Business Law 5

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Objective Questions and Answers of MBA: Business Law 5

Subject: Objective Questions and Answers of MBA: Business Law 5

Part 5: Objective questions and answers of Business Law


Q1. An agreement the meaning of which is not certain, is

a) Void

b) Voidable

c) Valid

d) Illegal


Q2. When an agreement is discovered to be void, any person who has received any advantage under such agreement

a) Is bound to restore it

b) Is not bound to restore it

c) Is not bound to return it.

d) May retain it

e) None of these


Q3. The term property as used in the sale of goods act 1930 means

a) Possession

b) Ownership

c) Ownership and possession both

d) The subject matter of contract of sale.


Q4. Sale of goods for cash is an example of

a) Mutual and independent promises

b) Mutual and dependent promises

c) Mutual and concurrent promises

d) Conditional and dependent promises


Q5. The foundation of modern law of damages was laid down in,

a) Tinn v. Hoffman

b) Taylor v. Caldwell

c) Hadley v. Baxendale

d) Addis v. Gramophone


Q6. A person who finds good belonging to another and takes them into his custody, is subject to the same responsibility as a

a) Bailee

b) True owner

c) Bailor

d) Pledge.


Q7. An agreement to do an act impossible in itself

a) Is void,

b) Is voidable

c) Is void ab initio

d) Becomes void when impossibility is discovered


Q8. A contract of insurance is a

a) Contract of guarantee

b) Contingent contract

c) Wagering agreement

d) Unilateral agreement.


Q9. Consideration

a) Must move from the promise,

b) May move from the promise or any other person

c) May move from the third party

d) May move from the promisor.


Q10. Where consent is caused by fraud or misrepresentation, the contract is

a) Voidable at the option of the aggrieved party

b) Void

c) Unenforceable

d) Not affected in any manner


Q11. Owing to a strike in the factory of a, he is not able to supply the goods to b as per the terms of the agreement > the agreement in such a case

a) Is discharged

b) Is not discharged

c) Becomes void

d) Is voidable at the option of a.


Q12. A contract of indemnity is a

a) A contingent contract

b) Wagering contract

c) Quasi contract

d) Void contract


Q13. In case of breach of a warranty, the buyer can

a) Claim damages only

b) Repudiate the contract

c) Cannot return the goods

d) Refuse to take delivery of the goods


Q14. Where there are co-sureties, a release by the creditor of one of them

a) Discharges the other co-sureties

b) Does not discharge the other co-sureties

c) Makes all the co-sureties immediately liable

d) Makes the contract of guarantee void.


Q15. The case of Hadley v. Baxendale (1854) deals with

a) Anticipatory breach of contract.

b) Quantum of damages

c) Supervening impossibility

d) Quasi contract.


Q16. Ordinary damages are damages which

a) Arise in the usual course of things from the breach

b) Which are in the contemplation of the parties at the time when the contract is made

c) Are agreed in advance

d) Are given by way of punishment for breach of contract.


Q17. When two or more persons have made a joint promise, then unless a contrary intention appears from the contract, all such persons must fulfill the promise

a) Jointly

b) Severally

c) Jointly and severally

d) Jointly or severally


Q18. If there is a unilateral mistake as regards identity of a party caused by fraud of the other party, the contract is

a) Void,

b) Voidable,

c) Valid

d) Illegal


Q19. A contract is

a) A legal obligation

b) An agreement plus a legal obligation

c) Consensus ad idem,

d) Agreement plus a legal object.


Q20. Consideration must be something which the promisor

a) Is already bound to do,

b) Is not already bound to do.

c) May voluntarily do

d) Must not do.


Part 5: Objective questions and answers of Business Law


Q1. Answer d


Q2. Answer a


Q3. Answer b


Q4. Answer c


Q5. Answer c


Q6. Answer a


Q7. Answer a


Q8. Answer b


Q9. Answer b


Q10. Answer a


Q11. Answer b


Q12. Answer a


Q13. Answer b


Q14. Answer b


Q15. Answer b


Q16. Answer a


Q17. Answer a


Q18. Answer b


Q19. Answer b


Q20. Answer b

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