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- 1. Multiple Choice
______ is the bailment of goods as security for payment of a debt or performance of a promise
Equitable Mortgage
Pledge
Gratuitous Bailment
Mortgage
- 2. Multiple Choice
The delivery of goods by one person to another for some specific purpose and time is known as:
Equitable Mortgage
Pledge
Bailment
Hypothecation
- 3. Multiple Choice
When a customer gives his/her valuables, Securities to the bank for safe keeping then the customer became the _______
Bailor
Creditor
Debtor
Bailee
- 4. Multiple Choice
When a bank grants loan or other credit facilities to the customer then the Banker is ____
Borrower
Creditor
Debtor
Agent
- 5. Multiple Choice
A non-gratuitous bailment or bailment for reward is one that involve some consideration passing between the bailor and the bailee.
True
False
Partly True
Partly False
- 6. Multiple Choice
Which of the following is not covered under the ‘contract of Indemnity’?
Fire insurance
Theft insurance
Life insurance
Marine insurance
- 7. Multiple Choice
Who authorizes Mercantile Agents to buy or sell goods?
Commercial Agent
Principal
Broker
Banker
- 8. Multiple Choice
Legislation may provide that a contract must be made in writing, or that a contract is not enforceable unless evidenced in writing. Is it true that, if there are no written formalities, the contract will be void in both instances?
True
False
Partly True
Partly False
- 9. Multiple Choice
A contract of guarantee is a tripartite agreement between the __________
principal debtor, bailor and indemnifier
pawnor. bailee and indemnity holder
principal debtor, bailor and surety
principal debtor, creditor and surety
- 10. Multiple Choice
A principal owes a duty to ________ the agent for any losses the agent suffers because of the principal. This duty usually arises where an agent is held liable for the principal's misconduct.
indemnify
Ratify
Rectify
Vilify
- 11. Multiple Choice
Which ONE of the following is a correct statement of law?
An agent is a person who acts on behalf of another:
To protect a principal’s goods or services
To promote the sales of his principal
In entering into contracts
To improve a businesses’ performance
- 12. Multiple Choice
Which of the following is not a method of terminating an agency relationship by operation of law?
bankruptcy of the principal
mutual agreement
death of either the principal or the agent
insanity of either the principal or the agent
- 13. Multiple Choice
Any guarantee which the creditor has obtained by means of keeping silence as to material circumstances is:
valid
considered to be his approval
invalid
considered to be his denial
- 14. Multiple Choice
Which of these contracts has three parties consisting of creditor, principle debtor and surety:
Contract of indemnity
Contract of surety
Contract of pledge
Contract of guarantee
- 15. Multiple Choice
A sub-agent is a person employed by and acting under the control of __________.
The principal only
The original agent in the business of agency only
Both the principal and original agent only
Neither the Principal nor the original agent
- 16. Multiple Choice
A Contract of Indemnity is a form of _________.
Void Agreement
Quasi Contract
Contingent Contract
Wagering Contract
- 17. Multiple Choice
A surety can be discharged from his liability by _______.
By Notice
By Novation
By his Death
All the options
- 18. Multiple Choice
Voluntary transfer of possession from one person to another is called __________
Sale
Purchase
Delivery
Exchange
- 19. Multiple Choice
As per Section 182 of the Contract Act, an agent is one _______
Who is employed by another
To do any act for another
To represent another in dealing with third person
All the options
- 20. Multiple Choice
In all cases of bailment, the bailee is bound to take as much care of the goods bailed to him as a man of ordinary prudence would under similar circumstances. The statement is :
True
False
Partly correct
None of the options
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