Select The Blank

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

Multiple Choice Multiple Answer

A company is :-Voluntary Association of persons , An artificial legal

person ,A separate legal entity
A company is a legal person with a perpetual succession-it never dies ,it can
be put to an end to only by process of law

A company is a legal personality and as such it can-Own its property in its

own name ,Enjoy its property in its own name ,Dispose of its property
in its own name

A company is registered as an artificial person. It has no-Body ,Soul

,Conscience

A company may, by special resolution, alter the provisions of its memorandum so

as to change the objects of the company so far as may be required to enable it-
Carry on its business more economically, Amalgamate with any other
company , Attain its main purpose by new or improved means

A condition is a type of stipulation and has the following characteristics It is of

the subsidiary character, the breach of it gives the suffered party the
one and only one right to repudiate the contract

A Consumer has the following rights-To get the education of the availability
of legal remedies, Seek redressal against unfair trade practices ,To be
informed about quality, quantity, potency, purity, standard and price
of goods

A consumer is-Nominee under a policy of life insurance ,A Railway

passenger ,An employee who is member of Employees Provident Fund
Scheme

A minor admitted to the benefits of partnership is-not personally liable for

any act of firm,not entitled to sue partners for account ,entitled for
the profits of agreed upon

A partner is called as an outgoing partner by-retirement ,death ,expulsion

A person is considered the holder of Negotiable Instruments if :-His name

appear on an instrument ,He is in possession of bearer instrument
,He is the endorsee of a cheque

A person is deemed to be dominated the will of another if-a real or apparent

authority over them ,he stands in a fiduciary relation to other

A proposal :-May be revoked before the communication of acceptance is complete,Should

be complete against the propose,Should be complete against the proposer
A sale can be in case of :-Specific goods ,Existing goods

According to rule 3 of the consumer protection rules, the central council consists
of the following members- Minister in charge of the dept of home,
Minister in charge of the dept of Commerce and industry, Minister in
charge consumer affairs in states

According to the Consumer Protection Act, 1986, a person includes :-Hindu

undivided family , Co-operative society ,Individual as well as juristic
person

Agent has duties towards principal in addition to :-Conducting principal's

business , Rendering accounts to principal ,Communicating with the
principal

Amendments made in the Consumer Protection Act in 1993 are-To add

"services" relating to housing constructions ,To enable filing class
action complaints , To impose punishment on the complainant in
cases of vexatious complaint.

Amendments made in the Consumer Protection Act in 2002 include-Provision

for substitution of legal heir or representative as a party to the
complainant in the event of the death of the opposite party. ,Provision
for recovery of amounts ordered to be paid by consumer redressal
agencies as arrears of land revenue. ,Provision for recharging of fee in
respect of complaints filed before the consumer redressal agencies

An unregistered firm can bring an action in any court of Law against-a partner
who steals the property of the partnership firm ,a partner who
purposely damages the property of the partnership firm

An unregistered firm can institute a suit against-wrongful use of the trade

mark ,wrongful use of the firm name

Articles of Association contains-Regulations of the company ,Internal

affairs of the company ,Conduct of company's business
Certain effects of the insolvency of a partner are as follows :-n insolvent
partner ceases to be a partner , The partnership firm dissolve on the
insolvency of any partner

Characteristics Articles of Association are-it contains rule for the internal

management of the affairs of the company ,it is subordinate to the
Memorandum of Association

Classification of companies based on the jurisdiction of functioning is-A

National Company, Multinational Company,Foreign Company

Coercion means and includes :-Any act forbidden by the Indian Penal
Code ,Any threatening to commit illegal act

Complaint under the Consumer Protection Act, 1986 relates to :-Unfair Trade
Practices , Restrictive Trade Practices ,Charging of higher prices

Conditions required to avoid a contract on the ground of supervening

impossibilty of performance of the contract-the goods must have been
perished before the risk is passed to the buyer ,the loss is not caused
by the wrongful act or default of either buyer or seller

Consent is free when it is not caused by-Undue influence ,Fraud ,Mistake

Consent means-assent of another ,assent to support a claim ,consent of

the offeror to the contract

Documents to be presented for the registration of a company with the registrar

are :-The memorandum of the company ,Its articles ,The agreement, if
any

During the continuance of the firm, a transfer by a partner of his interest is the
firm restricts the transferee to-inspect the books of the firm ,require
accounts ,interfere in the conduct of a business of a firm

Following are the agencies of a three tier system of consumer disputes redressal
agencies :-State commission ,National commission ,District Forum
Following are the characteristics of the partnership at will :-Partners are
always free to break their relationship at their will ,It is for indefinite
period ,No provision for determination or termination of the
partnership

Following are the conditions needed to prove an act of a partner is an act of a

partnership firm-such an act be done in a ordinary course of a
partnership firm ,it must be related to the business of the firm ,act
must have been done in the name and on behalf of the firm

Following are the conditions to be fulfilled before a seller can be deemed to be an

unpaid seller-he must have an immediate right of action for the price
,he must have sold goods against cash and the price must be due

Following are the elements which constitute a partnership-there must be a

contract regarding a partnership ,there must be an association of two
or more persons

Following are the essential of Undue influence-there must be some

relationship between the parties ,It is mainly of moral character

Following are the essentials of Coercion :-Intention to induce someone to enter into an
agreement,Threatening to detain property, unlawfully,There must be some relationship
between the parties,It is mainly of moral character

Following are the essentials of valid acceptance-acceptance must be qualified

,acceptance must be communicated to the offeror

Following are the examples of statutory companies-Reserve Bank Of India

,Unit Trust Of India

Following are the persons who cannot enter into partnership firm-A Burmese
Buddhist husband and wife carrying on business ,the members of
Hindu Undivided Family carrying on Family business

Following are the types of jurisdiction, which have been conferred on the State
Commission-Appellate, Supervisory ,Revisional

Following is true about the Articles of Association-it is required to be signed

by the subscribers of the memorandum of association ,is to be
registered along with the memorandum ,a public company may have
its own articles of association

Following persons can not be called partners-minors ,insolvents ,co-owners

without the agreement to carry on the business

Fraud means and includes following act -promise to deceive other party
,promise without intending to perform

Goods include-trade marks ,good will

Goods means-birds ,gas

Goods means-debentures, stocks & shares

Goods means-growing crops ,stocks & shares

If the principal comes to know that the agent has dishonestly concealed from him
any material fact, the principal-can repudiate the transaction ,may affirm
such transaction ,may claim damages for loss

In a sale if the seller becomes insolvent after a contract of sale and the buyer has
paid the price, the buyer can claim the goods from the-Official Assignee
,Receiver

In special agency-agency lasts for a specific period ,agency lasts for a

particular type of job or work ,agents has limited authority

In the absence of usage or custom of trade to the contrary, the implied authority
of a partner does not empower him to-acquire movable property on behalf
of the firm , transfer movable property belonging to the firm,
withdraw a suit or proceeding filed on behalf of the firm

In the Conditional endorsement :-The liability of the endorser is

limited,The liability of the endorser is negative, Endorser's liability
can be made dependent upon contingency

Instruments payable on demand are-Cheque ,Promissory Note ,Bill of

Exchange

Jurisdictions of the National Commission are :- Monetary, Appellate, Supervisory and

Revisional
Liabilities of partners arises to third party-for wrongful acts of partners, for
misappropriation by its partners, for acts of the firm

Misrepresentation contains following ingredients-positive assertion ,breach of

duty without intention to deceive ,causing another party to make a
mistake as to the substance of the thing

Negotiable instrument recognised by law are-Bill of exchange ,Cheque

,Promissory Note

Negotiable Instruments recognized by usage are-Hundies ,S.T. Receipts for

goods ,Pay off Orders

Presumptions do not arise where an instrument is obtained by-fraud ,offence

,illegal consideration

Promise may be fraud if it is made-without intending to perform it,to

deceive

Promissory note must be in :-In writing ,Definite ,Unconditional

Property of the company is the property of-Promoters before the existence

of the company , the company itself after its incorporation

Public notice is required to be given- on the dissolution of a firm which is registered, on the
retirement of any of the partner of a registered firm

Section 2. of Indian Contract Act defines proposal as-when one person

communicates his desire to do something for another to obtain the
assent of another that is a proposal. , when one person signifies to
another his willingness to do or to abstain with a view to obtain the
consent of another that is a proposal.

Selection committee for the appointment of the District Forum consists of-
President of the State Commission ,Secretary of the Law Dept. of the
state

The acts or transactions made by the agent can be ratified if the acts or
transaction are-illegal, criminal, void ab initio

The companies having articles are- Unlimited company, company limited

by guarantee, company limited by shares
The corporate veil under the Companies Act may be lifted in the following
instances-To investigate the real ownership of shares ,To investigate
the names and members of the company ,To investigate whether the
company is sham

The Exception to the rule of "buyer beware" are-quality of goods are not
merchantable , presence of patent defect in goods

The Exception to the rule of "buyer beware" are-usage by trade, sale of goods
by description, consent by fraud

The following types of companies are required to have their own articles-
Unlimited companies , Companies limited by guarantee ,Private
companies limited by shares

The ingredients of the proposal are-communication by one to another ,to

do or to abstain from doing something ,the object should be to take
assent of another

The liability of companies on the basis of liability are :-Unlimited companies

,Limited by guarantee ,Limited by shares

The maker, acceptor or endorser respectively of a negotiable instrument is

discharged from liability thereon by-release ,payment ,non cancellation

The memorandum of every company shall state-The name of the company

,The registered office ,The main objects

The modes of termination of agency are-By completion of the agency

business ,By death of principal ,By expiry of period or time

The object of the contract should be :-Legal one ,Lawful

The principal must give compensation to his agent in respect of injury caused to
an agent by the :- Principal's neglect ,Principal's want of skill
,Principal's want of knowledge

The Prospectus is-A document raising share capital , A Prospectus can

be, any notice , Issued to invite the subscription to shares
The requirement of valid Memorandum of Association are that it-is to be
signed by at least seven persons in case of public company,is to be
signed by at least two persons in case of private company

The State Council consists of the following members :-Minister in-charge of

consumer affairs in the State Govt. ,Members representing such
interests as may be prescribed by the State Govt.

The three ingredients in the performance of a contract of sale by the seller are-
Transfer of property in goods ,The passing of the risk ,Delivery of
goods

The unpaid seller has the following rights against the buyer personally- suit for
interest, repudiation of contract

The unpaid seller has the following rights against the goods-stoppage in
transit, withholding the delivery of goods

The unpaid seller loses his lien on the goods sold when – he delivers the
goods to a carrier for the purpose of transmission to the buyer and
does not reserve the right of disposal of the goods, the seller
voluntarily abandons his right of lien on the goods

The very important stages in the connection of formation of a company are-

Promotion , Registration ,Floatation

There are certain limitations to the principle of ratification which are-where the
principal does not have full knowledge at the fact ,where the act to be
ratified is illegal or void ,where the ratification is not done within a
reasonable time

There can not be any partnership where a business is carried on-with a

benevolent purpose , where any one of the partners is entitled to total
profit earned

There is always a direct privity of contract between the principal and the following :-
Substituted agent,Co-agent, General agent

There is always a direct purity of contract between the principal and the following
- substituted agent , co-agent , general agent

There was a contract for sale of goods. Delivery was to be given in october. Owing
to a strike in the port of loading, the goods were not shipped until November. The
buyers are entitled to-Repudiate the contract ,Recind the contract

To turn an agreement into contract the consideration-should be legal ,should

be lawful , should be law abiding

Transmission of shares takes place due to-death of a member ,insolvency of

a member , lunacy of a member

Under section 144, mode of service of summons are-by speed post ,by courier
services ,by concerned police station

1. Match The Following

Minor Partner Admitted for profits only

Dissolution of a Partnership Death or Insanity of the partners

Firm Partners

Partner Agents of the firm

Partnership Can be formed at Will

2. Match The Following

Minor's Agreement Void ab initio

Threatning to commit Coercion

Consideration Past, Present and Future

Mistake Fact and Law

3. Match The Following

Any person who for the consideration
becomes the possessor of a promissory note
Holder in due course

Negotiating Negotiable Instruments so as to bind all, except himself A

minor

Non-acceptance express authority endorsement in full

A partner accepting Negotiable Instrument

Implied authority

A person who can't accept or indorse a bill An

insolvent

4. Match The Following

Penalty for false particulars Imprisonment for
three months

Partnership deed Name, Place, Date

A statement in prescribed form and accompanied by fees Required for

registration

The registrar of firms To rectify any

mistake

5. Match The Following

Minor Partner Admitted for profits only

Dissolution of a Partnership Death or Insanity of the partners

Firm Partners

Partner Agents of the firm

Partnership Can be formed at Will

6. Match The Following

Presentation of Negotiable Instrument For payment

When an endorser signs the instrument and adds a

direction to pay the amount mentioned therein Endorsement in full

Default in payment of amount of cheque Dishonour of

cheque

Notice of dishonour of cheque Mandatory

provision

7. Match The Following

An Outsider or a stranger who holds himself out or
represents himself to be a partner of the partnership firm
and induces outsider to give credit to the firm partner by estoppel

A person who becomes a partner by entering into

partnership agreement & is actual engaged in the
conduct and management of the partnership business Ostensible partner

A person who only lends his name to the partnership

firm but does not invest any capital in the firm nor
does take any interest in the affairs of the firm Nominal Partner
Nominal Partner

When partners agree to share the profits of the

partnership firm with any outsider, such An outsider
is known as Sub-Partner

A partner whose existence in the firm is kept secret

from the outside world Dormant Partner
Dormant Partner

8. Match The Following

Sale Exchange of goods for price

Barter Exchange Exchange of goods for goods

Sale of Goods Act, 1930 Movable goods

Caveat Emptor Let the buyer beware

Quiet possession Implied Warranty

9. Match The Following

Two parties Contract of Sale

Monetary consideration Price for the goods

Unpaid Seller Right of lien on goods

Future Goods Agreement to sell

Identified Goods Ascertained Goods

10. Match The Following
Partner by holding-out Partner by estoppel

Dissolution of partnership Completion of ventures

Right of a partner To retire

Partner is liable Loss caused by fraud

Sleeping Partner Dormant Partner

11. Match The Following

Unascertained goods Generic goods

Unpaid seller Right of lien on goods

Future goods Agreement to sell

Identified goods Ascertained goods

12. Match The Following

Fact and Law The types of "Mistake"

An order of the court asking a person to do

or abstain from doing a particular act,
which is the subject matter of the contract Injuction Order

The Indian Contract Act, 1872 applies to whole

of India except the state of Jammu and Kashmir Applicability

An agreement enforceable by law Contract