olved MCQs of Mercantile Law Past Papers since 2000.

Mercantile Law CE-2000 COMPULSORY QUESTION 8. Write only the correct answers in the Answer Book. Don¶t reproduce the questions. (1) Payment can be made on a Bill of Exchange to: (b) Only to a person specified therein (2) How a cheque is treated by a banker among the following when the balance at credit of drawer is found insufficient" (a) Be dishonored. (3) 'Accommodation Party¶ is a person who has signed a negotiable instrument: (b) Without receiving the value thereof. (4) Which of the following is correct: (a) A Provincial Government can constitute a Corporate Law Authority. (5) Which of the following is correct: (c) None of these. (6) Good will: (a) can be sold separately from other property of a firm.

(7.) When undue influence is used in a contract by one party against the other, the contract becomes: (b) voidable (8) Which of the following is correct: (b) cannot mix (9) Pledgor or Pawnor are: (a) same persons (10) The principal must ratify the contract: (a) as a whole (11) A dormant partner is one: (b) whose name does not appear in any way as partner.

(12) Caveat Emptor means: (c) The buyer should be aware of the suitability of goods for his purpose. (13) If the seller of immovable property has effected a fire insurance policy in respect of the property, the purchaser, of the property: (a) cannot claim any benefit of it. (14) The delivery of the insurance policy to the assured is:

(20) Whether a partner has got power to assign his partnership interest to any other person so as to make him a partner in the business? (b) No .(a) essential to make binding contract. Thereafter. (15) The grace period for every instrument payable at a specified period after date or after sight is: (c) 3 days. (16) Special Resolution is passed at a general meeting of a Public Company when not less than the following notice has been given: (b) 15 days notice (17) One of the special privileges of a Private Limited Company is that: (a) there is restriction on the right of members to transfer their shares.5 million rupees. (By the way this is not a privilege rather a disadvantage) (18) A company shall be eligible for registration as a Modaraba Company if its paid-up capital is not less than: (c) 2. A debits himself in the firm books and becomes a debtor to the firm for the amount of the purchase money. A buys land with partnership moneys for his sole benefit. (19) A and B are partners. The purchased property is: (b) not partnership property.

MERCANTILE LAW COMPULSORY QUESTION 8. the acceptance must be: (b) Unconditional (3) A voidable contract may be turned by the option of the party at a loss into: (b) A valid contract .COMPETITIVE EXAMINATION 2001. (1) A proposes. by a letter sent by post. The acceptance of the proposal is complete: (b) the moment the letter is received by B. Write only the correct answer in the Answer Book. (2) In order to convert a proposal into a promise. Do not reproduce the questions. to sell his house to B.

A is not a person of full age: (b) The appointment of A is valid (9) Statutory meeting of a Company is held: (a) Once in a life time of the Company (10) Publication of Prospectus is compulsory by: (a) A Private Company (11) Award is a decision given by: (b) An arbitrator (12) A lends some ornaments to B to be used in a marriage.(4) The maximum number of members in a private company is: (b) 50 (5) The maximum number of partners in a firm is: (c) None of these (6) The Companies Ordinance. The transaction is: (a) A bailment . 1984: (c) None of these (7) A Company is subsidiary of another Company: (a) If the other company holds more than 50% of its voting shares (8) P appoints A as his agent.

a bill of exchange may be: (b) Cannot be crossed ("Like" should not be used rather "unlike") (20) An executor consideration takes the form of: (a) A promise to be performed in future CE-2002 MERCANTILE LAW . accept. draw.(13) A partner may be expelled from a partnership by: (a) A majority of partners (14) Third Party Insurance is an Insurance Relating to: (c) None of these (15) A Bill of Exchange has: (b) Three parties (16) A minor: (a) Can make. 1984. there are: (a) Kinds of shares (19) Like a cheque. or indorse a negotiable instrument (17) A void as well as an illegal contract is: (b) Not familiar in effect (18) In the Companies Ordinance.

550. 500.but Sadaqat Hussain did not answer and nearby standing Kiramat Hussain accepted the offer. Do not reproduce the questions. 35. Two months after the conclusion of the contract Kala Khan refused to supply. if the alteration is done by special resolution (2) Gama offers to sell his care to Maja for Rs.COMPULSORY QUESTION 8.000/. In such case which of the following facts is correct? (c) Sodagar Khan can validly sue Kala Khan any time after he refused to supply onions. who currently owns 100 shares.000/-. Maja accepts the offer but states that he would buy it for Rs. The statement of Maja is: (b) A counter offer (3) Kala Khan agreed to supply onion to Sodagar Khan six months after the date of contract and Kala Khan agreed to pay for such supply.000/-. Can Brian. (4) Sharafat Hussain offererd to sell his tonga to Sadaqat Hussain for Rs. Write only the correct answer in the Answer Book. (1) Portage Ltd wishes to alter its memorandum to state that all of the company¶s shareholders must hold a minimum of 200 shares. be bound by this alteration? (a) Yes. Kiramat Hussain¶s answer to the offer is: (d) None of these (5) The appointment of a person of the minor age as an agent is: (b) Valid .

(6) Third party insurance is an insurance for: (a) Motor vehicles¶ accidents (Doubt) (7) A bill of exchange involves (b) Three parties (8) A bearer instrument may be negotiated by: (a) Mere delivery (9) An order instrument may be negotiated by: (b) Endorsement and delivery (10) A partnership business is unlawful if the number of partners in it is: (c) More than twenty (11) The relation between the partners of a firm is of: (c) Principal and Agent (12) An unregistered contract of partnership is: (a) Valid (Doubt. Registration of partnership is not compulsory but unregistered partnership suffers from some legal disabilities) (d) None of these (May be the 2nd choice) (13) A decision made by arbitrators is called (b) Award .

(c) None of these (20) If the delivery of goods under a contract of sale of goods is late. (18) The maximum age for a person who concludes a contract of sale of goods is: (d) None of these (19) It is essential for the validity of a contract of sale of goods that the price must be paid.(14) An empire in an arbitration reference is appointed when the number of arbitrators is: (b) Even (15) The minimum number of members in a Private Limited Company is: (b) Two (16) A Public Limited Company must have: (b) Seven directors (17) Which of the following rights a company cannot have: (b) Right to vote in the general elections of the state. In each of the following clauses of this question only one statement is correct. Write down in your answer book . CE-2003 MERCANTILE LAW COMPULSORY QUESTION 8. (a) The buyer is not bound to accept the delivery.

Which of the following is correct? (c) The table will become the property of A on 8-12-2003 when he will pay the price. (1) To what extent is a member of a company which is limited by guarantee personally liable for the company¶s debts? (c) His personally liability is limited to the amount set out in the memorandum on a winding up.only the correct statement of the following clauses. Banaras may revoke his acceptance at any time before: (a) Akram receives the letter of acceptance (5) A appoints B as his agent for buying him a house. Which of the following is correct? (d) a quasi-contract has been formed (3) On 30-11-2003 A offered to buy one of the 10 tables of the same specification present in B¶s shop for 500 rupees. B appoints C as his agent to arrange a house to be bought. (4) Akram sent a proposal to Banaras by post for the sale of his stall in the Sunday Market. It was agreed that the table would be delivered on 1-12-2003 while the price would be paid on 8-12-2003. C is liable to: . Do not write the whole clause. It was not clear which of those tables was attributed to the contract. B accepted the offer. Banaras accepted the offer by post. a house painter. misreads his work under order and paints Salman¶s house by accident while Salman sits inside watching. (2) Jamshed.

on credit. a minor. (b) On demand (10) A sold some food stuff to B. that contract would be described as: (a) Executed contract (12) An unregistered contract of sale of a computer is: (c) Unenforceable (13) A decision made by an arbitrator is: (b) Appealable . If B refuses to pay: (a) A can be paid out of the property of B (11) If a contract has been fully performed by both parties.(a) B only (6) Delivery of an insurance policy to the insured is: (b) Essential to form a binding contract between the prties (7) A partner may be expelled from a firm (a) By the majority of the partners (8) An order instrument may be negotiated by: (b) Endorsement and delivery (9) A cheque is always payable.

On 1 the required documents with 2003 they received the dated 1 February 2003. On 10 February Certificate of Incorporation company was incorporated on: (b) 1 February 2003 to form a company. Majid under threat of prosecuting Abid¶s son demanded that he should sell him his bungalow that is worth one billion rupees for one million only. The horse died one day before the race. aged 18 for whom a court has appointed a guardian.(14) Each party to an arbitration agreement can appoint: (a) Only one arbitrators (15) Shahid and Hamid wished December 2002 they filed all the Register. The contract is: . The contract is: (b) Void (20) Abid¶s son has forged Majid¶s name to a pronote.000 rupees if his (B¶s) horse wins the race. wants to make a contract. He can make a contract. (b) After attaining the age of Twenty-one years (19) A agrees to pay B 10. The (16) A public limited company must have: (b) Seven directors (17) A listed public limited company must have: (b) Seven directors (18) A. Abid had no way except to agree with the proposal.

(4) When a contract is substituted with a new contract. (6) The supplier of necessaries: (b) Can recover the price from the property of the minor. Write only the correct answer in the Answer Book. (7) A contract of which one party promises to save the other . (2) A person who has attained the age of 18 while under guardian: (b) Is not competent to contract (3) A person who is usually of unsound mind: (a) Can make a contract during the interval when he is of sound mind.(c) Voidable CE-2004 MERCANTILE LAW COMPULSORY QUESTION 8. (1) A person on attaining age of majority. (a) Can ratify an agreement made by him during his minority. Do not reproduce the questions. (b) The original contract need not be performed. (5) For a breach of contract: (b) The plaintiff can recover compensation if the subject matter of the contract was not easily available in the market.

from loss caused to him by the conduct of the promise himself or by the conduct of any other person. he may retain the goods: (c) None of these (10) A person who works under the control of another: (a) Is known as an agent (11) A promises to pay Rs. An order for certain goods is placed with D. B & C are partners in a business. (c) None of these (12) A bill of exchange is addressed to B. 1000 to B and takes a promissory note from him for that amount but pays only Rs. It is accepted by (i) B as a partner of a firm in the firm¶s name. D had no notice of the death of C: (b) A & B are jointly as well as severally liable . A contracts skin disease: (c) None of these (14) A. 500 on it. (b) IS called a contract of indemnity (8) Surety is a person: (a) Who promises to perform or discharge the liability of a third person in case of his default. Before the goods are delivered. (c) None of these (13) A buys nylon pant from a store and starts wearing it. (ii) it is accepted by B and C. C dies. (9) If the bailee¶s lawful charges are not paid.

(15) When a firm is put to an end as between all the parties: (b) It is dissolution (16) A partner may be expelled from a firm if there is agreement to that effect: (a) By majority of the partners (17) Differences between the arbitrators are: (b) Decided by an Umpire (18) A authorizes B to buy 50 sheep for him. Write the correct answer in the Answer Book. state filing requirements. and he dislikes formality. he values his privacy. paper work. Do not reproduce the question. 30000: (a) A can repudiate the whole transaction (19) A public limited company must have: (c) None of these (20) An agreement based on bilateral mistake: (a) Is void CE-2005 MERCANTILE LAW COMPULSORY QUESTION 8. (1) Talal is forming a business which he wants to control completely. B buys the whole lot of 44 sheep and 15 lambs for one sum of Rs. He knows nobody else with whom he wishes to work. and lawyers. What type of business .

(a) a set of governing rules adopting by the company (3) A partnership involves three essential elements. Shahid and Talal agree to form a computer business. Shahid and Talal agree to invest in the firm but to be liable only to that extent. Rashid agrees to manage the business and to assume full persona. including its organization and functions.organization should he prefer? (b) Sole Proprietorship (2) The Articles of Association of a company contain: (c) Information about the corporation. liability. These three have formed : (b) a limited liability partnership (d) None of these (5) The members of a limited partnership include: (a) general and limited partners (d) None of these (6) A bearer cheque may be negotiated by: (a) Mere delivery (7) The responsibility for overall management of a company belongs to: (c)the board of directors (d) None of these . Which of the following is not one of those elements? (b) Limited liability for the liabilities of the firm (4) Rashid.

000/-. supervision. 1000. One advantage of the limited liability partnership form is that it allows the limited partners to avoid personal liability for: (c) the obligations of the firm within the limit their contributions to the capital (d) None of these (13) A¶s son has forged B¶s name to a pronote. and removal of employees generally (11)A found a wallet full of money on a roadside and upon finding the address of the owner in the wallet he returned it to its owner.000/.(8) The best definition of a quorum is which of the following? (b) It is the number of members of a company that must be present before business may be transacted. The contract is: (b) Voidable (c) Void . A agrees with the proposal. When he came back he read the announcement of a reward for the return of such wallet in the newspaper: (b) The owner is not liable to pay him the reward (12) Muhsin is considering forms of business organization for his law firm. (9) When a partnership is found liable for a debt. which assets are first used to pay the debt? (c)Partnership assets (10)The board of directors does not have responsibility over which of the following areas? (d) None of these (b) The appointment. B under threat of prosecuting A¶s son demanded that A should sell him his house that is worth Rs.for 300.

simple definition of a contract is: (b) a legally enforceable agreement (15) Salman signs a written contract with Khalid giving him the right to cast his votes in the election for the directors of Hashiya Limited. Nothing further is said and the next day. Choose the correct statement: (c) Sadiq is not bound to pay as there is no contract (18) If you want to start a partnership what formal requirements do you have to meet? (b) You do not need to satisfy any formal requirements (19) The relation between the partners of a firm is of: (c) Principal and Agent (20) A bearer of instrument may be negotiated by: (a) Mere delivery .(14) The best. Danish demands Rs. B accepted the offer by post. 550. This agreement between Salman and Khalid is known as: (b) a proxy (16) A sent a proposal to B by post for the sale of his house. A may revoke his proposal at any time before : (b) B posts the letter of acceptance a) B receives the letter of proposal (17) Danish offers to sell to Sadiq a mobile phone for Rs. 450. whose shares Salman holds. 450 from Sadiq in exchange for the phone. Sadiq tells Danish that he will take the phone for Rs.

Which of the following is correct? (a) A and B had a unilateral contract. -17. (d) None of these (6) A and B enter into a contract in which A agrees to deliver milk to a restaurant.5000. A court will: (a) refuse to enforce the agreement.S. Is there a valid contract? (a) Probably not. (b) select the lowest quoted price for milk and insert it into the contract.´ This is an example of: (a) Revocation. no deal. (d) None of these. I changed my mind.00. the terms are not definite. he could hardly supply the food at 5: 00 pm. (c) B must accept the delivery. (b) Probably yes. 2006 MERCANTILE LAW (Compulsory Question) 8. (b) Rejection. A says. ³Sorry. (d) None of these (2) A tells B.00.FEDERAL PUBLIC SERVICE COMMISSION COMPETITIVE EXAMINATION FOR RECRUITMENT TO POSTS IN B. DO NOT WRITE THE WHOLE CLAUSE: (1) When an offer can only be accepted by the performance of the person to whom the offer is made. (c) A and B had an executed contract. However. (d) None of these (3) A offers to sell B his motorcycle at some time in the future. B accepts. ³If you stood first in the class. In each of the following clauses of this question only one statement is correct.5000. (b) He can not reject the delivery. (c) determine a reasonable price and insert it into the contract. (c) By counter offer. Before B even has a chance to accept. UNDER THE FEDERAL GOVERNMENT. Write down in your answer book only the correct statement of the following clauses. B stood first in class and A paid him Rs. (a) B can reject the delivery.00. (c) Counter Offer. (b) A and B had an executory contract.P. (b) By acceptance. (c) Definitely not because A failed to communicate the offer. is characteristic of: (a) bilateral contracts. (d) None of these (4) Which of the following is not an effective way to terminatean offer? (a) By rejection. They forget to include a price in the agreement. (c) implied contracts. (7) A agreed to supply food for Walima to B at 1: 00 pm. (d) None of these .5000. (b) unilateral contracts. (d) None of these (5) A offers to sell B his collection of rare books for Rs. I¶ll pay you Rs.

(c) Partnership assets. (b) To a bearer. (b) Who steals an instrument. (c) for a Public Limited company only. (b) To a bearer. (c) Who gets an instrument as a gift. (b) Private Limited Companies only. (d) None of these (16) A subsidiary company is the one: (a) which holds the majority shares of another company. (d) None of these (17) A is considering different forms of business organization for his business. (c) Sale. (d) None of these (9) When a partnership is found liable for a debt. Which of the following is not one of those elements? (a) An equal right in the management of the business. (d) None of these (12) An Order Instrument is the one which is payable to: (a) A named person. (d) None of these (14) A holder in due course is the one: (a) Who finds an instrument. which assets are first used to pay the debt? (a) Individual assets of the partners. For the purposes of owning property and being a party to litigation. (c) Admitting new partners. (b) which deals in the trading of shares of other companies. (c) To both (d) None of these (13) A bearer Instrument is the one which is payable to: (a) A named person. (b) Stoppage in transit. . (d) None of these (15) For the incorporation of a limited liability company filing of Memorandum of Association is essential: (a) for a public limited company only. (b) for a private limited company. (b) Personal property of the limited partners. (c) To both.(8) Which of the following actions an unpaid seller can not take against a buyer: (a) Lien. a public limited company and an unlimited company. (b) Limited liability for breach of contract. (c) A joint ownership of the business (d) None of these (11) Which of the following actions requires the unanimous consent of all partners before it may be undertaken? (a) Hiring a new employee (b) Purchasing new office equipment. (d) None of these (10) A partnership involves three essential elements. forms which are legal entities separate from their owners include: (a) Limited Partnership only. (c) in which the majority shares are held by another company.

200. (b) An unconditional promise to pay a reasonable sum for the services rendered. 3000 some time next month.17. (b) A writes B a letter in which he promises that if B will wash his car. he will pay him Rs. (d) None of these (3) Under the doctrine of quasi contract.´ A few days later A called B and told him that he couldn¶t give B the tickets. (c) An unconditional promise to pay Rs. (c) Judgment (d) None of these (19) An empire in an arbitration reference is appointed when the number of arbitrators is: (a) Odd. a plaintiff may recover in ³quantum merit´. 200 if B agrees to wash A¶s car in exchange for Rs. 200 which B does. (c) Voidable (d) None of these FEDERAL PUBLIC SERVICE COMMISSION COMPETITIVE EXAMINATION FOR RECRUITMENT TO POSTS IN BPS . 2007 MERCANTILE LAW (Compulsory Question) Q. (b) He would probably lose because the contract was not in writing. (b) Even. B said ³okay! I love to watch cricket matches. 2000 for the services rendered if the services are renders as soon as possible. (1) Which of the following is a bilateral contract? (a) A tells B that he will pay him Rs. (c) A and B both sign a piece of paper which says.(c) Both Private and Public Limited Companies (d) None of these (18) A decision made by arbitrators is called: (a) Sentence. ³A agrees to pay B Rs. (c) More than 10.´ (d) None of these (2) A called his friend B and offered to give him two tickets of a cricket match taking place next month. (d) None of these (5) A has a bill of exchange that does not indicate when it is to be paid as the language of the bill . (d) None of these (20) The appointment of a person of the minor age as an agent is: (a) Void. (b) Award. Do not reproduce the question. UNDER THE FEDERAL GOVERNMENT. 200 if B will wash his car which B does.8. Write only the correct answer in the Answer Book. a Latin phrase that means: (a) ³as much as he deserves´ (b) ³treble damages´ (c) ³only a token sum´ (d) None of these (4) Which of the following writings are negotiable instrument? (a) A promise to pay Rs. Assuming B sued A: (a) He would probably win as a contract was formed. (c) He would probably lose as the court would hold no contract was formed. (b) Valid.

´ (b) A negotiated two-party agreement upon which each party will act or refrain from acting. When is it payable to A? (a) In 30 days. (d) None of these (6) A writes a cheque on his Habib Bank account to pay for groceries at Utility Stores.´ (b) ³Pay to the order of my brother.only says ³Pay´. because postdated cheques are void (d) None of these (12) You write a cheque to pay for your haircut.´ (b) ³Payable on or before May 30. (c) In a reasonable time. (c) A document reflecting a ³meeting of the minds´ between two or more competent parties.´ (c) Both (a) and (b) (d) None of these (10) Which of the following phrases makes an order bill of exchange? (a) ³Pay to the order of A. In this transaction. simple definition of a contract is: (a) An objective ³meeting of minds. (b) Never as the instrument is void if it does not have a payment date. (d) None of these (14) If A is hit by a car. a doctor. Who is the drawee? (a) Utility Stores (b) Both Habib Bank and Utility Stores (c) Habib Bank (d) None of these (7) Which of the following may count as the signature of a drawer? (a) An ³X´ made by the drawer (b) The signature of the drawer¶s agent (c) Both of the above (d) None of these (8) Which of the following language on an order will create a bill of exchange? (a) ³Pay X if you can´ (b) ³I wish you pay X´ (c) ³Please pay X´ (d) None of these (9) Which of the following is payable at a definite time? (a) ³Payable when ³Z´ wins the presidential election.´ (c) Both (a) and (b) (d) None of these (11) A writes a postdated cheque. who is the drawee? (a) You because you drew up the cheque (b) Your bank because it must pay the cheque (c) The person who cuts your hair because the cheque is payable to him (d) None of these (13) The best. and B. sees the incident and performs emergency first aid upon A which results in A recovery: . because it does not specify a definite date of payment (c) No. Is it negotiable? (a) Yes (b) No.

4500. 5500 to A (d) None of these (16) The most common form of agency is: (a) Implied (b) Express (c) Injunctive (d) None of these (17) Assume that a new partner enters an ongoing partnership.(a) A unilateral contract is created whereby A is obligated to pay Dr. . Nothing further is said and the next day. (c) The new partner is only liable to the preexisting creditors to the extent of his capital contribution. The new partner¶s liability to preexisting creditors is best described by which of the following? (a) The new partner is not liable to preexisting creditors of the firm. (d) None of these (18) What is not a correct statement concerning promoters? (a) They are agents of the company (b) They generally are active before the company is formed (c) They owe fiduciary duties to the company (d) None of these (19) The phrase ³piercing the corporate veil´ refers to: (a) Inspecting the books of the company (b) The ignoring by courts of the corporate entity in order to do justice (c) Learning the identity of the shareholders of the company (d) None of these (20) When someone gives to another person a power of attorney. 2008 MERCANTILE LAW (Compulsory Question) Q. B for services rendered. (d) None of these (15) A offers to sell to B a mobile phone for Rs. B tells A that he will take the phone for Rs. (c) A quasi contract is created between the parties. 1 Select the best option/answer and fill in the appropriate box on the Answer Sheet. 4500 from B in exchange for the phone. Choose the true statement: (a) B is not obligated to pay Rs. this means that: (a) Such person is an undisclosed principal (b) Such person is a disclosed principal (c) Such person given the power has authority to act as an agent (d) None of these FEDERAL PUBLIC SERVICE COMMISSION COMPETITIVE EXAMINATION FOR RECRUITMENT TO POSTS IN BPS-17 UNDER THE FEDERAL GOVERNMENT. (b) A bilateral contract is created and both parties must perform their duties. 4500 to A (b) B is obligated to pay Rs. 5500. A demands Rs. 4500 to A (c) B is obligated to pay Rs. (b) The new partner must negotiate his or her liability with the preexisting creditors.

Ltd. 50.000/. The agreement is: (a) Void due to restraint of trade (b) Valid (c) Against X¶s fundamental rights (d) None of these (vii) Which one of the following cannot be called an Act of God: (a) An unprecedented rainfall (b) An earthquake (c) Fire not caused by lightening (d) None of these (viii) An obligation arises from: (a) A contract (b) From a wrongful act (c) Both (a) & (b) (d) None of these (ix) The rule nemo dat quod non habet means: (a) No-one should interfere in another¶s business (b) No-one should be retained in a partnership against his will (c) No-one can give what he has not got (d) None of these (x) In a public company the shares are subscribed by: (a) Government (b) Management (c) Creditors (d) None of these (xi) Can a minor be: (a) Admitted as partner in a firm (b) Admitted to the benefits of partnerships (c) Admitted as a sleeping partner . the agreement is: (a) Valid (b) Void (c) Voidable (d) None of these (ii) On a contract by an Agent on behalf of an undisclosed Principal.(i) If the consideration for an agreement is inadequate. deals with: (a) Counter proposal (b) Implied acceptance (c) Implied revocation (d) None of these (iv) What is the amount of care a bailee is required to take in respect of goods bailed to him: (a) Extraordinary (b) Ordinary (c) Reasonable (d) None of these (v) A Void Contract is: (a) An illegal agreement (b) Parlty valid agreement (c) Ceased to be a valid agreement (d) None of these (vi) X agrees not to carry on a similar business with Y for two years in consideration of Rs. the Principal: (a) May sue on contract (b) Cannot sue (c) Is hit by privity of contract (d) None of these (iii) Carlill v Carbolic Smoke Ball Co.as goodwill.

This is: (a) Persuasion (b) Coercion (c) Undue influence (d) None of these (xix) X is involved in some business. he transfers his share without the consent of all its members.(d) None of these (xii) Transfer of property means: (a) Delivery of goods (b) Transfer of possession (c) Transfer of ownership (d) None of these (xiii) Caveat Emptor rule means: (a) Employer beware (b) Seller beware (c) Creditor beware (d) None of these (xiv) A liquidator is a person: (a) Who is chairman of Board of Directors (b) Promoter of a company (c) Who winds-up a company (d) None of these (xv) Which one of the following clauses is considered vital in a memorandum of association of a public company: (a) Name clause (b) Object clause (c) Capital clause (d) None of these (xvi) A subsidiary company means (a) A supporting company (b) A non-entity (c) An unregistered company (d) None of these (xvii) Which of the following actions an unpaid seller cannot take against a buyer: (a) Exercise the right of lien (b) Stoppage of goods in transit (c) Sale (d) None of these (xviii)X draws a gun and asks Y to sign an agreement. He is working in: (a) A company (b) A firm 1) The rule nemo dat quod non habet means: (a) No-one should interfere in another s business (b) No-one should be retained in a partnership against his will (c) No-one can give what he has not got (d) None of these (2) In a public company the shares are subscribed by: .

(a) Government (b) Management (c) Creditors (d) None of these (3) Transfer of property means: (a) Delivery of goods (b) Transfer of possession (c) Transfer of ownership (d) None of these (4) Caveat Emptor rule means: (a) Employer beware (b) Seller beware (c) Creditor beware (d) None of these (5) A liquidator is a person: (a) Who is chairman of Board of Directors (b) Promoter of a company (c) Who winds-up a company (d) None of these 6) Under the doctrine of quasi contract. (c) More than 10. a Latin phrase that means: (a) as much as he deserves (b) treble damages (c) only a token sum (d) None of these (7) An empire in an arbitration reference is appointed when the number of arbitrators is: (a) Odd. (d) None of these . a plaintiff may recover in quantum merit . (b) Even.

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