MCQ 23 December 2023

Daily MCQs for Judiciary Prelims Exams - (23 December 2023)



Question/ Answer
Question1:- Act of the firm as per Section 2(a) of Indian Partnership Act means
  • (a) Act done by all the partners which gives rise to a right enforceable by the firm
  • (b) Act or omission done by all the partners of the firm which gives rise to a right enforceable by or against the firm
  • (c) Act or omission by all the partners, or by any partner or agent of the firm which gives rise to a right enforceable by or against the firm
  • (d) Act or omission by all the partners, or by any partner or agent of the firm which gives rise to a right enforceable by the firm
Answer is C is correct. As per Section 2(a) of Indian Partnership Act, act of the firm means any act or omission by all the partners, or by any partner or agent of the firm which gives rise to a right enforceable by or against the firm. Therefore option (c) is the correct answer.
Question2:- Mark the correct statement
  • (a) The unrepealed provisions of the Indian Contract Act 1872 save in so far as they are consistent with the express provisions of this Act, shall continue to apply to firms
  • (b) The unrepealed provisions of the Indian Contract Act, 1872 save in so far as they are inconsistent with the express provisions of this Act, shall continue to apply to firms
  • (c) The unrepealed provisions of the Indian Contract Act, 1872 and Specific Relief Act save in so far as they are inconsistent with the express provisions of this Act, shall continue to apply to firms
  • (d) The repealed provisions of the Indian Contract Act, 1872 save in so far as they are inconsistent with the express provisions of this Act, shall continue to apply to firms
Answer is B is correct. As per Section 3 of the Indian Partnership Act, the unrepealed provisions of the Indian Contract Act, 1872 save in so far as they are inconsistent with the express provisions of this Act, shall continue to apply to firms. Therefore option (b) is the correct answer.
Question3:- Firm name is defined under which provision of Indian Partnership Act
  • (a) Section 3
  • (b) Section 2
  • (c) Section 4
  • (d) Section 5
Answer is C is correct. As per Section 4 of the Indian Partnership Act persons who have entered into partnership with one another are called individually partners and collectively a firm, and the name under which their business is carried on is called the firm name. Therefore option (c) is the correct answer.
Question4:- What is not the essential of partnership
  • (a) Partnership is a result of an agreement
  • (b) Partnership is for carrying on a business
  • (c) There has to be sharing of profits and losses between the parties
  • (d) There must be mutual agency amongst partners.
Answer is C is correct. Partnership is created only for sharing of profits and not for losses. Sharing of profits is an essential condition of partnership. Therefore option (c) is the correct answer.
Question5:- In which case it was held ‘no man is a partner unless he has the right to share in the profits of a business, but every person who received the profit is not necessarily a partner.’
  • (a) Cox v. Hickman
  • (b) Grace v. Smith
  • (c) Abdul v. Century Wood Industries
  • (d) None of the above
Answer is A is correct. In Cox v. Hickman, the House of Lords held this and recognized the principle of mutual agency between the partners. Therefore option (a) is the correct answer.
Question6:- What is an essential ingredient to determine whether a person is a partner of a firm or not
  • (a) Agreement between them
  • (b) Status between them
  • (c) Conduct of parties
  • (d) Agreement and status between them
Answer is A is correct. As per Section 5 of the Act, relation of partnership arises from contract and not from status. Members of Hindu undivided family carrying on a family business as such or a Burmese Bhuddist husband and wife carrying on business, are not partners. Therefore option (a) is the correct answer.
Question7:- Mark the correct statement
  • (a) An agreement to carry on business at a future time does not result in partnership unless the time has arrived and business commences
  • (b) An agreement to carry on business at a future time does result in partnership
  • (c) An agreement to carry on business at a future time does result in partnership only when the partners agree
  • (d) An agreement to carry on business at a future time does result in partnership as per Section 7
Answer is A is correct. In R. R. Sarana v. Reuben, court held that an agreement to carry on business at a future time does not result in partnership unless the time has arrived and business commences. Therefore option (a) is the correct answer.

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