MIDTERM EXAMINATION

Spring 2010
MGT611- Business & a!"r a# $Sessi"n - 2%
Re& N"' 1()*)*)
Time' 60 min
Mar+s' ((
,"r Tea-.er/s 0se On12
3 N"4 1 2 * ( 5 6 6 ) T"7a1
Mar+s
3 N"4 8 10 11 12 1* 1( 15 16
Mar+s
3 N"4 16 1) 18 20 21 22 2* 2(
Mar+s
3 N"4 25 26 26 2) 28 *0 *1 *2
Mar+s

3ues7i"n N"' 1 $ Mar+s' 1 % - 91ease -.""se "ne

Which of the following is NOT true about Law?
Law is to maintain rights
Law upholds justice
Law is used to redress wrongs
Law does not ensures public order

3ues7i"n N"' 2 $ Mar+s' 1 % - 91ease -.""se "ne

Which of the following is termed as science of civil law?
Jurisprudence
Court
usiness law
Labour law

3ues7i"n N"' * $ Mar+s' 1 % - 91ease -.""se "ne

!rinciples of law as the" currentl" e#ist are studied under which of the following?
$nal"tical jurisprudence
%istorical jurisprudence
&thical jurisprudence
oth anal"tical and historical jurisprudence

3ues7i"n N"' ( $ Mar+s' 1 % - 91ease -.""se "ne

Which of the following deals with the law that should be in an ideal state?
Commercial jurisprudence
$nal"tical jurisprudence
%istorical jurisprudence
&thical jurisprudence

3ues7i"n N"' 5 $ Mar+s' 1 % - 91ease -.""se "ne

" definition' a contract is(
$n agreement
$ legal obligation
oth an agreement and a legal obligation
Neither an agreement nor a legal obligation

3ues7i"n N"' 6 $ Mar+s' 1 % - 91ease -.""se "ne

$ccording to section )*e+ of contract act' ever" promise and ever" set of promises'
forming the consideration for each other is(
$ contract
$n agreement
$n obligation
$ proposal

3ues7i"n N"' 6 $ Mar+s' 1 % - 91ease -.""se "ne

When a person signifies to another his willingness to do or to abstain from doing
an"thing with a view to obtaining the assent of that other to such act or abstinence he is'
according to section )*a+ of Contract $ct' said to ,,,,,,,,,,-
.a/e a proposal
.a/e an obligation
0ormulate a contract
0ormulate an agreement

3ues7i"n N"' ) $ Mar+s' 1 % - 91ease -.""se "ne

.r- $sad agrees to construct .r- asheer1s house for 2s- 34 lac- What is the
consideration for .r- $sad?
Construction of the house b" .r- $sad
Construction of the house b" .r- asheer
!romise to pa" 2s- 34 lac b" .r- $sad
!romise to pa" 2s- 34 lac b" .r- asheer

3ues7i"n N"' 8 $ Mar+s' 1 % - 91ease -.""se "ne

Consent caused b" a 0raud ma/es a contract(
5oid
5oidable
6nenforceable
7nvalid

3ues7i"n N"' 10 $ Mar+s' 1 % - 91ease -.""se "ne

$ police officer bought a propert" worth one lac rupees for 2s-84444 from an accused
under his custod"- The contract was done b"(
6ndue influence
0raud
Coercion
Consent

3ues7i"n N"' 11 $ Mar+s' 1 % - 91ease -.""se "ne

7n 6ndue 7nfluence' the consent is obtained b"(
Threat
0raud
9omination
!h"sical force

3ues7i"n N"' 12 $ Mar+s' 1 % - 91ease -.""se "ne

The dominating part"' in case of 6ndue 7nfluence' can disprove the presumption b"
arguing all' &:C&!T(
The facts were full" disclosed
The consideration was enough
The dominated part" was in a position to receive independent advice
The dominated part" did not gave his free consent

3ues7i"n N"' 1* $ Mar+s' 1 % - 91ease -.""se "ne

When a person does an act which is against public dut"' the agreement is ,,,,,,,,-
5alid
5oid
5oidable
7llegal

3ues7i"n N"' 1( $ Mar+s' 1 % - 91ease -.""se "ne

$ll of the following are the agreements that are e#pressl" declared to be void b" the law'
&:C&!T(
$greement in restraint of marriage
$greements in restraint of trade
$greement made with consideration
$greement b" wa" of wager

3ues7i"n N"' 15 $ Mar+s' 1 % - 91ease -.""se "ne

$n agreement in which one part" agrees to close his business against the promise of the
other part" to pa" some amount is ,,,,,,,,,,-
5alid
5oid
5oidable
6nlawful

3ues7i"n N"' 16 $ Mar+s' 1 % - 91ease -.""se "ne

&ach part" to a contract is both promisor and promisee in case of ,,,,,,,,,,,-
!resent consideration
2eciprocal promises
5alid contract
!art consideration

3ues7i"n N"' 16 $ Mar+s' 1 % - 91ease -.""se "ne

When a contract subse;uentl" becomes difficult to perform due to uncontemplated
events' it ,,,,,,,,,,,,,-
ecomes void
ecomes voidable
7s discharged
7s not discharged

3ues7i"n N"' 1) $ Mar+s' 1 % - 91ease -.""se "ne

7n which of the following cases' the court ma" refuse to grant rescission?
When plaintiff has not e#pressl" ratified the contract
When parties can not be restored to their original position due to changed
circumstances
When a third part" has ac;uired right in good faith and value
When onl" a part of contract is to be rescinded and such part can not be separated
from the rest of contract

3ues7i"n N"' 18 $ Mar+s' 1 % - 91ease -.""se "ne

$ccording to section 3<= of Contract $ct 3=>)' the deliver" of goods b" one part" to
another for some purpose upon a contract that these shall be returned when promise is
accomplished' is called ,,,,,,,-
!ledge
ailment
?uarantee
7ndemnit"

3ues7i"n N"' 20 $ Mar+s' 1 % - 91ease -.""se "ne

$ pledge can also be called as ,,,,,,,,,,-
ailment
?uarantee
7ndemnit"
!awn

3ues7i"n N"' 21 $ Mar+s' 1 % - 91ease -.""se "ne

$ person is appointed as ?eneral .anager of a firm- Which of the following is most
suitable title for him?
@pecial agent
6niversal agent
?eneral agent
CoAagent

3ues7i"n N"' 22 $ Mar+s' 1 % - 91ease -.""se "ne

.r- ' at re;uest of .r- $' sells goods which .r- $ had no right to sell- .r- does not
/now this and sends mone" to .r- $- $fterwards' .r- C' the true owner of the goods'
sued .r- and recovers the mone"- Which of the following is true?
.r- $ is liable to .r-
.r- is liable to .r- C
.r- $ is liable to .r- C
.r- $ is not liable to an"one

3ues7i"n N"' 2* $ Mar+s' 1 % - 91ease -.""se "ne

Which of the following is NOT a dut" of principal in contract of agenc"?
To indemnif" the lawful acts
To pa" remunerations
To render accounts
To indemnif" the acts done in good faith

3ues7i"n N"' 2( $ Mar+s' 1 % - 91ease -.""se "ne

What is the legal status of a decision about business timings' fi#ed b" a mar/et
association' that ever" shop will be closed b" 4=(44 !.?
5oidB as it is in restraint of trade
7llegalB as it is imposed on other part"
6nlawfulB as it is against the free consent of the other part"
5aildB as it is considered as a general business practice

3ues7i"n N"' 25 $ Mar+s' 1 % - 91ease -.""se "ne

Which of the following is true regarding a 0raud or .isrepresentation if it had not effect
the consent and made an" damages to a concerned part"?
7t ma/es the contract void-
7t ma/es the contract voidable-
7t renders the contract illegal-
None of the given options stand true-

3ues7i"n N"' 26 $ Mar+s' 1 % - 91ease -.""se "ne

The soundness of mind of a person is proved b"(
The capacit" of a perosn to recall his past incidents
The personCs age of majorit" iAe above 3= "ears
The judgment of court reagrding the soundness of mind
The capabilit" of understanding terms of contract D act rationall"

3ues7i"n N"' 26 $ Mar+s' 1 % - 91ease -.""se "ne

@amina promised to emplo" Naila for a salar" of 2s-E444 from @eptember ne#t- Which
t"pe of contract is it?
Contingent contract
5oid contract
&#ecuted contract
&#ecutor" contract

3ues7i"n N"' 2) $ Mar+s' 1 % - 91ease -.""se "ne

$shraf contracted ilal to bu" 3bale of cotton for 2s-=4444 at a specific date- $shraf also
made a contract with %assan to sell this cotton for 2s-3 lacB ilal was full" aware of this
contract with %assan' but on the specific date ilal failed to suppl" the cotton to $shraf
due to which $shraf had failed to fulfill the contract with %assan- 7n this case ilal is
liable for which /ind of damages?
Ordinar" damages
@pecial damages
&#emplar" damages
Li;uidated damages

3ues7i"n N"' 28 $ Mar+s' * %

$ chartered accountant is emplo"ed in a compan"- Can he be banned from private
practice during the service? Wh" or wh" not?

3ues7i"n N"' *0 $ Mar+s' * %

%ow does the breach of contract ta/e place? &#plain b" citing an e#ample-

3ues7i"n N"' *1 $ Mar+s' 5 %

Can a Contingent Contract about an uncertain future event be enforced? 7f "es' when can
it be enforcedB and if no' give reasons wh" it cannot be enforced-
3ues7i"n N"' *2 $ Mar+s' 5 %

9iscuss and e#plain the statement( F$genc" refers to the relationship which e#ists
between two persons' the !rincipal and the $gent-G