Business Law (MCQs) Set-2

Q.1. Which of the following elements does not affect the free consent of the parties.

1. Coercion
2. Fraud
3. Incompetency
4. Undue influence

Answer: (C) Incompetency

Q.2. Which of the following acts does not fall under the categories of fraud?

1. Intentional false statement of facts
2. Active concealment of facts
3. Innocent false statements
4. Promise made without intention to perform

Answer: (C) Innocent false statements

Q.3. A contract made by mistake about Indian Law, is;

1. Void
2. Valid
3. Voidable
4. Illegal

Answer: (B) Valid

Q.4. An agreement in restraint of marriage is valid incase of the following persons

1. Minors
2. Educated
3. Married
4. None of these

Answer: (A) Minors

Q.5. Where an agreement consists of two parts once legal and the other illegal and the legal part is separable from the illegal one, such legal part is

1. Void
2. Valid
3. Voidable
4. Illegal

Answer: (B) Valid

Q.6. Sometimes, a person finds certain goods belonging to some persons. In such case, the finder

1. Becomes the owner of the goods and can use them
2. Is under a duty to trace the true owner and return the goods
3. Can sell the perishable goods if true owner cannot be found
4. Both (b) and (c)

Answer: (D) Both (b) and (c)

Q.7. When after the formation of a valid contract, an event happens which makes the performance of contract impossible then the contract becomes

1. Void
2. Voidable
3. Valid
4. Illegal

Answer: (A) Void

Q.8. What is legal terminology for the doing or not doing of something which the promisor desires to be done or not done?

1. Desires
2. Wishes
3. Considerations
4. Promise

Answer: (C) Considerations

Q.9. An agreement enforceable by Law is a

1. Promise
2. Contract
3. Obligation
4. Lawful promise

Answer: (B) Contract

Q.10. Which of the following statement is true?

1. Consideration must result in a benefit to both parties
2. Past consideration is no consideration in India
3. Consideration must be adequate
4. Consideration must be something which a promisor is not already bound to do

Answer: (D) Consideration must be something which a promisor is not already bound to do