M.C.Q. of Legal Aspects of Business

Vivekanand college for B.B.
A
(Legal Aspects of Business)
M.C.Q. Question Bank
Prepared by Ms. Nidhi Sangani
Ch.1 The Indian Contract Act 1872

1. The law relating to contracts is contained in
A. The Contract Act, 1782
B. The Indian Contract Act, 1872
C. The Contract Act, 1872
D. The Indian Contract Act, 1782.
2. The Indian Contract Act applies to the

A. whole of India including Jammu & Kashmir
B. whole of India excluding Jammu & Kashmir
C. states notified by the Central Government from time to time.
D. states notified by the appropriate Government every year.
3. The Indian Contract Act came into force on

A. 1st September, 1872
B. 1st October, 1872
C. 15th September, 1872
D. 15th October, 1872.
4. The general principles of the law of contract are contained in

A. Sections 1 to 75
B. Sections 76 to 123
C. Sections 124 to 238
D. Section 10.
5. The general principles of law of contract applied to all kinds of contract irrespective of
their nature.
A. True, as sections 1 to 75 lay down the general principles of law of contract
B. False, as for special kinds of contracts there are specific provisions in the respective
laws.
6. Which of the following eminent jurists has defined the contract as an agreement creating
and defining obligations between the parties?
A. Pollock
B. Halsbury
C. Salmond
D. Anson.
Vivekanand college for B.B.A
7. The term 'contract' is defined in which of the following sections of the Indian Contract
Act?
A. Section 2(b)
B. Section 2(a)
C. Section 2(e)
D. Section 2(h)
8. The special kinds of contracts, namely contracts of Indemnity and Guarantee, Bailment,
Pledge, and Agency contained in?
A. Sections 1 to 75
B. Sections 76 to 123
C. Sections 124 to 238
D. Section 10.
9. which section defined the Agreement?

A. Section 2(b)
B. Section 2(a)
C. Section 2(e)
D. Section 2(h)
10. Offer + Acceptance =

A. Contract
B. Agreement
C. Promise
D. None of the above
11. Which of the following statements is incorrect?

A. An agreement enforceable by law is a contract.
B. Every agreement is a contract.
C. An agreement is an accepted proposal.
D. A promise is defined in Section 2(b) of the Act.
12. A proposal when accepted becomes a

A. promise
B. acceptance
C. offer
D. contract.
13. An agreement ____ is contract.

A. made by parties
B. made by minor
C. enforceable by law
D. beneficial to both the parties.
14. Every promise and every set of promises forming_____ for each other is an agreement.
A. Consideration
B. Proposal
C. Acceptance
D. obligation
15. Every promise and every set of promises, forming the consideration for each other, is
called as:
A. A voidable contract
B. A contract
C. A void contract
D. An agreement
16. An agreement was entered into with the minor. This is agreement is:
A. Void
B. Voidable
C. Bad
D. Illegal
17. A, being in debt to B, the money lender of his village, contracts a fresh loan on terms
which appear to be unconscionable. This will be termed as:
A. Fraud
B. Coercion
C. Undue influence
D. Misrepresentation
18. When consent to an agreement is caused by coercion, fraud or misrepresentation, the

agreement is a contract:
A. Voidable at the option of the party whose consent was so cause.
B. Illegal
C. Depends upon the circumstances of the case.
D. Void
19. The consideration must be:
A. Adequate
B. Must be adequate
C. Need not be adequate
D. Substantially adequate
20. Essential elements of Valid Contract contained in _____
A. Section 8
B. Section 6
C. Section 10
D. Section 9
21. There are ____ modes of contract as per Indian Contract act 1872.
A. 4
B. 6
C. 7
D. 8
22. _________is the principal and most usual mode of discharge of a contract.
A. Discharge by performance
B. Discharge by mutual consent or agreement
C. Discharge by impossibility of performance
D. Discharge of a contract by lapse of time
23. Discharge by performance may be:
A. Actual performance
B. Attempted Performance and Tender
C. A or B

24. ______means the parties to a contract have performed their respective promises under
the contract.
A. Actual performance
B. Attempted Performance and Tender
C. Tender Performance
25. A contract can be discharged by mutual agreement in any of the following ways.
A. Novation
B. Alteration
C. Remission
D. Merger
E. All of the above
26. The term ______ implies the substitution of a new contract for the original one.
A. Novation
B. Alteration
C. Remission
D. Merger
27. A owed Rs 100 to B, under contract. B owned Rs 100 to C. It was agreed among A, B
and C that A would pay Rs 100 to C.
A. Novation
B. Alteration
C. Remission
D. Merger
28. It refers to a change in one or more of the terms of a contract with the consent of all the
contracting parties.
A. Novation
B. Alteration
C. Remission
D. Merger
29. ________ means the acceptance (by the promise) of a lesser sum than what was
contracted for, or a lesser fulfilment of the promise made.
A. Novation
B. Alteration
C. Remission
D. Merger
30. The conversion of the inferior right into the superior right is called a
A. Novation
B. Alteration
C. Remission
D. Merger
31. A owes B Rs 5,000. A pays Rs 2,000 to B and B accepts the amount in satisfaction of
the whole debt. The whole debt is discharged.
A. Novation
B. Alteration
C. Remission
D. Merger
32. A agreed with B to supply 100 TV sets at a certain price by the end of October. Subsequently,
‘A’ and ‘B’ mutually agree that the supply can be made by the end of November. This is an
alteration in the terms of the contract by consent of both the parties.
A. Novation
B. Alteration
C. Remission
D. Merger
33. Sometimes after a contract has been established, something might occur, though not at the
fault of either party, which can render the contract
A. Discharge by performance
B. Discharge by mutual consent or agreement
C. Discharge by impossibility of performance
D. Discharge of a contract by lapse of time
34. The impossibility of performance may be

A. Initial impossibility
B. Supervening impossibility
C. Impossibility by Default
D. A Or B
35. It means impossibility exists at the time of making a contract.
D. A Or B
36. Initial impossibility is also known
A. Pre-contractual impossibility
D. A Or B
37. Supervening impossibility is also known
D. Post contractual impossibility
38. Discharge of a contract by operation of law includes
A. Unauthorized material alteration of a written document

B. Death
C. Merger
D. Insolvency
E. All of the above
39. A Breach may be:
A. Anticipatory
B. Actual breach
C. A or B
40. _____is also known as ‘breach by repudiation’
A. Anticipatory
B. Actual breach
C. A or B
41._____ refers to the failure to perform contractual obligations when performance is due.
A. Anticipatory
B. Actual breach
C. A or B
42.______ is a legal cause of action and a type of civil wrong, in which a binding
agreement or bargained-for exchange is not honoured by one or more of the parties to the
contract by non-performance or interference with the other party's performance.
A. Anticipatory Breach of contract
B. Breach of Contract
C. Actual Breach of Contract
43. The term Rescission refers to
A. Discharged of contract
B. Cancellation of contract
C. Breach of contract
44. ______are a monetary compensation allowed to the injured party for the loss or injury
suffered by him as a result of the breach of contract.
A. Suit for Rescission
B. Suit for an Injunction
C. Suit for Damages
D. Suit for Quantum meruit
45. ________means “AS MUCH AS EARNED” in proportion to the work done.
C. Suit for Damages
D. Suit for Quantum meruit
46. _____means the actual carrying out of the contract as agreed.
C. Suit for Damages
D. Suit for specific performance
47. A contract which ceases to be enforceable by law becomes

A. Valid contract
B. Void contract
C. Voidable contract
D. Illegal contract
48. “An agreement which is enforceable by law at the option of one or more of
the parties thereto, but not at the option of the other or others, is a
A. Valid contract
B. Void contract
D. Illegal contract
49. A contract opposed to public policy is
A. Valid contract
B. Void contract
D. Illegal contract
50. it is valid but due to some technical defect the contract becomes void…..
A. Valid contract
B. Void contract
D. Unenforceable contract
51. when contracts are either in writing or in oral.
A. Express contract
B. Implied contract
C. Quasi contract
52. it is not actually entered into by the parties but is something imposed on a party by
law.
A. Express contract
B. Implied contract
C. Quasi contract
53. when contracts are neither in writing or in oral but inferred from the acts or
circumstances of a particular case…….
A. Express contract
B. Implied contract
C. Quasi contract
54. in a contract where both the parties have performed their obligation, there remains
nothing to perform…
A. Executed contract
B. Executory contract
C. Unilateral contract
D. Bilateral contract
55. in a contract where both the parties are yet to perform their obligation….
56. in contract one party has performed his obligation and other person is yet to perform
his obligation….
57. in a contract where both the parties have performed their obligation …
58. X makes an offer to sell his land for 10 lakhs to Y and Y accepts the offer. Both X and
Y set out agreement including all the conditions of sale and the remedies available to both
the parties, in case of non-performance by either party. This is a valid and binding contract
between both the parties. It is the example of ….
A. Valid contract
B. Void contract
59. a contract between an illegal drug supplier and a drug dealer is unenforceable from
the onset due to the illegal nature of the agreed-upon activity it is the example of
A. Valid contract
B. Void contract
60. Amar threatens to hit Akbar, if he does not sell his land for Rs. 10 lakhs to Amar.
Akbar sells his land to Amar and receives payment. Here, Akbar’s approval has been
obtained by force and hence this contract is void able at the option of Akbar .it is the
example of
A. Valid contract
B. Void contract
61. Amar agrees to pay Rs. 1 lakh to Akbar if he kills Anthony. Akbar killed and claims
Rs. 1 lakh. If Amar refuse to pay, Akbar cannot recover from Amar because the agreement
between Amar and Akbar is illegal and also its object is unlawful.it is the example of….
A. Valid contract
B. Void contract
D. Illegal contract
62. X ask Y; will you buy my car for Rs. 100000? Y answer to X, I am ready to buy your
car for Rs. 100000. It is an express contract made by spoken word. It is the example of…
A. Express contract
B. Implied contract
C. Quasi contract
63. If a person enters a bus, there is implied promise that he will have to pay the
bus fair it is the example of
A. Express contract
B. Implied contract
C. Quasi contract
64. These contracts are based on the principle of justice and equity.
A. Express contract
B. Implied contract
C. Quasi contract
65. X contracts to buy a bicycle for from Z for cash Rs. 10,000. X has paid cash and Z has
Delivered bicycle to X. Here, both the parties have performed their respective obligations
and nothing remains to be done, it is the example of
66. A promise to B that he would supply 10 cotton shirts to B within a week and B
promise to pay for them after a month. It is the example of
67. X takes a public auto to go to college. A contract comes into existence as soon as X
was dropped in college. By that time, auto man has fulfilled his part of obligation; only X
has to fulfil his part of obligation i.e. paying the auto- man. It is the example of
68. Tailor(X) promises to stitch a Shirt and customer(Y) promises to pay Rs.300. Here X
promises to stitch the Shirt and Y promises to pay. Thus each party is both a promissor and
a promisee. It is the example of
Ch.2 Negotiable instrument Act 1881
1.When did the Negotiable Instruments Act come into force?
A. 1 April 1882
B. 1 March 1936
C. 01 May 1989
D. 01 March 1882
2. The Negotiable Instruments Act, 1881 is an Act to define and amend the law relating
to………
A. cheques
B. bills of exchange
C. promissory notes,
D. All of the above
3. The Negotiable Instruments Act, 1881 extends to:
A. Only to Capital cities of the States.

B. The whole of India.
C. The whole of India except the State of Jammu and Kashmir.
D. The whole of India except the Union Territories.
4. Which section of the NI Act defines the words, ‘Negotiable Instrument’:
A. Section 15
B. Section 14
C. Section 13A
D. Section 13
5. The person named in the instrument, to whom or to whose order the money is by the
instrument directed to be paid, is called the:
A. Banker
B. Drawee
C. Drawer
D. Payee.
6. _______ means ‘something legally transferable from one person to another for a
consideration’.
A. Instrument
B. Negotiable
C. Negotiable instrument
D. None of the above.
7.. ______ means ‘a written document by which some legal rights are created in favour of
some person’
A. Instrument
B. Negotiable
C. Negotiable instrument
8. Negotiable instrument means a promissory note, bill of exchange or cheque, payable to

……….
A. Bearer
B. Either bearer or order
C. Neither bearer or order
D. Order
9.Which section of the Negotiable Instruments Act,1881 deals with Promissory note?
A. Section 4 of the Negotiable Instruments Act,1881
B. Section 24 of the Negotiable Instruments Act,1881
C. Section 3 of the Negotiable Instruments Act,1881
D. Section 6 of the Negotiable Instruments Act,1881
10. Which is NOT an example of “Promissory Note” …….
A. “I acknowledge myself to be indebted to B in Rs. 1, 000, to be paid on demand, Tor

value received.”
B. Mr B, I.O.U Rs. 1,000.”
C. “I promise to pay B or order Rs. 500”.
11. In a Promissory Note, how many parties are involved:
A. One
B. Three
C. Two
D. Four
12. The nature of “promissory note” is:
A. It contains an unconditional order to the drawee to pay the payee

B. It contains an unconditional promise by maker to pay the payee.
C. It is drawn on specified banker to pay on demand.
13.________ 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 of the instrument
A. Bill of exchange
B. Cheque
C. Promissory note
D. All of the above
14. The number of parties to a Promissory Note is…….
A. 1
B. 5
C. 4
D. 2
15. ____ cannot be a bearer instrument
A. Bill of exchange
B. Promissory note
C. Cheque
16. promissory note is an order to pay the?
A. Second party
B. First party
C. Third party
D. All of the above
17. A Promissory Note can be made payable
A. On demand
B. On a specific date
C. After a specified period – months or days
D. all of the above
18. What is ‘bills of exchange?
A. A “bill of exchange” 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 of the
instrument.
B. A “bill of exchange” is an instrument in writing containing an unconditional order,
signed by the maker, directing any person to pay a certain sum of money only to, or
to the order of, a certain person or to the bearer of the instrument.
C. A “bill of exchange” is an instrument in writing containing a conditional 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 of the instrument.
D. A “bill of exchange” is an instrument 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 of the instrument.
19. Section 5 of the Negotiable Instrument Act deals with…
A. Bills of Exchange
B. Holder in due course
C. Cheque
D. Promissory Note
20. When a bill is said to be dishonoured:
A. where presentment is excused and the bill is not accepted

B. one of several drawees makes default in acceptance upon being duly required to
accept the bill.
C. by non-acceptance by the drawee
D. All of the above.
21. A promissory note, bill of exchange or cheque drawn or made out of India and made
payable in, or drawn upon any person resident in India shall be deemed to be:
A. Incomplete instrument
B. Inchoate instrument
C. Foreign instrument
D. Inland instrument
22. The maker of a bill of exchange is called:
A. The drawee
B. The payee
C. The drawer
D. The banker
23. What is NOT true about the “bills of exchange”:
A. it is an instrument in writing
B. It is signed by the maker
C. Certain sum of money is mentioned on the instrument.
D. It contains a conditional order
24. In case of “bills of exchange”
A. the acceptance is:

B. It depends on the case to case basis Necessary if the bill is payable after
sight.
C. Not necessary
25. How many parties are there in the Bills of Exchange:
A. Four
B. Two
C. Three
D. One
26. The person who is directed by the maker of a bill of exchange to pay is called the:
A. Payee
B. Drawee
C. Endorsee
D. Drawer
27. Which bill is drawn and accepted in the same country?

A. Trade Bill
B. Foreign Bill
C. Inland Bill
D. Accommodation Bill
28. Who draws a bill of exchange?
A. Creditor
B. Holder
C. Debtors
29. What is the person known as who draws a bill of exchange
A. Drawer
B. Payee
C. Drawee
30. When the drawee signs the bill, it is considered as

A. Accepted
B. Retired
C. Renewed
D. Endorsed
31. The parties of a bill of exchange are

A. Drawer, acceptor and payee
B. Banker, drawee and payee
C. Banker, acceptor and payee
D. Banker, drawer and payee
32. Sec. 6 of negotiable instruments Act 1881 deals with
C. Cheque
D. Promissory Note
33. when the is crossed with Two parallel lines or with word ‘& Co.’ etc. this crossing is
known as
A. General crossing
B. Special crossing
C. Restrictive crossing
34. when the is crossed with Two parallel lines or with ‘A/c payee only.’ etc. this crossing
is known as
A. General crossing
B. Special crossing
C. Restrictive crossing
35. When bank has reason to believe that the title of the presenter is defective, then the
cheque will be
A. Dishonoured
B. Cancelled
C. Stalled
D. Cleared
36. is a bill of exchange drawn on a specified banker and not expressed to be payable
otherwise than on demand”.
C. Cheque
D. Promissory Note
37. It is the person who makes cheque, maker of the cheque.

A. Payee
B. Drawer
C. Drawee
D. maker
38. It is a banker who is directed to pay the amount of the cheque. In case of a cheque the
drawee is always the banker
A. Payee
B. Drawer
C. Drawee
D. Maker
39. It is the person to whom the amount of cheque is payable.
A. Payee
B. Drawer
C. Drawee
D. Maker
40. What is the essential elements of cheque?

A. It must be drawn on a specified banker. A cheque drawn on any person other than a
banker is not valid.
B. It must be payable on demand. A cheque is always payable on demand.
C. A or B
D. All of the above
41. ----------a negotiable instrument means any person entitled in his own name to the
possession thereof and to receive or recover the amount, due thereon from parties thereto.”
A. Holder
C. Maker
D. Payee
A. Holder in due course
B. Holder
C. Maker
D. Payee
43. Before a person can claim to be a holder of a negotiable instrument which two
conditions are necessary
A. He should be entitled in his own name the possession of the instrument, and
B. He should have the right to recover the amount due thereon from the parties.
C. Only A
D. A or B
44.__________ means either the payee, or the bearer or endorsee of an instrument.
A. Holder
C. Maker
D. Payee
45. Where a negotiable instrument is lost or destroyed, who is the person entitled to claim
the instrument at the time of such loss or destruction.
B. Holder
C. Maker
D. Payee
46.______means, any person who for consideration became the possessor of a promissory
note, bill of exchange or cheque, if payable to bearer, or the payee or endorsee thereof, if
payable to order, before the amount mentioned in it became payable, and without having
sufficient cause to believe that defect existed in the title of the person from whom he
derived his title.”
B. Holder
C. Maker
D. Payee
A. Holder
C. Maker
D. Payee
48. Which are the condition to become a holder in due course?

A. He has obtained the instrument by gift or for an unlawful consideration or by
illegal methods.
B. He acquires the instrument after its maturity.
C. When the circumstances are such that a reasonable person would suspect that the
title of the transferor is defective.
D. All of the above
49.____ may draw, indorse, deliver and negotiate such instrument so as to bind all parties
except himself.”
A. Minor
B. Unsound mind
C. Normal person
D. Government employee
50. The person who signs the instrument is called_______
A. Endorser
B. Endorsee
C. Endorsement
51. The person to whom the instrument is transferred by endorsement is called the_____
A. Endorser
B. Endorsee
C. Endorsement
CH. 3 Sale of Goods Act 1930

1. What is the purpose behind the enactment of Sale of Goods Act, 1930?
A. To define the laws relating to the sale of goods
B. To consolidate and amend the laws relating to the sale of goods
C. To consolidate, amend and define the laws relating to the sale of goods
D. To define and amend the laws relating to the sale of goods
2. Section 2(1) of Sale of Goods Act defines ‘buyer’ as:
A. Person who buys goods and services
B. Person who agrees to buy goods
C. Person who buys or agrees to buy goods
D. Person who buys or agrees to buy goods and services
3. Before the enactment of Sale of Goods Act, the provisions regarding Sale of Goods
were contained in:
A. Indian Contract Act, 1872
B. Indian Registration Act, 1908
C. Transfer of Property Act, 1882
D. Indian Partnership Act, 1932
4. Which of the following cannot be said to be included in the term “goods” defined under
section 2(7) of the Sale of Goods Act, 1930:
A. Stock
B. Shares
C. Growing crops
D. Actionable claims
5. Which of the following most appropriately describes the term “sale” as per Sale of
Goods Act, 1930:
A. A contract whereby seller transfers the property in goods
B. A contract whereby seller transfers or agrees to transfer the property in goods
to the buyer for a price
C. A contract where transfer of the property in goods is to take place at a future time
D. A contract where transfer of the property in goods is to take place subject to some
condition thereafter to be fulfilled
6. When does an agreement to sell become a sale as per the provisions of Sale Of Goods
Act, 1930:
A. When the seller transfers the property in goods
B. When the seller agrees to transfer the property in goods
C. When the time elapses or the conditions subject to which the property in the
goods is to be transferred are fulfilled
D. Agreement to sell is deemed to be sale
7. What can be the subject matter of the contract of sale as per section 6 of Sale of Goods
Act:
A. Only existing goods owned or possessed by the owner
B. Only Future goods
C. Existing goods which are neither owned nor possessed by the owner
D. Existing goods, owned or possessed by the owner or future goods
8. Where in a contract of sale the seller purports to effect the present sale of the future
goods, the contract operates as:
A. A Contract of sale
B. An agreement to sell the goods
C. A Contact of sale or agreement to sell
D. It is not a valid contract
9. In a contract for sale of specific goods, the goods, without the knowledge of seller
perished at the time when the contract was made, the contract is:
A. A voidable contract at the instance of seller
B. A voidable contract at the instance of buyer
C. A voidable contract subject to approval of the civil court
D. A void contract
10. A contract of sale may be made:
A. A in writing or by word of mouth
B. partly in writing of partly by word of mouth
C. by the implied conduct of parties
D. All of the above
11. A is a stipulation essential to main purpose of the contract and the breach of which
gives rise to a right to treat the contract as repudiated:
A. Condition
B. Warranty
C. Disclaimer
D. Guarantee
12. A is a stipulation collateral to main purpose of the contract and the breach of which
gives rise to a right to claim for damages but not to a right to reject goods and treat the
contract as repudiated:
A. Condition
B. Warranty
C. Terms of contract
D. Disclaimer
13. When can a breach of condition be treated as a breach of warranty by the seller as per
the provisions of Sale of Goods Act, 1930:
A. When the buyer fulfils the condition stipulated to the contract of sale
B. When the contract of sale is severable and the buyer has accepted the entire goods
C. When the contract of the sale is not severable and the buyer has accepted the
goods or part thereof, subject to an express or implied term in the contract
D. When the contract of the sale is severable and the buyer has accepted the entire
goods or part thereof
14. In the Contract of Sale, there is an implied warranty that:
A. Seller has a right to sell the goods
B. The buyer has the right to have and enjoy the quiet possession of goods only.
C. The goods shall be free from any charge or encumbrance
D. The buyer has the right to have and enjoy the quiet possession of goods and
that the goods shall be free from any charge or encumbrance.
15. Where there is a contract for the sale of specific or ascertained goods the property in
them is transferred to the buyer at the time when the:
A. Parties intend the property in goods to pass
B. Contract is entered into
C. Price is paid
D. Delivery of goods has been made
16. According to Sale of Goods Act, 1930, ‘seller’ means a person:

A. who only agrees to sell the goods
B. who only sells the goods
C. who sells or agrees to sell
D. who transfers the possession of the goods to the other party
17. ____________ is termed as consideration in a contract of sale:
A. Exchange money
B. Barter money
C. Price
D. Reward
18. The position of the finder of lost goods is that of:
A. Bailee
B. Bailor
C. Creditor
D. True owner
19. X purchases a car from Y. After 6 months, Z, the true owner of the car, demanded it
from X. X had to return it to its true owner. X was entitled to recover the full price even
though several months have passed. This is an example of:
A. Condition as to description
B. Condition as to sample
C. Condition as to title
D. Condition as to fitness
20. A drug was sold by an auction and according to the usage of trade it was to disclose in
advance of any vast damage caused in the quality of the drug but such disclosure was not
made and the drug was found to be defective. This is an example of:
A. Warranty as to undisturbed possession
B. Warranty as to quality or fitness by usage of trade
C. Warranty as to non-existence of encumbrances
D. Disclosure of dangerous nature of goods
21. Condition is a stipulation which is

A. Essential to the main purpose of contract
B. Collateral to the main purpose of contract
C. Not essential to the main purpose of contract
D. Collateral to the main purpose of contract
22. The sale of goods Act deals only with goods which are ______________ in nature
A. Immovable
B. Movable
C. Specific
D. All of the above
23. Goods that are identified at the time of contract of sale is called ________________
goods
A. Specific Goods
B. ascertained goods
C. clear Goods
D. both a & b
24. __________________________ is the concept of “LET THE BUYER BEWARE”.
A. Information Center
B. Unfair Trade Practices
C. Caveat Emptor
D. Buyer Kingdom
25. ___________________ and _______________ are the two parties involved in
Contract of sale
A. Seller & Buyer
B. Agent & Principle
C. Customer & Sales man
D. Customer and supplier
26. The subject matter of the contract under Sale of goods Act must be
A. Money
B. Goods
C. Immovable Goods
D. All of the above
27. In sale the transfer of property in goods from the seller to the buyer takes place
A. At the end of contract
B. Immediately
C. In a future Date
D. Both A&B
28. The goods must be ________ goods for transferring the property in the goods.
A. Ascertained
B. Unascertained
C. Future
D. All of the above
29. A consideration in contract of sale must be ______________ only
A. Goods
B. movable only
C. price
D. Purchase
30. A sale is said to be completed when ___________ is transferred from one party to the
other party
A. Money
B. Goods
C. Interest
D. Ownership
31. An agreement to sell the transfer of ownership is ___________
A. Definite
B. Mandatory
C. Conditional
D. immaterial
32. A sold his laptop to B, but for some repairing purpose A retained the laptop with him.
The laptop is stolen by C , in this case the loss will fall on
A. B
B. C
C. A
D. None of them
33. ‘Goods’ means every kind of __________________ property

A. sellable
B. immovable
C. existing
D. movable
34. A contact for the sale of goods which provide that the property would pass to the
buyer on full payment of price and execution of sale deed, is known as
A. Sale
B. Agreement to sale
C. Hire purchase agreement
D. Sale of approval
35. Sale of Goods Act, 1930 defines the term ‘goods’ as every kind of moveable property
other than actionable claims and money; and includes _________________and things
attached to or forming part of the land which are agreed to be severed before sale or under
the contract of sale.
A. Stock
B. Shares
C. growing crops, grass
D. All of the above
36. Future good – goods to be manufactured or produced or acquired by the seller after
making of the contract of sale.
A. True
B. False
37. When the seller of the goods is deemed to be ‘unpaid seller’?
A. when the whole of the price has not been paid or tendered
B. when a bill of exchange or other negotiable instrument has been received as
conditional payment, and the condition on which it was received has not been
fulfilled by reason of the dishonour of the instrument or otherwise
C. Both A&B
D. None
38. An unpaid seller’s right against the goods are:

A. A lien or right of retention
B. The right of stoppage in transit.
C. The right of resale.
D. The right to withhold delivery
E. All of the above
39. Buyer’s Remedies against Seller for Breach of Contract include:
A. Suit for Damages for Non-Delivery
B. Suit for specific performance
C. Suit for Breach of Warranty
D. All of the above
40. Which of the following is correct in the case of a sale by auction?
A. The sale is complete when the auctioneer announces its completion by the fall of the
hammer or in other customary manner; and until such announcement is made, any
bidder may retract his bid
B. the sale may be notified to be subject to a reserved or set up price
C. If the seller makes use of pretended bidding to raise the price, the sale is voidable at
the option of the buyer
D. All of the above
41. Consequences of Breach of Warranty include:
A. The breach of warranty gives right to a claim for damages but not to reject the
goods and treat the contract as repudiated.
B. Buyer may sue for damages.
C. No remedy is available if the fulfilment of warranty becomes impossible by law.
D. All of the above
Ch. 4 Consumer protection Act 2019

1. The concept of consumer protection is
A. To safeguard the interests of the consumers.
B. To educated consumer
C. Established redressal agency
D. All of the above
2. What is the need of consumer protection act 2019?
A. Physical safety of a consumer.
B. Access to information.
C. Corporate Social Responsibility
D. All of the above
3. A ________ is generally understood as a person who uses or consumes goods or avails
of any service.
A. Payee
B. Consumer
C. Creditors
4. Goods that are falsely claimed to be genuine.
A. Specific goods
B. Future goods
C. Spurious goods
D. Contingent goods
5. The Consumer Protection Act 2019 provides how many rights of consumers.
A. 1
B. 7
C. 8
D. 6
6. As per the Consumer protection act 2019 rights of consumer ……………

A. Right to Safety
B. Right to Safety
C. Right to Safety
D. Right to be heard
E. All of the above
7. Department of Consumer Affairs, GOI, has been undertaking___________ for
generating awareness among consumers.
A. Jago Grahak Jago campaign.
B. raise his voice against any unfair trade practices.
C. an understanding of his responsibilities
D. all of the above
8. The Consumer Protection Act 2019 provides for setting up ________of enforcement
machinery
A. Two tire
B. Four tire
C. Three tire
D. One tire
9. has a jurisdiction to entertain complaints where value of goods or services paid as

consideration does not exceed one crore rupees.
A. National commission
B. Stat commission
C. District commission
10. If any of the parties are not satisfied by the order of District Commission can appeal
against such order to the State Commission on the grounds off acts or law within a period
of
A. 30 to 35 days
B. 40 to 45 days
C. 20 to 25 days
D. 30 to 40 days
11. It is established by the respective state government and ordinarily function at the state
capital.
A. National commission
B. Stat commission
C. District commission
12. State Commission has a jurisdiction to entertain complaints where value of goods and
services paid as consideration
A. Exceed one crore but does not exceed twenty crores

B. Exceed one crore but does not exceed ten crores
C. Exceed two crores but does not exceed five crores
D. Exceed one crore
13. If any of the parties are not satisfied by the order of State Commission can appeal
against such order to the National Commission within a period of
A. 20 days
B. 25 days
C. 35 days
D. 30 days
14. National Commission has a jurisdiction to entertain complaints where value of goods
or services paid as consideration…….
A. Exceed 2 crores
B. Exceed 10 crores
C. Exceed 5 crores
15. If any of the parties are not satisfied by the order of National Commission can appeal
against such order to the Supreme Court of India within a period of
A. 40 days
B. 45 days
C. 30 days
D. 25 days
Ch. 5 Information Technology Act 2000

1. When the IT Act 2000 came into existence?
A. 15th October 1999
B. 17th October 2000
C. 17th December 1999
D. 17th July 2000
2. The bill was passed in the budget session of 2000 and signed by ______
A. K. R. Narayanan on 9 June 2000.
B. S.R. Narayan on 9th June 2000
C. K.R. Narayanan on 8th June 2000.
D. A.R. Narayana on 7th June 2000.
3. The original Act contained ______
A. 95 sections, 13 chapters and 4 schedules
B. 94 sections, 13 chapters and 4 schedules
C. 92 sections, 12 chapters and 4 schedules
D. 94 sections, 11 chapters and 3 schedules
4. _____commonly known as ‘e-signature’ and ‘e-sign’ is a legal concept, that is different
from digital signature which is a cryptographic method used to implement electronic
signatures.
A. Traditional signature
B. Electronic signature
C. Only A
5. Which of the following acts allows to use electronic signature?
A. Uniform Electronic Transactions Act (UETA) in 1999
B. Electronic Signatures in Global and National Commerce Act (ESIGN) in 2000
C. Information technology act 2000
D. A or B
6. _________category includes signatures in the form of scanned images, tick boxed,

typed names, and e-squiggles.
A. Click-to-Sign Signatures
B. Basic Electronic Signatures
C. Advanced Electronic Signatures
D. Qualified Electronic Signatures
7.______ involve the process of applying a handwritten signature mark on the document
by the signer which is then protected with a cryptographic digital signature.
8.________ have a higher level of security.
9. __________is actually an advanced electronic signature with some additional features.
10. Electronic Signature Used for…….
A. Invoices, sales contracts, and NDAs
B. Employee paperwork, timesheets, and approve proposals
C. School forms, permission slips, and release forms
D. All of the above
11. ___________is the integration of Information and Communication Technology (ICT)

in all the processes, with the aim of enhancing government ability to address the needs of
the general public.
A. Electronic governance
B. E- Commerce
C. Only A
D. A or B
12. When the exchange of information and services is within the periphery of the
government, is termed as____ interaction
A. G2C (Government to Citizen)
B. G2B (Government to Business)
C. G2E (Government to Employees)
D. G2G (Government to Government)
13. The interaction amidst the government and general public is ___________ interaction.
14. The e-governance helps the business class to interact with the government seamlessly.
15. Section 18 to 25 includes functions of ________-
A. Function of certifying authorities
B. Function of controller officers
C. Function of controller certifying authorities
D. All of the above
16. ______means the key of a key pair used to create a digital signature.
A. Private key
B. Public key
C. Secure system
17._____ means the key of a key pair used to verify a digital signature and listed in the
Digital Signature Certificate.
A. Private key
B. Public key
C. Secure system

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Vivekanand college for B.B.

Prepared by Ms. Nidhi Sangani

Ch.1 The Indian Contract Act 1872

2. The Indian Contract Act applies to the

3. The Indian Contract Act came into force on

4. The general principles of the law of contract are contained in

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9. which section defined the Agreement?

10. Offer + Acceptance =

11. Which of the following statements is incorrect?

12. A proposal when accepted becomes a

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13. An agreement ____ is contract.

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18. When consent to an agreement is caused by coercion, fraud or misrepresentation, the

B. Attempted Performance and Tender

D. None of the above

Prepared by Ms. Nidhi Sangani

B. Attempted Performance and Tender

D. None of the above

Prepared by Ms. Nidhi Sangani

Prepared by Ms. Nidhi Sangani

34. The impossibility of performance may be

A. Unauthorized material alteration of a written document

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39. A Breach may be:

40. _____is also known as ‘breach by repudiation’

Prepared by Ms. Nidhi Sangani

47. A contract which ceases to be enforceable by law becomes

Prepared by Ms. Nidhi Sangani

Prepared by Ms. Nidhi Sangani

Prepared by Ms. Nidhi Sangani

Prepared by Ms. Nidhi Sangani

Prepared by Ms. Nidhi Sangani

Ch.2 Negotiable instrument Act 1881

1.When did the Negotiable Instruments Act come into force?

3. The Negotiable Instruments Act, 1881 extends to:

A. Only to Capital cities of the States.

4. Which section of the NI Act defines the words, ‘Negotiable Instrument’:

Prepared by Ms. Nidhi Sangani

8. Negotiable instrument means a promissory note, bill of exchange or cheque, payable to

A. “I acknowledge myself to be indebted to B in Rs. 1, 000, to be paid on demand, Tor

Prepared by Ms. Nidhi Sangani

11. In a Promissory Note, how many parties are involved:

12. The nature of “promissory note” is:

A. It contains an unconditional order to the drawee to pay the payee

13.________ an instrument in writing containing an unconditional undertaking signed by

14. The number of parties to a Promissory Note is…….

15. ____ cannot be a bearer instrument

Prepared by Ms. Nidhi Sangani

16. promissory note is an order to pay the?

17. A Promissory Note can be made payable

18. What is ‘bills of exchange?

A. A “bill of exchange” is an instrument in writing containing an unconditional

19. Section 5 of the Negotiable Instrument Act deals with…

Prepared by Ms. Nidhi Sangani

20. When a bill is said to be dishonoured:

A. where presentment is excused and the bill is not accepted

22. The maker of a bill of exchange is called:

23. What is NOT true about the “bills of exchange”:

24. In case of “bills of exchange”

A. the acceptance is:

Prepared by Ms. Nidhi Sangani

25. How many parties are there in the Bills of Exchange: