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MCQs on Legal Aspects of Business Law with Answers

Here you can find the MCQs on legal aspects of business law with answers. Legal Aspects of Business Law is very important to each and every individual in India. Hence through this MCQs on legal aspects of business law with answers to make sure that we give you basic components of Business Law we have come-up with these MCQ’s on LAB. 

However these Objective Questions on business law with solutions will help students of MBA, BBA, B.Com, M.Com. Further we have covered Multiple Choice Questions from Indian Contract Act 1882, Sale of Goods Act 1930 etc.

I am Sure you will find these MCQs on legal aspects of business law with answers helpful and interesting too.

MCQ’s on Business Law

1. S agrees to sing in M’s theatre . S dies in the meanwhile the contract is

a. Void                                 b. Discharged                         c. Voidable                                d. Illegal

(Ans: b)

2. Breach of contract can be of ____________ breach

A. Actual                         b. Anticipatory                        c. Both A & B                        d. None of the above

(Ans: b)

3. Minor can be an

a. Agent                         b. Partner                         c. Surety                        d. None of the above

(Ans: a)

4. Consideration can simply be explained as

a. Profit                         b. Income                         c. Benefit                        d. Acceptance

(Ans: c)

5. Inadequacy of Consideration in a Contract

a. Will make it void              b. Will not Make it Void                c. Will make it illegal                 d. Will make it wager

(Ans: b)

MCQs on Contract of Agency

6. Legal relationship between the middleman and the businessperson is governed by

a. law of business                      b. law of Surety                      c. law of agency                      d. None of the above

(Ans: c)

7. Person who is represented by the agent is called the

a. Principal                      b. Principle                      c. Middle man                      d. None of the above

(Ans: a)

8. The ______ does not usually get any rights or responsibilities under the Contract

a. Principal                      b. Agent                      c. Surety                      d. None of the above

(Ans: b)

9. ___________ of the agent is to act on behalf of principal is must

a. Consideration                      b. Rule                      c. Intention                      d. None of the above

(Ans: c)

Other MCQ’s on Contract Act

10. What ever a person can do personally , he can do through an agent exemption to this is

a. Marriage                      b. Doctor                      c. Advocate                      d. All of the above

(Ans: d)

11. Agent is specifically appointed by the principal for a particular task or a general function. This type of appointment is called as

a. Ratification                      b. Express                      c. Implied                      d. Necessity

(Ans: b)

12. Ratification of an Agent can be done for a

a. Part of the contract                      b. Whole Contract                      c. Both a & b                      d.None of the above

(Ans: b)

13. Agency when it is ratified it must be communicated to the

a. Agent                      b. Principal                      c. Third Party                      d. All of the above

(Ans: c)

14. Ratification can be done for the act which is done on behalf of

a. Agent                      b. Third party                      c. Principal                      d. All of the above

(Ans: c)

15. where it is assumed that the principal has authorized the person to act as his agent this type of Agency is created by

A. Ratification                      b. Estoppel                      c. Implication                      d. Express.

(Ans: c)

MCQs on Sale of Goods Act:

16. ______________ goods are a part of Future goods.

a. ascertained              b. unascertained            c. existing            d. Contingent

(Ans: d)

17.______________________  goods are the goods the acquisition of which by the seller may or may not happen.

a. ascertained            b. Contingent             c. existing            d. future

(Ans: b)

18. In a contract of sale, parties make certain statement which is called as

a. contract             b. agreement             c. promises            d. stipulations

(Ans: d)

19. In a contract of sale, parties make certain ____________ i.e., agree to certain terms.

a. contract            b. agreement            c. stipulations            d. promises

(Ans: c)

MCQ’s on Condition and Warranty

20. Condition as to Title is an example of

a. Implied warranty            b. Express condition             c. implied condition            d. Express warranty

(Ans: c)

21. Condition as to Quality or Fitness is an example of

a. Implied warranty             b. Express condition            c. Express warranty             d. implied condition

(Ans: d)

22. Condition as to wholesome is an example of

a. Implied warranty            b. Express condition            c. implied condition            d. Express warranty

(Ans: c)

23. Condition as to Merchantable Quality is an example of

a. Implied warranty             b. Express condition            c. Express warranty            d. implied condition

(Ans: d)

MCQ’s on Delivery of Goods

24. The goods are free from any charge or burden of 3rd party is an example of

a. Implied warranty             b. Express condition            c. Express warranty            d. implied condition

(Ans: a)

25. Warranty of Quiet Possession is an example of

a. Implied warranty             b. Express condition             c. Express warranty            d. implied condition

(Ans: a)

26. “It is not the seller’s duty to point out defects of his own goods.” This concept is also known as

a. Unfair Trade Practices             b. Caveat Emptor            c. Buyer duty            d. Buyer Kingdom

(Ans: b)

27. “The buyer must inspect the goods to find out if they will suit his purpose” this concept is also known as

a. Caveat Emptor            b. Let the buyer beware            c. Caution buyer            d. None of the above

(Ans: d)

28. As per section 2(12), of the Sale of Goods Act, quality of goods include

A. State of goods            B. Conditions of goods            C. Both (a) and (b)            D. None of above

(Ans: c)

29. The term “goods” in the sale of goods means

(a) specific goods only              (b) ascertained goods only            (c) ownership            (d) subject matter.

(Ans: d)

Other MCQ’s on SOG Act

30. Under section 2(6) of the Sale of Goods Act, 1930 ‘future goods’ means

(a) goods which are not yet in existence                        (b) unascertained goods

(c) ascertained goods                                                          (d) specific goods

(Ans: a)

31. A stipulation in contract of sale with reference to goods which are the subject there of may be

a. A condition             b. A warranty             c. Both (a) and (b)             d. None of above

(Ans: c)

32. Transfer of actionable claim(s) is governed by

a. The Transfer of Property Act, 1882             b. The Sale of Goods Act, 1930

c. The Indian Contract Act, 1872                       d. all the above.

(Ans: a)

You and fins MCQ’s on various other topics here

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