MOIZ ALI ABBAS

SP18-BBA-165
Business Law

Those rules and principles that govern and regulate social conduct and observance of
which can be enforced in courts of law, is known as:
1. Law
2. Rules
3. Policies
4. Customs

Property disputes, work related disputes, copyright disputes and claims by

consumer against manufacturer are examples of
1. Administrative law
2. Labour law
3. Constitutional law
4. Civil law

Person found guilty of a crime is the

1. Plaintiff
2. Respondent
3. Convict
4. Defendant

Pakistan has a Federal Parliamentary system of government. The federal legislature

is a bicameral Majlis e Shoora (Parliament), composed of
1. President, Governor and Prime Minister
2. President, National Assembly and Provincial Assembly
3. President, National Assembly and Senate
4. President, Prime Minister and National Assembly

The Law of Contract is

1. Law of agreements
2. Law of agreements which creates legal obligation
3. Law of all agreements
 4. Law of personal and social agreement

A contract in which nothing remains to be done by either party is called

1. Executed
2. Executory
3. Unilateral
4. Voidable

Legal relationship, in relation to law of contact, means

1. Lawful relationship
2. Relationship permissible by law
3. Legal rights and obligations
4. All rights and obligations

Voidable contract is voidable at the option of

1. Both parties of contract
2. One party of the contract
3. None of the parties of the contract
4. Aggrieved party of a contract

Which of the following statements is true:

1. Voidable contract is valid at the time of making it
2. Contract is void if an essential of free consent is missing in it
3. All void agreements are illegal
4. All illegal agreements are not necessarily void

Which of the following statement is true

1. Void agreement and void contract are one and same
2. Void agreement create legal rights and obligation between parties
3. Void contracts remain valid until they are declared void
4. Any transaction based on void contract will also be void

Which of the following statement is true

1. Agreements between husband and wife constitute a contract
2. Agreement between friends cannot be enforced
3. Agreements between friends creating legal relationship can be enforced
 4. All agreements are contract

Void agreement can be enforced

1. By one of the parties
2. By aggrieved party
3. By none of the parties
4. By the party entitled to do so

An agreement to be enforced in the court must have

1. Legal enforceability
2. Mutual consent between the parties
3. Lawful consideration
4. All of the above

An agreement is a voidable contract when it is

1. Enforceable if certain conditions are fulfilled
2. Enforceable by law at the option of the aggrieved party
3. Enforceable by both the parties
4. Not enforceable at all

An agreement not enforceable by law is said to be

1. Void
2. Voidable
3. Valid
4. Unenforceable

A Contract
1. May be void as originally entered into
2. May become void subsequent to its formation
3. Cannot become void under any circumstances
4. May become void at the will of a party

Lawful offer is
1. Promise
2. Legal relation
3. Proposal
4. Presentation
Which of the following result/results in an offer?
1. A declaration of intention
2. An invitation to offer
3. An advertisement offering reward to anyone who finds the lost dog of the advertiser
4. An offer made in a joke

A letter of acceptance, for a lawful and legal matter, sufficiently stamped and duly
addressed is put into course of transmission. There is
1. A contract voidable at the option of acceptor
2. A contract voidable at the option of offer or
3. No contract at all
4. A valid contract

An offer is not different from

1. Advertisement
2. Price list
3. Proposal for doing or not doing something
4. Display of the goods

A makes an offer to B on 10th by a letter which reaches B on 12th. B posts letter of

acceptance on 14th which reaches A on 16th. The communication of acceptance is complete
as against A on

1. 12th
2. 14th
3. 16th
4. 10th

Offer is simply a
1. Mere expression of willingness to do or not to do some thing
2. Intention to create legal relationship
3. Intention to get assent of other party for offered act or abstinence
4. All of the above

An offer cannot be made

 1. By the words of mouth
2. By the conduct of party
3. By the circumstances
4. To the offeror himself

An offer is said to be revoked

1. By non-fulfillment of condition precedent to acceptance
2. Acceptance is not in prescribed mode, but offeror does not reject it
3. Acceptance is not given within reasonable period of time, but offeror does not object
4. Misunderstanding has arisen between offeror and offeree

Acceptance must be given in:

1. Usual manner
2. Prescribed manner
3. Any manner suitable to the offeree
4. More effective manner

Which of the following statements is true

1. A proposal may be revoked at any time before the communication of its
acceptance is complete as against the offeree.
2. Acceptance may be revoked at any time, before the communication
of acceptance is complete as against the acceptor
3. An offer initially rejected may subsequently be accepted
4. Letter of offer may be sent after letter of acceptance

A person cannot make an offer

1. To a person of sound mind
2. To his friend
3. To himself
4. To the citizen of a foreign country

An offer gets legal consequences

1. As soon as it is made
2. As soon as it is communicated
3. As soon as it is revoked
4. As soon as it is accepted
An agreement by an idiot is
1. Voidable
2. Enforceable
3. Invalid
4. Void ab-initio

An agreement made with a minor is:

1. Void
2. Void ab-initio
3. Voidable
4. Unenforceable

Agreement made with a minor for basic necessities is

1. Valid
2. Voidable
3. Unenforceable
4. Void, but money involved is recoverable from estate of minor

There are some disqualifications imposed on certain persons in respect of their capacity to
contract.
Choose the incorrect one from the following
1. Convict
2. Alien enemy
3. Solvent
4. Foreign sovereign

Minor can be appointed as an agent, because

1. Creation of agency does not require any consideration
2. Agent makes agreement on behalf of principal
3. The minor has not attained the age of majority
4. Agreement made by minor is void, therefore principal is on safe side

A person is said to be of sound mind if

1. He is mentally fit for making decisions
2. He is capable of understanding contract and forming rational judgement about
it
3. He has been declared as of a sound mind by the Doctor
 4. He can make contract and can obtain benefit

A convict may be debarred from making agreement

1. For one month only
2. For ever
3. For a particular period of time
4. When he was convicted of an offence

Contractual capacity of the person is affected by

1. His age
2. His soundness of mind
3. By law to which he is subject
4. By all above factors

Which of the following statement is true

1. Corporation or company can enter into a contract
2. Foreign Ambassador can be sued in by Pakistani citizen for enforcing rights of
agreement
3. Married woman can make agreement regarding joint property of husband and wife
4. Lunatic has no contractual capacity at all

A minor becomes liable for basic necessities supplied to him

1. After attaining age of majority
2. After minor makes promise to pay for
3. From his personal property if any
4. He is not at all liable

Which of the following statement is true

1. Minor cannot be appointed as an agent
2. Minor is not allowed to plead his minority always
3. An agreement with a minor is void
4. Minor can ratify void agreement, when he becomes major

Which of the following statement is false

1. Minor cannot become partner in a firm
2. Education loan taken by the minor is recoverable from his property
3. Minor can be declared as an insolvent
4. An agreement with a minor is void
A person is usually of unsound mind, but occasionally of sound mind
1. He may enter into a contract when he is of sound mind
2. He may not make a contract even when he is of sound mind
3. He cannot enter into a contract at all
4. None of the above

Contract entered before the declaration of war are

1. Either suspended or terminated during the period of war
2. Executory contract
3. Voidable
4. Void ab initio

Implied acceptance is inferred

1. From the silence of offeree
2. From the conduct of the offeree
3. From the written statement of the offeree
4. From the oral statement of the offeree

Abdullah offered by letter to sell Karim his motorbike for Rs. 5,000. Karim wrote back saying he
accepted the offer and would pay in two instalments at the end of the two following months. Is
there a contract?
1. No, because Karim is trying to amend the contractual terms. Abdullah can be
assumed to revoke the offer
2. Yes, there has been as offer and acceptance and a binding contract applies
3. No, Karim’s response constitutes a counteroffer and is effectively a
rejection of Abdullah’s offer
4. Yes, Karim’s response is merely a clarification of contractual terms.

General offer can be accepted

1. By any member of the public who had notice of the offer
2. By all members of the public
3. By any member of public who did not have notice of the offer
4. By a particular member of the public
A contract in which a promise on one side is exchanged for a promise on the other is called
1. Executed
2. Bilateral
3. Unilateral
4. Voidable

Which of the following statement is true

1. Valid contract is always valid
2. Valid contract is not valid from the time it was made
3. Valid contract may become void later on
4. Valid contract is necessarily void agreement

Any lawful act will constitute consideration if it is done

1. At the desire of promisee
2. Voluntarily
3. At the desire of promisor
4. At the desire of third party

Consideration in order to be legally valid

1. Must be adequate
2. Need not be adequate
3. Must be equal in terms of value
4. Must be in-equal to promise

Agreements made on account of natural love and affection without consideration will be valid if
it fulfills following conditions
1. Expressed in writing
2. Registered under the law
3. Between parties standing in a near relation to each other
4. All of the above

Consideration which is moved simultaneously with the promise is known as

1. Present consideration
2. Past consideration
3. Future consideration
4. Instant consideration
Which of the following statement is true
1. Consideration must always be given by the promisee
2. Consideration must be given by third party on behalf of promisee
3. Consideration must be given by the agent of promisee
4. Consideration may be given by promisee or any other person on his behalf

Which of the following statement is true

1. Act done at the request of the third party will form consideration for the promisor
2. Act done by the promisee voluntarily constitutes consideration for the promisor
3. Act done by third party will constitute consideration
4. Act done at the request of promisor will constitute consideration for the
promisee

Agreement made without consideration is

1. Void
2. Unlawful
3. Unenforceable
4. Voidable

Which of the following statement is true

1. Future consideration or Executory consideration is one and same
2. Past consideration is not as good as present consideration
3. A promise to accept lesser fulfilment of promise requires consideration
4. Consideration affects validity of completed gift.

Akram makes an agreement for buying raw material from Bilal on 1st January. The raw
material is to be supplied by Bilal on 20th January and Payment is to be made by Akram on
15th March. What is the legal status of this contract?
1. This contract is not valid as consideration has not being supplied
2. This contract is valid as consideration is present consideration
3. This contract is not valid because past consideration is not recognized by law
4. This contract is valid as consideration is future consideration

According to the Contract Act which consideration is not valid

1. Past consideration
2. Present consideration
 3. Future consideration
4. Illusory consideration

Consideration must be given at the desire of

1. Promisee
2. Promisor
3. Both of them
4. Third party

The promisor is bound to donate money

1. If he has made promise to donate
2. If he has charitable bent of mind
3. If the promisee has undertaken some liability on the basis of such promise
4. Under none of the above condition

Consideration must be something which the promisor

1. Is already bound to do
2. Is not already bound to do
3. May voluntarily do
4. Must not do

A promise to compensate, wholly or in part, a person who has voluntarily done something for
the promisor is
1. Enforceable
2. Not enforceable
3. Void
4. Voidable

Consideration
1. Must move from the promisee
2. May move from the promisee or any other person
3. Must move from the third party
4. May move from the promisor
 Section B
Attempt all Questions
1. If you are one of the parties in the contract of negotiable instruments, what other parties do
you think will be involved in the contract and what would be their roles and responsibilities,
what conditions would you impose on Holders in Due course do you think should be there
in place? ( 10 Marks)

2. If you would be hired as a HR manager of a company, & we give you a task on how to
indulge all partners equally contributed whether they are regarding the profit and loss
sharing or inputs providing in activities? Explain How? (10 Marks)

3. Talking about the contract of sale of Goods, how would you transfer the ownership of the
Goods, what are the essential step to be taken for keeping your contract valid, How would
you fix a price for those goods, or if these goods are destructed what are possible effects
of those destructions caused? ( 10 Marks)

4. Being a Key Account Manager what would be your duties to maintain your accounts? (10
Marks)