BUSINESS LAW MCQ UNIT 1.docx

unit 1

1. BUSINESS LAW UNIT - 1
1. What kind of "system" does England and Wales operate under?
a) A civil law system
b) A common law system
c) An equitable system
d) None of the options given are correct
2. Which of the following is the most accurate description of civil law?
a) Civil law is an aspect of public law
b) Civil law relates to controlling conduct or wrong-doing of which it disapproves
c) Civil law relates to the enforcement of particular forms of behaviour
d) Civil law is a form of private law and involves the relationships between individuals
3. Contract is defined as an agreement enforceable by law; vide Section … of the Indian Contract
Act. 1872
a) Section 2(e)
b) Section 2(f)
c) Section 2(h)
d) Section 2(i)
4. Which one of the following has the correct sequence?
a) Offer, acceptance, consideration, offer.
b) Offer, acceptance, consideration, contract
c) Contract, acceptance, consideration, offer.
d) Offer, consideration, acceptance, contract
5. Every agreement and promise enforceable by law is …………….
a) Offer
b) Contract

2. c) Acceptance
d) Consideration
6. Which is a content of Business Law?
a) Indian Contract Act, 1872
b) The Indian Partnership Act, 1932
c) The Sale of Goods Act, 1930
d) All of the above
7. Which steps improve adverse balance of payment?
a) Demonetization.
b) Over-valuation.
c) Devaluation.
d) None of these.
8. An agreement consists of reciprocal promises between at least
a) Four parties.
b) Six parties.
c) Three parties.
d) Two parties.
9. An agreement which is enforceable by law at the option of one party
a) Valid contract.
b) Void contract.
c) Voidable contract.
d) Illegal contract.

3. 10. Where there is an anticipatory breach of contract, when is the injured party first entitled to
sue?
a) Only after a reasonable time.
b) From the date the other party indicates their intention not to complete the contract.
c) From the date that the other party fails to actually perform their part of the contract.
d) If it is an anticipatory breach of contract the injured party has no right to sue for breach of
contract.
11. What is the aim of an award of damages for breach of contract?
a) To punish the party who has broken the contract.
b) To restore the innocent party to the position he was in before the contract was made.
c) To ensure the party who has broken the contract suffers a reasonable penalty.
d) To put the innocent party in the same financial position he would have been in if the
contract had been carried out.
12. Where a contract states the sum to be paid in the event of a breach of contract, the stated sum
is known as:
a) Unliquidated damages.
b) Liquidated damages.
c) Contract sum.
d) Stated damages.
13. Which of the following is a common law remedy?
a) Injunction.
b) Specific performance.
c) Damages.
d) Penalty.
14. Quasi Contract emerged from
a) Assumpsit
b) Indebitatus assumpsit

4. c) Non-feasance
d) Misfeasance
15. Which of the following is not a quasi contract?
a) Obligation of a person enjoying benefit of non gratuitous acts
b) Responsibility of finder of goods
c) Quantum merit
d) Novation
16. Quasi contractual obligations are based on the theory propounded by whom?
a) Lord Wright
b) Lord Sumner
c) Anson
d) Lord Mansfield
17. Promissory estoppel is sometimes spoken of as a substitute for:
a. Novation
b. Quasi contract
c. Consideration
d. Coercion
18. A person who supplies ‘Necessaries’ to a minor is entitled to be reimbursed from the
property of the minor on the basis of a
a. Valid Contract
b. Voidable Contract
c. Quasi Contract
d. Contingent Contract
19. Quasi contract is a
a) A contract

5. b) A legal obligation
c) An agreement
d) Contingent contract
20. Which of the following are true in the context of quasi contract?
a) There is no contract in existence
b) There is no offer and acceptance
c) There is no intention to create contract
d) All of the above