Federal Public Service Commission
Examination of Competitive Examination
For Recruitment to Posts in BS-17 Under
The Federal Government, 2011
Mercantile Law
TIME ALLOWED: 2 HOURS & 30 MINUTES MAXIMUM MARKS:80
Part-I (MCQs) (COMPULSORY)
Q.1. (i) Select the best option/ answer and fill in the appropriate Circle on the OMR Answer Sheet.( 20×1=20)
(ii) Answers given anywhere, other than OMR Answer Sheet, shall not be considered.
1: Which of the following contracts is voidable, where:
(a) Aparty is induced by undue influence (b) One party under mistake of fact
(c ) both parties under mistake of fact (d) None of these
2: in case of wilful wrong sub agent is responsible to:
(a) Agent (b) Principal (c) Sole agent (d) None of these
3: A tender notice amounts to:
(a) Proposal (b) offer (c) invitation (d) None of these
4: A contract to sell property by minor through guardian is:
(a) Void (b) voidable (c) valid (d) None of these
5: How many parties are there in contract of guarantee?
(a) 5 (b) 4 (c) 3 (d) None of these
6: Which of the following is eligible to become the director of the company.
(a) Minor (b) undischarged insolvent (c) person representing creditors (d) None of these
7: extra ordinary general meeting of a company includes:
(a) Annual general meeting (b) statutory meeting (c) plenary meeting (d) None of these
8: Petition for the winding up of company may be moved by :
(a) auditor general (b) advocate general (c) company judge (d) None of these
9: The companies act repealed by the companies ordinance, 1984 pertained to year:
(a) 1930 (b) 1933 (c) 1935 (d) None of these
10: penalty for improper use of word “Limited” is:
(a) fine (b) imprisonment (c) fine with imprisonment (d) None of these
11. In which of the following an arbitration is not discharged by the death of party.
(a) voluntary (b) statutory (c) contractual (d) None of these
12. The assent of arbitrator by court is:
(a) optional (b) not required (c) necessary (d) None of these
13. The number of arbitration act, 1940 is:
(a) 11 (b) 15 (c) 20 (d) None of these
14. Natures of misconduct justifying removal of arbitrator should be:
(a) Legal (b) moral (c) procedural (d) None of these
15. Suit by unregistered firm against third party is :
(a) maintainable. (b) barred (c) permissible (d) None of these
16. The partnership is:
(a) juristic person (b) juridical person (c) natural person (d) None of these
17. The firm and firm name are:
(a) synonymous (b) interchangeable. (c) different terms (d) None of these
18. The maker of the promissory note is liable as:
(a) principal debtor (b) principal creditor (c) undischarged surety (d) None of these
19. Valid presentation of a cheque is within six months from:
(a) the date is drawn (b) date of last correction (c) date of delivery (d) None of these
20. an exception to “No one can transfer what he does not have “:
(a) registered gift (b) will (c) estoppel by owner (d) None of these
Part- II
NOTE: Attempt only four questions:
Q2: Discuss the statutory liability both civil and criminal which arises as a result of untrue statement in a prospectus.
Q3: What are the modes in which maker, acceptor or endorser of a negotiable instrument is discharge(d)
Q4. How will u distinguish a mistake of fact from a mistake of law. Discuss their legal effect on contract.
Q5. What is meant by expression “Passing of Property”? Discuss the law which governs the transfer of property as between the seller and the buyer.
Q6. Discuss the scope and extent of powers of a judicial authority to stay legal proceedings where there is an arbitration agreement. Elaborate as to what amounts “To taking any steps in the proceedings”.
Q7. Write a comprehensive note on the relations of partners to one another.
Q8. Write short notes on any two of the following:
(a) Insurance appellate tribunal (b) Fiduciary relationship. (c) Goodwill.