Legal Aptitude MCQs – Commonly Asked Questions for Exams – Must Know Topics and Concepts Part 7

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46. What is an agreement?

a) Every promise and every set of promises, forming the consideration for each other, is an agreement

b) Promises which form the consideration or part of the consideration for each other, are called reciprocal promises

c) An agreement not enforceable by law is said to be void

d) The person making the proposal is called the “promisor” and the person accepting the proposal is called the ‘promise’.

Ans: (a)

47. What is a contract in the eyes of law?

a) An agreement enforceable by law is a contract

b) An agreement which is enforceable by at the option of one or more of the parties thereto, but not at the option of the other or other, is a voidable contract

c) A contract which ceases to be enforceable by law becomes void when it ceases to be enforceable

d) An agreement not enforceable by law is said to be void

Ans: (a)

48. Legal Principle Communication is complete - The communication of a proposal is complete when it comes to the knowledge of the person to whom it is made. The communication of an acceptance is complete - as against the proposer, when it is put in a course of transmission to him so as to be out of the power of the acceptor; as against the acceptor, when it comes to the knowledge of the proposer.

Factual Situation A proposes, by letter, to sell a house to B at a certain price.

The communication of the proposal is complete when B receives the letter.

When the communication of proposal is said to be completed?

a) When the proposal made

b) When it is accepted

c) In the course of transmission

d) The communication of a proposal is complete when it comes to the knowledge of the person to whom it is made.

Ans: (d)

49. Legal Principle The communication of a revocation is complete - as against the person who makes it, when it is put into a course of transmission to the person to whom it is made, so as to be out of the power of the person who makes it; as against the person to whom it is made, when it comes to his knowledge.

A revoke his proposal by telegram the revocation is complete as against A when the telegram is dispatched. It is complete as against B when B receives it. B revoked his acceptance by telegram B’s revocation is complete as against B when the telegram is dispatched, and as against A when it reaches him.

How a proposal is revoked?

a) By the communication of notice of revocation by the proposer to the other party

b) By the lapse of the time prescribed in such proposal for its acceptance, or, if no time is so prescribed, by the lapse of a reasonable time, without communication of the acceptance

c) By the failure of the acceptor to fulfil a condition precedent to acceptance.

d) By the death or insanity of the proposer, if the fact of his death or insanity comes to the knowledge of the acceptor before acceptance

e) All of the above

Ans: (d)

50. Legal Principle Acceptance must be absolute - To convert a proposal into a promise the acceptance must

1) be absolute and unqualified

2) be expressed in some usual reasonable manner unless the proposal prescribes the way it is to be accepted. If the proposal prescribes a manner in which it is to be accepted, and the acceptance is not made in such manner, the proposer may, within a reasonable time after the acceptance is communicated to him, insist that his proposal shall be accepted in the prescribed manner, and not otherwise; but, if he fails to do so, he accepts the acceptance.

To convert a proposal into a promise the acceptance must be

a) absolute and unqualified

b) expressed in usual and reasonable manner,

c) If the proposal prescribes a way is to be accepted, must be accepted, in such manner.

d) All of the above

Ans: (d)

Legal Principle Section 4 of the Indian Partnership Act 1932 defines ‘Partnership’ as ‘Partnership’ is the relation between person who have agreed to share the profits of a business carried on by all or any of them acting for all.

51. What are the minimum requirements of a partnership?

a) agreement to form a partnership

b) agreement to share the profits of a business

c) The business must be carried on by all the partners or any of them acting for all

d) All of the above

Ans: (d)

52. ‘Partnership’ as a term has been defined under

a) Section 3

b) Section 6

c) Section 4

d) Section 5

Ans: (c)

53. ‘Any two or more persons can join for creating Partnership’ it has been defined under

a) Section 10 of the Companies Act, 1956

b) Section 11 of the Companies Act, 1956

c) Section 9 of the Companies Act, 1956

d) Section 6 of the Companies Act, 1956 “Section 5 of the partnership Act provides that the relation of partnership arises from contract and not from status”.

Ans: (b)

54. Relation of Partnership arises from contract, not from status’ defines under

a) Section 4

b) Section 5

c) Section 6

d) Section 7

Ans: (c)