Q#1 What is the primary source of business law in most countries?
(A) Constitution
(B) Judicial precedents
(C) Statutory laws
(D) International treaties
Answer: (C) Statutory laws
Q#2 What does the term “contract” refer to in business law?
(A) A promise without legal obligation
(B) A legally enforceable agreement
(C) A business proposal
(D) A verbal understanding only
Answer: (B) A legally enforceable agreement
Q#3 Which of the following is not essential for a valid contract?
(A) Offer and acceptance
(B) Consideration
(C) Written form
(D) Lawful object
Answer: (C) Written form
Q#4 Who is a minor under contract law in most legal systems?
(A) A person under 16
(B) A person under 18
(C) A person under 21
(D) A person under 25
Answer: (B) A person under 18
Q#5 Which law governs the sale of goods in commercial transactions?
(A) Company Law
(B) Contract Law
(C) Sale of Goods Act
(D) Tort Law
Answer: (C) Sale of Goods Act
Q#6 Which of the following is NOT a type of business organization?
(A) Sole proprietorship
(B) Partnership
(C) Corporation
(D) Arbitration
Answer: (D) Arbitration
Q#7 What is the legal term for failing to perform a contract?
(A) Tort
(B) Breach
(C) Agreement
(D) Negligence
Answer: (B) Breach
Q#8 What is a partnership?
(A) A legal entity separate from its owners
(B) A company owned by the state
(C) A business owned by two or more persons sharing profit
(D) A public limited company
Answer: (C) A business owned by two or more persons sharing profit
Q#9 What is the main purpose of commercial law?
(A) To regulate criminal offenses
(B) To regulate social behavior
(C) To govern business and commercial transactions
(D) To monitor environmental activities
Answer: (C) To govern business and commercial transactions
Q#10 Which of the following contracts must be in writing?
(A) Sale of a book
(B) Employment contract
(C) Sale of land
(D) Oral promise to pay
Answer: (C) Sale of land
Q#11 What is the legal status of an agreement made under coercion?
(A) Valid
(B) Voidable
(C) Void
(D) Enforceable
Answer: (B) Voidable
Q#12 A company is a ___________.
(A) Sole trader
(B) Partnership
(C) Legal entity
(D) Government agency
Answer: (C) Legal entity
Q#13 Consideration in contract law refers to:
(A) The time taken to decide
(B) A moral obligation
(C) Something of value exchanged
(D) A written agreement
Answer: (C) Something of value exchanged
Q#14 What does the term “capacity to contract” mean?
(A) Ability to pay
(B) Legal competence to enter a contract
(C) Signing authority
(D) Power of attorney
Answer: (B) Legal competence to enter a contract
Q#15 Which court handles commercial disputes?
(A) Family court
(B) Small claims court
(C) Commercial court
(D) Juvenile court
Answer: (C) Commercial court
Q#16 What is the liability of partners in a general partnership?
(A) Limited to capital invested
(B) No liability
(C) Unlimited and joint
(D) Liability of managing partner only
Answer: (C) Unlimited and joint
Q#17 Which of the following terminates an offer?
(A) Death of the offeror
(B) Counter-offer
(C) Rejection
(D) All of the above
Answer: (D) All of the above
Q#18 The doctrine of caveat emptor means:
(A) Let the buyer beware
(B) Let the seller beware
(C) No liability on seller
(D) Contract must be written
Answer: (A) Let the buyer beware
Q#19 What is meant by ‘free consent’ in a contract?
(A) Consent with full knowledge
(B) Consent obtained by force
(C) Consent under pressure
(D) Consent influenced by fraud
Answer: (A) Consent with full knowledge
Q#20 Which body regulates companies in most countries?
(A) The Supreme Court
(B) The Bar Council
(C) Company Registry / SECP (Pakistan)
(D) High Court