Business Laws Mock Test - 4

Question 1

An agreement which is enforceable by law at the option of one or more of the parties thereon but not at the option of the other or others is a

Accepted Answer

voidable contract

Answer

valid contract

Answer

void contract

Answer

illegal contract

Question 2

An agreement, the object or consideration of which is unlawful, is

Accepted Answer

void

Answer

valid

Answer

voidable

Answer

contingent

Question 3

If A agrees to deliver 100 kg of sugar to B in exchange of 15 meters of cloth, then it is

Accepted Answer

barter

Answer

contract of sale

Answer

agreement to sell

Answer

sale on approval

Question 4

Agreement-the meaning of which is uncertain is

Accepted Answer

void

Answer

valid

Answer

voidable

Answer

illegal

Question 5

Which of the following statement is true?

Accepted Answer

Consideration must be something, which a promisor is not already bound to do.

Answer

Consideration must result in a benefit to both parties.

Answer

Past consideration is no consideration in India.

Answer

Consideration must be adequate.

Question 6

Ordinarily, a minor`s agreement is`

Accepted Answer

void ab initio

Answer

voidable

Answer

valid

Answer

unlawful

Question 7

A stipulation which is collateral to the main purpose of the contract, and if proves false, gives the buyer only a right to claim damages, is known as

Accepted Answer

warranty

Answer

conditions

Answer

guarantee

Answer

None of these

Question 8

Doctrine of Caveat Emptor means

Accepted Answer

let the buyer beware

Answer

let the seller beware

Answer

let the creditor beware

Answer

None of the above

Question 9

When the consent of a party is not free, the contract is

Accepted Answer

voidable

Answer

void

Answer

valid

Answer

illegal

Question 10

A minor`s liability for `necessaries` supplied to him

Accepted Answer

is against only minor`s property

Answer

arises after he attains majority age

Answer

does not arise at all

Answer

arises if minor gives a promise for it

Question 11

Which of the following is false?To make an offer valid, it must

Accepted Answer

contain a term the non-compliance of which would amount to acceptance

Answer

intend to create legal relations

Answer

have certain and unambiguous terms

Answer

be communicated to the person to whom it is made

Question 12

An auction sale is complete on the

Accepted Answer

fall of hammer

Answer

delivery of goods

Answer

payment of price

Answer

None of the above

Question 13

Active partner is one who

Accepted Answer

takes part in the business of the firm

Answer

actively participates in co-curricular activities

Answer

actively shares the profits

Answer

makes a show of authority

Question 14

Registration of a firm is

Accepted Answer

optional

Answer

compulsory

Answer

occasional

Answer

None of the above

Question 15

Which of the following is not a form of delivery?

Accepted Answer

Structured delivery

Answer

Constructive delivery

Answer

Actual delivery

Answer

Symbolic delivery

Question 16

In the absence of agreement, to the contrary, all partners are

Accepted Answer

entitled to share profits equally

Answer

not entitled to share profits

Answer

entitled to share profits in capital ratio

Answer

entitled to share in proportion to their ages

Question 17

Selection of goods with the intention of using them in performance of the contract and with the mutual consent of the seller and the buyer is known as

Accepted Answer

appropriation

Answer

distribution

Answer

amortisation

Answer

storage

Question 18

Death of partner has the effect of

Accepted Answer

dissolving the firm

Answer

result in continuance of the business of the firm

Answer

his heirs joining the firm

Answer

computation of profits upto the date of death

Question 19

A, B and C jointly promised to pay Rs. 60,000 to D. Before performance of the contract, C dies. Here, the contract

Accepted Answer

should be performed by A and B along with C`s legal representatives

Answer

becomes void on C`s death

Answer

should be performed by A and B alone

Answer

should be renewed between A, B and D

Question 20

Goods which are in existence at the time of the Contract of Sale is known as

Accepted Answer

existing goods

Answer

present goods

Answer

specific goods

Answer

None of the above

Question 21

Which of the following is not an exception to the rule "no consideration, no contract"?

Accepted Answer

Compensation for involuntary services

Answer

Love and affection

Answer

Contract of agency

Answer

Gift

Question 22

Which of the following is not an implied condition in a contract of sale?

Accepted Answer

Condition as to free from encumbrance

Answer

Condition as to title

Answer

Condition as to description

Answer

Condition as to sample

Question 23

G paid Rs. 1,00,000 to H to influence the head of the Government Organisation in order to provide him some employment. On his failure to provide the job, G sued H for recovery of the amount. Which of the following is correct?

Accepted Answer

The contract is void as it is opposed to public policy and G cannot recover.

Answer

The contract is valid and G can recover the amount from H.

Answer

G can recover the amount with interest.

Answer

G can recover the amount of Rs. 1,00,000 and damages.

Question 24

A mistake as to a law not in force in India has the same effect as

Accepted Answer

mistake of fact

Answer

mistake of Indian law

Answer

fraud

Answer

misrepresentation

Question 25

Mercantile Agent is having an authority to

Accepted Answer

any of the above

Answer

sell or consign goods

Answer

raise money on the security of goods

Answer

sell or buy goods

Question 26

The most important element in partnership is

Accepted Answer

business to be carried on by all or any of them acting for all

Answer

business

Answer

sharing of profits

Answer

agreement

Question 27

Which of the following statements, about the registration of firm, is not true?

Accepted Answer

It must be done at the time of its formation.

Answer

It may be done at the time of formation.

Answer

It may be done before filing a suit against third party.

Answer

It may be done at any time after its formation.

Question 28

The threat to commit suicide amounts to

Accepted Answer

coercion

Answer

undue Influence

Answer

misrepresentation

Answer

fraud

Question 29

A agrees to pay Rs. 5 lakhs to B if he (B) procures an employment for A in Income Tax Department. This agreement is

Accepted Answer

void

Answer

valid

Answer

voidable

Answer

contingent

Question 30

A partner can retire on

Accepted Answer

in accordance with the Partnership Deed

Answer

reaching the age of superannuation

Answer

on the balance in the capital account reaching a certain amount

Answer

on the condition of his nominee becoming a partner

CA Foundation Business Laws Mock Test - 4 Free Online Test 2026

Full Mock Test & Solutions: Business Laws Mock Test - 4 (40 Questions)

An agreement which is enforceable by law at the option of one or more of the parties thereon but not at the option of the other or others is a

An agreement, the object or consideration of which is unlawful, is

If A agrees to deliver 100 kg of sugar to B in exchange of 15 meters of cloth, then it is

Agreement-the meaning of which is uncertain is

Which of the following statement is true?

Ordinarily, a minor`s agreement is`

A stipulation which is collateral to the main purpose of the contract, and if proves false, gives the buyer only a right to claim damages, is known as

Doctrine of Caveat Emptor means

When the consent of a party is not free, the contract is

A minor`s liability for `necessaries` supplied to him

Which of the following is false?To make an offer valid, it must

An auction sale is complete on the

Active partner is one who

Registration of a firm is

Which of the following is not a form of delivery?

In the absence of agreement, to the contrary, all partners are

Selection of goods with the intention of using them in performance of the contract and with the mutual consent of the seller and the buyer is known as

Death of partner has the effect of

A, B and C jointly promised to pay Rs. 60,000 to D. Before performance of the contract, C dies. Here, the contract

Goods which are in existence at the time of the Contract of Sale is known as

Which of the following is not an exception to the rule "no consideration, no contract"?

Which of the following is not an implied condition in a contract of sale?

G paid Rs. 1,00,000 to H to influence the head of the Government Organisation in order to provide him some employment. On his failure to provide the job, G sued H for recovery of the amount. Which of the following is correct?

A mistake as to a law not in force in India has the same effect as

Mercantile Agent is having an authority to

The most important element in partnership is

Which of the following statements, about the registration of firm, is not true?

The threat to commit suicide amounts to

A agrees to pay Rs. 5 lakhs to B if he (B) procures an employment for A in Income Tax Department. This agreement is

A partner can retire on

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