Foundation PN-1 Fundamentals of Business Laws & Business Communications Quiz 3

1. X, a tailor, employed Y as his assistant under an agreement that Y, on termination of his employment shall not start the business of a tailor. This restraint is :

2. A agrees with B to discover treasure by magic for a consideration of ₹500. This is :

3. A enters into an agreement with B who has robbed A of ₹10,000 to drop prosecution against him (B) in consideration of B’s returning ₹8,000. Afterwards B refused to pay. A can get from B

4. B let a cabin on hire to P a prostitute, knowing that it would be used for immoral purposes. The agreement is :

5. B, having discovered a vein of ore on the estate of A, adopts means to conceal, and does conceal, the existence of the ore from A. Owing to A’s ignorance B is enabled to buy the estate at a low- price. The contract is :

6. A, while filling up the insurance application form, states his age as 25 believing it to be true. His actual age was 27. The Life Insurance Corporation issued a policy in his favour charging a lower premium than what it should have charged if the actual age had been given. This is a case of :

7. A leaves a firm doing a particular business in Mumbai. He agrees with the other partners of the firm not to start a similar business as that of the firm in and around Mumbai for 3 years. This agreement is :

8. P engages B to kill C and borrows ₹100 from D to pay B. If D is aware of the purpose of the loan, the transaction is :

9. A promises B to pay ₹100 if it rains on Monday, and B promises A to pay ₹100 if it does not rain on Monday. This agreement is :

10. A promised to marry none else than Miss B and in default to pay her a sum of ₹1,000. Subsequently A married Miss C and Miss B sued for recovery of ₹1,000. The contract is :

11. Agreements between a husband and wife living in friendly environment are :

12. A agrees to sell to B ‘my white horse for ₹500 or ₹1,000’. There is nothing to show which of the two prices was to be given. The agreement is :

13. A agrees to sell to B a ‘hundred tons of oil’. There is nothing whatever to show what kind of oil was intended. The agreement is :

14. A and B agree that A shall pay ₹1,000 for which B shall afterwards deliver to an either rice or smuggled opium.In this case :

15. M, who is a dealer in mustard oil only, agrees to sell to N ‘500 litres of oil’. This agreement is :

16. If the seller agrees to supply all the goods produced by him to a certain buyer and to nobody else, and the buyer also, in turn undertakes to accept the whole of the quantity, the agreement is :

17. An agreement of service under which an employee agrees that he will serve a particular employer for a certain duration and that he will not serve anybody else during that period, is :

18. An agreement which restricts a person’s freedom to marry or to marry any person of his choice is against public policy and is :

19. Which one of the following is a void agreement?

20. A contract of insurance

21. Which one of the following is not a wagering agreement?

22. Which one of the following statements is correct?

23. In a wagering agreement:

24. An agreement will be unlawful if:

25. A contract to trade with an enemy is :