A contract is formed when the acceptor

has done something to signify his intention.

A and B agree that A shall pay ₹1000 for which B shall afterwards deliver to either rice orsmuggled opium. In this case

the first agreement is void and the second voidable.

the first is voidable and the second is void.

the first is valid and the second is vo

‘Goods’ as defined in Sale of Goods Act will include

goodwill, copyright, patent and foreign currency.

rare coins, goodwill and money.

growing crops agreed to be severed before sale, old coins and copyrights.

goodwill, copyright, patent and foreign currency.

Sections 4 and 5 of the Ind ian Contract Act provide for c ommunication of offer and acceptance and revocation thereof. In this relation, which one of the fo llowing is not correct?

Communication of offer is complete when it reaches the offeree.

Revocation of acceptance is complete when acceptance is posted in favour of the proposer.

A proposal may be revoked any time before communication of acceptance.

Acceptance may be revoked any time before communication of acceptance.

Ordinary damages will be awarded in cases where

the loss is remotely connected with the breach of contract.

the loss naturally flows from the breach of contract.

the loss is remotely connected with the breach of contract.

the loss is unusual and arises out of special circumstances peculiar to the contract.

The inadequacy of consideration may be taken into account by the court

in determining the question whether the consent of the promisor was freely given.

when the promisor has not performed his promise.

Conditions are stipulations

collateral to the main purpose of the contract.

Essential to the main purpose of the contract.

collateral to the main purpose of the contract.

Merchantable quality of goods means

the quality should be of high standard.

that the goods are commercially saleable.

they are fit for the purpose for which they are generally used.

the quality should be of high standard.

When a director voluntarily remains absent from the three consecutive meetings of the Board ofDirectors, and

He become liable to be punished with @Rs.500 for every default

He is disqualified for becoming a director of any company

Registered Office clause of memorandum of Association contain‐‐‐‐‐‐‐‐

The name of Registrar of companies

The name of City/ Town only and not that of the state

The name of the state in which registered office of the company is to situate

During which of the following circumstances can the veil be lifted by the court?

When the company tries to avoid certain legal obligation

In case of a company limited by guarantee, the liability of the members can be enforced

At any time when the company so decide

Only at the time of winding up of the company

At any time when the company so decide

Only by an order of Registrar of companies

The company is dissolved when the tribunal passes in order of dissolution and the Tribunal shelfpass such order ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

Immediately after the winding up order

When the affairs of the company have been completely wound up

Immediately after the winding up order

At the instance of Central government

At the distance of company law Board.

A public company having a share capital, becomes entitled to commence business only afterobtaining a further certificate known as a ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

Certificate of commence business

370 + Mcqs in Law in UGC-NET Page 4 McqOptions

151.	A contract is formed when the acceptor
A.	has done something to signify his intention.
B.	makes his mind to do so.
C.	reads the offer
D.	all of the above
Answer» B. makes his mind to do so.

Discussion

152.	A and B agree that A shall pay ₹1000 for which B shall afterwards deliver to either rice orsmuggled opium. In this case
A.	the first agreement is void and the second voidable.
B.	the first is voidable and the second is void.
C.	the first is valid and the second is vo
Answer» D.

Discussion

153.	‘Goods’ as defined in Sale of Goods Act will include
A.	rare coins, goodwill and money.
B.	growing crops agreed to be severed before sale, old coins and copyrights.
C.	goodwill, copyright, patent and foreign currency.
D.	Both (B) and (C)
Answer» C. goodwill, copyright, patent and foreign currency.

Discussion

154.	A makes a contract with B to buy his house for ₹50,000 if he is able to secure to bank loanfor that amount. The contract is
A.	void for vagueness.
B.	wagering contract.
C.	contingent contract.
D.	voidable contract.
Answer» B. wagering contract.

Discussion

155.	Sections 4 and 5 of the Ind ian Contract Act provide for c ommunication of offer and acceptance and revocation thereof. In this relation, which one of the fo llowing is not correct?
A.	Communication of offer is complete when it reaches the offeree.
B.	Revocation of acceptance is complete when acceptance is posted in favour of the proposer.
C.	A proposal may be revoked any time before communication of acceptance.
D.	Acceptance may be revoked any time before communication of acceptance.
Answer» E.

Discussion

156.	Asim unlawfully detains Anil to obtain his va cant flat at Safdarjang enclave (valuing 50,00,000) at 40,00,000. This is a case of
A.	Undue influence
B.	Coercion
C.	Fraud
D.	By Force
Answer» C. Fraud

Discussion

157.	Ordinary damages will be awarded in cases where
A.	the loss naturally flows from the breach of contract.
B.	the loss is remotely connected with the breach of contract.
C.	the loss is unusual and arises out of special circumstances peculiar to the contract.
D.	None of the above
Answer» B. the loss is remotely connected with the breach of contract.

Discussion

158.	The term “ a cheque in the ele ctronic form” is defined in the Negotiable Instruments Act, 1881-under
A.	Section 6(a)
B.	Section 6(1)(a)
C.	Explanation 1(a) of Section 6
D.	Section 6A
Answer» D. Section 6A

Discussion

159.	The inadequacy of consideration may be taken into account by the court
A.	in determining the question whether the consent of the promisor was freely given.
B.	always in all cases.
C.	when the parties complain.
D.	when the promisor has not performed his promise.
Answer» B. always in all cases.

Discussion

160.	B, having discovered a vein of ore on the estate of A, adopts means to conceal, and does conceal, the existence of the ore from A. Owing to A’s i gnorance B is enabled to buy the estate at a low price. The contract is:
A.	Valid
B.	Void
C.	Voidable at the option of A
D.	Invalid
Answer» D. Invalid

Discussion

161.	In an auction sale, the property shall be sold to be
A.	Lowest bidder
B.	Highest bidder
C.	Any bidder
D.	All bidders
Answer» C. Any bidder

Discussion

162.	An offer comes to an end by
A.	Revocation
B.	Acceptance
C.	Communication
D.	None of the above
Answer» B. Acceptance

Discussion

163.	Where by the co ntract, a promisor is to perfor m his prom ise without application by the promise and no time for performance is specified, the engagement must be performed within a reasonable time. The question “What i s a reasonable time” is in e ach particular case is
A.	a question of fact
B.	a question of law
C.	a question of general custom
D.	All of the above
Answer» E.

Discussion

164.	Conditions are stipulations
A.	Essential to the main purpose of the contract.
B.	collateral to the main purpose of the contract.
C.	Either (A) or (B)
D.	Neither (A) nor (B)
Answer» B. collateral to the main purpose of the contract.

Discussion

165.	Cross offer does not constitute a contract because
A.	there is no acceptance.
B.	there is implied acceptance.
C.	crossing implies cancellation.
D.	it amounts to counter offer.
Answer» B. there is implied acceptance.

Discussion

166.	Merchantable quality of goods means
A.	that the goods are commercially saleable.
B.	they are fit for the purpose for which they are generally used.
C.	Both (A) and (B)
D.	the quality should be of high standard.
Answer» D. the quality should be of high standard.

Discussion

167.	The statement in lieu of prospectus is drafted in accordance with the particulars set in part I of the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ the Act
A.	Schedule I
B.	Schedule IV
C.	Schedule III
D.	Schedule II
Answer» E.

Discussion

168.	East India Company is an example of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ company
A.	Chartered
B.	Statutory
C.	Registered
D.	Foreign.
Answer» B. Statutory

Discussion

169.	The shorter versions of a prospectus is also known as ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
A.	Deemed prospectus
B.	Incomplete prospectus
C.	Abridged prospectus
D.	Red Herring Prospectus
Answer» D. Red Herring Prospectus

Discussion

170.	When a director voluntarily remains absent from the three consecutive meetings of the Board ofDirectors, and
A.	He become liable to be punished with @Rs.500 for every default
B.	He is disqualified for becoming a director of any company
C.	His office falls vacant
D.	None of the above
Answer» D. None of the above

Discussion

171.	A company is said to be incorporated when it is registered with registrar of the ‐‐‐‐‐‐‐‐‐‐‐‐ company
A.	Licensing
B.	Government
C.	Existing
D.	Joint stock
Answer» E.

Discussion

172.	‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ called for dealing with some urgent special business which cannot e postponed till the next annual general meeting.
A.	Extra ordinary general meeting
B.	Ordinary general meeting
C.	Class meeting
D.	None of the above.
Answer» B. Ordinary general meeting

Discussion

173.	Registered Office clause of memorandum of Association contain‐‐‐‐‐‐‐‐
A.	The complete postal address
B.	The name of Registrar of companies
C.	The name of City/ Town only and not that of the state
D.	The name of the state in which registered office of the company is to situate
Answer» E.

Discussion

174.	Holding company is defined in section ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the companies Act.
A.	4(4)
B.	2(2)
C.	3(4)
D.	3(1)
Answer» B. 2(2)

Discussion

175.	The person of group who being a company into existence are called‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
A.	A firm
B.	Incorporation
C.	Promoters
D.	Promotion
Answer» D. Promotion

Discussion

176.	Minimum number of directors in private company is ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
A.	3
B.	2
C.	4
D.	1
Answer» C. 4

Discussion

177.	During which of the following circumstances can the veil be lifted by the court?
A.	Where the Co acts as an agent
B.	Where a fund is noticed
C.	When the company tries to avoid certain legal obligation
D.	All of the above.
Answer» E.

Discussion

178.	A foreigner can become a member of a company registered in India but permission of
A.	SEBI
B.	High Court
C.	RBI
D.	Supreme court
Answer» D. Supreme court

Discussion

179.	‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a person who has signed company’s memorandum of association
A.	Individual
B.	Corporate body
C.	Member
D.	Legal person
Answer» D. Legal person

Discussion

180.	The privilege of limited liability was introduced in the Indian Company Law, in the year of
A.	1850
B.	1857
C.	1927
D.	1956
Answer» C. 1927

Discussion

181.	Corporal property is ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
A.	Equable
B.	Visible
C.	Tangible
D.	Flexible
Answer» D. Flexible

Discussion

182.	Corporate veil ensures ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the company
A.	Protection
B.	Legal Immunity
C.	Both A and B
D.	None of the above.
Answer» C. Both A and B

Discussion

183.	A person who completed 15th year and below 18 year
A.	Audit
B.	Adolescent
C.	Minor
D.	Young person
Answer» C. Minor

Discussion

184.	The statement in lieu of prospectus must be filed with the Registrar at least ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ days beforeany allotment of shares is made.
A.	15
B.	30
C.	6
D.	3
Answer» E.

Discussion

185.	The right given to a particular class of shareholders are called the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
A.	Special rights
B.	General rights
C.	Class right
D.	None of the above
Answer» D. None of the above

Discussion

186.	A Statutory company is one which incorporated by
A.	An Act of Parliament
B.	By an Act of state legislature
C.	Under the companies Act,1956
D.	By either a or b.
Answer» E.

Discussion

187.	In case of a company limited by guarantee, the liability of the members can be enforced
A.	Only at the time of winding up of the company
B.	At any time when the company so decide
C.	Only by an order of court
D.	Only by an order of Registrar of companies
Answer» B. At any time when the company so decide

Discussion

188.	Minimum number of directors in public company is ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
A.	3
B.	2
C.	4
D.	1
Answer» B. 2

Discussion

189.	The exception to the doctrine of constructive notice is provided in ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
A.	Lifting the corporate veil
B.	Doctrine of indoor management
C.	Doctrine of ultra virus
D.	None of these
Answer» C. Doctrine of ultra virus

Discussion

190.	Sec. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the companies Act deals with the meaning and provisions related to theshelf prospectus.
A.	50
B.	4(1)
C.	2(2)
D.	60
Answer» E.

Discussion

191.	The company is dissolved when the tribunal passes in order of dissolution and the Tribunal shelfpass such order ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
A.	When the affairs of the company have been completely wound up
B.	Immediately after the winding up order
C.	At the instance of Central government
D.	At the distance of company law Board.
Answer» B. Immediately after the winding up order

Discussion

192.	Mention one right that the proxy enjoys during a meeting?
A.	Right to attend the meeting
B.	Right to poll
C.	Right to vote
D.	None of these
Answer» D. None of these

Discussion

193.	‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is issued by any financial constitution or bank for on e or more of issues of securitiesor class of securities specified in the prospectus.
A.	A bridged prospectus
B.	Shelf Prospectus
C.	Deemed Prospectus
D.	Red Herring Prospectus
Answer» C. Deemed Prospectus

Discussion

194.	Minutes of company meeting should e prepared with in ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the meeting
A.	21 days
B.	30 days
C.	40 days
D.	45 days
Answer» C. 40 days

Discussion

195.	On a share of Rs.200 of a company a shares holder has already paid Rs.150 . His L9iability is nowlimited to:‐
A.	200
B.	50
C.	150
Answer» C. 150

Discussion

196.	‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ vacancy is caused by resignation, death, insolvency or insanity
A.	Casual
B.	General
C.	Special
D.	None of the above
Answer» B. General

Discussion

197.	A public company having a share capital, becomes entitled to commence business only afterobtaining a further certificate known as a ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
A.	Company formation
B.	Certificate of incorporation
C.	Provisional contracts
D.	Certificate of commence business
Answer» E.

Discussion

198.	For meeting may be adjourned by ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ circumstances
A.	Quorum is not present
B.	Lack of information
C.	Balance sheet is not present
D.	None of the above
Answer» C. Balance sheet is not present

Discussion

199.	When one company controls the management of another company, the format is called a ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ company
A.	Existing
B.	Holding
C.	Subsidiary
D.	Licensed
Answer» D. Licensed

Discussion

200.	A proxy can vote only in case of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
A.	Vote
B.	Poll
C.	Election
D.	None of these.
Answer» C. Election

Discussion

Explore topic-wise MCQs in UGC-NET.

A contract is formed when the acceptor

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A makes a contract with B to buy his house for ₹50,000 if he is able to secure to bank loanfor that amount. The contract is

Sections 4 and 5 of the Ind ian Contract Act provide for c ommunication of offer and acceptance and revocation thereof. In this relation, which one of the fo llowing is not correct?

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Ordinary damages will be awarded in cases where

The term “ a cheque in the ele ctronic form” is defined in the Negotiable Instruments Act, 1881-under

The inadequacy of consideration may be taken into account by the court

B, having discovered a vein of ore on the estate of A, adopts means to conceal, and does conceal, the existence of the ore from A. Owing to A’s i gnorance B is enabled to buy the estate at a low price. The contract is:

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An offer comes to an end by

Where by the co ntract, a promisor is to perfor m his prom ise without application by the promise and no time for performance is specified, the engagement must be performed within a reasonable time. The question “What i s a reasonable time” is in e ach particular case is

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East India Company is an example of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ company

The shorter versions of a prospectus is also known as ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

When a director voluntarily remains absent from the three consecutive meetings of the Board ofDirectors, and

A company is said to be incorporated when it is registered with registrar of the ‐‐‐‐‐‐‐‐‐‐‐‐ company

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Minimum number of directors in private company is ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

During which of the following circumstances can the veil be lifted by the court?

A foreigner can become a member of a company registered in India but permission of

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a person who has signed company’s memorandum of association

The privilege of limited liability was introduced in the Indian Company Law, in the year of

Corporal property is ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

Corporate veil ensures ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the company

A person who completed 15th year and below 18 year

The statement in lieu of prospectus must be filed with the Registrar at least ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ days beforeany allotment of shares is made.

The right given to a particular class of shareholders are called the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

A Statutory company is one which incorporated by

In case of a company limited by guarantee, the liability of the members can be enforced

Minimum number of directors in public company is ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

The exception to the doctrine of constructive notice is provided in ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

Sec. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the companies Act deals with the meaning and provisions related to theshelf prospectus.

The company is dissolved when the tribunal passes in order of dissolution and the Tribunal shelfpass such order ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

Mention one right that the proxy enjoys during a meeting?

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is issued by any financial constitution or bank for on e or more of issues of securitiesor class of securities specified in the prospectus.

Minutes of company meeting should e prepared with in ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the meeting

On a share of Rs.200 of a company a shares holder has already paid Rs.150 . His L9iability is nowlimited to:‐

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ vacancy is caused by resignation, death, insolvency or insanity

A public company having a share capital, becomes entitled to commence business only afterobtaining a further certificate known as a ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

For meeting may be adjourned by ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ circumstances

When one company controls the management of another company, the format is called a ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ company

A proxy can vote only in case of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐