Tag: business studies

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Questions Related to business studies

Multiple choice introduction of business laws business law and contract act business studies

Choose the correct answers from the following alternatives given
False representation does not amount to misrepresentation where:

  1. representation is made with the knowledge of its falsehood

  2. representation is made without the knowledge of its falsehood

  3. representation was true at the time when it was made but becomes untrue before the contract is entered into and this fact was not known to the party who made the representation

  4. none of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Multiple choice introduction of business laws business law and contract act business studies

An advertisement to pay reward to anyone who traces the missing boy of the advertiser is _____________.

  1. an express offer

  2. an implied offer

  3. a general offer

  4. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Section 2(a) defines an offer as, “a proposal made by one person to another to do an act or abstain from doing it.” General offer is made to the public in general or society or community as a whole. Specific offer is made to one person or group of persons.

Multiple choice introduction of business laws business law and contract act business studies

Choose the correct answers from the following alternatives given
A person who is mentally deranged due to some mental strain or other personal experience and suffers from intermittent intervals of sanity and insanity is

  1. Idiot Person

  2. Lunatic Person

  3. Intoxicated Person

  4. All of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A person who suffers from intermittent periods of sanity and insanity is legally classified as a lunatic.

Multiple choice introduction of business laws business law and contract act business studies

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Contracts made before war with an alien enemy which are against public policy are:

  1. suspended and are revived after the war is over.

  2. dissolved

  3. not affected at all

  4. void ab initio
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Contracts with an alien enemy that are against public policy are dissolved, as they cannot be performed during the war.

Multiple choice introduction of business laws business law and contract act business studies

LEGAL PRINCIPLE: When one person signifies to another his willingness to do or abstrain from doing anything, with a view to obtaining the assent of that person to such an act or abstinence, he is said to have made a proposal.
FACTUAL SITUATION: Ram sends a telegram to Sohan, writing: "Will you sell me your Rolls Royce Car? Telegram the lowest cash price." Sohan also replied by telegram: " Lowest price for car is $Rs. 20$ lakh." Ram immediately sent his consent through telegram stating. " I agree to buy the car for $Rs. 20$ lakh asked by you." Sohan refused to sell the car.

  1. He cannot refuse to sell the car because the contract has already been made

  2. He can refuse to sell the car because it was only invitation to offer and not the real offer

  3. It was not a valid offer because willingness to enter into a contract was absent

  4. It was not a valid contract as offer and acceptance is conveyed through telegram
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

When one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that to such act or abstinence, he is said to make proposal. It was just invitation to offer, not the real offer. Hence, Sohan can refused to sell the car.

Multiple choice introduction of business laws business law and contract act business studies

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Who among the following is not disqualified by law to enter in to contract?
1. A major person    
2 . A lunatic    
3. Insolvent person 
4.  Diplomatic staff of foreign states

  1. 1 & 2

  2. 2 & 3

  3. 3 & 4

  4. 1 & 4
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A major person is competent to contract. Diplomatic staff of foreign states are generally immune from legal proceedings in domestic courts, making them effectively disqualified from being sued for breach of contract. Lunatics and insolvent persons are legally disqualified from entering into valid contracts.

Multiple choice introduction of business laws business law and contract act business studies

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Claim for Quantum Meruit cannot arise in case of _________.

  1. Void Agreements

  2. Void Contracts

  3. Non-Gratuitous Act

  4. Gratuitous Act
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Quantum Meruit refers to payment for work done. It cannot arise in a gratuitous act because there is no expectation of payment or legal obligation to pay for services rendered voluntarily.

Multiple choice introduction of business laws business law and contract act business studies

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The basis of quasi contractual relations is the________________.

  1. existence of a valid contract between the parties

  2. prevention of unjust enrichment at the expense of others

  3. Provisions contained in Section 10 of the Contract Act

  4. Existence of a voidable contract between the parties
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Quasi-contracts are not true contracts but are legal obligations imposed by law to prevent one party from being unjustly enriched at the expense of another. This principle is the foundation of quasi-contractual liability.

Multiple choice introduction of business laws business law and contract act business studies

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Sometimes, a party is entitled to claim compensation in proportion to the work done by him. It is possible by a suit for _____________.

  1. damages

  2. injunction

  3. quantum meruit

  4. none of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Quantum meruit is a Latin phrase meaning as much as he has earned. It is a legal remedy that allows a party to claim compensation in proportion to the work they have actually performed when a contract is discharged or found to be void.