Business Law Mcq

Topics: Contract, Contract law, Void Pages: 7 (1018 words) Published: December 16, 2012
Answers are highlighted in yellow.

Application Exercise
BLaw Assignment #2
Time : 15 Min. Max. Marks- 15 Q. 1. In the following questions choose the most appropriate answer. .

1. One cannot plead doctrine of frustration for one’s own inaction a. True
b. False
c. Partly true
d. Partly false
2. ‘A’ contracts to take in cargo for B at a foreign port. Later, A’s government declares war against the country in which the port is situated. The contract-  
e. Is void ab initio
f. Bocomes void
g. Is valid
h. Is voidable at B’s option
3. Where time is the essence of the contract, and the promisor fails to do the agreed things on or before specified time, the contract is-  
a. contingent
b. illegal
c. voidable at the option of the promisor d. voidable at the option of the promisee  
4. A promisor can perform the promise
i. himself
j. through his authorized representative competent to perform k. through unauthorized agent
l. either a or b
5. Quasi contracts are exceptions situations wherein-
m. one party is bound to pay money in consideration of something done or suffered by the other party n. no contractual relation exists between the parties o. No agreement has been entered into by the parties

p. All the above
6. An agreement contingent on happening of an impossible event-  
a) is valid
b) is voidable
c) is illegal
d) becomes void when impossibility is discovered  
7. In case of novation,
q. old contract need not be performed
r. new contract must be performed
s. both a and b
t. either a or b

8. A person to whom money is paid by mistake or under coercion,
u. May use it for his advantage
v. Must repay it
w. Need not repay
x. None of the above
9. A agrees to pay B Rs. 1,000 if two straight lines enclose a space. The agreement is- y. valid
z. void
{. illegal
|. voidable
10. Where a promisor has offered to perform his promise and the promise refuses to accept the performance-  
}. the promisor is not responsible for non-performance ~. the promisor does not lose his rights under the contract . either a or b
. both a and b
11. Frustration of contract occurs when there is
. commercial impossibility
. supervening impossibility
. both a and b
. either a or b

12. Performance of a contingent contract is dependent on the  
. happening of the collateral event
. non-happening of the collateral event
. either (a) or (b)
. neither (a) nor (b)
13. A makes a contract with B to sell a horse to B at a specified price, if C, to whom the horse had been earlier offered, refuses to buy. This contract cannot be enforced by law-  
. at all
. unless and until C refuses to buy the horse
. unless and until B refuses to buy the horse
. unless and until A refuses to sell the horse
14. A moneylender promises to give a loan of Rs. 1 lakh to a borrower if he so chooses. This is a contingent contract  
. True
. Partly true
. False
. None of the above
15. Anup Jalota make a contract with Zee TV to sing two nights every week for next two months at a consideration of Rs. 1 lakh for each performance. On sixth night Mr. Jalota willfully absents himself but turns up on the seventh night at the appointed time and he is allowed to perform that night-  

a) a)      The contract is voidable at...
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