Business Law 4

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Objective Questions and Answers of MBA: Business Law 4

Subject: Objective Questions and Answers of MBA: Business Law 4

Part 4: Objective questions and answers of Business Law


Q1. Contracts made before war with an alien enemy which are against public policy are

a) Suspended and are revived after the war is over.

b) Dissolved

c) Not affected at all

d) Void ab initio


Q2. The case of cundy v. Lindsay (1878) deals with

a) Coercion

b) Undue influence

c) Mistake as to the nature of transaction

d) Mistake as regards identity


Q3. A contract has become more difficult of performance due to some un-contemplated events or delays .the contract

a) Is discharged

b) Is not discharged

c) Becomes void

d) Becomes voidable.


Q4. Quantum meruit means

a) A non-gratuitous promise

b) An implied promise

c) As much as earned

d) As much as is paid.


Q5. The omission of the creditor to sue within the period of limitation

a) Discharges the surety

b) Does not discharge the surety

c) Makes the contract of guarantee void

d) Makes the contract of guarantee illegal.


Q6. A person enters into an agreement whereby he is bound to do something which is against his public or professional duty. The agreement is

a) Void on the ground of public policy

b) Valid

c) Voidable

d) Illegal


Q7. Flaw in a capacity to contract may arise from

a) Want of consideration

b) Unsoundness of mind

c) Illegality of object

d) Uncertainty of object.


Q8. An agreement to do an impossible act is,

a) Void

b) Voidable

c) Illegal

d) Enforceable under certain circumstances.


Q9. A creditor agrees with his debtor and a third party to accept that third party as his debtor. The contract is discharged by,

a) Performance

b) Alteration

c) Waiver

d) Remission

e) Remission


Q10. Exemplary damages are

a) Allowed in case of dishonor of a cheque by a banker having sufficient funds

b) The difference between the contract price and the market price

c) Allowed where in case of breach of a contract, the plaintiff has not suffered any loss.

d) None of these.


Q11. A person is usually of sound mind, but occasionally of sound mind

a) He may enter in to a contract when he is of sound mind,

b) He may not make a contract even when he is of sound mind

c) He cannot enter into a contract at all.

d) None of the above.


Q12. A person who is not party t a contract

a) Cannot sue,

b) Can sue,

c) Can sue only in well recognized cases

d) None of these.


Q13. Merely because a contract was caused by one of the parties to it being under a mistake as to a matter of fact, it is not

a) Voidable

b) Void

c) Affected at all

d) None of the above.


Q14. Where the debtor does not expressly intimate or where the circumstances attending on a payment do not indicate any intention, the creditor

a) May apply it to any lawful debt due

b) May apply it even to a time barred debt.


Q15. A quasi contract

a) Is a contract

b) As an agreement

c) Creates only legal obligation

d) None of these


Q16. In a sale, the property in goods

a) Is transferred to the buyer

b) Is yet to be transferred to the buyer

c) May be transferred at a future time

d) Is transferred when goods are delivered to the buyer

e) Is transferred when the buyer pays the price


Q17. In a sale, there is an implied condition on the part of the seller that he

a) Has a right to sell the goods

b) Is in possession of the goods

c) Will have the right to sell

d) Will acquire the goods


Q18. An agreement is a voidable contract when it is

a) Enforceable if certain conditions are fulfilled.

b) Enforceable bylaw at the option of the aggrieved party.

c) Enforceable by both parties

d) Not enforceable at all.

e) An agreement not enforceable by law is said to be


Q19. Consideration must move at the desire of the promisor,

a) The promise,

b) Promisor or any other third party,

c) Both the promisor and the promise.

d) Any third party


Q20. When consent to an agreement is obtained by undue influence, the agreement is a

a) Contract voidable at the option of the party whose consent was so obtained

b) Void contract.

c) Valid contract

d) Void agreement.


Part 4: Objective questions and answers of Business Law


Q1. Answer b


Q2. Answer d


Q3. Answer b


Q4. Answer c


Q5. Answer b


Q6. Answer a


Q7. Answer b


Q8. Answer a


Q9. Answer c


Q10. Answer a


Q11. Answer a


Q12. Answer c


Q13. Answer a


Q14. Answer a


Q15. Answer c


Q16. Answer a


Q17. Answer a


Q18. Answer b


Q19. Answer a


Q20. Answer a

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