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________

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

False__________

______________________________________________________________________________
______________________________________________________________________________
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___________

__________________________________________________________________________________
__________________________________________________________________________
7. Committing or threatening to commit any act forbidden by the Indian Penal Code is,
Coercion __________
Mistake__________

Undue Influence___________

Fraud__________

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_____________

______________________________________________________________________________
______________________________________________________________________________
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 _______________
__________________________________________________________________________________
__________________________________________________________________________
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_________________
__________________________________________________________________________________
__________________________________________________________________________
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______________