QUIZ 1: Introduction to Business Law

Date: February 8, 2016

ID:
Full Marks: 15

Name:

Section A: Multiple Choice Questions

10 X 0.5 = 5
1.
Every promise and every set of promises forming the consideration for each
other
A.
A proposal
B.
An offer
C.
An agreement
D.
None of above
2.
A proposes by letter to sell a house to B The Communication of the proposal
is complete
A.
When A make such proposal
B.
When B accepts the proposal
C.
Both (a) and (b)
D.
None of above
3.
A proposal may be revoked at any time
A.
Before the communication of its acceptance B.
Before the
rejection of its communication
C.
Both (a) and (b)
D.
None of above
4.
All the agreements are contracts if they are made by free consent of the
parties competent to contract for a _____ consideration and object
A.
Any
B.
Lawful
C.
Unlawful
D.
None of above
5.
The Term "Consent" means
A.
Voluntary accordance with or concurrence in what is done or proposed
by another
B.
Free mind
C.
Free will
D.
All of the above
6.
A proposal when accepted become a
A.
Promise
B.
Offer
C.
Acceptance
D.
Contract
7.

A promised to marry B. Later on B died. This contract of marriage

A.
Becomes void
B.
Is void from very beginning.
C.
Is valid
D.
Is illegal now.

8.

An offer and its acceptance is the basic requirement of an agreement and as

per this requirement an offer by one party
A.
Should be made to the other who is related to him.
b.
May also be made to himself.
C.
Should be made to another who may or may not be related to

him.
D.
Should be made to another before the Registrar.
9. Offer can be withdrawn when
A.
Before the acceptance of offers against the oferror
B.
After the acceptance of offers against the oferror
C.
At any time
D.
Cannot be withdrawn
10. Counter offer is a --------------A. Change the original offer
B. Rejection of original offer
C. Same as original offer

QUIZ 1: Introduction to Business Law

Date: February 8, 2016
ID:
Full Marks: 15
D. not an offer at all

Name:

Answer the following questions in your answer script

Total = 10
1.

Karim advertises in newspapers that he would like to sell his car for TK. 5
million. After one week, Rakib comes and offers Tk. 5 million, but Karim
declines to sell the car to Rakib. Is it a contract? Why or why not?
-----------------------------------------------------------------------------------------1
Answer: This is not a contract. Karims advertisement in the newspaper with
the intention of selling his car for Tk. 5 million is an invitation to treat. This
does not legally bind the Karim to sell his car to Rakib advertised in the
newspaper.

2. Dallas offered to sell his house to Mangala for TK. 15 Million by way of posting
a letter on 10th March 2009 and asked Mangala to make the acceptance by
post. The letter was wrongly addressed and it reached Mangala only on the
15th of March 2009. Mangala accepted the offer and posted a letter on the
same day. Meanwhile since there was no reply from Mangala even on 16 th,
Dallas sells his property to Yapa. The letter of acceptance by Mangala did not
reach Dallas until 18th of March. Is Mangala entitled to the contract?
------------------------------------------------2
Answer: According the law of offer and acceptance, an acceptance by the
offeree must be communicated with the offeror by the reasonable time
mentioned in the terms and conditions of the offer. Held, Dallas did not
receive the acceptance from Mangala even on 18 th March, Mangala is not
entitled to the contract. Due to wrong address and delay will not result any
favour to Mangala in this context.
3. P sees Qs house on fire and helps in extinguishing it. Q did not ask for his
help. So, P cannot demand payment for his services. Why?
------------------------------------------------------------------------1
Answer: Q cannot demand for any payment, as it is a voluntary act by Q.

QUIZ 1: Introduction to Business Law

Date: February 8, 2016
ID:
Name:
Full Marks: 15
4. G promises for no consideration to give H TK. 1, 500. This is a void
agreement. Why? -------------1
Answer: we know, no consideration, no contract. So, the contract is void ab
initio.
5. X promises to supply Y one gram of gold brought from the sun. The
consideration is sham and illusory and there is not contract. Why?
-------------------------------------------------------------------------1
Answer: This an impossible act. X cannot get and bring any gold from Sun.
6. The rule No consideration, No contract does not apply to completed gifts.
True or False. ------ 1
Answer: TRUE. Adequacy is not a condition for gifts.
7. P finds Ss purse and gives it to him. S promises to give P TK. 100/. This is a
valid contract. True or False.
-----------------------------------------------------------------------------------------------------------------1
Answer: False. An offer should be communicated to the offeree. In this case,
S did not know about the offer for finding the purse. So, S cannot claim the
money.
8. Comment on To form a valid contract, consideration must be adequate.
---------------------------- 2
Answer : Adequacy is not necessary for consideration.