Differentiate between illegal and void agreements.
4.
X gives a loan of Rs. 80,000 to Y. Z gives a guarantee for Rs. 30,000 only. If Y makes a default then Z would be liable to how much amount? Answer by giving reasons.
5.
Enlist the contents of a consumer complaint.
6.
Discuss in brief annual general meeting.
7.
"Ratification must be done within a reasonable time." Critically evaluate the sentence.
8.
Write a short note on crossed cheque.
Section II: Objective Questions Multiple Choice Single Response 1.
2.
3.
If the evidence proving the existence of a contract is lost, the contract stands 1] Profitable to one party 2] Beneficial to the parties 3] Operated by Law 4] Terminated Where a person lawfully does anything for another person, not intending to do gratuitously and other person enjoys the benefit, the latter is bound to make the former 1] Compensation 2] Reward 3] Payment by mistake 4] Money X,Y,Z are under a joint promise to pay Rs. 6000/- to Mr. A. X is compelled to pay the whole amount of Rs. 6000/- to Mr. A. X can recover contribution of Rs. 2000/from 1] Both Y and Z 2] Both Z and X 3] Y only
SYMBIOSIS CENTRE FOR DISTANCE LEARNING (SCDL) Subject: Business Law 4] Z Only The liability of partner in profits vis-a-vis to the third party remains 4. 1] Unlimited 2] Concerned 3] Limited 4] Short Certain documents are required to be stamped properly and registered for the 5. 1] Necessity 2] Legal enforceability 3] Requirement 4] Need In case of fraud &wilful wrong by the sub-agent 6. 1] The sub-agent is directly liable to the agent 2] The sub-agent & the agent both are liable to the principal 3] The sub-agent is directly liable to the principal 4] All of the above A contract of guarantee has been defined. 7. 1] Under section 123 2] Under section 124 3] Under section 125 4] Under section 126 The bank with which a person is having an account is known as 8. 1] Collecting Bank 2] Negotiating bank 3] Debit Bank 4] Credit Bank Cheque is always drawn on 9. 1] endorsee 2] payee 3] drawer 4] banker 10. Every company must have 1] A Specific name 2] A name resembling with other name 3] Common name 4] Identical name Multiple Choice Multiple Response 11.
12.
The consideration of an agreement is lawful unless it is? 1] Forbidden by Law 2] Given in cash 3] Fraudulent 4] Involves an injury to the person The rules relating to the place of delivery are? 1] Goods must be delivered in business hour when a specific place is mentioned in the agreement 2] Where no place is mentioned the goods be sold at the place they are at the time of sale
SYMBIOSIS CENTRE FOR DISTANCE LEARNING (SCDL) Subject: Business Law 3] If the goods are not in existence the goods must be delivered at the place of their production 4] The goods must be delivered at residence of buyer in absence of any specific place is not mentioned 13. Implied condition by sample, in the case of contract of sale means? 1] Bulk shall correspond with the sample in quality 2] Buyer shall have reasonable opportunity of comparing the bulk with the sample 3] Goods shall be free from any defect 4] Sometimes packing of goods may be the part of description 14. Appropriate laboratory means a laboratory or organisation 1] Recognised by the Central Government 2] Established by any law for the time being in force 3] Recognised by a State Government 4] Recognised by a private organisation 15. The Articles of Association are subsidiary to 1] Firms Act 2] Companies Act 3] Certificate of Registration 4] Memorandum of Association 16. The Prospectus is 1] A document for raising share capital 2] Notice to the subscriber 3] Issued to invite the subscription to the securities of company 4] Invitation made to individual 17. A seller cannot convey a better title to the buyer than he himself has'. Exceptions to this general rule are 1] If sale is by a person not the owner by estoppel 2] If sale is by a mercantile agent 3] If sale is by one of joint owner 4] If sale is by the true owner 18. A partner is liable to be punished if he furnishes any particular, which he 1] Knows to be false 2] Known to be incomplete 3] Believes to be correct 4] Does not believe to be true Fill in the Blanks 19.
20.
In the event of the death of the promisor, the promisee can compel the____________ to perform the promise 1] Legal representative of the promisor 2] Promisor 3] Relative of the promisor 4] Friend of the promisor Unilateral mistake is not allowed as a ____________ to avoid contract 1] Defence 2] Possession
SYMBIOSIS CENTRE FOR DISTANCE LEARNING (SCDL) Subject: Business Law
21.
22.
23.
24.
25.
26.
27.
28.
3] Refusal 4] Mistake One man holds practically the ____________ of the share capital of the one person company. 1] Whole 2] Half 3] Quarter 4] Partial A without Bus authority, borrows from C for B. B takes objection to this transaction but afterwards pays interest to C as agreed upon. Bus conduct implies ____________ of the loan. 1] Ratification 2] Revocation 3] Payment 4] Discharge An offer lapses because of subsequent illegality or ____________ of subject matter. 1] Division 2] Destruction 3] Waive off 4] Continuity The minimum number of persons required to form a public company is ____________ 1] Seven 2] Six 3] Five 4] Two The seller has no right to ____________ even though the goods are in his possession, after the sale. 1] Retain 2] Resell 3] Destroy 4] Damage An agreement entered into with a minor is __________ but not illegal. 1] Formal contract 2] Executed contract 3] Void contract 4] Implied contract A contract of present sale of future goods purports to operate as an ____________ and not sale 1] Agreement to sell 2] Agreement to resale 3] Agreement to reset 4] Agreement to purchase Agreements which are not ____________ on the parties do not constitute contract 1] Binding 2] Positive 3] Comprehensive 4] Focusing
SYMBIOSIS CENTRE FOR DISTANCE LEARNING (SCDL) Subject: Business Law
State True or False 29.
A partnership firm must get registered before its commencement?
30.
Acceptance is a consent given by the promisee.
31.
A contract of insurance is a contract of indemnity.
32.
Memorandum is adopted to control internal operations of the company.
33. 34.
The Chairman of the Central Council will be The Minister -in - Charge of Department of Civil Supplies Parties to the agreement must be of same mind upon the same subject
35.
The change of name shall affect all the rights and obligations of the company.
36.
A bill of exchange is always drawn on a specified bank
37.
In each consumer dispute the State Commission is the final authority
38.
An agreement of social, moral, religious nature contemplated legal relationship.
Match the Following 39.
1] Termination of the relationship between the parties to a contract 2] Transfer of rights and benefits under a contract 3] Each party has to perform his promise without waiting for the performance by the other party. 4] Promises to be performed simultaneously
1] Discharge of a contract 2] Assignment 3] Mutual and Independent promises
4] Mutual and Concurrent promises 5] Damages agreed upon 6] Breach of a contract
40.
1] Commercially saleable goods of such quality and under the description by which they are known in the market 2] Caveat Emptor 3] Delivery 4] Actual delivery
1] Merchantable quality
2] Let the buyer beware 3] Voluntary transfer of possession of goods from one person to another person 4] Physical delivery 5] Contract of sale 6] Breach of condition
SYMBIOSIS CENTRE FOR DISTANCE LEARNING (SCDL) Subject: Business Law 41.
1] A contract entered with Pardanashin woman who observes complete seclusion of the custom 2] Contract caused by a mistake as to any law in force in India 3] Criminal offence 4] No relationship between promisor and promisee
1] Presumed to have been entered by undue influence 2] Contract not voidable 3] Fraud 4] Coercion
5] Performance at proper time 6] Dependent promises 42.
1] Documents required for opening an account 2] Reason for dishonour 3] Notice sent by registered post, not claimed 4] Dishonour of cheque
1] PAN Card, Address proof, Photographs 2] Failure to present the cheque in bank within validity period of the cheque 3] Deemed to be proper service 4] Section 138 5] Section 168 6] No delivery
