LIST OF ATTEMPTED QUESTIONS AND ANSWERS

True/False
Question Money order, Postal order, Share Certificates, Deposit receipts and such other documents are
Negotiable Instruments.
Correct Answer False
Your Answer False

Select The Blank

Question In order to become a holder, a person must possess the instrument under some ________ title.
Correct Answer Lawful
Your Answer Honoured

Select The Blank

Question The company does not possess ________, still it is a person in the eyes of law.
Correct Answer Fundamental rights
Your Answer Fundamental rights

Select The Blank

Question Under ________ influence the dominant party may hold a real authority over the other party.
Correct Answer Undue
Your Answer Due

Select The Blank

Question A misrepresentation may be committed by causing a mistake ________.
Correct Answer Innocently
Your Answer Innocently

True/False
Question Corporation is qualified to contract by the Law.
Correct Answer False
Your Answer False

Multiple Choice Multiple Answer

Question The unpaid seller has following rights against the goods
Correct Answer stoppage in transit , withholding the delivery of goods
Your Answer stoppage in transit , withholding the delivery of goods

Multiple Choice Single Answer

Question The object of carrying on a business must be :-
Correct Answer Sharing of profits
Your Answer Sharing of profits

Select The Blank

Question Holding out means ________ leading another person to believe in something.
Correct Answer Falsely
Your Answer Falsely

Select The Blank

Question A partner has a right to settle the ________ of the firm out of the property of the firm.
Correct Answer Debts
Your Answer Debts

Multiple Choice Multiple Answer

Question Limited companies can be formed for promoting :-
Correct Answer Commerce , Art , Religion
 Your Answer Commerce , Art , Religion

Multiple Choice Multiple Answer

Question Following are the conditions needed to prove an act of a partner is an act of a partnership firm
Correct Answer such a act be done in a ordinary course of a partnership firm , it must be related to the
business of the firm , act must have been done in the name and on behalf of the firm
Your Answer such a act be done in a ordinary course of a partnership firm , it must be related to the
business of the firm , act must have been done in the name and on behalf of the firm

Multiple Choice Multiple Answer

Question A minor admitted to the benefits of partnership is :-
Correct Answer Entitled for the profits agreed upon , Not personally liable for any act of firm , Not
entitled to sue partners for account
Your Answer Entitled for the profits agreed upon , Not personally liable for any act of firm , Not entitled
to sue partners for account

True/False
Question An agreement without consideration is void.
Correct Answer True
Your Answer True

Multiple Choice Multiple Answer

Question In the absence of usage or custom of trade to the contrary, the implied authority of a partner
does not empower him to :-
Correct Answer Admit any liability in a suit or proceedings against the firm , Withdraw a suit or
proceeding filed on behalf of the firm
Your Answer Admit any liability in a suit or proceedings against the firm , Transfer movable property
belonging to the firm , Withdraw a suit or proceeding filed on behalf of the firm

Multiple Choice Single Answer

Question In an agreement to sell, the seller is responsible for all the risk of loss as he is the :-
Correct Answer Owner
Your Answer Owner

Multiple Choice Multiple Answer

Question Following are the conditions to be fulfilled before a seller can be deemed to be an unpaid seller
Correct Answer he must have an immediate right of action for the price , he must have sold goods
against cash and the price must be due
Your Answer he must be unpaid wholly and not partly , he must have an immediate right of action for
the price , he must have sold goods against cash and the price must be due

Select The Blank

Question Any person who is of age of majority according to the law to which he is a subject, may
________ an agent.
Correct Answer Appoint
Your Answer Appoint

Select The Blank

Question The person acting as an agent on behalf of the principal should act ________.
Correct Answer Honestly
Your Answer Adequately

Multiple Choice Single Answer

Question Negotiable Instrument means :-
Correct Answer Promissory Note
Your Answer Promissory Note
Multiple Choice Single Answer
Question The feature of the Contingent Contracts is that they :-
Correct Answer Depend upon the circumstances, which makes them valid or void
Your Answer Depend upon the circumstances, which makes them valid or void

Multiple Choice Single Answer

Question If consent to the contract was not caused by fraud or misrepresentation, the contract is :-
Correct Answer Voidable at the option of the party on whom fraud and misrepresentation was practiced
Your Answer Voidable at the option of the party on whom fraud and misrepresentation was practiced

True/False
Question A Cheque is a Bill of Exchange.
Correct Answer True
Your Answer False

Multiple Choice Multiple Answer

Question An unregistered firm can institute a suit against
Correct Answer wrongful use of the trade mark , wrongful use of the firm name
Your Answer wrongful use of the trade mark , wrongful use of the firm name

Match The Following

Question Correct Answer Your Answer

Minor Partner Admitted for profits only Admitted for profits only

Dissolution of a Partnership Death or Insanity of the partners Death or Insanity of the partners

Firm Partners Partners

Partner Agents of the firm Agents of the firm

Partnership Can be formed at Will Can be formed at Will

True/False
Question Copies of memorandum and articles shall not be given to members.
Correct Answer False
Your Answer False

Multiple Choice Single Answer

Question Goods identified at the time of contract of sale are known as :-
Correct Answer Ascertained goods
Your Answer Certain goods

Select The Blank

Question Special resolution and confirmation by ________ is required for alteration of Memorandum.
Correct Answer Company Law Board
Your Answer Company Law Board

Select The Blank

Question A ________ partner is like an undisclosed principal.
Correct Answer Sleeping
Your Answer Sleeping

Multiple Choice Single Answer

 Question According to the Consumer Protection Act of 1986, goods means as defined under :-
Correct Answer Sale of Goods Act, 1930
Your Answer Transfer of Property Act

True/False
Question In formal contracts, consideration is not required.
Correct Answer True
Your Answer False

Match The Following

Question Correct Answer Your Answer

Barter system Exchange of goods for goods Exchange of goods for goods

Sale of goods Act, 1930 Movable goods Implied warranty

Caveat emptor Let the buyer beware Let the buyer beware

Sale Exchange of goods for price Exchange of goods for price

Multiple Choice Multiple Answer

Question Following are the elements which constitute a partnership
Correct Answer there must be a contract regarding a partnership , there must be an association of two or
more persons
Your Answer there must be a contract regarding a partnership , there must be an association of two or
more persons

Multiple Choice Single Answer

Question Service rendered by a doctor to his patient, is a :-
Correct Answer Professional service
Your Answer Professional service

Multiple Choice Single Answer

Question Under a contract of sale, the property in goods is :-
Correct Answer Immediately transferred from the seller to the buyer
Your Answer Immediately transferred from the seller to the buyer

Multiple Choice Multiple Answer

Question Following persons can not be called partners
Correct Answer minors , insolvents , co-owners without the agreement to carry on the business
Your Answer minors , insolvents , co-onwers with the agreement to carry on the business

True/False
Question The Indian Contract Act, 1872 includes the penal provisions in case of breach of contract.
Correct Answer False
Your Answer True

True/False
Question Company is treated as a legal person distinct from its members.
Correct Answer True
Your Answer True

True/False
Question The statement in lieu of prospectus is prepared only for advertising purpose.
Correct Answer False
 Your Answer True

Multiple Choice Multiple Answer

Question Following are the general agents :-
Correct Answer A manager of a branch office , Managing Director of a company , Commission agent
Your Answer A manager of a branch office , Managing Director of a company

Multiple Choice Multiple Answer

Question Ratification can be valid, only if :-
Correct Answer The act to be ratified is legal , Done for the whole transaction , Communicated to the
concerned party
Your Answer The act to be ratified is legal , Done for the whole transaction , Communicated to the
concerned party

True/False
Question Partners can decide their rights and liabilities in the partnership deed.
Correct Answer True
Your Answer True

Multiple Choice Single Answer

Question A legal representative being holder of the Negotiable Instrument can sue :-
Correct Answer After the death of the holder
Your Answer Any time during life time of legal representation

Multiple Choice Multiple Answer

Question A company is :-
Correct Answer Voluntary Association of persons , An artificial legal person , A separate legal entity
Your Answer An artificial legal person , A separate legal entity

Multiple Choice Multiple Answer

Question There can not be any partnership where a business is carried on
Correct Answer with a benevolent purpose , where any one of the partners is entitled to total profit
earned
Your Answer with a benevolent purpose , where any one of the partners is entitled to total profit earned

Select The Blank

Question A proposal comes to an end by its ________.
Correct Answer Rejection
Your Answer Rejection

Multiple Choice Single Answer

Question The rights and liabilities of an expelled partner :-
Correct Answer Are exactly same as that of a retiring partner
Your Answer Do not have any rights at all