R.K. TALREJA COLLEGE, ULHASNAGAR - 3 CLASS: S.Y.B.Com. INTERNAL TEST 20M- QB SUBJECT: BUSINESS LAW SEMESTER III (2015-16) MCQS 1. A contract may be a. In writing b. Oral c. Partly oral, partly written d. All the above 2. Acceptance can be a. Express b. Implied c. Mental acceptance d. (a) & (b) 3. An offer may lapse by a. Rejection of the offer by the offeree b. Revocation of the offer by offeror before acceptance c. By counter offer d. All the above circumstances 4. Consideration must move at the desire of a. The promisee b. The promisor c. Both the promisor and the promisee d. Promisor or any other party 5. Consideration in a contract a. must be present only b. must be past, present and future c. may be present or future only d. must be future only 6. An agreement with or by a minor is a. Valid b. Voidable at the option of minor 7c. Voidable at the option of other party. d. Void 7. A contract of insurance is a a. Contract of Guarantee b. Contingent contract c. Wagering Contract d. Contract of Indemnity 8. A quasi - contract is a. Contract b. An agreement c. Creates only a legal obligation d. None of these 9. A finder of lost goods is a a. Bailor b. Bailee c. True owner d. Acceptor 10. A contract of indemnity is a a. Contingent contract b. Wagering agreement c. Quasi - contract d. Contract of Bailment 11. A contract of guarantee is also called a contract of a. Contingent b. Suretyship c. Promisor d. Indemnity 12. The liability of the surety is a. Absolutely b. Primary c. General d. Secondary
13. Mercantile Agent is also called a. Special Agent b. Substitute Agent c. Commercial Agent d. General Agent 14. A contract of Sale of Goods is a contract whereby the seller a. transfers the possession of goods b. transfers the property c. transfers the money d. transfer the delivery 15. In case of destruction of goods after sale, loss is borne by the a. Seller b. Creditor c. Buyer d. Third party 16. The position of a hire purchaser is that of a a. Owner b. Debtor c. Creditor d. Bailee 17. In case of breach of condition the seller a. buyer can reject the goods b. only sue for damages c. seller can reject the goods d. Agent can reject the goods 18. The Doctrine of Caveat Emptor means a. Seller beware b. Buyer beware c. Commission Agent beware d. Seller and Buyer both beware 19. Who is not party to a Bill of Exchange? a. Payee b. Drawee c. Acceptor d. Drawer 20. An Inchoate Stamped Instrument is a. Inland b. Incomplete c. Foreign d. Ambiguous 21. A Bill of Exchange contains an unconditional to pay. a. Order b. Promise c. Liability d. Bill 22. Noting is to be done by a. Parties themselves b. Judge of the High Court c. District Judge d. Notary Public 23. The word Negotiation means a. Bargaining b. Transfer c. Discount d. Noting 24. The time required to be given to be given to the drawee for deliberation with regard to the whether he wants to accept the bill or not: a. 24 hrs b. 48 hrs c. 48 hrs excluding public holidays d. 72 hrs 25. A cheque requires no a. Acceptance b. Stamp c. Only (b) d. (a) & (b)
FILL IN THE BLANKS 1 A proposal when accepted becomes 2 The parties to an agreement must have intention to 3 A quasi contract is created by 4 A Contract of Guarantee requires concurrence of 5 A Contract of Bailment can be made only for 6 The term property in relation to a contract of sale of goods means 7 An agreement to sell is 8 Caveat emptor means 9 Social obligation will not create 10 A contract which has a technical flaw is 11 Minor s property can be liable for 12 Undue influence requires between the parties. 13 Silence by itself will not amount to 14 Agreement in restraint of trade are 15 Bailment may be broadly classified on the basis of or 16 In case of bailment transfer of is a must. 17 In pledge is given as security for payment of debt or performance of the promise. 18 Only is transferred to pawnee. 19 A minor can be an but not a 20 Existing goods may be, and 21 is a stipulation essential to a contract whereas in case of the stipulation is collateral. 22 Risk prima facie passes with 23 An unpaid seller can exercise rights both against as well as the 24 A negotiable instrument has to be in 25 Cheque does not require by the drawee. TRUE OR FALSE 1. Agreement means a contract. 2. Boarding a BEST bus in a contract. 3. A Quasi contract is made by the parties. 4. A cheque which is cancelled by anybody is called a crossed cheque. 5. In Indorsement sans Recourse the indorser is not to be held liable as a prior party. 6. Void agreements are sometimes enforceable. 7. No consent, no contract. 8. A mere mental acceptance is no acceptance in Law. 9. All contracts are agreements but all agreements are not contracts. 10. A void contract is one which is void ab initio. 11. A minor is a person who has not completed 21 years of age. 12. A minor is personally liable for necessaries supplied to him. 13. A threat to commit suicide amounts to coercion. 14. A contract of insurance is not a contingent contract. 15. Strictly speaking, a quasi- contract is not a contract at all. 16. A contract of guarantee must be in writing. 17. In a contract of sale, money is a consideration. 18. In case of breach of condition, the aggrieved party gets the right to repudiate the contract. 19. A seller who has been partly paid is also considered as an unpaid seller for the part unpaid. 20. All negotiable instruments are entitled to three days grace.
ANSWER IN ONE /TWO SENTENCE 1. Define a Contract. 2. Define a Voidable Contract. 3. Define Consent. 4. When is consent said to be free? 5. Define Contract of Indemnity. 6. The term goods does not include? 7. Define a contract of Sale of goods. 8. Define a Negotiable Instrument. 9. What is a Contingent Contract? 10. Who is competent to enter into a contract? 11. What is the age of majority? 12. What are necessaries? 13. What are void agreements? 14. What is a continuing guarantee? 15. What is a gratuitous bailment? 16. What is a non-gratuitous bailment? 17. Define pledge. 18. Who is a commission agent? 19. Who is a delcredere agent? 20. What is un-ascertained goods? 21. What are future goods? 22. What are ascertained goods? 23. What is meant by lien? 24. When do we say that the goods are in transit? 25. Who is holder? SHORT NOTES 1. Unsound person & its position in contract. 2. Contracts of dis-qualified person. 3. Types of bailment. 4. Who may / may not become an agent. 5. Pledge / Pawn. 6. Sub Agent- substituted agent. 7. Document of title to goods. 8. Property. 9. Price. 10. Holder and Holder in Due course. 11. Negotiation and endorsement. 12. Noting & protest. Question Paper Pattern (20 Marks) 1. Match the Column / Fill in the Blanks / Multiple Choice Questions (1/2 Marks each) 2. Answer in One or Two Lines (Concept based Questions) (1 Marks each) 3. Answer in Brief (Attempt Any Two of the Three) (5 Marks each) 05 Marks 05 Marks 10 Marks
ANSWERS MCQ S Q. No. Answer Q. No. Answer 1 D 14 B 2 D 15 C 3 D 16 D 4 B 17 A 5 B 18 B 6 D 19 C 7 B 20 B 8 C 21 A 9 B 22 C 10 A 23 B 11 B 24 C 12 D 25 D 13 C FILL IN THE BLANKS Q. No. Answer Q. No. Answer 1 a promise 14 void 2 create legal relationship 15 reward, benefit 3 law 16 possession 4 3 parties 17 movables 5 movable goods 18 possession 6 ownership in goods 19 agent, principal 7 An executory contract TRUE OR FALSE True : 2, 5, 7, 8, 9, 13, 15, 17, 18, 19, 20 False : 1, 3, 4, 6, 10, 11, 12, 14, 16 20 specific, ascertained, unascertained 8 let the buyer condition, 21 beware warranties 9 legal relations 22 property 10 unenforceable 23 goods, buyer 11 Necessaries 24 writing 12 Relationship 25 acceptance 13 Fraud NOTE : This same Question Bank would be used for Questions No.1 (Objective type) of External paper of 75 marks.