Tag: business law and contract act

Questions Related to business law and contract act

Choose the correct answers from the alternatives given
Sometimes, a party is entitled to claim compensation in proportion to the work done by him. It is possible by a suit for _____________.

introduction of business laws business law and contract act business studies

  1. damages

  2. injunction

  3. quantum meruit

  4. none of these

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Correct Option: C

ad information means

introduction of business laws business law and contract act business studies

  1. From the beginning

  2. To the same thing

  3. To infinity

  4. From the base

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Correct Option: C

The chief sources of English law are

introduction of business laws business law and contract act business studies

  1. Common law

  2. Law merchant

  3. Principle of equity

  4. Common law, law merchant, principle of equity & statue law

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Correct Option: D

ad volorem menas

introduction of business laws business law and contract act business studies

  1. According to value

  2. To the same thing

  3. To infinity

  4. Hear the other side

Show answer
Correct Option: A

State with the reasons whether the following statements are True or False:
Regret letter is often sent to the members.

introduction of business laws business law and contract act business studies

  1. True

  2. False

Show answer
Correct Option: A
Explanation:

 (i) A regret is a letter which informs an applicant that the company is unable to allot share.
(ii) Every applicant who applies for shares of the company has to pay some amount of money the time of application of shares.
(iii) In case the applicant is not alloted shares by the company, it is the duty of the company refund the amount already paid.
(iv) This refund order or cheques must be sent along with the regret letter wherein the regret left clearly indicates the company's inability to allot a certain number of shares to an applicant.
(v) Hence, reglet letter is sent to those applicants whom the company does not allot any share.

Choose the correct answers from the alternatives given
Which of the following statements is not correct?

introduction of business laws business law and contract act business studies

  1. Right of one party is the obligation of another party

  2. Every contract is an agreement, but every agreement is not contract

  3. Quantum meruit means void from the beginning

  4. Social agreements are not legally enforceable

Show answer
Correct Option: C

Principle Everybody is under a legal obligation to take reasonable care to avoid act or omission which he can foresee would injure his neighbor. The neighbor for this purpose is any person whom he should have in his mind as likely to be affected by his act.
Factual Situation Ram, while rushing to board a moving train, pushed Shyam, who was walking along with a heavy package, containing fire crackers. As a result, the package slipped from his hand and crackers exploded injuring a boy standing close by. A suit was filed against Ram, by the boy, claiming damages.
Decision

introduction of business laws business law and contract act business studies

  1. Ram is not liable, because he did not know anything about the contents of the package.

  2. Ram is not liable, because Shyam should not have earned such a package in a crowded place like railway station

  3. Ram is liable, because Ram is under an obligation not to push Shyam

  4. None of the above

Show answer
Correct Option: A
Explanation:

In the given case although Ram is under a legal obligation to take care to avoid act or omission which he can FORSEE would injure his neighbor but presently he did not push Shyam on purpose, further he could not FORESEE that Shyam is carrying crackers which might explode. Thus Ram is not liable.

Damodar Valley Corporation is ___________.

introduction of business laws business law and contract act business studies

  1. company formed under Companies Act

  2. company formed under Special Act of Parliament

  3. a co-operative society

  4. a partnership firm

Show answer
Correct Option: B
Explanation:

The Damodar Valley Corporation (DVC) is a governmental organization which operates several power stations in the Damodar River area of West Bengal and Jharkhand states of India.It was formed through a special legislation in the Indian Parliament in 1948 through DVC Act of 1948.

Which of the following is not normally one of the reasons for a change in an investor's circumstances?

introduction of business laws business law and contract act business studies

  1. Change in market conditions

  2. Change in legal considerations

  3. Change in time horizon

  4. Change in tax circumstances

Show answer
Correct Option: B

Consists of legal proposition(s)/principle(s) (herein after referred to as 'principle') and facts. Such principles may or may not be true in the real and legal sense, yet you have to conclusively assume them to be true for the purposes of this Section. In other words, in answering these questions, you must not rely on any principle except the principles those are given herein below for every question.
Further, you must not assume any facts other than those stated in the question. The objective of this section is to test your interest towards study of law, research aptitude and problem solving ability, even if the 'most reasonable conclusion' arrived at may be absurd or unacceptable for any other reason. It is not the objective of this section to test your knowledge of law.
Therefore, to answer a question, principle is to be applied to the given facts and to choose the most appropriate option.
Principle: According to Sec. 2 of the Industrial Disputes Act, 1947, Industrial dispute means any dispute or difference between employers and employers or between employers and workmen or between work men and workmen, which is connected with the employment or non-employment or the terms of employment or with the conditions of labour of any person'.
Facts: The employees of DK Enterprises met the management and requested half a day leave to allow them to celebrate a lunar eclipse, which was going to happen two days later. The management refused the request. Does this situation amount to an 'industrial dispute?

introduction of business laws business law and contract act business studies

  1. As the difference of opinion between the employees and employer is on declaration of holiday it amounts to an issue connected with employment or with the terms of employment and hence, an industrial dispute.

  2. No as Lunar eclipse is unconnected with employment.

  3. Yes, because there is some difference of opinion it would be an industrial dispute.

  4. No as declaring holidays is a prerogative of the employer. Sono industrial dispute.

Show answer
Correct Option: A
Explanation:
According to the principle given, stating Section 2 of the Industrial Disputes Act 1947, if the nature of a dispute which arises between employers and employers or employers and workmen and workmen or between workmen and employers is related to employment or non- employments or terms of employment or labour conditions of any person will be considered as an Industrial Dispute.
According to the facts given, the dispute between the employees and employer was related to the declaration of a holiday which is an issue related to employment of employees or terms of employment and thus that is the nature of the dispute.
Leading Case: M.M. Wadia Charitable Hospital vs Dr. Umakant Ramchandra Warerkar (1997 (75) FLR 814, (1997) IILLJ 549 Bom)