Business Law (MCQs) Set-3
Categories: OTHERS
Q.1. The collateral transactions to an illegal agreement are
- Void,
- illegal,
- voidable,
- not affected at all
Answer: (B) illegal,
Q.2. Which of the following are contingent contracts?
- contract of insurance
- contract of guarantee,
- contracts for the sale of goods on credit
- Wagering agreements
Answer: (A) contract of insurance
Q.3. If a new contract is substituted in place of an existing contract, it is called
- alteration
- rescission
- novation
- waiver,
- remission
Answer: (C) novation
Q.4. The right of subrogation in a contract of guarantee is available to the
- creditor
- principal debtor
- surety
- indemnified
Answer: (C) surety
Q.5. If a contract contains an undertaking to perform an impossibility, the contract is
- void ab initio
- void
- voidable at the option of the plaintiff
- illegal
Answer: (A) void ab initio
Q.6. A agree to pay B Rs. 2000 if a certain ship does not return at Mumbai port within a year. A ‗s promise can been forced when the ship
- arrives Mumbai a damaged condition during the years
- is lost during the year
- is sunk during the years
- arrives Mumbai in a good condition during the year.
Answer: (B) is lost during the year
Q.7. An employee, by the terms of his service agreement, is prevented from accepting a similar engagement after the termination of his service .The restraint
- valid
- void
- illegal
- unenforceable
Answer: (B) void
Q.8. A who owes Rs. 10000 to B dies leaving an estate of Rs. 6000. The legal representation of A are
- Liable for Rs. 10000
- liable for Rs. 6000
- not liable at all
- liable for Rs. 3000.
Answer: (B) liable for Rs. 6000
Q.9. Regulationas to the opening and closing of business in a market are
- not unlawful even if they are in restraint of trade.
- unlawful because they are in restraint of trade.
- void
- not valid
Answer: (A) not unlawful even if they are in restraint of trade.
Q.10. Where both the parties to an agreement are under a mistake as a matter of fact essential to the agreement, the agreement I
- void
- voidable
- illegal
- not affected at all.
Answer: (A)