BUSINESS LAW QUESTIONS AND 100% CORRECT ANSWERS

BUSINESS LAW QUESTIONS AND 100%
CORRECT ANSWERS
191. An offer may lapse by

A. Revocation
B. Counter Offer
C. Rejection of offer by offeree
D. All of these

View answer
D



192. Which of the following statement is true?

A. There can be a stranger to a contract
B. There can be a stranger to a consideration
C. There can be a stranger to a contract & consideration
D. None of the above

View answer
Correct answer: (B)
There can be a stranger to a consideration

193. Ordinarily, a minor's agreement is

A. Void ab initio
B. Voidable
C. Valid
D. Unlawful

View answer
Correct answer: (A)
Void ab initio

194. The threat to commit suicide amounts to

A. Coercion
B. Undue influence
C. Misrepresentation

, D. Fraud

View answer
Correct answer: (A)
Coercion

195. On the valid performance of the contractual obligations by the parties, the contract;

A. Is discharged
B. Becomes enforceable
C. Becomes void
D. None of these

View answer
Correct answer: (A)
Is discharged

196. In case of anticipatory breach, the aggrieved party may treat the contract;

A. As discharged and bring an immediate action for damages
B. As operative and wait till the time for performance arrives
C. Exercise option either (a) or (b)
D. None of these

View answer
Correct answer: (C)
Exercise option either (a) or (b)

197. A contingent contract depend on the happening of the future uncertain event can be enforced
when the event;

A. Happens
B. Becomes impossible
C. Doesn't happen
D. Either of these

View answer
Correct answer: (A)
Happens

198. On the acceptance of an offer by a offeree

A. Only the acceptor becomes bound by accepting the offer

, B. Only the offeror becomes bound as his terms are accepted
C. Both the acceptor and offeree becomes bound by the contract
D. None of these

View answer
Correct answer: (C)
Both the acceptor and offeree becomes bound by the contract



199. Which of the following persons are not competent to contract?

A. Minors
B. Persons of unsound mind
C. Persons disqualified by law
D. All of these

View answer
Correct answer: (D)
All of these

200. When the consent of a party is obtained by coercion undue influence, fraud or
misrepresentation, the contract is;

A. Void
B. Voidable
C. Valid
D. Illegal

View answer
Correct answer: (B)
Voidable



1. 21

Business Law

201. Where the consent of a party is obtained by misrepresentation, the contract is;

A. Valid
B. Void
C. Voidable

, D. Illegal

View answer
Correct answer: (C)
Voidable

202. A agrees to pay Rs.5 lakhs to B procures an employment for A in Income Tax Department.
This agreement is

A. Void
B. Valid
C. Voidable
D. Contingent

View answer
Correct answer: (A)
Valid

203. An agreement to do an illegal act(eg: sharing the earnings of smuggling business) is

A. Valid
B. Void
C. Voidable
D. Contingent

View answer
Correct answer: (B)
Void

204. LA, B and C jointly promised to pay Rs.60000 to D. A was compelled by D to pay the entire
amount of Rs.60000. Here

A. A can file a suit against D for recovery of the amount exceeding his share
B. A is entitled to recover Rs.20000 each from B and C
C. On payment by A, the contract is discharged and B and C are also not liable to A.
D. D is not justified here and is liable to refund the entire amount to A

View answer
Correct answer: (B)
A is entitled to recover Rs.20000 each from B and C

205. Can a person who is usually of unsound, but occasionally of sound mind, make a contract?