Question For Revision

______ 1.Which one of the following could validly establish distinction between sale and agreement to sale.
A. Transfer of ownership.
B. Shifting risk
C. Remedial measures.
D. The nature of the contract.
E. C & D
F. All of the above
______ 2. The principal shall be jointly liable with agent for apparent agency, except;
G. Where he inform third party the existence of agency but failed to inform him of the partial or total
revocation;
H. Where he fail to return the power of attorney;
I. Where he cause in any other manner, that a third party to believe that the person whom they are dealing was
authorized to act on his behalf.
J. None
K. All of the above
_____3. Which of the following statement in respect to the law of contract is accurate?
L. A contract is a type of agreement
M. The term ‘contract’ and ‘agreement’ mean the same thing.
N. Contract can exist irrespective of agreement
O. Not all contract are agreement.
P. B & D
______ 4. Three intimate individuals wish to set up in business together. They want minimal formation formalities and
are each prepared to accept all of the responsibilities and liabilities that the business might incur. Which of these
business types is likely to be the most appropriate?
A. Sole trader
B. Partnership
C. Private limited company
D. Share Company
E. All of the above
______ 5. All can give rise to the relation of Agency except;
F. When the agent is subject of his principal’s control.
G. when the agent works on behalf and for the interests of his principal.
H. when there is an agreement run between the agent and principal

I. when there is remuneration to the principal

J. A & D
______6. Which of the following pedigrees of law distinguish positive law school from other school of law thought.
A. it is passed by correct authority

B. the correct authority should follow all established law making procedures.
C. A &B
D. it incorporate moral ingredient
E. All of the above
________7. A Private Limited Company is one which, by its Articles of Association;
A. Can permit any invitation to the public to subscribe for any share in.
B. Allow any number of members.

C. Restrict the right of the members to transfer their shares, if any.

D. Can sign for prospectus
E. All of the above
______ 8.The following statements holds false except;
F. A. Viability to live is the only legal requirements for commencement of personality.
G. According to Ethiopian law of person, birth is the sole means of attaining personality
H. Both juridical and physical persons may establish business through sole proprietorship.
I. A child merely conceived shall be considered born whenever his biological interest so demands,
he is born viable and alive.
J. E. None
______9. The consent of parties to a contract is said to be defective when:
K. Two or more persons agree upon same thing in the same sense.
L. Obligations should relate to proprietary nature.
M. It is the result of coercion or undue influence, fraud, misrepresentation or mistake.
N. All of the above
O. All except C
______ 9. Mr. ‘A’ rent his apartment to Mr. ‘M’ with monthly contract price of Birr 1000. Mr. M then used
the same apartment for illegal body organ transplantation operating room. Assume that Mr. A aware of Mr.
M’s act, what would be the consequence of the rent contract?
a. It becomes invalidated on the ground of illegality of object
b. It becomes invalidated on the ground of Fraud
c. It becomes invalidated on the ground of Duress
d. The contract considered valid but Mr. ‘A‘will have the option to terminate the contract.
e. None.