Business Law

151. An agreement to pay money money's worth on the happening or non happening of a specified uncertain event is a

  1. Wagering agreement
  2. Contingent contract
  3. Quasi contract
  4. Uncertain agreement
Correct answer: (A)
Wagering agreement

152. A contingent contract dependent on the non happening of specified uncertain event within fixed time can be enforced if the event

  1. Does not happen within fixed time
  2. Becomes impossible before the expiry of fixed time
  3. Happens within the fixed time
  4. Both (a) and (b)
Correct answer: (D)
Both (a) and (b)

153. In commercial transactions, time is considered to be of the essence of contract, and if the party fails to perform the contract within specified time, the contract becomes

  1. Voidable at the option of the other party
  2. Void and cannot be enforced
  3. Illegal for non compliance of legal terms
  4. Enforceable in higher court only
Correct answer: (A)
Voidable at the option of the other party

154. Which of the following statements is correct?

  1. Ordinary damages are recoverable
  2. Special damage is recoverable only if the parties knew about them
  3. Remote or indirect damages are not recoverable
  4. All of these
Correct answer: (D)
All of these

155. A and B both believe that a particular kind of rice is being sold in the market@Rs.3000 per quintel and A sells rice of that kind to B @3000/quintel. But in fact, the market price was Rs.4000, the contract is

  1. Valid
  2. Void
  3. Voidable
  4. Illegal
Correct answer: (A)
Valid

156. A sells the goodwill of his business to B and agrees with him to refrain from carrying on a similar business within specified local limits. This contract is

  1. Valid
  2. Void
  3. Voidable
  4. Illegal
Correct answer: (A)
Valid

157. A void agreement is one which is

  1. Valid but not enforceable
  2. Enforceable at the portion of both parties
  3. Enforceable at the portion of one party
  4. Not enforceable in a Court of Law
Correct answer: (D)
Not enforceable in a Court of Law

158. A proposal when accepted becomes a:

  1. Promise
  2. Contract
  3. Offer
  4. Acceptance
Correct answer: (A)
Promise

159. Consideration in sample term means

  1. Anything in return
  2. Something in return
  3. Everything in return
  4. Nothing in return
Correct answer: (B)
Something in return

160. Which of the following statement is not true about minor's position in a form?

  1. He cannot become a partner in an existing firm
  2. He can become a partner in an existing firm
  3. He can be admitted only to the benefits of any existing firm
  4. He can become partner on becoming a major
Correct answer: (B)
He can become a partner in an existing firm
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