Business Law (MCQs) Set-3

Categories: Education

Q.1. An agreement made with free consent to which the consideration is lawful but inadequate is;

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

Answer: (B) Valid

Q.2. A contract with the minor, which is beneficial for him, is;

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

Answer: (C) Valid

Q.3. When the consent to an agreement is obtained by coercion, the agreement is voidable at the option of

1. Either party to the agreement
2. A party whose consent was so obtained
3. A party who obtained the consent
4. None of these

Answer: (B) A party whose consent was so obtained

Q.4. Where the consent of both the parties is given by mistakes, the contract is;

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

Answer: (A) Void

Q.5. A mistake as to law not in force in India has the same effect as;

1. Mistake of fact
2. Mistake of Indian Law
3. Fraud
4. Misrepresentation

Answer: (A) Mistake of fact

Q.6. An agreement in restraint of legal proceedings is void. It does not cover an agreement which

1. Restrict absolutely the parties from enforcing their legal rights.
2. Cuts short the period of limitation
3. Discharges a party from liability or extinguishes the rights of a party
4. Provides for a reference to arbitration instead of court of law

Answer: (D) Provides for a reference to arbitration instead of court of law

Q.7. The basis of 'quasi contractual relations' is the

1. Existence of a valid contract between the parties
2. Prevention of unjust enrichment at the expense of others
3. Provision contained in section 10 of the Contract Act
4. Existence of a voidable contract between the parties

Answer: (B) Prevention of unjust enrichment at the expense of others

Q.8. The special damages ie, the damages which arise due to so a special or unusual circumstances

1. Are not recoverable altogether
2. Are illegal being punitive in nature
3. Cannot be claimed as a matter of right
4. Can be claimed as a matter of right

Answer: (C) Cannot be claimed as a matter of right

Q.9. When the offeree offers to qualified acceptance of the offer subject to modifications and variations he is said to have made a

1. Standing, open or continuing offer
2. Counter offer
3. Cross offer
4. Special offer

Answer: (B) Counter offer

Q.10. Which is the following is false? An offer to be valid must;

1. Intend to create legal relations
2. Have certain and unambiguous terms
3. Contain a term the non‐compliance of which would amount to acceptance
4. Be communicated to the person to whom it is made

Answer: (C) Contain a term the non‐compliance of which would amount to acceptance