Revision Questions and Answers on Business Law (CBT) / Business Law, CBT Q&A / By Charles Izuoba / March 9, 2020 August 23, 2021 These questions were extracted from 2017 Yabatech Test Questions on Business Law (ND3 PT) Please enter your email: 1. ____is required in addition to delivery for a bill of exchange payable to order to be negotiated. Focus Endorsement Commitment 2. Consideration must be sufficient but need to be____ Adequate Approved Consistent 3. An agent who indemnifies the principal in return for an extra or higher commission is called____ Assistant Agent Decorative Agent Del Credere Agent 4. A person who appoints another and authorizes him to enter into a contractual relationship with a third party is called____ Proprietor Principal Headmaster 5. The principle whereby a principal subsequently accepts an unauthorized action of an agent is called____ Ratification Agreement Acceptance 6. Except for Lawyers and Accountants, it is illegal to form a partnership of more than____ persons. 20 10 15 7. The type of agency created in an emergency for the benefit of a person whose authority cannot be obtained is called Emergency Agency Agency of Necessity Agency of Need 8. A partnership with one or more partners and one or more limited partners is called____ Restricted Partnership Approved Partnership Limited Partnership 9. If an acceptance is conditional or any fresh term is included by the offeree, the acceptance is called____ See Also: Law of Partnership - The Partnership Law Replanned Offer First Offer Counter Offer 10. Where an offeree refuses to assent to the terms of an offer, the offer is said to have been____ Rejected Void Collapse 11. A bill of exchange drawn on a banker and payable on demand is called a____ Deposit Slip Withdrawal Slip Cheque 12. Goods that are owned or possessed by the seller under a contract of sale are called____ Real Goods Contractors Goods Existing Goods 13. Property will not pass in unascertained goods until the goods are____ Ascertained Salable Recommended 14. An invitation to make an offer is called____ Invitation to Treat Invitation to Sale Invitation for Business 15. The person on whom a bill is drawn is known as____ Withdrawer Drawer Drawee 16. In a general partnership, the maximum number of partnerships is____ 15 10 20 17. A bill which on the face of it purports or is to be both drawn and payable within Nigeria or drawn within Nigeria upon some person resident therein is called____ Inland Bill Permanent Bill National Bill 18. Where, without the fault of either party of a contract, there is an occurrence that makes the contract impossible to perform, the contract is said to have been____ See Also: #1-10 Financial Accounting Questions & Answers Dissolved Frustrated Savaged 19. The mode of payment by the hirer in a hire purchase transaction is____ Installment Payment Progress Payment Major Payment 20. State the type of goods to which the Hire Purchase Act 2004 is applicable irrespective of the amount involved. Vehicle Repair Motor Vehicle Machine Set 21. Sale in market overt, estoppels, sale by the seller in possession and sale by the buyer in possession are exceptions to the principle captured in the Latin phrase called____ Nemo Habet Nemo Dat Quod Non Habet Herbert Macaulay 22. A partner who does not participate in the day to day running of a partnership business is____ Distance Partner Unaccepted partner Sleeping Partner 23. A term which authorizes the owner or his agent to enter any premises to retake possession in a hire purchase agreement is____ Possession Stamp Agreement Void 24. A seller’s right to stop goods on the way before it gets to the buyer is called____ Stoppage in transitu Work in Transit Transiting 25. An implied condition on the part of the seller that he has a right to sell goods when a property is to pass is known as____ See Also: AGENCY - Law of Agency (Business Law) Ownership CEO Title 26. Under the Hire Purchase Act 2004, the owner can recover possession without a court order, where there is a default in an instalment when the____ has been paid. 50% or 60% 40% or 60% 30% or 70% 27. When will title in goods pass to the hirer under a hire purchase contract? When the hirer pays completely for the goods When the hirer pays as agreed for the goods When the hirer exercises the option to purchase 28. The relationship which subsists between persons carrying on business is common is called____ Partnership Collaboration Participation 29. Something of value in the eye of the law which is given for a promise in order to make it enforceable is called Promissory Note Agreement Consideration Loading … Related posts: AGENCY – Law of Agency (Business Law) #1-10 Financial Accounting Questions & Answers Law of Contract Law of Partnership – The Partnership Law Law Case Study – How To Answer Case Studies in Law Vitiating Factors – 5 Major Vitiating Factors Questions on 1,2,3 Column Cash Book Purchasing Cycle And International Purchasing Questions on Probability – Business Maths 10 Questions on Subsidiary Books Subsidiary Books of Accounting; Types & Summary