Mercantile Law 2008-Solved MCQs ICAR NET (UG/PG) Set 1

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(i) If the consideration for an agreement is inadequate, the agreement is:

(a) Valid

(b) Void

(c) Voidable

(d) None of these

Answer: (a)

(ii) On a contract by an Agent on behalf of an undisclosed Principal, the Principal:

(a) May sue on contract

(b) Cannot sue

(c) Is hit by privity of contract

(d) None of these

Answer: (c)

(iii) Carlill v Carbolic Smoke Ball Co. Ltd. deals with:

(a) Counter proposal

(b) Implied acceptance

(c) Implied revocation

(d) None of these

Answer: ()

(iv) What is the amount of care a bailee is required to take in respect of goods bailed to him:

(a) Extraordinary

(b) Ordinary

(c) Reasonable

(d) None of these

Answer: (c)

(v) A Void Contract is:

(a) An illegal agreement

(b) Parlty valid agreement

(c) Ceased to be a valid agreement

(d) None of these

Answer: (c)

(vi) X agrees not to carry on a similar business with Y for two years in consideration of ₹

50,000/- as goodwill. The agreement is:

(a) Void due to restraint of trade

(b) Valid

(c) Against X՚s fundamental rights

(d) None of these

Answer: (b)

(vii) Which one of the following cannot be called an Act of God?

(a) An unprecedented rainfall

(b) An earthquake

(c) Fire not caused by lightening

(d) None of these

Answer: (c)

(viii) An obligation arises from:

(a) A contract

(b) From a wrongful act

(c) Both (a) & (b)

(d) None of these

Answer: (a)

(ix) The rule nemo dat quod non habet means:

(a) No-one should interfere in another՚s business

(b) No-one should be retained in a partnership against his will

(c) No-one can give what he has not got

(d) None of these

Answer: ()

(x) In a public company the shares are subscribed by:

(a) Government

(b) Management

(c) Creditors

(d) None of these

Answer: ()

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