Business Law

BUSINESS LAW AND

ENVIRONMENT

UNIT 1 & 2

1. The term contract is defined as “an agreement enforceable by law” in section__of Indian Contract Act, 1872.

a.2(e)b. 2(h)c. 2(d)d. 2(g)

1. The term contract is defined as “an agreement enforceable by law” in section__of Indian Contract Act, 1872.

a.2(e)b. 2(h)c. 2(d)d. 2(g)

2. Which of the following statements is false?a. Consideration must be adequate.

b. Consideration may be an act, abstinence or a return promise.

c. Consideration must be real.

d. Consideration must not be illegal, immoral or opposed to public policy.

2. Which of the following statements is false?

a. Consideration must be adequate.

b. Consideration may be an act, abstinence or a return promise.

c. Consideration must be real.

d. Consideration must not be illegal, immoral or opposed to public policy.

3. Inserting a coin in the slot of a weighing machine installed at the railway station is an example of

a. Implied acceptanceb. Express acceptancec. No acceptanced.Offer.

3. Inserting a coin in the slot of a weighing machine installed at the railway station is an example of

a. Implied acceptanceb. Express acceptancec. No acceptanced.Offer.

4. Under which of the following instances, does the offer lapse? a. If it is revoked by the offeror at any time before its acceptance.b. If the offeror/offeree dies/becomes insane & the other party knows it before acceptance.c. If the offer is not accepted within the specified time or within a reasonable time.d. All of the above.

4. Under which of the following instances, does the offer lapse? a. If it is revoked by the offeror at any time before its acceptance.b. If the offeror/offeree dies/becomes insane & the other party knows it before acceptance.c. If the offer is not accepted within the specified time or within a reasonable time.d. All of the above.

5. 'A' accepts 'B's invitation to dinner by phone. This is not a contract as

a. There is no consensus between the two parties

b. Acceptance is given orallyc. There is no intention to create a legal relationshipd. Both (b) and (c) above

5. 'A' accepts 'B's invitation to dinner by phone. This is not a contract as

a. There is no consensus between the two parties

b. Acceptance is given orallyc. There is no intention to create a legal relationshipd. Both (b) and (c) above

6. Promises forming consideration for each other are known as—

a. Independent promisesb. Dependent promisesc. Reciprocal promisesd. Mutual promises

6. Promises forming consideration for each other are known as—

a. Independent promisesb. Dependent promisesc. Reciprocal promisesd. Mutual promises

7. An agreement made under coercion, renders the contract

a. Validb. Voidc. Voidabled. Illegale. Unenforceable.

7. An agreement made under coercion, renders the contract

a. Validb. Voidc. Voidabled. Illegale. Unenforceable.

8. Which of the following is/are not the essential elements of a valid offer?

a. Offerer must have an intention to be bound by his offer.

b. Must be definite.c. Offer must be made to a specific person/party and not to public at large.d. Both (a) and (c) above.

8. Which of the following is/are not the essential elements of a valid offer?

a. Offerer must have an intention to be bound by his offer.

b. Must be definite.c. Offer must be made to a specific person/party and not to public at large.d. Both (a) and (b) above.

9. A Contract entered by mistake of law in India is

a. Validb. Voidc. Voidabled. Unlawfule. Illegal.

9. A Contract entered by mistake of law in India is

a. Validb. Voidc. Voidabled. Unlawfule. Illegal.

10. A proposal when accepted becomes

a. Offerb. Contractc. Promised. Agreement

10. A proposal when accepted becomes

a. Offerb. Contractc. Promised. Agreement

11. A contract creates

a. Rights in personamb. Rights in remc. Only rights and no obligationsd. Only obligation and no rights

11. A contract creates

a. Rights in personamb. Rights in remc. Only rights and no obligationsd. Only obligation and no rights

12. Which of the following agreements is/are valid?

a. Agreement in restraint of legal proceedings,

b. Agreement curtailing period of limitation.

c. Agreement to stiffling prosecution.

d. Agreement by an partner with his partners not to carry on any business other than that of firm while he is a partner.

12. Which of the following agreements is/are valid?

a. Agreement in restraint of legal proceedings,

b. Agreement curtailing period of limitation.

c. Agreement to stiffling prosecution.

d. Agreement by an partner with his partners not to carry on any business other than that of firm while he is a partner.

13. Under which modes is a contract said to have been discharged by operation of law?

a. Performance of the contract by both the parties.

b. Breach of contract by either of the parties.

c. Lapse of time in performance of the contract.

d. Insolvency of either of the parties.

13. Under which modes is a contract said to have been discharged by operation of law?

a. Performance of the contract by both the parties.

b. Breach of contract by either of the parties.

c. Lapse of time in performance of the contract.

d. Insolvency of either of the parties.

14. Which of the following relationships do not raise the presumption of undue influence?

a. Doctor and Patient,b. Debtor and Creditor,c. Trustee and Beneficiary,d. Landlord and Tenant,e. Both (b) and (d) above.

14. Which of the following relationships do not raise the presumption of undue influence?

a. Doctor and Patient,b. Debtor and Creditor,c. Trustee and Beneficiary,d. Landlord and Tenant,e. Both (b) and (d) above.

15. A minor’s agreement is void. This proposition is made in

a. Nihal Chand Vs. Jan Khan

b. Sreekrishnan Vs. Kurukshethra University

c. Mohari Beebi Vs. Dharmodas ghosh

d. Nanjappa Vs. Muthuswamy

15. A minor’s agreement is void. This proposition is made in

a. Nihal Chand Vs. Jan Khan

b. Sreekrishnan Vs. Kurukshethra University

c. Mohari Beebi Vs. Dharmodas ghosh

d. Nanjappa Vs. Muthuswamy

16. 'A' agreed to sell his car to 'B'. His consent was given at gun point, contract is void as it involves

a. Undue influenceb. Compulsionc. Coerciond. Extortion

16. 'A' agreed to sell his car to 'B'. His consent was given at gun point, contract is void as it involves

a. Undue influenceb. Compulsionc. Coerciond. Extortion

17. The contract entered with a lunatic during the times of his sound mind is

a. Validb. Voidc. Void ab initiod. Voidable

17. The contract entered with a lunatic during the times of his sound mind is

a. Validb. Voidc. Void ab initiod. Voidable

18. 'A' took up the responsibility of educating 'B' who was a minor. Which of the following is true?

a. 'B' is not liable to reimburse A and can claim exemption as he is a minor,

b. The contract is void, c. The minor is liable out of his property to reimburse A.

d. 'A' can rescind the contract.

18. 'A' took up the responsibility of educating 'B' who was a minor. Which of the following is true?

a. 'B' is not liable to reimburse A and can claim exemption as he is a minor,

b. The contract is void, c. The minor is liable out of his property to reimburse A.

d. 'A' can rescind the contract.

19. An agreement which is enforceable by law at the option of one or more of the parties, but not at the option of the other or others is

a. Void agreementb. Voidable contract c. Valid contractd. Nudum pactum

19. An agreement which is enforceable by law at the option of one or more of the parties, but not at the option of the other or others is

a. Void agreementb. Voidable contract c. Valid contractd. Nudum pactum

20. An agreement is—

a. Offerb. Offer + acceptance c. Offer + acceptance + consideration

d. Contract

20. An agreement is—

a. Offerb. Offer + acceptance c. Offer + acceptance + consideration

d. Contract

21. There is a counter-offer when—

a. the offeree gives conditional acceptance

b. the offeror makes a fresh offerc. the offeree makes some queryd. the offeree accepts it.

21. There is a counter-offer when—

a. the offeree gives conditional acceptance

b. the offeror makes a fresh offerc. the offeree makes some queryd. the offeree accepts it.

22. A agrees to pay B Rs. 1000/- and B promises to bring for A stars from heaven. The agreement is

a. void b. validc. voidable d. void ab initio

22. A agrees to pay B Rs. 1000/- and B promises to bring for A stars from heaven. The agreement is

a. void b. validc. voidable d. void ab initio

23. ‘Consensus ad-idem’ means—

a. General consensus b. Meeting of minds upon the same thing in the same sense

c. Reaching an agreement d. All the above

23. ‘Consensus ad-idem’ means—

a. General consensus b. Meeting of minds upon the same thing in the same sense

c. Reaching an agreement d. All the above

24. In a contract induced by fraud, the defrauded party

a. Cannot rescind the contractb. Cannot rescind the contract but can sue for damages

c. Cannot sue for damagesd. Can insist that he shall be put in a position in which he would have been if the representation made had been true

24. In a contract induced by fraud, the defrauded party

a. Cannot rescind the contractb. Cannot rescind the contract but can sue for damages

c. Cannot sue for damagesd. Can insist that he shall be put in a position in which he would have been if the representation made had been true

25. When a person positively asserts that a fact is true when his information does not warrant it to be so, though he believes it to be true, there is—

a. Misrepresentationb. Fraudc. Undue influenced. Coercion

25. When a person positively asserts that a fact is true when his information does not warrant it to be so, though he believes it to be true, there is—

a. Misrepresentationb. Fraudc. Undue influenced. Coercion

26. A bid at an auction sale is

a. An implied offer to buyb. An express offer to buyc. An invitation to offer to buyd. An invitation to come to bid

26. A bid at an auction sale is

a. An implied offer to buyb. An express offer to buyc. An invitation to offer to buyd. An invitation to come to bid

27. Consideration must move at the desire of—

a. the promisorb. the promiseec. Promisor or any third partyd. both the promisor and the promisee

27. Consideration must move at the desire of—

a. the promisorb. the promiseec. Promisor or any third partyd. both the promisor and the promisee

28. A contract which is wholly performed by both the parties is called as

a. Unilateral contractb. Bilateral contractc. Executed contractd. Executory contract

28. A contract which is wholly performed by both the parties is called as

a. Unilateral contractb. Bilateral contractc. Executed contractd. Executory contract

29. When an offer is made to world at large, it is called General Offer, this preposition can be seen in

a. Carlill v. Carbolic Smoke Ball Caseb. Taylor v. Portingtonc. Mohiri Beebi v. Dharmodas Ghosed. Harris v. Nickerson

29. When an offer is made to world at large, it is called General Offer, this preposition can be seen in

a. Carlill v. Carbolic Smoke Ball Caseb. Taylor v. Portingtonc. Mohiri Beebi v. Dharmodas Ghosed. Harris v. Nickerson

30. Competency to contract means—

a. age of the partiesb. soundness of mind of the partiesc. both age & soundness of mindd. intelligence of the parties

30. Competency to contract means—

a. age of the partiesb. soundness of mind of the partiesc. both age & soundness of mindd. intelligence of the parties

31. Which is an exception to the rule that "an agreement in restraint of trade is void"?

a. Agreements restricting personal liberty. b. Agreement in restraint of legal proceedings. c. Agreement in restraint of carrying of trade after sale of goodwill. d. Agreements of trading with enemy.

31. Which is an exception to the rule that "an agreement in restraint of trade is void"?

a. Agreements restricting personal liberty. b. Agreement in restraint of legal proceedings. c. Agreement in restraint of carrying of trade after sale of goodwill. d. Agreements of trading with enemy.


a. A minor cannot be adjudged insolvent,b. A minor may enter into contract of apprenticeship,

c. A minor can be an agent of a principal,d. A minor can be one of the partners on par with others.


a. A minor cannot be adjudged insolvent,b. A minor may enter into contract of apprenticeship,

c. A minor can be an agent of a principal,d. A minor can be one of the partners on par with others.

33. In which of the following cases in a contract stands discharged by operation of law?

a. By express consent, b. By novation of terms of contract, c. By unauthorized alteration of terms of contract,d. By destruction of subject matter.

33. In which of the following cases in a contract stands discharged by operation of law?

a. By express consent, b. By novation of terms of contract, c. By unauthorized alteration of terms of contract,d. By destruction of subject matter.

34. Considerations & objects are unlawful when it is

a. Fraudulentb. forbidden by law or defeat provision of any law

c. is immoral & against the public policy

d. all the above

34. Considerations & objects are unlawful when it is

a. Fraudulentb. forbidden by law or defeat provision of any law

c. is immoral & against the public policy

d. all the above

35. Which is an exception to the rule that an agreement without consideration is void?

a. Promise to pay a time barred debt.b. Any agreement entered with love and

affection.c. Any agreement entered with respect to

agency. d. All of the above.

35. Which is an exception to the rule that an agreement without consideration is void?

a. Promise to pay a time barred debt.b. Any agreement entered with love and

affection.c. Any agreement entered with respect to

agency. d. All of the above.

36. In a contract where time is not specified for performance, the promisor can perform the contract

a. Any time b. within the shortest time c. within a reasonable timed. none of the above

36. In a contract where time is not specified for performance, the promisor can perform the contract

a. Any time b. within the shortest time c. within a reasonable timed. none of the above

37. The measure of damages in case of breach of a contract is the difference between the—

a. contract price and the market price at the date of breachb. contract price and the price fixed by Courtc. contract price and the maximum market price during the term of contractd. contract price and the price at which the plaintiff might have sold the goods

37. The measure of damages in case of breach of a contract is the difference between the—

a. contract price and the market price at the date of breachb. contract price and the price fixed by Courtc. contract price and the maximum market price during the term of contractd. contract price and the price at which the plaintiff might have sold the goods

38. Suit upon QUANTUN MERUIT means

a. As much as damaged b. As much as assess c. As much as earned d. As much as credited

38. Suit upon QUANTUN MERUIT means

a. As much as damaged b. As much as assess c. As much as earned d. As much as credited

39. When two or more persons have made a joint promise, then unless a contrary intention appears from the contract, all such persons must fulfil the promise—

a. Jointly b. Severally c. Jointly and severally d. Jointly or severally

39. When two or more persons have made a joint promise, then unless a contrary intention appears from the contract, all such persons must fulfil the promise—

a. Jointly b. Severally c. Jointly and severally d. Jointly or severally

40. An agreement not to raise the plea of limitation is—

a. valid & bindingb. voidc. voidabled. illegal

40. An agreement not to raise the plea of limitation is—

a. valid & bindingb. voidc. voidabled. illegal

41. A contingent contract to do or not to do anything on the happening of an uncertain future event —

a. becomes enforceable only on the happening of that event

b. is never enforceable c. becomes enforceable in the immediate possibility

of happening of that event. d. enforceable since the time of making it









42. Specific performance may be ordered by the Court when—

a. The contract is voidableb. Damages are an adequate remedyc. Damages are not an adequate remedyd. The court can grant recission of contract

42. Specific performance may be ordered by the Court when—

a. The contract is voidableb. Damages are an adequate remedyc. Damages are not an adequate remedyd. The court can grant recission of contract

43. If a new contract is substituted in place of an existing contract it is called—

a. Alterationb. Rescissionc. Novationd. Waiver

43. If a new contract is substituted in place of an existing contract it is called—

a. Alterationb. Rescissionc. Novationd. Waiver

44. A Quasi-contract

a. is a contractb. is an agreementc. has only a legal obligation. d. is none of these

44. A Quasi-contract

a. is a contractb. is an agreementc. has only a legal obligation. d. is none of these

45. A finder of lost goods is a—

a. Bailor b. Bailee c. True owner d. Thief

45. A finder of lost goods is a—

a. Bailor b. Bailee c. True owner d. Thief

46. The Court may grant rescission where the contract is—

a. voidable at the option of the plaintiffb. voidc. unenforceable d. illegal

46. The Court may grant rescission where the contract is—

a. voidable at the option of the plaintiffb. voidc. unenforceable d. illegal

47. Joint promisors can—

a. not to compel each other to contribute equally

b. compel each other to contribute equallyc. cannot compel each other to contributed. none of the above

47. Joint promisors can—

a. not to compel each other to contribute equally

b. compel each other to contribute equallyc. cannot compel each other to contributed. none of the above

48. Damages awarded to compensate the injured party for the actual amount of loss suffered by him for breach of contract are called __________.

a. Ordinary damages b. Special damagesc. Vindictive damages d. Nominal damages

48. Damages awarded to compensate the injured party for the actual amount of loss suffered by him for breach of contract are called __________.

a. Ordinary damages b. Special damagesc. Vindictive damages d. Nominal damages

49. Damages which an aggrieved party claim, besides general damages for any loss he has suffered owing to special circumstances known to both the parties at the time of contracting are called

a. Vindictive damages b. Nominal damages c. General damages d. Special damages

49. Damages which an aggrieved party claim, besides general damages for any loss he has suffered owing to special circumstances known to both the parties at the time of contracting are called

a. Vindictive damages b. Nominal damages c. General damages d. Special damages

50. If time is the essence of the contract and the promisor fails to perform the contract by the specified time the contract—

a. becomes voidb. remains validc. becomes voidable at the instance of the promisee

d. becomes unenforceable.

50. If time is the essence of the contract and the promisor fails to perform the contract by the specified time the contract—

a. becomes voidb. remains validc. becomes voidable at the instance of the promisee

d. becomes unenforceable.

51. The main object of a contract of sale is —

a. transfer of possession of goodsb. transfer of property in goods from seller to buyer

c. delivery of goodsd. payment of price

51. The main object of a contract of sale is —

a. transfer of possession of goodsb. transfer of property in goods from seller to buyer

c. delivery of goodsd. payment of price

52. A contingent agreement based on an impossible event—

a. is voidb. is void till the impossibility is known

c. becomes void on the knowledge of impossibility

d. all the above

52. A contingent agreement based on an impossible event—

a. is voidb. is void till the impossibility is known

c. becomes void on the knowledge of impossibility

d. all the above

53. In indemnity the liability of indemnifier is primary and independent. In guarantee the liability of surety is.

a. Secondaryb. Primaryc. Partly bothd. None of the above

53. In indemnity the liability of indemnifier is primary and independent. In guarantee the liability of surety is.

a. Secondaryb. Primaryc. Partly bothd. None of the above

54. According to Section 13(1) of the Negotiable Instruments Act, a ‘negotiable instrument’ means–

a. a promissory note b. bill of exchange c. cheque payable either to order or to bearer

d. all the above

54. According to Section 13(1) of the Negotiable Instruments Act, a ‘negotiable instrument’ means–

a. a promissory note b. bill of exchange c. cheque payable either to order or to bearer

d. all the above

55. Conditional contracts are called ________ contracts.

a. Absolute b. Contingent c. Quasi d. None of the above

55. Conditional contracts are called ________ contracts.

a. Absolute b. Contingent c. Quasi d. None of the above

56. A contract by which one party promises to save the other from loss caused to him by the conduct of the promisor himself, or by conduct of any other person is called a “contract of--.

a. Guaranteeb. Indemnityc. Agencyd. none of the above

56. A contract by which one party promises to save the other from loss caused to him by the conduct of the promisor himself, or by conduct of any other person is called a “contract of--.

a. Guaranteeb. Indemnityc. Agencyd. none of the above

57. In a sale, there is an implied condition on the part of the seller that he—

a. has a right to sell the goodsb. is in possession of the goodsc. will have the right to selld. will acquire the goods

57. In a sale, there is an implied condition on the part of the seller that he—

a. has a right to sell the goodsb. is in possession of the goodsc. will have the right to selld. will acquire the goods

58. In the Negotiable Instrument Act there is no provision requiring a cheque to be dated.

a. true b. partly true c. false d. none of the above

58. In the Negotiable Instrument Act there is no provision requiring a cheque to be dated.


59. In case of breach of a warranty, the buyer can—

a. repudiate the contractb. claim damages onlyc. refuse to pay the priced. refuse to take delivery of the goods

59. In case of breach of a warranty, the buyer can—

a. repudiate the contractb. claim damages onlyc. refuse to pay the priced. refuse to take delivery of the goods

60. Which of the following can be drawn upon specific bankers only.

a. Cheque b. Promissory notec. Bill of exchanged. Currency note

60. Which of the following can be drawn upon specific bankers only.

a. Cheque b. Promissory notec. Bill of exchanged. Currency note

61. Crossing of a cheque effects the

a. negotiability of the chequeb. mode of payment on the chequec. both (a) and (b)d. none of the above

61. Crossing of a cheque effects the

a. negotiability of the chequeb. mode of payment on the chequec. both (a) and (b)d. none of the above

62. A guarantee can be—

a. oral b. in writingc. oral or in writingd. neither (a) or (b)

62. A guarantee can be—

a. oral b. in writingc. oral or in writingd. neither (a) or (b)

63. Consideration must be something which the promisor—

a. is already bound to do b. is not already bound to doc. may voluntarily dod. none of the above.

63. Consideration must be something which the promisor—

a. is already bound to do b. is not already bound to doc. may voluntarily dod. none of the above.

64. A condition is a stipulation which is—

a. essential to the main purpose of contract of sale

b. not essential to the main purpose of contract of sale

c. collateral to the main purpose of contract or sale

d. none of the above

64. A condition is a stipulation which is—

a. essential to the main purpose of contract of sale

b. not essential to the main purpose of contract of sale

c. collateral to the main purpose of contract or sale


65. A bill of exchange contains a/an

a. unconditional undertakingb. unconditional order c. conditional undertakingd. conditional order

65. A bill of exchange contains a/an

a. unconditional undertakingb. unconditional order c. conditional undertakingd. conditional order

66. A continuing guarantee under Section 130 of Indian Contract Act is— a. revocable absolutelyb. revocable as regards future transaction

c. irrevocable absolutelyd. either (a) or (b)

66. A continuing guarantee under Section 130 of Indian Contract Act is— a. revocable absolutelyb. revocable as regards future transaction

c. irrevocable absolutelyd. either (a) or (b)

67. Agency stands terminated by the death, insolvency or insanity of—

a. the principalb. the agentc. either the principal or the agentd. the principal and the agent both

67. Agency stands terminated by the death, insolvency or insanity of—

a. the principalb. the agentc. either the principal or the agentd. the principal and the agent both

68. Goods displayed in a shop with a price label is—

a. an offerb. an invitation to offerc. a counter offerd. none of the above

68. Goods displayed in a shop with a price label is—

a. an offerb. an invitation to offerc. a counter offerd. none of the above

69. A valid guarantee can be given—

a. irrespective of any debtb. only if there is no principal debtc. only if there is a principal debtd. both (a) & (c)

69. A valid guarantee can be given—

a. irrespective of any debtb. only if there is no principal debtc. only if there is a principal debtd. both (a) & (c)

70. Bailment involves change of

a. Possessionb. Ownershipc. both of themd. none of the above

70. Bailment involves change of

a. Possessionb. Ownershipc. both of themd. none of the above

71. Surety is a person—

a. who gives the guaranteeb. to whom the guarantee is givenc. in respect of whose default the guarantee is given


71. Surety is a person—



72. Creditor is a person—



72. Creditor is a person—



73. Pledge made by a mercantile agent is valid

a. trueb. partly truec. falsed. none of the above

73. Pledge made by a mercantile agent is valid


74. Surety stands discharged by—

a. an agreement between the creditor & a third party for not to sue the principal debtor

b. an agreement between the creditor and the principal debtor

c. both (a) & (b) aboved. neither (a) nor (b)

74. Surety stands discharged by—

a. an agreement between the creditor & a third party for not to sue the principal debtor

b. an agreement between the creditor and the principal debtor

c. both (a) & (b) aboved. neither (a) nor (b)

75. A agents right of particular lien under Section 170 of Indian Contract Act can be exercised—

a. for general balance of accounts and the charges on account of skill employed & expenses incurredb. to retain the goods until the receipt of remuneration for services incurred by himc. for charges on account of labour or skill employed or expenses incurredd. either (a) or (c)

75. A agents right of particular lien under Section 170 of Indian Contract Act can be exercised—

a. for general balance of accounts and the charges on account of skill employed & expenses incurredb. to retain the goods until the receipt of remuneration for services incurred by himc. for charges on account of labour or skill employed or expenses incurredd. either (a) or (c)

76. ‘Bailor’ is a person—

a. to whom the goods are deliveredb. through whom the goods are delivered

c. who delivers the goodsd. who carries the goods.

76. ‘Bailor’ is a person—

a. to whom the goods are deliveredb. through whom the goods are delivered

c. who delivers the goodsd. who carries the goods.

77. On payment or performance of the liability the surety is—

a. entitled to the every security which the creditor has against the principal debtorb. vested with all the rights the creditor had against the principal debtorc. entitled to be indemnified by the principal debtord. all the above

77. On payment or performance of the liability the surety is—

a. entitled to the every security which the creditor has against the principal debtorb. vested with all the rights the creditor had against the principal debtorc. entitled to be indemnified by the principal debtord. all the above

78. Under Section 146 of Indian Contract Act, the co-sureties are liable to contribute—

a. according to their capacity b. equallyc. unequally d. either (a) or (b) or (c)

78. Under Section 146 of Indian Contract Act, the co-sureties are liable to contribute—

a. according to their capacity b. equallyc. unequally d. either (a) or (b) or (c)

79. Surety on payment or performance of his liability, against the principal debtor—

a. has right like creditor had against principal debtor

b. has right of subrogationc. both (a) & (b)d. either (a) or (b)

79. Surety on payment or performance of his liability, against the principal debtor—

a. has right like creditor had against principal debtor

b. has right of subrogationc. both (a) & (b)d. either (a) or (b)

80. ‘Bailee’ is a person—

a. to whom the goods are deliveredb. through whom the goods are delivered.

c. who delivers the goodsd. any of the above depending on the circumstances

80. ‘Bailee’ is a person—

a. to whom the goods are deliveredb. through whom the goods are delivered.

c. who delivers the goodsd. any of the above depending on the circumstances

81. A pawnee, in the event of default in payment of debt by the pawner, has a right to—

a. retain the goods pledged as collateral security

b. sue the pawnerc. sell the goods pledgedd. all the above

81. A pawnee, in the event of default in payment of debt by the pawner, has a right to—

a. retain the goods pledged as collateral security

b. sue the pawnerc. sell the goods pledgedd. all the above

82. Surety is entitled to be indemnified by the principal debtor in respect of a sum—

a. rightfully paidb. wrongfully paid c. paid rightfully or wrongfully d. all the above

82. Surety is entitled to be indemnified by the principal debtor in respect of a sum—

a. rightfully paidb. wrongfully paid c. paid rightfully or wrongfully d. all the above

83. Under the contract of guarantee, a creditor can avail his remedies against the principal debtor as well as the surety—


83. Under the contract of guarantee, a creditor can avail his remedies against the principal debtor as well as the surety—


84. Bailee is bound to take care of goods as—

a. an expert b. a lay man c. a man of ordinary prudenced. both (b) & (c)

84. Bailee is bound to take care of goods as—

a. an expert b. a lay man c. a man of ordinary prudenced. both (b) & (c)

85. If the bailee does any act inconsistent with the conditions of bailment, with regard to goods the contract becomes—

a. void b. voidable at the option of the bailor c. voidable at the option of the bailee d. valid.

85. If the bailee does any act inconsistent with the conditions of bailment, with regard to goods the contract becomes—

a. void b. voidable at the option of the bailor c. voidable at the option of the bailee d. valid.

86. Any act is done, without the authority or knowledge of a person on behalf of that person, that person—

a. can disown the actb. can ratify the actc. can disown the act but cannot ratify the same

d. either ratify or disown the act.

86. Any act is done, without the authority or knowledge of a person on behalf of that person, that person—

a. can disown the actb. can ratify the actc. can disown the act but cannot ratify the same

d. either ratify or disown the act.

87. After the expiry of time or accomplishment of purpose of bailment, the bailee is to—

a. return the goods only on demandb. pay the money equivalentc. pay the equivalent in other commodity.d. return the goods without demand

87. After the expiry of time or accomplishment of purpose of bailment, the bailee is to—

a. return the goods only on demandb. pay the money equivalentc. pay the equivalent in other commodity.d. return the goods without demand

88. Authority of an agent—

a. has to be expressedb. has to be implied c. can be expressed or impliedd. either (a)/(b)/(c)

88. Authority of an agent—

a. has to be expressedb. has to be implied c. can be expressed or impliedd. either (a)/(b)/(c)

89. Agency stands terminated by—

a. by the frustration of the objects of agency due to impossibilityb. by happening of an event rendering the object of the agency unlawfulc. the destruction of subject matter of agencyd. none of the above

89. Agency stands terminated by—

a. by the frustration of the objects of agency due to impossibilityb. by happening of an event rendering the object of the agency unlawfulc. the destruction of subject matter of agencyd. none of the above

90. The principle of agency of necessity is— a. unknown to the law of agencyb. applicable in normal situations c. applicable in emergent situation where the communication with the principal is not possible

d. applicable in emergent situations where communication with the principal is possible

90. The principle of agency of necessity is— a. unknown to the law of agencyb. applicable in normal situations c. applicable in emergent situation where the communication with the principal is not possible

d. applicable in emergent situations where communication with the principal is possible

91. Pledge under Section 172 of the Indian Contract Act has been defined as bailment of goods as a security for payment of a debt or for performance of a promise—


91. Pledge under Section 172 of the Indian Contract Act has been defined as bailment of goods as a security for payment of a debt or for performance of a promise—


92. In pledge, the general property or ownership in ‘goods’

a. cannot be transferred to the b. continues in pledgerc. transferred to the pledged. either (a) or (b)

92. In pledge, the general property or ownership in ‘goods’

a. cannot be transferred to the b. continues in pledgerc. transferred to the pledged. either (a) or (b)

93. If a sale is by sample as well as by description, the implied condition is that the goods shall correspond with—

a. sampleb. description c. both sample and description d. either sample or description

93. If a sale is by sample as well as by description, the implied condition is that the goods shall correspond with—

a. sampleb. description c. both sample and description d. either sample or description

94. The pawnee has a right to retain the goods pledged for payment of—

a. debt interest & all necessary expenses in respect of goods pledgedb. interest & necessary expenses in respect of goods other than the one pledgedc. debt other than the debt in respect of goods pledgedd. all the above

94. The pawnee has a right to retain the goods pledged for payment of—

a. debt interest & all necessary expenses in respect of goods pledgedb. interest & necessary expenses in respect of goods other than the one pledgedc. debt other than the debt in respect of goods pledgedd. all the above

95. Principal is a person employed to do any act for another or to represent in dealings with third person—


95. Principal is a person employed to do any act for another or to represent in dealings with third person—


96. Principal can revoke the authority given to the agent at any time—

a. time before the authority has been exercisedb. time after the authority has been partly exercised without liability towards the acts donec. after the authority has been fully exercisedd. all the above

96. Principal can revoke the authority given to the agent at any time—

a. time before the authority has been exercisedb. time after the authority has been partly exercised without liability towards the acts donec. after the authority has been fully exercisedd. all the above

97. CAVEAT EMPTOR means a. Let the agent beware b. Let the seller beware c. Let the buyer bewared. let the principal beware

97. CAVEAT EMPTOR means a. Let the agent beware b. Let the seller beware c. Let the buyer bewared. let the principal beware

98. If a price is not determined by the parties in a sale contract the buyer is bound to pay—

a. the price demanded by the sellerb. a reasonable pricec. the price which the buyer thinks is reasonable


98. If a price is not determined by the parties in a sale contract the buyer is bound to pay—

a. the price demanded by the sellerb. a reasonable pricec. the price which the buyer thinks is reasonable


99. For the purpose of pledge, delivery of possession of goods—

a. may be constructive b. either actual or constructivec. has to be actuald. may be symbolic

99. For the purpose of pledge, delivery of possession of goods—

a. may be constructive b. either actual or constructivec. has to be actuald. may be symbolic

100. Goods may be pledged by—

a. the owner of goodsb. the servant in the absence of ownerc. the person who is left with the goods for some special purpose

d. all the above.

100. Goods may be pledged by—

a. the owner of goodsb. the servant in the absence of ownerc. the person who is left with the goods for some special purpose

d. all the above.

Thank you

All the best

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Business Law