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(d) contract
2. Every promise and every set of promises, forming the consideration for each other, is an
(a) agreement
(b) contract
(c) offer
(d) acceptance.
3. Promises which form the consideration or part of the consideration for each other are
called
(c) willingness to do or abstain from doing an act in order to obtain the assent of other thereto
7. Under section 2(b) if the person to whom the proposal is made signifies his assent the
proposal is said to have been
(a) accepted
(b) agreed
9. When, at the desire of the promisor, the promisee or any other person has done or
abstained from doing or, does or abstain from doing or promises to do or to abstain from
doing something, such act or abstinence or promise under section 2(d) is called
(d) acceptance.
10. Promises which form the consideration or part thereof, for each other under section
2(F) are called
(b) agreements
(d) consideration.
11. Every promise or set of promises forming the consideration for each other under
section 2(e) is called
(b) contract
(c) agreement
12. An agreement enforceable by law at the instance of one party & not of other party
under section 2(i) is called
(a) enforceability
(b) acceptance
(c) promise
(d) proposal.
(a) offer
18. Tender is
(a) an offer
(d) a promise.
(b) when it is put in the course of transmission to him so as to be out of power of the acceptor
(c) when it is communicated to the acceptor that the acceptance has reached the proposer
(b) be unqualified
(d) be conditional.
(a) at any time before the communication of acceptance is complete as against the promisee
(b) void
(c) voidable
(d) illegal.
(a) there is a concluded contract as the letter of acceptance is put in the course of transmission
(b) there is no concluded contract as the acceptance has not come to the knowledge of the
proposer
(c) there is no concluded contract as the acceptance has not been communicated to the proposer
35. When the consent to the contract is caused by coercion, the contract under section 19 is
(a) valid
(b) voidable
(c) void
(d) illegal.
36. A's son forged B's name to a promissory note. B under threat of prosecuting A's son
obtains a bond from A for the amount of the forged note. If B sues on this bond the court
37. When the consent is caused by misrepresent-tation, the contract under section 19 is
(a) valid
(b) void
(c) voidable
(d) illegal.
38. When the consent is caused by undue influence, the contract under section 19A is
(a) valid
(b) void
(c) voidable
(d) illegal.
39. Where both the parties are under mistake as to matter of fact, the contract under
section 20 is
(a) voidable
(b) void
(c) valid
(d) illegal.
40. Where one of the parties is under a mistake as to matter of fact the contract is
(a) valid
(b) void
(c) voidable
(d) illegal.
42. If only a part of the consideration or object is unlawful, the contract under section 24
shall be
(a) valid
(b) voidable
(c) void
(d) illegal.
(a) valid
(b) voidable
(c) void
(d) illegal.
(a) both the law and parties regard, as having some value
45. If the proposer prescribes the mode & manner of acceptance, the acceptance
(a) minor
(b) insane
49. A contract which is valid initially however, ceases to be enforceable subsequently, the
contract
50. Agreements, the meaning of which is not certain or not capable of being made certain
under section 29 is
(a) void
(b) voidable
(c) illegal
(d) valid
(a) valid
(b) voidable
(c) void
(d) unenforceable
53. An agreement not to pursue any legal remedy to enforce the rights under section 28 is
(a) valid
(b) voidable
(c) void
(d) unenforceable.
54. An agreement not to persue legal remedies but to refer the dispute to the arbitrator,
under section 28 is
(a) valid
(b) voidable
(c) void
(d) unenforceable.
55. An agreement to refer the dispute to the arbitrator is valid
(a) void
(b) voidable
(c) valid
(d) unenforceable
(a) unlawful
(b) void
(c) voidable
(d) valid.
(a) void
(b) voidable
(c) valid
(d) unenforceable
59. If only a part of the consideration or object is unlawful, the contract under section 24
shall be
(b) committing or threatening to commit any act which is forbidden by Indian Penal Code
(c) unlawful detaining or threatening to detain any property with an intention to causing any
person to enter into an agreement
(b) one party has no choice but to accept & sign the contract
(a) specifies the circumstances in which promises are binding on the parties to the contract
(b) lays down certain norms by which the parties are bound
(c) lays down the circumstances under which a promise may be made
(b) any breach of duty, which gains an advantage to the person committing it, by misleading
another to his prejudice
(c) causing a party to make an agreement to make a mistake as to the subject matter of contract
(a) valid
(b) voidable
(c) void
(d) unenforceable.
(a) suggestion as a fact which is not true, by one who does not believe it to be true
70. Contract without consideration made in writing & registered and made on account of
natural love and affection is
(a) void
(b) voidable
(c) valid
(d) unenforceable.
(a) void
(b) voidable
(c) unenforceable
(a) fraud
(b) misrepresentation
(b) when made to compensate a person who has already done something voluntarily
74. A contract based on the happening or non- happening of a future event under section
31 is called
(a) is void
(d) is voidable.
(a) is void
(c) void
(d) valid.
(a) void
(b) valid
(c) voidable
(d) unenforceable.
82. A contingent contract based on the specified uncertain event happening within a fixed
time under section 35
(a) remains valid even if the event does not happen within that fixed time
(c) becomes void if the happening of that event becomes impossible before the expiry of time
fixed
83. A contingent contract based on the specified uncertain event not happening within a
fixed time under section 35
(a) can be enforced if the event does not happen within the time fixed
(b) can be enforced if before the expiry of time fixed, it becomes certain that such an event shall
not happen
(c) the promise through his representa-tive irrespective of the competency of that representative
85. A promisee can accept the performance (a) from the promisor himself
89. Where one of the joint promisors makes a default in contribution of performance
(a) the other joint promisors have no right against the defaulter
(a) can sue any one of them for the entire promise
(b) can sue any one of them to the extent of his share in the joint promise
(a) can enforce the contract against the survivor(s) of the said joint promisor(s) alongwith the
joint promisors who are alive
(b) cannot enforce the contract against the survivor(s) of the said joint promisor(s)
92. In a contract not specifying the time for performance, the promisor can perform the
contract
(b) the promisor has to apply to the promisee for appointment of a place of performance &
perform the promise at that place
(c) the promisor need not seek any instructions from the promisee as to the place of performance
(d) the promisor can perform the promise at a place other than the place appointed by the
promisee.
95. In case the promisee prescribes the manner and time of performance of promise
(a) the performance must be in the manner and at the time prescribed
(b) the performance can be in a different manner but at the time prescribed
(c) the performance can be in the manner prescribed but at a time beyond the time prescribed
(d) the performance need not be in the manner and time prescribed.
96. If the time of performance of the contract is the essence of the contract and the
promisor fails to perform the contract by the specified time
97. If the time is not the essence of the contract the failure to perform the contract by the
specified time makes the contract
(a) void
(c) remains valid but the promisee can claim compensation for the loss suffered by him by such
failure
(d) remains valid & can be performed at any subsequent time without being liable for the loss
suffered by the promisee.
98. In contract for sale of immovable property the presumption is that the time is
(c) the essence of the contract but failure does not make the contract voidable
(d) not the essence of the contract but makes the contract voidable at the instance of the other
party.
99. Reciprocal promises provide for doing certain things which are legal & certain others
which are illegal, under section 57
(b) the first set is voidable, but the second set is void
(c) the first set is valid but the second set is void
(d) the entire set of promises is valid.
(b) void
(a) formulation and regulation of General Partnership Firms and Limited Liability formed under
Indian Partnership Act, 1932
(b) formulation and regulation of Joint Ventures with unlimited liability formed under Indian
Contract Act, 1872
(c) formulation and regulation of Chit Funds Organisations with unlimited liability formed under
the Chit Funds Act, 1982
(d) formation and regulation of Limited Liability Partnership with limited liability formed under
the Limited Liability Partnership Act, 2008.
2. Foreign Limited Liability Partnership (FLLP) under the Limited Liability Partnership
Act, 2008 means
(a) a Limited Liability Partnership formed, incorporated or registered in that country to which the
partners belong
(b) a Limited Liability Partnership formed, incorporated or registered under Economic Council
of UNO
(d) a Limited Liability Partnership formed, incorporated or registered outside India which
establishes a place of business within India.
3. Every Limited Liability Partnership as per the Limited Liability Partnership Act, 2008
shall have at least two Designated Partners (DPs) who are individuals and
4. Prior to the Indian Partnership Act, 1932 which came into force from 1 October, 1932
except section 69 which came into force from 1 October, 1933, the law of partnership was
provided in
(b) permissible
6. An act, to be called on 'act of a firm', within the meaning of section 2(a) of the Indian
Partnership Act, 1932 is
(b) only such acts which give rise to a right enforceable by or against the firm
(c) such acts which do not give rise to a right enforceable by or against the firm
7. Any act or omission, to be an act of a firm, within the meaning of section 2(a) of the
Indian Partnership Act, 1932 must be act or omission of
(a) all the partners
10. Under section 2(b) of the Indian Partnership Act, business includes
(a) section 3
(b) section 4
(c) section 5
(d) section 6.
(b) creation of the choice and voluntarily agreement between the concerned parties
13. Which of the following enactments insist for a written agreement of partnership
16. The relation of partnership arises from contract and not from status, has been
prescribed under
(a) section 4
(b) section 5
(c) section 6
(d) section 7.
(a) can be assessed as an entity distinct and separate from its partners
(b) cannot be assessed as an entity separate and distinct from its partners
(c) can be assessed as an entity distinct and separate from its partners only with the permission of
the court
(d) can be assessed as an entity distinct and separate from its partners only if all the partners
agree for the same.
21. The historic case laying down the test for determining the existence of a partnership is
22. The mode of determining the existence of partnership has been laid down in
(a) section 6
(b) section 5
(c) section 9
(c) the receipt by a person of a payment varying with the profits earned by business
(c) partnership between individual mental of one firm and the individual members oil another
firm
(c) an individual
27. A Hindu undivided family is entitled to enter into an agreement of partnership with
(c) an individual
(a) partnership between the Karta of a joint Hindu family in his representative capacity and an
individual co-parcener of the same family
29. Section 5 of the Indian Partnership Act, 1932 does not apply to
32. A right to participate in profits, although strong but not a conclusive test of
partnership. It was so held in
33. Which of the following is not an essential requisite for creating a partnership as per
section 4
34. A person who has lent money to a person or firm engaged in a business and has agreed
to take a proportion of the profits of the business in addition to or in lieu of his interest,
does not by that reason alone becomes a partner, in the business, has been laid down in
(a) Badeley v. Consolidated Bank
35. The Indian Partnership Act, 1932 provides for and recognises
36. A partnership for which no period or duration is fixed, under the Indian Partnership
Act, 1932 is known as
(d) co-ownership.
37. Under section 7 of the Indian Partnership Act, 1932, partnership at will is subject to
38. Which of the following is an exception to the partnership at will, as provided under
section 7 of the Indian Partnership Act, 1932
39. Where a partnership firm is constituted for a fixed period and after the expiration of
that term, the firm continues to carry on business, without any new agreement,
(a) the partnership stands extended till the new agreement is made
(d) the partnership stands dissolved on the date of expiry of the term and no partnership can be
said to be in existence.
(a) a partner of a firm can retire from the firm at any time by giving a notice of his intention to
retire to his co-partners
(b) a partner of a firm can dissolve the firm at any time by giving a notice of his intention to
dissolve the firm to his copartners
41. The test to determine whether the given partnership is a 'partnership at will' and
'whether the partnership could be dissolved by a single partner', has been laid down in
42. For constituting a partnership within the meaning of section 4 of the Indian
Partnership Act, 1932
43. The principles governing partners' mutual relations have been laid down in
45. Under section 9 of the Indian Partnership Act, 1932, in doing best for the common body
(b) a partner is liable to render the accounts to other partners in a fiduciary capacity
46. Under section 10 of the Indian Partnership Act, every partner is under a duty
(a) to indemnify the firm for any loss caused to it by his fraud in the conduct of the business of
the firm
(c) not to carry on any business other than that of the firm
48. Under section 11 of the Indian Partnership Act, 1932, in case of any conflict between
the provision of the Act and the articles of the agreement, the articles of the agreement with
it, will be
(a) valid
(b) invalid
(a) valid
(b) voidable
(c) void
(d) invalid.
(c) a mixed statement of rights and duties of partners in reference to the conduct of the business
52. The rule of majority contained in section 12(c) of the Indian Partnership Act, 1932 is
applicable in
53. The rule of unanimity contained in section 12(c) of the Indian Partnership Act, 1932 has
a reference to
54. The rights and duties of a partner contained in section 12 of the Indian Partnership
Act, 1932 are
(b) on the date mentioned in the agreement irrespective of whether the business has commenced
or not on that date
(c) only on the date when the business is actually commenced
57. The maxim 'socii mei socius meu socius non est' means
(a) two
(b) five
(c) ten
(d) twenty.
59. The maximum number of partners in a partnership, has been provided under
60. Under section 11 of the Indian Companies Act, 1956 for a non-banking business, the
minimum number of partners can be
(a) ten
(b) twenty
(c) twenty-five
(d) thirty.
61. For a banking business, the maximum number of partners in a partnership, under
section 11 of the Indian Companies Act, 1956, can be
(a) ten
(b) fifteen
(c) twenty
(d) twenty-five.
62. A partnership in which the number of partners exceeds than that allowed under section
11 of the Indian Companies Act, shall be
(a) valid
(d) illegal.
(a) have a remedy against each other for the partnership dealings and transactions
(b) have no remedy against each other for the partnership dealings and transactions
(c) have a remedy against each other for the partnership dealings and transaction only with the
permission of the court
65. If the partners are equally divided on a issue, the rule is: 'in re comtnuni potior est
conditio prohibentis', which means
(b) those who do not forbid i.e., in favour of the change, must have their way
66. A partner has a right to have access to all the books of accounts etc., of the firm
67. A partner has a right to examine the account books etc., of the firm
(a) himself
68. A partner can examine the books etc., of the partnership firm
70. The rate of interest prescribed under section 13, where a partner, advances money
beyond the amount of capital, for the business of the partnership, is
71. Where a partner is entitled to interest on the capital subscribed, such interest is payable
72. Section 13(a) of the Indian Partnership Act, 1932 provides for
(b) payment of remuneration to a partner only when there is an agreement to that effect between
the partners
(c) non-payment of remuneration to a partner only when there is an agreement to that effect
between the parties
73. Under section 13(b) of the Indian Partnership Act, 1932 all the partners are entitled to
(a) share the profits and losses in the ratio of their capital contributions
(b) share the profits and losses equally irrespective of any agreement between them to the
contrary
(c) share the profits and losses equally in the absence of any agreement to the contrary between
them
(d) share the profits and losses in the ratio of their personal efforts input.
74. Where a change occurs in the constitution of a firm and no new agreement is made
(a) the ratio of profit sharing shall become equal for all the partners
(b) the ratio of profit sharing shall remain the same to the extent to which it is consistent with the
altered composition of the firm
(c) the ratio of profit sharing shall change in the ratio of capital contributions
(d) the ratio of profit sharing shall change in the ratio of personal efforts/labour input of the
partners.
75. As a general rule, by virtue of section 13 of the Indian Partnership Act, 1932
(b) partner is not entitled to interest on the| advance made over and above the share a. capital
76. As regards the capital contribution in the partnership business, the status of a partner
is that of
77. The status of a partner, making advances to the firm for its business, over and above
the capital subscribed, is that of
(a) the interest on capital ceases run whereas interest of advances keeping running upto the date
of payment
(b) the interest on capital and the interest on advances cease to run
(c) the interest on capital keeps running upto the date of payment whereas interest on advances
cease to run
(d) the interest on capital as well as on advances keeps running upto the date of payment.
(b) an emergency
82. Section 13(f) of the Indian Partnership Act, 1932 provides for
84. What constitutes the property of the firm has been dealt with in
(a) section 16
(b) section 15
(c) section 14
(a) exhaustive
(b) inclusive
(c) conclusive
86. Under section 14 of the Indian Partnership Act, 1932, the property thrown into the
common stock at the commencement of the business
(c) becomes the individual property of the partners in equal shares irrespective of their
contributions and profit sharing ratio
87. A property belonging to a partners an entering into a partnership and used for the
purposes of partnership
(c) becomes the property of the partner having highest share of capital contribution
(d) becomes the property of the partners in their profit sharing ratio.
88. All the benefits and liabilities arising out of a contract made on behalf of a partnership
do not
(a) belong to the partnership if the contract has been performed before the dissolution of the firm
(b) belong to the partnership if the contract has been performed before the retirement of the firm
(c) belong to the partnership if the contract has been performed after the dissolution of the firm
or retirement of a partner
90. When the property is purchased out of the partnership funds but in the name of an
individual partner, it
91. When the personal property of a partner is being used in the business of the firm, it
(a) is a question of fact to be determined with reference to the partner's intention whether it has
become the property of the firm
92. Under section 14 of the Indian Partnership Act, 1932, goodwill of the business is
(c) property of the partner having the highest share in the profits
(d) property of the partner having the lowest share in the profits.
93. Since the partnership property vests in all the partners and every partner has an
interest in the property of the partnership, during the subsistence of partnership
(b) a partner can deal with a portion of the property upto his share in the partnership,
as his own
(c) a partner can deal with a specific item of the partnership property as his own
(d) a partner cannot deal with any particular property or any portion of the property as his own.
95. If a partner chooses to use any assets of the partnership for his own purpose, it gives
rise to
96. Where a partner is authorised to recover dues of the partnership & spend the same for
the business of the partnership and if he does not deposit the money so collected in the
bank the partner is
98. The term 'goodwill' is a thing very to describe but very difficult to define, is stated by
(b) the property of the firm can be used by the partners for any of his/their personal use
(c) the property of the firm can be used by the partners for the personal use of all the partners
MCQ ON