CBSE Questions for Class 12 Commerce Legal Studies Topics Of Law Quiz 16 - MCQExams.com

A, by a misrepresentation, leads B erroneously to believe that, five hundred maunds of indigo are made annually at A's factory. B examines the accounts of the factory, which show that only four hundred maunds of indigo have been made. After this, B buys the factory.
  • The contract is voidable on account of A's misrepresentation.
  • The contract is not voidable as there is no undue influence by A 's misrepresentation.
  • The contract is not voidable on account of A's misrepresentation.
  • The contract is voidable on account of A's coercion.
Principle: Consent is a good defence in a civil action for tort but the act should be the same for which consent was given.
Facts: 'B' was formally invited by 'A' to his house. 'B' after sitting for some time in drawing room, moved to the bed room of the house. 'A' used 'B' for trespass.
  • 'B' has interfered with privacy of 'A'
  • 'B' has committed no trespass as he entered the house with 'A's consent
  • 'B' has offended 'A' by moving to bed room
  • 'B' has committed trespass as there was no consent of 'A' for entry in the Bed room
Principle: Import means bringing some consignment into India from a foreign country.
Facts: A consignment from Sri Lanka entered the territorial waters of India. However, this consignment never crossed the Indian custom barrier nor did it enter into the stream of commerce in India.
  • The consignment will only be imported into India when it enters into the stream of commerce in India
  • The consignment was not imported into India
  • The consignment was imported into India
  • The consignment will only be imported into India when it crosses the Indian custom barrier.
Principle: A person is said to have committed assault when an apprehension is caused in the mind of a person that he is about to use physical force against his body.
Facts: 'A' abuses 'B' while he was sitting in a moving train, by aggressively shaking his fists when 'B' was standing on the railway platform at a distance.
  • 'A' has caused apprehension of assult in the mind of 'B'
  • 'A' has committed assault against 'B'
  • A has not committed assault against 'B'
  • 'A' has caused fear of assault in the mind of 'B'
In case the person does not deposit tax collected in contravention of Section 76, is the same recoverable with interest?
  • Yes
  • No
  • At proper officer's discretion
  • None of the above
Principle: Consent is a good defence for civil action in tort. But consent must include both knowledge of risk and assumption of risk, i.e., readiness to bear harm.
Facts: A lady passenger was aware that the driver of the cab, in which she opted to travel was little intoxicated. The cab met with an accident and lady got injured.
  • Driver can take the plea that he was lightly intoxicated
  • Lady is not entitled to claim compensation as she had knowledge of the risk
  • Lady is entitled to claim compensation as she only knew about risk and there was no assumption of risk
  • Lady can refuse to pay the fare as she suffered injuries
The question consist of two statements, one labelled as PRINCIPLE and other as FACT. You are to examine the principle and apply it to the given facts carefully and select the best option.

PRINCIPLE : Preparation is not an offence except the preparation of some special offences.
FACT: Ramesh keeps poisoned halua in his house, wishing to kill Binoy whom he invited to a party and to whom he wishes to give it. Unknown to Ramesh, his only son takes the halua and dies. In this case
  • Ramesh is liable for the murder.
  • He is not liable for murder since it is a preparation alone.
  • He is liable for culpable homicide
  • None of the above.
The question consist of two statements, one labelled as PRINCIPLE and other as FACT. You are to examine the principle and apply it to the given facts carefully and select the best option.

PRINCIPLE: Any direct physical interference with the goods in somebody's possession without lawful justification is called trespass to goods.
FACT: A purchased a car from a person who had no title to it and had sent it to a garage for repair. X, believing, wrongly, that the car was his, removed it from the garage.
  • X can be held responsible for trespass to goods.
  • X cannot be held responsible for trespass to good as he was under a wrong belief.
  • X has not committed any wrong
  • None of the above.
Principle: In criminal law, misappropriation is the intentional, illegal use of the
property or funds of another person for one's own use or other unauthorized purpose,
particularly by a public official, a trustee of a trust, an executor or administrator of a
dead person's estate or by any person with a responsibility to care for and protect
another's assets. Embezzlement is misappropriation when the funds involved have been
lawfully entrusted to the embezzler. On the contrary, theft is the illegal taking of another
person's property or services without that person's permission or consent with the intent
to deprive the rightful owner of it.

Facts: A went for swimming at the Municipal Swimming Pool. A handed over all his
valuables, including some cash to X, the guard on duty for safe custody, as notified by
the Municipality. After swimming for an hour, A came out and searched for X. He found
another guard on duty and that guard informed A that X had gone home after completing
his shift and did not hand over anything to be given to A. A registered a complaint with
the police. X was traced but he told the police that he sold all the valuables and the
entire cash was used for drinking liquor. What offence, if any, was/were committed by
X ?
  • X is not guilty of criminal misappropriation as he did not make any personal gain
    out of those items with him.
  • X is liable for criminal misappropriation and embezzlement.
  • X is liable for theft as he took As property without Xs permission.
  • If at all X is liable, it is for criminal misappropriation only
Principle: An agreement may be entered into orally or in writing, or by conduct.
Facts: 'A' went to the shop of 'B' and picked a toothbrush and gave a cheque of Rupees twenty to 'B' and left the shop.
  • Payment of toothbrush cannot be made through a cheque
  • 'A' did not enter into an agreement with 'B'
  • 'A' should have carried a currency note of Rupees twenty to make the payment
  • There was an agreement between 'A' and 'B'
Principle: False imprisonment is a tort(wrong) which means the total restraint of a person's liberty without lawful justification.
Facts: A part of a public road had been closed for spectators of a boat race. 'P' wanted to enter but he was prevented by 'D' and other policemen because he had not paid the admission fee. 'P' was able to enter the enclosure by other means but was unable to go where he wanted to go. The policemen refused access to where he wanted to go but allowed him to remain where he was or to go back. 'P' remained.
Within the enclosure and refused to leave. Subsequently, 'P' sued 'D' for false imprisonment.
  • It was a case of false imprisonment, but 'D' could not be made liable for it
  • 'D' could not be made liable for false imprisonment as he has not touched him
  • 'D' could be made liable for false imprisonment, as he did restrict P's movements
  • 'D' could not be made liable for false imprisonment, as he did not totally restrict P's movements
Principles:
$$\bullet$$ A person is said to abet the doing of a thing when he instigates any other person to do that thing.
$$\bullet$$ Mere acquiescence, however, does not amount to instigation.
Facts: 'A' says to 'B': I am going to kill 'C'. "And and B' replies."Do as you wish and take the consequences"; whereafter 'A' kills 'C'.
  • 'B' has not abetted 'A' to kill 'C'
  • 'B' has abetted 'A' by conspiracy
  • 'B' abetted 'A' to kill 'C'
  • 'B' is jointly liable with 'A' for killing 'C'
Principle: Whoever does not arrest the killer and report the matter to the concerned authorities commits an offence.
Facts: 'A', a woman, sees 'B', another woman, killing a third woman 'C', 'A' neither attempted to arrest 'B' nor informed the concerned authorities.
  • 'A' has not committed an offence
  • 'A' has committed an offence
  • 'B' has not committed an offence
  • 'B' has committed an offence
The question consist of two statements, one labelled as PRINCIPLE and other as FACT. You are to examine the principle and apply it to the given facts carefully and select the best option.

PRINCIPLE: "Nobody shall unlawfully interfere with a person's use or enjoyment of land, or some right over, or in connection with it. The use or enjoyment, envisaged herein, should be normal and reasonable taking into account surrounding situation."
FACT: Jeevan and Pavan were neighbours in a residential locality. Pavan started a typing class in a part of his house and his typing sound disturbed Jeevan who could not put up with any kind of continuous noise. He filed a suit against Pavan.
  • Pavan is liable, because he should not have started typing class in his house
  • Pavan is liable, because as a neighbour, he should have realised Jeevan delicate nature
  • Pavan is not liable, because typing sound did not disturb anyone else other than Jeevan
  • None of the above.
Principle: There are certain acts which, though harmful, are not wrongful in law; therefore, do not give legal right to bright action in law, to the person who suffers from such acts.
Facts: 'Prakash' has a rice mill. His neighbour, Shanti, sets up another rice mill and offers a tough competition to Prakash. As a consequence, Prakash's profits dall down. He brings a suit against Shanti for damages.
  • Prakash can succeed in his claim as it is a case of actual damages
  • Prakash cannot succeed in his claim for damages, as it is a case of damage without infringement of any legal right
  • Prakash may succeed in his claim for damages, as it is a case of loss to his business
  • Prakash can succeed in his claim for damages, as it is case of damage as a result of infringement of his legal right
Legal phrases are followed by four meanings. Choose the most appropriate option:
Autrefois convict -
  • Formerly convicted
  • Failed prosecution
  • To be convicted
  • Doubtful conviction
Which of the following, if true, would be a strong argument opposing the decision in the Govind case?
  • The police often monitor the movements of past convicts when they do not have any other leads.
  • Records show that once a person is convicted of an offence, they are highly unlikely to commit another offence.
  • Conducting surveillance on a person ensures that they would not commit an offence against public safety.
  • The government should not place any restrictions on the fundamental rights of citizens.
The Government introduces a new law that prohibits landlords from increasing the rent they charge for startups offices more than 10% in a year. Based on the information and arguments in the given passage, is the author likely to support such a law?
  • Yes, since this will reduce the time taken for regulatory compliance by startups.
  • Yes, since this provides startups stability and will ensure the reasonableness of rents in the long term.
  • No, since this increases startups regulatory obligations.
  • No, since this relates to an issue that startups do not currently face.
Which of the following is the author of the given passage most likely to agree with?
  • The Government should focus all its policies on making matters easier for startups, without regard to any other considerations.
  • The Government should try to achieve a balance between economic growth and protection of weaker and underprivileged sections of society, as well as of shared resources.
  • Systemic reforms are unimportant, and the Government should focus solely on easing startups regulatory compliance burden.
  • The most important problem that startups face is lack of access to space to operate their businesses, and so, the Government should focus all its policies on solving this problem.
The given passage suggests that administrative law of India has developed largely as a result of- 
  • statutes passed by the Parliament
  • decisions passed by Supreme Court and foreign courts
  • orders passed by various State governments
  • None of the above
Legal phrases are followed by four meanings. Choose the most appropriate option:
Lex loci
  • Domestic laws
  • Law of a place
  • Latin regualtions
  • Italian laws
Legal phrases are followed by four meanings. Choose the most appropriate option:
Perincuriam 
  • Mistaken identity
  • Mistaken decision
  • Supremacy of the Constitution
  • Supremacy of law
The aggrieved party, in case of misrepresentation or fraud by the other party can__.
Avoid but cannot rescind the contract
Accept contract but insist that he shall be placed in the position in which he would have been if the representation made had been true
Accept contract but cannot insist that he shall be placed in the position in which he would have been if the representation made had been true
Avoid or rescind the contract
Select the correct answer from the options given below-
  • 1 & 3
  • 1 & 2
  • 2 & 4
  • 3 & 4
A contract is an agreement enforceable at law, made between two or more persons, by which rights are acquired by one or more to acts or forbearances on the part of the other or others. This definition of contract is given by______.
  • Sir Fredrick Pollock
  • Salmond
  • Anson
  • Sibble
A husband promised to pay his wife a household allowance of Rs. 2,500 every month. Later, parties separated and the husband failed to pay the amount.
  • This is contract
  • This is not a contract
  • This is agreement enforceable by law
  • Wife should take divorce and marry with other person
The law may give the party aggrieved the option of getting out of his bargain. That is to say contract which is enforceable at the option of one party but not at the option of other party is known as_____.
  • Void contract
  • Void agreement
  • Voidable contract
  • illegal agreement
Ajeet, owner of an apple orchard, believes that all the apple trees in his orchard are fruit-bearing trees. However, he has no sufficient ground for his belief. Even then, Ajeet states to Baljeet that his orchard has all fruit-bearing trees. Induced by this statement, Baljeet purchases the orchard. Later on, it is found that only 50% trees are fruit-bearing. In this case Ajeet has made___.
  • Fraud
  • Misrepresentation
  • Coercion
  • Undue influence
As per Section 17, which of the following acts committed by a party to a contract with intent to deceive other party or induce him to enter into the contract will be treated as fraud?
(a) Knowingly making a false statement.
(b) Actively concealing a material fact.
(c) Making a promise without any intention of performing it.
Select the correct answer from the options given below -
  • (a)
  • (b)
  • (c)
  • All of the above
The facts of Henkel vs. Pape were : P wrote to H inquiring the price of rifles and suggested that he might buy as many asOn receipt of a reply, he wired to send 3 rifles. Due to the mistake of the telegraph clerk, the message transmitted to H was "send the rifles". H dispatched 50 rifles. There was______.
  • No contract between the parties
  • Contract between the parties
  • Contract between the parties and P is liable to pay for 50 rifles
  • Contract between the parties and P is liable to pay for 3 rifles
A contract is an agreement creating and defining obligations between the parties. This definition of contract is given by______.
  • Sir Fredrick Pollock
  • Salmond
  • Anson
  • Sibble
Which follow from application of the undermentioned legal principle:

LEGAL PRINCIPLE: Contract is an agreement freely entered into between the parties.

FACTUAL SITUATION: Tapan was a dealer in mustard oil. The Government of India by an order issued under the Essential Commodities Act, fixed the price of mustard oil, and also the quantity which a person can buy from the dealer. Tapan carried on his business under this order for a while, but he refused to pay sales tax on his sale transactions on the ground that these were not the contracts freely entered into by him.

DECIDE
  • Tapan would succeed because the price and quantity were not negotiated by him.
  • Tapan would not succeed because free consent between the parties was there despite the restriction on price and quantity.
  • He would succeed because the Government under the new order forced him to enter into contracts.
  • Both (A) and (C)
If promisee accepts late performance when time is essence of contract, then _____.
  • Promisee cannot claim compensation, at the time of acceptance
  • Promisee cannot claim compensation unless, at the time of acceptance that he intends to claim compensation for loss
  • Both (A) and (B)
  • Neither (A) nor (B)
A contract is said to be induced by where the relations subsisting between the parties are such that one of the parties is in a position to dominate the will of the other and uses that position to obtain an unfair advantage over the other.
  • Coercion
  • Fraud
  • Misrepresentation
  • Undue influence
A, B & C jointly promise to pay D Rs. 6,D releases A from his liability and files suit against B & C for the payment of debt. Decide.
  • B & C cannot recover anything from A as D releases A from his liability.
  • B & C can still recover Rs. 3,000 from A as his contribution.
  • B & C can still recover Rs. 2,500 from A as his contribution.
  • B & C can still recover Rs. 2,000 from A as his contribution.
A, B & C jointly promise to pay D Rs. 6,C is insolvent but his assets are sufficient to pay one half of his debts. Decide.
  • A is entitled to recover Rs. 2,000 from C and Rs. 2,000 from B.
  • A is entitled to recover Rs. 1,000 from C and Rs. 2,500 from B.
  • A is entitled to recover Rs. 3,000 from C and Rs. 3,000 from B.
  • A is not entitled to recover anything from C and B.
An estate is sold for arrears of revenue. As per the Law, the defaulter is prohibited from purchasing it. B agrees to purchase the estate and covey it back to A for the price which B has paid. The agreement is_____.
  • Legal
  • Valid
  • Voidable
  • Void
K, who is-trying to sell an unsound horse, forges a Veterinary Surgeons certificate stating the horse to be sound and pins it on the stable door. P comes to examine the horse but the certificate goes unnoticed by him. P buys the horse and finds later on the horse to be unsound.
  • P can avoid, the, agreement as it sufficient that K attempted to defraud by putting up the surgeons forged certificate as to the soundness of the horse
  • P cannot avoid the agreement as though K attempted to defraud by putting up the surgeons forged certificate as to the soundness of the horse, P was not influenced by it
  • P can avoid the agreement as it sufficient that K attempted to defraud by putting up the surgeons forged certificate as to the soundness of the horse and it is immaterial that P was influenced by it or not
  • P cannot avoid the agreement as agreement is valid one
Identify which of the following statement is true and which is false.
I. A void contract is one which is destitute of legal effects altogether.
II. An illegal contract has no legal effect as between the immediate parties to the contract, but has the further effect of tainting the collateral contracts with illegality.
Select the correct answer from the options given below-
  • Both Statement I and Statement II are true
  • Both Statement I and Statement II are false
  • Statement I is true but Statement II is false
  • Statement I is false but Statement II is true
When a party to a contract promises to do a certain thing at or before a specified time and fails to do such thing at or before a specified time, ______.
  • The contract becomes voidable at the option of the promisee
  • The contract becomes void
  • The contract is treated as illegal at the option of the promisee
  • Other party must carry out its obligations
If one of party to contract is ready to perform his part but other party is not ready to accept performance, it is known as _____.
  • Tender
  • Attempted performance
  • Allowed performance
  • (A) & (C)
Where a, debtor, owing several distinct debts to one person, makes a payment to him, either with express intimation implying, that the payment is to be applied to the discharge of some particular debt, the payment if accepted, must be applied accordingly.
  • There is no such provision in Indian Contract Act, 1872
  • The above statement is true
  • The above statement is false
  • None of the above
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, whether its recovery is or is not barred by the law in force for the time being as to the limitations of suits.
  • True
  • False
  • Partly true
  • Partly false
As per Section 124 of Indian Contract Act, 1872, a contract of _______ is a contract by which one party promises to save the other party from loss caused to him by the conduct of the promisor himself, or by the conduct of any other person.
  • Indemnity
  • Guarantee
  • Specific performance
  • Injunction
A supplies rice and wheat to the wife and children of B who is a lunatic. B has assets worth one lakh of rupees. Which of the following is correct in relation to this statement?
  • B is personally liable to A.
  • Contract is void ab initio. A cannot recover anything from B.
  • Contract is valid and A can recover the amount even if it exceed one lakh of rupees.
  • Contract is valid and A can recover the amount to the extent of assets of one lakh of rupees.
Under section 141, a surety is entitled to the benefit of every security which the creditor has against the principal debtor at the time when the contract of suretyship is entered into whether the surety knows of the existence of such security or not.
  • False
  • True
  • Partly true
  • None of the above
Tanu owes Richa Rs. 5,00,000 as follows:
Debt I2,00,000
Debt II1,50,000
Debt III1,00,000
Debt IV50,000
5,00,000
Tanu sends cheque for Rs. 2,00,000 without indicating towards which debt the amount should be adjusted. Richa can appropriate it _______.
  • Towards Debt II of Rs. 1,50,000 and Debt IV of Rs. 50,000
  • Towards Debt IV of Rs. 50,000, Debt Ill of Rs. 1,00,000 and Debt II of Rs. 50,000
  • Towards Debt I to IV in ratio of 20:15:10:5 i.e. 80,000,:60,000,:40,000,:20,000 respectively
  • All of the above
Nitin owes Baban Rs. 2,50,000 as follows:
Debt I1,00,000
Debt II75,000
Debt III50,000
Debt IV25,000
2,50,000
Nitin sends cheque for Rs. 1,00,000 stating that it shall be appropriated towards the first sum of Rs. 1,00,Baban shall appropriate it ____.
  • Towards: Debt II Rs. 75,000 and Debt IV Rs. 25,000
  • Towards Debt IV Rs. 25,000, Debt III Rs. 50,000 and Debt II Rs. 25,000
  • Towards Debt l to IV in ratio of 100:75:50:25 i.e. 40,000, 30,000, 20,000, 10,000 respectively
  • Towards Debt I as indicated by Nitin
A took a loan from Punjab National Bank to the extent of Rs. 2,50,B guarantees the repayment of this loan. Later, A secures another loan of Rs.1,50,000 from the same bank. He tenders a sum of Rs. 2,00,000 to the bank without any advice as to its manner of appropriation. Bank uses this money towards the settlement of loan of Rs. 1,50,000 plus interest and remaining towards the loan guaranteed by B. A objects to this. Decide.
  • Bank must appropriate it towards first loan of Rs. 2,50,000.
  • Bank must appropriate it towards interest of first loan and remaining towards principle of first loan of Rs. 2,50,000.
  • A fails to indicate the manner of appropriating and so the bank entitled to appropriate it in any manner it likes towards any lawful debt. Therefore, A has no cause to object.
  • Bank must appropriate it towards second loan of Rs. 2,50,000.
A and B go into a shop. A says to the shopkeeper, "Let B have the goods and if he does not pay, I will". This is a _______.
  • Contract of guarantee
  • Contract of Indemnity
  • Contract of Specific performance
  • Contract of wagering
Where each party must perform his promise independently and irrespective of the fact whether the other party has performed, or willing to perform, his promise or not, such reciprocal promises fall under the category of ______.
  • Mutual arid concurrent
  • Conditional and dependent
  • Mutual and independent
  • Both (A) and (B)
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