CBSE Questions for Class 12 Commerce Legal Studies Topics Of Law Quiz 11 - MCQExams.com

Finder of goods can sell the goods found, if _____.
  • Owner can be found with reasonable diligence
  • Owner, if found, pays the lawful charges of the finder
  • Goods are in danger of perishing
  • All of the above
A specific guarantee is ______.
  • Irrrevocable
  • Revocable
  • Transferable
  • Not a guarantee at all
Which of the following can be revoked?
A continuing guarantee
Specific guarantee
Select the correct answer from the options given below -
  • Both 1 and 2
  • Neither 1 or 2
  • l but not 2
  • 2 but not l
It is the duty of finder of goods to return the goods to true owner, otherwise finder is guilty of ______
  • Criminal misappropriation of goods
  • Theft
  • Extortion
  • None of the above
Identify which of the following statement is true and which is false?
P. A surety is favoured creditor.
Q. The liability of the principal debtor is co-extensive with that of surety unless the contract otherwise provides.
Select the correct answer from the options given below -
P Q
  • True False
  • False False
  • True True
  • False True
The liability of surety is ______.
  • Primary
  • Collateral
  • Secondary
  • (B) or (C)
There are _____ to the contract of indemnity while there are _______ to the contract of guarantee.
  • Three parties, Two parties
  • Two parties, Three parties
  • Two parties, Four parties
  • Four parties, Two parties
The person who promises to make the loss good is called as _____.
  • Indemnified
  • Indemnity holder
  • Indemnifier
  • Surety
In which of the following circumstances a continuing guarantee can be revoked?
  • By notice of revocation by the surety
  • By the death of the surety
  • Both (A) & (B)
  • None of the above
The liability of indemnifier is _______.
  • Primary
  • Collateral
  • Secondary
  • (B) or (C)
The person who's loss is to be made good is called as _____.
  • Indemnified
  • Indemnity holder
  • Indemnifier
  • (A) or (B)
When a surety has paid more than his share of debt to the creditor, he has a right of contribution from the co-securities who are equally bound to pay with him.
  • False
  • True
  • Partly true
  • None of the above
After discharging the debt, the surety ________.
  • Steps into the shoes of the creditor
  • Is subrogated to all the rights of the creditor against the principal debtor
  • (A) or (B)
  • None of the above
In contract of bailment, delivery may be_______.
  • Actual
  • Constructive
  • (A) or (B)
  • None of the above
On payment of a guaranteed debt, surety is subrogated to all the rights of _______.
  • Creditor
  • Principal debtor
  • Other co-surety
  • None of the above
In contract of bailment, person who delivers the goods is called as _____.
  • Bailee
  • Bailor
  • Pledger
  • Pledgee
The contract of bailment may be _______.
  • Expressed
  • Implied
  • Deemed
  • (A) or (B)
In which of the following cases, a surety may be discharged from liability?
  • By notice of revocation in case of a continuing guarantee as regards to past transaction
  • By the death of the surety as regards to past transactions, in a continuing guarantee
  • Any variation in the terms of the contract between the creditor and the principal debtor, with the consent of the surety
  • If the creditor releases the principal debtor, or acts or makes an omission which results in the discharge of the principal debtor
In contract of bailment, there is transfer of _____ in goods.
  • Ownership
  • Title
  • Possession
  • Deemed ownership
When consent to an agreement is caused by undue influence, the contract is _____________.
  • voidable at the option of any party
  • voidable at the option of the promisee
  • voidable at the option of the promisor
  • voidable at the option of the party whose consent was so caused
A letter of acceptance sent by post is lost transit __________________.
  • there is a concluded contract as the letter of acceptance is put in the course of transmission
  • there is no concluded contract as the acceptance has not come to the knowledge of the proposer.
  • there is no concluded contract as the acceptance has not be communicated to the proposer
  • all the above
In contract of bailment, the person to whom the goods are delivered is called as _____.
  • Bailee
  • Bailor
  • Pledger
  • Pledgee
On being sued by the creditor, the surety can rely on any _____ which the debtor has against the creditor.
  • Set-off
  • Counter claim
  • Set-off or counter claim
  • None of the above
________ is one in which neither the bailor nor the bailee is entitled to any remuneration.
  • Gratuitous bailment
  • Non-gratuitous bailment
  • Deemed bailment
  • Actual bailment
Finder of goods can sell the goods found, if the lawful charges of finder, amount to ______ of the value of goods.
  • 2/3rd
  • 1/3rd
  • 1/4th
  • 2/5th
A hires a car in Delhi from B for going to Varanasi. A drives with care but meets with accident while going to Haridwar. Advise B.
  • A is liable for the damage to B's car.
  • A is not liable for the damage to B's car.
  • A should pay extra charges for going to Haridwar.
  • None of the above
The position of a finder of lost goods is exactly that of _____.
  • Bailee
  • Surety
  • Consignee
  • Consignor
In contract of bailment, ______ is made by physically handing over the goods.
  • Constructive delivery
  • Actual delivery
  • Symbolic delivery
  • Deemed delivery
If bailee uses the goods in an unauthorized manner or for unauthorized purpose, the bailor can ____.
(i) Terminate the bailment
(ii) Claim damages for any loss
Select correct answer from the options given below -
  • (ii) but not (i)
  • (i) but not (ii)
  • Both (i) and (ii)
  • Neither (i) nor (ii)
A common carrier includes ______.
  • Railways
  • Carriers by inland navigation
  • Carriers by sea
  • (A) & (B)
State the responsibility of finder of goods.
  • He need not to take care of goods as man of ordinary prudence.
  • He must not appropriate goods for his own use.
  • He can mix the goods with his own goods.
  • All of the above
Duty of bailor is/are ______.
  • To return accretion to the goods
  • To return the goods
  • To receive back goods on termination of bailment
  • All of the above
If no consideration passes from bailor to bailee, it is known as ________.
  • Gratuitous bailment
  • Non-gratuitous bailment
  • Deemed bailment
  • Bailment with consideration
An agent is personally liable _______.
  • Where the agent has agreed to be personally liable to the third-party
  • Where an agent acts for a principal residing abroad
  • When the agent signs a negotiable instrument in his own name without making it clear that he is signing it only as agent
  • All of the above
Under Indian contact Act promisee is the 
  • Person who makes the proposal
  • Person who accepts the proposal
  • Person who makes the promise
  • Person to whom proposal
Under section 2(a) if the person to whom the proposal is made signifies this assent the proposal is said to have been
  • Promise
  • Agreed
  • Provisionally agreed
  • Tentatively accepted
Offer as defined under section 2(a) of Indian contract Act
  • Communication from one person to another
  • Suggestion by one person to another
  • Willingness to do or abstain from doing an act in order to obtain assent of other thereto
  • None of the above.
Which of the following is not in harmony with the system of Rule of Law?
$$1$$. Independent judiciary
$$2$$. Administrative courts
$$3$$. Administrative law
$$4$$. Discretionary powers of officers
$$5$$. Supremacy of law
  • $$1,3$$ and $$5$$
  • $$2,3$$ and $$4$$
  • $$3,4$$ and $$5$$
  • $$2,4$$ and $$5$$
A horse sent by rail was not taken delivery at the destination. The Station Master had to feed the horse. The Station Master becomes an _____ and hence the owner shall compensate him.
  • Agent by necessity
  • Agent by operation of law
  • Agent by holding out
  • Agent by ratification
A Contract of agency may be _______.
  • Express
  • Implied
  • (A) or (B)
  • None of the above
Agency may also arise by _____.
  • Estoppel
  • Necessity
  • Ratification
  • All of the above
In case of unnamed principal, if agent refuses to name the principal, the agent shall be personally liable.
  • True
  • False
  • Partly true
  • None of the above
A contract of agency may be made ______.
  • Orally
  • In writing
  • (A) or (B)
  • None of the above
Consideration is necessary to create an agency.
  • True
  • False
  • Partly true
  • None of the above
A common carrier includes _____ and they can limit their liability.
  • Railways
  • Carriers by inland navigation
  • Carriers by sea
  • (A) & (B)
A pledge is bailment for security.
  • False
  • True
  • Partly true
  • None of the above
The administrators of union territories are designated as _________________.
  • Administrators
  • Lieutenant Governor
  • Chief Commissioners
  • all these
A instigates B to murder D. B refuses to do so. The murder did not take place. What offence is A guilty of ___________________.
  • no offence.
  • murder
  • abetting B to commit murder
  • conspiracy
Homicide literally means ____________________.
  • the punishment of death.
  • killing of animals
  • murder
  • killing of a human being by another human being
The involvement of five or more persons is essential for __________________.
  • robbery
  • dacoity
  • extortion
  • theft.
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