MCQOPTIONS
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MCQOPTIONS
This section includes 40 Mcqs, each offering curated multiple-choice questions to sharpen your Bachelor of Business Administration (BBA) knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
An agreement which is enforceable by law at the portion of one or more of the parties thereon but not at the option of the other or others is a : |
| A. | Valid Contract |
| B. | Void Contract |
| C. | Voidable Contract |
| D. | Illegal Contract |
| Answer» D. Illegal Contract | |
| 2. |
According section 5(2) subject to provision of any law for the time being in force a contract of sale may be |
| A. | Made in writing |
| B. | By words of mouth |
| C. | Partly in writing or partly in words of mouth |
| D. | All above ways |
| Answer» B. By words of mouth | |
| 3. |
Where the performance of a promise by one party depends on the prior performance of promise by the other party, such reciprocal promises fall under category of |
| A. | Mutual and Concurrent |
| B. | Conditional and dependent |
| C. | Mutual and independent |
| D. | Both (a) and (b) |
| Answer» C. Mutual and independent | |
| 4. |
If a cheque is refused by the State Bank of India (SBI) due to inadequacy of funds for the cheque to clear, then it is said to be |
| A. | Bounced cheque |
| B. | Cancelled cheque |
| C. | Either a or b |
| D. | Both a and b |
| Answer» B. Cancelled cheque | |
| 5. |
An agreement in restraint of legal proceedings is void. It does not cover an agreement which |
| A. | Restrict absolutely the parties from enforcing their legal rights. |
| B. | Cuts short the period of limitation |
| C. | Discharges a party from liability or extinguishes the rights of a party |
| D. | Provides for a reference to arbitration instead of court of law |
| Answer» E. | |
| 6. |
Where an agreement consists of two parts once legal and the other illegal and the legal part is separable from the illegal one, such legal part is |
| A. | Void |
| B. | Valid |
| C. | Voidable |
| D. | Illegal |
| Answer» C. Voidable | |
| 7. |
An agreement to pay money money s worth on the happening or non happening of a specified uncertain event is a |
| A. | Wagering agreement |
| B. | Contingent contract |
| C. | Quasi contract |
| D. | Uncertain agreement |
| Answer» B. Contingent contract | |
| 8. |
A contingent contract dependent on the non happening of a future uncertain event becomes void when such event |
| A. | Happens |
| B. | Does not become impossible |
| C. | Does not happen |
| D. | Both (a) and (b) |
| Answer» E. | |
| 9. |
A agrees to pay Rs.1000 to B if a certain ship returns within a year. However, the ship sinks within the year. In this case, the contract becomes |
| A. | Valid |
| B. | Void |
| C. | Voidable |
| D. | Illegal |
| Answer» C. Voidable | |
| 10. |
A contingent contract dependent on the non happening of specified uncertain event within fixed time can be enforced if the event |
| A. | Does not happen within fixed time |
| B. | Becomes impossible before the expiry of fixed time |
| C. | Happens within the fixed time |
| D. | Both (a) and (b) |
| Answer» E. | |
| 11. |
Sometimes, a person finds certain goods belonging to some persons. In such case, the finder |
| A. | Becomes the owner of the goods and can use them |
| B. | Is under a duty to trace the true owner and return the goods |
| C. | Can sell the perishable goods if true owner cannot be found |
| D. | Both (b) and (c) |
| Answer» E. | |
| 12. |
A, B and C jointly promised to pay Rs.60000 to D. A was compelled by D to pay the entire amount of Rs.60000. Here |
| A. | A can file a suit against D for recovery of the amount exceeding his share |
| B. | A is entitled to recover Rs.20000 each from B and C |
| C. | On payment by A, the contract is discharged and B and C are also not liable to A. |
| D. | D is not justified here and is liable to refund the entire amount to A |
| Answer» C. On payment by A, the contract is discharged and B and C are also not liable to A. | |
| 13. |
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 |
| A. | Voidable at the option of the other party |
| B. | Void and cannot be enforced |
| C. | Illegal for non compliance of legal terms |
| D. | Enforceable in higher court only |
| Answer» B. Void and cannot be enforced | |
| 14. |
When after the formation of a valid contract, an event happens which makes the performance of contract impossible then the contract becomes |
| A. | Void |
| B. | Voidable |
| C. | Valid |
| D. | Illegal |
| Answer» B. Voidable | |
| 15. |
The special damages ie, the damages which arise due to so a special or unusual circumstances |
| A. | Are not recoverable altogether |
| B. | Are illegal being punitive in nature |
| C. | Cannot be claimed as a matter of right |
| D. | Can be claimed as a matter of right |
| Answer» D. Can be claimed as a matter of right | |
| 16. |
When the offeree offers to qualified acceptance of the offer subject to modifications and variations he is said to have made a |
| A. | Standing, open or continuing offer |
| B. | Counter offer |
| C. | Cross offer |
| D. | Special offer |
| Answer» C. Cross offer | |
| 17. |
What is legal terminology for the doing or not doing of something which the promisor desires to be done or not done? |
| A. | Desires |
| B. | Wishes |
| C. | Considerations |
| D. | Promise |
| Answer» D. Promise | |
| 18. |
Can a person who is usually of unsound, but occasionally of sound mind, make a contract? |
| A. | Yes, he can always make a contract |
| B. | Yes, but only when he is sound mind |
| C. | No, he cannot make contract |
| D. | Can t be determined |
| Answer» C. No, he cannot make contract | |
| 19. |
A and B both believe that a particular kind of rice is being sold in the 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 |
| A. | Valid |
| B. | Void |
| C. | Voidable |
| D. | Illegal |
| Answer» B. Void | |
| 20. |
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 |
| A. | Valid |
| B. | Void |
| C. | Voidable |
| D. | Illegal |
| Answer» B. Void | |
| 21. |
A contract depend on the happening or non happening of the future uncertain event, is a |
| A. | Uncertain contract |
| B. | Contingent contract |
| C. | Void contract |
| D. | Voidable contract |
| Answer» C. Void contract | |
| 22. |
Sometimes, a party is entitled to claim compensation in proportion to the work done by him. It is possible by a suit for; |
| A. | Damages |
| B. | Injunction |
| C. | Quantum merit |
| D. | None of these |
| Answer» D. None of these | |
| 23. |
Where the seller wrongfully neglects or refuses to deliver the goods to the buyer, the buyer may sue for: |
| A. | Damages for non-delivery |
| B. | Damages for non-acceptance |
| C. | Specific performance |
| D. | Compensation |
| Answer» B. Damages for non-acceptance | |
| 24. |
When the consent of a party is obtained by coercion undue influence, fraud or misrepresentation, the contract is; |
| A. | Void |
| B. | Voidable |
| C. | Valid |
| D. | Illegal |
| Answer» C. Valid | |
| 25. |
When one party is in a position to dominate the will of another and uses his superior position to obtain the consent of a weaker party, the consent is said to be obtained by; |
| A. | Coercion |
| B. | Undue influence |
| C. | Fraud |
| D. | Misrepresentation |
| Answer» C. Fraud | |
| 26. |
When prior to the due date of performance, the promisor absolutely refuses to perform the contract, it is known as: |
| A. | Abandonment of a contract |
| B. | Remission of contract |
| C. | Actual breach of contract |
| D. | Anticipatory breach of contract |
| Answer» E. | |
| 27. |
A contingent contract depend on the happening of the future uncertain event can be enforced when the event; |
| A. | Happens |
| B. | Becomes impossible |
| C. | Doesn t happen |
| D. | Either of these |
| Answer» B. Becomes impossible | |
| 28. |
A agrees to sell his car worth Rs. I00000 lakh to B for rs.20000 and A s consent was obtained by coercion. Here, the agreement is; |
| A. | Void |
| B. | Valid |
| C. | Voidable |
| D. | Unlawful |
| Answer» D. Unlawful | |
| 29. |
As per Section 20, the contract is void, on account of bilateral mistake of fact. But as per Section 22, if there is mistake of only one party, then the contract is; |
| A. | Void |
| B. | Valid |
| C. | Voidable |
| D. | Illegal |
| Answer» C. Voidable | |
| 30. |
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 |
| A. | A undue influence |
| B. | Fraud |
| C. | Coercion |
| D. | None of these |
| Answer» D. None of these | |
| 31. |
A wrong representation when made without any intention to deceive the other party amounts to |
| A. | Coercion |
| B. | Undue influence |
| C. | Misrepresentation |
| D. | Fraud |
| Answer» D. Fraud | |
| 32. |
An agreement made with free consent to which the consideration is lawful but inadequate is; |
| A. | Void |
| B. | Valid |
| C. | Voidable |
| D. | Unlawful |
| Answer» C. Voidable | |
| 33. |
When the consent to an agreement is obtained by coercion, the agreement is voidable at the option of |
| A. | Either party to the agreement |
| B. | A party whose consent was so obtained |
| C. | A party who obtained the consent |
| D. | None of these |
| Answer» C. A party who obtained the consent | |
| 34. |
In case of breach of contract, which of the following remedy is available to the aggrieved party? |
| A. | Suit for recission |
| B. | Suit for damages |
| C. | Suit for specific performance |
| D. | All of these |
| Answer» E. | |
| 35. |
A agrees to pay Rs.1,00,000 to B if he brings a star from the sky. This is a contingent contract and |
| A. | Illegal |
| B. | Valid |
| C. | Voidable |
| D. | Void |
| Answer» E. | |
| 36. |
Which of the following persons do not fall under the category of persons of unsound mind? |
| A. | Idiot |
| B. | Lunatics |
| C. | Drunken |
| D. | Alien |
| Answer» E. | |
| 37. |
An agreement is void if it is opposed to public policy. Which of the following is not covered by heads of public policy. |
| A. | Trading with an enemy |
| B. | Trafficking in public offices |
| C. | Marriage brokerage contracts |
| D. | Contracts to do impossible acts |
| Answer» E. | |
| 38. |
In the above question, the communication of acceptance is complete against A on 28th Dec.1998 and against B on; |
| A. | 25th Dec.1998 |
| B. | 27th Dec.1998 |
| C. | 28th Dec.1998 |
| D. | 30th Dec.1998 |
| Answer» E. | |
| 39. |
A, B and C jointly promised to pay Rs.6000 to D. Before the performance of the contract, C dies. Here the contract; |
| A. | Becomes void on C s death |
| B. | Should be performed by A and B along with C s legal representatives |
| C. | Should be performed by A and B alone |
| D. | Should be renewed between A, B and D |
| Answer» C. Should be performed by A and B alone | |
| 40. |
A agrees to pay Rs.5 lakhs to B procures an employment for A in Income Tax Department. This agreement is |
| A. | Void |
| B. | Valid |
| C. | Voidable |
| D. | Contingent |
| Answer» B. Valid | |