Business Law (MCQs) Set-1
Categories: OTHERS
Q.1. A person who finds good belonging to another and takes them into his custody, is subject to the same responsibility as a
- bailee
- true owner
- bailor
Answer: (A) bailee
Q.2. Ordinary damages are damages which
- arise in the usual course of things from the breach
- which are in the contemplation of the parties at the time when the contract is made
- are agreed in advance
- are given by way of punishment for breach of contract.
Answer: (A) arise in the usual course of things from the breach
Q.3. An agreement to do an act impossible in itself
- is void,
- is voidable
- is void ab initio
- becomes void when impossibility is discovered
Answer: (A) is void,
Q.4. When two or more persons have made a joint promise, then unless a contrary intention appears from the contract,all such persons must fulfill the promise
- jointly
- severally
- jointly and severally
- jointly or severally
Answer: (A) jointly
Q.5. A contract of insurance is a
- contract of guarantee
- contingent contract
- wagering agreement
- unilateral agreement.
Answer: (B) contingent contract
Q.6. If there is a unilateral mistake as regards identity of a party caused by fraud of he other party, the contract is:
- void,
- voidable,
- valid
- illegal
Answer: (B) voidable,
Q.7. Consideration
- must move from the promisee,
- may move from the promisee or any other person
- may move from the third party
- may move from the promisor.
Answer: (B) may move from the promisee or any other person
Q.8. A contract is
- a legal obligation
- an agreement plus a legal obligation
- consensus ad idem,
- agreement plus a legal object.
Answer: (B) an agreement plus a legal obligation
Q.9. Consideration must be something which the promisor
- is already bound to do,
- is not already bound to do.
- may voluntarily do
- must not do.
Answer: (B) is not already bound to do.
Q.10. Where consent is caused by fraud or misrepresentation, the contract is
- voidable at the option of the aggrieved party
- void
- unenforceable
- not affected in any manner
Answer: (A) voidable at the option of the aggrieved party