CBSE Questions for Class 12 Commerce Legal Studies Topics Of Law Quiz 10 - MCQExams.com

Where the consideration is an act of sexual immorality, the agreement is____.
  • Void
  • Unlawful
  • Immoral
  • All of the above
Coercion includes_____.
  • menace to goods
  • causing fear
  • physical compulsions
  • all of the above
If the object of an agreement is the performance of an unlawful act, the agreement is _______.
  • Unenforceable
  • Valid
  • Voidable
  • Enforceable
Section 23 provides that the consideration or object of an agreement is lawful unless______.
  • It is forbidden by law
  • It is of such nature that if permitted it would defeat the provisions of law
  • It is fraudulent
  • All of the above
An agreement is void if the object of agreement is ______.
  • Moral
  • Immoral
  • Lawful
  • All of the above
A agrees to pay Rs. 1,00,000 to B, if he procures an employment for A in Income Tax Department. This agreement is______.
  • Void
  • Valid
  • Voidable
  • Contingent
Which of the following persons can perform the contract?
  • Promisor alone
  • Legal representatives of promisor
  • Agent of the promisor
  • All of the above
An agreement which involves or implies injury to the person or property of another is_______.
  • Valid
  • Void
  • Voidable
  • Enforceable
Which of the following agreements  is/are void as being against public policy?
  • Agreements in restraint of personal freedom
  • Agreement in restraint of trade
  • Agreement in restrain of parental rights
  • All of the above
Agreements in restraint of trade are valid, if restriction imposed are _____.
  • Unreasonable
  • Reasonable
  • Conditional
  • None of the above
Every agreement by which anyone is restrained from exercising a lawful _____ of any kind is, to that extent, is void.
  • Profession
  • Trade
  • Business
  • All of the above
Sohan, a seller of imitation jewellery, sells his business to Bhuvan and promises, not to carry on business in imitation and real jewellery. The agreement is_____.
  • Valid with regard to imitation jewellery and void as regard to real jewellery
  • Void with regard to imitation jewellery and valid as regard to real jeweler
  • Wholly void
  • Fully void
Execution of a bond requiring the employee leaving the organization to pay compensation to employer is_____.
  • Voidable agreement
  • Void agreement
  • Unenforceable agreement
  • Valid agreement
Match the following :
1.Agreement by incompetent parties are voidi.Section 25
2.Agreement in restraint of tradeii.Section 20
3.Agreements made without considerationiii.Section 11
4.Agreements made under a mutual mistake of factiv.Section 27
  • (a) - (iii), (b) - (iv), (c) - (ii), (d) - (i)
  • (a) - (iii), (b) - (iv), (c) - (i), (d) - (ii)
  • (a) - (iii), (b) - (ii), (c) - (i), (d) - (iv)
  • (a) - (iv), (b) - (iii), (c) - (i), (d) - (ii)
Which of the following agreements is/are void as being against public policy?
  • Agreement in restrain of parental rights
  • Agreement in restraint of marriage
  • Marriage brokerage agreements
  • All of the above
A sum of money was agreed to be paid to the father in consideration of him giving his daughter in marriage. Agreement is void on ground of being_____.
  • Restraint of marriage
  • Marriage brokerage agreement
  • Restraint of personal liberty
  • Restraint of legal proceedings
If a restraint is reasonable, it will be valid. This was held in famous case, _____.
  • Nordenfelt vs Maxim Nordenfelt Guns Co.
  • Salomon vs Salomon & Co. Ltd.
  • Mohiri Bibi vs Dharmodas Ghose
  • All of the above
Which of the following is correct?
  • An agreement in restraint of trade is always void.
  • An agreement in restraint of trade is void even if restrictions imposed are reasonable.
  • An agreement in restraint of trade is valid even if restriction imposed was unreasonable.
  • None of the above
A void agreement is one _____.
  • Which is enforceable by law
  • Which is not enforceable by law
  • Which is voidable at the option of one party
  • Which is voidable at the option of both parties
Bholaram agreed to pay a certain sum when he was able to pay to Sitaram. Agreement is void because _____.
  • There is no consideration
  • Bholaram is exercising fraud on Sitaram
  • There is misrepresentation
  • There is uncertainty
Consider following agreements.
A agrees to sell to B a 100 tons of oil.
A, who is dealer in coconut oil only agrees to sell to B a 100 tons of oil.
A agrees to sell to B 100 tons of rice at a price to be fixed by C.
A agrees to sell to B his white horse for Rs. 15,000 or Rs. 10,000
Which of the above agreements are valid?
  • 1 & 2
  • 2 & 3
  • 3 & 4
  • 4 & 1
Ram agrees to sell to Rahim, 100 tons of oil. Ram deals only in coconut oil. The agreement is ______.
  • Void
  • Enforceable
  • Valid
  • (B) & (C) above
Ram agrees to sell to Rahim, 100 tons of oil. The agreement is _____.
  • Void
  • Voidable
  • Illegal
  • Enforceable
Performance under the contract must be ______.
  • Conditional
  • Unconditional
  • Complete as to 2/3rd value of contract
  • None of the above
A agrees to sell to B, 100 quintals of rice at a price to be fixed by C. This agreement is _____.
  • Voidable at the option of A
  • Voidable at the option of B
  • Voidable at the option of C
  • Valid & enforceable by both the parties
Which of the following agreements have been expressly declared to be void by the Indian Contract Act, 1872?
  • Agreements in restraint of trade
  • Agreements the meaning of which is uncertain.
  • Agreement by incompetent parties
  • All of the above
If two or more persons have made a joint promise, they are known as _____.
  • Joint venturer
  • Joint promise
  • Joint partners
  • Joint promisors
A, B & C jointly promise to pay D Rs. 6,Which of the following is correct?
  • D may compel first A to pay him Rs. 6,000.
  • D may compel first A to pay him Rs. 6,000. If A does not pay, then to B.
  • D may compel first A to pay him Rs. 6,000. 1f A does not pay, then to B and if B also does not pay, then to C.
  • D may compel all or any of them to pay him Rs. 6,000.
In case aggrieved party does not rescind the voidable contract within a reasonable time, the contract remains ____________.
  • voidable
  • void
  • valid
  • illegal
Legal Principle: A counter offer does not give rise to contractual binding.

Factual Situation: D wrote to P on 28 November, 1971, offering to sell 800 tonnes of iron at Rs.6,900 per tonne. On the same day, P wrote to D offering to buy 800 tonnes of iron Rs.6,900 per tonne. The two letters crossed in post and neither of them knew any thing about the offer to the other. P contended that there was a good contract.
Issue: What is the nature of contract and liabilities of the parties?
  • There was no valid contract because an agreement results into a contract when there is an offer from one side and its acceptance from the other side, so no question of any liability rises.
  • It is a voidable contract at the option of D because D had offered to sell the product.
  • It is voidable contract at the option of P because P had offered to buy the product.
  • None of these.
Agreement-the meaning of which is uncertain is _________________.
  • valid
  • void
  • voidable
  • illegal
When a contract consists of reciprocal promises to be simultaneously performed, _____.
  • Promise needs to be performed by the promisor whose age is less than the other
  • Promise needs to be performed by the promisor who is ready and willing to perform his promise first
  • No promisor needs to perform his promise unless the promisee is ready and willing to perform his reciprocal promise
  •  Promises are not required to be performed as contracts consisting of reciprocal promises to be simultaneously performed are specifically declared to be void
If no time is specified for performance, the promise must be performed within ______.
  • Unreasonable time
  • Reasonable time
  • Six months from the date of contract
  • One year from the date of contract
In case of reciprocal promises, which is not applicable?
  • They can be performed simultaneously
  • They cannot be performed simultaneously
  • They can be fixed by the parties to the contract
  • As depending upon the nature of the contract
When a contract consists of reciprocal promises to be simultaneously performed, such reciprocal promises fall under the category of _______.
  • Mutual and concurrent
  • Conditional and dependent
  • Mutual and independent
  • None of the above
A, B & C jointly promised to pay Rs. 60,000 to D. Before performance of the contract, C dies. Here, the contract ______.
  • Becomes void on Cs death
  • Should be performed by A and B along with C's legal representatives
  • Should be performed by A and B alone
  • Should be renewed between A, B and D
If no time is specified for performance of a contract, it must be performed within a reasonable time. Reasonable time means _____.
  • Which seems reasonable to the, promisee
  • Which seems reasonable to the promisor
  • Which is reasonable under the facts and circumstance of the case
  • Which is determined as reasonable by some third party
In contract of sale of movable properties, time is _____.
  • Not presumed to be essence of the contract
  • Presumed to be the essence of the contract
  • No presumption as to time be raised
  • All of the above
In contract of sale of immovable properties, time is ______.
  • Not presumed to be essence of the contract
  • Presumed to be the essence of the contract
  • No presumption as to time be raised
  • All of the above
Ram and Rahim are joint promisors. Promise is discharged by one of the joint promisors. Then ______.
  • Both of them discharged from liability
  • Ram is discharged from liability
  • Rahim is not discharged from liability towards Ram
  • Promise comes to an end
Reasonable time for performance of a contract is a _____.
  • Question of law
  • Question of fact
  • Mixed question of fact and law
  • Question of prudence
X owes to Y among the other debts, a sum of Rs. 53,Y sends e-mail to X demanding payment of Rs. 53,X gives the cash. Y should apply this payment in discharge of _____.
  • Any debt due from X
  • The debts which Y demanded
  • Any disputed debt due from X
  • Any debt which Y has not demanded
An acceptance is not according to the mode prescribed but the offerer decides to keep quite. In such a case there is ____________.
  • a contract
  • no contract
  • a voidable contract
  • an unenforceable contract
The debt due may be principal and interest. In such a case, if debtor makes part payment, then ________.
  • payment should be appropriated towards interest
  • payment should be appropriated towards principal
  • payment should be appropriated towards principal and alter principal is fully paid off, to interest
  • payment should be first appropriated towards interest and alter interest is fully paid off, to principal
Finder of goods can sell the goods found, if the lawful charges of finder, amount to _____ of the value of goods.
  • 1/3rd
  • 1/4th
  • 1/5th
  • 2/3rd
Where the debtor has omitted to intimate, and there are no other circumstances indicating to which debt the payment is to be applied, the creditor ______.
  • may apply it at his discretion to any lawful debt actually due and payable to him from the debtor
  • may apply it at his discretion to any time barred debt
  • either (A) or (B)
  • (A) only but not (B)
A finds a ring of B and sells it to a third person who purchases it for value and in good faith. Which of the following is correct?
  • In the given case, sale by A to third person is valid as under of goods can treated as owner.
  • In the given case, sale by A to third person is valid as A has implied power given by the law to sell the goods found.
  • In the given case, sale by A to third person is not valid as A has no title.
  • In the given case, sale by A to third person is not valid as A has no title. B can recover ring from third person and such third person can recover damages from A.
Sometimes, a person finds certain goods belonging to some other persons. In such a case, the finder ______.
  • Becomes the owner of the goods and can use them
  • Is under a duty to trace the true owner and return the goods
  • Can sell the perishable goods if true owner cannot be found
  • Both (B) and (C)
A pays the money to B by mistake. It is really due to C. Decide.
  • B must refund the money to A.
  • B must refund the money to A. C can also recover the amount from B as there is privity of contract.
  • B is not required to refund the money to A. C can also recover the amount from B.
  • B must refund the money to A. C however cannot recover the amount from B as there is no privity of contract.
A, a tradesman, leaves the goods at C's house by mistake. C treats the goods as his own. Which of the following is correct?
  • C is not bound to pay for the goods.
  • C is not bound to pay for the goods as it entirely mistake of A.
  • C is bound to pay for the goods.
  • None of the above
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Practice Class 12 Commerce Legal Studies Quiz Questions and Answers