Business Law (MCQs) Set-1
Categories: EDUCATION
Q.1. Where the consent of a party is obtained by misrepresentation, the contract is;
- Valid
- Void
- Voidable
- Illegal
Answer: (C) Voidable
Q.2. A agrees to pay Rs.5 lakhs to B procures an employment for A in Income Tax Department. This agreement is
- Void
- Valid
- Voidable
- Contingent
Answer: (A) Valid
Q.3. An agreement to do an illegal act(eg: sharing the earnings of smuggling business) is
- Valid
- Void
- Voidable
- Contingent
Answer: (B) Void
Q.4. LA, 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 can file a suit against D for recovery of the amount exceeding his share
- A is entitled to recover Rs.20000 each from B and C
- On payment by A, the contract is discharged and B and C are also not liable to A.
- D is not justified here and is liable to refund the entire amount to A
Answer: (B) A is entitled to recover Rs.20000 each from B and C
Q.5. Can a person who is usually of unsound, but occasionally of sound mind, make a contract?
- Yes, he can always make a contract
- Yes, but only when he is sound mind
- No, he cannot make contract
- Can't be determined
Answer: (B) Yes, but only when he is sound mind
Q.6. Which is the following is false? An acceptance:
- Must be communicated
- Must be absolute and unconditional
- Must accepted by a person having authority to accept
- May be presumed from silence of offeree
Answer: (D) May be presumed from silence of offeree
Q.7. Which is the following is false? Consideration:
- Must move at the desire of the promisor
- May move from any person
- Must be illusory
- Must be some value
Answer: (C) Must be illusory
Q.8. Consideration may be
- Past
- Present
- Future
- All of the above
Answer: (D) All of the above
Q.9. Consent is not said to be free when it is caused by
- Coercion
- Undue influence
- Fraud
- All of these
Answer: (D) All of these
Q.10. In case of illegal agreements, the collateral agreements are;
- Void
- Valid
- Voidable
- Any of these
Answer: (B) Valid