Business Law MCQ on Free Consent | Business Law MCQs for CA Foundation and Other Competitive Exams

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

Business Law MCQ on Free Consent


1. If the agreement is made by obtaining consent by doing an act forbidden by the Indian Penal Code, the agreement would be caused by:
(a) Coercion
(b) Fraud
(c) Misrepresentation
(d) Undue influence

View Answer

(a) Coercion


2. Lending money to a borrower, at high rate of interest, when the money market is tight renders the agreement of loan:
(a) Void
(b) Valid
(c) Voidable
(d) Illegal

View Answer

(b) Valid


3. Where a person is in a position to dominate the will of another person and uses that position to obtain on unfair advantage it is called:
(a) Fraud
(b) Coercion
(c) Undue influence
(d) Misrepresentation

View Answer

(c) Undue influence


4. If there is no consent the agreement is:
(a) Void
(b) Voidable
(c) Illegal
(d) Valid

View Answer

(a) Void


5. When a person, who is in dominating position, obtains the consent of the other by exercising his influence on the other, the consent is said to be obtained by:
(a) Fraud
(b) Intimidation
(c) Coercion
(d) Undue influence

View Answer


6. If consent in not free due to coercion, undue influence, fraud, and misrepresentation then the agreement is:
(a) Void
(b) Voidable
(c) Illegal
(d) Valid

View Answer

(b) Voidable


7. While obtaining the consent of the promisee, keeping silence by the promisor when he has a duty to speak about the material facts, amounts to consent obtained by:
(a) Coercion
(b) Misrepresentation
(c) Mistake
(d) Fraud

View Answer

(d) Fraud


8. A buys an article thinking that it is worth ₹ 100 when in fact it is worth only ₹ 50. There has been no misrepresentation on the part of the seller. The contract is:
(a) Valid
(b) Void
(c) Voidable
(d) Unenforceable

View Answer

(a) Valid


9. ‘A’ threatened to commit suicide if his wife did not execute a sale deed in favour of this brother. The wife executed the sale deed. This transaction is:
(a) Voidable due to under influence
(b) Voidable due to coercion
(c) Void being immoral
(d) Void being forbidden by law

View Answer

(b) Voidable due to coercion


10. An agreement caused by unilateral mistake of fact is:
(a) Void
(b) Voidable
(c) Illegal
(d) Valid

View Answer

(d) Valid


11. A threatens to shoot B, if B does not agree to sell his property to A at a stated price. B’s consent in this case has been obtained by ________.
(a) Fraud
(b) Undue influence
(c) Coercion
(d) None

View Answer

(c) Coercion


12. Unlawfully detaining or threatening to detain any property, to the prejudice of any person making him to enter into an agreement amounts to:
(a) Threat
(b) Coercion
(c) Undue influence
(d) Misappropriation

View Answer

(b) Coercion


13. “Active concealment of fact” is associated with which one of the following?
(a) Misrepresentation
(b) Undue influence
(c) Fraud
(d) Mistake

View Answer

(c) Fraud


14. A master asks his servant to sell his cycle to him at less than the market price. This contract can be avoided by the servant on grounds of:
(a) Coercion
(b) Undue influence
(c) Fraud
(d) Mistake

View Answer

(b) Undue influence


15. An agreement made under mistake of fact, by both the parties, forming the essential subject matter of the agreement is:
(a) Void
(b) Voidable
(c) Valid
(d) Unenforceable

View Answer

(a) Void


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By Team Learning Mantras

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