2. In case of void agreements, collateral transactions are
Correct : C. Not affected
3. The delivery of goods by one person to another for some purpose, upon a contract and that they shall, when the purpose is accomplished, be returned or otherwise disposed of by accounting to the directions of the person delivering them, then it is called:
Correct : B. Bailment
4. A, a minor bought 11 expensive coasts from B. he was, at that time, adequately provided with clothes, but B did not know this fact. In such a case
Correct : C. Minor is liable since he has Misled into supply of coats
5. A husband, by a registered agreement promised to pay wife Rs 5,000 p.m. there was no consideration moving from the wife to the husband. This contract is
Correct : C. Valid
6. In Indian Contract Act, the term consensus ad idem means
Correct : C. Parties agreeing upon the same thing in same sense
7. Sonia contracts with Anshul to buy a necklace, believing it is made of pearls whereas in fact it is made of imitation pearls of no value. Anshul knows that Sonia is mistaken and takes no steps to correct the error. Now Sonia wants to cancel the contract based on fraud. Which of the following statement is correct?
Correct : D. Sonia can claim damages
8. Which of the following is false with respect to minor entering a contract?
Correct : C. The guardian of a minor is responsible for his acts
9. Anuj agrees to pay Rs10,000 to Manoj if a certain ship returns within a year. However, the ship sinks within the year. In this case, the contract becomes:
Correct : B. Void
10. A invites B for coffee in Coffee day Restaurant and B accepts the invitation. On the appointed date, B goes there but A does not come. In this case
Correct : A. B has no remedy against A.
11. Where a contract has to be inferred from the conduct of parties, it is called
Correct : B. Implied contract.
12. Voidable contract is one
Correct : C. Which is valid if it is not avoided by the party entitled to do so.
13. Undue influence can be presumed between
Correct : D. All of the above
14. Wagering Agreement is a _____________ agreement
Correct : C. Void
15. A minor was facing a criminal prosecution for smuggling drugs. He borrowed Rs. 5000 to hire an advocate to defend him in the court of law. What is the remedy available to the creditor if the minor does not return the money on his own?
Correct : A. The creditor cannot recover the amount from the minor since a contract with a minor is void ab initio
16. Future goods mean goods to be manufactured or produced or acquired by the seller
Correct : A. In future prescribed time
17. A sold a stolen car to B which was subsequently recovered by the police form B's possession and he (B) was forced to return the same to the true owner. Here, there is breach of implied condition as to
Correct : C. Title
18. Where the goods are sold by description, there is an implied condition that the goods shall
Correct : C. Correspond with the description
19. As per the doctrine of caveat emptor incorporated in Section 16, there is no implied conditions or warranty in a contract of sale as to the
Correct : C. Quality or fitness for buyer's purpose.
20. Where the seller wrongfully neglects or refuses to deliver the goods to the buyer, the
buyer may sue for:
Correct : A. Damages for non-delivery
21. The unpaid seller has right of stoppage of goods in transit only where the buyer
Correct : A. Becomes insolvent
22. An unpaid seller is having rights against
Correct : C. Both goods and buyer
23. Seller has right of resale where
Correct : D. All of these.
24. The voluntary transfer of possession from one person to another is called
Correct : C. Delivery
25. The agent having in customary course of business as such agent authority either to sell goods or to consign goods for the purpose of sale or to buy goods or to raise money on the security of goods is called
Correct : B. Mercantile agent
26. According section 5(2) subject to provision of any law for the time being in force a
contract of sale may be
Correct : A. Made in writing
27. A stipulation in contract of sale with reference to goods which are the subject there of may be
Correct : C. Both (a) and (b)
28. Where an unpaid seller has made part delivery of the goods he may exercise his Right of _______
Correct : B. Lien on the remaining goods
29. Delivery of key of the warehouse by the seller to the buyer will amount to:
Correct : A. Symbolic Delivery
30. The Right of Lien is exercised:
Correct : A. To retain the possession of goods
31. Which company shares can be freely transferable?
Correct : B. Public company
32. Maximum number of members in case of public company is:
Correct : C. Unlimited
33. The liability of members if company is limited by guarantee.
Correct : B. Guarantee amount
34. The liability of members if company is limited by shares
Correct : A. Unpaid value of shares
35. The companies which are formed under special charter granted by the king or queen of England are called
Correct : C. Chartered companies
36. In the MOA there are 7 clauses. We can alter all clauses expect one clause. What is that clause?
Correct : C. Association clause
37. Ultra vires means
Correct : A. Beyond the powers
38. Alteration of objects clause of MOA of a company requires
Correct : A. Special resolution
39. AOA is a
Correct : D. Internal document
40. Memorandum of association governs the relationship of the company:
Correct : A. With the outside world
41. The association clause of a public company must be signed by:
Correct : C. 7 persons
42. Quorum should be present at the
Correct : D. Any time during meeting.
43. Total managerial remuneration cannot exceed ____% of net profit
Correct : A. 11
44. When a private company is converted into public company. In which form it should be
Correct : C. Schedule VI
45. The undertaking contained in a promissory note, to pay a certain sum of money is
Correct : B. Unconditional
46. A bill of exchange contains a/an
Correct : B. Unconditional order
47. Cheque is a
Correct : B. Bill of exchange
48. The term 'negotiation' in section 14 of the Negotiable Instruments Act, 1881 refers to
Correct : A. The transfer of a bill of exchange, promissory note or cheque to any person, so as to constitute the person the holder thereof
49. If an instrument may be construed either as a promissory note or bill of exchange, it is
Correct : B. An ambiguous instrument
50. When an endorser willing to transfer to an endorsee only a part of the amount of the instrument, then it is which type of endorsement?
Correct : D. Partial endorsement
51. If a cheque is refused by the State Bank of India (SBI) due to inadequacy of funds for the
cheque to clear, then it is said to be
Correct : A. Bounced cheque
52. If the words "not negotiable" are used with special crossing in a cheque, the cheque is
Correct : A. Not transferable
53. Crossing of a cheque effects the
Correct : C. Both (a) and (b)
54. Notice of dishonour must be given
Correct : D. To all the parties who are secondarily liable on the instrument or to their duly authorized agent
55. Presentation is required for
Correct : D. Any of the above three purposes
56. A minor cannot be a______________ of the instrument
Correct : C. Payee
57. Presentment of an acceptance is required in case of
Correct : C. Every promissory note
58. A drawee is need to be given a deliberation of