Tag: business law and contract act

Questions Related to business law and contract act

To claim reimbursement of money paid on behalf of another person, which of the following is not required? 

  1. There should be some legal or other coercive process compelling the payment.

  2. Original liability should be of another person.

  3. Payment must be made to a third party to whom the another party was liable.

  4. The payment must be voluntary


Correct Option: D

In case of necessaries supplied to a person incompetent to contract, which of the following is true?

  1. Only the property (movable and immovable) of the incapable person shall be liable.

  2. The incapable person cannot be held liable personally.

  3. Where the incapable person does not own any property, nothing shall be payable.

  4. All of the above


Correct Option: D

Surety may be discharged from liability:

X. By notice of revocation of guarantee
Y. On the failure of payment by the main creditor
Z. If the creditor does any act which is against the rights of the surety
Correct option is ____.

  1. X and Y

  2. Y and Z

  3. X and Z

  4. X, Y and Z.


Correct Option: C

A person incurred expenses of RS. 5,000 for the necessaries supplied to a Minor. Which of the following is true?

  1. Cannot claim the expenses.

  2. Minor can be held liable for the necessaries supplied to him.

  3. It is not a valid claim.

  4. None of the above


Correct Option: B

X is a minor who had broken his left arm then doctor had treated him, how can the doctor regain his cost of treatment?

  1. Minor can be held liable for the necessities supplied to him.

  2. The Doctor cannot recover his fees because the agreement with minor is void-ab-initio.

  3. Contract has to be entered into by the minor's parent to make it valid and to recover fee.

  4. none of the above


Correct Option: A

A minor got injured in his left leg in Football match. He engaged a doctor for treatment of leg. The doctor's claim for his services under the Indian Contract Act 1872 is _______.

  1. Valid

  2. Invalid

  3. Void

  4. Illegal


Correct Option: A

F, a money lender, advances RS. 10,000 to J, an agriculturist and by undue influence, induces J to sign a bond for Rs. 20,000 with interest at 6% p.m. The court may set the Bond aside, ordering J to repay only Rs. 10,000 at such nominal interest as it may deem fit.

  1. True

  2. False


Correct Option: A

Claim for necessaries of life supplied to a minor can be enforced against _________.

  1. the Minor's property or estate

  2. any relative

  3. the minor personally on attaining majority

  4. the guardian, if any, of the minor


Correct Option: A

An illiterate old woman made a gift deed of practically her entire property to her nephew who managed her affairs. The gift can be set aside on the grounds of -

  1. Mistake

  2. Coercion

  3. Fraud

  4. Undue Influence


Correct Option: D
Explanation:

As the nephew may have influenced her to make a contract under such circumstances the contract is invalid.

X bought shares in a Company on the faith of a prospectus that contained an untrue statement as to the Directorship of J. X had never heard of J and hence such statement was immaterial from his view point. X claimed damages for fraud. His claim will be dismissed on the ground that ______.

  1. there was no fraud at all

  2. fraud in Company Prospectus is not covered by Indian Contract Act

  3. the untrue statement had not induced him to buy the shares

  4. all of the above


Correct Option: C