Mercantile Law 2000 - Solved MCQs NET, IAS, State-SET (KSET, WBSET, MPSET, etc.), GATE, CUET, Olympiads etc. Set 1
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(1) Payment can be made on a bill of exchange to:
Answer: Only to a person specified therein
(2) How a cheque is treated by a banker among the following when the balance at credit of
drawer is found insufficient
Answer: Be dishonored.
(3) ‘Accommodation Party’ is a person who has signed a negotiable instrument:
Answer: Without receiving the value thereof.
(4) Which of the following is correct:
Answer: A Provincial Government can constitute a Corporate Law Authority.
(5) Which of the following is correct:
Answer: None of these.
(6) Good will:
Answer: can be sold separately from other property of a firm.
(7.) When undue influence is used in a contract by one party against the other, the contract
becomes:
Answer: voidable
(8) Which of the following is correct:
Answer: cannot mix
(9) Pledgor or Pawnor are:
Answer: same persons
(10) The principal must ratify the contract:
Answer: as a whole
(11) A dormant partner is one:
Answer: whose name does not appear in any way as partner?
(12) Caveat Emptor means:
Answer: The buyer should be aware of the suitability of goods for his purpose.
(13) If the seller of immovable property has effected a fire insurance policy in respect of the
property, the purchaser, of the property:
Answer: cannot claim any benefit of it.
(14) The delivery of the insurance policy to the assured is:
Answer: essential to make binding contract.
(15) The grace period for every instrument payable at a specified period after date or after sight
is:
Answer: 3 days.
(16) Special Resolution is passed at a general meeting of a Public Company when not less than
the following notice has been given:
Answer: 15 days notice
(17) One of the special privileges of a Private Limited Company is that:
Answer: there is restriction on the right of members to transfer their shares. By the way this is
not a privilege rather a disadvantage
(18) A company shall be eligible for registration as a Modaraba Company if its paid-up capital is
not less than:
Answer: 2.5 million rupees.
(19) A and B are partners. A buys land with partnership moneys for his sole benefit. Thereafter,
A debits himself in the firm books and becomes a debtor to the firm for the amount of the
purchase money. The purchased property is:
Answer: not partnership property.
(20) Whether a partner has got power to assign his partnership interest to any other person so as to make him a partner in the business?
Answer: No