1
1 1
Legal and Regulatory Environment of Business
1 1 1 1 1 1
2 026 IMT C631 – Legal and Regulatory Environment of Business |
1 1 1 1 1 1 1 1 1 1 1 1
Updated Exam Questions with Answers & Rationals | Covers
1 1 1 1 1 1 1 1 1
Chapters 1– 1
15 | 100% Verified A+ Grade CHAPTER 1. Establishing Contractual R
1 1 1 1 1 1 1 1 1 1
elationships 1
1. Which1of1the1following1are1essential1features1of1a1valid1simple1contract?1
• Offer1and1acceptance1only.1
• Offer,1acceptance1and1consideration1only.1
• Offer,1acceptance,1privity,1certainty1and1duress1only.1
Offer,1acceptance,1consideration,1intention1to1create1legal1relations1and1certainty1of1t
erms.1
2. Consideration,1an1essential1element1in1the1formation1of1a1valid1contract,1may1beidentified1as:1
• The1need1for1fairness1in1the1contract.1
• The1intention1of1the1parties1to1be1legally1bound.1A1balance1in1the1terms1of1the1agreement.1
The1'bargain'1element1of1a1contract.1
3. Which1of1the1following1is1an1example1of1good1consideration?1 Exceeding1 an1existing1duty.1
11
• Part-payment1of1a1debt.1
• Performing1an1existing1duty.1
• Agreeing1to1pay1a1tenant1for1improvements1already1made1to1a1rented1property.1
4. Intention1to1create1legal1relations1is1presumed1in1which1of1the1following1relationships:1
i)1Husband1and1wife1living1together.1ii)1
Parties1to1a1commercial1contract.1iii)1
Husband1and1wife1who1are1separated.1
iv)1Friends1who1are1part1of1a1lottery1syndicate.1
,1
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Legal and Regulatory Environment of Business
1 1 1 1 1 1
• All1of1the1above.1ii1only.1
ii,1iii1and1iv.
1
• i,1ii1and1iv.1
5. Which1of1the1following1does1NOT1have1the1right1to1enforce1a1contract?1
• The1parties1to1it.1
• Third1parties1to1an1insurance1contract1in1their1benefit.1
Third1parties1to1a1contract1concerning1the1carriage1of1goods.1
• A1party1subject1to1a1restrictive1covenant1on1land.1
6. Which1of1the1following1cases1established1the1doctrine1of1promissory1estoppel?1Central1London1Pro
perty1Trust1v1High1Trees1House1Ltd.1
• Combe1v1Combe.1
• Foakes1v1Beer.1
• Re1Select1move.1
7. How1would1the1courts1deal1with1a1clause1in1a1contract1for1the1sale1of1a1horse1whichpromised1the1sell
er1an1additional1£51fee1if1the1horse1proved1to1be1lucky?1
• It1would1be1enforced1in1the1same1way1as1any1other1clause.1
• It1would1be1held1as1illegal1as1a1gaming1contract.1
• The1entire1contract1would1be1held1as1unenforceable.1
The1clause1would1probably1be1held1unenforceable1due1to1lack1of1certainty.1
Page121of1861
8. Which1one1of1the1following1is1incorrect?1Consideration1must1be:1
• Adequate1but1it1should1be1sufficient.1Current1and1not1be1past.1Quantifiable1(having1a1legal1val
ue)1but1not1whimsical.1
• Exchanged1after1the1contract1has1taken1place.1
9. Which1one1of1the1following1shows1an1intention1to1be1bound?1
• Binding1in1'essence'1only.1Binding1in1'honour'1only.1
• This1is1a1'gentleman's1agreement'.1A1signature1on1a1legal1document.1
,1
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Legal and Regulatory Environment of Business
1 1 1 1 1 1
10. Which1of1the1following1is1NOT1necessary1for1an1enforceable1contract1to1exist1whensupported1by
1past1consideration:1
• The1act1that1is1the1subject1of1the1contract1must1have1been1requested1by1the1promisor.1
• There1must1have1been1in1the1contemplation1of1both1parties1that1payment1would1
Page131of1871
,1
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Legal and Regulatory Environment of Business
1 1 1 1 1 1
have1been1made.1
A1written1contract1detailing1the1expectation1of1payment1is1in1existence1before1the1co
mmencement1of1the1act.1
All1the1other1elements1of1a1valid1contract1must1have1existed.1
CHAPTER 2. Competency of Parties and Free Consent
1 1 1 1 1 1 1 1
The1Indian1Contract1Act,118721is1divided1into…..1Chapters.1
31
81
101
121
The1Law1of1Contract1is1nothing1but1
A1child1of1commercial1dealing1
A1child1of1religion1
A1child1of1day1to1day1politics1A
1child1of1economics1
The1Contract1Act1came1into1force1
From111September118721but1with1retrospective1effect1
Before111September118721
From111September118721
•1 After111September118721
41.1The1Contract1Act1applies1to1
• Contracts1made1before111September118721
Page141of1871
1 1
Legal and Regulatory Environment of Business
1 1 1 1 1 1
2 026 IMT C631 – Legal and Regulatory Environment of Business |
1 1 1 1 1 1 1 1 1 1 1 1
Updated Exam Questions with Answers & Rationals | Covers
1 1 1 1 1 1 1 1 1
Chapters 1– 1
15 | 100% Verified A+ Grade CHAPTER 1. Establishing Contractual R
1 1 1 1 1 1 1 1 1 1
elationships 1
1. Which1of1the1following1are1essential1features1of1a1valid1simple1contract?1
• Offer1and1acceptance1only.1
• Offer,1acceptance1and1consideration1only.1
• Offer,1acceptance,1privity,1certainty1and1duress1only.1
Offer,1acceptance,1consideration,1intention1to1create1legal1relations1and1certainty1of1t
erms.1
2. Consideration,1an1essential1element1in1the1formation1of1a1valid1contract,1may1beidentified1as:1
• The1need1for1fairness1in1the1contract.1
• The1intention1of1the1parties1to1be1legally1bound.1A1balance1in1the1terms1of1the1agreement.1
The1'bargain'1element1of1a1contract.1
3. Which1of1the1following1is1an1example1of1good1consideration?1 Exceeding1 an1existing1duty.1
11
• Part-payment1of1a1debt.1
• Performing1an1existing1duty.1
• Agreeing1to1pay1a1tenant1for1improvements1already1made1to1a1rented1property.1
4. Intention1to1create1legal1relations1is1presumed1in1which1of1the1following1relationships:1
i)1Husband1and1wife1living1together.1ii)1
Parties1to1a1commercial1contract.1iii)1
Husband1and1wife1who1are1separated.1
iv)1Friends1who1are1part1of1a1lottery1syndicate.1
,1
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Legal and Regulatory Environment of Business
1 1 1 1 1 1
• All1of1the1above.1ii1only.1
ii,1iii1and1iv.
1
• i,1ii1and1iv.1
5. Which1of1the1following1does1NOT1have1the1right1to1enforce1a1contract?1
• The1parties1to1it.1
• Third1parties1to1an1insurance1contract1in1their1benefit.1
Third1parties1to1a1contract1concerning1the1carriage1of1goods.1
• A1party1subject1to1a1restrictive1covenant1on1land.1
6. Which1of1the1following1cases1established1the1doctrine1of1promissory1estoppel?1Central1London1Pro
perty1Trust1v1High1Trees1House1Ltd.1
• Combe1v1Combe.1
• Foakes1v1Beer.1
• Re1Select1move.1
7. How1would1the1courts1deal1with1a1clause1in1a1contract1for1the1sale1of1a1horse1whichpromised1the1sell
er1an1additional1£51fee1if1the1horse1proved1to1be1lucky?1
• It1would1be1enforced1in1the1same1way1as1any1other1clause.1
• It1would1be1held1as1illegal1as1a1gaming1contract.1
• The1entire1contract1would1be1held1as1unenforceable.1
The1clause1would1probably1be1held1unenforceable1due1to1lack1of1certainty.1
Page121of1861
8. Which1one1of1the1following1is1incorrect?1Consideration1must1be:1
• Adequate1but1it1should1be1sufficient.1Current1and1not1be1past.1Quantifiable1(having1a1legal1val
ue)1but1not1whimsical.1
• Exchanged1after1the1contract1has1taken1place.1
9. Which1one1of1the1following1shows1an1intention1to1be1bound?1
• Binding1in1'essence'1only.1Binding1in1'honour'1only.1
• This1is1a1'gentleman's1agreement'.1A1signature1on1a1legal1document.1
,1
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Legal and Regulatory Environment of Business
1 1 1 1 1 1
10. Which1of1the1following1is1NOT1necessary1for1an1enforceable1contract1to1exist1whensupported1by
1past1consideration:1
• The1act1that1is1the1subject1of1the1contract1must1have1been1requested1by1the1promisor.1
• There1must1have1been1in1the1contemplation1of1both1parties1that1payment1would1
Page131of1871
,1
1 1
Legal and Regulatory Environment of Business
1 1 1 1 1 1
have1been1made.1
A1written1contract1detailing1the1expectation1of1payment1is1in1existence1before1the1co
mmencement1of1the1act.1
All1the1other1elements1of1a1valid1contract1must1have1existed.1
CHAPTER 2. Competency of Parties and Free Consent
1 1 1 1 1 1 1 1
The1Indian1Contract1Act,118721is1divided1into…..1Chapters.1
31
81
101
121
The1Law1of1Contract1is1nothing1but1
A1child1of1commercial1dealing1
A1child1of1religion1
A1child1of1day1to1day1politics1A
1child1of1economics1
The1Contract1Act1came1into1force1
From111September118721but1with1retrospective1effect1
Before111September118721
From111September118721
•1 After111September118721
41.1The1Contract1Act1applies1to1
• Contracts1made1before111September118721
Page141of1871
