Chapter 1: Indian Contract Act 1872: Also Refer To This Link For MCQ
Chapter 1: Indian Contract Act 1872: Also Refer To This Link For MCQ
Chapter 1: Indian Contract Act 1872: Also Refer To This Link For MCQ
Department of Commerce
4. Every promise and every set of promise forming the consideration for each other is a/an
(a) contract.
(b) agreement.
(c) offer.
(d) acceptance.
Answer: (b) agreement.
8. In agreements of a purely domestic nature, the intention of the parties to create legal
relationship is
(a) to be proved to the satisfaction of the court.
(b) presumed to exist.
(c) required to the extent of consideration.
(d) not relevant at all.
10. A makes a contract with B to beat his business competitor. This is an example of
(a) valid contract.
(b) illegal agreement.
(c) voidable contract.
(d) unenforceable contract.
13. Which of the following is false with respect to minor entering a contract?
(a) An agreement with or by a minor is void ab initio
(b) A minor can be a beneficiary of a contract
(c) The contracts involving a minor as a beneficiary may be enforced at the option of the third
party
(d) A minor cannot ratify a contract on attaining majority
Answer: (c) The contracts involving a minor as a beneficiary may be enforced at the option
of the third party.
14. Drawing cash from ATM, sale by fall of hammer at an auction sale, etc., are example of
(a) express contract.
(b) implied contract.
(c) tacit contract.
(d) unlawful contract.
16. A/an …………… is every Promise and every set of promises , forming
consideration for each other
(a) Offer
(b) Agreement
(c) Acceptance
(d) Transaction
20. Agreement is defined by the section ............... of the Indian Contract Act, 1872.
(a) Section 2(c)
(b) Section 2(e)
(c) Section 2(g)
(d) Section 2(i)
21. As per section 2(e) of the Indian Contract Act, “Every Promise and every set of promise
forming the consideration for each other is a/an
(a) Contract
(b) Agreement
(c) Offer
(d) Acceptance
23. Goods displayed in a Shop window with a price label will amount to:
(a) Offer
(b) Acceptance of offer
(c) Invitation to offer
(d) Counter offer
27. A tender is
(a) an offer
(b) invitation to an offer
(c) acceptance of offer
(d) none of the above
2. The sale of goods Act deals only with goods which are ______________ in nature
a. Immovable b.Movable c. Specific d. All of the above
Answer: (b).Movable
3. 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
Answer: (b).Warranty
Answer: ( c ). property
9. 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
Answer: ( c ). Executed
11. 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
12. In Agreement to sell 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 b & c
Answer: ( c ). In a future Date
13. Which of the following is not a subject matter in a Sale of goods Act
a. Trade mark b. Good will c. Money d. Water
Answer: ( c.) Money
14. As per Sale of goods Act Movable goods does not include
a. Gas b. Growing crop c. Electricity d. Money
Answer: ( d ). Money
15.The goods must be ________ goods for transferring the property in the goods
a. Ascertained b. Unascertained c. Future d. All of the above
Answer: (a). Ascertained
21. 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
Answer: ( d ). Ownership
22. In contract of sale the payment of price is __________ to the transfer of property in goods
a. concurrent b .important c. mandatory d. immaterial
Answer: (d). immaterial
25. A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer
the property in goods to the buyer for ___________
a. price b. interest c. credit d. value
Answer: ( a.) price
26. In sale in case of loss of goods, the loss will fall on the _____________
a. offeror b. buyer c. seller d. surety
Answer: ( b ). buyer
27. In sale after the sale is done, the goods are in the possession of the seller, , in case of loss
of goods, the loss will fall on the _________
a. offeror b. buyer c. seller d. surety
Answer: ( b ). buyer
28. 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
Answer: ( a ). B
29. In case of Sale the risk is associated with___________________
a. money b. goods c. ownership d. possession
Answer: ( c ). Ownership
30. In case of sale the seller can sue the buyer for _________ in case of breach
a. damages b. price c. interest d. fraud
Answer: ( b ). Price
31. In case of agreement to sell the seller can sue the buyer for _________ in case of breach
a. damages b. price c. interest d. fraud
Answer: ( c ). Interest
33. Which of the below said is not included in goods as per Sale of goods Act 1930
a. forming part of the land b. stocks
c. Actionable claims d. crop
Answer: ( c.) Actionable claims
39. Goods identified and agreed upon at the time a contract of sale is made is called
a. Ascertained b. Specific c. both a & b d. Nor a neither b
Answer: ( c ). both a & b
2. Minimum number of members required to apply for incorporation certificate in a public ltd
company is
a. 3 b. 2 c. 7 d. 50
Answer: ( c ). 7
3. The application for registration of a company should be presented to the registrar of the
state in which the _______________ of the company is to be situated
a. Manufacturing plant b. first branch
c. business office d. any of the above.
Answer: ( c ). business office
6. The address of the registered office of the company must be notified to the registrar within
_________ days of registration, if it is not done at the time of incorporation
a. 15 b. 30 c. 60 d. 45
Answer: ( b.) 30
7. Among the following which documents are not mandatory to be submitted to the registrar
along with incorporation application by a private company.
a. Address of Registered office & undertaking
b. Undertaking and statement of capital
c. statement of capital & list of directors
d. list of directors and statement of capital
Answer: ( a ). Address of Registered office & undertaking
8. A statement of nominal capital must be given at the time of incorporation by the company
when the share capital is less than
a. 50 Lakh b. 1 crore c. 10 Lakh d. 25 Lakh
Answer: ( d ). 25 Lakh
9. If the proposed nominal capital is more than 25 lakh at the time of incorporation then the
company needs to submit ________________ along with the application
a. statement of capital b. certificate of incorporation
c. certificate of capital d. certificate of incorporation
Answer: ( c.) certificate of capital
12. The company will be considered as separate person and different from its members from
the date (when the) _____________
a. start of business b. Apply for registration
c. receive incorporation certificate d. mentioned in certificate
Answer: ( d.) mentioned in certificate
15. If a company is instructed to change its name which resembles the name of an existing
company then the company can change the name by
a. Passing a special resolution b. obtaining permission from central government
c. Passing an ordinary resolution d. Both a & b
Answer: ( c ). Passing an ordinary resolution
17. When the registered office of a company is changed within a city then it has to be
intimated to the registrar within ________ days of such change
a. 60 b. 45 c. 30 d. 7
Answer: ( c ). 30
18. “Men may come and men may go but the company exist”- this explains which
characteristics of the company as per companies Act 1956
a. Separate legal entity b. Perpetual Succession
c. Capacity to sue d. None of the above
Answer: ( b ). Perpetual Succession
21. _________ are the company created by special act of the legislature
a. Registered company b. Public Ltd Company
c. Private ltd company d. Statutory company
Answer: ( d ). Statutory company
22. A private company means a company which has a minimum paid up capital of Rs.———
—-
a. 1,00,000 b. 5,00,000 c. 50,00,000 d. none of the above
Answer: ( a ). 1,00,000
23. A private company means a company which has a minimum paid up capital of Rs.———
—-
a. 1,00,000 b. 5,00,000 c. 50,00,000 d. none of the above
Answer: ( b ). 5,00,000
24.___________ cannot give invitation to the public to subscribe for any shares in or
debentures of the company
a.Subsidiary company b. Statutory Company
c. Private company d. Registered company
Answer: ( c ). Private company
25. A Government Company means any company in which not less than 51% of the paid-up
share capital is held by
a. Central Government b. State government
c. Both a & b d. Neither a nor b
Answer: ( c ). Both a & b
26. . A copy of the ________________ must accompany each from of application for shares
offered to the public.
a. Memorandum of association b. Prospectus
c. Articles of association d. None of the above
Answer: ( b ). Prospectus
27. If the company can make arrangements for raising the capital privately so that pubic
appeal is unnecessary, the company is required to prepare a _________________
a. Prospectus b. statement in lieu of Prospectus
c. certificate of Prospectus d. none of the above
Answer: ( b ).. statement in lieu of Prospectus
28. The Prospectus must be issued to the public within ______________ days of its date
a. 30 b. 60 c. 90 d. 100
Answer: ( c ). 90
29._______________ capital means the sum mentioned in the capital clause of Memorandum
of Association
a. Full capital b. Maximum capital
c. share capital d. Nominal Capital
Answer: ( d.) Nominal Capital
30. Par value of shares means the __________ value of the shares
a. Actual b. face c. Market d. dividend
Answer: ( b ). Face
31. The dividend payable to ___________ share holders is payable on fixed figure or percent
a. Equity b. non preference c. Preference d. all of the
above
Answer: ( c ).. Preference
32._____________ share capital has priority both in repayment of dividend as well as capital.
a. Equity b. non preference c. Preference d. all of the
above
Answer: ( c ).. Preference
33__________ means the total amount of called up share capital which is actually paid to the
company by the members
a. nominal capital b. reserve capital c. called up capital d.
Paid-up capital
Answer: ( b ). reserve capital
34. __________ means the total amount of called up capital on the shares issued and
subscribed by the shareholders on capital account.
a. Called-up capital b. subscribed capital
c. nominal capital d. Paid-up capital
Answer: ( a ). Called-up capital
35. For example Par value is Rs10 and it is issued at Rs15 then Rs5 is the ___________
amount
a. Profit b. Market value c. dividend d. premium
Answer: ( d ).. premium
36. Powers, rights, remuneration, qualification and duties of directors are discussed clearly in
a. Memorandum of Association b. Articles of Association
c. Prospectus d. none of the above
Answer: ( b ). Articles of Association
37. A company is known as the _______company of another company if it has control over
that other company.
a. subsidiary b. holding c. controlling d. statutory
Answer: ( b ). holding
38. A person cannot hold directorship in more than ____ public companies
a. 3 b. 10 c. 20 d. 7
Answer: ( c ). 20
39.Private company prohibits any invitation or acceptance of deposits from persons other
than its ___________
a. Members b. directors c. Partners d. banks
Answer: ( a ). Members
40. The company needs to obtain prior permission from central government when it changes
the address of its registered office from
a. one city to another city b. with in the same city
c. one state to another d. one country to another country
Answer: ( c ). one state to another
1. The things carried out by means of electronic data interchange, and other means of
electronic communication is commonly referred to as
a. e-communication b. e- governance c. e- record d. e-commerce
Answer: ( d ). e-commerce.
2. The authentication to be affected by use of asymmetric crypto system and hash function is
known as
a. Public key b. Private Key c. Digital Signature d. e- governance
Answer: ( c ). Digital Signature
7. The Central Government may appoint a __________ of Certifying Authority who shall
exercise supervision over the activities of Certifying Authorities
a. commissioner b. Controller c. executive d. president
Answer: ( b ). Controller
8. __________ means a person who has been granted a license to issue a Digital Signature
Certificate.
a. controller b. Certifying Authority c. certified issuer d. licensed
authority
Answer: ( b ). Certifying Authority
9. The Certifying Authority empowered to issue a Digital Signature Certificate shall have to
procure a license from the ____________ to issue Digital Signature Certificates.
a. Controller of Certifying Authority b. Central government
c. state government d. commissioner
Answer: ( a ). Controller of Certifying Authority
10. _________ is a person in whose name the Digital Signature Certificate is issued
a. certified authority b. subscriber c. holder d. controller
Answer: ( b ). subscriber
11. The ___________ has the power to suspend or revoke Digital Signature Certificate.
a. Commissioner b. Certifying Authority c. subscriber d. controller
Answer: ( b ). Certifying Authority
12. As per Information Technology Act 2000, if you Fails to maintain books of accounts you
will be penalized upto
a.5000 per day b. 50000 c. 25000 d. 1,50,000
Answer: ( c ). 25000
13. As per Information Technology Act 2000,Those who Fail to furnish documents will be
penalized upto
a.5000 per day b. 50000 c. 25000 d. 1,50,000
Answer: ( d ). 1,50,000
Q.1 The Right to information Act was has been passed in the year-----------------------.
A) 2007 B) 2005 C) 2008 D) 2014
Answer: ( b ). 2005
3. Which of the following is not come under the definition of 'information' under RTI Act
2005?
(a) Log books (b) File noting‟s
(c) Data material held in any electronic form (d) Circulars
Answer: ( b ). File noting’s
4. The officer designated by the public authorities in all administrative units or offices under
it to provide information to the citizens requesting for information under the Act is know as
(a) Appellate Authority (b) Chief Information Commissioner (CIC)
(c) Public Information Officer (PIO) (d) Assistant Public Information Officer
Answer: ( c ). Public Information Officer (PIO)
5 .What is the time limit to get the information under RTI Act 2005?
(a) 15 days (b) 45 days
(c) 60 days (d) 30 days
Answer: ( d ). 30 days
6. What is the time limit to get the information concerning the life and liberty of a person?
(a) 48 hours (b) 24 hours
(c) 5 days (d) 10 days
Answer: ( a ). 48 hours
7 .If the interests of a third party are involved in information sought for, the maximum time
limit to get the information will be
(a) 30 days (b) 40 days
(c) 45 days (d) 60 days
Answer: ( b ). 40 days
8 .If information sought has been supplied by third party or is treated as confidential by that
third party, the third party must be given a representation before the PIO in reply to the notice
issued to him within ------ days from the date of receipt of such notice.
(a) 5 days (b) 15 days
(c) 10 days (d) 7 days
Answer: ( c ). 10 days
10. First appeal to the first appellate authority can be preferred by the applicant within -------
- days from the expiry of the prescribed time limit or from the receipt of the decision from the
PIO
(a) 30 days (b) 45 days
(c) 60 days (d) 90 days
Answer: ( a ). 30 days
11 .First Appeal shall be disposed of by the first appellate authority within ------ days from
the date of its receipt.
(a) 40 days (b) 30 days
(c) 60 days (d) 50 days
Answer: ( b ). 30 days