MCQ for CA Intermediate LAW - PART 2 - OTHER LAWS - Chapter 1 - THE INDIAN CONTRACT ACT, 1872

Sample Multiple Choice Questions (MCQ's) for CA Intermediate - Paper 2 - Corporate and Other Laws - PART 2 - OTHER LAWS - Chapter 1: THE INDIAN CONTRACT ACT, 1872 - For Practice relevant for May/November 23 Examinations

Q:1 Bailment is an act of delivering…………?

  1. Goods
  2. Services
  3. Goods and Services
  4. None of the above.

Answer: 1

Q:2 What is the form of contract under the contract of guarantee?
  1. Must be oral
  2. Must be written
  3. Either oral or written
  4. None of the above

Answer: 3

Q:3 Bhavan owes Chetan a debt guaranteed by Amit. Chetan does not sue Bhavan for a year after the debt has become payable. In the meantime, Bhuvan becomes insolvent. Is Amit discharged?Decide with reference to the provision of the Indian Contract Act, 1872?

  1. Amit is discharged from his liability
  2. Amit is discharged for half ofthe amount of Bhaven's liability
  3. Amit Is not discharged
  4. None of the above

Answer: 3

Q:4 What are the rights of indemnity holder u/s 125?

  1. Right to recoverdamages
  2. Right to recover cost of suit
  3. Right to recover the sums paid as a compromise of the suit
  4. All of the above

Answer: 4

Q:5 Which among the following are not to be considered as a contract of indemnity?

  1. A contract of Fire Insurance
  2. A contract of Marine Insurance
  3. A contract of Life Insurance
  4. All of the above

Answer: 3

Q:6 Ravi becomes guarantor for Ashok for the amount which may be given to him by Navin within 6 months. The maximum limit of the said amount is Rs. 1 Lakh. After two months Ravi withdraws his guarantee. Up to the time of revocation of guarantee. Navin had given to Ashok Rs. 20,000. Whether Ravi is discharged from his liabilities to Navin for any subsequent loan? And, whether Ravi is liable if Ashok fails to pay the amount of Rs. 20,000 to Navin?

  1. Ravi is discharged from all the liabilities
  2. Ravi is liable to pay the said maximum limit of Rs. 1, 00,000
  3. Ravi is liable to pay the part of the amount of the maximum limit.
  4. Ravi is not discharged for the loan of Rs. 20,000 already given by Navin to Ashok and discharged from all the liabilities after the date of evocation of continuing guarantee

Answer: 4

Q:7 C, the holder of an overdue bill of exchange drawn by A as surety for B, and accepted by B, contracts with X to give time to B. Is A discharged from his liability?

  1. A is not discharged from his liability
  2. A is discharged from his liability
  3. A Is discharged from his liability to X
  4. A Is discharged from his liability only to C

Answer: 1

Q:8 Where 'X' obtains housing loan from LIC Housing and if 'Y' promises to pay LIC Housing in the event of 'X' failing to repay - Depict who is the Surety, the Principal Debtor and the Creditor in the given case?

  1. X: Principal Debtor; LIC: Surety; Y: Creditor
  2. X: Surety; LIC: Principal Debtor; Y: Creditor
  3. X: Principal Debtor; LIC: Creditor. Y: Surety
  4. X: Surety; LIC: Creditor; Y: Principal Debtor

Answer: 3

 

CA Intermediate LAW - PART 2 - Other Laws - MCQ for Chapter 2 -   

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