Professional Documents
Culture Documents
UNIVERSITY OF CALICUT
BBA
III SEMESTER
(2019 Admn. Onwards)
BUSINESS REGULATIONS
QUESTION BANK
7. When an offer can be accepted only by the person to whom it is made, it is called-
(a)Express offer (b)General offer
(c)Specific offer (d)Implied offer
8. A promise to subscribe to a charity is a
(a) Void agreement (b) Void contract
(c) Voidable contract (d) Valid contract
9. A contract for the benefit of a minor entered into by his manager is
(a) illegal (b)Voidable
(c)Void (d)Valid
10. Two or more persons are said to consent when they agree upon
(a)The same thing in the same sense (b)The same thing in any sense
(c)The same thing in a specific sense (d)None of these
13. If a contract provides for the payment of a certain amount on breach of a contract, such
payment is termed as:
(a) special damages (b) nominal damages
(c) liquidated damages (d) compensatory damages
14. The effect of refusal to accept a properly made offer of performance is that:
(a) the promisor is not responsible for non-performance and can sue the promisee for
the breach of contract.
(b) such offer lapses on rejection by the offeree.
(c) the contract is rendered voidable at the option of promisor.
(d) the contract is discharged by anticipatory breach.
15. Which of the following case is not covered by the concept of supervening impossibility?
(a) Destruction of subject matter
(b) Death or incapacity of the promisor
(c) Outbreak of war
(d) Difficulty of performance
16. In which of the following circumstances a contract can be treated as discharged under the
concept of supervening impossibility?
(a) spurt in prices (b) change in import policy
(c) non-receipt of raw material from the supplier (d) shortage of working capital
Business Regulations Page 2
School of Distance Education
17. Under the Contract Act, 1872 a person is said to be of sound mind for the purpose of making
a contract if:
(a) he is not illiterate and can read and understand the terms of the contract.
(b) he is capable of understanding the contract and forming a rational judgement as to its
effect upon his interests.
(c) he is of the age of majority and is not disqualified from contracting by any
law to which he is subject.
(d) he is not suffering from any mental disease or distress.
18. A positive assertion, in a manner not warranted by the information of the person making it, of
that which is not true, though he believes it to be true is said to be a:
(a) fraud (b) misrepresentation
(c) mistake (d) misinterpretation
32. Which of the following is not the legal requirements of a valid offer
(a) It must be communicated to the offeree
(b) It must be made with a view to obtain offeree's assent
(c) It must express offeree's final willingness
(d) It must be made to a specific person and not to public at large
34. An agreement made with free consent to which the consideration is lawful but inadequate, is
(a) void (b) valid
(c) voidable (d) unlawful
35. For the enforcement of a promise to pay a time-barred debt without consideration, which of
the following condition is not required?
(a) It must be in writing (b) It must be definite and express
(c) It must be signed by the promisor (d) It must be registered in Court of Law
65. Share market transactions with a clear intention only to settle the price difference are
(a) wagering agreements (b) not wagering agreements
(c) contingent contracts (d) voidable agreements
66. Which of these are not opposed to public policy?
(a) Trading with enemy (b) Stifling prosecution
(c) Compromise of compoundable offences (d) Agreement to commit a crime
67. Where a person agrees to maintain a suit, in which he has no interest, the proceeding is
known as
(a) champerty (b) maintenance
(c) stifling with prosecution (d) interference with course of justice
68. An agreement whereby one party assists another in recovering money or property and in turn
share in the proceeds of the action is called
(a) champerty (b) maintenance
(c) stifling with prosecution (d) trafficking the public office
69. Which of the following is a contingent contract?
(a) Contract of insurance (b) Contract for doing impossible acts
(c) Marriage contract (d) Wagering agreements
70. Consent means parties agreeing on
(a) the terms of contract (b) some terms of contract
(c) the same thing in the same sense (d) any matter of contract
82. A minor’s guardian is not liable to the creditor for breach of contract by the minor, if the
contract is for __________
(a) supply of necessaries (b) supply of non-necessaries
(c) supply of services (d) all of the above
83. The doctrine of restitution refers to the restoration of property or goods, obtained by false
representation. This doctrine is
(a) beneficial to minors (b) not applicable to minors
(c) applicable to minors (d) none of the above
84. A consideration in a contract
(a) may be any thing (b) nothing in return
(c) something in return (d) may be illusory
85. A consideration may be
(a) past (b) present
(c) future (d) either (a) or (b) or (c)
86. An agreement not supported by the consideration is called
(a) Nudum Pactum (b) an invalid consideration
(c) ab initio (d) Namo dat quod non habet
87. The consideration is to be moved sometime after the formation of a contract, it is known as
(a) present consideration (b) executory consideration
(c) past consideration (d) executed consideration
88. The term privity of contract means
(a) stranger to contract (b) contract is private
(c) first party to contract (d) second party to contract
89. A proposal may consist of a promise for
(a) doing an act (b) abstaining from doing an act
(c) either (a) or (b) (d) returning the consideration
90. A offers to sell his car on internet, it is
(a) an express offer (b) an implied offer
(c) a particular offer (d) no offer
91. The offer which is allowed to remain open for the acceptance over a period of time is known
as a/an
(a) standing offer (b) specific offer
(c) special offer (d) implied offer
92. The offer made to a specific person or group of persons is known as a
(a) standing offer (b) specific offer
(c) special offer (d) separate offer
94. When a person invites the other party to make an offer, he is said to make a/an
(a) proposal (b) offer
(c) invitation to offer (d) acceptance
95. Price lists, catalogues, advertisements in newspapers and enquiries from customers are
(a) offers (b) invitations to offer
(c) acceptances (d) cross offers
96. Goods displayed in a shop with a price label is
(a) an offer (b) an invitation to offer
(c) a counter-offer (d) a contra-offer
97. When the offers made by two persons to each other containing similar terms of bargain cross
each other in post, they are known as
(a) cross offers (b) implied offers
(c) direct offers (d) express offers
98. Which of the following is not the mode of the lapse of an offer?
(a) lapse of time (b) case against the offeror
(c) insanity of the offeror (d) failure to accept condition precedent
Business Regulations Page 10
School of Distance Education
99. Contract is defined as an agreement enforceable by law, vide section . . . . . of the Indian
Contract Act
(a) 2 (e) (b) 2 (f)
(c) 2 (h) (d) 2 (i)
100. When the contract is perfectly valid but cannot be enforced because of certain technical
defects. This is called
(a) unilateral contract (b) bilateral contract
(c) unenforceable contract (d) void contract
101. Where a contract has to be inferred from the conduct of parties, it is called
(a) express contract (b) implied contract
(c) tacit contract (d) unlawful contract
102. Where the obligation in a contract is outstanding on the part of both parties, it is called
(a) void contract (b) illegal agreement
(c) valid contract (d) bilateral contract
103. A contract in which, under the terms of a contract, nothing remains to be done by either
party is known as
(a) executed contract (b) executory contract
(c) unilateral contract (d) none of the above
104. A contract in which, under the terms of a contract, one or both the parties have still to
perform their obligations in future is known as
(a) executed contract (b) executory contract
(c) unilateral contract (d) none of the above
105. The unpaid seller can exercise his right of lien over the goods for
a) price of goods b) storage charges
c) any lawful charges d) all of these
107. An unlawful act by which an intending purchaser is prevented from bidding or raising the
price at an auction sale is known as
a) decoy ducking b) puffering
c) damping d) none of these
109. Which of the following rights are available to the unpaid seller against the buyer
a) suit for price b) suit for interest
c) suit for repudiation d) all of these
110. Delivery of the key of the warehouse by the seller to the buyer will amount to
a) Actual delivery b) Symbolic delivery
c) Constructive delivery d) None of these
111. In case the buyer rejects the whole quantity of goods due to short delivery or excess
delivery, the contract is treated as
a) subsisting b) cancelled
c) void d) invalid
118. The goods which are to be produced by the seller after the contract of sale is made are
known as
(a) contingent goods (b) unascertained goods
(c) future goods (d) none of the above
119. Where money is exchanged by one person for some money with another person, the
transaction is known as
(a) barter (b) exchange
(c) money sale (d) none of the above
Business Regulations Page 12
School of Distance Education
120. A Sale of Goods under the Sale of Goods Act, 1930 includes
(a) a jus in personam (b) a jus in rem
(c) both (a) & (b) (d) neither (a) & (b)
121. Where no price is fixed by express agreement, the buyer shall pay the seller
(a) lowest price (b) reasonable price
(c) suitable price (d) adhoc price
136. In contract through sea route, where the seller has to put the goods on board a ship at his
own expenses, the contract is known as
(a) CIF contract (b) FOB contract
(c) board obligatory contract (d) ex-ship contract
137. In a contract through sea route where the seller has to deliver the goods to the buyer at the
port of destination
(a) FOB contract (b) CIF contract
(c) ex-ship contract (d) destination contract
138. The remedies available to a person, suffering from the breach of contract are
(a) suit for damages (b) suit for injunction
(c) quantum meruit (d) all of the above
139. Where the court orders the defaulting party to carry out the promise according to the terms
of the contract, it is called as a/an
(a) quantum meruit (b) rescission
(c) injunction (d) specific performance
140. _________ means an order of the court restraining a person from doing what he promised
not to do
(a) quantum meruit (b) rescission
(c) specific performance (d) injunction
141. Quantum meruit means
(a) a non-gratuitous promise (b) as gratuitous promise
(c) as much as is earned (d) as much as is paid
142. When a person has done some work under a contract and the other party repudiates the
contract, then the party who performed the work can claim remuneration for the work done.
This is based on the principle of
(a) rescission (b) quantum meruit
(c) injunction (d) specific performance
143. X contract to deliver 1000 bags of wheat at Rs. 100 per bag on a future date. On the due
date, he refuses to deliver. The market price on that day is Rs. 120 per bag. Which damages
can be granted by the court
(a) Ordinary damage (b) Special damage
(c) Remote (d) Vindictive damage
144. Hadley versus Baxendale case is a leading case on
(a) the breach of implied term (b) the anticipatory breach
(c) the remoteness of damages (d) the bilateral mistake of fact
145. Exemplary damage is also known as
(a) a vindictive damage (b) a punitive damage
(c) a direct damage (d) either (a) or (b)
146. Vindictive damages have been awarded
(a) for a breach of the promise to marry (b) for a wrongful dishonour of a cheque
(c) either (a) or (b) (d) neither (a) nor (b)
147. Liquidated damages means an amount of the _________ that may result from the breach of
contract
(a) actual loss (b) loss suffered
(c) pre-estimated probable loss (d) pre-estimated actual loss
148. A stipulation for increased interest from the date of default is known as
(a) a compensation (b) a penalty
(c) liquidated damages (d) damages
149. A quasi-contract
(a) is a contract (b) is an agreement
(c) has only a legal obligation (d) is not any of these
150. Claim for necessaries supplied to a person incompetent to contract, from the property of
such person. It is covered under the concept of
(a) quasi-contract (b) caveat emptor
(c) contingent contract (d) wagering agreement
152. A contract in which one person promises to compensate the other for the loss suffered by
him, due to the conduct of the promisor or of any other person, is known as
(a) contract of indemnity (b) quasi-contract
(c) contract of guarantee (d) none of these
153. The party who gives the indemnity is known as
(a) the indemnity-holder (b) the indemnifier
(c) the surety (d) the principal debtor
154. A contract in which a person promises to discharge the liability of another person, in case of
default by such person, is known as a
(a) quasi-contract (b) contract of indemnity
(c) contract of guarantee (d) none of the above
155. In a contract of guarantee, a person who promises to discharge another’s liability is known
as
(a) the principal debtor (b) the creditor
(c) the indemnified (d) the surety
156. Liability of the surety is
(a) coextensive with the principal debtor (b) primary with the principal debtor
(c) secondary to the principal debtor (d) all of these
157. A surety is discharged from the liability by
(a) revocation notice by surety (b) material alteration in terms
(c) discharge of principal by the creditor (d) all of the above
158. The delivery of goods by one person to another for some specific purpose is known as a
(a) bailment (b) pledge
(c) pledge (d) mortgage
159. The delivery of goods by one person to another as a security for the repayment of a debt is
known as a
(a) bailment (b) hypothecation
(c) pledge (d) mortgage
160. Which of the following persons does not have a right of general lien?
(a) Bankers (b) Wharfingers
(c) Finder of goods (d) Factors and policy brokers
161. X lent his car to his friend Y for two days without any charges. It is a
(a) non-gratuitous bailment (b) gratuitous bailemnt
(c) hypothecation (d) beneficial bailment
162. Under the pledge, the person who pledges is known as a pledgor and the bailee is known as a
(a) bailor (b) bailee
(c) pledgee (d) pledgor
163. Out of following, which is/are duty of a bailee?
(a) To take care (b) To take a reasonable care
(c) To sell the goods (d) To retain the goods
164. Out of following, which is/are rights of a bailee?
(a) To indemnify
(b) To claim necessary expenses
(c) To delivery of goods to any one of the joint bailor of the goods
(d) All of the above
165. A person appointed to contract on behalf of another person is known as a/an
(a) principal (b) agent
(c) independent contractor (d) servant
166. A mercantile agent to whom the possession of the goods is given for the purpose of selling
the same is known as a/an
(a) broker (b) factor
(c) commission agent (d) insurance agent
167. Which of the following is not a right of the agent?
(a) Right of lien (b) Right to be indemnified
(c) Right to remuneration (d) Right to make secret profits
168. A person appointed by the original agent to act in the business of the agency but under the
control of the original agent is known as a/an
(a) agent (b) sub-agent
(c) substituted agent (d) del credere agent
169. Where the agent contracts for a principal, who is not competent to contract, in such a case
the agent is
(a) personally liable (b) exceeding authority
(c) not personally liable (d) none of these
170. Substituted agent is appointed by whom?
(a) Government (b) Court
(c) Principal (d) Agent
171. What is the name given to an agency which cannot be terminated?
(a) Revocable agency (b) Irrevocable agency
(c) Agency for a single transaction (d) Agency created in necessity
172. A surety is NOT discharged from his liability:
(a) if terms of contract are varied without his consent.
(b) if the creditor gives time to the principal debtor without his consent.
(c) if the creditor releases the other co-surety.
(d) if the creditor releases the principal debtor.
181. District Forum shall have same power as are vested in the _________
(a) civil court (b) fast track court
(c) criminal court (d) special court
187. A market comprising the area in which the conditions of competition for supply of goods
known as:
(a) Relevant Product Market (b) Relevant Geographic Market
(c) Relevant Market (d) None of these
188. Commission shall maintain proper accounts and other relevant records and prepare an
annual statement of accounts under section.
(a) 51 (b) 53
(c) 54 (d) 52
190. All of the following are the power and functions of commission EXCEPT?
(a) Power to award compensation (b) Power to review its own orders
(c) Inquiring into certain agreements (d) Power to reject the orders
193. Which of the following is not come under the definition of ‘Information’ under RTI Act,
2005
(a) Log books
(b) File notings
(c) Data material held in any electronic form
(d) Circulars
195. Under voluntary disclosure of information, every public authority shall publish
different prescribed types of information on their website within ____ days of an enactment
(a) 30 (b) 60
(c) 90 (d) 120
196. As per RTI Act, a body established, owned, funded, controlled by Central Govt / State
Govt / UT is called a ________ .
a) Information Commission
b) RTI Cell
c) Public authority
d) CPIO
197. If the applicant had to submit the RTI application to the APIO, he should be provided
information within ___ days from the date of receipt of application by the APIO
a) 45 b) 90
c) 35 d) 30
200. An employee who assists the PIO in providing information to the applicant is called
a) Deemed PIO b) Assistant PIO
c) Appellate authority d) Information Commissioner
Answers
1) c 22) d 43) d 64) a 85) d 106) a 127) d 148) d 169) a 190) d
2) c 23) b 44) d 65) a 86) a 107) c 128) d 149) d 170) c 191) d
3) a 24) a 45) a 66) c 87) b 108) a 129) c 150) a 171) b 192) a
4) c 25) c 46) c 67) b 88) a 109) d 130) a 151) c 172) c 193) b
5) c 26) c 47) b 68) a 89) c 110) b 131) c 152) a 173) c 194) c
6) a 27) a 48) a 69) a 90) a 111) a 132) d 153) b 174) b 195) d
7) c 28) d 49) d 70) c 91) a 112) a 133) d 154) c 175) d 196) c
8) a 29) c 50) c 71) d 92) b 113) b 134) a 155) d 176) c 197) c
9) d 30) c 51) a 72) b 93) c 114) d 135) b 156) a 177) d 198) c
10) c 31) c 52) a 73) d 94) c 115) d 136) b 157) d 178) d 199) d
11) a 32) d 53) c 74) b 95) b 116) b 137) c 158) a 179) c 200) a
12) a 33) a 54) a 75) a 96) b 117) a 138) d 159) c 180) d
13) c 34) b 55) a 76) d 97) a 118) c 139) d 160) c 181) a
14) a 35) d 56) a 77) b 98) b 119) b 140) c 161) b 182) d
15) d 36) d 57) a 78) c 99) c 120) b 141) c 162) c 183) b
16) b 37) c 58) d 79) c 100) c 121) b 142) b 163) b 184) d
17) b 38) b 59) d 80) a 101) b 122) d 143) a 164) d 185) c
18) b 39) a 60) d 81) c 102) d 123) c 144) c 165) b 186) a
19) a 40) a 61) b 82) d 103) a 124) b 145) d 166) b 187) b
20) c 41) d 62) d 83) c 104) b 125) b 146) c 167) d 188) d
21) c 42) d 63) d 84) c 105) a 126) c 147) c 168) b 189) a
Prepared by:
Sudheesh S,
Assistant Professor in BBA,
SDE, University of Calicut
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