Business Laws MCQs and Notes

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📊 Business Laws
Q. As per Section 20, the contract is void, on account of bilateral mistake of fact. But as per Section 22, if there is mistake of only one party, then the contract is;
  • (A) Void
  • (B) Valid
  • (C) Voidable
  • (D) Illegal
💬 Discuss
✅ Correct Answer: (B) Valid
📊 Business Laws
Q. Where the consent of both the parties is given by mistakes, the contract is;
  • (A) Void
  • (B) Valid
  • (C) Voidable
  • (D) Illegal
💬 Discuss
✅ Correct Answer: (A) Void
📊 Business Laws
Q. Which of the following statement is false?
  • (A) A contract is not voidable if fraud or misrepresentation does not induce the other party to enter a contract.
  • (B) A party cannot complain of fraudulent silence or misrepresentation if he had the means of discovering the truth with ordinary means
  • (C) In case of fraud or misrepresentation, aggrieved party can either rescind or affirm the contract
  • (D) A party who affirms the contract , can also change his option afterwards if he so decides
💬 Discuss
✅ Correct Answer: (D) A party who affirms the contract , can also change his option afterwards if he so decides
📊 Business Laws
Q. Where the consent of a party is obtained by misrepresentation, the contract is;
  • (A) Valid
  • (B) Void
  • (C) Voidable
  • (D) Illegal
💬 Discuss
✅ Correct Answer: (C) Voidable
📊 Business Laws
Q. Which of the following acts does not fall under the categories of fraud?
  • (A) Intentional false statement of facts
  • (B) Active concealment of facts
  • (C) Innocent false statements
  • (D) Promise made without intention to perform
💬 Discuss
✅ Correct Answer: (C) Innocent false statements
📊 Business Laws
Q. When one party is in a position to dominate the will of another and uses his superior position to obtain the consent of a weaker party, the consent is said to be obtained by;
  • (A) Coercion
  • (B) Undue influence
  • (C) Fraud
  • (D) Misrepresentation
💬 Discuss
✅ Correct Answer: (B) Undue influence
📊 Business Laws
Q. When the consent to an agreement is obtained by coercion, the agreement is voidable at the option of
  • (A) Either party to the agreement
  • (B) A party whose consent was so obtained
  • (C) A party who obtained the consent
  • (D) None of these
💬 Discuss
✅ Correct Answer: (B) A party whose consent was so obtained
📊 Business Laws
Q. A threatens to kill B if he does not agrees to sell his scooter from him for Rs.1000. Here B’s consent is obtained by
  • (A) A undue influence
  • (B) Fraud
  • (C) Coercion
  • (D) None of these
💬 Discuss
✅ Correct Answer: (C) Coercion
📊 Business Laws
Q. When the consent of a party is obtained by coercion undue influence, fraud or misrepresentation, the contract is;
  • (A) Void
  • (B) Voidable
  • (C) Valid
  • (D) Illegal
💬 Discuss
✅ Correct Answer: (B) Voidable
📊 Business Laws
Q. Which of the following elements does not affect the free consent of the parties.
  • (A) Coercion
  • (B) Fraud
  • (C) Incompetency
  • (D) Undue influence
💬 Discuss
✅ Correct Answer: (C) Incompetency

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