AIMA Online Assignment Business Law GM06

AIMA Online Assignments

Business Law & Corporate Governance (GM06)

NOTE: The answers are boldly marked.

Question 1:- The legal term for tangible property is:       
a)   trust                       
b)   chattel                       
c)   mortgage                       
d)   private property                       

Question 2:- Law is enforced by               
a)   Parliament                       
b)   Legislature                       
c)   Executive                       
d)   Society                       

Question 3:- Ignorance of Law is:             
a)   a good excuse                       
b)   cannot be excused                       
c)   no excuse                       
d)   always an excuse                       

Question 4:- Substantive Law defines:  
a)   methods by which law is made                       
b)   the legal rights/ obligations                        
c)   principle underlying a decision                       
d)   decision of the judge                       

Question 5:- An artificial person is also called:    
a)   Corporation                       
b)   Company                       
c)   Office                       
d)   legal entity                       

Question 6:- An offer made to a specific person is called:             
a)   express offer                       
b)   implied offer                       
c)   specific offer                       
d)   general offer                       

Question 7:- An agreement of a purely social nature is: 
a)   a valid contract                       
b)   a void contract                       
c)   a voidable contract                        
d)   not a contract                       

Question 8:- The parties to a contract must be competent to contract. The flaw in capacity to contract may be due to-   
a)   minority                       
b)   lunacy                       
c)   idiocy                       
d)   any of the three mentioned as options A,B,C                       

Question 9:- At the time of entering into a contract, parties must be thinking of the same thing in the same sense. This is also known as: 
a)   intention to create a legal relationship                       
b)   lawful consideration                       
c)   consensus-ad-idem                       
d)   free and genuine consent                       

Question 10:- Which option is a true statement?              
a)   All contracts must be reduced to writing                       
b)   No contract need to be in writing                       
c)   If a particular type of contract is required by law to be in writing it must comply with the necessry formalities                        
d)   None of the given Options is correct                       

Question 11:- In the context of consideration for a contract, the Rule is that:      
a)   Consideration need not be adequate                       
b)   Consideration must be real and competent                       
c)   both the options i.e. A and B are correct                        
d)   none of the options is correct                       

Question 12:- A saves B's life. B promises to pay A Rs. One lac out of gratitude.  
a)   There is no consideration, hence the contract is void                       
b)   It is a void contract as Rs. One lac is too little for saving life.                       
c)   it is a valid contract because the consideration for B's promise is present consideration                       
d)   it is a valid contract because the consideration for B's promise is past consideration                       

Question 13:- A dealer enters into an agreement to sell a smuggled item to X. import of such type of goods is illegal. A refuses to deliver the item as promised. What are the rights of X?           
a)   sue the dealer for breach of a contract.                       
b)   wait till such imports become legal and then sue the dealer.                        
c)   it is a voidable contract.                       
d)   it is a void contract                       

Question 14:- A' signed a promissory note which he was told was a letter of guarantee. Will he be bound to honor the Promissory Note?           
a)   Yes, he affixed his signatures on the promissory note                       
b)   No, he did not know how to sign properly.                       
c)   He is not bound as there was no consent to the agreement entered into by him                        
d)   He could have made a verbal agreement                       

Question 15:- With respect to causing any person to enter into an agreement, "Coercion" is-     
a)   the committing any act forbidden by Indian Penal Code                       
b)   threatening to commit any act forbidden by Indain Penal Code                       
c)   unlawful detaining any property to the prejudice of any person                       
d)   all the three options under A, B, and C                       

Question 16:- The party to contract aggrieved or wronged by 'misrepresentation' can:   
a)   avoid the performance of the contract                       
b)   avoid the contract and sue for damages                       
c)   neither avoid the contract, nor can he sue for damages                       
d)   none of the given option is correct                       

Question 17:- A clause in agreement provides that no action should be brought after two years. The Limitation Act, 1963, however an action for breach of contract may be brought within three years from the date of breach. In view of given facts, the correct position is:      
a)   parties are free to agree upon any terms they like, the clause in the Agreement is operative.                       
b)   the clause in the Agreement is valid, as there is no ambiguity in the language, and both the parties have agreed upon it                       
c)   the clause in the Agreement is void, as it is opposed to the provisions of the Limitation Act                        
d)   none of the given option is correct                       

Question 18:- A agrees to sell to B 100 tons of oil.             
a)   the agreement is void for uncertainty, as it does not show what kind of oil was intended                       
b)   this agreement is valid                       
c)   this agreement s voidable at the option of A                       
d)   this agreement is voidable at the option of B                       

Question 19:- A agrees to pay B Rs. Ten lacs if B's house is burnt.              
a)   It is not a valid agreement                       
b)   it is a void agreement being 'uncertain'                       
c)   it is a void agreement being 'contingent 'upon happening or non-happening of the event                       
d)   it is a valid 'contingent' contract                       

Question 20:- Quasi contract' is a situation in which law imposes upon one person an obligation similar to that which arises from a true contract. It is based on natural justice. In view of these provisions which of the option is a quasi-contract?   
a)   A supplies B, a lunatic, with necessaries suitable to his condition in life                       
b)   A tradesman leaves goods at B's house by mistake                       
c)   a party pays to another money by mistake, which is not due to him                       
d)   all the three cases mentioned under varios options ar quasi contracts                       

Question 21:- the phrase “quantum meruit” means:      
a)   as much as earned                       
b)   to each according to his need                       
c)   to each according to his condition                       
d)   none of the options is correct                       

Question 22:- Section 10 of the Contract Act enumerates some essentials of a valid contract. Which if the options is thus enumerated in Section 10?         
a)   agreements made by free consent of parties, competent to contract                       
b)   agreements made for a lawful consideration and with lawful object                       
c)   agreements not expressed declared by law to be void                       
d)   All given the options are enumerated in Section 10                       

Question 23:- A promisor offers performance of his obligation under the contract, at the proper time and place, but the promisee refuses to accept the performance. This is called:        
a)   Tender                       
b)   Attempted performance                       
c)   both A, and B options are correct                        
d)   none of the options is correct                       

Question 24:- A contract is deemed to have become impossible of performance under the circumstances that the subject matter of a contract is destroyed for no fault of the promisor. Such circumstances are called:     
a)   inherent impossibility                       
b)   supervening impossibility                       
c)   Expected impossibility                       
d)   all given options are correct                       

Question 25:- A contract is discharged by death of the promisor, by insolvency of the promisor, by entering into a new contract where inferior rights under the previous agreement are merged in the new one; such discharge of a contract is called: discharge by        
a)   Operation of law                       
b)   by breach                       
c)   supervening impossibility                       
d)   all given options are correct                        

Question 26:- A contract to perform the promise or discharge the liability of a third person in case of his default is called:               
a)   a contract of insurance                       
b)   a contract of guarantee                       
c)   a contact of bailment                       
d)   none of the given options is correct                       

Question 27:- In a contract of guarantee the person for whom the guarantee is given is called:  
a)   surety                       
b)   principal debtor                        
c)   creditor                       
d)   none of the options is correct                       

Question 28:- Which of the options is correct, about a contract of guarantee?    
a)   a contract of guarantee is not a cotract 'uberrimae fidei'                       
b)   the creditor must inform the surety about all his previous dealings with the debtor                       
c)   both options A and B are correct                       
d)   none of the options is correct                        

Question 29:- Which of the options is correct, about a contract of guarantee?    
a)   a contract of guarantee may either be oral or in writing                       
b)   a contract of guarantee must be in writing                       
c)   both options A and B are correct                       
d)   none of the options is correct                       

Question 30:- which of the options is correct with regard to rights of a creditor ina contract of guarantee?            
a)   all remedies against the principal debtor should be exhausted by the creditor before proceeding against the surety                       
b)   the creditor is entitled to demand payment from the surety as soon as the principal debtor refuses to pay or makes a default in payment                       
c)   both options A and B are correct                       

d)   none of the options is correct

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