Business Law (MCQs) Set-2
Categories: EDUCATION
Q.1. A contract is discharged by novation which means the;
- Cancellation of the existing contract
- Change in one or more terms of the contract
- Substitution of existing contract for a new one
- None of these
Answer: (C) Substitution of existing contract for a new one
Q.2. Sometimes, a party is entitled to claim compensation in proportion to the work done by him. It is possible by a suit for;
- Damages
- Injunction
- Quantum merit
- None of these
Answer: (C) Quantum merit
Q.3. Which of the following statement is true?
- An agreement enforceable by law is a contract
- An agreement is an accepted proposal
- Both (a) and (b)
- None of these
Answer: (C) Both (a) and (b)
Q.4. As a general rule, an agreement made without consideration is;
- Void
- Voidable
- Valid
- Unlawful
Answer: (A) Void
Q.5. Which of the following persons do not fall under the category of persons of unsound mind?
- Idiot
- Lunatics
- Drunken
- Alien
Answer: (D) Alien
Q.6. A contract made by mistake about some foreign law, is;
- Void
- Valid
- Voidable
- Illegal
Answer: (A) Void
Q.7. An agreement, which prevents a person from carrying lawful business is
- Valid
- Void
- Voidable
- Contingent
Answer: (B) Void
Q.8. A contingent contract dependent on the non happening of a future uncertain event becomes void when such event
- Happens
- Does not become impossible
- Does not happen
- Both (a) and (b)
Answer: (D) Both (a) and (b)
Q.9. A party entitled to rescind contract, losses the remedy where
- He has ratified the contract
- Third party has acquired right in good faith
- Contract is not separable and recession is sought of a party only
- All of these
Answer: (D) All of these
Q.10. When offer is made to a definite person, it is known as
- General offer
- Cross offer
- Counter offer
- Special offer
Answer: (D) Special offer