CBSE Questions for Class 12 Commerce Legal Studies Topics Of Law Quiz 9 - MCQExams.com

In commercial and business agreement, the intention of the parties to create legal relationship is______.
  • To be proved to the satisfaction of Court
  • Presumed to exist
  • Required to the extent of consideration
  • Not relevant at all.
In a social agreement, the intention of the parties to create legal relationship is_____.
  • To be proved to the satisfaction of court
  • Presumed to exist
  • Required to the extent of consideration
  • Not relevant at all
A invites B for his sons wedding. B accepts the invitation. In this case, there is ________.
  • Legal agreement
  • Social agreement
  • Legal obligation on the part of B to attend wedding ceremony
  • (A) & (C)
Law of contracts covers_____.
I. Personal obligation
II. Private obligation
III. Contractual obligation
IV. Obligation imposed by third parties

Select the correct answer from the options given below-
  • I, ll & IV only
  • II, III & IV only
  • III only
  • III & IV only
The law of contract is nothing but_____.
  • A child of commercial dealing
  • A child of religion
  • A child of day to day politics
  • A child of economics
Contract = Agreement + _____.
  • Enforceability by law
  • Enforceability by parties
  • Enforceability by parliament
  • All of the above
Mistake of fact may be_______.
  • Mistake of law
  • Unilateral mistake
  • Vertical mistake
  • Horizontal mistake
A _______is one which is destitute of all legal effects and not enforceable from the beginning itself.
  • Void agreement
  • Void contract
  • Voidable agreement
  • Voidable contract
A void agreement______.
  • Cannot be enforced
  • Confers no rights on either party
  • Can be enforced in certain cases and may confer rights if Court direct.
  • Cannot be enforced and confers no rights on either party
The chief flaw in contract is/are_______.
  • Mistake
  • Presentation
  • Honesty
  • All of the above
An agreement with or by minor is_____.
  • Voidable at the option of minor
  • Void ab initio
  • Valid
  • Illegal
Mistake of law maybe______.
  • Mistake of law of country
  • Mistake of foreign law
  • (A) or (B)
  • None of the above
The chief flaw in contract is/ are____.
Fraud
Consent
Undue influence
Coercion
Mistake
Select the correct answer from the options given below -
  • 1, 2, 3 & 4
  • 2, 3, 1 & 5
  • 1, 3 & 4
  • 5, 4, 3 & 1
The chief flaw in contract is/are_____.
  • Illegality
  • Impossibility
  • Incapacity
  • All of the above
The agreement may be treated as of no effect and it will then be known as_____.
  • Void contract
  • Void agreement
  • Voidable contract
  • Illegal agreement
Any contract beyond the power of Charter or MOA is_____.
  • Intra vires and valid
  • Ultra vires and void
  • Intra vires and void
  • Ultra vires and valid

Where both the parties to an agreement are under mistake as to matter of fact essential to the agreement, there is____.
  • Unilateral mistake
  • Mistake of foreign law
  • Bilateral mistake
  • Mistake as to identity of person
When in a contract only one of the parties is at mistake, it is called as_____.
  • Unilateral mistake
  • Mistake of foreign law
  • Bilateral mistake
  • Mistake as to Identity of person
________is a false statement which the person making it honestly believes, to be true.
  • Fraud
  • Misrepresentation
  • Coercion
  • Undue influence
When one of the parties to contract commits misrepresentation or fraud, contract is _______.
  • Voidable
  • Void at the option of party misrepresented or defrauded
  • Illegal at the option of party misrepresented or defrauded
  • Unlawful
When there is mistake of law of foreign country, agreement is______.
  • Void
  • Valid
  • Voidable
  • Illegal
Where both parties believe the subject matter of the contract to be in existence, but in fact, it is not in existence at the time of making the contract, there is_______.
  • Mistake as to quantity of the subject matter
  • Mistake as to existence of the subject matter
  • Mistake as to quality of the subject matter
  • Mistake as to identity of particular person
Where there is mistake as to existence of the subject matter, the contract is______.
  • Valid
  • Voidable
  • Void
  • illegal
The law of contract in India is contained in _______________.
  • Indian Contract Act, $$1862$$
  • Indian Contract Act, $$1962$$
  • Indian Contract Act, $$1872$$
  • Indian Contract Act, $$1972$$
Mistake as to identity of the subject matter, the contract is______.
  • Valid & enforceable
  • Voidable & enforceable
  • Void and not enforceable
  • Valid and not enforceable
In order to avoid a contract on the ground of misrepresentation, it is necessary to prove that______.
  • There was no representation or assertion
  • Any assertion made has induced the party aggrieved to enter into the contract
  • The assertion was related to a matter of fact
  • All of the above
_______ may lead to prosecution for an offence of cheating under the Indian Penal Code.
  • Fraud
  • Misrepresentation
  • True presentation
  • None of the above
In which of following cases, silence amounts to fraud?
  • If having regard to the circumstances of the case, it is the duty of the person keeping silence to speak
  • Where silence is, in itself, equivalent to speech
  • If seller fails to inform the buyer as to a latent defect his silence amounts to fraud
  • All of the above
A minor's liability for 'necessaries' supplied to him _______________.
  • is for the benefit and no returns are expected
  • is against minor's property only
  • does not arise at all
  • arises if minor gives a promise for it
The chief ingredient(s) of a fraud is/are_____.
  • A false representation or assertion
  • Made with the intention that it should be acted upon
  • The representation must have actually induced the other party to enter into the contract and so deceived him
  • All of the above
When a person is compelled to enter into a contract by the use of force is said to be?
  • Fraud
  • Undue influence
  • Coercion
  • Mistake
In ______, the plaintiff can avoid or rescind the contract. In_____, the plaintiff can claim damages as well.
  • Fraud, true presentation
  • Misrepresentation, fraud
  • Fraud, misrepresentation
  • None of the above
______ is an untrue statement made knowingly or without belief in its truth or recklessly, carelessly, whether it be true or false with the intent to deceive.
  • Fraud
  • Misrepresentation
  • Coercion
  • Undue influence
Fraud implies intent to which is lacking if it is misrepresentation.Decide.
  • Deceive, innocent
  • Innocent, innocent
  • Deceive, Deceive
  • Innocent, Deceive
In order to avoid a contract on the ground of misrepresentation, it is necessary to prove that_____.
  • There was a representation or assertion
  • The statement was not a mere opinion or hearsay
  • The statement was made with an honest belief in its truth
  • All of the above
Which of the following agreements have been expressly declared to be void?
  • Agreements made under a mutual mistake of fact
  • Agreement in restraint of marriage
  • Wagering agreements
  • All of the above
Finder of goods is treated as _______.
  • Owner against whole world
  • Owner if incurs more than 1/3rd expenses of the value of goods found
  • Owner against whole world except true owner
  • Owner against the true world
Legal Principle: An agreement made with the intention of entering into legal relationship gives rise to a contract.
Factual Situation: Two firms entered into a written contract for the sale and purchase of tissue paper. The agreement contained a clause to the effect that 'this agreement is not entered into, nor is this memorandum written, as a formal or a legal document, and shall not be subject to legal jurisdiction in the law courts'. Since the goods were not delivered, the buyers brought an action for non-delivery.
Issue: Are the sellers liable? 
  • The sellers are liable, as they had entered into a written agreement.
  • The sellers are not liable, as there was no contract as the parties never intended to create legal relationship because they had clearly mentioned that their agreement is not a legal document nor a memorandum nor subject to the jurisdiction of law courts.
  • The firm may make mutual adjudication.
  • None of these.
Which of the following relationships raises presumption of undue influence?
  • Religious adviser & disciple
  • Doctor & patient
  • Solicitor & client
  • All of the above
Undue influence is of______ character.
  • Moral
  • Physical
  • Illegal
  • Moral as well as physical
Which of the following relationships raises presumption of undue influence?
(i) Parent & child
(ii) Guardian & ward
(iii) Debtor & creditor
(iv) Trustee & beneficiary
(v) A person & his close friend
Select the correct answer from the options given below -
  • (i), (iii) & (iv)
  • (ii), (v) & (iii)
  • (ii), (iii) & (v)
  • (iv), (i) & (ii)
The principles to be applied to transactions with pardanashin woman are founded on equity and good conscience and accordingly a person who contracts with pardanashin woman has to prove that_____.
  • No undue influence was used
  • She had free and independent advice
  • She had fully understood the contents of the contract and exercised her free will
  • All of the above
Which of the following relationship does NOT raise presumption of undue influence?
  • Fiance & fiancee
  • Trustee & beneficiary
  • Landlord & tenant
  • Parent & child
When there is undue influence, contract is_____.
  • Void
  • Voidable at option of one party
  • Voidable at option both parties
  • None of the above
Coercion is mainly of _____ character.
  • Moral
  • Physical
  • Illegal
  • Moral as well as physical
A threatens to kill B, if he does not lend Rs. 1, 00,000 to him. B agreed to lend the amount to A. In relation to this case, which of the following is correct?
  • A employs coercion on B
  • Contract is voidable at the option of B
  • A must restore back the amount lend to B
  • All of the above
Threat to commit suicide________.
  • Amounts to coercion
  • Amounts to undue influence
  • Punishable under Indian Penal Code, 1860
  • (A) and (C) of the above
Criminal act is involved in _____.
  • Mistake
  • Misrepresentation
  • Coercion
  • Both (B) & (C)
Atul, Bhuvan, Chinmay enter into an agreement to cheat people and to divide the gain acquired, but later Chinmay refuses to act, which of the following is correct?
  • As agreement is already entered into, Chinmay must help Atul & Bhuvan for cheating people.
  • Atul & Bhuvan can continue to cheat people and divide the gain between them.
  • Agreement can be enforced against Chinmay.
  • Agreement is: void and cannot be enforced, as the object is fraudulent.
If the illegal part can be severed from legal part of covenant, the contract is____.
  • Void in respect of illegal part
  • Void is respect of legal part also
  • Altogether void
  • Fully void
0:0:1


Answered Not Answered Not Visited Correct : 0 Incorrect : 0

Practice Class 12 Commerce Legal Studies Quiz Questions and Answers