CA CPT Mercantile Law Question Papers 2013

1. A sells his dog through auction sale. B was the highest bidder. B purchases the dog was of unsound mind but A doesn't disclose this fact to B. The act of A is ___________?

a) The act is fraudulent
b) It amounts to sale
c) It amounts to illegal act
d) It doesn't amount to fraud

2. Which of the following can be a party to enter into a contract?

a) A convict under sentence
b) Joint stock company
c) Minor
d) All of the above

3. An unsound person 'B' is liable for necessaries provided to him to the extent of :-

a) 'B' estate
b) B personally
c) B's relative
d) B's son

4. Silence amounts to fraud when:-

a) Silence is not equivalent to speech
b) Silence is equivalent to speech
c) Where circumstances show
d) None

5. A agrees to pay 10 lacs to B if B procures an employment for A in Income Tax Department.

a) Valid
b) Voidable
c) Void
d) Illegal