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COMMON PROFICIENCY TEST
LAW2241 ( Mercantile Law )
1) An agreement made without consideration is valid under section 25 of the Indian Contract Act, 1872 if 
o
The agreement is expressed in writing
o
The agreement is made on account of natural love and affection of the parties to the agreement stand ina near relation to each other.
o
The document is registered under the law for the time being in force for registration of such document.
o
All of the above
2) As per Section 11 of the Indian Contract Act, 1872 every person is competent to contract provided he:
o
is of the age of majority according to law to which he is subject.
o
is of sound mind
o
is not disqualified from contracting by any law to which he is subject.
o
All of the above
3) A person employed to do any act for another or to represent and another in dealings with the thirdparties is:
o
Principal
o
Agent
o
Servant
o
Bailee
4) When the consent of a party is not free, the contract is
o
Void
o
Voidable
o
Valid
o
Illegal
5) Moral pressure is involved in the case of 
o
Coercion
o
Undue Influence
o
Misrepresentation
o
Fraud
6) A agrees to pay Rs. 1000 to B if it rains, And B promises to pay a like amount to A, if it does not rain,this agreement is called
o
Quasi Contract
o
Contingent Contract
o
Wagering agreement
o
Voidable contract
7) When offer is made to a definite person, it is known as
o
General Offer 
o
Cross Offer 
o
Counter Offer 
o
Special Offer 
8) An agreement to pay money's worth on the happening or non-happening of a specified uncertain event,is a
o
Wagering agreement
o
Contingent contract
o
Quasi contract
o
Uncertain agreement
9) A contingent contract dependent on the happening of specified uncertain event within fixed time can beenforced if the event
o
Does not happen within fixed time
 
o
Becomes impossible before the expiry of fixed time
o
Happened within the fixed time
o
Both (a) and (b)
10) Essentials of Contract of Sale are
o
At least 2 parties
o
Subject matter must be goods
o
 None of the above
o
Both (a) and (b)
11) The heir of the deceased partner
o
Has a right to become a partner in the firm of the deceased partner.
o
Does not have a right to become a partner in the firm of the deceased partner 
o
Can becomes a partner in the firm of the deceased partner only if the surviving partners give their consent in this regard
o
Both (b) and (c)
12) Valid contract:
o
In case of this collateral agreement are void.
o
 Not enforceable in a court of law
o
An agreement enforceable by law at the option of one or more of the parties thereon but not at theoption of the other or others
o
Enforceable at the option of the parties.
13) A person to whom money has been paid, or anything delivered under coercion
o
Becomes the owner of such money or those goods
o
Is allowed to sell the goods and retain the money realized from such sale
o
Has no obligation to return the money, he may do so only a good gesture.
o
Must repay the money or return those goods.
14) Following conditions are implied in a Contract of Sale of Goods unless the circumstances of thecontract show a different intention:
o
Condition as to title
o
Sale by description:
o
Sale by sample
o
All of the above
15) A minor may be :
o
A partner of a firm
o
Representative of the firm
o
Entitled to carryon the business of the firm
o
Admitted to the benefits of the partnership
16) A partnership firm is compulsorily dissolved where
o
All partner have becomes insolvent
o
Firm's business has become unlawful
o
The fixed term has expired
o
In cases (a) and (b) only.
17) A partnership may be registered with
o
Registrar of companies
o
Registrar of partners
o
Registrar of firms
o
District court
18) Dissolution by agreement is:
o
Dissolution by the adjudication of all the partner or of all the partner but one as insolvent
o
Dissolution as a result of any agreement between all the partners
 
o
Dissolution by the business of the firm becoming unlawful
o
All of the above
19) Types of partner includes
o
Active partner 
o
Sleeping partner 
o
 Nominal partner 
o
All of the above
20) There can be a stranger to a consideration but a stranger to a contract signifies that a considerationmay move from _______ 
o
Promisee or any other person
o
Promisee
o
Promisor 
o
An independent person
21) Coercion involves _______ 
o
Physical force
o
Mental pressure
o
Moral pressure
o
Threat
22) _______ does not exist
o
Liability for special damages
o
Liability for exemplary damages
o
Liability for nominal damages
o
Liability for disciplinary damages
23) Recission means _______ 
o
Substituting a new contract for the old one
o
Cancellation of the old contract
o
Modifying or altering the terms of contract so that it has the effect of substituting a new contract for theold one
o
Dispensing away the performance of the promise made by the other party
24) A _______ agreement is one, which is enforceable at the option of one party
o
Voidable
o
void
o
valid
o
illegal
25) The position of stranger to a contract and that of stranger to consideration is _______ 
o
Partially different
o
Partially same
o
Entirely different
o
Same
26) Agreement to share profits _______ 
o
Implies an agreement to share losses
o
Does not necessarily mean an agreement to share losses
o
Must be coupled with an agreement to share losses
o
Is same as agreement to share losses
27) A person who is mentally derange due to same mental strain or other personal experience and suffersfrom intermittent intervals of sanity and insanity is _______ 
o
Idiot person
o
Lunatic person
o
Intoxicated person
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EPA Singh

Bai, I want to download, this and make a practise, as i'm taking the exams in Dec -09. I'm not able to take a print also, Can you please allow to download

reply11 / 17 / 2009
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