Business Law (MCQs) Set-2
Categories: EDUCATION
Q.1. An agreement to pay money money's worth on the happening or non happening of a specified uncertain event is a
- Wagering agreement
- Contingent contract
- Quasi contract
- Uncertain agreement
Answer: (A) Wagering agreement
Q.2. A contingent contract dependent on the non happening of specified uncertain event within fixed time can be enforced if the event
- Does not happen within fixed time
- Becomes impossible before the expiry of fixed time
- Happens within the fixed time
- Both (a) and (b)
Answer: (D) Both (a) and (b)
Q.3. In commercial transactions, time is considered to be of the essence of contract, and if the party fails to perform the contract within specified time, the contract becomes
- Voidable at the option of the other party
- Void and cannot be enforced
- Illegal for non compliance of legal terms
- Enforceable in higher court only
Answer: (A) Voidable at the option of the other party
Q.4. Which of the following statements is correct?
- Ordinary damages are recoverable
- Special damage is recoverable only if the parties knew about them
- Remote or indirect damages are not recoverable
- All of these
Answer: (D) All of these
Q.5. A and B both believe that a particular kind of rice is being sold in the market@Rs.3000 per quintel and A sells rice of that kind to B @3000/quintel. But in fact, the market price was Rs.4000, the contract is
- Valid
- Void
- Voidable
- Illegal
Answer: (A) Valid
Q.6. A sells the goodwill of his business to B and agrees with him to refrain from carrying on a similar business within specified local limits. This contract is
- Valid
- Void
- Voidable
- Illegal
Answer: (A) Valid
Q.7. A void agreement is one which is
- Valid but not enforceable
- Enforceable at the portion of both parties
- Enforceable at the portion of one party
- Not enforceable in a Court of Law
Answer: (D) Not enforceable in a Court of Law
Q.8. A proposal when accepted becomes a:
- Promise
- Contract
- Offer
- Acceptance
Answer: (A) Promise
Q.9. Consideration in sample term means
- Anything in return
- Something in return
- Everything in return
- Nothing in return
Answer: (B) Something in return
Q.10. Which of the following statement is not true about minor's position in a form?
- He cannot become a partner in an existing firm
- He can become a partner in an existing firm
- He can be admitted only to the benefits of any existing firm
- He can become partner on becoming a major
Answer: (B) He can become a partner in an existing firm