Business Laws Mock Test - 5

Question 1

Sometimes, a party is entitled to claim compensation in proportion to the work done by him. It is possible by a suit for

Accepted Answer

quantum meruit

Answer

damages

Answer

injunction

Answer

None of these

Question 2

An agreement made with free consent to which the consideration is lawful but inadequate, is

Accepted Answer

valid

Answer

void

Answer

voidable

Answer

unlawful

Question 3

A partner may retire from an existing firm

Accepted Answer

All of these

Answer

with consent of all partners

Answer

as per express agreement

Answer

by written notice in partnership at will

Question 4

If a seller handed over the keys of a warehouse containing the goods to the buyer, it results in

Accepted Answer

symbolic delivery

Answer

constructive delivery

Answer

actual delivery

Answer

None of these

Question 5

A void agreement is one which is

Accepted Answer

not enforceable in a court of law

Answer

valid but not enforceable

Answer

enforceable at the option of both the parties

Answer

enforceable at the option of one party

Question 6

A agrees to pay Rs. one lakh to B if he brings on earth a star from sky. This is a contingent contract and

Accepted Answer

void

Answer

illegal

Answer

valid

Answer

voidable

Question 7

A contract for the sale of goods which provides that the property would pass to the buyer on full payment of price and execution of sale deed, is known as a/an

Accepted Answer

agreement to sell

Answer

sale

Answer

hire-purchase agreement

Answer

sale of approval

Question 8

Every partner has the right to

Accepted Answer

take part in the business of the firm

Answer

to share exclusive profits

Answer

to use the property of the firm for personal purposes

Answer

pay taxes

Question 9

A contract dependent on the happening or non-happening of future uncertain event, is a

Accepted Answer

contingent contract

Answer

uncertain contract

Answer

void contract

Answer

voidable contract

Question 10

A proposal when accepted becomes a

Accepted Answer

promise

Answer

contract

Answer

offer

Answer

acceptance

Question 11

The law of contract in India is contained in

Accepted Answer

Indian Contract Act, 1872

Answer

Indian Contract Act, 1862

Answer

Indian Contract Act, 1962

Answer

Indian Contract Act, 1972

Question 12

A new partner can be admitted in the firm with the consent of

Accepted Answer

all the partners

Answer

simple majority of partners

Answer

special majority of partners

Answer

new partner only

Question 13

In case of illegal agreements, the collateral agreements are

Accepted Answer

void

Answer

valid

Answer

voidable

Answer

None of these

Question 14

X agrees with Y to carry passengers by taxi from Delhi to Gurgaon on the following terms, namely, Y is to pay X Rs. 100 per mile per annum, and X and Y are to share the costs of repairing and replacement of the cars, and to divide equally between them the proceeds of fares received from passengers. Choose the correct alternative.

Accepted Answer

X and Y are partners

Answer

X and Y are cab owners

Answer

X and Y are co-owners

Answer

Can`t be decided

Question 15

A firm is the name of

Accepted Answer

the collective name under which it caries on business

Answer

the partners

Answer

the minors in the firm

Answer

the business under which the firm carries on business

Question 16

Which of the following is not the right of a partner i.e., which he cannot claim as a matter of right?

Accepted Answer

Right to receive remuneration

Answer

Right to take part in business

Answer

Right to have access to account books

Answer

Right to share profits

Question 17

A partner can be expelled if

Accepted Answer

such expulsion is in good faith

Answer

the majority of the partners agree on such expulsion

Answer

the expelled partner is given an opportunity to start a business competing with that of the firm

Answer

compensation is paid

Question 18

Ram, Rohit and Kiran jointly borrowed Rs. 2,00,000 from Rahim by executing a promissory note. Rohit and Kiran are not traceable. Rahim wants to recover the entire amount from Ram. Ram objected this move by saying he is liable to pay 1/3 of the debt only. Which of the following statement(s) is correct?

Accepted Answer

Rahim can recover the entire amount from Ram.

Answer

Rahim can only recover 1/3 of Rs. 2,00,000 from Ram.

Answer

Rahim cannot recover any amount from Ram.

Answer

The promissory note is not executable against Ram as Rohit and Kiran are not traceable.

Question 19

A contract is discharged by rescission which means the

Accepted Answer

cancellation of the existing contract

Answer

change in one or more terms of the contract

Answer

acceptance of lesser performance

Answer

abandonment of rights by a party

Question 20

Voluntary transfer of possession by one person to another is popularly known as

Accepted Answer

delivery

Answer

transfer

Answer

possession

Answer

None of these

Question 21

Which of the following is false? An acceptance

Accepted Answer

may be presumed from silence of offeree

Answer

must be communicated

Answer

must be absolute and unconditional

Answer

must be accepted by a person having authority to accept

Question 22

Which one of the following is not an implied warranty?

Accepted Answer

Warranty as to existence of encumbrance.

Answer

Warranty as to undisturbed possession.

Answer

Disclosure of dangerous nature of goods.

Answer

Warranty as to quality or fitness by usage of trade.

Question 23

Which one of the following is not true?

Accepted Answer

None of these

Answer

Document showing title is different from document of title.

Answer

Bill of lading is a document of title to goods.

Answer

Specific goods can be identified and agreed upon at the time of the contract of sale.

Question 24

Which one of the following is/are document of title to goods?

Accepted Answer

All of these

Answer

Railway receipt

Answer

Wharfinger`s certificate

Answer

Warehouse keeper`s certificate

Question 25

A partnership at will is one

Accepted Answer

which does not provide for how long the business will continue

Answer

which does not have any deed

Answer

which does not have any partner

Answer

which cannot be dissolved

Question 26

Which of the following is not a disability of an unregistered firm?

Accepted Answer

It cannot be sued by a third party.

Answer

It cannot file a suit against third parties.

Answer

Its partners cannot file a suit against a firm.

Answer

It cannot claim a set-off exceeding Rs. 100.

Question 27

Moral pressure is involved in the case of

Accepted Answer

undue influence

Answer

coercion

Answer

misrepresentation

Answer

fraud

Question 28

As a general rule, an agreement made without consideration is

Accepted Answer

void

Answer

voidable

Answer

valid

Answer

unlawful

Question 29

The essence of a right of lien is to

Accepted Answer

retain the possession

Answer

deliver the goods

Answer

regain the possession

Answer

None of these

Question 30

A partnership firm is compulsorily dissolved where

Accepted Answer

In cases (1) and (2) only

Answer

all partners have become insolvent

Answer

firm`s business has become unlawful

Answer

the fixed term has expired

CA Foundation Business Laws Mock Test - 5 Free Online Test 2026

Full Mock Test & Solutions: Business Laws Mock Test - 5 (40 Questions)

Sometimes, a party is entitled to claim compensation in proportion to the work done by him. It is possible by a suit for

An agreement made with free consent to which the consideration is lawful but inadequate, is

A partner may retire from an existing firm

If a seller handed over the keys of a warehouse containing the goods to the buyer, it results in

A void agreement is one which is

A agrees to pay Rs. one lakh to B if he brings on earth a star from sky. This is a contingent contract and

A contract for the sale of goods which provides that the property would pass to the buyer on full payment of price and execution of sale deed, is known as a/an

Every partner has the right to

A contract dependent on the happening or non-happening of future uncertain event, is a

A proposal when accepted becomes a

The law of contract in India is contained in

A new partner can be admitted in the firm with the consent of

In case of illegal agreements, the collateral agreements are

A firm is the name of

Which of the following is not the right of a partner i.e., which he cannot claim as a matter of right?

A partner can be expelled if

A contract is discharged by rescission which means the

Voluntary transfer of possession by one person to another is popularly known as

Which of the following is false? An acceptance

Which one of the following is not an implied warranty?

Which one of the following is not true?

Which one of the following is/are document of title to goods?

A partnership at will is one

Which of the following is not a disability of an unregistered firm?

Moral pressure is involved in the case of

As a general rule, an agreement made without consideration is

The essence of a right of lien is to

A partnership firm is compulsorily dissolved where

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