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Objective
Questions
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Answer
any ten. state with reasons whether the following
statements are correct : |
(2
x 10 = 20 marks)
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(1)
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A
minor can be a promisee in a contract. |
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(2)
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Death
or insanity of the proposer automatically revokes
the proposal. |
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| (3) |
A
person, who is usually of unsound mind but causually
of sound mind, can always enter into a valid
contract. |
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| (4) |
An
agency coupled with interest is irrevocable. |
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| (5) |
Bailee
need not return accretion to the goods to the
bailor on the completion of the contract of
bailment. |
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| (6) |
The manufacturer of goods can enforce conditions
imposed upon the dealer against the sub-dealer. |
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| (7)
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Pledging
of goods obtained on sale or return basis will
complete the sale. |
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| (8) |
Delivery
of ascertained goods is essential for the completion
of sale. |
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| (9) |
Parties to a contract of sale can get the price
of goods fixed by third parties. |
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| (10) |
A
partner can be admitted in a firm by the consent
of the majority of partners |
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| (11) |
A
minor can be a partner in a firm |
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| (12) |
The
liability of a retired partner to third parties
continues even after his retirement. |
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| Ans: |
(1)
Correct; (2) Incorrect, (3) Incorrect, (4)
Correct (5) Incorrect, (6) Incorrect, (7)
Correct, (8) Incorrect, (9) Correct,
(10) Incorrect, (11) Incorrect, (12) Correct
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State
with reasons whether the following statements
is correct |
2
x 10=20 marks
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(1)
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An
agreement to discover treasure by magic is valid. |
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(2)
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A
threat to commit suicide does not amount to
coercion. |
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| (3) |
A
deceit which does not deceive is no fraud. |
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| (4) |
Commercial
impossibility is not a valid excuse for the
the non-performance of a contract. |
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| (5) |
In
adequacy of consideration does not affect the
validity of a contract. |
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| (6) |
In an auction sale, a bid once given cannot
be withdrawn. |
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| (7) |
In
a contract of sale by description and by sample,
the bulk of the goods must correspond to either
description or sample. |
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| (8) |
In
an agreement to sell the title of the goods
passes to the buyer immediately. |
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| (9) |
A partner of an unregistered firm can sue for
the dissolution of a firm. |
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| (10) |
A
partner is not an agent of other partners. |
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| Ans: |
(1)
Incorrect; (2) Incorrect, (3) Correct, (4)
Correct (5) Correct, (6) Incorrect, (7)Incorrect,
(8) Incorrect, (9) Correct,
(10) Incorrect
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State
with reasons whether the following statements
are correct. |
2*10=20
marks
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(1)
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Crossing
of letters of offer in the post for the sale
and purchase of the same article constitute
a valid agreement. |
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(2)
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A
contract of insurance is a wagering agreement. |
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| (3) |
Placing
of ornaments in a bank locker is not a contract
of bailment. |
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| (4) |
Co-sureties
who have given guarantee for different amounts
share the liability proportionately. |
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| (5) |
An
agent cannot appoint a sub-agent. |
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| (6) |
A seller need not disclose defects in the goods
to the buyer before sale. |
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| (7) |
In
an auction sale, bidders can enter into an agreement
to keep the bid low by eliminating competition
amongst them. |
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| (8) |
On
becoming major, the liability of a minor admitted
to the benefits of partnership and now becoming
a partner becomes unlimited from the date of
majority. |
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| (9) |
Partners can change the nature of the business
of the firm by majority decision. |
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| (10) |
For
default in the repayment of loan on the agreed
date, interest can be increased retrospectively
from the date of lending. |
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| Ans: |
(1)
Incorrect; (2) Incorrect, (3) Correct, (4)
Incorrect (5) Correct, (6) Correct, (7)Correct,
(8) Incorrect, (9) Incorrect,
(10) Incorrect
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State
with reasons whether the following statements
are correct or incorrect : |
(15
marks)
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(1)
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A
proposal may be revoked by the proposer before
the posting of the letter of acceptance by the
acceptor. |
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(2)
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A
stranger to the contract can enforce the contract. |
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| (3) |
Rule
of estoppel cannot be exercised by a minor. |
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| (4) |
Consent
obtained by fraud makes the agreement void. |
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| (5) |
Continuing
guarantee is revoked by the death of the surety. |
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| (6) |
A Pledge of documents of title to goods by a
mercantile agent is a valid pledge. |
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| (7) |
A
person can be admitted to a partnership firm
with the consent of majority of partners only. |
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| (8) |
A
moneylender getting a share in the profits of
the firm for the sum lent is a partner in the
firm. |
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| (9) |
In a sale the property of the goods is transferred
from seller to the buyer in case of generic
goods. |
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| (10) |
An
unpaid seller who is in possession of goods
sold, can exercise the right of lien even when
the property has passed to the buyer. |
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| Ans: |
(1)Correct;
(2) Incorrect; (3) Incorrect; (4) Incorrect;
(5) Correct; (6) Correct; (7) Incorrect; (8)
Incorrect; (9) Incorrect;
(10) Correct.
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State
with reasons whether the following statements
are correct or incorrect : |
(2
x 10 = 20 marks)
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(1)
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If
an offer is made in the form of a promise in
return for an act, the performance of that act,
even without any communication thereof, is to
be treated as an acceptance of the offer. |
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(2)
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A
contract of indemnity is not a contingent contract. |
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| (3) |
Social
agreements are enforceable in the Courts. |
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| (4) |
Counter
offer to an offer does not make the original
offer lapse. |
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| (5) |
No
consideration is required to create an agency. |
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| (6) |
A stranger to the contract cannot enfoce the
contract. |
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| (7) |
Sharing of profits of a business is conclusive
evidence of partnership. |
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| (8) |
Implied
authority of a partner does not include entering
into partnership on behalf of the firm. |
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| (9) |
A seller can never bid at an auction sale. |
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| (10) |
An
unpaid seller can exercise the right of stoppage
of goods in transit if the buyer becomes insolvent. |
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| Ans: |
(1)Correct;
(2) Incorrect; (3) Incorrect; (4) Incorrect;
(5) Correct; (6) Correct; (7) Incorrect; (8)
Correct; (9) Incorrect;
(10) Correct.
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State
with reasons whether the following statements
are correct or incorrect : |
(2
x 10 = 20 marks)
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(1)
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Acceptance
can be made even without the knowledge of the
offer. |
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(2)
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A
stranger to the consideration can enforce the
contract. |
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| (3) |
In
a contract of guarantee the primary liability
is of the surety. |
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| (4) |
The
liability of the finder of goods is same as
of a bailee. |
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| (5) |
A
substituted agent is not appointed by the agent. |
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| (6) |
Performance of the contract may be made only
by the parties to the contract. |
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| (7) |
A major and a minor can create a partnership. |
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| (8) |
An
un-registered firm can file a suit for set-off. |
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| (9) |
The rights and liabilities arising in a contract
of sale may be varied or avoided by a binding
usage. |
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| (10) |
Actionable
claim is a subject-matter of contract of sale. |
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| Ans: |
(1)Incorrect;
(2) Correct; (3) Incorrect; (4) Correct; (5)
Correct; (6) Incorrect; (7) Incorrect;
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State
with reasons whether the following statements
are correct or incorrect : |
(2
x 10 = 20 marks)
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(1)
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An
agreement with intention to create legal liability
is not enforceable in law. |
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(2)
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Inadequacy
of the consideration cannot be taken into account
by the court in determining whether the consent
was given freely. |
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| (3) |
A
promise under a contract can be performed only
by the promisor himself. |
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| (4) |
The
acts of sub-agent may be ratified by the principal
when he purports to act in his name. |
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| (5) |
When
persons reciprocally promise, first to do ceratin
legal acts and secondly to do certain illegal
acts, the whole agreement is void. |
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| (6) |
An agent entitled to collect debts for his principal
when he purports to act in his name. |
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| (7) |
A partner, whether active or dormant, is entitled
to have access to any of the books of the firm
and take out a company thereof. |
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| (8) |
A
partner in a firm has a right to receive interst
on advances given by him to the firm @ 12% per
anum. |
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| (9) |
When goods are delvered at a distant place,
the liability for deterioration necessarily
incidental to the course of transit will fall
on the seller |
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| (10) |
In
a contract for the sale of unascertained goods,
no property in the goods is transferred unless
and until the goods are ascertained. |
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| Ans: |
(1)Incorrect;
(2) Incorrect; (3) Incorrect; (4) Correct;
(5) Incorrect; (6) Correct; (7) Correct; (8)
Incorrect; (9) Incorrect; (10) Correct
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State
with reasons whether the following statements
are correct or incorrect : |
(2
x 10 = 20 marks)
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(1)
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An
agreement the meaning of which is not certain
or capable of being made certain is not void |
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(2)
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When
the promisee does not accept the offer of performance,
the promisor is not responsible for non-performance. |
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| (3) |
Commercial
impossibility does not make the contract void. |
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| (4) |
Insurance
contracts are covered under contracts of indemnity. |
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| (5) |
There
is no consideration in cas of the contract of
guarantee. |
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| (6) |
If the goods are bailed for hire, the bailor
is responsible for the damages, whether he was
or was not aware of the faults in the goods
bailed. |
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| (7) |
The invalid expulsion of a partner does not
give him a right to claim damages. |
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| (8) |
A
partnership contract providing that no partner
shall carry on any business other than that
of the firm, while he is a partner, is void. |
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| (9) |
A railway receipt is not a document of title. |
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| (10) |
When
goods are delivered to the buyer and he refuses
to accept them, he is not bound to return the
goods to the seller. |
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| Ans: |
(1)Incorrect;
(2) Correct; (3) Correct; (4) Correct; (5)
Incorrect; (6) Correct; (7) Correct; (8) Incorrect;
(9) Incorrect; (10) Correct
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State
with reasons whether the following statements
are correct or incorrect : |
(2
x 10 = 20 marks)
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(1)
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If
the offeree doen not accept the offer according
to the mode prescribed by the offeror, the offer
does not lapse automatically. |
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(2)
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A
person who is usually of unsound mind cannot
enter into a contract even when he is of sound
mind. |
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| (3) |
Payments
made by a debtor are always appropriated in
a chronological order. |
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| (4) |
Cancellation
of a contract by mutual consent of the parties
is called waiver. |
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| (5) |
The
liability of a surety is primary and independent. |
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| (6) |
A principal is liable for frauds of his agent. |
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| (7) |
Consideration in a contract of sale of goods
can also be paid partly in money and partly
in goods. |
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| (8) |
The
right of lien by an unpaid seller can be exercised
for the non payment of price of goods and other
changes. |
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| (9) |
Sharing of profits is conclusive evidence of
partnership. |
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| (10) |
A
partneris not entitled to claim remuneration. |
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| Ans: |
(1)Correct;
(2) Incorrect; (3) Incorrect; (4) Incorrect;
(5) Incorrect; (6) Correct; (7) Correct; (8)
Incorrect; (9) Incorrect; (10) Correct
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State
with reasons whether the following statements
are correct or incorrect : |
(2
x 10 = 20 marks)
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(1)
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According
to the doctrine or "Privity of Contract",
a stranger to a contract, if he is beneficiary,
can not enforce the contract. |
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(2)
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Transactions
incidental to wagering agreements are not void. |
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| (3) |
In
Quasi contracts, the promise to pay is always
an implication of law and not facts. |
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| (4) |
There
may be a valid retification by a person whose
knowledge of the facts of the case is materially
defective. |
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| (5) |
Unless
there is an express agreement the surety cannot
be indemnified by the principal debtor. |
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| (6) |
Finder of goods is subject to the same responsibilty
as of a bailee. |
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| (7) |
in an auction sale, goods to be auctioned can
be put for sale in lots. |
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| (8) |
'Right
of lien' and 'right to stoppage the goods in
transit' may be exercised simultaneously by
an unpaid seller. |
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| (9) |
A new parnet may be introduced in the firm even
by any existing partner of the firm. |
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| (10) |
The
implied authority of a partner empowers him
to acquire immovable property on behalf of the
firm. |
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| Ans: |
(1)Incorrect;
(2) Correct; (3) Correct; (4) Incorrect; (5)
Incorrect; (6) Correct; (7) Correct; (8) Incorrect;
(9) Incorrect; (10) Incorrect
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State
with reasons whether the following statements
are correct or incorrect : |
(2
x 10 = 20 marks)
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(1)
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All
kinds of obligations created between the parties
form part of the contracts. |
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(2)
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A
contract to take a loan by a boy of sixteen
years of age from a moneylender of 50 years
old, is a valid contract. |
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| (3) |
A
contract to purchase a black horse, which was
dead at the time of bargain is voidable. |
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| (4) |
In
discharge of the whole claim a party to the
contract agrees to accept a lesser amount then
due, from the other party is a valid contract
inspite of inadequate consideration. |
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| (5) |
Placing
of ornaments in a bank locker is a contract
of bailment. |
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| (6) |
if a varianc in terms of contarct between the
principal debtor and a creditor is made without
the consent of surety, it cannot absolutely
discharge the surety's liability. |
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| (7) |
After completion of the sale in an auction,
the property in the goods and the risk of the
loss caused in an accident to the auctioned
property therein, is transferred to the bidder. |
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| (8) |
Where
the goods are of perishable nature the unpaid
seller cannot re-sell the goods without any
notice to the buyer. |
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| (9) |
A transferee of a partner's interest in a firm
accepts a loan on behalf of the firm, for which
the other partner was authorised to do so, invest
it in the non-partnership business, without
the consent of all the partners. The transferee
is empowered to accept the loan. |
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| (10) |
A
third party cannot exercise any right against
a non-registered firm. |
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| Ans: |
(1)Incorrect;
(2) Incorrect; (3) Incorrect; (4) Correct;
(5) Incorrect; (6) Incorrect; (7) Correct;
(8) Incorrect; (9) Incorrect; (10) Incorrect
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State
with reasons whether the following statements
are correct or incorrect : |
(2
x 10 = 20 marks)
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(1)
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Communication
of an offer is complete when the letter is posted
though it has not reached the person to whom
the offer is made. |
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(2)
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Consideration
may move even from a person who is not a party
to the contract. |
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| (3) |
A
surety is discharged from his liability where
there is failure of consideration between the
creditor and the principal debtor, in a contract
of guarantee. |
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| (4) |
A
promisory note duly executed in favour of a
minor is void. |
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| (5) |
Every
person has a right to emplot an agent lawfully. |
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| (6) |
If the promisees are joint, the right to claim
performance is joint and not joint and several. |
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| (7) |
When two persons jointly run a coach and share
the profits derived from running such business
constitute partnership business? |
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| (8) |
A
partnership may be formed with two partnership
firms as partners. |
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| (9) |
In an auction sale, seller or any other person
on his behalf may bid at the auction. |
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| (10) |
If
a seller does not disclose the dangerous nature
of the goods to be sold to the buyer he breaches
the contract. |
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| Ans: |
(1)Incorrect;
(2) Correct; (3) Correct; (4) Incorrect; (5)
Incorrect; (6) Correct; (7) Incorrect; (8)
Incorrect; (9) Correct; (10) Incorrect
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State
with reasons whether the following statements
are correct or incorrect : |
(2
x 10 = 20 marks)
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(1)
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Where
the mode of acceptance is prescribed in the
proposal, it need not be accepted in that manner. |
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(2)
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A
person who is usually of sound mind, but occasionally
of unsound mind is unable to make the contract. |
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| (3) |
A
promise to take either rice or smuggled opium
for a consideration of Rs. one thousand is wholly
void. |
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| (4) |
In
case an agent exceeds his authority and the
acts done by him are subsequently ratified by
the principal, the ratification relates back
from the date when the agent had acted upon. |
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| (5) |
Guarantee
obtained by concealment of material facts is
invalid. |
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| (6) |
If a bailment there is a transfer of possesory
right for ever. |
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| (7) |
A partner who has purchased the goodwill of
the firm on the dissolution of partnership firm
has right to make use of the firm's name for
earning profits. |
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| (8) |
All
parnters are not not joint-owners of the property
of the firm, unless otherwise provided in the
agreement. |
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| (9) |
Exchange of goods for goods between the two
parties amounts to sale under the Sale of Goods
Act, 1930. |
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| (10) |
Where
the buyer elects to treat the breach of conditions
as one of warranty, he may repudiate the contract. |
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| Ans: |
(1)Incorrect;
(2) Incorrect; (3) Incorrect; (4) Correct;
(5) Correct; (6) Incorrect; (7) Correct; (8)
Incorrect; (9) Incorrect; (10) Incorrect
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State
with reasons whether the following statements
are correct or incorrect : |
(2
x 10 = 20 marks)
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(1)
|
A
proposal when accepted becomes a contract. |
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(2)
|
An
illegal contract is fatal to the main contract,
but not collateral transactions. |
|
| (3) |
It
is a mixed question of law and fact whether
time was essence of the contract. |
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| (4) |
A
promise to pay a time barred debt is enforceable. |
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| (5) |
A
bailment is the delivery of goods by one person
to another for some purpose. |
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| (6) |
Any variance made without the surety's consent
in the terms of the contract, discharges th
surety as to transactions subsequent to variation. |
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| (7) |
'Right of lien' and 'right to stopage the goods
in transit' may be exercised simultaneously
by an unpaid selle. |
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| (8) |
'Goods'
means every kind of movable property other than
actionable claim and money. |
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| (9) |
The test of existence of partnership is the
element of 'sharing of profits' rather than
'mutual agency' |
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| (10) |
Permanent
incapacity of partner is not ground for dissolution
of partnership firm. |
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| Ans: |
(1)Incorrect;
(2) Incorrect; (3) Correct; (4) Incorrect;
(5) Correct; (6) Correct; (7) Incorrect; (8)
Correct; (9) Incorrect; (10) Incorrect
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State
with reasons whether the following statements
are correct or incorrect : |
(2
x 10 = 20 marks)
|
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(1)
|
Every
agreement is necessarily regarded a contract. |
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(2)
|
Consideration
may be present or future but not past. |
|
| (3) |
A
minor cannot be appointed as an agent, as he
is not competent to contract. |
|
| (4) |
A
contract can be avoided if consent is caused
by fraud. |
|
| (5) |
In
a contract of guarantee, there are two contracts. |
|
| (6) |
Breach of condition gives rise to a right to
repudiate the contract of sale. |
|
| (7) |
Right of lien is linked with the posession of
goods. |
|
| (8) |
When
a firm is unregistered, a third party annot
exercise any right against it. |
|
| (9) |
A partner may acquire immoveable property on
behalf of the firm, in the exercise of his implied
authority. |
|
| (10) |
Bailee
can retain the goods bailed until he has been
paid lawful charges. |
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