IMTC631 - Legal & Regulatory Environment of Business

 

 1. `Misrepresentation', means and includes 

• The positive assertion, in a manner not warranted by the information of the person making it, of that which is not true, though he believes it to be true.

• Any breach of duty which, without intent to deceive, gains an advantage of the person committing it, or any one claiming under him, by misleading another to his prejudice, or to the prejudice of any one claiming under him.

• Causing, however innocently, a party to an agreement to make a mistake as to the substance of the thing which is the subject of the agreement 

• All of the above

2. A contract stands discharged by 

 

• Performance

• Substituted agreement 

• Impossibility of performance 

• All of the above

3. The expression 'Nemo dat quod non-habet' means

• Let the buyer become 

• only the owner of the goods can transfer a title thereto 

• one cannot give what one does not have 

• Condition as to little may be negative by express terms

4. Undue influence cannot be presumed between 

• Guardian and ward 

• Mother and daughter

• Both (a) and (b) 

• Doctor and patient.

5. The right not to perform a contractual obligation is known as 

• Injunction 

• Rescission

• Specific performance 

• Quantum meruit

6. Which of the following is not an essential element of a valid contract? 

• Offer and acceptance

• Free consent and consideration

• Lawful object

• Performance

7. Which of the following is irrelevant in case of a contract of personal nature? 

• Damages 

• Rescission 

• Injunction 

• Specific performance

8. Which of the following clauses is not mandatory as regards consideration? 

• Consideration must move at the desire of the promisor 

• Consideration may be past, present, or future

• Consideration must be legal 

• Consideration must be adequate

9. A contract of guarantee is invalid 

• When the guarantee has been obtained by misrepresentation 

• When guarantee has been obtained by concealment of material facts 

• When co-surety (if any) fails to join the surety

• In all the above cases

10. Which among the following persons are not competent to contract? 

• Minors 

• Persons of an unsound mind 

• Persons disqualified from contracting 

• All the above.

11. A finder of lost goods has a right to sell the goods found by him 

• Where the owner cannot, with reasonable diligence, be found and if found, refuses to pay the lawful charges of finder of goods 

• The goods are in danger of perishing or of losing the greater part of their value 

• When the lawful charges of the finder for preservation and finding out the owner amounts to two-thirds of the value of the goods 

• In all the above cases

12. The exceptions arising under judicial interpretation of Section 27 do not include 

• Trade combinations 

• Exclusive dealing agreements 

• Sale of goodwill 

• Service agreements

13. Which of the following transactions does not fall in the ambit of bailment? 

• Delivering goods for carriage 

• Delivering goods for repair with or without remuneration 

• Placing of ornaments in a bank locker 

• Delivering goods to a creditor to serve as security of loan

14. which is allowed to remain open for acceptance over a period of time is known as 

• General offer 

• Specific offer 

• Standing offer 

• Counter-offer

15. The term nuchtm pactum implies: 

• Something of value 

• Bare promise 

• Inadequacy of consideration 

• Stranger to consideration

16. Who among the following can demand performance? 

• Promisee 

• Legal representative  

• Joint promisee 

• All of the above

17. Which of the following rule does not apply to a valid offer

• The offer must be certain, definite, and not vague 

• The offer must be communicated 

• The offer must be unconditional

18. A minor was facing a criminal prosecution for smuggling drugs. He borrowed '5000 to hire an advocate to defend him in the court of law. What is the remedy available to the creditor if the minor does not return the money on his own? 

• The creditor cannot recover the amount from the minor since a contract with a minor is void ab initio. 

• The amount of loan can be recovered from minor's property since it is a loan for necessaries.

• The creditor can recover his amount of loan from the minor on his (minor's) attaining the age of majority. 

• The creditor can recover his amount from the parent or guardian of the minor.

19. Dealings with commercial sex workers have already been regarded as 

• Immoral 

• Opposed to public policy

• Forbidden by law 

• Fraudulent

 

20. The relationship of principal and agent may be created by 

• Express or implied offer

• Ratification 

• Operation 

• Any of the above

21. An agreement that provides for release or forfeiture of rights if no suit is brought within the time stipulated in the agreement is 

• Valid 

• Void 

• Void and illegal 

• Enforceable

22. A continuing guarantee may be revoked 

• By a notice of revocation by the surety 

• By death of the surety

• In the same manner in which the surety is discharged

• By any of the above-mentioned way

23. The doctrine of 'Constructive consideration' implies: 

• As long as there is a consideration for a promise, it is immaterial who has finished it.

• Consideration must be real and not illusory.

• Consideration must be legal. 

• Consideration must move at the desire of the promisor.

24. An act or a promise is forbidden by law when

• It is punishable under the criminal law of the country or is prohibited by special legislation derived from the legislature 

• It defeats the provision of any law

• It is fraudulent

• It involves or implies injury to person or property of another.

25. The term 'wholesomeness' in relation to sale of goods means

• that the goods are fit for human consumption

• that the goods are of merchantable quality

• that the goods are suitable for a particular purpose

• that the goods are of merchantable quality as well as suitable for a particular purpose

26. Which of the following is not a basic requirement to form a valid contract of sale?

• Two parties

• Transfer of property in goods 

• Consideration in price

• Delivery of goods

27. Which of the following is not a basic requirement to form a valid contract of sale?

• Two parties

• Transfer of property in goods 

• Consideration in price

• Delivery of goods

28. Agency is irrevocable

• Where the agent has an interest in the property that forms the subject matter of the agency 

• Where the agent has partly exercised his authority

• Where the agent has incurred a personal liability

• In all the above cases

29. The party whose consent was caused by misrepresentation loses the right to rescind the contract

• If he could discover the truth with ordinary diligence 

• If his consent is not induced by misrepresentation

• In both (a) and (b) cases

• In none of the above cases

30. The crucial test of agency is that

• A person possessing capacity to contract may lawfully do by himself or he may get it done by another 

• He who acts through an agent is himself acting

• Acts of the agent bind the principal

• The principal is not responsible if the agent exceeds his authority

31. Which of the following is not a void agreement?

• Agreement in restraint of marriage 

• Agreement in restraint of trade

• Agreement in restraint of legal proceeding 

• Service rendered without mandate

 

Set-2

 

1. The right not to perform a contractual obligation is known as

• Injunction

• Rescission

• Specific performance 

• Quantum meruit

2. Which of the following is not a basic requirement to form a valid contract of sale?

• Two parties

• Transfer of property in goods 

• Consideration in price

• Delivery of goods

3. A substituted aaeement embraces

• Novation and rescission only 

• Alteration and remission only 

• Waiver alone

• All of the above

4. An offer which is allowed to remain open for acceptance over a period of time is known as

• General offer 

• Specific offer 

• Standing offer 

• Counter-offer

5. Implied agency includes

• Agency by estoppel 

• Agency by holding out 

• Agency by necessity 

• All of the above

6. Consideration and object of an agreement are unlawful if

• It is forbidden by law

• It defeats the provisions of any law or it is fraudulent

• It involves or implies injury to the person or property of another or the court regards it as immoral or opposed to public policy

• In all the above cases

7. Which is the odd    one out?

• Specific goods 

• Future goods 

• Ascertained    goods 

• Unascertained     goods

8. A minor can be

• A promisor 

• A promisee

• Both (a) or (b)

• None of the above

9. A void contract is

• Not enforceable at all

• Enforceable at the option of either party

• Enforceable at the option of the aggrieved party only

• Enforceable at the option of the party who is not aggrieved

10. In which of the following cases the rule 'no consideration no contract' does not apply?

• Agreements in writing 

• Promise to compensate 

• Creation of an agency 

• In all of the above cases

11. Which of the following is not a void agreement?

• Agreement in restraint of marriage 

• Agreement in restraint of trade

• Agreement in restraint of legal proceeding 

• Service rendered without mandate

12. Against the principle debtor the surety has,

• Right of suborganization

• Right of indemnity

• Both(a) and (b)

• None 

13. An illegal agreement taints and renders all the incidental transactions

• Void

• Illegal

• Void ab initio 

• Enforceable

14. Which of the following is one of the exceptions to wagering agreements

• Lottery

• Crossword puzzle

• Athletic competitions

• Competitive event where prize depends upon chance

15. Dealings with commercial sex workers have already been regarded as

• Immoral

• Opposed to public policy 

• Forbidden by law

• Fraudulent

 

16. To make an effective acceptance, which of the following requirements must be fulfilled?

• Acceptance must be absolute and unqualified

• Acceptance must be communicated to the offeror 

• Acceptance must be in the prescribed manner

• All of the above

17. Which of the following is mistaken in respect of a contract of sale?

• There may be immediate delivery of goods

• The delivery of goods or payment of price or both may be made at some future date 

• There may be immediate delivery of goods but price to be paid at some future date 

• None of the above

18. `Misrepresentation', means and includes

• The positive assertion, in a manner not warranted by the information of the person making it, of that which is not true, though 

• U he believes it to be true.

• Any breach of duty which, without intent to deceive, gains an advantage of the person committing it, or any one claiming under him, by misleading another to his prejudice, or to the prejudice of any one claiming under him.

• Causing, however innocently, a party to an agreement to make a mistake as to the substance of the thing which is the subject.

19. Identical offers made by two parties to each other, in ignorance of each other's offer are known as

• Counter offer

• Cross-offers

• Standing offers

• None of the above

20. Undue influence cannot be presumed between

• Guardian and ward 

• Mother and daughter 

• Both (a) and (b)

• Doctor and patient

21. Identical offers made by two parties to each other, in ignorance of each other's offer are known as?

• Counter offer 

• Cross offer

• Standing offer

• None of the above

22. Where a party restrained from beach of a negative term of a contract, this refers to

• Resuccion

• Injection

• Quantum meriuts

• Damage

23. Which of the following does not fall under the "head of public policy"?

• Training with enemy

• Illegal cohabitation

• Marriage breakage agreements

• Trafficking in public office

24. The doctrine of “Constructive consideration" implies 

• As long as there is a consideration for a promise 

• Consideration must be real and not illusory

• Consideration must be legal 

• Consideration as must move desired to 

25.  In which of the following cases the agreement is void ab initio?

• Coercion 

• Fraud

• Bilateral Mistake

• Misrepresentation

26. A valid contract becomes a void contract due to

• Supervening impossibility

• Change of low 

• Repudiation of a voidable contract 

• All

27. Which of the following is not essential element of valid contract?

• Offer and acceptance

• Free consent and consideration

• Lawful object 

• Performance

28. The doctrine of caveat emptor does not employee.

• Where the sellers make a false or misrepresentation or fraud

• Where the seller conceals a defect in the good.

• In case of implied condition and warranties

• In the above.

 

29. The expression 'Nem det quad non habet' means

• Let the buyer beware

• Only the owner of the goods can transfer title thereto

• One cannot give what one does not have

• Condition as to little may be negative by express time

30. A contract stands is discharged by:

• Performance

• Substituted agreement 

• Impossibly of performance

• All of the above

31. The term "Wholesomeness" in relation to sale of goods mean.

• that the good fit for human consumption.

• That are good are of merchantable quality

• That are the goods are suitable for particular purpose

• That the good are merchantable quality as well as suitable for a particular purpose