Tag: business law and contract act

Quizzes (5) Questions (176)

Questions Related to business law and contract act

Multiple choice commerce performance of contract who will perform the contract performance, discharge, breach and remedies of contract business law and contract act

The essential features of a bailment are

  1. There is a contract

  2. There is change in possession of goods

  3. The ownership is not transferred

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

Bailment involves the delivery of goods for a specific purpose, a contract (express or implied), transfer of possession without transfer of ownership, and the return of goods once the purpose is fulfilled.

Multiple choice commerce performance of contract who will perform the contract performance, discharge, breach and remedies of contract business law and contract act

A person who finds goods belonging to another and takes them into his custody, is subject to the same responsibility as a:

  1. Thief

  2. Trespasser

  3. Bailee

  4. True Owner
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A finder of lost goods is treated as a bailee under the law, meaning they have a responsibility to take care of the goods and find the true owner.

Multiple choice commerce performance of contract who will perform the contract performance, discharge, breach and remedies of contract business law and contract act

M, by a gift deed transferred certain property to her daughter, with a direction that daughter should pay an annuity to M's brother, as had been done by M. On the same day, the daughter executed a deed in writing in favour of M's brother, agreeing to pay annuity. Afterwards, she declined to fulfil her promise saying that no consideration had moved from her uncle. Which of the following statements is correct?

  1. The daughter is bound to pay annuity

  2. There is no valid consideration in this contract

  3. M's brother is a third party to the contract and cannot sue

  4. The daughter is not bound to pay annuity
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Even if consideration did not move from the uncle, the daughter is bound because the consideration moved from the mother (M) to the daughter, and the uncle is a beneficiary of the contract.

Multiple choice commerce performance of contract who will perform the contract performance, discharge, breach and remedies of contract business law and contract act

The liability of a surety:

  1. May be less than that of the debtor

  2. May be more than that of the debtor

  3. Always remains the same as that of a debtor

  4. Depends upon the judgment of court
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The liability of a surety is co-extensive with that of the principal debtor unless the contract provides otherwise.