Business Law (MCQs) Set-1

Q.1. A wrong representation when made without any intention to deceive the other party amounts to

1. Coercion
2. Undue influence
3. Misrepresentation
4. Fraud

Answer: (C) Misrepresentation

Q.2. Which of the following persons can perform the contract?

1. Promisor alone
2. Legal representatives of the Promisor
3. Agent of the Promisor
4. All of these

Answer: (D) All of these

Q.3. A contingent contract is;

1. Void
2. Voidable
3. Valid
4. Illegal

Answer: (C) Valid

Q.4. A voidable contract is one which;

1. Can be enforced at the option of the aggrieved party
2. Can be enforced at the option of the both parties
3. Cannot be enforced in a court of laws
4. Court prohibits

Answer: (A) Can be enforced at the option of the aggrieved party

Q.5. A agrees to sell his car worth Rs. I00000 lakh to B for rs.20000 and A's consent was obtained by coercion. Here, the agreement is;

1. Void
2. Valid
3. Voidable
4. Unlawful

Answer: (C) Voidable

Q.6. When one party is in a position to dominate the will of another and uses his superior position to obtain the consent of a weaker party, the consent is said to be obtained by;

1. Coercion
2. Undue influence
3. Fraud
4. Misrepresentation

Answer: (B) Undue influence

Q.7. As per Section 20, the contract is void, on account of bilateral mistake of fact. But as per Section 22, if there is mistake of only one party, then the contract is;

1. Void
2. Valid
3. Voidable
4. Illegal

Answer: (B) Valid

Q.8. A agrees to pay Rs.50000 to B if he kills C. the agreement is

1. Void
2. Valid
3. Voidable
4. Contingent

Answer: (A) Void

Q.9. A agrees to sell his car to B at a price which B may be able to pay. This agreement is

1. Void
2. Valid
3. Voidable
4. Contingent

Answer: (A) Void

Q.10. A agrees to pay Rs.1000 to B if a certain ship returns within a year. However, the ship sinks within the year. In this case, the contract becomes

1. Valid
2. Void
3. Voidable
4. Illegal

Answer: (B) Void