Chapter 01

1) _________means those rules and principles that govern and regulate social
conduct and observance of which can be enforced in courts.
a) Law
b) Rules
c) Policies
d) Procedures

2) Law is either public law or _________ law.

a) Public
b) Private
c) Local
d) Family

3) Public law is divided into ______classes.

a) One
b) Two
c) Three
d) Four

4) Criminal law is________ law.

a) Public
b) Private
c) Local
d) Revenue

5) Public law includes the _______ law.

a) Constitution
b) Administrative
c) Criminal
d) All of these
 6) Public law does not include the_________ law
a) Constitution
b) Administrative
c) Criminal
d) Private

7) Legislative a part of a state formed by _________.

a) Company
b) Firm
c) Parliament of Pakistan
d) Governor

8) __________law govern relationship between individual and state.

a) Public
b) Private
c) Civil
d) Criminal

9) __________ law govern relationship of individuals between individual.

a) Partners
b) Person
c) Private
d) International

10) __________ law, identifies the circumstances in which individual may seek
remedies.
a) Civil
b) Criminal
c) Local
d) Administrative
11) __________ law governs section of states and defines relationship between
individuals and state.
a) Civil
b) Criminal
c) Local
d) Family

12)Civil law affects only injured parts and not entire.

a) Company
b) Cash
c) Society
d) Firm

13)__________ law cases as a result of crime affect whole community or society.

a) Private
b) Public
c) Civil
d) Criminal

14) Common law is a complete.

a) Subject
b) System
c) Topic
d) Object

15) Civil law regulates __________.

a) Proceed
b) Dispute
c) Punish
d) Sentence
16) __________ law punishes guilty person.
a) Criminal
b) Civil
c) Common
d) Local

17) Example of private law includes __________.

a) Common Law
b) Law of Conduct
c) Law of Guarantee
d) A to C

18) Example of civil law includes __________.

a) Common Law
b) Company Law
c) Law of Guarantee
d) Law of Tort

19) Example of public law does not include __________.

a) Common Law
b) International Law
c) Administration Law
d) Law of Agency

20) Which of the following is not legislative authority at federal level?

a) National Assembly
b) House of Senate
c) President
d) Judiciary
 Chapter 02
1) Lawful offer is?
a) Promises
b) Legal Relations
c) Proposal
d) Presentations

2) Offer, when accepted becomes

a) Promises
b) Contract
c) Agreement
d) Proposal

3) An agreement is enforceable by law is called.

a) An agreement
b) Contract
c) Partnership
d) A & B

4) Waiver means ______ the rights. According to Contract Act 1872

a) To Obey
b) To Make
c) To Leave
d) To Follow
5) When a new contract is substituted for an existing contract, either between the
same parties or different parties _______ occurs.
a) Novation
b) Rescission
c) Remission & Waiver
d) Accord & Satisfaction

6) An offer is may be.

a) Conditional
 b) Uncertain
c) Ambiguous
d) Capable of being accepted
7) Free consent is defined in section____ of the Contract Act.
a) 11
b) 12
c) 13
d) 14
8) Specific offer may be accepted by
a) Offeree
b) His wife
c) His servant
d) Third party
9) Acceptance must be given in
a) Usual manner
b) Prescribed manner
c) Any suitable manner
d) More effective manner
10) Agreement made without consideration is
a) Void
b) Unlawful
c) Unforceable
d) Voidable
11) Consideration
a) Must be adequate
b) May be adequate
c) Must be inadequate
d) May be inadequate
12) Consideration may not be in the form of
a) Act
b) Abstinence
c) Promise
d) Money
13) Consideration given to the
a) Promise
b) Third party
c) Offeror
d) Promisor
14) Consideration to be valid must be
a) Real
b) Illusory
c) Opposite to public policy
d) Ambiguous
15) Consent is said to be free when it is not caused by
a) Coercion
b) Mistake
c) Fraud
d) All of these
16) An agreement which is enforceable by law at the option of one or more of
the parties thereto, but not at the option of the other or others.
a) Valid contract
b) Voidable contract
c) Contingent contract
d) None of these

17) An Agreement formed by an exchange of a promise between two parties.

a) Unilateral contract
b) Bilateral contract
c) Implied contract
d) Express contract
18) An Agreement created by actions of the parties involved, but it is not written
or spoken.
a) Valid contract
b) Implied contract
c) Express contract
d) Contingent contract
19) A _______ contract is one in which a promise is conditional and shall be
performed in future.
a) Voidable contract
b) Implied contract
c) Express contract
d) Contingent contract
20) Discharge of contract means the termination of a contractual relationship
between parties according to the act.
a) 1871
b) 1872
c) 1873
d) 1874

Chapter 03
1) The sale of Goods Act, 1930 came in to force
a) September 1, 1930
b) December 1, 1930
c) August 1, 1930
d) July 1, 1930
2) The sale of Goods Act, 1930 contains
a) 68
b) 70
c) 72
d) 66
3) Contract of sale may be
a) Absolute
b) Conditional
c) Contingent
d) Either A or B
4) Sale is also known as
a) Absolute Sale
b) Conditional Sale
c) Contingent Sale
d) None of these
5) Definition of contract of sale is given, under
a) Section 4 of the Act
b) Section 4 (b) of the Act
c) Section 4 (a) of the Act
 d) Section 4 (1) of the Act

6) Contract of Sale may be

a) Executed Contract
b) Executory Contract
c) Future Contract
d) A & B
7) Sale can be only made for
a) Specific Goods
b) Future goods
c) Contingent goods
d) Present goods
8) Contract of sale cannot be made for
a) Agriculture crops
b) Electricity plant
c) Shares and debentures
d) Electricity
9) Contract of sale is a generic term, which includes
a) Actual sale
b) An agreement to sale
c) Future sale
d) A & B
10) Sale of goods Act, 1930 defined condition on
a) Section 12 (1)
b) Section 12 (a)
c) Section 12 (b)
d) Section 12 (2)
11) In an auction sale, the seller can have, how many bidders from his side
a) One
b) Two
c) Three
d) Four
12) Section 2, of The Sale of Goods Act is about
a) Exception
b) Definition
c) Principle
 d) Price

13) Delivery of goods may be either

a) Actual
b) Constructive
c) Symbolic
d) All of above
14) Unpaid seller has a right against
a) The goods
b) The carrier of goods
c) The buyer
d) A & C
15) In auction sale goods are ultimately sold to______bidder.
a) Highest
b) Lowest
c) Middle level
d) None of these
16) Appropriation to be legally valid must be
a) Unconditional
b) Unintentional
c) By mutual consent
d) A & C
17) The unpaid seller has lien over the goods for
a) Price of goods
b) Warehouse charges
c) Carrier charges
d) Sell of goods
18) Sale of goods Act, 1930 has defined warranty as
a) Section 12(1)
b) Section 12(2)
c) Section 12(a)
d) Section 12(3)

19) An unpaid seller has rights against goods

a) Right of line
b) Right of re-sale
c) Right to withhold delivery
d) All of above
20) Sale of goods Act 1930, defines the term unpaid seller
a) According to section 42
b) According to section 43
c) According to section 44
d) According to section 45

Chapter 04

1) Negotiable Instruments Act

a) 1872
b) 1882
c) 1932
d) 1881
2) _______a person who draws cheque
a) Drawer
b) Payee
c) Holder
d) Drawee
3) _______a holder of cheque on indorsing cheque to someone else
a) Drawee
b) Drawer
c) Holder
d) Indorser

4) The negotiable instruments Act included which of kind.

a) Promissory notes
b) Bill of exchange
c) Cheques
d) All of above
5) The person who makes the promissory note and promises to pay is called.
a) Taker
b) Creater
c) Maker
 d) Payee
6) A negotiable instrument means
a) Promissory note
b) Bill of exchange
c) Cheque
d) All of above
7) Every instrument was made, drawn, accepted, endorsed, negotiated or
transferred for
a) Consideration
b) Acceptance
c) Stamped
d) Endorsements
8) Presumptions as to negotiable instruments section 118 and section 119 contains
a) Stamped
b) Holder
c) Acceptance
d) All of above

9) In promissory note there are _________ parties.

a) One
b) Two
c) Three
d) Four
10) __________ requires acceptance of drawee.
a) Promissory note
b) Bill of exchange
c) Promise
d) Order
11) Liability of maker is________
a) Basic
b) Fundamental
c) Primary
d) Secondary
12) A bill of exchange sometimes is called.
 a) Craft
b) Bull
c) Draft
d) Pass
13) A _________ is always payable is money, no any other thing can be paid at
maturity.
a) Negotiable instrument
b) Money
c) Holder
d) Stamp

14) _________ is a drawers banker on whom cheque is drawn.

a) Drawee
b) Drawer
c) Holder
d) Payee
15) __________ is a person to whom cheque is payable.
a) Payee
b) Drawer
c) Holder
d) Drawee
16) _________ is a person to whom cheque is indorsed
a) Indorser
b) Indorsee
c) Drawee
d) Drawer
17) Any person entitled in his own name to the possession of a cheque and to
receive the amount due from the drawee.
a) Drawee
b) Payee
c) Holder
d) Indorsee
18) Payment of cheque can be _________.
a) Time
 b) Force
c) Name
d) Stopped
19) A bill of exchange may be drawn on any person including a ____
a) Banker
b) Person
c) Officer
d) Teacher
20) Notice of dishonour of cheque is ____________ required.
a) Always
b) Also
c) General
d) None of these

Chapter 05
1) The partnership Act, 1932 came into force on,
a) December 1, 1932
b) November 1, 1932
c) August 1, 1932
d) October 1, 1932
2) Partner is
a) An agent of the firm
b) Principal to other partners
c) Agent as well as principal
d) None of these
3) The liability of partner is
a) Unlimited
b) Limited
c) Limited to his share in profit
d) Limited by guarantee
4) Registration of partnership is
a) Compulsory by law
b) Optional
c) Obligatory by the circumstance
d) None of these
5) Rights and liabilities of the partners are generally determined by
a) Partnership agreement
 b) Partnership act
c) Implied by their conduct
d) A & B
6) What is required for becoming partner in the firm
a) Contractual capacity
b) Adequate capital
c) Sufficient time to devote
d) Capacity to bear loss
7) The partner, who takes active part in the conduct of business of partnership is
known as
a) Active partner
b) Actual partner
c) Ostensible partner
d) Either A, B or C
8) The partner who does not take part in the conduct of business of partnership is
known as
a) Sleeping partner
b) Nominal partner
c) Sub-partner
d) Active partner
9) According which section, introduction of a new partner into an existing firm in
lifetime.
a) Section 31
b) Section 32
c) Section 33
d) Section 34
10) Partners are liable for the debt of the firm
a) Jointly all partners
b) Jointly and severally
c) Severally
d) Individually

11) Partnership deed may be made

a) In writing
b) Orally
c) By the conduct of parties
d) Either A, B and C
12) Which one of the following is joint venture?
a) Particular Partnership
b) Partnership at will
c) General partnership
d) Partnership for fixed period
13) Every partner is subject to the duties
a) Mandatory duties
b) Duties subject to agreement
c) Under the provision of act
d) A & B
14) In case of dissolution of the firm, if public notice is not given who will
continue to be liable for the acts done after dissolution.
a) Sleeping partner
b) Dormant partner
c) Insolvent partner
d) Partners of the firm
15) Retiring partner will remain liable for all the acts of the firm
a) Before retirement
b) Pending at the time of retirement
c) After retirement
d) A & B
16) Which of the following is not type of partnership?
a) General partnership
b) Limited partnership
c) Limited liability partnership
d) Specific partnership
17) Implied authority of a partner is derived from
a) Conduct of parties
b) Law
c) Business usage
d) All of above
18) Which of the following is not kind of partnership?
a) Partnership at will
b) Particular partnership
c) Partnership beyond fix term
d) Partnership at common interest
19) Public notice of retirement may be given
a) By retiring partner
 b) By any other partner
c) By the partnership firm
d) A & B
20) In partnership, there is
a) Co-ownership
b) Mutual agency
c) Fiduciary relation
d) All of above