Business Law Quiz 3 & 4 Module

1. The liability of a surety is primary and independent True/false

2. Placing of ornaments in a bank locker is not a contract of bailment - True/false 3. A railway receipt is not a document of title True/false 4. Actionable claim is a subject matter of contract of sale True/false 5. A contract of insurance is wagering contract. True/false 6. A principal is liable for the fraud of the agent. True/false 7. In agreement to sell the title of the goods passes to the buyer immediately. True/false 8. Money is a negotiable instrument True/false 9. Consideration in contract of sale can be paid partly in money and partly in goods True/false 10. Where the goods are in perishable state the unpaid seller cannot resell the goods without giving notice True/False 11. Delivery of ascertained goods is necessary in the contract of sale True/false 12. A seller need not disclose the faults in the goods to the buyer before sale. True/false

13. ________is an instrument in writing containing an unconditional undertaking signed by the maker to pay a certain sum of money only to, or to the order of a certain person, or to the bearer 14. __ is a person entitled in his own name to the possession of a promissory note, bill of exchange or cheque and to receive or recover the amount due thereon from the parties. 15. When the amount is stated differently in words and figures, the amount stated in _________is to be taken. 16. A cheque is crossed_________when it bears across its face an addition of the name of a banker, either with or without the words "not negotiable". 17. What is the process by which a negotiable instrument is transferred to any person so as to constitute such person the holder called? 18. _______is generally a person, who for consideration became possessor of a promissory note, bill of exchange or cheque. 19. Who are the parties in a bill of exchange? 20. ________is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of a certain person or to the bearer.