MCQ-III Sem-B Com - Business regulations

13. If a contract provides for the payment of a certain amount on breach of a contract, such payment is termed as: (a) special damages (b) nominal damages (c) liquidated damages (d) compensatory damages 14. The effect of refusal to accept a properly made offer of performance is that: (a) the promisor is not responsible for non-performance and can sue the promisee for the breach of contract. (b) such offer lapses on rejection by the offeree. (c) the contract is rendered voidable at the option of promisor. (d) the contract is discharged by anticipatory breach. 15. Which of the following case is not covered by the concept of supervening impossibility? (a) Destruction of subject matter (b) Death or incapacity of the promisor (c) Outbreak of war (d) Difficulty of performance 16. In which of the following circumstances a contract can be treated as discharged under the concept of supervening impossibility? (a) spurt in prices (b) change in import policy (c) non-receipt of raw material from the supplier (d) shortage of working capital 17. Under the Contract Act, 1872 a person is said to be of sound mind for the purpose of making a contract if: (a) he is not illiterate and can read and understand the terms of the contract. (b) he is capable of understanding the contract and forming a rational judgement as to its effect upon his interests. (c) he is of the age of majority and is not disqualified from contracting by any law to which he is subject. (d) he is not suffering from any mental disease or distress. 18. A positive assertion, in a manner not warranted by the information of the person making it, of that which is not true, though he believes it to be true is said to be a: (a) fraud (b) misrepresentation (c) mistake (d) misinterpretation 19. A minor can: (a) be an agent (b) be a principal (c) both (d) none of these 20. The consent is said to be free when: (a) two or more persons agree upon same thing in the same sense. (b) all parties to the contract benefit from the contract. (c) it is not the result of coercion or undue influence or fraud or misrepresentation or mistake