COMMERCIAL LAWS (MCQs SET 1)

Q1: is chief executive of the province.

a) Chief minister.

b) Chief justice.

c) Home minister.

d) Governor.

Q2: In the absence of governor of province will perform the governor’s functions.

a) Chief minister of province.

b) Speaker of the provincial assembly.

c) Home minister of province.

d) Chief justice of province.

Q3: An appeal shall finally be dispose of, by the Supreme Court, hearing the appeal
within ................. days of the submission of appeal?

a) thirty (30).

b) ninety (90).

c) twenty one (21).

d) forty five (45).

Q4: Law lays down rules and guidelines for setting up and administrative running of business
according to:

a) number of branches.

b) number of directors.

c) categories of business.

d) volume of equity in business.

**Categories of business include sole proprietor, partnership and company etc.

Q5: A contract where both the parties have still to perform their respective promises is called:

a) unilateral contract.
b) executed contract.

c) executory contract.

d) partially executed and partially executory contract.

Q6: When offer is made to a definite person, it is known as:

a) special or specific offer.

b) cross offer.

c) counter offer.

d) general offer.

Q7: An agreement not enforceable by law is said to be .

a) voidable.

b) unenforceable.

c) void.

d) valid.

Q8: An acceptance is not according to the mode prescribed but the offeror decides to keep quite.
In such a case there is .

a) an unenforceable contract.

b) a contract.

c) no contract.

d) a voidable contract.

Q9: Express contract is made by:

a) words in writing only.

b) words spoken only.

c) words spoken or written.

d) None of these.

Q10: Mehreen makes offer to Rubab on 20th by a letter which reaches Rubab on 22nd. Rubab posts
letter of acceptance on 24th which reaches Mehreen on 27th. The communication of acceptance is
complete as against Rubab on .
a) 20th

b) 24th

c) 22nd

d) 27th

COMMERCIAL LAWS (MCQs SET 2)

Q1: An advertisement to sell goods by auction is:

a) a general offer to sell goods.

b) a specific offer to sell goods.

c) an implied offer to sell goods.

d) mere statement of intention to hold auction.

Q2: There is a counter offer when:

a) the offeree gives confidential acceptance or introduces a fresh term in acceptance.

b) the offeror makes a fresh offer.

c) the offeree makes some query.

d) the offeree accepts it.

Q3: Standing offer means:

a) offer made to the public in general.

b) offer allowed to remain open for acceptance over a period of time.

c) when the offeree offers to qualified acceptance of the offer.

d) offer made to a definite person.

Q4: Collateral agreements also become void in case of:

a) void agreements.

b) voidable contracts.

c) void contracts.
d) illegal agreements.

Q5: The law of contract in Pakistan is contained in:

a) Pakistan contract act 1930.

b) Contract Act 1872.

c) Pakistan contract act 1932.

d) Pakistan contract act 1972.

Q6: A contract where both parties have fulfilled their respective obligations is called:

a) unilateral contract.

b) executed contract.

c) executory contract.

d) partially executed and partially executory contract.

Q7: A notice that the goods stated in the notice will be sold by tender is:

a) an implied offer to sell goods.

b) a mere statement of intention to sell goods.

c) a general offer to sell goods.

d) an express offer to sell goods.

Q8: A contract is:

a) An agreement plus a legal object.

b) consensus ad idem.

c) an agreement plus a legal obligation.

d) a legal obligation.

Q9: Whether or not any stipulation other than time of payments is of the essence of the contract
depends upon:

a) application of section 11.

b) terms of the contract.

c) Operation of law.
d) All of these.

Q10: A stipulation in a contract of sale which is collateral to the main purpose of contract is called
as:

a) term.

b) warranty.

c) condition.

d) guarantee.

COMMERCIAL LAWS (MCQs SET 3)

Q1: Where the company is ordered to be wound up has a paid up capital of less than one million
rupees, or has no share capital, such appeal shall lie only if the grants leave to appeal.

a) High Court.

b) Supreme Court.

c) District Court.

d) Civil Court.

Q2: The finance bill may be originated in:

a) either Senate or National assembly.

b) Senate.

c) National Assembly.

d) Finance Department.

Q3: is the head of province.

a) Chief justice of province.

b) Governor.

c) Home minister of province.

d) Chief minister.

Q4: Collateral agreements also become void in case of:

a) illegal agreements.

b) void contracts.

c) void agreements.

d) voidable contracts.

Q5: A contract:

a) may become void subsequent to its formation.

b) may be void as originally entered into.

c) cannot become void under any circumstances.

d) may become void at the will of a party.

Q6: An offer is made to Mr. Zahid in a crowd, can/may be:

a) accepted by his friend.

b) accepted by his brother.

c) accepted by him alone.

d) accepted by any person who hears it.

Q7: A contract in which both the parties have to perform the promises is called:

a) tacit contract.

b) voidable contract.

c) executed contract.

d) bilateral contract.

Q8: Which of the following statement is correct?

a) An agreement not enforceable by law is a contract.

b) An agreement can only consist of an offer.

c) An agreement is an accepted proposal.

d) An agreement can only consist of an acceptance.

Q9: When the offeror offers to qualified acceptance of the offer subject to modification and
variations he is said to have made a .
a) cross offer.

b) standing open or continuing offer.

c) counter offer.

d) special offer.

Q10: A letter of acceptance sufficiently stamped and duly addressed is put into course of
transmission. There is .

a) a valid contract.

b) a contract voidable at the option of offeror.

c) a contract voidable at the option of acceptor.

d) no contract at all.

COMMERCIAL LAWS (MCQs SET 4)

Q1: An agreement is a voidable contract when it is:

a) enforceable by both parties.

b) not enforceable at all.

c) enforceable if certain conditions are fulfilled.

d) enforceable by law at the option of the aggrieved party.

Q2: It is necessary to determine the precise moment of time at which the ownership of goods
passes from seller to the buyer because:

a) risk passes with property.

b) suit for price by the seller does not lie unless the property has passed to the buyer.

c) action can be taken only by the owner.

d) All options are correct.

Q3: “Seller” means a person who .

a) Sells or agree to sell goods.

b) Agree to sell goods.

c) Sells goods.

d) has sold goods.

Q4: There shall in each High Court be one or more benches, each to be known as the company
Benches. Which of the following is empowered to constitute these benches?

a) Chief justice of High Court.

b) Governor.

c) Chief justice of Supreme Court.

d) Chief minister.

Q5: An advertisement to sell a thing by auction is:

a) an obligation.

b) an invitation to offer.

c) an offer.

d) no offer at all.

Q6: An agreement is:

a) offer.

b) acceptance.

c) offer, acceptance and enforceability.

d) offer and acceptance.

Q7: If Sajjad, who is dealer in coconut oil only, decides to sell 100 tons oil @ Rs. 20,000 per ton to a
wholesaler, this is a/an:

a) valid contract.

b) voidable contract.

c) uncertain contract.

d) void contract.

Q8: An agreement the object or considered of which is unlawful is called .

a) Voidable contract.
b) Illegal agreement.

c) Void contract.

d) Valid agreement.

Q9: The place of delivery can be .

a) The place where the parties have agreed.

b) The place where the goods are lying at the time of sale.

c) The place where the goods are manufactured.

d) All of these.

Q10: If no time is fixed, the seller must send them within:

a) Reasonable time.

b) Six months.

c) One month.

d) Two months.

COMMERCIAL LAWS (MCQs SET 5)

Q1: There is no presumption of undue influence between:

a) master and servant.

b) landlord and tenant.

c) medical attendant and patient.

d) spiritual advisor and his discipline.

Q2: The consideration may be .

a) past or future only.

b) past or present or future.

c) past or present only.

d) present or future only.

Q3: In case of illegal agreements, the collateral agreements are:

a) voidable.

b) valid.

c) void.

d) illegal.

Q4: A void agreement is one which is:

a) valid but not enforceable.

b) enforceable at the option of one party.

c) enforceable at the option of both the parties.

d) not enforceable in a court of law.

Q5: An agreement which is enforceable by law at the option of one or more of the parties thereon
but not at the option of the other or others is a .

a) illegal contract.

b) valid contract.

c) voidable contract.

d) void contract.

Q6: The following conditions must exist so that a promise to pay for the past voluntary services is
binding:

a) The services should have been rendered voluntarily.

b) The services must have been rendered for the promisor.

c) They must be in existence at the time when the services were rendered and must have intended to
compensate the promise.

d) All of the above.

Q7: Coercion involves .

a) moral pressure.

b) physical pressure.

c) false representation.
d) None of the above.

Q8: Undue influence involves:

a) use of physical pressure.

b) threat.

c) Use of position to obtain an unfair advantage over the other.

d) None of the above.

Q9: An agreement enforceable by law is a:

a) contract.

b) obligation.

c) lawful promise.

d) promise.

Q10: Implied contract, even if not in writing or express words, is perfect, if other conditions are
satisfied is a:

a) illegal contract.

b) valid contract.

c) voidable contract.

d) void contract.

COMMERCIAL LAWS (MCQs SET 6)

Q1: A notice that the goods stated in the notice will be sold by tender is:

a) an implied offer to sell goods.

b) a mere statement of intention to sell goods.

c) a general offer to sell goods.

d) an express offer to sell goods.

Q2: A contract is:

a) an agreement plus a legal objects.

b) consensus ad idem.

c) an agreement plus a legal obligation.

d) a legal obligation.

Q3: Whether or not any stipulation other than time of payment is of the essence of the contract
depends upon.

a) application of section 11.

b) terms of contract.

c) operation of law.

d) All of these.

Q4: In case of appropriation of goods, which are the essential requirements:

a) The goods should conform to the description and quality stated in the contract.

b) The appropriation must be by the seller with the assent of the buyer.

c) The goods must be in a deliverable state.

d) All options are correct.

Q5: It is necessary to determine the precise moment of time at which the ownership of goods
passes from seller to the buyer because:

a) Suit for price by the seller does not lie unless the property has passed to the buyer.

b) Risk passes with property.

c) Action can be taken only by the owner.

d) All options are correct.

Q6: The lien on unpaid seller depends upon

a) Possession.

b) Ownership.

c) Whether the buyer has paid the price or not.

d) Title.

Q7: If no time is fixed, the seller must sent them within:

a) Reasonable time.
b) Six months.

c) One month.

d) Two months.

Q8: A dormant partner is liable to third parties for the acts of the firm:

a) Whether or not his existence is known to third parties

b) Only if his existence is known to third parties.

c) Only if the other partners so desire.

d) Only if he undertakes to be liable to third parties.

Q9: Partnership is the relation between two or more persons:

i) who are sharing the profits & losses equally of a business carried on by all or any of them acting for
all.

ii) Who have agreed to share the profits of a business carried on by all.

iii) who have agreed to share the profits of a business carried on by all or any of them acting for all.

iv) All of the above.

a) Option (ii) is correct.

b) Option (i) is correct.

c) Option (iii) is correct.

d) Option (iv) is correct.

Q10: Which is NOT a characteristic of partnership firms?

a) Unlimited liability of partners.

b) Mutual agency.

c) Perpetual succession.

d) Sharing of profits of business.

COMMERCIAL LAWS (MCQs SET 7)

Q1: Haroon possesses an instrument he needed to indorse and deliver it to Imran. Haroon indorses
the instrument but dies the next day before delivery of the same to Imran. Legal representative of
Haroon delivers the instrument to Imran. Does Imran has the better title?

a) Yes, Imran possesses a better title because instrument was indorsed by Haroon. The delivery does
not matter.

b) Yes, Imran possesses a better title because instrument was finally delivered by legal
representative of Haroon.

c) No, Imran does not possesses a better title because after death of Haroon, instrument will be
invalid.

d) No, Imran does not acquire a better title because Haroon dies before delivery of endorsed
instrument to Imran.

Q2: The fictitious bill becomes a good bill in the hands of holder in due course provided he can:

a) proved that he has received bill in good faith.

b) prove first endorsement and drawer signature are same.

c) prove that drawee is a genuine person.

d) prove genuine transfer.

Q3: Which one of the following is the negotiable instrument.

a) money orders.

b) share certificate.

c) letter of credit.

d) share warrants.

Q4: The bids for procurement opportunities shall be submitted in a/an package or
packages.

a) open.

b) sealed.

c) transparent.

d) none of these.

Q5: “Value of money” means:

a) goods of highest price.

b) items which are mostly sought after or admired by general public.

c) value addition during manufacturing process.

d) best returns for each rupee spent from multiple aspects.

Q6: Rule 10 of the Public Procurement Rules, 2004 requires procurement specifications shall:

a) shall be generic.

b) allowed widest possible competition.

c) Shall not favor any single contractor.

d) All options are correct.

Q7: After bids have been submitted and opened against open competitive bidding, a bidder(s)
is/are:

a) allowed to alter the bid EXCEPT price subject to opportunity given to all bidders.

b) not allowed to alter the bid in any form.

c) allowed to alter the bid EXCEPT price.

d) allowed to alter the bid INCLUDING price subject to opportunity given to all bidders.

Q8: Bid against “open competitive bidding” shall be submitted in the following manner.

a) contents are fully enclosed.

b) before opening the bids offered price(s) can not be shown.

c) contents can not be known until duly opened.

d) All answers are correct.

Q9: The board constitute under Sec 6 of PPRA Ordinance 2002 includes members from
private sector.

a) four

b) two

c) one

d) three

Q10: The bid shall be open at least after the deadline for submission of bids.

a) 45 minutes.

b) 60 minutes.
c) 10 minutes.

d) 30 minutes.

COMMERCIAL LAWS (MCQs SET 8)

Q1: Appropriation of goods means:

a) Putting the quantity of goods sold in suitable receptacles.

b) delivering the goods to the carrier or other Bailee for the purpose of transmission to the buyer
with reserving the right of disposal.

c) separating the goods sold from other goods.

d) All options are correct.

Q2: The term “property” as used in the Sales of goods Act, 1930 means:

a) possession.

b) ownership.

c) both options a and b above

d) the subject-matter of contract of sale.

Q3: The person who buys or agrees to buy goods is known as:

a) consumer.

b) buyer.

c) both a and b above.

d) none of the above.

Q4: In case of a sale the position of a buyer is that of .

a) owner of the goods.

b) Bailee of the goods.

c) hirer of the goods.

d) none of the above.

Q5: There is no provision in the partnership deed regarding the duration of partnership. This is:

a) partnership at will.

b) partnership at estoppel.

c) partnership for an indefinite period.

d) partnership not recognized by law.

Q6: To for a partnership, the minimum capital contribution should be:

a) 1 lakh.

b) there is no minimum limit.

c) 1 crore.

d) 10 lakh.

Q7: A partnership firm comes into existence by agreement between all the partners, and such
agreement should be:

a) implied agreement only.

b) registered.

c) either express or implied.

d) express agreement only.

Q8: Which one is not a characteristic of partnership firm.

a) perpetual succession.

b) unlimited liability of partners.

c) mutual agency.

d) sharing of profits of organization.

Q9: Hamza made an endorsement by writing on the bill pay Zaheer on order Rs. 10,000. This type
of endorsement is:

a) general endorsement.

b) endorsement in full.

c) partial endorsement.

d) restrictive endorsement.
Q10: written in the instrument means amount would be paid to the person who’s name
is written on the instrument.

a) Pay to A or order.

b) Pay to A or bearer.

c) Pay to A or B.

d) Pay to A only.

COMMERCIAL LAWS (MCQs SET 9)

Q1: As per the procurement rules 2004, “Lowest evaluated bid” is defined as:

a) bid lowest in price.

b) bid highest in terms of quality of service and product.

c) bid with quick delivery terms.

d) bid most closely conforming to evaluation criteria specified in bidding documents.

Q2: Which one of the following is an advantage of the procurement?

a) doctrine of precedent makes the law clear as ratio decidendi is only followed.

b) a judgement may contain differing and conflicting arguments making the precedent hard to
understand and even harder to apply.

c) the doctrine of the precedent forces in a judge to distinguish the cases on illogical grounds in order
to avoid unfair results.

d) doctrine of the precedent limits the overall discretion which may lead to unfair results.

Q3: When offer is made to a definite person, it is known as:

a) special offer.

b) cross offer.

c) counter offer.

d) general offer.

Q4: An acceptance is not according to the mode prescribed but the offerer decides to keep quite.
In such a case there is:
a) an unenforceable contract.

b) a contract.

c) no contract.

d) a voidable contract.

Q5: Under the sale of goods Act 1930, property means:

a) general property in goods.

b) special property in goods.

c) both a and b above.

d) none of above.

Q6: “seller” means a person who:

a) sells or agrees to sell goods.

b) has sold gods.

c) sells goods.

d) agrees to sell goods.

Q7: Which of these are not necessary for constituting a partnership?

a) mutual agency.

b) written contract.

c) sharing of business profits.

d) two or more persons.

Q8: The law relating to partnership firm is contained in:

a) the partnership Act, 1935.

b) the partnership Act, 1933.

c) the partnership Act, 1932.

d) the partnership Act, 1930.

Q9: There is no provision in the partnership deed regarding the duration of partnership. This is:

a) partnership by estoppel.
b) partnership not recognized by law.

c) partnership for an indefinite period.

d) partnership at will.

Q10: Which one of the following bills need to be presented for acceptance?

a) A bill with specific stipulation of acceptance from drawee.

b) A bill payable at a specified period after sight.

c) A bill payable at a specified period.

d) A bill payable on expiry of certain period.

COMMERCIAL LAWS (MCQs SET 10)

Q1: To form a partnership, the parties should share:

a) profits and losses but some partners may not share losses.

b) both profits and losses.

c) only losses.

d) only profits.

Q2: When documents relating to the goods represented by the bill are attached to the bill, the bill
is called:

a) bill against goods.

b) fictitious goods.

c) documentary bill.

d) bill of exchange.

Q3: The Public procurement regulatory authority (PPRA) is required to make regulations that are in
compliance with relevant law. Which of the following correctly depicts such compliance.

a) Not inconsistent with the provisions of the PPRA ordinance, 2002.

b) Consistent with provincial procurement regulations.

c) Inconsistent with the provisions of the PPRA Ordinance, 2002.

d) It is requirement that PPRA regulations shall comply with international accounting standards.
Q4: The Procurement Rules, 2004 defines abnormal situation requiring prompt and immediate
action as:

a) corrupt and fraudulent practices.

b) procurement planning.

c) emergency

d) urgent procurement.

Q5: “Repeat order” means:

a) procurement with in cash purchasing limit.

b) procurement requiring ordering the same thing again and again.

c) tender for procuring supplies over certain limit.

d) procurement of the same commodity from the same source without competition and includes
enhancement of the contract.

Q6: After bids have been submitted and opened against open competitive bidding, a bidder(s) is/
are:

a) allowed to alter the bid EXCEPT price subject to opportunity given to all bidders.

b) allowed to alter the bid INCLUDING price subject to opportunity given to all bidders.

c) allowed to alter the bid EXCEPT price.

d) not allowed to alter the bid in any form.

Q7: As per definitions under the procurement rules, 2004, corrupt and fraudulent practices
includes:

a) misrepresentation of facts in order to influence execution of contract.

b) The offering or soliciting of any thing of value to influence the action of public official.

c) Solicitation of any thing of value by any public official.

d) All answers are correct.

Q8: The headquarters of the Public Procurement Regulatory authority shall be at .

a) Multan.

b) Karachi.
c) Lahore.

d) Islamabad.

Q9: Rule 10 of the Public Procurement Rules, 2004, requires procurement specifications shall:

a) shall be generic.

b) shall not favor any single contractor.

c) allow widest possible competition.

d) All options are correct.

Q10: In Senate, all provinces are represented:

a) equally.

b) by number in the same ratio as the members of the provincial assembly.

c) as per number of seats in National assembly.

d) by number in the same ratio as the members of the National Assembly.

COMMERCIAL LAWS (MCQs SET 11)

Q1: An ordinance promulgated by the president:

a) remains effective for four months if National Assembly is not convened.

b) stand repealed when National Assembly comes into session.

c) stands repealed within four months if it is not passed by the National Assembly.

d) remains effective unless repealed by the National Assembly.

Q2: The constitution shall be amended by majority in both houses of parliament.

a) 2/3

b) 1/4
c) simple.

d) 1/3.

Q3: Display of goods in the shop for sale with price tags in a super store where self-service system
is there is:

a) an implied offer to sell the goods.

b) a general offer to sell the goods.

c) an invitation to make an offer to buy.

d) an express offer to sell the goods.

Q4: Saeed agrees to pay Rs. 5000 to Yawar if it rains, and Yawar promises to pay a like amount
saeed of it does not rain, this agreement is called:

a) contingent contract.

b) quasi contract.

c) wagering agreement.

d) voidable contract.

Q5: Which one of the following is not contract:

a) Aijaz and Basit promises to marry each other.

b) Aijaz invited Basit to an iftar party. Basit accepts the invitation.

c) Aijaz takes a seat in a public vehicle.

d) Aijaz engages Basit for a certain work and promises to pay such remuneration as shall be fixed by
Qaiser. Basit does the work.

Q6: Which of the following statements is/are correct with respect to minor entering into a
contract?

i) An agreement with or by a minor is void-ab-initio.

ii) A minor can be beneficiary for a contract.

iii) The contracts involving a minor as a beneficiary may be enforced at the option of the third party.

iv) A minor can ratify a contract on attaining majority.

a) iii and iv
b) i and ii

c) ii and iii

d) i and iv

Q7: Implied contract is made:

a) by spoken words only.

b) by written words only.

c) otherwise than by words spoken or written.

d) None of the above.

Q8: A contract where only one party has to perform his promise is called:

a) unilateral contract.

b) executed contract.

c) executory contract.

d) partly executed and partly executory.

Q9: Asif who owes Rs. 2000,000 to Yasir dies leaving an estate of Rs. 500,000. The legal
representative of Asif are:

a) not liable at all.

b) liable for Rs. 500,000.

c) liable for Rs. 20,000.

d) liable for Rs. 2000,000.

Q10: Faraz a shopkeeper, sold a television set to Nadeem, who purchased it in good faith. The set
had some manufacturing defect and it did not work after a few days in spite of repairs. In this case,
the television was not merchandisable as it was not fit for ordinary purpose than,

a) the buyer has no right to reject the television.

b) the buyer has the rights to reject the television and to have refund of the price.

c) both options i and ii above.

d) None of the above.

COMMERCIAL LAWS (MCQs SET 12)

Q1: Whether or not any stipulation other than time of payment is of the essence of the contract
depends upon:

a) application of section 11.

b) operation of law.

c) terms of the contract.

d) All of these.

Q2: Which of the following statement is incorrect?

a) The partnership comes into existence only by an agreement.

b) A person who receives the profits is not necessarily a partner.

c) A person who receives the profits is always a partner.

d) The true test of partnership is the mutual agency i-e. agency relations among partners.

Q3: Where there is an unconditional contract for the sale of specific goods in a deliverable state,
the property in the goods passes to the buyer when,

a) the buyer accepts the goods.

b) the goods are delivered to the buyer.

c) the contract is made.

d) the price is paid by the buyer.

Q4: For the purpose of ascertaining the intention of the parties for the purpose of transfer of
property in goods from the seller to the buyer regard shall be had to:

a) the circumstances of the case.

b) The term of the contract.

c) The contract of the parties.

d) All options are correct.

Q5: Acceptance of delivery of goods is deemed to take place when the buyer:

a) intimates to the seller that he had accepted the goods.

b) does any act to the goods which is inconsistent with the ownership of the seller.

c) rejects and retains the goods after the lapse of a reasonable time, without intimating the seller.

d) All of the above.

Q6: The ownership in specific goods to be put in deliverable state passes:

a) when the intention is clear.

b) when the goods are brought in deliverable state by the seller.

c) when the seller has brought the goods into a deliverable state and the buyer has notice thereof

d) the contract is made.

Q7: Asif attended an auction sale and made a bid of Rs. 600,000 for a motor vehicle but withdrew
the offer before the fall of the hammer. One of the conditions of the sale, which Asif has read with
that biddings once made, shall not be withdrawn. Asif was sued for Rs. 600,000 his being the
highest bid:

a) Asif is not liable for Rs. 600,000.

b) Asif is liable for Rs. 600,000.

c) Asif is liable for Rs. 600,000 and damages.

d) Asif is liable for damages only.

Q8: Where there is a contract for the sale of specific or ascertained goods the property in them is
transferred to the buyer at the time when the:

a) contract is entered into.

b) parties intend the property in the goods to pass.

c) delivery of goods has been made.

d) price is paid.

Q9: The partners authority to act to the firm and to bind their co-partners continues even after the
dissolution of the firm.

a) To wind up the affairs of the firm.

b) To complete the unfinished transactions.

c) Both a and b.

d) None of these.
Q10: Which of these sharing arrangements reflects a partnership:

a) by the widow or child of the deceased partner as annuity.

b) by the lender of money to persons engaged or about to engage in any business.

c) by a partner who does not actively engaged himself in the day to day business affairs.

d) by a servant or agent as remuneration.

COMMERCIAL LAWS (MCQs SET 13)

Q1: The other partners may sue for the dissolution of firm where a partner has transferred?

a) 50% of his interest in the firm to a third party.

b) 25% of his interest in the firm to a third party.

c) 100% of his interest in the firm to a third party.

d) 75% of his interest in the firm to a third party.

Q2: Where the bill of exchange is expressed payable at a specified period of sight and no specified
time is mentioned for presentment then the bill must be presented within:

a) reasonable time.

b) specified period before sight.

c) expiry of bill.

d) two months.

Q3: which of the following statement is not true about minor’s position as a partner?

i) he cannot become a full fledged partner in a new firm.

ii) he can become a full fledged partner in an existing firm.

iii) he has to bear all liabilities like other partners.

iv) he can become a partner on becoming a major.

a) ii and iii

b) iii and iv

c) i and iv

d) i and ii
Q4: A cheque is crossed when it bears across its face an addition of the name of a banker,
either with or without the words “not negotiable”.

a) restrictive.

b) specially.

c) general.

d) none of these.

Q5: If drawee accepts the order of the drawer to pay specified sum in the bill in full without any
condition what so ever, the acceptance is said to be:

a) absolute acceptance.

b) full acceptance.

c) acceptance by drawee.

d) qualified acceptance.

Q6: Which of the following is correct with regards to the decisions taken by Public Procurement
Regulatory Authority (PPRA) Board?

a) All of the decisions of boards shall be in writing.

b) In case of tie in decision by the members of the Board, member presiding shall have the CASTING
VOTE.

c) The decision of the Board shall be taken by the majority of members.

d) All answers are correct.

Q7: Which of the following is correct with regards to meeting of Board of Public Procurement
Regulatory Authority (PPRA)?

a) The meeting of the board shall be presided over by the chairperson.

b) Five members shall constitute a quorum for a meeting of the Board requiring decisions by the
Board.

c) The meeting of the Board shall be presided over, in the absence of Chairperson, the member
elected by Board members.

d) All answers are correct.

Q8: Where the bids are to be evaluated on technical and financial grounds and price is taken into
account after technical evaluation, the bidding process used is .
a) single stage one envelop procedure.

b) two stage bidding procedure.

c) single stage two envelop procedure.

d) two stage two envelop bidding procedure.

Q9: All procurement opportunities over rupees should be advertised on the Authority’s
website as well as in other print media or newspaper.

a) 1.0 million.

b) 2.5 million.

c) 2.0 million.

d) 0.5 million.

Q10: Public Procurement Regulatory Authority (PPRA) requires a Fund to be set up known as
Public Procurement Regulatory Authority (PPRA) Fund. The fund is to be utilized by PPRA to
discharge duties under the PPRA Ordinance. This fund may be from the following sources and
utilized with:

a) The funds shall be spent with highest sense of prudence.

b) Federal government allocation to PPRA through annual budget.

c) Income from investment by the PPRA.

d) All answers are correct.

COMMERCIAL LAWS (MCQs SET 14)

Q1: It is mandatory for all procuring agencies to advertise all procurement requirements exceeding
prescribed financial limits. Which of the following is NOT an exception to this rule?

a) Procurement which can be made from multiple sources.

b) Its publication can hurt national security objective.

c) Procurement advertisement contains information which is proprietary in nature.

d) It is related to national security.

Q2: Standing offer means:

a) when the offeree offers to qualified acceptance of the offer.

b) offer allowed to remain open for acceptance over a period of time.

c) offer made to a definite person.

d) offer made to the public in general.

Q3: A notice that the goods stated in the notice will be sold by tender is:

a) an implied offer to sell goods.

b) an express offer to sell goods.

c) an general offer to sell goods.

d) a mere statement of intention to sell goods.

Q4: Which of the following statements is correct?

a) An agreement not enforceable by law is a contract.

b) An agreement can only consist of an offer.

c) An agreement is an accepted proposal.

d) An agreement can only consist of an acceptance.

Q5: There is a counter-offer when:

a) the offeree accepts it.

b) the offeree makes a fresh offer.

c) the offeree makes some query.

d) the offeree gives conditional acceptance or introduces a fresh term in acceptance.

Q6: When the offeree offers to qualified acceptance of the offer subject to modifications and
variations he is said to have made a .

a) cross offers.

b) standing, open or continuing offer.

c) counter offer.

d) special offer.

Q7: A letter of acceptance sufficiently stamped and duly addressed is put into course of
transmission. There is .
a) a valid contract.

b) a contract voidable at the option of the offerer.

c) a contract voidable at the option of the acceptor.

d) no contract at all.

Q8: An agreement is a voidable contract when it is:

a) enforceable by both the parties.

b) not enforceable at all.

c) enforceable if certain conditions are fulfilled.

d) enforceable by law at the option of the aggrieved party.

Q9: It is necessary to determine the precise moment of time at which the ownership of goods
passes from seller to the buyer because:

a) risk passes with property.

b) suit for price by the seller does not lie unless the property has passed to the buyer.

c) action can be taken only by the owner.

d) All options are correct.

Q10: The term “property” as used in the Sale of goods Act, 1930 means:

a) possession.

b) ownership.

c) both a and b above.

d) the subject matter of the contract.

COMMERCIAL LAWS (MCQs SET 15)

Q1: There is no provision in the partnership deed regarding the duration of partnership. This is:

a) Partnership at will.

b) Partnership by estoppel.

c) Partnership for an indefinite period.

d) Partnership not recognized by law.

Q2: To form a partnership, the minimum capital contribution should be:

a) 1 lakh.

b) There is no limit.

c) 1 crore.

d) 10 lakh.

Q3: A partnership firm comes into existence by agreement between all the partners, and such
agreement should be:

a) implied agreement only.

b) registered.

c) either implied or express.

d) express agreement only.

Q4: Hamza made an endorsement by writing on the bill pay Zaheer or order Rs. 10,000. This type
of endorsement is:

a) general endorsement.

b) endorsement in full.

c) partial endorsement.

d) restrictive endorsement

Q5: written in the instrument means amount would be paid to the person who’s name
is written on the instrument.

a) Pay to A or bearer.

b) Pay to A or order.

c) Pay to A or B.

d) Pay to A only.

Q6: Which of the following word, if written on instrument, would construe a negotiable
instrument.

a) Pay to A and none else.

b) Pay to A only.

c) Pay to A strictly.

d) Pay to A or order.

Q7: All bids shall be opened:

a) publicly.

b) randomly.

c) secretly.

d) privately.

Q8: members shall constitute a quorum for a meeting of the Board constituted under sec-
6 of PPRA ordinance, 2002.

a) Five.

b) Ten.

c) Three.

d) Seven.

Q9: Bids against “open competitive bidding” shall be submitted in the following manner.

a) Before opening the bids offered price(s) can not be known.

b) contents cannot be known until duly opened.

c) contents are fully enclosed.

d) All answers are correct.

Q10: The bid shall be opened at least after the deadline for submission of bids.

a) 60 minutes.

b) 10 minutes.

c) 30 minutes.

d) 45 minutes.

COMMERCIAL LAWS (MCQs SET 16)

Q1: The constituents of the parliament are:

a) President and national assembly.

b) National assembly.

c) President, National assembly and the Senate.

d) National Assembly and the Senate.

Q2: Which one of the following statement is correct?

a) A person who is usually of an unsound mind cannot enter into contract even when he is of sound
mind.

b) A person who is usually of a sound mind cannot enter into contract even when he is of unsound
mind.

c) An agreement with a minor can be ratified after he attains majority.

d) A contract with a minor is voidable at the option of minor.

Q3: Faheem, Yamin and Zameer jointly borrowed Rs. 4000,000 from Hamza by executing a
promissory note. Yamin and Zameer are not traceable. Hamza wants to recover the entire amount
from Faheem. Faheem objected this move by saying he is liable to pay 1/3 of the debt only. Which
of the following statement is correct?

a) Hamza cannot recover any amount from Faheem.

b) Hamza can only recover 1/3 of Rs. 400,000 from Faheem.

c) The promissory note is not executable against Faheem as Yamin and Zaheer are not traceable.

d) Hamza can recover the entire amount from Faheem.

Q4: Asim, Basharat, and Qaiser jointly promised to pay Rs. 1200,000 to Dilbar. Asim was compelled
by Dilbar to pay the entire amount of Rs. 1200,000. Here,

a) Asim can file a suit against Dilbar for recovery of amount exceeding his share.

b) Asim is entitled to recover Rs. 400000 each from Basharat and Qaiser.

c) On payment by Asim, the contract is discharged and Basharat and Qaiser are also not liable to
Asim.

d) Dilbar is not justified here, and is liable to refund the entire amount to Asim.

Q5: Cross offer by two parties to each other:

a) does not amount to acceptance of one’s offer by the other.

b) amounts to an agreement.

c) amount to a contract.

d) amount to acceptance of one’s offer by the other.

Q6: Quantum Merit means:

a) a non-gratuitous promise.

b) as much as is paid.

c) an implied promise.

d) as much as is earned.

Q7: Threat to commit suicide amounts to:

i) coercion.

ii) offence under the Pakistan Panel Code.

iii) undue influence.

iv) fraud.

a) i and iv

b) i and iii

c) i and ii

d) ii and iii

Q8: Acceptance is deemed to take place when the buyer:

a) intimates to the seller that he had accepted the goods.

b) does any act to the goods, which is inconsistent with the ownership of the seller.

c) retains the goods after the lapse of a reasonable time, without intimidating to the seller that he
has rejected them.

d) All of the above.

Q9: The implied condition that goods shall be fit to buyer’s specific purpose, is applicable only
where the buyer tells his purpose to the seller and relies upon seller’s skill and judgement as:

a) it is the requirement of law.

b) it is buyer’s duty to select goods, which serve his purpose.

c) seller can be silent.

d) All of the above.

Q10: Deliver means:

a) the voluntary transfer of possession from one person to another.

b) the compulsory transfer of possession from one person to another.

c) None of the above.

d) Both a and b above.

COMMERCIAL LAWS (MCQs SET 17)

Q1: When a document is issued by the dock owner, authorizing name of a person, who can receive
possession of the goods is called as:

a) Delivery order.

b) Bill of lading.

c) Dock warrant.

d) Warehouse Keeper’s or Wharfing’s certificate.

Q2: Agreement in restraint of trade is void. But if an outgoing partner agrees with the firm that he
will not carry on any competing business, such an agreement will be valid if:

a) Such agreement is made without any specific reference to time period.

b) Such restraint is in respect of carrying of any business similar to that of the firm.

c) Such agreement is made by the partners beforehand, i-e: well in advance.

d) Such agreement is made without reference to local limits.

Q3: Suppose you have entered into a partnership agreement with “Mr. X” and the partnership
deed provide neither for the duration nor for the determination of the partnership. What is the
technical expression for this kind of partnership?

a) Partnership for a fixed term.

b) Partnership at will.

c) Particular partnership.

d) Any of the above.

Q4: A minor, before attaining the age of majority, has the right to:

a) Access and to inspect the accounts of the firm.

b) Receive agreed share of property and of property of the firm.

c) Sue the firm for the share of property or profits if he wants to serve his connection with the firm.

d) All of these.

Q5: Which of these sharing arrangements reflects a partnership?

a) By a lender of money to persons engaged or about to engage in any business.

b) By a servant or agent as remuneration.

c) By the widow or child of the deceased partner as annuity.

d) By a partner who does not activity engage himself in the day to day business affairs.

Q6: To become a “Holder in due course”, which of the following condition must be satisfied by a
person?

a) that he is a holder for valuable and lawful consideration.

b) that he obtained if before maturity or the instrument.

c) that he becomes holder in good faith.

d) All of these.

Q7: A is a bill of exchange drawn on a specified banker and not expressed to be payable
otherwise than on demand.

a) bill against goods.

b) cheque.

c) bill of lading.

d) fictitious bill.

Q8: when a promissory note, bill of exchange, or cheque is transferred to any person so as to
constitute that person holder thereof, the instrument is said to be:

a) negotiable.

b) presented.

c) paid.
d) accepted.

Q9: The main open competitive bidding procedure is .

a) two stage two envelope bidding procedure.

b) two stage bidding procedure.

c) single stage two envelope procedure.

d) single stage one envelope procedure.

Q10: Public Procurement Regulatory Authority (PPRA) is required to prepare Annual Report. Which
of the following is correct in this regard?

a) The annual report shall be released to the public after it has been seen by the Cabinet.

b) the annual report be prepared on PPRA activities including inquires and investigations.

c) Annual reports be presented at the end of each financial year.

d) All answers are correct.

COMMERCIAL LAWS (MCQs SET 18)

Q1: Which of the following is/are not competent to enter into a contract?

i) A person of the age of majority.

ii) A minor.

iii) A person who is not capable of understanding the contract at the time of its mankind.

iv) A lunatic during lucid intervals (period of soundness)

a) i and ii

b) ii and iii

c) i and iv

d) iii and iv

Q2: At an auction sale, Aijaz makes the highest bid for a flower vase. Purporting to accept the bid
the auctioneer strikes the hammer, but strikes the vase and breaks. Who is to bear the loss?

a) Aijaz will bear the loss.

b) Both owner and auctioneer will bear the loss.

c) Auctioneer will bear the loss.

d) Owner will bear the loss.

Q3: the seller shall not be called an unpaid seller:

a) when the price remains unpaid even on the expiry of credit period.

b) when the buyer has paid the price of goods but not the other expenses due to seller.

c) when the buyer becomes insolvent during the credit period.

d) when only a small portion of the price remains to be paid.

Q4: which one of the following statements is not correct?

a) A contract for the sale of future goods is always an agreement to sell.

b) A contract of sale can be validity made for the sale of future goods.

c) In the agreement to sell, the ownership of the goods passes to the buyer some future date.

d) Actionable claims is a subject matter of contract of sale.

Q5: After the registration of a firm, if a partner retires, such a change in the constitution of the firm
requires:

a) New registration.

b) No intimation.

c) An affidavit of a managing partner about the change.

d) A notice to be sent to the Registrar.

Q6: For statutory restrictions on implied authority of a partner:

a) the firm is not liable to third party if the third party has knowledge of the restrictions.

b) the firm is liable to third party if third party has no knowledge of restrictions.

c) the firm is not liable whether or not the third party has knowledge of the restriction.

d) None of the above.

Q7: The non-registration of a firm does not affect the right of the firm.

a) to file a suit for the recovery of less than Rs. 100.

b) to claim a set-off exceeding Rs. 100.

c) to file a suit for the recovery of more than Rs. 100.

d) to file a suit against a partner for recovery of money due by him.

Q8: The term “negotiation” in section 14 of the Negotiable Instrument Act, 1881 refers to:

a) the bargaining between the parties to a negotiable instrument.

b) the payment by a bank on a negotiable instrument after due verification of the instrument.

c) the transfer of a bill of exchange, promissory note or cheque to any person, so as to constitute the
person the holder thereof.

d) All of these.

Q9: Term “holder” includes:

a) the bearer.

b) the payee.

c) the endorser.

d) All of these.

Q10: Sometimes procuring agency rejects all the bids under rule 33 and the agency may call for re-
bidding. Which of the following is not a requirement for re-bidding and is a violation of Public
Procurement Rules?

a) The procuring agency may revise specifications.

b) The procuring agency shall assess the reasons for rejection.

c) Procuring agency ask the rejected bidders to offer some discount in re-bidding.

d) The procuring agency may revise the evaluation criteria.

COMMERCIAL LAWS (MCQs SET 19)

Q1: in case of illegal agreement, the collateral agreements are:

a) voidable.
b) valid.

c) void.

d) illegal.

Q2: a void agreement is one in which:

a) valid but not enforceable.

b) enforceable at the option of one party.

c) enforceable at the option of both the parties.

d) not enforceable in a court of law.

Q3: Undue influence involves:

a) use of physical pressure.

b) threat.

c) use of position to obtain an unfair advantage over the other.

d) none of the above.

Q4: The usual presumption is that the parties intend to create legal relations:

a) in social agreements.

b) in family agreements.

c) in social and family agreements.

d) none of the above.

Q5: Implied contract, even if not in writing or express words, is perfect, if other conditions are
satisfied, is a:

a) illegal contract.

b) valid contract.

c) voidable contract.

d) void contract.

Q6: Zubair of Karachi writes to Rehan of Multan to send him a book by parcel post. Rehan
accordingly sends the books by parcel post. The parcel is lost on the way. Rehan:

a) can recover the price of the book and damages.

b) can recover damages only.

c) can recover the price of book.

d) can not recover the price of the book.

Q7: The implied condition as to the description of goods means:

a) the goods shall perfectly correspond to the description.

b) the goods should be capable of being sold in the market by that description.

c) both i and ii.

d) neither i nor ii

Q8: Under sec 2(4) of the Sale of goods Act, a delivery order enabling a person to obtain delivery
on payment of price is .

a) document enabling title to goods.

b) deemed as document of title.

c) not a document of title.

d) not a valid document at all.

Q9: In a contract of Sale, unless goods are ascertained, there is:

a) a sale.

b) an unenforceable agreement.

c) a void agreement.

d) an agreement to sell.

Q10: In respect of goods, the property in the goods is transferred to the buyer at such
time as the parties intend it to be transferred.

a) unascertained.

b) specific or ascertained.

c) contingent.

d) future.

COMMERCIAL LAWS (MCQs SET 20)

Q1: Before attaining the age of majority, a minor admitted to the benefits of the firm has the right
to:

a) Access and to inspect the accounts of the firm.

b) Sue the firms for his share of property or profits.

c) Receive agreed share of property and of profits.

d) All of the above.

Q2: The firm is bound by an act of a partner done without any express or implied authority if such
act is:

a) Done in emergency.

b) Done to protect the firm from loss-threatened by the emergency

c) Reasonable in the circumstances.

d) All of the above.

Q3: In a negotiable instrument, where amount is stated differently in words and figures.

a) instrument is void due to uncertainty.

b) amount which is larger shall be the amount undertaken.

c) amount stated in figures shall be the amount undertaken.

d) amount stated in words shall be the amount undertaken.

Q4: The procurement opportunities over two million rupees should be advertised in at

least news papers

a) two.

b) one.

c) three.

d) four.

Q5: The Attorney general of Pakistan shall be qualified.

a) to be appointed as session judge.

b) to be appointed a judge of high court.

c) to be appointed as judge of supreme court.

d) to be a judge.

Q6: Tariq of Sukkar agreed to sell 2000 bales of cotton @ Rs. 1000 per able and to deliver within 15
days of buyer’ warehouse at Karachi. Tariq failed to supply these goods as goods were destroyed. If
Tariq knew that goods were destroyed by fire at the time of agreement. The status of contract is:

a) void on the ground of Nadir’s mistakes.

b) voidable.

c) void on the ground of supervening impossibility.

d) void but Tariq should compensate the buyer for any loss that he sustains through non-
performance.

Q7: Salman threw a knife at Shaista, intending to injure her severity. However, Salman missed
Shaista. Shaista saw the knife just as it buzzed by her head, missing it by about one inch. As a
result, Shaista was very scared. Shaista sued Salman for assault. Which of the following is the most
correct?

a) Salman will be liable for damages.

b) Salman will not be liable for either assault or damages.

c) Salman will not be liable for assault.

d) Salman will be liable for assault.

Q8: Kamran agrees to pay Aslam Rs. 20,000. If a certain ship does not return at Port of Baluchistan
within a year. Kamran’s promise can be enforced when the ship:

a) Arrives Gwadar in a damaged condition during the year.

b) is sunk during the year.

c) arrives Gwadar in a good condition during the year.

d) None of the above.

Q9: Where one party is in a position to dominate the will of another and uses his superior position
to obtain the consent of a weaker party, the consent is said to be attained by:

a) misrepresentation.

b) coercion.

c) fraud.
d) undue influence.

Q10: What can be the subject matter of the contract of Sale as per Section 8 of the Sale of goods
Act:

a) only future goods.

b) only existing goods owned or possessed by the owner.

c) Existing goods owned or possessed by the owner of future goods.

d) Existing goods which are neither owned nor possessed by the owner.

COMMERCIAL LAWS (MCQs SET 21)

Q1: Consideration in simple terms mean:

a) anything in return.

b) something in return.

c) everything in return.

d) nothing in return.

Q2: In case of trusts, the beneficiary being a stranger to a contract:

a) can sue.

b) cannot sue.

c) none of the above.

d) both options a and b above.

Q3: What is legal terminology for the doing or not doing of something which the promisor desires
to be done or not to be done?

a) promise.

b) consideration.
c) wishes.

d) desires.

Q4: An act constituting consideration must have been done at the desire of the:

a) promisor.

b) promise.

c) any person other than promisor or promise.

d) none of the above.

Q5: An agreement which is enforceable by law at the option of one or more of the parties thereon
but not at the opinion of the other or others is a:

a) voidable contract.

b) void contract.

c) illegal contract.

d) valid contract.

Q6: If Sajjad who is dealer in coconut oil only, decides to sell 100 tonnes oil @ Rs. 20,000 per tonne
to wholesaler, this is a/an:

a) uncertain contract.

b) voidable contract.

c) valid contract.

d) void contract.

Q7: An offer can be revoked at any time before its acceptance is complete as against the:

a) offeror.

b) individual person.

c) offeree.

d) third party.

Q8: The consideration may be:

a) past, present or future.

b) present or future only.

c) past or present only.

d) past or future only.

Q9: Under the Sale of Goods Act 1930, the term Mercantile agent means a mercantile agent,
having an authority to:

a) sell goods or consign goods for the purpose of sale.

b) buy goods.

c) raise money on the security of goods.

d) All options are correct.

Q10: When the goods have been sold on credit and credit period ,lien can be exercised.

a) has expired.

b) has not expired.

c) has been extended.

d) has not been extended.

COMMERCIAL LAWS (MCQs SET 22)

Q1: Which of the following is relevant for determining the passing of property is ascertained
goods?

a) delivery of goods.

b) payment of price.

c) intention of parties.

d) All options are correct.

Q2: The purpose of weighing, measuring or testing of goods in a contract of sale of specific goods
in deliverable state is:

a) To ascertain the mode of delivery.

b) To dispatch the goods.

c) To ascertain the price.

d) To ascertain the time of delivery.

Q3: The authority of a partner to bind the firm for act as contained in section 19 of the partnership
Act is known:

a) Implied authority.

b) Managerial authority.

c) express authority.

d) legal authority.

Q4: A partner has an implied authority to bind a firm by his act if he:

a) acquires immovable property on behalf of the firm.

b) opens a banking account on behalf of the firm in his own name.

c) withdraws a suit or proceeding field on behalf of the firm.

d) none of these.

Q5: which of the following acts are within the implied authority of a partner?

a) To engage a lawyer and defend the action brought against the firm.

b) To purchase goods of the kind used in firm’s business.

c) To engage servant to perform the business of the firm.

d) All of the above.

Q6: Agreement to share profits .

a) must be coupled with an agreement to share losses.

b) is same as agreement to share losses.

c) does not necessary mean an agreement to share losses.

d) implies an agreement to share losses.

Q7: When a minor is admitted to the benefit of the partnership, which of the following statements
is false:

a) the minor is also personally liable.

b) such minor’s share is liable for the acts of the firm.

c) the minor cannot sue for the accounts if intends to continue in the firm.

d) the minor has a right to share in the property and profits of the firm.

Q8: the special benefit of using the bill of exchange is that the bill is:

a) highly secured.

b) fully secured.

c) double secured.

d) secured against drawer.

Q9: means a written document by which a right is created in favor of some person.

a) negotiable.

b) cheque.

c) instrument.

d) promissory note.

Q10: Which of the following statements is true regarding a cheque?

a) it is drawn on a bank.

b) it is payable on demand.

c) both a and b

d) none of these.

COMMERCIAL LAWS (MCQs SET 23)

Q1: A new partnership may be formed by the following persons:

a) one minor and another major.

b) minimum two majors and minor only admitted to the benefits of firm.

c) one minor and minimum two other majors.

d) one major and all other minors.

Q2: which one of the following is not legal requirement of a valid offer.

a) it must have clear and definite terms.

b) it must be communicated to the other party.

c) it must be made specific to a person and not public at large.

d) it must express offeror’s final willingness.

Q3: A promisee can recover the promised amount of charity from the promisor.

a) if he undertakes a liability on the faith of such promise.

b) even if he has not undertaken any liability on the faith of such promise.

c) none of the above.

d) both option a and b above.

Q4: The unpaid seller to deliver a part of the goods on payment of a proportionate part
of the price by the buyer.

a) shall request the carrier.

b) shall be bound.

c) may refuse.

d) must honor his commitment.

Q5: The term “unpaid-seller” includes:

a) buyer’s agent to whom the goods have been delivered.

b) seller’s agent to whom the goods have been delivered.

c) seller’s agent to whom the goods have not been delivered.

d) buyer’s agent to whom the bill of lading is endorsed.

Q6: Transfer of document of title to the goods sold to the buyer, amounts to:

a) constructive delivery.

b) symbolic delivery.

c) actual delivery.

d) none of these.
Q7: The seller of goods is deemed to be an unpaid seller when has been received an
unconditional payment and the condition has not been fulfilled, by way of dishonor or otherwise.

a) promissory note.

b) cheque.

c) bill of exchange.

d) any of these options.

Q8: The right of lien is available to the unpaid seller, u/s 47 of the Sale of goods Act, when he is in
possession of goods .

a) as a bailee for the buyer.

b) as an agent to the buyer.

c) in his own right.

d) All options are correct.

Q9: For hanging the nature of a business:

a) consent of registrar of firm is needed in reference to conduct of the business.

b) consent of all the partners is needed.

c) consent of court is needed.

d) consent of majority of partners is needed.

Q10: A partner can bind a firm by his act if he:

a) withdraws suit or proceedings filed on behalf of the firm.

b) transfer immovable property belonging to the firm.

c) submits a dispute to arbitration.

d) buys goods on behalf of the firm.

COMMERCIAL LAWS (MCQs SET 24)

Q1: Which one of the following is not correct.

a) partner of the firm cannot enter into a contract with the partnership firm.

b) a member of a company can enter into a contract with the company.

c) partner of a firm can enter into a contract with the partnership firm.

d) All of the above.

Q2: In a promissory note, the amount of money payable.

a) may be certain or uncertain.

b) must be certain.

c) is usually uncertain.

d) none of these.

Q3: The bill of exchange is prepared by .

a) the surety.

b) the debtor.

c) the creditor.

d) the buyer.

Q4: The holder of bearer negotiable instrument can sue the debtor in name.

a) debtor’s.

b) drawee’s.

c) drawer’s.

d) his own.

Q5: “General provisions”, section 2 containing definitions, says bid means:

a) participation in open bidding held at any market place.

b) An invoice for supplies made.

c) Advertisement.

d) Tender or an offer in response to an invitation.

Q6: Rule 10 of the Public Procurement Rules 2004 requires procurement specifications shall:

a) Allow widest possible competition

b) Shall not favor any single contractor.

c) Shall be generic.
d) All options are correct.

Q7: For the purpose of jurisdiction to wind up the companies, the expression registration office
means the place which his longest been the registered office of the company during the
immediately preceding the presentation of the petition for winding up.

a) six (6) months.

b) twelve (12) months.

c) fifteen (15) months.

d) nine (9) months.

Q8: lower house of Pakistan Parliament is called:

i) notional assembly.

ii) senate.

iii) provincial assembly.

a) ii only.

b) i and iii only

c) i, ii and iii.

d) i only

Q9: Aleem had offered Bashir, a price of Rs. 1000000 for Bashir’s flat. But Bashir was not ready to
sell the flat at all. Aleem says to Bashir that “I shall kill you if you don’t agree to sell me your house
for Rs. 1000000. Bashir thereafter did all that was the desire of Aleem in order to save his life.
What is immediate answer:

a) Aleem has applied coercion.

b) The contract is unenforceable.

c) Aleem can enforce the contract.

d) Bashir can enforce the contract.

Q10: A widow borrowed money from a lender for the purpose of filling a suit for maintenance. The
lender advanced money at 100 percent rate of interest. The act of the money lender is induced by:

a) coercion.

b) misrepresentation.

c) fraud.
d) undue influence.

COMMERCIAL LAWS (MCQs SET 25)

Q1: In a contract of sale of goods, the condition as to quality or fitness applies:

a) where the buyer buys a specified article under its patent or other trade name and does not rely
upon the skill and judgement of the seller.

b) whether or not the buyer has examined the goods before buying.

c) where the buyer fails to disclose to the seller any abnormal circumstances.

d) even if seller is a casual seller.

Q2: The unpaid seller’s right of lien or right of stoppage in transit is NOT AFFECTED by any sale or
other disposition of the goods made by buyer, unless:

a) seller obtains delivery of goods before destination.

b) buyer obtains delivery of goods before destination.

c) buyer becomes solvent.

d) seller has assented to such sale.

Q3: What can be the subject matter of the contract of sale as per section 6 of sale of goods Act.

a) only future goods.

b) only existing goods owned or possessed by the owner.

c) existing goods which are neither owned nor possessed by the owner.

d) existing goods owned or possessed by the owner or future goods.

Q4: Can the agreement be avoided when there is an agreement to sell specific goods but
subsequently the goods perish or become so damaged without any fault of the seller or buyer:

a) it can be avoided only if there is a contract in this regard between the parties.

b) it can be avoided only with the approval of court.

c) it can’t be avoided by the parties.

d) it can be avoided by the parties.

Q5: When goods are in possession of third party, delivery is complete:

a) even though such third party does not acknowledge.

b) when the physical possession of the goods is given.

c) when such third party acknowledges to the buyer that he holds the goods on his behalf.

d) none of these.

Q6: For firm’s act after retirement, a retiring partner:

a) is not liable to third party even if no public notice is given of his retirement.

b) is not liable to third party who deals with the firm without knowing that he was a partner even if
no public notice is given of his retirement.

c) continues to be liable to every third party (whether or not having knowledge that he was a
partner) if no public notice is given.

d) none of the above.

Q7: For statutory restrictions on implied authority of a partner:

a) the firm is not liable to third party if the third party has knowledge of the restrictions.

b) the firm is liable to third party if third party has no knowledge of restrictions.

c) the firm is not liable whether or not the third party has knowledge of the restrictions.

d) none of the above.

Q8: Registration of firm becomes effective:

a) from the date of filing of duty signed and verified statement along with the prescribed form.

b) from the date of issue of certificate of registration.

c) from the date of receipt of certificate of registration.

d) none of the above.

Q9: A person may be admitted as a new partner:

a) In accordance with a contract between the existing partners or with the consent of all the
existing partners.

b) by simply taking the consent of the new partner.

c) after obtaining specific approval of the registration of firms & societies to this effect.
d) in accordance with a contract between the existing partners or with the consent of all the existing
partners subject to the provisions of section 30 of the Act.

Q10: Javed, holder in due course, presented the negotiable instrument for payment. The
instrument was dishonored. Javed notified all the persons liable through registered post and filed
a suit. Nasir, the endorser, of the instrument, did not receive the notice. Would Nasir remain
liable?

a) Nasir will not be liable because notification and filing of suit was made simultaneously.

b) Nasir will be liable because sending of notice through post is sufficient for the purpose of
notification.

c) Nasir would be liable even in case the notice of dishonor was not communicated to him.

d) Nasir will not be liable because Nasir did not receive notice of dishonor.

COMMERCIAL LAWS (MCQs SET 26)

Q1: Which of the following person cannot present the bill for acceptance?

a) official receiver of deceased drawee.

b) drawee.

c) an acceptor for honor.

d) drawer.

Q2: The holder of bill of exchange must allow drawee (exclusive of public holidays) to
consider he will accept the bill of exchange or not.

a) thirty six hours.

b) fifteen hours.

c) twenty-four hours.

d) forty-eight hours.

Q3: Public Procurement Regulatory Authority (PPRA) requires a fund to be set up known as Public
Procurement Regulatory Authority (PPRA) fund. The fund is to be utilized by PPRA to discharge
duties under the PPRA Ordinance. This fund may be from the following sources and utilized with:

a) Income from investments from the PPRA.

b) The funds will be spend with highest sense of prudence.

c) Federal Government allocation, to PPRA, through annual budget.

d) All answers are correct.

Q4: There are some procedures for open competitive bidding. One of them is “Single stage two
envelope procedure” which is defined by the following EXCEPT:

a) The single package contains two separate envelopes.

b) Each package contains the financial and technical proposal in each packet.

c) The bid shall comprise single package.

d) Each packet contains separately the financial and the technical proposal.

Q5: False representation amounts to fraud where:

a) representation is made with the knowledge of its falsehood.

b) representation was true at the time when it was made but becomes untrue before the contract is
entered into and this fact was not known to the party who made the representation.

c) representation was true at the time when it was made but becomes untrue before the contract in
entered into and this fact is known to the party who made the representation and such party
corrects such representation.

d) none of the above.

Q6: Which of the following is/are not competent to enter into a contract:

i) a person of the age of majority.

ii) A minor.

iii) A person who is not capable of understanding the contract at the time of its making.

iv) A lunatic during lucid intervals.

a) i and ii

b) ii and iii

c) i and iv

d) iii and iv

Q7: After the registration of the firm, if a partner retires, such a change in the constitution of the
firm requires:

a) New registration.
b) no intimation.

c) an affidavit of a managing partner about the change.

d) A notice to be sent to the registrar.

Q8: Partnership is the relation between two or more persons:

a) who are sharing the profits and losses equally of a business carried on by all or any of them acting
for all.

b) who have agreed to share the profits of a business carried on by all.

c) who have agreed to share the profits of a business carried on by all or any of them acting for all.

d) All of the above.

Q9: A partnership firm .

a) is a legal person.

b) has separable legal entity apart from its owners.

c) is not a legal person.

d) has a legal status of its own.

Q10: In a bill of exchange, there is:

a) three parties.

b) two parties.

c) either three or four parties.

d) four parties.

COMMERCIAL LAWS (MCQs SET 27)

Q1: According to the 1973 constitution, the head of cabinet is:

a) Prime minister.

b) President.

c) Chairman of senate.

d) Speaker of national assembly.

Q2: Which of the following is not purpose of act of parliament.

a) consolidated or cancel the existing law.

b) to solve the individual grievances.

c) authorized the taxation or codify and clarifying the existing law.

d) create the new law when one not exist before or amend existing law.

Q3: In the absence of governor of province, will perform the governor’s function.

a) speaker of the provincial assembly.

b) home minister of province.

c) chief minister of province.

d) chief justice of province.

Q4: Can a person who is usually of unsound, but occasionally of sound mind, make a contract:

a) yes, he can always make a contract.

b) No, he cannot make a contract.

c) Yes, but only when he is of sound mind.

d) cannot be determined.

Q5: does not exist.

a) liability for disciplinary damages.

b) liability for special damages.

c) liability for exemplary damages.

d) liability for nominal damages.

Q6: A promise to subscribe to a charity is:

a) valid contract.

b) void agreement.

c) voidable contract.

d) void contract.
Q7: Which one of the following is not a legal requirement of a valid consideration:

a) it must be real and not illusionary.

b) it must be lawful.

c) it needs to be adequate.

d) it must move at the desire of the promisor.

Q8: A minor’s liability to for “necessities” supplied to him:

a) does not arise at all.

b) arises if minor gives a promise for it.

c) arises after he attains majority age.

d) is against only minor’s property.

Q9: In a sale, the property in goods:

a) is yet to be transferred to the buyer.

b) may be transferred at a future time.

c) is transferred when goods are delivered to the buyer.

d) is transferred to the buyer.

Q10: Property in the goods “in the sale of goods act” means:

a) ownership of goods.

b) asset in the goods.

c) custody of goods.

d) possession of goods.

COMMERCIAL LAWS (MCQs SET 28)

Q1: If the condition as to the title of goods is not fulfilled, the buyer .

a) has no alternative but to buy the goods.

b) may reject the goods.

c) may reject the goods and claim damages.

d) All of these.

Q2: A sells to B 100 bags of wheat which are locked up in a godown. A hands over to B the key of
the godown, there is a:

a) effective delivery between A and B.

b) constructive delivery between A and B.

c) symbolic delivery between A and B.

d) actual delivery between A and B.

Q3: Which of the following is an essential feature of a partnership:

a) Result of an agreement.

b) Sharing of profits.

c) mutual agency between partners.

d) All of these.

Q4: A partnership for a fixed period can be dissolved:

a) only on the expiry of fixed period.

b) before the expiry of fixed period by the mutual consent of majority of the partners.

c) before the expiry of fixed period by the mutual consent of all of the partners.

d) none of the above.

Q5: in which of the following cases, is dissolution of partnership through court not possible?

a) insanity of a partner.

b) misconduct by the partner.

c) incapacity of partner.

d) insolvency of partner.

Q6: As per section 7 of negotiable instrument act, when in the bill or in any endorsement thereon
and the name of person is given in addition to the drawee to be resorted to in case of need, such
person is called:
a) drawer in case of need.

b) drawee in case of need.

c) holder in case of needs.

d) maker in case of needs.

Q7: Ghayoor, who is a dealer in air conditioner, decides to sell to Yasir five air conditioners, but the
price is to be fixed by Zaheer, there is a/an contract.

a) uncertain.

b) void.

c) voidable.

d) valid.

Q8: The body of law which establishes rights between persons and provides for compensation for
violation of those rights is known as:

a) business law.

b) civil law.

c) tort.

d) criminal law.

Q9: The court may grant rescission where the contract is:

a) void.

b) voidable at the option of the plaintiff.

c) illegal.

d) unenforceable.

Q10: Mr. Yaseen, a popular singer, enters into a contract with the manager of a theater, to sing at
the theater two evenings a week for the next two months and the manager of the theater agrees
to pay him at the rate of Rs. 100,000 for each performance. From the sixth evenings onwards, Mr.
Yaseen absents himself from the theater. In this context, which of the following remedies is/are
available to the manager of the theater against Mr. Yaseen:

a) he is at liberty to put and end of the contract.

b) he cannot put an end to the contract.

c) he is entitled to compensation for the damages sustained by him through Mr. Yaseen on his
failure to song from the sixth evening onwards.

d) both a and c above.

COMMERCIAL LAWS (MCQs SET 29)

Q1: A contract:

a) cannot become void under any circumstances.

b) may become void subsequent to its formation.

c) may be void as originally entered into.

d) may become void at the will of a party.

Q2: A voidable contract:

a) can be avoided by any of the parties to a contract.

b) always remains enforceable by law.

c) remains enforceable by law if the aggrieved party does not reject the contract.

d) remains enforceable by law if the aggrieved party repudiates the contract.

Q3: An advertisement inviting tender to supply specific quantity of certain goods during a specific
period is:

a) an implied offer to buy.

b) an invitation to make an offer to supply.

c) an express offer to buy.

d) a general offer to buy.

Q4: A contract with minor, which is beneficial for him, is:

a) void-ab-initio.

b) voidable.

c) illegal.

d) valid.
Q5: Generally where the buyer has paid the price and seller refuses to deliver the goods, buyer can
sue the seller for .

a) non-acceptance of goods.

b) specific performance of the contract.

c) delayed delivery of goods.

d) refund of price already paid.

Q6: The definition of “documents of title to goods” given in the sale of goods Act is:

a) not clear.

b) exhaustive.

c) exclusive.

d) inclusive.

Q7: Which of the following is not a mode of retirement of a partner:

a) retirement in accordance with an express agreement.

b) retirement with other partner’s consent.

c) in case of a partnership at will by giving written notice of his intention to retire.

d) retirement on attaining the age of superannuation.

Q8: In the application for registration of a firm, which of the following is not required to be given:

a) The duration of the firm.

b) Names of any other places where the firm carries on business.

c) capital contribution of partners.

d) firm name.

Q9: Which of the following statements is true?

a) Law of partnership is an extension of the law of guarantee.

b) A sleeping partner is also liable to the third parties.

c) Partnership has a separate legal entity.

d) The registration of the firm is compulsory.

Q10: The name under which the partnership business is carried on is called .

a) business name.

b) regular name.

c) firm name.

d) none of the above.

COMMERCIAL LAWS (MCQs SET 30)

Q1: Which of the followings is/are the characteristics of Negotiable Instrument?

a) The title of the drawer must be free from all defects.

b) Title of the holder must be free from all defects.

c) Freely transferable.

d) All options are correct.

Q2: When a negotiable instrument is endorsed to a specific person the endorsement may be:

a) general endorsement.

b) restrictive endorsement.

c) partial endorsement.

d) endorsement in full.

Q3: Mis-procurement as defined by Public procurement Regularity Authority (PPRA) Ordinance

2002, includes:

a) Public Procurement in contravention of PPRA ordinance, 2002.

b) Public Procurement in contravention of PPRA rules.

c) Public Procurement in contravention of any other law in respect of or relating to public

procurement.

d) All answers are correct.

Q4: Where the maximum number of partners in a firm carrying on banking business exceeds ten
(10) and in any other firm exceeds twenty, then the partnership becomes a/an:

a) large partnership.

b) limited liability partnership.

c) unlawful partnership.

d) illegal partnership.

Q5: The “Doctrine of privity” of contract states that:

a) a contract cannot confer any right on one who is not a party to the contract, even though the
very object of the contract may have been to benefit him.

b) a contract can confer right on one who is not a party to the contract, if the contract benefits him.

c) a contract can confer rights on transfer.

d) a contract always confers right on one who is not a party to the contract.

Q6: A contract which is inferred from the conduct of parties or circumstances of the case is called:

a) voidable contract.

b) tacit contract.

c) bilateral contract.

d) executed contract.

Q7: At the time of marriage between Khadija and Tariq, Khadija’s father promised to Tariq’s
parents that he will pay Rs. 100,000 per month to Tariq after his marriage with her daughter. On
his failure to pay amount Tariq wants to sue Khadija’s father for the amount promised by him at
the time of her marriage. Which of the following statement is correct?

a) Tariq can sue Khadija’s father for breach of contract.

b) Tariq cannot sue Khadija’s father as the contract is void for lack of consideration.

c) Tariq cannot sue Khadija’s father under the doctrine of privity of contracts.

d) Tariq cannot sue Khadija’s father as the contracts made at the time of marriage are not
enforceable by law.

Q8: Riaz purchased a tin of soft drink from the Bin Hashim minimart. After he fininshed drinking
the soft drink, Riaz noticed that the tin contained dead insects stuck on the inside bottom of the
tin. In a strict product liability tort action against Bin Hashim, Riaz must prove, among other things,
that:

a) Bin Hashim actually placed the dead insects into the can.

b) Bin Hashim had prior notice of other similar problems with soft drink products.

c) Bin Hashim is a merchant selling soft drink.

d) Bin Hashim knew or should have known of the defective condition.

Q9: Acceptance of delivery of goods is deemed to take place when the buyer:

a) intimates to the seller that he had accepted the goods.

b) does any act to the goods, which is inconsistent with the ownership of the seller.

c) rejects and retains the goods after the lapse of a reasonable time, without intimating the seller.

d) All of the above.

Q10: The ownership in specific goods to be put in deliverable state passes:

a) when the goods are brought in deliverable state by the seller.

b) The contract is made.

c) When the seller has brought the goods into a deliverable state and the buyer has notice thereof.

d) When the intimation is clear.

COMMERCIAL LAWS (MCQs SET 31)

Q1: Implied contract, even if not in working or express words, is perfect, if other conditions are
satisfied is a:

a) illegal contract.

b) voidable contract.

c) valid contract.

d) voidable contract.

Q2: If Sajjad, who is dealer in coconut oil only, decides to sell 100 tons oil @ Rs. 20,000 per ton to
a wholesaler, this is a/an .
a) uncertain contract.

b) voidable contract.

c) valid contract.

d) void contract.

Q3: An offer can be revoked at any time before its acceptance is complete as against the .

a) offeror.

b) individual person.

c) offeree.

d) third party.

Q4: Under the Sale of Goods Act, 1930, the term “Mercantile agent” means a mercantile agent,
having an authority to:

a) sell goods or consign goods for the purpose of sale.

b) buy goods.

c) raise money on the same security of goods.

d) All options are correct.

Q5: When the goods have been sold on credit and the credit period ,lien can be
exercised:

a) has expired.

b) has not exercised.

c) has been extended.

d) has not been extended.

Q6: In respect of Goods, the property in the goods is transferred to the buyer at such
time as the parties intend it to be transferred.

a) future.

b) ascertained.

c) contingent.

d) specific or ascertained.
Q7: Which of the following is relevant for determining the passing of property in ascertained
goods.

a) delivery of goods.

b) payment of price.

c) intention of parties.

d) All options are correct.

Q8: In a contract of sale, unless the goods are ascertained, there is:

a) a sale.

b) an unenforceable agreement.

c) a void agreement.

d) an agreement to sell.

Q9: The purpose of weighing measuring or testing of goods in a contract of sale of specific goods in
deliverable state is:

a) To ascertain the mode of delivery.

b) To dispatch the goods.

c) To ascertain the price.

d) To ascertain the time of delivery.

Q10: The authority of a partner to bind the firm for his acts as contained in section 19 of the
Partnership Act, is known as:

a) implied authority.

b) managerial authority.

c) express authority.

d) legal authority.

COMMERCIAL LAWS (MCQs SET 32)

Q1: Which of the followings acts are within the implied authority of a partner?
a) To engage a lawyer and defend the action brought against the firm.

b) To purchase goods of the kind used in firm’s business.

c) To engage servants to perform the business of the firm.

d) All of the above.

Q2: Agreement to share profits .

a) must be coupled with agreement to share losses.

b) is same as agreement to share losses.

c) does not necessarily mean an agreement to share losses.

d) implies an agreement to share losses.

Q3: means a written document by which a right is created in favor of some person.

a) Negotiable.

b) Cheque.

c) Instrument.

d) Promissory note.

Q4: Which of the following statements is true regarding “cheque”.

a) it is drawn on a bank.

b) it is payable on demand.

c) both a and b.

d) none of these.

Q5: Hussain contracted with NI corporation for erection of a number of houses. In calculating his
price for the houses. Hussain by mistake deducted a particular sum twice over. The corporation
affixed its seal to the contract, which correctly represented its intention.

a) There is no contract at all, since there is no consensus ad idem.

b) The contract is not binding.

c) The contract can be avoided by Hussain.

d) The contract is now binding.

Q6: Which of the following statements is false?

a) A party who affirms the contract can also change his option afterwards if he so decides.

b) A party cannot complain of fraudulent service or misrepresentation if he has the mean of

discovering the truth with ordinary means.

c) In case of fraud or misrepresentation, aggrieved party can either rescind or affirm the contract.

d) A contract is not voidable if fraud or misrepresentation does not induce the other party to enter
into a contract.

Q7: Deedar believes blue color to be black color for any reason whatsoever. He has a garments
shop. He sells one blue color shirt to Mumtaz, representing it to be black color. Mumtaz knows
nothing about colors Mumtaz belives Deedar and accepts the blue color to be black color. Later on
Mumtaz’s mother explains him that the color of the shirt is actually blue and not black. It is clear
case of:

a) unintentional fraud.

b) fraud.

c) cheating.

d) misrepresentation.

Q8: Which of the following statements is/are correct with respect to minor entering into a
contract?

i) An agreement with or by a minor is void-ab-initio.

ii) A minor can be a beneficiary of a contract.

iii) The contacts involving a minor as a beneficiary may be enforced at the option of the third party.

iv) A minor can ratify a contract on attaining majority.

a) i and ii

b) iii and iv

c) i and iv

d) ii and iii

Q9: Asim fraudulently informs Babul that Asim’s estate is free from encumbrance. Babul
thereupon buys the estate. The estate is subject to mortgage. Now:

a) Babul may avoid the contract.

b) Babul may insist upon the performance.

c) Babul may get the mortgage debt redeemed.

d) All of the above .

Q10: A seller cannot give a better title to the buyer than he himself has in case of:

a) sale by a mercantile agent to a bonafide buyer.

b) sale by one of the joint owners who is in the sole possession of goods with the consent of majority
of other joint owners to a bonafide buyer.

c) sale by a seller who is in possession of goods under a voidable contract to a bonafide buyer.

d) None of the above.

COMMERCIAL LAWS (MCQs SET 33)

Q1: Mr. Ammar and Mr. Gohar agree to divide the profits of a business in equal shares. But if there
is any loss in the business, it will be borne by Mr. Ammar alone. The partnership agreement is:

a) Lawful.

b) Voidable.

c) illegal.

d) void.

Q2: Where the goodwill of a dissolved firm is sold, the partners of the dissolved firm unless
otherwise agreed:

a) cannot represent himself as carrying on business.

b) can solicit the old customers.

c) cannot carry on business competing with that of the buyer of goodwill.

d) cannot advertise such business.

Q3: An incoming partner, who has been validly admitted in the firm is:

a) Liable for the past debts of the firm.

b) Not liable for the past debts of the firm.

c) Liable for debts of the firm incurred after his admission.

d) Both b and c
Q4: In a bill of exchange, the person who is directed to pay is called:

a) drawer.

b) payee.

c) endorse.

d) drawee.

Q5: Unless instrument is satisfied, which of the following persons will not be liable jointly and
severally to holder in due course.

a) Acceptor.

b) Drawee.

c) Maker.

d) Intervening endorser.

Q6: There are parts when bill is drawn in sets.

a) three.

b) four.

c) two.

d) five.

Q7: Public Procurement Regulatory Authority (PPRA) is required to prepare Annual Report. Which
of the following is correct in this regard?

a) Annual report to be prepared at the end of each financial year.

b) The annual report shall be released to the public after it has been seen by the Cabinet.

c) The Annual report to be prepared on PPRA activities including inquires and investigations.

d) All answers are correct.

Q8: Which of the following statement is correct?

a) no bidder shall be allowed to modify his bid after the bids have been opened.

b) bidders are allowed to modify their bid even after the bids have been opened.

c) bidders are allowed to modify their bids with prior approval.

d) bidders are allowed to modify their bid on payment of prescribed fees.

Q9: Law lays down rules and guidelines for setting up and administrative running of business
according to:

a) volume of equity in business.

b) number of directors.

c) categories of business

d) number of branches.

Q10: The texts of enactments by government containing rules that govern the state jurisdiction is
term as:

a) primary source of law.

b) landscape of legal sources.

c) provincial laws.

d) branch of government law.

COMMERCIAL LAWS (MCQs SET 34)

Q1: A stranger to consideration .

a) can sue.

b) can not sue.

c) none of the above.

d) both a and b above.

Q2: The law of contract in Pakistan is contained in:

a) Pakistan contract Act 1930.

b) Pakistan contract Act 1932.

c) Contract Act 1872.

d) Pakistan Contract Act 1972.

Q3: A proposal when accepted becomes a:

a) acceptance.

b) contract.

c) promise.

d) offer.

Q4: In case of trusts, the beneficiary being a stranger to a contract:

a) can sue.

b) can not sue.

c) none of the above.

d) both options a and b.

Q5: Which one of the following is not legal requirement of a valid offer?

a) it must have clear and definite terms.

b) it must be made specific to a person and not public at large.

c) it must express offerror’s final willingness.

d) it must be communicated to the other party.

Q6: There can be a stranger to contract .

a) agreement.

b) promise.

c) consideration.

d) contract.

Q7: A promisee can recover the promised amount of charity from the promisor.

a) if he undertakes a liability on the faith of such promise.

b) even if he has not undertaken any liability on the faith of such promise.

c) none of the above.

d) both option a and b.

Q8: The general principle regarding transfer of title in case of sale of goods is that:

a) The seller’s representative can transfer to the buyer no title.

b) The seller can transfer to the buyer a better title than he himself has.

c) The seller cannot transfer to the buyer a better title than he himself has.

d) The buyer can transfer to the seller a better title than he himself has.

Q9: There is no provision in the partnership deed regarding the duration of partnership. This is:

a) Partnership by estoppel.

b) Partnership by an infinite period.

c) Partnership at will.

d) Partnership not recognized by law.

Q10: A partner of an unregistered firm can sue for of the firm.

a) goodwill.

b) share in property.

c) dissolution.

d) none of the above.

COMMERCIAL LAWS (MCQs SET 35)

Q1: is termed as consideration in a contract of sale.

a) Barter money.

b) Price.

c) Exchange money.

d) Reward.

Q2: Faraz, a shopkeeper, sold a television set to Nadeem, who purchased it in good faith. The set
had some manufacturing defect and it did not work after a few days in spite of repairs. In case, the
television was not merchandisable as it was not fit for ordinary purpose then,

a) the buyer has no right to reject the television.

b) the buyer has the right to reject the television and to have refund of the price.
c) both options a and b above.

d) none of the above.

Q3: Which of the following statement is not true about minor’s position as a partner?

a) He cannot become a full fledged partner in a new firm.

b) He can become a full fledged partner in an existing firm.

c) He has to bear all liabilities like other partners.

d) He has become a partner on becoming a major.

Q4: As per the Public Procurement Regulatory Authority, 2004, the procuring agency may reject all
bids at any time prior to acceptance of a bid. The procuring agency has:

a) To justify grounds of rejection.

b) No authority to reject bids once submitted.

c) No liability towards rejected bidders.

d) Liability towards rejected bidders (i-e: compensate bidders).

Q5: An act constituting consideration must have been done at the desire of the:

a) promisor.

b) promisee.

c) any person other than the promisor or promisee

d) none of the above.

Q6: Mr. Ammar and Mr. Gohar agree to divide the profit of a business in equal shares. But if there
is any loss in the business, it will be borne by Mr. Ammar alone. The partnership agreement:

a) Lawful.

b) Voidable.

c) Illegal.

d) Void.

Q7: Where the goodwill of a dissolved firm is sold, the partners of a dissolved unless otherwise
agreed?

a) cannot represent himself as carrying on business.

b) can solicit the old customers.

c) can not carry on a business competing with that of the buyer of goodwill.

d) cannot advertise such business.

Q8: Which one of the following is not legal requirement of a valid offer?

a) it must express offeror’s final willingness.

b) it must have clear and definite terms.

c) it must be made specific to a person and not public at large.

d) it must be communicated to the other party.

Q9: For passing out property in goods, the goods must be in:

a) marketing state.

b) deliverable state.

c) consumable state.

d) manufacturing state.

Q10: In which of the following situations, the right of lien available to the Unpaid seller is lost?

a) where the unpaid seller has parted with the possession of the goods.

b) where the goods have been sold on credit, but the credit period has expired.

c) where the goods have been sold without any stipulation as to credit.

d) where the buyer becomes insolvent.

COMMERCIAL LAWS (MCQs SET 36)

Q1: Registration of firm is effective from:

a) The date published in the official gazette.

b) The date of presentation of the statement to the registrar of firms.

c) The date when the registrar files the statement and makes entries in the registrar of firms.
d) The date intimated to the partners.

Q2: An act done by the partner is binding on the firm if it is done in the name of:

a) God.

b) The partner own name.

c) Firm.

d) Law.

Q3: Types of partners includes:

a) active partner.

b) sleeping partner.

c) nominal partner.

d) All of the above.

Q4: Money orders, postal orders, fixed deposit receipts, share certificates, letters of credit are
examples of:

a) non-negotiable instruments.

b) some of these are negotiable instruments while others are not.

c) none of given options is correct.

d) negotiable instrument.

Q5: Which of the followings is/are the characteristics(s) of negotiable instrument?

a) The title of the drawer must be free from all defects.

b) Freely transferable.

c) Title of the holder must be free from all defects.

d) All options are correct.

Q6: Payment through the negotiable instrument is valid till a specific period until its maturity
(expiry), such period/course is called .

a) holder in due course.

b) validity of negotiable instrument.

c) payment in due course.

d) none of the above.

Q7: A prospectus issued by a company for subscription of its shares and debentures is:

a) a general offer to sell the shares/debentures.

b) an implied offer to sell the shares/debentures.

c) an express offer to sell the shares/debentures.

d) an invitation to make an offer to buy.

Q8: Threat to commit suicide amounts to .

a) coercion.

b) offence under the Pakistan Penal Code.

c) undue influence.

d) fraud.

Q9: The unpaid seller’s right of lien or right of stoppage in transit is NOT AFFECTED by any sale or
other disposition of goods made by buyer, unless:

a) seller obtains delivery of goods before destination.

b) buyer obtains delivery of goods before destination.

c) seller has assented to such sale.

d) buyer becomes solvent.

Q10: Where under a contract of sale, the buyer wrongfully neglects or refuses to pay the price, the
seller can sue the buyer for the price of goods, if the property in goods:

a) has not passed to buyer.

b) has passed to buyer.

c) either (i) or (ii).

d) remains with the seller.

COMMERCIAL LAWS (MCQs SET 37)

Q1: In bill of exchange, the person who makes the bill is called:

a) drawee.

b) drawer.

c) payee.

d) endorse.

Q2: The place of delivery can be .

a) The place where the parties have agreed.

b) The place where the goods are lying at the time of sale.

c) The place where the goods are manufactured.

d) All of these.

Q3: The lien of unpaid seller depends upon:

a) Possession.

b) Ownership.

c) Title.

d) Where the buyer has paid the price or not.

Q4: The person who buys or agrees to buy goods is known as:

a) consumer.

b) buyer.

c) both a and b.

d) none of the above.

Q5: In case of a sale the position of a buyer is that of .

a) owner of the goods.

b) bailee of the goods.

c) hirer of the goods.

d) none of the above.

Q6: A partnership firm comes into existence by agreement between all the partners, and such
agreement should be:

a) implied agreement only.

b) registered.

c) either express or implied.

d) express agreement only.

Q7: Bids against “open competitive bidding” shall be submitted in the following manner.

a) Before opening the bids offered price can not be known.

b) contents are fully enclosed.

c) contents cannot be known until duly opened.

d) All answers are correct.

Q8: Which one of the following is the advantage of precedent?

a) doctrine of precedent makes the law clear as ratio decendai is only followed.

b) the doctrine of the precedent forces a judge to distinguish the cases on illogical grounds in order
to order to avoid unfair results.

c) doctrine of precedent limits the overall discretion which may lead to unfair results.

d) a judgement may contain differing any conflicting arguments making the precedent hard to
understand and even harder to apply.

Q9: Where one party is in a position to dominate the will of another and uses his superior position
to obtain the consent of a weaker party, the consent is said to be obtained by:

a) misrepresentation.

b) fraud.

c) undue influence.

d) fraud.

Q10: If goods are rejected by the buyer and the carrier or other bailee continues in possession of
them, and the seller has refused to receive them back, the transit:

a) is deemed to be at the end.

b) is at the end.

c) is not deemed to be at the end.

d) is dependent on the court decision.

COMMERCIAL LAWS (MCQs SET 38)

Q1: Nasim and Yameen purchased 20,000 bags of cement, which they agree to sell for their joint
account. In this case:

a) Nasim and Yameen are partners.

b) Nasim and Yameen are only joint owners.

c) Nasim and Yameen are co-ventures.

d) None of the above.

Q2: Privileges of holder in due course are:

a) only drawee is liable to holder in due course.

b) gets better title than that of transferor.

c) estoppel against original validity of instrument.

d) estoppel against capacity of payee to indorse.

Q3: To claim protection under section 89 (effect of payment of instrument on which alteration is
not apparent) which of the following conditions must be satisfied.

a) payment must be made in due course.

b) alteration should not be apparent.

c) Payment must be made by person on banker liable to pay.

d) All of these.

Q4: The usual presumption is that parties intend to create legal relations in:

a) in social agreements.

b) in legal agreements.

c) in commercial or business agreements.

d) none of the above.

Q5: Where debt to be discharged is not indicated by the debtor, the creditor:

a) can apply the payment to any lawful debt other than time barred debt.

b) can apply the payment to any lawful debt other than time barred debt and disputed debt.

c) can apply the payment to any lawful debt other than disputed debt.

d) none of the above.

Q6: An agreement is a voidable contract when it is:

a) not enforceable at all.

b) enforceable if certain conditions are fulfilled.

c) enforceable by both parties.

d) enforceable by law at the option of the aggrieved party.

Q7: A contract in which both the parties have to perform the promises is called:

a) executed contract.

b) tacit contract.

c) bilateral contract.

d) voidable contract.

Q8: Exemplary damages are awarded:

a) only in case of a breach of promise to marry.

b) only in case of wrongful dishonor of a cheque by a banker.

c) only in case of wrongful dishonor of a cheque by a drawer.

d) none of the above.

Q9: The sale of goods act, 1930 deals with

a) mortgage.

b) pledge.

c) sale.

d) All of above.
Q10: A seller sends the goods and takes the railway receipt in his own name at the buyer’s place
the seller has:

a) may reserve the right of disposal of goods.

b) the question of reserving the right of disposal does not arise.

c) not reserved the right of disposal of goods.

d) reserved the rights of disposal of goods.

COMMERCIAL LAWS (MCQs SET 39)

Q1: Under section 11 of the sale of goods act, 1930, the time of payment can be of the essence of
the contract:

a) by agreement between parties.

b) by operation of law.

c) both i and ii.

d) either i and ii.

Q2: The partnership Act by section 69 indirectly renders the registration firm compulsory by
providing:

a) penalties on unregistered firm.

b) monetary fine on partners.

c) penalties on partners of unregistered firms.

d) certain disabilities.

Q3: For changing the nature of business:

a) consent of majority of partners is needed.

b) consent of all the partners is needed.

c) consent of court is needed.

d) consent of registrar of firm is needed in reference to conduct of the business.

Q4: A firm may be registered:

a) when the income tax department insists on its registration.

b) At a later date, after its formation.

c) In the beginning when it is being formed.

d) When the court orders the firm to be registered.

Q5: The undertaking contained in a promissory note, to pay a certain sum of money is:

a) conditional.

b) unconditional.

c) maybe conditional or unconditional depending upon the circumstances.

d) none of these.

Q6: The purpose of Public Procurement Regulatory Authority (PPRA) ordinance, 2002 is to:

a) provide for the establishment of Public Procurement Regulatory Agency (PPRA) for regulating
public procurement of goods and services in the public sector.

b) make procurements on behalf of the federal government.

c) make procurements for PPRA itself.

d) make procurements for the federal government.

Q7: The Procurement Rules, 2004 defines abnormal situation requiring prompt and immediate
action as:

a) corrupt and fraudulent practices.

b) emergency.

c) urgent procurement.

d) procurement planning.

Q8: Which one of the following is not a contract:

a) Aijaz engages Basit for a certain work and promises to pay such remuneration as shall be fixed by
Qaiser, Basit does the work.

b) Aijaz and Basit promise to marry each other.

c) Aijaz takes a seat in a public vehicle.

d) Aijaz invites Basit to an iftar party. Basit accepts the invitation.

Q9: Under which of the following situations does strict product liability apply:

a) Sale of a defective and unreasonably dangerous product.

b) Manufacture of a defective and unreasonably dangerous product.

c) Both (i) and (ii) correct.

d) Neither (i) nor (ii) are correct.

Q10: Arham sells and consigns to Bilawal goods of the value of Rs. 100,000 on credit. Bilawal
assigns the railway receipt to Chaudhary Fawad to secure a specific advance of Rs. 50,000 on the
railway receipt. Before the goods reach the destination Bilawal becomes insolvent. Arham gives
notice to stop the goods in transit but Chaudhary Fawad claims them. Can Arham stop the goods in
transit?

a) Yes, Arham can stop goods in transit.

b) Yes, Arham can stop goods in transit but prior approval of Bilawal.

c) No, Arham cannot stop goods in transit.

d) Yes, Arham can stop goods in transit but prior approval of Bilawal and Chaudhary Fawad.

COMMERCIAL LAWS (MCQs SET 40)

Q1: Where there is a contract for the sale of specific or general goods the property in them is
transferred to the buyer at the time when the:

a) Price is paid.

b) Delivery of goods has been made.

c) Contract is entered into

d) Parties intend the property in goods to pass.

Q2: In which of the following cases, is the firm not bound by the act of the partner:

a) When act is done by a partner in any manner expressing or implying an intention to bind the firm.

b) When act is done fraudulently or negligibly.

c) When act is done by a partner or his agent on behalf of the firm.

d) When act is done by a partner in the name of the firm.

Q3: Agreement in restraint of trade is void. But if an outgoing partner agrees with the firm that he
will not carry on any competing business, such an agreement will be valid if:

a) such agreement is made by the partners beforehand i-e. well in advance.

b) such agreement is made without reference to local limits.

c) such agreement is made without any specific reference to time period.

d) such restraint is in respect of carrying of any business similar to that of firm.

Q4: Expulsion of a partner from the firm is regular when partnership deed authorizes the other
partners, and this authority is used by:

a) three-fourth majority of the partners.

b) unanimous consent of all the existing partners.

c) two-third majority of the partners.

d) any majority of the partners.

Q5: On the death of the partner, public notice of death is not given and the firm continues the
business, then for the acts of firm done after his death, the estate of the deceased partner is:

a) treated as security.

b) not liable.

c) proportionately liable.

d) liable.

Q6: Moin, Naeem and Faheem are partners in a firm and Moin becomes insolvent, then:

a) the status of the firm becomes illegal from the date of adjudication of Moin as an insolvent.

b) the firm has to dissolve by default.

c) the firm may not be dissolved unless there is any agreement between the partners to do so.

d) Moin remains a partner, unless the firm is dissolved.

Q7: Crossing of a cheque effects the:

a) negotiability of the cheque.

b) mode of the payment on cheque.

c) both (a) and (b) above.

d) none of these.

Q8: Which one of the following is not purpose of act of parliament?

a) authorized the taxation of codifying and clarifying the existing law.

b) to solve the individual grievances.

c) consolidated or cancel the existing law.

d) create a new law when one not exist before or amend existing law.

Q9: Contract of sale may be:

a) executed contract.

b) executory contract.

c) both a and b.

d) none of the above.

Q10: The sales of goods act, 1930 deals with:

a) movable goods only.

b) immovable goods only.

c) both a and b above.

d) all goods except ornaments.

COMMERCIAL LAWS (MCQs SET 41)

Q1: The term goods under the sale of goods act 1930 does not include:

a) stocks and shares.

b) actionable claims.

c) goodwill.

d) harvested crops.

Q2: Where the unpaid seller has parted with the goods by handing it over to a carrier for
transmission, and the goods are in transit, he can reclaim possession thereof. This right is called:
a) right of withholding delivery of goods.

b) right of lien.

c) right of re sale.

d) right of stoppage of goods in transit.

Q3: Partnership is a relationship which arises from:

a) operation of law.

b) status.

c) an agreement.

d) Almighty.

Q4: In a partnership firm, the difference of opinion over some “fundamental matter” can be
settled by:

a) Managing partner.

b) Majority of partners.

c) All the partners.

d) Senior partners.

Q5: “Negotiable” means transferrable. In the case of a negotiable instrument Negotiation can take
place from one place to another.

a) only by endorsement and delivery.

b) by mere delivery or by endorsement and delivery.

c) negotiation of a negotiable instrument cannot take place by mere delivery.

d) all negotiable instruments can not be negotiated.

Q6: Which one of the following is a quasi negotiable instrument.

a) share warrants.

b) letter of credit.

c) money orders.

d) bill of lading.
Q7: Which government authority has authority over The Public Procurement Regulatory Authority
(PPRA)?

a) Provincial government.

b) Municipal government.

c) The city government.

d) Federal government.

Q8: Which one of the following is/are the essential elements of a valid offer:

a) offeror must have an intention to be bound by his offer.

b) offer must be made to a specific person/ party and not to public at large.

c) must not be definite.

d) offer can be vague.

Q9: Al-Rehan jewelers wrote a letter to Salam. “We have received an exceptionally fine self-
winding swift watch which we will sell to you at a very favorable price.

a) A valid offer cannot be made by letter.

b) The letter lacks one of the essential elements of an offer.

c) The letter contains a valid offer which will terminate within a reasonable time.

d) The letter is an offer to sell.

Q10: Which of the following persons, though receive profits, are not the partners in a firm.

a) joint owners sharing profit.

b) money-lenders receiving profits.

c) seller of goodwill receiving profit.

d) All of the above.