TOPPERS INSTITUTE

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Mercantile Law

CPT-TEST-1
Name of Student-------------------------Time Allowed : 40 Min. 1. Date :-----------------Maximum Marks : 40

X promises to deliver his watch to Y and, in return, B promises to pay a sum of Rs. 5,000. There is said to be a/an (a) Agreement (b) Acceptance (c) Offer (d) Proposal X owns a residential house in Delhi. He is entitled to quiet possession and enjoyment of his property. This is called (a) Right in Rem (b) Right in personam (c) Constitutional Right (d) None of the above. X agrees to deliver his old car valued at Rs. 10000 to Y, a car dealer, in exchange for a new car, and agrees to pay the difference in cash it is (a) Contract of sale (b) Barter (c) Exchange (d) None of the above. X agrees to sell certain goods to Y at a price which is to be fixed by Z , if Z refuses to value the goods and fix the price of such goods, the agreement is (a) No effect (b) Void (c) Valid (d) None of the above X agrees to deliver 100 fridge sets to Y in exchange of 100 T.V. sets. This is a (a) Sale (b) Contract of sale (c) Barter agreement (d) Agreement to sell X and Y agree to divide the profits of a business in equal shares but the loss if any, to be born by X alone. The partnership agreement is (a) lawful (b) void (c) illegal (d) voidable. X and Y two brothers buy hundred computer sets agreeing to share the same between them. It is a (a) Partnership (b) Co-ownership (c) Joint venture (d) H. U. F business.

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X and Y are the joint- owners of a house. They rent it out to Z and divide the rent equally. They are (a) Partners (b) Co-owners (c) Co-partners (d) Both a and b. CS. Anoop Pandey 1 Mob: 9873197307

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X is employed by ABC & co. a partnership firm. X is entitled to remuneration of Rs. 50000 p.m. plus 12% on the profits of the firm, if profit exceed Rs. 12 Lakhs. here (a) X is not deemed as a partner in the firm (b) X is deemed as a partner in the firm (c) The appointment of X is invalid (d) X can claim only Rs. 50000 p.m. but not share of profits. X and Y are partners in a firm dealing in garment. A placed an order in the firms name and on the firms letter pads for 10 bottle of wine to be supplied at his residence. (a) The firm is not liable for As act (b) The firm is liable for tort. (c) A has acted within his implied authority (d) The firm is liable for As act X owes Rs. 5 lakh to Y. Y is entitled to recover this amount from X. This is called (a) Right in Rem (b) Right in personam (c) Constitutional Right (d) None of the above. X invites Y for his sons wedding. Y accepts the invitation. In this case, there is an agreement but no contract, since (a) There is no consideration (b) There is no written document (c) There is no intention to create legal relationship (d) There is no formal acceptance of the offer. X married Y and left for the U.S.A. promising to pay Y Rs. 5000 per month till such time X was in the U.S.A., This is a case of (a) Valid contract (b) Void contract (c) Voidable contract (d) Social Obligation, not an agreement. Prior to enactment of The Indian Partnership Act, 1932, the law relating to partnership in India were embodied in : (a) Companies Act (b) Chapter XI of The Indian Contract Act (c) Hindu Law (d) Chapter X of The Indian Contract Act

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15. An agreement between the partners must be : (a) Valid (b) Lawful (c) Competent to contract (d) All of these 16. Which of the following is not a kind of partner : (a) Dormant partner (b) Partners in losses only (c) Partner by estoppel (d) Nominal partner 17. Which of the following words can be used as a part of a firm name? (a) Crown (b) Queen (c) Royal (d) Sterling

CS. Anoop Pandey

Mob: 9873197307

TOPPERS INSTITUTE

Ph: 65545176

18. Failure by a minor to give public notice within six months will have the following effect: (a) The partnership becomes an illegal association (b) The partnership firm stands dissolved (c) Minor automatically becomes partner (d) Minor automatically ceases to be a partner 19. A and B purchased a second hand car, get it renovated for selling an shared the proceeds equally. They are: (a) Partners (b) Co-ventures (c) Joint owner (d) None

20. To a Nominal Partner, which of the following conditions does no apply? (a) He gives his name to the firm (b) He does not take part in firm's business (c) He does not invest in the firm (d) He is not liable to third parties 21. X and Y formed a partnership firm to undertake construction of a Terminal for Northern Railway at Pune. This partnership is a : (a) Limited Partnership (b) Partnership at Will (c) Particular Partnership (d) Joint Venture

22. Which of these can be admitted as a partner? (a) Minor (c) Partnership firm 23.

(b) HUF (d) Corporate body

In the absence of specific provisions in the Partnership Deed, every partner is bound to contribute in________ to the losses of the firm: (a) Equally (b) Profit Sharing Ratio (c) Capital Ratio (d) Any of the above manner X promises to give Rs. 10000 per month pocket money to his son Y. If X does not give the pocket money (a) Y can accept a lower pocket money also (b) Y can sue his father (c) Y has to give Rs. 10000 to his father (d) Y has no remedy against. X gives some sugar to Y on sale or return basis. On the same day Y gives those sugars to Z on sale or return and from him they are lost. Who shall bear the loss? (a) X will bear the loss (b) Y will bear the loss (c) Z will bear the loss (d) None of the above. X purchased a papers from y and sold it to Z who found that the paper was infested with white ants and returned it to x. can x return the goods to Y? (a) No (b) Yes (c) Z has to return directly (d) None of the above. 3 Mob: 9873197307

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CS. Anoop Pandey

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Ph: 65545176

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X delivered a house to Y on the condition of sale or return within 10 days. The horse died within that period. (a) X had to suffer a loss as the horse was the property of X (b) Y had to suffer a loss as the horse was the property of Y (c) Y had to suffer a loss as the horse was under the possession of Y (d) None of the above. A of Mumbai writes to B of Delhi to send him a book by post parcel is lost on the way. Can B recover the price? (a) No, delivery to post office is not a delivery to buyer (b) Yes, delivery to post office is not a delivery to buyer (c) No B has not got the book (d) None of the above. X sells to Y on credit of 7 months. If Y does not pay even after 7 months and Y extends the period for another 15 days. Can X exercise his right of lien? (a) Yes, if he is in possession of goods (b) No, since there is an implied waiver of lien (c) Only when Y becomes insolvent (d) Only after the expire of the further credit period. X sells and consigns certain goods to Y assigns bill of lading for these goods to Z to secure the sum of Rs. 5000 due from him to Z, Y becomes insolvent (a) X can stop the goods in transit (b) X can not stop the goods in transit (c) A can claim against Y and Z (d) None of the above. Goods means every kind of movable property including: (a) Actionable claims and currency money (b) Old currency notes (c) Goodwill and copyright (d) Both (b) and (c) X owes Y totally Rs. 50000. He sends a cheque for Rs. 20000 stating that it shall be appropriated towards he first sum of Rs. 20000 he took from Y. Y shall appropriate it towards (a) That debt as indicated by X (b) Any debt due from X (c) Any disputed debt due from X (d) Any time barred debt due from X. X contract to sell his T.V. to Y for Rs. 5000 and Y agrees to pay on delivery. Once the T.V. is delivered to Y and Y pays Rs. 5000, contract comes to an end. This is known as (a) Rescission of a contract (b) Waiver of a contract (c) Discharge of a contract (d) Breach of a contract.

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CS. Anoop Pandey

Mob: 9873197307

TOPPERS INSTITUTE

Ph: 65545176

34. In case of default by joint promisors, the promisee: (a) Cannot sue any single promisee (b) Can sue anyone of them to the extent of his share in the joint promise (c) Can sue anyone of them for the entire promise (d) Both (a) and (b) 35. X, Y and Z jointly promise to pay Rs. 3000 to A in the absence of express agreement to the contrary a can bring an action against (a) Any two of them only (b) All of them together (c) Any one of them, at this choice (d) The oldest amongst them. X, had bought cloth for making bags for sale during hots. Due to delay in transit Y was unable to utilize it to his benefit during the tasking season. X sued to recover damages for deterioration. Such damages are in the nature of (a) Vindictive damages (b) Nominal damages (c) General damages (d) Special damages. X promises Y to perform a music concert for 4 days continuously. A willfully absents on the 4th day Y rescinds the contract. In such case, for the loss sustained due to nonperformance in 4th day. (a) Y can claim compensation (b) X can claim compensation (c) Y cannot claim compensation (d) X cannot claim compensation X agrees to pay Rs. One Lakhs to Y if he brings on earth a star from sky. This is contingent contract and (a) Void (b) Valid (c) Voidable (d) Illegal. X agrees to pay Rs. 10000 to Y if a certain ship returns within a year. However, the ship sinks within the year. In this case, the contract becomes (a) Valid (b) Void (c) Voidable (d) illegal X saves Ys property from fire. X is entitled to compensation from Y, if the circumstances show that X intended to act (a) Gratuitously (b) Non-gratuitously (c) Either a or b (d) None of the above

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CS. Anoop Pandey

Mob: 9873197307