's promise to obtain employment in the public service for B. 

B. Agreement between 3 persons for division among them of gains acquired to be acquired by fraud. 

C. A agrees to sell his house to B for Rs.50,00,000/- and B agrees to buy the house for Rs.50,00,000/-.  

D. A agrees to let his premises in Gujarat to B, for storage of liquor. 

 

8. Mr. A owes Rs. 50,000 to Mr. B. If Mr. B accept Rs. 30,000 in full and final settlement of the outstanding due. It is known as...

A. Remission

B. Novation 

C. Alteration 

D. Rescission 

 

9. In which of the following cases, the court will pass an order of specific performance of a contract?

A. Where the contract is in its nature irrevocable. 

B. Where damages are an adequate remedy. 

C. When the act agreed to be done is such that compensation in money for its non-performance is not an adequate relief. 

D. Where contract is not certain or is inequitable to either party. 

 

10. In which of the following relationship, presumption of undue influence is not there

A. Parent and child. 

B. Religious adviser and disciple. 

C. Solicitor and client. 

D. Landlord and tenant.

 

11. A compromise of dispute claims is...

A. a good consideration for a contract. 

B. not a good consideration for a contract. 

C. results into void agreement. 

D. is not permitted by law.  

 

12. Which of the following reason is not an excuse for non-performance of contract in relation to supervening impossibility?

A. Failure of third party. 

B. Change of law. 

C. Outbreak of war. 

D. Non-existence of a state of things. 

 

13. A is appointed as guardian by the court of Law for the person and property of B. The age of majority in relation to B is.....

A. 18 years 

B. 25 years 

C. 20 years 

D. 21 years 

 

14. Which of the following is an excuse for non-performance of contract in connection with supervening impossibility?

A. Destruction of subject-matter. 

B. Difficulty of performance. 

C. Commercial impossibility. 

D. Lock-outs and civil disturbances. 

 

15. Void agreement means ?

A. An agreement which is enforceable by one party. 

B. An agreement not enforceable by law. 

C. An agreement which is criminal in nature. 

D. An agreement which cannot be enforced in a court of law because of some technical defect. 

 

16. Where work has been done in pursuance of a contract, which has been discharges by the default of the defendant, the plaintiff is entitled, for...

A. suit upon quantum meruit 

B. suit for injunction 

C. suit for damages 

D. suit for specific performance 

 

17. Where the two promises are to be performed simultaneously, they are said to be...

A. mutual and independent 

B. mutual and dependent 

C. mutual and concurrent 

D. mutual 

 

18. In a contract, when promisor has made his part of performance and the same is not accepted by the promisee, what will be the consequences?

A. The promisor is not responsible for non performance, nor does he thereby lose his rights under the contract. 

B. Promisor is not responsible for non performance, but he loses his rights under contract. 

C. Promisor is responsible for non-performance but not loses his rights under contract. 

D. Promisor is not only responsible for non performance but also loses his right under contract. 

 

19. Identify from following in which obligation is imposed by law, though there is no contractual relation between parties

A. Quasi contract 

B. Executory contract 

C. Implied contract  

D. Contract of indemnity 

 

20. The responsibility of finder of goods is that of the

A. Bailee.  

B. Buyer. 

C. True owner. 

D. Pawnee. 

 

21. Which of the following is not a valid contract?

A. A father in natural love and affection promises his son to give a bike. He puts his promise to give the bike in writing and registered it. 

B. A owes B Rs. 50,00,000 but debt is barred by the limitation Act. A sing a written promise to pay 30,00,000 on account of debt. 

C. A finds B's purse and gives it to him. B promises to give A Rs.1000 as reward. 

D. A promises to give Rs. 10,00,000 to B for no consideration.  

 

22. Which one of the following is not a quasi Contract? 

A. Claim for necessaries supplied to person incapable of contracting or to any other person to whom he is bound to supply necessaries. 

B. Reimbursement to a person making payment, which another is bound by law to make, but the person paying is interested in such payment. 

C. Promise contingent upon happening or non-happening of an uncertain future event. 

D. Responsibility of finder of goods. 

 

23. Which one of the following is not a contract? 

A. A finds B's purse and gives it to him. B, in return, promises to pay Rs. 5000/- to A. 

B. A promises to pay B, Rs.50,000/- without consideration. 

C. A agrees to sell a house worth Rs.50,00,000/- for Rs.5,00,000/-. A's consent is free. 

D. A, an eminent cricket player, gives coaching to B's minor son for cricketing skills. B promises to pay for learning to cricketing skills to his minor son. 

 

24. Which of the following is not true in relation to minor's agreement? 

A. the rule of estoppel does not apply to a minor 

B. ratification may be allowed on attaining the age of majority 

C. beneficial agreements are valid contracts 

D. minor can be admitted to the benefit of partnership firm with the consent of all partners  

 

25. A, who is a practicing Dentist, is employed by B as a Dentist in his Hospital. A, agreed not to do his own practice or get employed with anyone else while in the services of the B. While in the services of B, A started his own independent practice as a Dentist. B can file suit against A for _________.  

A. Specific performance of contract. 

B. damages 

C. Injunction. 

D. Quantum meruit. 

 

26. Identify the principle which was laid down in Mohiri Bibi vs. Dharmodas Ghose : 

A. An agreement with or by a minor is void and inoperative ab initio 

B. Contract without consideration is void. 

C. Object of contract must be lawful. 

D. Intention of parties to contract must have to create legal relationship.  

 

27. When both the parties have performed their respective obligations under a contract. It is __________.

A. an executory contract. 

B. an executed contract. 

C. partly executory contract. 

D. partly executed contract. 

 

28. Which of the following convey the meaning of Consensus ad idem 

A. Meeting of minds. 

B. Something in return. 

C. Competency of parties. 

D. Contract without consideration. 

 

29. It is the duty of the injured party to __________ damage suffered as a result of the breach of contract by the other party. 

A. strengthen 

B. mitigate

C. increase 

D. maximize 

 

30. If a person has supplied necessaries to the minor which is suitable to his life, the supplier is...

A. Not entitle to be reimbursed for such supplies from relative of the minor person. 

B. Entitle to be reimbursed for such supplies from the property of minor person.

C. Not entitled for reimbursement, because minor in not capable to create contract. 

D. Entitle to be reimbursed for such supplies from friends of the minor person, provided friends must be capable of contracting. 

  

31. Where persons reciprocally promise, firstly to do certain things which are legal, and secondly, under specified circumstances, to do certain things which are illegal Which one is valid? 

A. The first set of promises is a contract, but the second is a void agreement.  

B. The contract is void.  

C. The whole contract is valid.  

D. The contract is voidable.   

 

32. consent involves identity of minds of contracting parties, which is also known as...

A. consensus ad-idem 

B. quid-pro-quo 

C. ab-initio 

D. quantum meruit  

 

33. Consent is said to be not free __________ 

A. If it is given under coercion or undue influence. 

B. If it is given because of fraud or misrepresentation. 

C. If it is given under mutual mistake of fact. 

D. All of the above. 

 

34. An agrees to sell to B a horse for Rs.50,000/- if it wins a race and for Rs.5000/- if it does not. It is a ________ 

A. contingent contract. 

B. voidable contract. 

C. wagering agreement. 

D. void agreement 

 

35. A promise made without any intention of performing it amounts to.....

A. unlawful dealing  

B. fraud  

C. misrepresentation  

D coercion  

 

36. Identify from the following where contract is not discharge...

A. change of law 

B. outbreak of war 

C. destruction of subject matter of contract 

D. commercial impossibility 

 

37. The damages which are awarded with a view to punish the guilty party for the breach of contract is called as.... 

A. special damages 

B. exemplary damages 

C. ordinary damages 

D. nominal damages 

 

38. Hadley vs. Baxendale is a leading case on.........

A. Damages  

B. Rescission  

C. Quantum meruit  

D. Injunction 

 

39. An owns a plot. He is entitled to a quiet possession and enjoyment of his property. This right is ________.

A. Jus in personam 

B. Jus in rem  

C. Moral right 

D. There is no right 

 

40. A compromise of dispute claims is...

A. a good consideration for a contract. 

B. is not a good consideration for a contract. 

C. results into void agreement.  

D. is not permitted by law. 

 

41. Which one of the following is not a discharge of contract by operation of law ? 

A. By Merger. 

B. By insolvency. 

C. By breach of contract. 

D. By unauthorized alteration of terms of a written contract. 

 

42. In which of the following circumstances, contract is not voidable at the option of the party whose consent is so obtain?

A. When the consent was caused by coercion 

B. When the consent was caused by misrepresentation 

C. When consent is implied 

D. When the consent was caused by fraud. 

 

43. In a Contract, where the consent is given by a party under a mistake as to the nature and character of a written document, the agreement is...

A. voidable  

B. valid  

C. absolutely void 

D. partly valid  

 

44. To be valid, tender __________. 

A. must be absolute, unconditional and must be of whole quantity or obligation contracted for.    

B. must be made to the proper person and at the and proper time and place. 

C. may be made to one of the several joint promises, and in case of tender of goods must give a reasonable opportunity to the promise to inspect the goods. 

D. All of the above 

 

45. when consent of a person is obtained by threat to commit a suicide, it is covered under 

A. Undue influence 

B. Fraud 

C. Coercion 

D. Misrepresentation 

 

46. If an agreement in which part of object is lawful and part of object unlawful, if the lawful part cannot be separated from the unlawful part, what will be the consequences? 

A. The whole Agreement is void. 

B. Agreement is valid. 

C. Agreement is voidable. 

D. Part of object which is lawful is enforceable 

 

47. Where a contract consists of reciprocal promises and such reciprocal promises are to be simultaneously performed, identify which of the following is true? 

A Promisor need to perform his part of promise first 

B. Promisor need not perform his part of promise unless promise is ready and willing to perform his part of promise. 

C. It is promisor's duty to remind promise to perform his part of promise under contract  

D. Promisor has to compel promise to perform his part of promise under contract.  

 

48. The positive assertion, in a manner not warranted by the information of the person making it, of that which is not true, though he believers it to be true, is called as...

A. fraud 

B. coercion 

C. mistake

D. misrepresentation 

 

49. Contractual rights and obligations created by

A. Contract Act.  

B. contract. 

C. Custom or usage. 

D. Statute. 

 

50. "All illegal agreements are void, but all void agreements are not necessarily illegal" identify the correctness of statement...

A. partly correct 

B. partly incorrect 

C. true 

D. uncertain