Top 150+ Solved Business Laws MCQ Questions Answer
Q. A agrees to sell his car to B at a price which B may be able to pay. This agreement is
a. Void
b. Valid
c. Voidable
d. Contingent
Q. An agreement to pay money money’s worth on the happening or non happening of aspecified uncertain event is a
a. Wagering agreement
b. Contingent contract
c. Quasi contract
d. Uncertain agreement
Q. An agreement to do an illegal act(eg: sharing the earnings of smuggling business) is
a. Valid
b. Void
c. Voidable
d. Contingent
Q. Where an agreement consists of two parts once legal and the other illegal and the legalpart is separable from the illegal one, such legal part is
a. Void
b. Valid
c. Voidable
d. Illegal
Q. A contingent contract dependent on the non happening of a future uncertain eventbecomes void when such event
a. Happens
b. Does not become impossible
c. Does not happen
d. Both (a) and (b)
Q. A agrees to pay Rs.1000 to B if a certain ship returns within a year. However, the shipsinks within the year. In this case, the contract becomes
a. Valid
b. Void
c. Voidable
d. Illegal
Q. A contingent contract dependent on the non happening of specified uncertain eventwithin fixed time can be enforced if the event
a. Does not happen within fixed time
b. Becomes impossible before the expiry of fixed time
c. Happens within the fixed time
d. Both (a) and (b)
Q. The basis of ‘quasi contractual relations’ is the
a. Existence of a valid contract between the parties
b. Prevention of unjust enrichment at the expense of others
c. Provision contained in section 10 of the Contract Act
d. Existence of a voidable contract between the parties
Q. Sometimes, a person finds certain goods belonging to some persons. In such case, thefinder
a. Becomes the owner of the goods and can use them
b. Is under a duty to trace the true owner and return the goods
c. Can sell the perishable goods if true owner cannot be found
d. Both (b) and (c)
Q. A, B and C jointly promised to pay Rs.60000 to D. A was compelled by D to pay theentire 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
Q. In commercial transactions, time is considered to be of the essence of contract, and ifthe party fails to perform the contract within specified time, the contract becomes
a. Voidable at the option of the other party
b. Void and cannot be enforced
c. Illegal for non compliance of legal terms
d. Enforceable in higher court only
Q. Where the performance of a promise by one party depends on the prior performance ofpromise by the other party, such reciprocal promises fall under category of
a. Mutual and Concurrent
b. Conditional and dependent
c. Mutual and independent
d. Both (a) and (b)
Q. When after the formation of a valid contract, an event happens which makes theperformance of contract impossible then the contract becomes
a. Void
b. Voidable
c. Valid
d. Illegal
Q. A party entitled to rescind contract, losses the remedy where
a. He has ratified the contract
b. Third party has acquired right in good faith
c. Contract is not separable and recession is sought of a party only
d. All of these
Q. The special damages ie, the damages which arise due to so a special or unusualcircumstances
a. Are not recoverable altogether
b. Are illegal being punitive in nature
c. Cannot be claimed as a matter of right
d. Can be claimed as a matter of right