Answer All Of The Questions

1. A contract creates __________.

a) mutual understanding between the parties to it.

b) obligations of the parties to it.

c) rights and obligations of the parties to it.

d) mutual lawful rights and obligations of the parties to it.

2. The goods identified at the time of sale of contract is __________.

a) uncertain goods

b) certain goods

c) future goods

d) specific goods

3. The form of business organization that has the largest sales volume is the __________.

a) Cooperative

b) Corporation

c) Partnership

d) Multinational

4. The sales of goods act implies to __________.

a) invisible property

b) movable properly

c) immovable properly

d) none of these

5. In a number of situations, the power to manage the company can revert from the directors back to the members. Which of the following is NOT such a situation?

a) Where the articles provide for a reversion of power back to the members.

b) Where the articles provide the members can direct the directors by passing an ordinary resolution.

c) Where the directors are unwilling or unable to exercise their powers of management.

d) Where statute provides that the members can interfere in management.

6. Sales creates the right of __________.

a) Right in Rem.

b) Right in Personam

c) All of these

d) Right in things

7. Every partner is both an agent and a principal. Identify the characteristic of the partnership being referred here.

a) Mutual Agency

b) Formation

c) Risk Bearing

d) Membership

8. A invites B for his son's wedding. B accepts the invitation. In this case, there is an agreement but no contract since __________.

a) there is no consideration.

b) there is no intention to create legal relationship.

c) there is no written document.

d) there is no formal acceptance of the offer.

9. The subsidiary provision for the main purpose of the contract of sales of goods means __________.

a) section

b) condition

c) guarantee

d) order

10. Sell is such an agreement which has been __________.

a) timed

b) executed

c) ended

d) transacted

11. The court will lift the veil of incorporation in the following circumstances EXCEPT __________.

a) To attribute mental state or physical character to a company.

b) When the company is used as a front to hide the true facts.

c) When the company is formed to evade legal duty.

d) When the company enjoys perpetual succession.

12. A void agreement is void ab initio but a void contract is not void ab initio.

a) True

b) False

c) Partly true

d) Partly false

13. In Petrodel Resources Ltd v Prest [2013], Lord Sumption stated that there is only one instance in which the courts can pierce the veil. What is this one instance?

a) Where a person is under an existing legal obligation which he deliberately evades or whose enforcement he frustrates by interposing a company under his control.

b) Where a parent owes the employees of its subsidiary a duty of care.

c) Where a group of companies are to be regarded as a 'single economic unit.'

d) Where a subsidiary is acting as an agent for the parent.

14. Choose the BEST answer in relation to a Pre-Incorporation contract.

a) A contract entered after the formation of a company.

b) A contract made by or on behalf of a company before the company receives its certificate of incorporation.

c) A contract made by promoters after the issuance of a certificate of incorporation.

d) A contract made by a director of a company.

15. What is F.O.B. contract?

a) on board with trolly.

b) free on board.

c) on board with instalment.

d) with value on board.

16. A contract creates __________.

a) rights in rem.

b) only obligations and no rights.

c) rights in personal.

d) no obligations.

17. Unpaid seller means __________.

a) who has not received money

b) who has not been paid full price

c) who has been delivered incomplete goods

d) who has been paid full price

18. There are several remedies available for breach of promoter's duty EXCEPT __________.

a) Damages

b) Rescission of contract

c) Imprisonment

d) Recovery of secret profit

19. __________ is without any legal effect and cannot be enforced in a Court of Law.

a) Voidable contract

b) Valid contract

c) Unenforceable contract

d) Void contract

20. Important element of sales of goods contract is __________.

a) sample

b) goods

c) exchange

d) insurance