Business Law 1

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Objective Questions and Answers of MBA: Business Law 1

Subject: Objective Questions and Answers of MBA: Business Law 1

Part 1: Objective questions and answers of Business Law


Q1. An agreement made with an alien enemy is

a) Unlawful on the ground of public policy

b) Unlawful because it becomes difficult to be performed

c) Valid,

d) Voidable.


Q2. The case of Mohiri Bibi v. Dharmodas Ghose (1903) deals with

a) Communication of offer

b) Communication of acceptance

c) A minors agreements

d) Fraud

e) A lunatic‘s agreement.


Q3. The case of Taylor v. Caldwell (1883) deals with

a) Discharge of contract by destruction of subject matter,

b) Anticipatory breach of contract

c) Discharge of contract by death of a party

d) Breach of contract.


Q4. A minor, by misrepresenting his age, borrows some money –

a) He can be sued for the fraud,

b) He cannot be sued for the fraud

c) He is liable to return the money

d) None of the above.


Q5. There is a counter-offer when

a) The offered gives conditions for acceptance or introduces a fresh term in acceptance

b) The offered makes a fresh offer

c) The offered makes some query.

d) The offered accepts it.


Q6. On the face of the ticket for a journey the words ? for conditions see back are printed in small print. The passenger ________________

a) Is bound by the conditions whether he takes care to read them or not.

b) Is not bound by the conditions

c) May not take note of the conditions

d) None of the above.


Q7. A mere attempt at deceit by a party to a contract ________________

a) Is not fraud unless the other party is actually deceived

b) Is fraud whether the other party has been deceived or not

c) Amounts to misrepresentation

d) None of the above.


Q8. The case of Nordenfelt v. Maxim Nordenfelt Gun co. (1904) deals with

a) Agreement in restraint of legal proceedings,

b) Minor‘s agreements

c) Agreement in restraint of trade

d) Agreement in restraint of marriage.


Q9. Assignment by operation of law takes place ________________

a) By the mutual consent of parties

b) By the will of either party

c) When the subject matter of a contract ceases to exist.

d) By the death of a party to a contract.


Q10. Specific performance may be ordered by the court when ________________

a) The contract is voidable

b) Damages are an adequate remedy

c) Damages are not an adequate remedy

d) The contract is uncertain.


Q11. A finder of lost goods is a

a) Bailor

b) Baile

c) True owner

d) Thief


Q12. 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.


Q13. 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.


Q14. 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.


Q15. A contract by an idot is

a) Voidable

b) Enforceable

c) Invalid

d) Void ab inito


Q16. A contingent contract is

a) Void

b) Voidable

c) Valid

d) Illegal


Q17. 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.


Q18. Any variance made without surety's consent in the terms of the contract between the principal debtor and the creditor discharges the surety

a) As to transactions prior to variance

b) Coffee

c) As to transactions subsequent to variance

d) As to all transactions

e) Fromhis liability under the guarantee.


Q19. 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.


Q20. 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 offered,

c) No contract at all,

d) A valid


Part 1: Objective questions and answers of Business Law


Q1. Answer a


Q2. Answer c


Q3. Answer a


Q4. Answer b


Q5. Answer a


Q6. Answer a


Q7. Answer a


Q8. Answer c


Q9. Answer d


Q10. Answer c


Q11. Answer b


Q12. Answer b


Q13. Answer a


Q14. Answer b


Q15. Answer d


Q16. Answer c


Q17. Answer a


Q18. Answer b


Q19. Answer a


Q20. Answer d

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