LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Select The Blank

Question An offer must create ________ relationship.

Correct Answer Legal

Your Answer Legal

True/False
Question Companies can be registered with undesirable names.

Correct Answer False

Your Answer False

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 When agents delegate their authority to another for a particular
period for a particular task, they appoint substituted agents.
Correct Answer True

Your Answer True

True/False
Question "I promise to pay Mr.John Rs.500/- seven days after my
marriage with Miss Lucy" is a promissory note.
Correct Answer False

Your Answer False

Multiple Choice Multiple Answer

Question A company has continuity of life. Its life is not affected by :-

Correct Answer Death , Lunacy , Insolvency

Your Answer Death , Lunacy

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 ,
Commission agent

True/False
Question An agreement enforceable by law is a contract.

Correct Answer True

Your Answer True

True/False
Question The provisions of sale of goods were previously included in the
Indian Contract Act, 1872.
Correct Answer True

Your Answer True

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

Select The Blank

Question Issued capital can be defined as the ________ of shares which
are offered to the public for subscription.
Correct Answer Nominal value

Your Answer Nominal value

Multiple Choice Multiple Answer

Question An agency by necessity may arise in following three
circumstances :-
Correct Answer When an agent exceeds his authority in an emergency , When a
person is entrusted with another's property , In case of husband
and wife
Your Answer When an agent exceeds his authority in an emergency , When a
person is entrusted with another's property , In case of husband
and wife

Select The Blank

Question The presumptions laid by Sec.118 & 119 of Negotiable
Instrument Act do not arise where negotiable instrument is
obtained by ________.
 Correct Answer Fraud/Deceit

Your Answer Fraud/Deceit

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

Correct Answer True

Your Answer True

True/False
Question A trader is a middleman bringing the buyer and seller together
and receiving any commission for services rendered by him.
Correct Answer False

Your Answer False

Multiple Choice Single Answer

Question In contract of sale :-

Correct Answer Ownership in the property is passed from the seller to the buyer.

Your Answer Ownership in the property is passed from the seller to the buyer.

Match The Following

Question Correct Answer Your Answer

Minor Partner Admitted for profits only Admitted for profits only

Dissolution of a Death or Insanity of the Death or Insanity of the

Partnership partners partners
Firm Partners Partners

Partner Agents of the firm Agents of the firm

Partnership Can be formed at Will Can be formed at Will

Multiple Choice Single Answer

Question A contract with a pardanashin woman can be presumed to have
been induced by :-
Correct Answer Undue influence

Your Answer Undue influence

Multiple Choice Multiple Answer

Question Presumptions do not arise where an instrument is obtained by :-
Correct Answer Fraud , Offence , Illegal consideration

Your Answer Fraud , Offence , Illegal consideration

Multiple Choice Multiple Answer

Question A person is deemed to be dominated the will of another if :-

Correct Answer A real or apparent authority over them , He stands in a fiduciary

relation to other
Your Answer Some authority is held over the other party , A real or apparent
authority over them

Multiple Choice Multiple Answer

Question Following agreements are opposed to public policy :-

Correct Answer Agreement to commit crime , Agreements interfering with an

administration of justice
Your Answer Agreement to plead bar of limitations , Agreement to commit
crime , Agreements interfering with an administration of justice

Multiple Choice Multiple Answer

Question In India, some of Negotiable Instruments by usage or custom of
trade are :-
Correct Answer Government promissory notes , Bankers drafts , Pay off orders

Your Answer Bankers drafts , Pay off orders , Bills of exchange

True/False
Question In a promissory note, the promise to pay can be indefinite.

Correct Answer False

Your Answer False

Multiple Choice Single Answer

Question Under a contract of sale, goods have to be exchanged for :-

Correct Answer Money

Your Answer Money

Multiple Choice Multiple Answer

Question Jurisdictions of the National Commission are :-

Correct Answer Monetary , Appellate , Supervisory and Revisional

Your Answer Monetary , Supervisory and Revisional

Multiple Choice Single Answer
Question A finder of goods is subject to the responsibility as a :-

Correct Answer Bailee

Your Answer Agent

True/False
Question Registration is compulsory for all the companies.

Correct Answer True

Your Answer False

Select The Blank

Question Partnership is based on ________.

Correct Answer Faith

Your Answer Faith

Multiple Choice Multiple Answer

Question Following are the agencies of a three tier system of consumer
disputes redressal agencies :-
Correct Answer State commission , National commission , District Forum

Your Answer State commission , National commission , District Forum

Select The Blank

Question The act done by the agent with the permission and on behalf of
the principal is ________ on the principal.
Correct Answer Binding

Your Answer Binding

Multiple Choice Multiple Answer

Question In special agency :-

Correct Answer Agency lasts for a specific period , Agency lasts for a particular
type of job or work , Agents has limited authority
Your Answer Agency lasts for a specific period , Agency lasts for a particular
type of job or work , Agents has limited authority

Match The Following

Question Correct Answer Your Answer

Presentation of Negotiable For payment Dishonour of cheque

Instrument
When an endorser signs Endorsement in full Endorsement in full
Default in payment of Dishonour of cheque Dishonour of cheque
amount of cheque
Notice of dishonour of Mandatory provision Mandatory provision
cheque

Select The Blank

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

Your Answer Undue

Select The Blank

Question Spurious goods means goods which are ________.

Correct Answer Fake

Your Answer Fake

Multiple Choice Single Answer

Question If no date for dissolution for partnership at will is mentioned in
notice, the firm is dissolved as from the date of the :-
Correct Answer Communication of notice

Your Answer Communication of notice

Multiple Choice Single Answer

Question Acceptance should be made in :-

Correct Answer The manner prescribed by the promisor and if not prescribed, in
any reasonable manner
Your Answer Any manner irrespective of the fact that it was urged by a definite
mode

Multiple Choice Multiple Answer

Question The very important stages in the connection of formation of a
company are :-
Correct Answer Promotion , Registration , Floatation

Your Answer Promotion , Registration , Floatation

Select The Blank

Question In a ________ contract, the future event is collateral to the
contract.
Correct Answer Contingent

Your Answer Contingent

Multiple Choice Single Answer
Question Goods identified at the time of contract of sale are known as :-

Correct Answer Ascertained goods

Your Answer Ascertained goods

Select The Blank

Question An agent can be held responsible for damages arising from his
misconduct in the business of agency or ________.
Correct Answer Negligence

Your Answer Negligence

Multiple Choice Single Answer

Question The partnership deed is required to be drafted very carefully and
to be signed by :-
Correct Answer All the partners

Your Answer All the partners

Multiple Choice Single Answer

Question The amended monetary jurisdiction of the state commission has
been increased from :-
Correct Answer Five lakhs to rupees one crore (check once)

Your Answer Five lakhs to rupees one crore (check once)

Multiple Choice Single Answer

Question Notice of the situations of the registered office of the company is
required to be given to the registrar of the companies within :-
Correct Answer Thirty days

Your Answer Sixty days

True/False
Question A partnership is a form of business organisation in which three or
more persons upto a maximum of thirty, joined together to
undertake some form of business activity.
Correct Answer False

Your Answer False

Select The Blank

Question In ________ contract, all the parties perform their promise.

Correct Answer An executed

Your Answer An executed

Multiple Choice Single Answer

Question The sum payable in Bill of exchange must be :-

Correct Answer Certain

Your Answer Certain

Multiple Choice Single Answer

Question A contract in which a consent is caused by undue influence, is :-

Correct Answer Voidable at the option of the consenting party

Your Answer Illegal