Legal Aspects of Business Test I – 2012

1. All agreements are contract but all contracts need not necessarily be agreements.

True _______ False _______ Data Inadequate _______

2. One of the compulsory factor of contract is consensus ad idem and other is

Privity of contract __________ Obligation _______ Consideration______ Consent_____

3. Void agreements are those agreements which can be declared void at the option of one party. Give reasons to your answer

True ______ False________

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4. An offer can be positive or negative. Give reasons to your answer.

True_________ False__________

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5. A tells to B that he wants to sell his bike at Rs 50000 to B and if B does not reply within 7 days, he will assume that B has accepted his offer. This is a

Implied Offer_______ Express Offer_______ General Offer________ Void Offer________

6. “Minor can enter into a contract, but he or she is not bound by it”. Give reasons for your answer

True____________ False___________

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7. Committing or threatening to commit any act forbidden by the Indian Penal Code is,

Coercion __________ Undue Influence___________ Fraud__________ Mistake__________

8. The plea of discovering the fact by due diligence is,

Available in case of misrepresentation________ Not available in case of fraud___________

Both__________

9. Mistake of law makes a contrac

Void___________ Voidable___________ Illegal____________ Uneforceable___________

10. Consideration may from the promisee or any other person. Give reasons to your answer

True__________ False_____________

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11. A promised to sell his car to B at Re 1/-. Later on he filed a case against B saying that Re 1 is not enough amount, can he succeed the case? Give Reasons to support your answer

Yes______________ No _______________

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12. Which of the following is the exception to “Restraint of Trade”

Restraint of marriage________ Service Bonds_______ Dowry______ Champerty________

13. A wagering agreement consists of reciprocal promises whereas a contingent contract may not contain reciprocal promises

True___________ False______________

14. Reimbursement to a person paying money due by another, of which he is interested is

Express Contract_______Implied contract______Void Contract______ Quasi Contract_________

15. When neither debtor nor the creditor makes the provision of appropriation of payment, then the payment is appropriated as per

Order of sequence______ As intimated by the creditor_______________

16. Cancellation of all or some of the terms of contract is

Recession_______ Remission_______ Alteration_______ Novation_______

17. Failure of one of the object can be regarded as subsequent impossibility. Give reasons to your answer

True_____________ False_________________

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18. If the repudiation is not accepted and subsequently an event happens, rendering discharge, the party cannot claim for damages, this happens when there is

Actual Breach of contract ____________________Anticipatory Breach of contract___________

19. When the promisee neglects or refuses to afford the promisor reasonable facilities to perform, the contract becomes

Void_________ Voidable________ Illegal________ Discharged contract_____________

20. Damages that cannot be claimed for any remote or indirect loss caused by the breach are called

Ordinary Damages________ Nominal Damages_________ Special Damages______________