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
