1. The term “Partnership” is defined in Section ------- of the Indian partnership act, 1932.
A) 2
B) 3
C) 4
D) 5
2. Persons who have entered into partnership with one another are collectively called as --------
A) Partners
B) Directors
C) Firm
D) None of the above
3. Partnership is a subject in the ----------------
A) Union List
B) State List
C) Concurrent List
D) None of the above
An action for the indemnity can be brought against a partner
A) By the firm
B) By any partner on behalf of the firm
C) By a partner in his individual capacity
D) Either (A) or (B)
5. A property of a partner becomes the property of the firm
A) When it is used for the business of the partnership
B) When the property is owned by the partners
C) When there is an agreement express or implied that the property is to be treated as that of the firm
D) None of the above
6. The property of the firm includes ----
A) All property and rights and interest in property originally brought into the stock of the firm
B) All property and rights and interest in property acquired, by purchase or otherwise, by or for the firm for the purposes and in the course of the business of the firm, and includes also the goodwill of the business
C) Both (A) and (B)
D) None of the above
7) Which of the following courts has the jurisdiction for trying an offence punishable under section138 of the Negotiable Instruments Act, 1881?
A) Judicial Magistrate of Second Class
B) Judicial Magistrate of First Class
C) Chief Judicial Magistrate
D) None of the above
8. A post dated cheque is only a --------------- when it is written or drawn, it becomes a cheque when it is payable on demand.
A) Promissory Note
B) Bill of Exchange
C) Draft
D) None of the above
9. The offence u/s 138 of the Negotiable Instruments Act is ----
A) Cognizable and bailable
B) Non-cognizable and non-bailable
C) Cognizable and non-bailable
D) Non- cognizable and bailable
10. A promissory note is made by ---------
A) Creditor
B) Debtor
C) Holder
D) Drawee
11. Right of Indemnity Holder is specified in ----
A) Section 126
B) Section 125
C) Section 124
D) Section 123
12. X and Y go into the shop. Y says to the shopkeeper ‘let him have the goods, I will see you paid’. This is a contract of ------
A) Guarantee
B) Bailment
C) Indemnity
D) Pledge
13. Contract of Indemnity as defined in the Indian Contract Act, 1872 covers only ------
A) Liability incurred by something done by the indemnified at the request of the indemnifier
B) Indemnity for loss caused by human agency
C) Indemnity arises from loss caused by the events or accidents which do not depend upon the conduct of indemnifier or any other person
D) None of the above
14. Which one of the following is not a party to a contract of guarantee?
A) Principal Debtor
B) Creditor
C) Surety
D) Pawnor
15. Anything done or any promise made, for the benefit of the principal debtor, may be a sufficient consideration to the surety for giving the guarantee. The statement is
A) True
B) False
C) Partly correct
D) None of the above
16. In a contract of guarantee, the person to whom the guarantee is given is known as ------
A) Principal debtor
B) Creditor
C) Surety D) Bailor
17. In a contract of guarantee, the liability of surety is ------
A) Primary
B) Collateral and secondary
C) Does not arise
D) None of the above
18. Surety is a ----------
A) Favored creditor
B) Favored debtor
C) None of the above
D) Both (A) and (B).
19. A guarantee obtained by means of keeping silence as to material circumstances is --------
A) Valid
B) Void
C) Invalid
D) Voidable
20. A leaves a cow in the custody of B to be taken care of. The cow has a calf. In the absence of any contract to the contrary
A) B is bound to deliver only the cow to A
B) B is bound to deliver the calf as well as the cow to A
C) B is bound to deliver the calf as well as the cow if he is plaid half the price of the calf.
D) B is bound to deliver the calf as well as the cow if he is paid one third of the price of the calf.
21. An example of bailment without a contract is ------
A) Giving a vehicle in a workshop for repair
B) Giving something in courier
C) Finder of the lost goods
D) None of these.
22. A finder of goods is
A) Entitled to retain the goods
B) Entitled to claim compensation when specific reward is offered
C) Not entitled to claim compensation and thus not entitled to retain the goods
D) Both (A) and (B)
23. Which of the following are the rights of bailee?
A) Right of indemnity
B) Right of remuneration
C) Right of lien
D) All the above.
24. Which of the following are the rights of bailor?
A) Right to demand restoration of goods
B) Right to get increase or profit from goods bailed
C) Right to sue the bailee for the enforcement of the duties imposed upon a bailee
D) All the above.
25. Which of the following is not an example of bailment?
A) Giving clothes for dry-cleaning
B) Keeping property in mortgage
C) Giving clothes for tailoring
D) Giving book for reading