Business Law (MCQs) Set-1
Categories: Education
Q.1. Compromise of dispute claims
- is a good consideration for a contract
- is not a good consideration for a contract
- results in a void agreement
- is not permitted by law.
Answer: (A) is a good consideration for a contract
Q.2. Contracts made before war with an alien enemy which are against public policy are
- suspended and are revived after the war is over.
- dissolved
- not affected at all
- void ab initio
Answer: (B) dissolved
Q.3. When a person positively asserts that a fact is true when his information does not warrant it to be so, though he believes it to be true, there is:
- misrepresentation
- fraud
- undue influence
Answer: (A) misrepresentation
Q.4. The Case of Cundy v. Lindsay (1878)deals with
- Coercion
- undue influence
- mistake as to the nature of transaction
- mistake as regards identity
Answer: (D) mistake as regards identity
Q.5. Promises forming consideration for each other are known as,
- independent promises
- dependent promises
- reciprocal promises.
- mutual promises
Answer: (C) reciprocal promises.
Q.6. A contract has become more difficult of performance due to some un-contemplated events or delays .The contract
- is discharged
- is not discharged
- becomes void
- becomes voidable.
Answer: (B) is not discharged
Q.7. The court may grant rescission where the contract is
- voidable at the option of the plaintiff
- void
- unenforceable
- illegal
Answer: (A) voidable at the option of the plaintiff
Q.8. Quantum meruit means
- a non gratuitous promise
- an implied promise
- as mush as earned
- as much as is paid.
Answer: (C) as mush as earned
Q.9. In a sale, if the goods are destroyed, the loss falls on
- the buyer
- the seller
- partly on buyer and partly on seller
- the seller if price has not been paid by the buyer.
Answer: (A) the buyer
Q.10. The omission of the creditor to sue within the period of limitation
- discharges the surety
- does not discharge the surety
- makes the contract of guarantee void
- makes thecontract of guarantee illegal.
Answer: (B) does not discharge the surety