Mercantile Law 2008 - Solved MCQs NET, IAS, State-SET (KSET, WBSET, MPSET, etc.), GATE, CUET, Olympiads etc. 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: ()