Solved Business Law Assignment_Most Useful-1

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A club or a society is an association of persons.

A company is a subsidiary company if the holding company controls the majority composition of its board of directors.

A Company is an artificial person and has a legal entity.

A Company subject to the provisions of section 32 of the companies act as unlimited may register under this Act as a Limited company.

A firm is a name given to the partners collectively.

A meeting is an assembly of a number of persons for transacting a lawful business having certain purpose or purposes.

A post-dated is a Cheque drawn with a future date.

A proposal comes to an end by its rejection .

A sale can only be in the case of future Or generic goods.

A sleeping partner is like an undisclosed principal.

A,B,C, and D are partners, A retires and B dies, the partnership between them comes to an end .

Agents are authorised to act within the scope of the authority given.

An agent is simply a connecting link between his principal and the third party.

An agreement of agency must make clear the intention of a person to act on behalf of another person.

An offer must create Legal relationship.

An Order of the Court asking a person to do or to refrain from doing a particular act, which is the subject matter of the contract, is known as Injunction.

Any person claiming himself as a consumer must prove that the services must have been rendered to him.

Articles are subordinate to and controlled by the memorandum.

As per S.2(1) (f) of the Consumer Protection Act, defect means any shortcoming in the quality of goods.

As per Sec. 2 (1) (O) of the Consumer Protection Act, service does not include rendering of any service under a contract of personal service.

Coercion implies committing or threatening to commit any act forbidden by the Indian Penal Code.

Defect is any fault, imperfection or shortcoming in quantity, quality, purity or standard to be maintained by or under any law for the time being in force under any contract express or implied.
Every promise and every set of promises, forming the consideration for each other, is an agreement.

Holding out means falsely leading another person to believe in something.

If any consideration is present while forming the agency then the relationship of agency becomes contractual.

In order to become a holder, a person must possess the instrument under some lawful title.

In the right of lien, the possession is retained by Unpaid seller.

Issued capital can be defined as the nominal value of shares which are offered to the public for subscription.

Karta of Joint-Hindu family is representative of his family.

Members of a club or a society are the friends of each other.

Notice of dissolution of firm must be explicit.

Partnership is based on Faith .
Past consideration is one which is wholly suffered by the promisee even before making of the agreement.

Poll is the capitalistic method of voting with the rule "one share one vote "

Prospectus is an invitation made to the public .

Quorum is the minimum number of members to be present at the meetings to conduct the business of the meeting as required by law.

Ratification is one of the ways of creating agency.

Reserved capital is the part of uncalled capital which can only be called up at the time of & for the purpose of winding up the company.

Special resolution and confirmation by Company Law Board is required for alteration of Memorandum.

The act done by the agent with the permission and on behalf of the principal is binding on the principal.

The agency can be terminated at any time by mutual agreement between the principal and his agent.

The Articles of Association controls internal operations of the company.

The company does not possess fundamental rights, stll it is a person in the eyes of law.

The confirmation of change of registered office of company within a state shall be communicated to the company within Four weeks from the date of receipt of such application.
The Consumer Protection Act of 1986 is basically passed to protect the interest of the consumer.

The directors of a company have to file their consent with the registrar to act as director.

The essential point about an agent's position is his authority of making his principal answerable to third parties.

The Indian Contract Act, 1872, does not cover all those duties which are not Contractual in nature.

The object of the Consumer Protection Act of 1986 is to educate the people so that they can find out legal remedies for their grievances.

The partners continue to be liable as such to _______________for any act done by them.

The person who buys the goods for trading purposes is not a Consumer under the Consumer Protection Act, 1986.

The property in the Negotiable Instrument passes from one person to another person by Mere/ Simple delivery.

The registration fo partnership firm is not compulsory .

There are certain relations, which are not created by contracts but are upheld by law, which are known as Quasi contracts.

There should be a Definite and real necessity for creating an agency.

Un-called capital is the part of issued and subscribed capital which has not been called up.

Under undue influence the dominant party may hold a real authority over the other party.

Unfair Trade Practice is a trade practice which for the purpose of promoting a sale, use or supply of any goods or for the provision of any service adopts any deceptive practice.
Unfair trade practice includes a representation made to public in a form that purports to be a warranty of a product.

Unpaid seller's Right to stop the goods in transit arises only when the buyer is Bankrupt.

When the endorsement of a bill is ‘for collection only’ the endorsee cannot be a holder.

When the notice of stoppage in transit is given by the seller to the Carrier in possession of goods, the latter must re-deliver the goods to the seller.

When the performance of contract becomes impossible, such contract need not be performed

When the person to whom the proposal is made Signifies his assent thereto, the proposal is said to be Accepted.

Where a conditional promise is made to pay either cash or money’s worth for an uncertain event, it is known as Wagering contract.

True/False

"I promise to pay Mr.John Rs.500/- seven days after my marriage with Miss Lucy" is a promissory note. False

A banker is a mercantile agent. False
A Bill of Exchange can be crossed. False
A Cheque can be bearer, Order or crossed. True
A cheque is a bill of exchange. True

A commission agent is generally appointed for selling and buying goods on behalf of his principal. True

A company can become a partner or can enter into a partnership agreement. False

A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price. True
A minor may draw, endorse, deliver and negotiate a negotiable instrument to bind other parties except himself. True

A Promissory Note contains conditional undertaking to pay a certain sum of money. False

A sale is an executed contract whereas an agreement to sell is an executory contract. True

A trader is a middleman bringing the buyer and seller together and receiving any commission for services rendered by him. False

Agents acting jointly and severally are known as co-agents. True

Agreement is defined as a contract at its inception. True

All contracts are agreements and all agreements are contracts. False

Alteration of memorandum of articles etc to be noted in every copy. True

An agency can be terminated after lapse of time or completion of the work. True

An agent does not have the right to enter into contracts with third parties. False

An agreement enforceable by law is a contract. True
An agreement should be certain and unambiguous. True

An agreement to sell takes place in the case of existing goods or specific goods. False

An auctioneer has full authority to sell the goods of his principal by private contracts. False

An insolvent person can accept or endorse a bill. False

An unpaid seller has a right against the goods but does not have any personal right against the buyer. FALSE

Any user of goods with the approval of the person who has purchased the goods for consideration is also a consumer. True

Bill of Exchange need not be stamped property. True
Company can be termed as a Body Corporate. True
Company is treated as a legal person distinct from its members. True

Consideration can not be a past consideration. False
Consumer is a person who procures service under a contract of personal service. False

Copies of memorandum and articles shall not be given to members. False

Directors are allowed to borrow from the public companies. True/False

Directors of a private company need to file their consent with the registrar to act as director or sign an undertaking. False

English Law does not recognize Formal Contract. False

Even if all the members of a company are citizens of India, the company does not become a citizen of India. True

Existing goods are those goods, which are owned and possessed by the seller at the time of sale.True

If all the members of a company are married, the company would not be a married person. True

If one of the parties to the contract dies the contract becomes void. False

In case of Bill of Exchange, the notice of dishonour is essential. True

In case the object of an agency becomes unlawful, the agency cannot be terminated. False

Loss of profits is an example of liquidated damages. False

Memorandum of a company is a primary and supreme document of the company. True

Mental acceptance amounts to an acceptance. False
Money order, Postal order, Share Certificates, Deposit receipts and such other documents are Negotiable Instruments. False

No consideration is required in formal contracts. True
Partners can decide their rights and liabilities in the partnership deed. True

Partnership is nothing but a psychological relationship existing between the partners. False

Persons who have entered into partnership with one another are called individually partners and they are collectively "a firm". True

Railway or S.T. Receipts, Dividend, Warrants, Railway Bonds are not Negotiable Instrument. False

Section 10 of the Indian Contract Act, 1872 applies to contract of sale. True

Sections 1 to 75 of the Indian Contract Act, 1872 provides for the special contracts. False

Services rendered by the Post and Telephone Department are covered by the Consumer Protection Act, 1986. True

Special agent and Particular agent mean one and the same thing. True

Special Notice and Special Resolution mean one and the same. False

Specific goods are those which are identified and agreed upon at the time of a contract of sale is made. True

Stock is a synonym used for Shares. False
Subsidiary company can hold shares and can acquire membership of the holding company. False

The Central Government may, by license direct the association to be registered which is formed as a limited company for promoting commerce, art etc. True

The company cannot exceed the powers conferred on it by its memorandum. True

The company law board confirms the change of registered office of the company within a state.False

The company law board may, at any time, by order, extend the time for the filing of documents. True

The estate of a deceased partner or the legal representatives of a deceased partner cannot be held liable for any act of the firm. True

The law relating to sale of immovable goods is contained in the Sale of Goods Act, 1930. False

The membership of the association of company shall cease on the dissolution of the firm. True

The partners need not sign the partnership deed. False

The principal can ratify unauthorised act of an agent. False

The provisions of sale of goods were previously included in the Indian Contract Act, 1872. True

The relation between a doctor and his patient is not fiduciary in nature. False

The social or the domestic contracts are excluded from the purview of the Indian Contract Act, 1872. TRUE

The subscriber of the memorandum of a company on its registration shall be entered in its register of members as member. True

There are two types or kinds of capital of a company, i.e. owned capital and borrowed capital. True

Unenforceable agreements and illegal agreements mean one and the same thing. False

Multiple Choice Single Answer

A breach of a condition may be treated as breach of-Warranty

A cheque is dishonoured by :-Non payment only

A company can sue and also be sued by-In its corporate name

A company which has a control over a subsidiary company is a –holding company.

A Company, when registered with limited liability under the Companies Act 1956, shall be deemed to be a company-Limited by shares

A condition may be reduced to where goods are accepted by the buyer.

A consumer has right to be assured, wherever possible, access to services at-competitive prices

A cooler was purchased not for his own use, but it was installed at a bus-stand for the use of public free of charge. it was held that the purchaser was a consumer because :-There was no commercial purpose

A factor is a type of-Mercantile Agent

A legal representative being holder of Negotiable Instrument can sue-after the death of the holder

A partner who invests capital & share profits but do not take active part in firm's business is-a dormant or sleeping partner

A private company can be registered with a paid-up capital of Rs. :-One lakh

A proposes by a letter sent by post to sell a house to B at certain price, B accepts A's proposal - The communication of the acceptance is complete as against B.-when letter is received by A

A public company doesn't have its own articles of association, it may adopt-Table A as given in schedule-1.

A stipulation in a contract of sale with reference to goods which are subject there of may be- A condition or warranty

Acceptance should be made in-The manner prescribed by the promisor and if not prescribed in any reasonable manner

According to the Consumer Protection Act of 1986, goods means as defined under-Sale of Goods Act, 1930

Agency can be created by-Operation of law

An agency is based upon consent and hence, it is a-consensual relations

An agent was instructed by his principal to insure the goods, but he neglected to insure the goods. As a result, the principal had to suffer the loss. Who is responsible for the loss ?agent

An agreement can become a contract if it is-enforceable by law

An agreement with a minor is not voidable but –void ab initio.

An example of implied agency is-Agency by Holding-out

Applicability of the Negotiable Instruments Act 1881- applies and extends to the whole of India

Company based on ownership is –public company.

Consideration or object of an agreement is lawful unless it is-forbidden by law

Consumer is a person obtaining goods for consumption.

Dissolution by the order of the Court at the suit of a partner on certain grounds, which include-Willful or persistent breach of agreement by a partner

Dissolution by voluntary act of the partners, which includes-dissolution by agreement

During the war, all the members of a private company were killed while they were in general meeting in a bomb attack. The questions is whether the company will :-Survive

Enforcement of contingent contract depends on-Happening or Non-happening of the event

Every company must have-A Specific name

Following is an implied condition-Condition as to sale by sample

For obtaining recognition as an 'Appropriate Laboratory", the applicant shall send an application in the proforma prescribed by the :-Bureau of Indian Standard

For the existence of a partnership there must be an association of-Two or more persons

For the formation of the contract of sale of goods, there should be- two parties

Goods identified at the time contract of sale are known as-Ascertained goods

If any member of the Central Council wants to resign from the Central Council, he may do so by a letter addressed to the :-Chairman

If there is breach of a condition, the aggrieved party gets a right to-repudiate the contract

Illusory consideration can also be called as-deceptive

In a private company shares can-be but with restrictions transferred

In a sale, if the buyer becomes insolvent before he pays the price of the goods purchased, the person who can claim the delivery of the goods as the property in goods has been already transferred as a-official assignee or receiver

In an agreement to sell the seller is responsible for all the risk of loss as he is the-Owner

In an appeal to the National Commission the appellant shall submit-Six copies of memorandum

In case of a public limited company, the maximum number has no limit, but the minimum is fixed at-7

In contract of sale the buyer becomes-Absolute owner of the property

In contract of sale-ownership in the property is passed from the seller to the buyer.

In order to convert a proposal into a promise the acceptance must be-absolute and unqualified

In the Bill of Exchange, the person to whom the bill is made payable is called as –payee.

In the Bill of Exchange, the person who is ordered to pay is called as :-Drawee

In the right of lien, the possession is retained by-Unpaid seller.

Memorandum of a public company must be signed by-Seven persons

Mr. Dang and Mr. Thomas work together. Mr. Dang receives all the profits earned and pays Mr. Thomas certain amount for his work as wages. whether Mr. Dang and Mr. Thomas are-Master and Servant

Mr. Manik appoints Mr. Naveen as his agent to sell the goods at Rs.10,000/- on his behalf. Mr. Naveen sells the goods for Rs.12,000/- who is liable to account for it to-Mr. Naveen

Mr. Red and Mr. White register their company as a private company with a share capital of Rs. 7, 00,000/- divided into 70,000 shares of Rs.10/- each. Mr. White holds 69,999 shares while Mr. Red holds only 1 share. This is a :-One man company

Non-registration of a partnership firm does not make the partnership agreement –void.

One man company is generally a-private company

One of the characteristics of Company is that it is-an artificial person

Quasi Contract rests on the ground of :-Equity

Sale is a contract plus-conveyance

Sale is a contract plus-executed contract

The altered memorandum must be filed within-three months of the company law boards order

The capacity to contract with an agent is the part of the law of-statute

The goods that are identified and agreed upon at the time of a contract of sale is made- specific goods

The holder of a negotiable instrument has a right to sue for recovery.

The intention of the Negotiable Instrument Act is to govern-legal relationship

The meaning of the term “Caveat Emptor” is-let the buyer beware

The members of the district forum shall not be less than thirty five years of age.

The monetary jurisdiction is based upon the :-Amount of relief claimed by the complainant

The National Commission has the power to entertain appeals against the orders of any –State Commission.

The National Commission shall decide the complaint as far as possible within a period of-three months from the date of notice received by the opposite party

The object of carrying on a business must be :-Sharing of profits.

The ownership capital of the company is divided into a number of-Shares

The parties of the contract should be major in age according to the law to which they are subject.

The rights & liabilities of an expelled partner-are exactly same as that of a retiring partner

The term of central protection council is-three years

The unpaid seller has a-right against the buyer

The unpaid seller has a-right against the goods

The vacancies arising from resignation of the members of the Central Council shall be filled from the same category by the-Central Government

Under a contract of sale goods have to be exchanged for-Money

Unless there is any agreement to the contrary, on the insolvency of any of the partners of the partnership firm, the firm-is automatically dissolved

Waiver-Deliberate abandonment of a rights by the parties to the contract

When an agent has the authority to do all acts connected with the business or trade of his principal, he is known as-a general agent

When an endorser increases his own liability under the instrument by express words, the endorsement is said to be facultative.

When an offer is made to world-at-large, the contract is-made with the person who signs or performs the terms and conditions of the offer.

When the property in goods is transferred from the seller to the buyer at once, the contract is called a sale.

Where a contract of sale is subject to any condition to be fulfilled by the seller, the buyer may-Waive the condition

Where the partners agree to carry on the business for a definite period of time, the partnership is said to be –for a fixed period.

Where the property in goods sold has been passed, the unpaid seller has the-right to stop goods in transit

Where the transfer of property in the goods is to take place at a future time it is called-Agreement to sell

Which authority of an agent can be inferred from the circumstances of the case ?-implied