CBSE Questions for Class 12 Commerce Legal Studies Topics Of Law Quiz 15 - MCQExams.com

As per Section $$464$$ of the Companies Act, $$2013$$, no association or partnership consisting of more than prescribed persons shall be formed for the purpose of carrying on any business, unless it is registered as a company or is formed under any other law for the time being in force. The number of persons which many be prescribed under this section shall not exceed __________. Rule $$10$$ of Companies(Miscellaneous) Rules, $$2014$$ prescribes __________ persons in this regard.
  • $$100; 50$$
  • $$50; 100$$
  • $$60; 20$$
  • $$20; 10$$
A agrees to sell his horse to B. But unknown to both the parties, the horse had already died at the time of making of the contract. The contract is ______.
  • Void
  • Valid
  • Voidable
  • Illegal
If it is possible to severe legal and illegal parts of a covenant, whether the illegality be due to Statute or Common Law, bad part alone may be rejected and good can be enforced. 
  • True
  • Partly True
  • False
  • None of the above
B is a licensed manufacturer of permitted chemicals. A promises to B to supervise B's business and combine it with the production of some contraband items together with the permitted items. B promises to pay A, a salary of Rs. 10,000 p.m. The agreement is _________.
  • void as a whole
  • void temporarily
  • void to the extent of permitted chemicals and valid for the balance contraband items
  • valid to the extent of permitted chemicals and void for the balance contraband items
An agreement is void if the Court considers it as _________.
  • immoral
  • opposed to public policy
  • either (a) or (b)
  • neither (a) nor (b)
P offers, to sell a painting to K which P knows is the copy of a well known master piece. K thinking that the painting is original decides to buy it at a very high price, is this a valid contract?
  • No, P is guilty of misrepresentation.
  • No, P is guilty of fraud.
  • Yes, K has an erroneous belief as to the value of the painting.
  • Yes, price is not a criteria for setting aside the contract.
The Indian Contract Act deals with the following Quasi Contractual Obligations --
(I) Claim for necessaries supplied to a person incompetent to contract.
(II) Reimbursement of money paid, due to another.
(III) Obligation of person enjoying benefit of non gratuitous act
(IV)Responsibility of Finder of Goods.
  • I and II
  • II and III
  • III and IV
  • I, II, III and IV
In contracts of sale of movable properties, time is ____________.
  • not presumed to be the essence of the contract
  • presumed to be the essence of the contract
  • no presumption as to time can be raised
  • all of the above
A partner of an unregistered firm can use the firm or any other partner of the firm to enforce a right arising from a contract or a right conferred by the partnership Act.
  • True
  • Partly true
  • False
  • None of the above
Ram paid premium for entering into partnership for fixed term. The Firm is dissolved before expiry of such term due to difference of opinion between partners. Here.
  • Ram is entitled to return of the entire premium
  • Ram is not entitled to return of any premium
  • Ram is entitled to return of the entire premium or pro-rata part thereof
  • Ram has to pay further premium
Identify which of the following statement is correct and which is incorrect.
P. To constitute a partnership, the parties must have agreed to carry on a business and to share profits in common.
Q The sharing of profits arising from property, by persons holding a joint or common interest in that property, makes those persons, Partners.
R. Sharing of profits also involves sharing of losses.
S. A minor may be admitted to the benefits of a partnership with the consent of majority partners.
Select the correct answer from the options given.
When a Partnership Contract is rescinded on ground of fraud or misrepresentation, the party entitled to rescind is also entitled to rank as a creditor of the Firm in respect of.
  • His own capital
  • His share of profit
  • Any payment made by him for the Firms debts
  • All of the above
Which of the following arrangement indicates a partnership?
  • Ram agrees with Shyam a gold smith, to buy and furnish gold to Shyam to be worked upon by him and sold, and that they shall share the resulting profit or loss
  • Ram and Shyam agree to work together as carpenters but Ram shall receive all profit and shall pay wages to Shyam
  • Ram and Shyam are joint owners of a ship
  • Ram, a publisher, agrees to publish at his own expense a book written by Shyam and to pay Shyam half the net profit
Where no provision is made by contract between the partners for the duration of their partnership or for the determination of their partnership, the partnership is called __________.
  • Partnership at will
  • Particular partnership
  • Partnership for fixed duration
  • None of the above
___________ is a game of chance.
  • Conditional Contract
  • Contingent Contract
  • Wagering Agreement
  • Quasi Contract
As per Table F of Schedule I to the Companies Act, 2013, interest on calls in arrear can be received at ...........p.a.
  • 10%
  • 12%
  • 15%
  • 8%
pendente lite means __________.
  • During litigation
  • An opinion of law not necessary to the decision.
  • With the necessary changes
  • For a consideration
Why is the expiatory theory of punishment obsolete now?
  • It does not empower the state to impose punishment
  • It is incapable to reform the wrong doer
  • It is based on moral doctrine
  • It enlarges the limits of Jurisprudence
Tort of conspiracy occurs where _______.
  • two or more persons combine to injure a third party by unlawful means
  • two or more persons combine to injure a third party by lawful means
  • two or more persons combine to help a third party by lawful means
  • two or more persons combine not to injure a third party by unlawful means
Which is not a punishment theory ?
  • Preventive Theory
  • Deterrent Theory
  • Reformative Theory
  • None of the above
Which theory says by punishing the wrongdoer is made an example ?
  • Deterrent Theory
  • Reformative Theory
  • Retributive Theory
  • None of the above
Which are punishment theories ?
  • Preventive and Expiatory theory
  • Preventive and Reformative Theory
  • Reformative and Retributive Theory
  • All of the above
According to which theory, offences are committed under the influence of motive upon the character ?
  • Deterrent Theory
  • Reformative Theory
  • Both of the above
  • None of the above
Mens rea means _____________.
  • A guilty mind
  • Signifies a right to be heard
  • By the mere fact
  • A pending suit
An eye for an eye and tooth for a tooth is the principle of______.
  • Retributive Theory
  • Preventive Theory
  • Deterrent Theory
  • None of the above
bona fide means __________.
  • Hear the other side
  • In good faith
  • In fact
  • In law
Who say that men who are guilty of crimes, when condemned by the king became pure and go to heaven in the same way as good as virtuous men go, about expiatory theory ?
  • Salmond
  • Kant
  • Manu
  • None of the above
As per Sec. 2(35) of the Income Tax Act, 1961, a Company Secretary is
  • Manager
  • Principle officer
  • Coordinator
  • None of the above
A claim barred by lapse of time is called an _____.
  • An imperfect right
  • A negative effect
  • A personal right
  • A contingent right
According to Salmond, which theory of punishment out of the following, is in itself not a remedy for the mischief of the offence but an aggravation of it and invites pain and suffering and is offensive of the considerations of the humanity?
  • Retributive
  • Deterrent
  • Preventive
  • Expiatory
According to one of the theories of punishment, evil should be returned by evil, this theory is known as the ______.
  • Deterent theory
  • Retributive theory
  • Preventive theory
  • Reformative theory
A owes to b rupees five hundred which has become time barred. B's claim to rupees five hundred is _____.
  • In the nature of an imperfect legal right
  • In the nature of perfect legal right
  • In the nature of only a moral right
  • No right at all
Which of the following company/companies are registered by the Companies Act, 2013?
  • One person company
  • Private Company
  • Public Company
  • All of the above
Good owned by A were put by her rooms in the house of B with B's permission. The rooms were locked by A's agent. Who gave the keys to H, A's husband with the permission of A. The possession of the rooms was with _____.
  • A
  • Agent
  • B
  • H
Retribution under the retributive theory of punishment means the wrong doer _______.
  • Is sunned by the society
  • Pays for wrong doing
  • Is punished by God
  • Is moraly reformed
The Indian Contract Act deals with the following Quasi-contractual Obligations:
(i) Claim for necessaries supplied to a person incompetent to contract
(ii) Responsibility of finder of goods
(iii) Re-imbursement of money paid, due by another
(iv) Obligation of person enjoying benefit of non-gratuitous act
  • (ii) & (iii)
  • (i) & (ii)
  • (i), (ii), (iii) & (iv)
  • (iii) & (iv)
In a contract where goods are kept as security for payment of a debt it is called:
  • Bailment
  • Pledge
  • Quasi contract
  • None of the above
Every agreement by which anyone is restrained from exercising a lawful profession, track or business of any kind:
  • is void;
  • is to that extent void;
  • is to that extent voidable;
  • none of the above.
A, a singer, contracts with B, the manager of a theatre, to Sing at his theatre for two nights in every week during the next two months, and B engages to pay her Rs. 100 for each night's performance. On the sixth night, A willfully absents herself from the theatre, and B, in consequence, rescinds. The contract.
  • B must pay A for the five nights on which she had sung
  • B may not pay A for the five nights on which she had sung
  • Both (a) and (b)
  • None of (a) and (b)
Which of the following statements is true?
  • If there is no consideration, there is no contract.
  • Past consideration is no consideration in India.
  • Consideration must result in a benefit to both the parties.
  • Consideration need not be adequate.
The Indian Contract Act extends to __________________.
  • Whole of India
  • Whole of India except Jammu and Kashmir
  • Jammu and Kashmir
  • None of the above
Agreement + enforceability by Law = _________________.
  • Contract
  • Offer
  • Invitation to offer
  • Legal relation
When one person signifies to another his willingness to do anything, with a view to obtaining the assent of that other to such act, he is said to make:
  • An offer
  • An acceptance
  • A promise
  • An agreement
Which of the following does not constitute a valid acceptance?
  • It has been communicated
  • It is absolute and unqualified
  • It has been presumed from silence of offeree
  • The offer has been accepted by the proper person
The essential features of agency
  • There is an agreement between two parties
  • The agent has intention to act on behalf of the principal
  • No consideration is necessary for creating an agency
  • All of the above
Principle: Existence of all the alleged facts is relevant, whether they occurred at the same time and place or at different times and places.
Facts: 'A', a citizen of England, is accused of committing murder of 'B' in India by taking part in a conspiracy hatched in England.
  • Only the fact that 'A' citizen of England is accused of committing murder of 'B' in India is relevant
  • 'A' citizen of England cannot be tried in India
  • Only the fact that 'A' is accused of conspiracy hatched in England is relevant
  • The facts that 'A' citizen of England is accused of commission of murder in India and of conspiracy hatched in England are relevant facts
Principle: Defamation is the publication of a statement which tends to lower reputation of a person in the estimation of other members of the society generally.
Facts: 'A' writes a highly offensive and derogatory letter about 'B', and sends it directly of 'B' in a sealed cover.
  • 'A' is liable to 'B' for defamation, as the letter is highly offensive and derogatory and is directly sent to 'B'
  • 'A' is not liable to 'B' for defamation, since there is no publication to any other person in whose estimation the reputation of 'B' could be brought down
  • 'A' is liable to 'B' for defamation, as the letter is highly offensive and derogatory
  • 'A' is liable to 'B' for defamation, as it has hurt his (B's) self-esteem.
The dues recoverable under this section includes _____________.
  • Only Interest
  • Any dues which are recoverable under this Act
  • Only tax
  • Only Penalty
Principle: One who dishonestly misappropriates or converts to his own use or sells any movable property belonging to another, is guilty of the offence of misappropriation.
Facts: 'A' takes property belonging to 'Z' out of Z's possession, in good faith, believing when he takes it, that the property belongs to himself. Subsequently, 'A', on discovering his mistake, without disclosing the actual facts, dishonestly sells the property to a stranger.
  • 'A' may be guilty of theft but not for misappropriation
  • 'A' is guilty of an offence of misappropriation
  • 'A' is not guilty because when he took the property, he believed in good faith that it belonged to him
  • 'A' is not guilty as the property can be recovered from the stranger
Principle: Letters or words not describing quality of things can be registered as a trade mark.
Facts: Ram made an application for registration of alphabet 'B' written in a fancy style as trade mark to be applied on packets and cartons of shoes manufactured by him.
  • The alphabet 'B' can be registered as trade mark because it describes the quality of things
  • The alphabet 'B' cannot be registered as trade mark because it is an English letter
  • The alphabet 'B' can be registered as trade mark
  • The alphabet 'B' cannot be registered as trade mark because it belongs to humanity
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