Business Law Questions and Answers Part-2

1. If there is error in cause, the contract I
a) void
b) voidable
c) valid
d) illegal

Answer: b

2. A contingent contract is
a) void
b) voidable
c) valid
d) illegal

Answer: c

3. A lends Rs. 500 to B. He later tells B that he need not repay the amount, the contract is discharged by
a) breach
b) waiver
c) novation
d) performance

Answer: b

4. The measure of damages in case of breach of a contract is the difference between the
a) contract price and the market price at the date of breach
b) contract price and the maximum market price during the term of the contract
c) contract price and the price at which the plaintiff might have sold the goods,
d) contract price and the price fixed by court.

Answer: a

5. A minor has been supplied necessaries on credit
a) he is not liable
b) he is personally liable
c) his estate is liable
d) he is not personally liable

Answer: c

6. Any variance made without surety's consent in the terms of the contract between the principal debtor and thecreditor discharges the surety
a) as to transactions prior to variance Coffee
b) as to transactions subsequent to variance
c) as to all transactions
d) fromhis liability under the guarantee.

Answer: b

7. The doctrine of caveat emptor applies
a) incase of implied conditions and warranties Coffee
b) when the buyer does not intimate the purpose to the seller and depends upon his own skill and judgment
c) when goods are sold by sample
d) when goods are sold by description

Answer: a

8. A condition is a stipulation which is a
a) essential to the main purpose of contract of sale
b) not essential to the main purpose of contract of sale
c) collateral to the main purpose of contract of sale
d) none of the above.

Answer: a

9. A contract
a) may be void as originally entered into
b) may become void subsequent to its formation
c) cannot become void under any circumstances
d) may become void at the will of party

Answer: b

10. A letter of acceptance sufficiently stamped and duly addressed is put into course of transmission. There is
a) a contract voidable at the option of acceptor
b) a contract voidable at the option of offerer,
c) no contract at all,
d) a valid

Answer: d