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WorksheetsBBA - Business law - unit 1 & 2 - March 2024
Total questions: 60
Worksheet time: 31mins
Which of the following is not an essential element of a valid contract?
Offer and acceptance
Free consent and consideration
Lawful object
illegal Performance
The law of contract in India is contained in
Indian Contract Act 1871
Indian Contract Act 1872
Indian Contract Act 1873
Indian Contract Act 1874
What is the essential component of a consideration?
Move at the desire of the promisor
Must be real
Must be lawful
All of these
Contract= agreement+ (a)
Who among the following is not disqualified by law to enter into a contract? (1) A Major Person (2) A Lunatic (3) Insolvent person (4) Diplomatic Staff of foreign state
2 & 3
3 & 4
1 & 4
1 & 2
Which essential of valid offer is missing in the example- A says to B "I will sell you a car"?
Offer may be express
The terms of an offer must be clear
The offer must be communicated to offeree
An offer must be made with an intention to create legal obligations
How can an acceptance to an offer be made?
Written words
Spoken words
Conduct
All of these
Which one of the following is correct:
Past consideration is no consideration
Consideration can be past, present or future
Consideration can only be present
Consideration ca be present and future
What is consensus ad idem?
identity of subject
price
identity of minds
agreement
what is Jus in rem?
right of a person
right against a person
right against a property
right aganist a third party
what is void ab initio
void
voidable
void from very beginning
can be made valid
What is the meaning of consideration?
(a)
Agreement with minor is
(a)
A contract which comes into existence by action or implication
Express contract
Implied contract
none
both
A situation where Vanya enters into a contract which is created by law under certain circumstances is called as
Quasi contract
express contract
Natural contract
essential contract
Which of the following is an exception to the rule of “No Consideration, No Contract”?
Agreement made out of natural love and affection
Completed Gifts
Agreement to repay time-barred debts
All the above
What is the legal term for a contract that is valid but may be set aside by one of the parties?
Void contract
Voidable contract
Unenforceable contract
Executed contract
Business women Meenakshi threatens the ABC.Ltd company to enter into contract with her company. Hence, it is
Undue influence
Coercion
Void
Illegal agreement
Identical offers made by two parties to each other, in ignorance of each other’s offer are known as
Counter offer
Cross-offers
Standing offer
None of the above
An offer made to large number of people to the whole world is known as (a)
A contract may be discharged by...
breach
performance
frustration
agreement
2 types of breach of contract?
Actual breach of contract
Anticipatory or constructive breach of contract
Contract of Law
Contract of Acceptance
When an agreement between two parties is discharged by entering into a new agreement in the place of old agreement is known as
remission
recission
novation
alteration
Destruction of subject matter is considered as mode of discharge of contract by
performance
specific performance
Impossibilty of performance
None
An offer comes to an end when the offeree makes a modification in the terms of the offer is called
counter offer
cross offer
offer
implied offer
The latin term for " As much as earned is " is
quid pro quo
quantum meruit
consensus ad idem
none
The doctrine of privity of contract applies for
Stranger to a contract
offerer
acceptor
none
Which damages are awarded where the injured party has sustained damage of a short but not of a substantial nature
Nominal damages
ordinary damages
special damages
none
Damages which arise naturally in usual course of things from breach itself are called:
Special damages
Liquidated damages
Nominal damages
General or Ordinary damage
A contract is said to be induced by ______________ where the relations subsisting between the parties are such that one of the parties is in a position to dominate the will of the other
undue influence
mistake
fraud
misrepresentation
Caveat Emptor means
Let the supplier beware
Let the buyer beware
Unpaid seller
None
What is meant by the term "specific goods"?
Specific goods are goods that are identified and agreed upon at the time a contract of sale is made.
Specific goods are goods that have been specifically made to fulfil the buyer's order
Specific goods are goods that have a specific (rather than a general) use
Specific goods are goods that the seller has had to order specifically for the buyer
What are "existing goods"?
Existing goods are goods that the seller has left over from a previous sale.
Existing goods are goods that are either owned or possessed by the seller.
Existing goods are goods that the seller knows exist but needs to order them specifically for the buyer.
Existing goods are goods that have already been manufactured and therefore exist.
When buyer does not pay the price of the goods the seller known as the unpaid seller
True
False
The meaning of the maxim 'nemo dat quad non habet' is ...
let the buyer beware
a seller must sell goods at a reasonable price
no one can give a better title that the owner has
the buyer is always right
____________ is the right to the seller to retain possession of the goods until payment is made
Lien
Charge
Resale
The contracting parties in sale of goods known as
offeror and offeree
agent and principle
seller and buyer
An advertisement in the newspaper is
Offer
Acceptance
Invitation to offer
Invitation to acceptance
Consideration must move at the desire of
Promisor
Promisee
Both
Stranger
The subject matter of a contract of sale of goods?
IPR
Movable Goods
Property
Immovable goods
Goods which are not separated from the stocks of the seller even after they
are sold are called
Specific goods
Ascertained goods
Unascertained goods
Normal goods
Stipulations which are very essential to formation of a contract is known as
Conditions
warranties
Representations
Opinions
A contract where both parties have yet to perform the contract is called as (a)
The general rule of law that only parties to a contract may sue and be sued on that contract is
Doctrine of Privity of contract
Doctrine of Unpaid seller
Doctrine of Emptor
None
An agent appointed by an agent is known as
Subagent
co agent
Dual Agent
Broker
A person who has sold goods to another person but has not been paid for the goods or been paid partially is called
Seller
Buyer
Unpaid seller
Professional Buyer
The term Pawnor can be seen in a contract of ____
Pledge
Bailment
Agency
Guarantee
______ is the bailment of goods as security for payment of a debt or performance of a promise
Equitable Mortgage
Pledge
Gratuitous Bailment
Mortgage
When a customer gives his/her valuables, Securities to the bank for safe keeping then the customer became the _______
Bailor
Creditor
Debtor
Bailee
When a bank grants loan or other credit facilities to the customer then the Banker is ____
Borrower
Creditor
Debtor
Agent
A non-gratuitous bailment or bailment for reward is one that involve some consideration passing between the bailor and the bailee.
True
False
Partly True
Partly False
A contract of guarantee is a tripartite agreement between the __________
principal debtor, bailor and indemnifier
pawnor. bailee and indemnity holder
principal debtor, bailor and surety
principal debtor, creditor and surety
A principal owes a duty to ________ the agent for any losses the agent suffers because of the principal. This duty usually arises where an agent is held liable for the principal's misconduct.
indemnify
Ratify
Rectify
Vilify
A sub-agent is a person employed by and acting under the control of __________.
The principal only
The original agent in the business of agency only
Both the principal and original agent only
Neither the Principal nor the original agent
A Contract of Indemnity is a form of _________.
Void Agreement
Quasi Contract
Contingent Contract
Wagering Contract
What are "future goods"?
Future goods are goods that the seller needs to order specifically to fulfil the contract of sale.
Future goods are goods that the buyer does not take with him/her at the time of purchase but are to be delivered at a future time
Future goods are goods to be manufactured or acquired by the seller after the making of the contract of sale.
Future goods are goods sold on credit which the buyer can pay for in the future
