Business Law (MCQs) Set-3

Categories: EDUCATION

Q.1. Which of the following statement is true?

1. A contract with a minor is voidable at the option of the minor
2. An agreement with the minor can be ratified after he attains majority
3. A person who is usually of an unsound mind cannot enter into contract even when he is of a sound mind
4. A person who is usually of an sound mind cannot enter into contract even when he is of a unsound mind

Answer: (D) A person who is usually of an sound mind cannot enter into contract even when he is of a unsound mind

Q.2. Which of the following statement is true?

1. A threat to commit suicide does not amount to coercion
2. Undue influence involves use of physical pressure
3. Ignorance of law is no excuse
4. Silence always amounts to fraud

Answer: (C) Ignorance of law is no excuse

Q.3. A contract is discharged by recission which means the;

1. Change in one or more terms of the contract
2. Acceptance of lesser performance
3. Abandonment of rights by a party
4. Cancellation of the existing contract

Answer: (D) Cancellation of the existing contract

Q.4. Generally, which of the following damages are not recoverable?

1. Ordinary damages
2. Special damages
3. Remote damages
4. Nominal damages

Answer: (C) Remote damages

Q.5. A, by a letter dated 25th December 1998, offers to sell his house to B for Rs.10 lakhs. The letter reaches on 27th Dec.1998, who posts his acceptance on 28th Dec. 1998 which reaches A on 30th Dec.1998. Here the communication of offer is completed on;

1. 25th Dec.1998
2. 27th Dec.1998
3. 28th Dec.1998
4. 30th Dec.1998

Answer: (B) 27th Dec.1998

Q.6. For entering into a contract, a minor is a person who has not completed the age of;

1. 16 years
2. 18 years
3. 20 years
4. 21 years

Answer: (B) 18 years

Q.7. A threatens to kill B if he does not agrees to sell his scooter from him for Rs.1000. Here B's consent is obtained by

1. A undue influence
2. Fraud
3. Coercion
4. None of these

Answer: (C) Coercion

Q.8. Which of the following statement is false?

1. A contract is not voidable if fraud or misrepresentation does not induce the other party to enter a contract.
2. A party cannot complain of fraudulent silence or misrepresentation if he had the means of discovering the truth with ordinary means
3. In case of fraud or misrepresentation, aggrieved party can either rescind or affirm the contract
4. A party who affirms the contract , can also change his option afterwards if he so decides

Answer: (D) A party who affirms the contract, can also change his option afterwards if he so decides

Q.9. The consideration or object of agreement is considered unlawful, if is

1. Forbidden by law
2. Fraudulent
3. Immoral
4. All of these

Answer: (D) All of these

Q.10. An agreement in restraint of marriage, ie, which prevents a person from marrying is:

1. Valid
2. Voidable
3. Void
4. Contingent

Answer: (C)  Void