Business Law MCQ on Consideration: Check the below Business Law MCQ on Consideration with Answers Pdf free download. Business Law MCQ on Consideration Questions for Business Law with Answers were prepared based on the latest exam pattern. We have provided Business Law MCQ on Consideration with Answers to help students understand the concept very well.

Business Law MCQ on Consideration

1. The term ‘consideration’ in legal terms is defined in:
(a) Sec 2(a).
(b) Sec 2(b)
(c) Sec 2(c)
(d) Sec 2(d)

2. If there is no consideration, then _________.
(a) The agreement is void
(b) The agreement is valid
(c) The agreement is illegal
(d) The agreement is voidable

3. As a general rule, an agreement made without consideration is:
(a) Void
(b) Voidable
(c) Valid
(d) Unlawful

4. A valid consideration has the following essential elements :
(a) It must move at the desire of the promisor
(b) Consideration may be supplied by the promisee or any other person
(c) Consideration may be past, present or future
(d) All the above

5. Past consideration means _________.
(a) Money received in the past without making even a proposal
(b) The price which is more than the promisee’s expectation
(c) A past act done before the promise is made
(d) None of the above

6. The latin term “quidpro quo” refers to :
(a) Something in return
(b) Stranger to consideration
(c) Something sensible
(d) Something valuable

7. Consideration must move at the desire of ____.
(a) Promisor
(b) Promisee
(c) Promisor or any Third-Party
(d) Both (a) and (b)

8. A promise to pay a time-barred debt must be :
(a) Oral
(b) Written and signed
(c) Registered
(d) Written and registered

9. A promised to obtain for B employment in the public service, and B promised to pay Rs.5 lakhs to A. In this case, the agreement is:
(a) Void
(b) Voidable
(c) Valid
(d) None of these

10. A stranger to a consideration _________.
(a) Can file a suit
(b) Cannot file a suit
(c) Can file, only with consent of court
(d) Is similar to stranger to a contract

11. X promised Y, a priest, to pay ₹ 10,000 as char-ity. The priest on X’s promise incurred certain liabilities towards the repairing of the temple to the extent of ₹ 7,500. Y, the priest, can recover from X _________.
(a) ₹ 10,000
(b) ₹ 7,500
(c) Nothing
(d) ₹ 7,500 plus damages

12. A stranger to a contract _________.
(a) Can file a suit
(b) Can file a suit only with permission of court
(c) Can file a suit, if contract is in writing
(d) Cannot file a suit

13. A promise to pay a time barred debt is enforceable, if some conditions are fulfilled. Which of the following conditions is not required ?
(a) It must be signed by the promisor
(b) It must be definite and express
(c) It must be in writing
(d) It must be registered

14. An agreement not supported by consideration is called:
(a) Consensus ad idem
(b) Ignoratia juris non execuset
(c) Ab initio
(d) Nudum Pactum

15. In India, a person who is stranger to the consideration _________.
(a) Can sue on the contract, if he is a party
(b) Cannot sue the contract
(c) Depends on the parties
(d) Depends on the circumstances

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By Team Learning Mantras