Tag: business law and contract act

Questions Related to business law and contract act

In agreements of purely domestic/ social nature, the intention of the parties to create legal relationship is _______.

  1. to be proved to the satisfaction of the Court

  2. presumed to exist

  3. required to the extent of consideration

  4. not relevant at all


Correct Option: A

F promised to pay his son S a sum of Rs. 1 lakh if S passed C.A exam in the first attempt. S passed the exam in the first attempt, but F failed to pay the amount as promised. S files a suit for recovery of the amount. State whether S can recover the amount under the Indian Contract Act, 1872

  1. S can sue F for not honouring his words

  2. S has to pay Rs. 1 lakh to F

  3. S has no remedy against F

  4. S has to write exam again, to claim the reward


Correct Option: C

S sent his servant L, to trace his missing nephew. Later, S offered a reward for anyone who finds out his missing nephew. L, ignorant of the announcement, traced the boy. Subsequently, he claimed the reward, when he came to know of it. L, is not entitled to the reward since ____________.

  1. no reward can be given for tracing missing persons

  2. offer was not made to an ascertained person

  3. it is the servant's duty to help his master

  4. as communication of offer was not there


Correct Option: D

A is indebted to B. He sells a trolley to C. C promises to pay all debts of A to B. If C falls to pay, B has no right to sue C because :

  1. C is a stranger to consideration

  2. C is stranger to contract

  3. Both

  4. None


Correct Option: B

A promise to pay, wholly, or in part, a debt which is barred by law of limitation can be enforced if ______.

  1. it is in wrting

  2. is signed by the Debtor or his authorized agent

  3. either (a) or (b)

  4. both (a) and (b)


Correct Option: A

Mohan invited Sohan for a dinner. Sohan, by expending Rs 200, went to Mohan's house. By the time Sohan reached Mohan's house, it was locked and Sohan stayed in a Hotel. Sohan _______.

  1. can sue Mohan for expenses of Rs 200

  2. cannot sue against Mohan

  3. can sue Mohan for the total charges

  4. None of the above


Correct Option: B

A Mortgage was executed in favor of a Minor. Can the Minor get a decree for the enforcement of the Mortgage?

  1. True

  2. False


Correct Option: A

A person who is usually of unsound mind, but occasionally of sound mind _______.

  1. may enter into a contract when he is of sound mind

  2. may not make a contract even when he is of sound mind

  3. cannot enter into a contract at all

  4. can enter into a contract any time but can not plead innocence


Correct Option: A

N threatens L's wife that their son M would be abducted if L did not lease out their land to him (N).
This is an example of ______.

  1. Undue influence

  2. Coercion

  3. Duress

  4. Fraud


Correct Option: B

A sum of money was agreed to be paid to the father in consideration of his giving his daughter in marriage. agreement is void on grounds of being __________.

  1. restraint of marriage

  2. marriage brokerage contract

  3. restraint of personal liberty

  4. restraint of legal proceedings.


Correct Option: B