CBSE Questions for Class 11 Commerce Legal Studies Classification Of Law Quiz 5 - MCQExams.com

Every duty enforceable by law is called ______________.
  • Accountability
  • Obligation
  • Burden
  • Incidence
Legal Principle: Even if the sovereign functions of the state are discharged negligently the state is not vicariously liable in tort.
Factual Situation: 'A' was a trader in gold. He was arrested by the police and was detained in the police lock up after search. The gold with him along with sundry other things were seized. Later he was discharged. His possessions seized by the police were returned, except the gold. He moved the state against tort. In the words of Supreme Court, 'There can be no escape from the conclusion that the Police Officers were negligent in dealing with the property after it was seized.' One of the constables was a Muslim. He fled with gold to Pakistan.
  • 'A' succeeded because the servants of the state were negligent and thus caused injury
  • 'A' failed because the constable who seized the gold had fled to Pakistan and the gold was not with the state at all
  • 'A' failed because the acts of search and seizure by the police officer were part of the sovereign function of the State
  • There was some other relief given to 'A'
Legal Principle: Ignorance of law is not an excuse in India with the practice that every person in India should be acquainted with the law of land.
Factual Situation: Mr. Jackson, a foreigner, came to Delhi in the winter season. He saw the people in Delhi set fire on roadside during the night and get their body warm. One night he came out of his hotel and asked two labourers to cut down a dry three in Pandara Road and when they agreed he paid them Rs. $$150$$ for cutting down the tree. They cut and made the log into small pieces and the foreigner along with the tree cutters set fire and got their body warm. After some time, the police patrol car watched it and arrested the foreigner and two labourers on the spot. The foreigner pleaded that the tree was dry and he did not know that cutting of tree from roadside is an offence in India.
  • The foreigner shall not be responsible for the offence because he himself has not cut the tree but got is cut through Indian people
  • The foreigner shall be punished because in India cutting of tree from roadside is an offence
  • The presence that he does not know such act is an offence is not an excuse for a foreigner also
  • Both (b) and (c)
Where s the headquarters of World intellectual Property Organization located?
  • Geneva
  • colonmbo
  • New Delhi
  • Paris
In which year did World Intellectual Property Organization become a UN Specialized Agency?
  • 1975
  • 1974
  • 1976
  • 1979
A contingent contract is __________.
  • void
  • voidable
  • valid
  • illegal
A promise made without the intention of performing it amounts to _______________.
  • innocent misrepresentation
  • fraud
  • negligent misrepresentation
  • wrongful misrepresentation
An agreement to share the benefit of public office is __________.
  • valid
  • voidable
  • void
  • none of the above
A promise to give money or moneys worth upon the determination or ascertainment of an uncertain events is called a __________.
  • lottery
  • wager
  • debt
  • contract
Past consideration means _________________.
  • Money received in the past without making even a proposal
  • The price which is more than the promisor s expectation
  • The price said or service rendered at the desire or request of the promisor followed by a subsequent promise
  • None of the above
A party to a contract can be discharged for performing it, if it has become _________________.
  • Expensive
  • Onerous
  • Commercially Inviable
  • Impossible
P offers to sell his car to Q for Rs. 50,Q agrees to buy the car offering Rs. 45,000 the reply of Q amounts to __________.
  • offer
  • counter offer
  • invitation to an offer
  • standing offer
Which of the following constitutes an offer in a self-service store?
  • Display of goods at the shop window
  • When the customers asks for some goods
  • There is no offer in such cases
  • Picking up an article and approaching the cashiers desk for payment
A person who sues for damages under the law of contract _______________________.
  • is entitled to recover the agreed amount of compensation for the loss suffered
  • is not entitled to recover the agreed amount of compensation for the loss suffered
  • is entitled to recover half amount of compensation
  • is entitled to recover the agreed amount of compensation by proving the exact loss suffered
Exemplary damages is related to __________________.
  • damages awarded to set an example
  • damages for loss arising out of special circumstances
  • damages fixed by the court in ordinary circumstances
  • none of the above
Ramu applied for the post of director in an organisation. The governing body of the organization passed a resolution appointing him to the post. After the meeting, one of the members of the governing body informed him privately of the resolution. Subsequently, the resolution was rescinded. Ramu claims damages. Which one of the following is the correct legal proposition in the case ? 
  • Ramu cannot claim damages as he had not resigned from his existing post in anticipation of getting the appointment letter.
  • Ramu cannot claim damages as there was no formal communication.
  • Ramu can claim damages as governing body cannot rescind the resolution once passed.
  • Ramu can claim damages as there was private communication.
Law of Contracts deals with _________________.
  • laws of ownership and transfer
  • property of actions
  • enforcement of obligations arising from agreements and promises
  • taxation
'A' agrees to pay Rs.5,000 to 'B' if it rains, and 'B; promises to pay a like amount to 'A' if it does not rain, this agreement is called ____________.
  • quasi contract
  • contingent contract
  • wagering agreement
  • voidable contract.
'A', by letter, offers to sell his house to 'B'for Rs.200,Without knowing of 'A's offer, 'B', by a letter, offers to buy the same house from 'A' for Rs.200,000.
  • no binding contract comes into existence as 'B's letter is merely a cross-offer
  • no binding contract comes into existence as consideration in this contract is insufficient
  • a binding contract comes into existence as 'B's letter is equivalent to acceptance of 'A's offer
  • the Indian Contract Act is silent on such issues
Promises forming consideration for each other are known as ________________.
  • independent promises
  • dependent promises
  • reciprocal promises
  • mutual promises
Anil entered into a contract with Subhash for sale and purchase of a horse which, at the time of entering into a contract, was dead without the knowledge of both the parties. As a result of this, Anil could not sell the horse as per the contract. Advise Subhash.
  • The contract is void for mistake, so Subhash cannot sue Anil for breach.
  • The contract is valid and Anil is liable for breach.
  • The contract is void for fraud and Subhash can recover damages from Anil.
  • The contract is voidable at the option of Subhash and he can ratify it to recover damages from Anil.
Consideration must move at the desire of _______________.
  • the promisor
  • the promisee
  • promisor or any third party
  • both promisor and the promisee
P, Q and R made a joint promote to give S, a sum of Rs.3,S recovered the whole amount from P. Q was declared insolvent and cannot give anything.Which statement out of the following is correct ? 
  • P cannot get anything from R.
  • P can cover Rs.1,000 from R.
  • P can recover Rs.1,500 from R.
  • P can recover Rs.2,000 from R.
What is the legal name for the name and fame of a trading firm?
  • Goodwill
  • Fame
  • Image
  • None of the above
'A', 'B' and 'C' jointly promised to repay Rs.90,000 to 'D'. Before performance of the contract, 'C' dies.Here the contract.
  • Becomes void on death of 'C'
  • Is valid against 'A' and 'B' only
  • Is voidable at the option of 'A' and 'B'
  • Is valid against 'A', 'B' and 'C's legal representatives
Legal Principle: A contract obtained by misrepresentation is voidable at the option of the buyer.
Factual Situation: Anand wants to sell his house. Anupama approaches him with an offer to buy the house and Anand shows her the house. The house is not in a very good condition and visibly requires repairs, without which it is unihabitable. Anand does not tell anything regarding the required repairs to be livable. Anupama purchases the house for a huge consideration. Later on when she wants to move in her things into the house to start living she realizes the heavy repairs that the house requires urgently. 
  • Anupama will not succeed because she has to be careful about what he is purchasing in all circumstances, unless the defects are concealed and cannot be seen or has been hidden.
  • Anupama will succeed because Anand knowingly sold the house and she should have informed Anupama about the condition of the house.
  • Anupama will succeed because she would never have purchased the house in case
  • A buyer always has the option to refuse performance of his part of the contract.
Legal Principle: A minor is not competent to enter into a contract and the law will assume that the contract never happened and everything will be returned to where it was. 
Factual Situation : X, a minor, misrepresents his age to enter into a contract with Y a seller of bicycles, to purchase the bicycles. After the bicycle was delivered to the minor, he refuses to pay the sale price for the same, contending the non-existence of a legally binding contract.
Is the contract entered by X a valid one ? 
  • The contract is valid because in this case, the minor has knowingly misrepresented his age in order to enter into the contract.
  • The contract is not valid because the buyer is a minor and the seller will get nothing.
  • The contract is not valid because the buyer is not competent to contract, but the minor. buyer may be directed by the court to return the bicycle.
  • The contract is not valid but the seller can file a suit against X's parents.
Legal Principle: When, at the desire of the promisor, the promisee or, any other person has done or abstained from doing, or does or obstains from doing, or promises to do or to abstain from doing, something, such act or abstinence or promise is called a consideration for the promise.
Factual Situation: There was a promise to pay to the vakil an additional sum if the suit was successful. Which of the following option answers the situation appropriately ? 
  • There is no consideration for the promise.
  • Suit is maintainable on further promise.
  • An advocate under vakalatnama could sue his client also
  • An advocate under vakalatnama could not sue his client.
Principle: A contract without consideration is void.When at the desire of one party the other party does something, the consideration is said to flow from the latter to the former.
Facts: A's house was on the fire and a child was trapped inside the house. Everyone was shouting for help. A brave onlooker hearing the shrieks of child, went inside the house and brought him out.The father of the child promised to pay the rescuer Rs.10,Subsequently, he backtracked his promise. The rescuer sued the father for the breach of promise. 
  • The father of the child must pay for the service rendered by the rescuer.
  • The rescuer is not entitled to the payment, since he acted on his own.
  • Commercial considerations cannot be applied to humanitarian instincts.
  • None of the above.
A contract produced by coercion is bad under Indian Contract Act. Coercion is defined as committing or threatening to commit any act forbidden by Indian Penal Code. Attempt to commit suicide is an offence under Indian Penal Code.
Facts: A wanted his wife B to part with some landed property given to her by her father. B resisted fearing that her husband would squander it away. A threatened her that is she does not sign the deed transferring the property to him (i.e., A), he would commit suicide. B signed the deed, Subsequently, she challenged the deed on the ground that the deed was bad under law.
  • The deed is valid under the law
  • The transfer of property is complete once the deed is entered between the owner of the property and the buyer.
  • The deed is not valid as it was signed under the threat of suicide by her husband which amounts to coercion and vitiates the contract.
  • Husband has a right over the property of the wife that was voluntarily transferred to the buyer.
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Practice Class 11 Commerce Legal Studies Quiz Questions and Answers