Q.35 An offer must be made with a view to obtain the consent of the other person to a proposed act or abstinence

1 point

a) True

b) False

Q.39 Parents of a minor can be held liable for the agreements made by a minor

1 point

a) True

b) False

Q. 18 A tells B, "If you stood first in the class, I'll pay you Rs.5000.00. B stood first in class and A paid him Rs.5000.00. Which of the following is correct?

1 point

a) A and B had a unilateral contract;

b) A and B had an executory contract;

c) A and B had an executed contract;

d) None of these

Q.38 If a minor enters into a contract with a person of majority age (over 18), then that contract is not enforceable against the adult who has jointly promised to perform

1 point

a) True

b) False

Q.20 A offers to sell B his collection of rare books for Rs.5000.00. Before B even has a chance to accept, A says, "Sorry, I changed my mind, no deal." This is an example of:

1 point

a) Revocation;

b) Rejection;

c) Counter Offer;

d) None of these

Q.33 Voidable Contract is a valid contract that can be avoided at the option of both of the parties

1 point

a) True

b) False

Q.25 Which of the following actions requires the unanimous consent of all partners before it may be undertaken?

1 point

(a) Hiring a new employee

(b) Purchasing new office equipment;

(c) Admitting new partners;

(d) None of these

Q. 9 Which of the following is not illegal contract

1 point

a) forbidden by Law

b) fraudulent

c) Quasi contract

d) Court regards it immoral

Q.14 An offer will not be lapse due to following

1 point

a) Lapse of Time

b) Counter acceptance

c) Counter offer

d) Revocation

Q.36 Offer should be accepted within the time specified in the offer or within a reasonable time where no time is specified

1 point

a) True

b) False

Q.23 Following is not the consequence of dissolution f partnership firm

1 point

a) No partnership among same partners in future

b) Continuing liability of partners after dissolution

c) Rights of partners to enforce winding up

d) Right to impose restrictions to carry on a similar business

Q.6 ___________ is a remedy whose purpose is to award an amount for what has been done.

1 point

a) Injunction

b) Quantum Meruit

c) Ordinary Damages

d) Restitution

Q.40 Anyone supplying necessaries (food, clothing, shelter, medical services) to a person of unsound mind is entitled to be reimbursed from the property of such persons, since such claim is against the property of the persons of unsound mind & not that individual personally

1 point

a) True

b) False

Q.50 As per the code of corporate governance 2019, CEO and Chairman should not be the same person.

1 point

a) True

b) False

Q.49 As per the code of corporate governance 2019, no person shall be elected or nominated or hold office as a director of a listed company, even as an alternate director, of more than 5 listed companies, simultaneously.

1 point

a) True

b) False

Q.22 Partner is

1 point

a) an agent of the firm

b) agent as well as principal

c) principal to other partners

d) none of the above

Q. 24 When a partnership is found liable for a debt, which assets are first used to pay the debt?

1 point

a) Individual assets of the partners;

b) Personal property of the limited partners;

c) Partnership assets.

d) None of these

Q.28 Which of the following is eligible to become director of a company?

1 point

a) Minor

b) Un-discharged insolvent

c) Person representing a creditor

d) None of these

Q.8 Which of the following is not competent to contract:

1 point

a) Must be age of majority, i.e. not a minor

b) Person of unsound mind, i.e. an insane or intoxicated person

c) Not disqualified from contracting by any law, i.e. not a convict

d) An aggressive person

Q.44 A partner or all partners, jointly, are liable for any wrongful act or omission of a partner, which caused injury to a 3rd party, in the ordinary course of business

1 point

a) True

b) False

Q.29 For the incorporation of a limited liability company filing of Memorandum of Association is essential:

1 point

a) for a public limited company only;

b) for a private limited company, a public limited company and an unlimited company;

c) for a Public Limited company only;

d) None of these

Q.34 Purchasing or Leasing of Property must be in written form to be a valid contract

1 point

a) True

b) False

Q.43 When a partner becomes insane or permanently incapable of performing his / her duties as partner, partner is out of partnership, however, partnership of other partnership will continue.

1 point

a) True

b) False

Q.12 Another name of Quasi Contact is

1 point

a) Constructive contract

b) Consistent contract

c) Completed contract

d) Continued contract

Q.48 Seller is deemed to delivered the goods to the buyer when he delivers the goods to a carrier for transmission to the buyer

1 point

a) True

b) False

Q.11 Which of the following is not a type of fraud

1 point

a) False assertion

b) Empty promise

c) Innocent misrepresentation

d) Active concealments

Q.21 A partnership must

1 point

a) have an express agreement between 2 or unlimited persons to only perform charity

b) have a silent agreement by a sole proprietor to share profits of the business with his family

c) have an agreement between 2 or more people to carry out a non-profitable business

d) have an agreement between 2 or more people to carry out a profitable business

Q.4 Voidable contract is one

1 point

a) which is lawful.

b) which is invalid.

c) which is valid as long as it is not avoided by the party entitled to do so.

d) which is unlawful.

Q.47 Incase of Agreement of sale, ownership of the goods is immediately transferred at the time of making the contract from the seller to the buyer

1 point

a) True

b) False

Q.32 Oral contract is a voidable contract, except in certain cases where a contract must comply with the necessary formalities as to writing, registration etc.

1 point

a) True

b) False

Q.42 Both parties must be at the same frequency of mind when entering into a contract i.e. consensus-ad-idem (literal meaning: "meeting of the minds")

1 point

a) True

b) False

Q.30 A subsidiary company is the one:

1 point

a) which holds the majority shares of another company;

b) which deals in the trading of shares of other companies;

c) in which the majority shares are held by another company;

d) None of these

Q.1 Offer may be revoked by the Offeror:

1 point

a) before the letter of offer reaches the offeree

b) after the letter of offer reaches the offeror

c) at any time offeror wants to revoke

d) before the death of acceptor

Q.7 Following is not the exceptions to Privity of Contract:

1 point

a) Agency

b) Trusts

c) Life Insurance policies

d) Local body Government

Q.16 Which of the following contracts is Voidable, where:

1 point

a) A party is induced by undue influence

b) One party under mistake of fact

c) Both parties under mistake of fact

d) None of these

Q.27 Every Public company must have ___________ at the beginning phase of the company.

1 point

a) Extraordinary General Meeting

b) Statutory Meeting

c) Annual General Meeting

d) Board of Directors Meeting

Q.19 A offers to sell B his motorcycle at some time in the future. B accepts. Is there a valid contract?

1 point

a) Probably not, the terms are not definite;

b) Probably yes;

c) Definitely not because A failed to communicate the offer;

d) None of these

Q.15 Which of the following is not able to demand a performance of a contract

1 point

a) Promiser's agent

b) Legal representative of promisee

c) Promisee

d) Joint promisee

Q.5 When one party surrenders its legal rights under the contract, it is called a / an _____________

1 point

a) tender

b) alteration

c) novation

d) waiver

Q.13 Which of the following is not a must for a valid contract:

1 point

a) Identification of the parties

b) Consideration to be paid

c) Time of payment, delivery, or performance

d) Legal paper

Q.37 Click-on agreements: act of clicking on a box indicating "I accept" or "I agree" results into a void agreement

1 point

a) True

b) False

Q.2 An agreement consists of reciprocal promises between at least

1 point

a) four parties.

b) six parties.

c) three parties.

d) two parties.

Q.3 Which of the following case is not covered by the concept of supervening impossibility?

1 point

a). Destruction of subject matter

b). Difficulty of performance

c). Outbreak of war

d). Death of the promisor

Q.31 Privity of Contract means, element of intent is essential in determining whether a contract has been formed.

1 point

a) True

b) False

Q.46 A shareholder can apply after 7 days of the general meeting for the certified copy of minutes and the company must provide him/her with the minutes within 7 days of the application for a nominal charge

1 point

a) True

b) False

Q.45 Quorum for shareholder meeting, in case of a publicly listed company: 7 members representing at least 25% of the voting power, either on their own account or as proxies

1 point

a) True

b) False

Q.41 Consideration received by the principal debtor is sufficient for the surety / guarantor & it is not necessary for the guarantor to receive some consideration, too

1 point

a) True

b) False

Q.26 A proxy:

a) is expected to make decisions in the best interest of the company & its stakeholders

b) can be appointed by a shareholder as many times as he / she wants

c) must be in writing & must be signed by the appointer

d) can be removed by passing a special resolution in the general meeting of the company

Q.10 Which of the following person is not in a position to dominate the will of another where he:

1 point

a) Holds the real or apparent authority over the other

b) Close friend

c) Stands in a fiduciary relation to the other

d) Makes a contract with a person whose mental capacity is temporarily or permanently affected due to age, illness, or mental or physical distress

Q.17 A contract to sell the property by a minor through guardian is:

1 point

a) Void Contract

b) Voidable Contract

c) Valid Contract

d) Void agreement