Legal Aspects of Business Scanner 2019 December

1. Which one of the following is a void contract?
   (a) Unilateral contract
   (b) A contract which ceases to be enforceable by law
   (c) Implied contract
   (d) Express contract
2. The indemnity holder is NOT entitled to:
   (a) All damages which he may be compelled to pay in any suit in respect of any matter to which the promise applies
   (b) All costs that he may be compelled to bear in defending any such suit
   (c) All sums that he may have paid under the terms of any compromise of such suit
   (d) Damages for liability incurred which is not absolute
3. According to Sale of Goods Act, which two of the following are defined as ‘goods’?
   (i) Movable property
   (ii) Growing crops
   (iii) Actionable claims
   (iv) Book debt
   Choose the correct answer from the following options:
   (a) (i) and (iv)
   (b) (ii) and (iii)
   (c) (i) and (ii)
   (d) (iv) and (ii)
4. Which of the following is the odd one out?
   (a) Specific goods
   (b) Unascertained goods
   (c) Future goods
   (d) Ascertained goods
5. Which of the following are true about conditions according to the Sale of Goods Act?
   (i) Title
   (ii) Description
   (iii) Quite possession
   (iv) Encumbrances
   Choose the correct answer from the following options:
   (a) (i) and (iv) only
   (b) (ii) and (iii) only
   (c) (i), (iii) and (iv) only
   (d) (i) and (ii) only
6. Which one of the following relates to warranty?
   (a) It is of vital importance for completion of contract
   (b) If there is breach, the aggrieved party can repudiate the contract
   (c) It is essential to the main purpose of the contract
   (d) In case of breach, the aggrieved party can claim only damages
7. Which of the following is NOT a presumption about a negotiable instrument?
   (a) Date
   (b) Consideration
   (c) Stamp
   (d) Absolute and good title to the transferee
8. Who are the parties to a cheque?
   (i) Drawer
   (ii) Payee
   (iii) Acceptor
   (iv) Holder
   Choose the correct answer from the following options:
   (a) (i) and (ii) only
   (b) (i), (ii) and (iv) only
   (c) (i) and (iii) only
   (d) All of these (i), (ii), (iii) and (iv)
9. Match List I with List II
   List I
   (A) Transfer of ownership
   (B) Sale of goodwill after dissolution
   (C) Buy-back of securities
   (D) Promissory note
   List II
   (i) Negotiable Instrument
   (ii) Contract of sale of goods
   (iii) Dissolution of partnership firm
   (iv) Share capital of company
   Choose the correct option from those given below:
   (a) (A) – (ii); (B) – (iii); (C) – (iv); (D) – (i)
   (b) (A) – (iii); (B) – (iv); (C) – (ii); (D) – (i)
   (c) (A) – (iv); (B) – (ii); (C) – (i); (D) – (iii)
   (d) (A) – (i); (B) –(ii); (C) – (iii); (D) – (iv)

Answer Key