Mercantile Law 2002-Solved MCQs ICAR NET Set 1

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(1) Portage Ltd wishes to alter its memorandum to state that all of the company’s shareholders

must hold a minimum of 200 shares. Can Brian, who currently owns 100 shares, be bound by

this alteration?

Answer: Yes, if the alteration is done by special resolution

(2) Gama offers to sell his care to Maja for Rs. 550,000/-, Maja accepts the offer but states that

he would buy it for Rs. 500,000/- The statement of Maja is:

Answer: A counter offer

(3) Kala Khan agreed to supply onion to Sodagar Khan six months after the date of contract and

Kala Khan agreed to pay for such supply. Two months after the conclusion of the contract Kala

Khan refused to supply. In such case which of the following facts is correct?

Answer: Sodagar Khan can validly sue Kala Khan any time after he refused to supply onions.

(4) Sharafat Hussain offererd to sell his tonga to Sadaqat Hussain for Rs. 35,000/- but Sadaqat

Hussain did not answer and nearby standing Kiramat Hussain accepted the offer. Kiramat

Hussain’s answer to the offer is:

Answer: None of these

(5) The appointment of a person of the minor age as an agent is:

Answer: Valid

(6) Third party insurance is an insurance for:

Answer: Motor vehicles’ accidents (Doubt)

(7) A bill of exchange involves

Answer: Three parties

(8) A bearer instrument may be negotiated by:

Answer: Mere delivery

(9) An order instrument may be negotiated by:

Answer: Endorsement and delivery

(10) A partnership business is unlawful if the number of partners in it is:

Answer: More than twenty

(11) The relation between the partners of a firm is of:

Answer: Principal and Agent

(12) An unregistered contract of partnership is:

Answer: Valid (Doubt, Registration of partnership is not compulsory but unregistered partnership suffers from some legal disabilities)

Answer: None of these (May be the 2nd choice)

(13) A decision made by arbitrators is called

Answer: Award

(14) An empire in an arbitration reference is appointed when the number of arbitrators is:

Answer: Even

(15) The minimum number of members in a Private Limited Company is:

Answer: Two

(16) A Public Limited Company must have:

Answer: Seven directors

(17) Which of the following rights a company cannot have:

Answer: Right to vote in the general elections of the state.

(18) The maximum age for a person who concludes a contract of sale of goods is:

Answer: None of these

(19) It is essential for the validity of a contract of sale of goods that the price must be paid.

Answer: None of these

(20) If the delivery of goods under a contract of sale of goods is late.

Answer: The buyer is not bound to accept the delivery.