Business Law Multiple Choice Question MCQ Part 2
Categories: Multiple Choice Question
1. A agreed to sell 100 shares to B at Rs. 75 per share delivery to be given on the 1st march, B refused to accept delivery on 1st march as price had gone down to Rs. 60 per share. Subsequently A sold these shares at Rs.92 per share (A) A cannot recover any damages from B (B) A will have to restore to BRs. 1700 i.e. the profit he made (C) A caan recover dameges to be determined by the President of the stock exchange. Correct answer: (C) 2. A finder of lost goods is a (A) bailor (B) Baile (C) true owner (D) thief Correct answer: (B) 3. A guarantee obtained by a creditor by keeping silence as to material circumstances is (A) valid (B) voidable (C) unenforceable (D) invalid Correct answer: (D) 4. If a price is not determined by the parties in a contract of sale , the buyer is bound to pay (A) the price demanded by the seller, (B) a reasonable price (C) the price which the buyer thinks is reasonable (D) the price to be determined by a third independent person. Correct answer: (B) 5. In case of breach of a warranty , the buyer can (A) repudiate the contract (B) claim damages only (C) return the goods (D) refuse to pay the price Correct answer: (B) 6. Law of contract is (A) not the whole of agreements nor is it the whole law of obligations (B) the whole law of agreements (C) the whole law of obligations (D) none of the above. Correct answer: (A) 7. A specific offer can be accepted by (A) any person (B) any friend of offerer (C) the person to whom it is made (D) any friend of offeree. Correct answer: (C) 8. Consideration (A) must be adequate to the promise made, (B) need not be adequate to the promise made (C) must be of reasonable value (D) must be of more value than the value of promise made. Correct answer: (B) 9. A promise to subscribe to a charity. The promise is a (A) valid contract, (B) voidable contract, (C) void agreement (D) void contract. Correct answer: (C) 10. A contract by an idot is (A) voidable (B) enforceable (C) invalid (D) void ab inito Correct answer: (D) 11. If there is error in cause, the contract I (A) void (B) voidable (C) valid (D) illegal Correct answer: (B) 12. A contingent contract is (A) void (B) voidable (C) valid (D) illegal Correct answer: (C) 13. A lends Rs. 500 to B. He later tells B that he need not repay the amount, the contract is discharged by (A) breach (B) waiver (C) novation (D) performance Correct answer: (B) 14. The measure of damages in case of breach of a contract is the difference between the (A) contract price and the market price at the date of breach (B) contract price and the maximum market price during the term of the contract (C) contract price and the price at which the plaintiff might have sold the goods, (D) contract price and the price fixed by court. Correct answer: (A) 15. A minor has been supplied necessaries on credit (A) he is not liable (B) he is personally liable (C) his estate is liable (D) he is not personally liable Correct answer: (C) 16. Any variance made without surety's consent in the terms of the contract between the principal debtor and thecreditor discharges the surety (A) as to transactions prior to variance (B) as to transactions subsequent to variance (C) as to all transactions (D) from his liability under the guarantee. Correct answer: (B) 17. The doctrine of caveat emptor applies (A) incase of implied conditions and warranties (B) when the buyer does not intimate the purpose to the seller and depends upon his own skill and judgment (C) when goods are sold by sample (D) when goods are sold by description Correct answer: (A) 18. A condition is a stipulation which is a (A) essential to the main purpose of contract of sale (B) not essential to the main purpose of contract of sale, (C) collateral to the main purpose of contract of sale (D) none of the above. Correct answer: (A) 19. A contract (A) may be void as originally entered into (B) may become void subsequent to its formation (C) cannot become void under any circumstances (D) may become void at the will of party. Correct answer: (B) 20. A letter of acceptance sufficiently stamped and duly addressed is put into course of transmission. There is (A) a contract voidable at the option of acceptor (B) a contract voidable at the option of offerer, (C) no contract at all, (D) a valid Correct answer: (D)