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Free MCQ for Business Law-CA Foundation November, 2020 Exams

Chapter-1 Nature of Contracts

Meaning & Essentials of Contracts 

Here we will find a short practice set of 15 Free MCQ for Business Law-CA Foundation November, 2020 Exams. As CA Foundation examination is now more focused on conceptual clarity, these Free MCQ for Business Law will Help you to assess your conceptual understanding. So prepare yourself 100% for your exams.

Multiple Choice Questions

  1. An agreement enforceable by law is a 
    1. Promise
    2. Contract 
    3. Obligation 
    4. Lawful promise
  2. Every promise and every set of promises, forming the consideration for each other, is an 
    1. agreement
    2. Contract 
    3. Obligation 
    4. Lawful promise
  3. A proposal when accepted becomes a 
    1. Promise
    2. Contract
    3. Offer
    4. Acceptance
  4. When at the desire of the promisor, the promisee or any other person has done or abstained from doing or does or abstained from doing or promises to do or to abstain from doing something, such act or abstinence or promise under section 2(d) is called
    1. Reciprocal promise 
    2. Consideration for the promise
    3. Counter offer 
    4. acceptance
  5. Promises which form the consideration or part thereof, for each other under section 2(f) are called 
    1. Acceptances for different proposals
    2. Agreements
    3. Reciprocal promises
    4. Consideration
  6. Which is correct 
    1. Proposal + acceptance = promise 
    2. Promise + consideration = agreement 
    3. Agreement + enforceability = contract 
    4. All the above 
  7. In a valid contract, what comes first 
    1. Enforceability 
    2. Acceptance 
    3. Promise
    4. Proposal
  8. A contract with or by a minor is  
    1. Valid contract 
    2. Void contract 
    3. Voidable contract 
    4. Voidable at the option of either party
  9. Enforceable agreements are the one 
    1. Made by free contract 
    2. Parties to the contract are competent to enter into an agreement 
    3. Having lawful consideration and lawful object 
    4. All of the above 
  10. Competency to contract relates to 
    1. Age of the parties 
    2. Soundness of mind of the parties 
    3. Both age and soundness of mind 
    4. Intelligence of the parties 
  11. Which one of the following is correct? 
    1. Past consideration is no consideration 
    2. Consideration can be past, present or future 
    3. Consideration can only be present 
    4. Consideration can only be present and future 
  12. Past consideration is valid in 
    1. England only 
    2. India only 
    3. Both in England and India
    4. Neither in England nor in India 
  13. Consideration should be something in return of promise which
    1. Both the law and parties regard, as having some value 
    2. Only law regards a having some value
    3. Only parties regard some value
    4. Only adequate value necessary 
  14. Contract Act, 1872 doesn’t includes 
    1. Social agreements 
    2. Commercial agreement 
    3. Domestic Agreement
    4. a& c 
    5. None of the above 
  15. An agreement becomes a contract when 
    1. These is some consideration for it 
    2. Parties are competent to contract 
    3. Their consent is free and their object is lawful 
    4. All of the above 

Free MCQ for Business Law

Answer Key 

  1. (b)     2. (a)     3. (a)     4. (b)     5. (c)     6. (d)     7. (d)     8. (b)     9. (d)     10. (c)      

11. (b) 12. (c)    13. (a)     14. (d)     15. (d)  

Practice More:

Free MCQ on Capacity to Contract

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