Papers Mercantile Law

8/13/2019 Papers Mercantile Law

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Q.2 section 10 of the contract act says that "all agreements are contracts if they are made by thefree consent of the parties competent to contract, for a lawful consideration and with a lawfulobject, and or not expressly declared to be void. explain fully what is intended by the wording notexpressly declared to be void. be brief and to the point.

Q.! discuss the circumtances under which a contract is discharged.

Q. what rights are conferred on an unpaid seller # explain an unpaid sellers lien. under whatcircumstances an unpaid seller loses his lien#

Q.$ explain sale by auction. when does title of goods passes from he seller to a buyer in anauction sale#

Q.% how would a court determine the existence of a partnership # explain the principle laid downin &ox v . hic'man.

Q.( discuss the significance of resolutions in regulating the affairs of a company . explain what ismeant by the doctrine of ultra vires a company#

Q.) who may be appointed as an arbitrator# describe the powers of an arbirator under thearbitration act, 1*0.

1 +art 1 bjective

1- hich of the following contracts is voidable, where-/a party is induced by undue influence /b ne party under mista'e of fact/c b oth parties under mista'e of fact /d one of these

2- in case of wilful wrong sub agent is responsible to-/a gent /b +rincipal /c 3ole agent /4 none of these

!- tender notice amounts to-/ +roposal b. offer c. invitation d. none of these

- contract to sell property by minor through guardian is-. 5oid b. voidable c. valid d. none of these

$- 6ow many parties are there in contract of guarantee#. $ 7. &. ! d. none of these

%- hich of the following is eligible to become the director of the company.. 8inor 7. un discharged insolventc. person representing creditors d. none of these

(- extra ordinary general meeting of a company includes-. nnual general meeting b. statutory meeting c. plenarymeeting4. none of these


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)- +etition for the winding up of company may be moved by -. auditor general b. advocate general c. company judged. none of these

*- 9he companies act repealed by the companies ordinance, 1*) pertained to year-a. 1*!0 b. 1*!! c. 1*!$ d. none of these

10- penalty for improper use of word :;imited< is-. fine b. imprisonment c. fine with imprisonment d. none of these

11. =n which of the following an arbitration is not discharged by the death of party.. voluntary b. statutory c. contractual d. none of these

12. the assent of arbitrator by court is-. optional b. not re>uired c. necessary d. none of these

1!. the nomber of arbitration act, 1*0 is-. 11 b. 1$ c. 20 d. none of these

1. natures of misconduct justifying removal of arbitrator should be-. ;egal b. moral c. procedural d. none of these

1$. suit by unregistered firm against third party is -. maintainable.7. barred c. permissible d. none of these

1%. the partnership is-. juristic person b. juridical person c. natural person d. none of these

1(. the firm and firm name are-. synonymous b. interchangeable. &.differe nt terms. 4. none of these

1). the ma'er of the promissory note is liable as-. principal debtor b. principal creditor c. undischarged surety d. none of these

1*. valid presentation of a che>ue is within six months from-. the date is drawn b. date of last correection c. date of delivery d. none of these

20. an exception to :o one can transfer what he does not have :-. registered gift b. will c.estoppel by owner d.none of these

+?9 2-ttempt only four >uestions-

Q2- 4iscuss the statutory liablity both civil and criminal which arises as a result of untruestatement in a prospectus.

Q!- hat are the modes in which ma'er, acceptor or endorcer of a negotiable insturment isdischarged.

Q. 6ow will u distinguish a mista'e of fact from a mista'e of law. 4iscuss their legal effect oncontract.


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Q$. hat is meant by expression :+assing of +ropertyuoting law.

Q). define and explain :consent< B :free consent


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/c =mprisonment upto ! months or fine upto ?s. $00EA or with both/d fine upto ?s. 10000EA only/e none of these

xix &an a compoundable criminal case be referred to arbitration#/a Fes /b o /c one of these as only civil matters can be referred to

xx ithin how much period, the arbitrators are legally re>uired to ma'e their award after enteringon the reference#

/a one month /b two months /c three months/d four months /e one of these

+?9 A ==

9@-

/i +?9A== is to be attempted on the separate nswer 7oo'./ii ttempt ;F GH? >uestions from +?9A==. ll >uestions carry @QH; mar's./iii @xtra attempt of any >uestion or any part of the attempted >uestion will not be considered.

Q.2. a ll contracts are agreements but all agreements are not contracts. +lease justify. /10

b Cive five examples of such agreements which are declared to be void under the contract ct,1)(2. /10

Q.! a hen will consent of a party to a contract be deemed to have been caused by coercion#/10

b hether threat to commit suicide by. husband will amount to coercion against wife in a contractbetween them# &omment. /10

Q. a and 7 contract to marry each other. 7efore the time fixed for the marriage, goes mad.hat type of contract it becomes# /10

b /i &an , who is pleader, recover fee from his client 7, when there was no express agreementas to the remuneration for the services rendered# Iustify your reply. /$/ii , gratuitously saves 7s property from fire. =s entitled to any compensation for it from7# /$

Q.$ a Iewellery was pledged with a money lender as security. 9he lender gave it to his wife

for putting it on a marriage. hile returning from the ceremony, she was attac'ed by dacoitsand robbed of it. as the money lender liable for ma'ing good the loss to the loanee after suchincident# &omment. /10

b hat are the rights of the +awnee in respect of the thing pledged# /10

Q.% hat statutory restrictions are imposed on the alteration of articles of association of acompany# /20


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Q.( a hat remedies are available to a buyer when the seller delivers him goods less thanEormore than the >uantity contracted# /10

b purchased a pole for his carriage from 7, hile was driving the pole due to a latent defect,bro'e and the horses got frightened and injured. =s any remedy available to in such a case#

&omment" /10

Q.) a =n what cases, a party to the arbitration agreement may appoint his own appointedarbitrator to act as sole arbitrator in the reference# /10

b 4efine the following- /10/i 4rawee /ii +ayee /iii ccommodation 7ills /iv 7lan' instrument /v &ross che>ue

8ercantile ;aw +aper 200)

QA1 3elect the best option and fill in the appropriate box on the answer sheet

=A =f the consideration for an agreement is inade>uate, the agreement is-/a 5alid /b 5oid /c 5oidable /d one

==A n a contract by an agent on the behlf of undisclosed principal, the principal-/a 8ay sue on contact /b &annot sue /c =s hit by privity of contact /d one

===A &arlill v &arbolic 3mo'e 7all &o. ;td. deals with-/a &ounter proposal /b =mplied acceptance /c =mplied revocation /d one

=5A hat is the amount of care a bailee is re>uired to ta'e in respect of goods bailed to him-/a @xtraordinary /b rdinary /c ?easonable /d one

5A void contract is-/a n illegal agreement /b +artly valid agreement /d one

5=A J agrees not to carry on a similar business with F for two years in consideration of?s.$0,000EA as good will. 9he agreement is-/a 5oid due to restraint of trade /b 5alid /c gainst Js fundamental rights /d one

5==A hihc one of the following cannot be called an ct of Cod-/a n unprecedented rainfall /b n earth>ua'e /c Gire not caused by lightening /d one

5===A n obligation arises from-/a contract /b Grom a wrongful act /c 7oth a B b /d one

=JA 9he rule nemo dat >uod non habet means-/a o one should interfere in anothers business /b o one should be retained in a partnershipagainst his will /c o one can give what he has not got /d one

JA=n a public company the shares are subscribed by-


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QA$ 4escribe the general principle in determining the existence of partnership# &ompare theprinciple with the rule laid down in &ox v. 6ic'man.

QA% ? signed a document in these terms in consideration of the loan of ?s. 1000EA from K =, ?agree to repay the sum of ?s.1000EA on or before 4ecember !1, 200(". hether the abovedocument can be treated as a promissionary note# Cive the specifics of a promissionary note.

QA( @xplain the status and significance of rticles of ssociation of a company. 9he articles of aprivate company provided that every member who intends to transfer shares shall inform the4irectors who will ta'e the said shares ... at a fair price. 9he plaintiff held (2$ fully paid up sharesof ?s.10EA each and he as'ed the directors to buy them but they refused. ere the directorsbound to ta'e the shares# Cive reasons#

QA) @xplain the essentials of a valid award. ship called 9anais was chartered for a voyagebetween &anada and =taly. clause in the charter party provided for disputes to be settled in;ondon. dispute arouse and the owners of the 9anais as'ed the charterers to agree on anarbitrator but the charterers would not concur in an appointment. 3uggest solution

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9@- /i ttempt G=5@ >uestions in all including >uestion o. ) which is compulsory. ll>uestions carry @QH; mar's. =n each of the following cases given your decision and state the

legal principal that applies. +lease refrain from- /1 ?eproducing the facts of the casesK /2Hnnecessary and irrelevant detailsK /! Hnreadable handwriting./ii @xtra attempt of any >uestion or any part of the attempted >uestion will not be considered/iii &andidate must draw two straight lines /NNNNNNNNNNNNNNNNNN at the end to separate each>uestion attempted in nswer 7oo's.

1. ftab, 7ashir and &hinar are partners in computer business. 9he terms of the partnershipagreement provided that the business of the firm is to buy and sell used computers. t thebeginning of 4ecember 200%, &hinar retired from the firm. otice was placed in the newspapersand existing clients were informed of the retirement. =n the middle of 4ecember 200% 4ilawar

joined the firm. =n early Ianuary 200( the partners were surprised to receive delivery of an oninvoice for some very expensive computers, which had been purchased in the firmDs name by&hinar, shortly before his retirement. t the end of Ianuary 200( ftab departed from the firm

without notice, ta'ing with him ?s. 000,000 which had been left with the firm by a client whowished the partnership to obtain some computers for him. 6ow far can the firm andEor theindividual partners be made liable for-/a +ayment for the computers/b 9he missing ?s. 000,000

2. dnan has entered into a partnership with 7asharat and &hohan to operate a motor partsmanufacturing company. hile 7asharat and &hohan are out of town, dnan signs the following


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contracts, on behalf of the partnership-/a &ontract for a ?s. 1000,000 loan from 7an' of the est/b contract to purchase an adjoining piece of real estate to build a new par'ing lot for thecompany employees.Gurhermore, dnan opens a new ban' account for the business at the Htility 7an' ;imited.

ssuming that dnan and the partnership breach their obligations under the two contracts anddnan ma'es some unauthoriOed withdrawals from the new ban' account, please discusswhether or not the partners /7sharat and &hohan and the partnership are li'ely to be liable tothe third party and the ban'.

!. 6ashim is a promoter in the process of forming a private limited company. 6e see's youradvice on the following matters./a 6ashim has bought a piece of land which he wishes to sell to the company once it is formed.6e paid ?s. 000,000 for the land but expects the company to pay him ?s. $000,000 for it. 6ewishes to 'now if he can do this and what, if any, duties he owes to the company in respect of thesale./b 7efore he registers the company, 6ashim wishes to 'now what restrictions there might be onfreedom to choose the companyDs name.

. slamDs mate from the housing scheme he lives in, 7ilal, has told slam that he should neverdo business as a company, because :in this country if you form a company, you gain noadvantages and spend the rest of your life dealing with red tape, worthless meetings, and theli'euiring that 7 shalldeliver the plastic on Gebruary 1$, 200(. 9he 7Ds ac'nowledgment provided that delivery wouldoccur on 8arch 1. 200(. hen does the contract re>uire seller to deliver the goods# 4iscuss.

%. Iaved advertises a 'itchen table and chairs for sa'e in the newspaper classified. slamanswers the ad, and comes over to pic' up the furniture and pay for it. fter slam has paidIaved, he realiOes that none of the furniture will fit in the bac' of his car. 3o slam leaves thefurniture inplace and decides to >uic'ly go borrow a truc' from a friend and return. 6owever,during the interim, the furniture is destroyed when IavedDs house burns down. slam demands arefund of his payment which Iaved straight away refuses. hat would you advise slam to file asuit in a court or a reference with an arbitrator# hich of these two modes would be suitable i.e.swifter and less expensive for slam to adopt in this situation#

(. ne day this spring awo'e in the morning and loo'ed out his window while 7, his neighbor

who was a painter, painting outer walls of the Ds house. :=snDt that nice


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). rite only correct answer in the nswer 7oo'. 4o not reproduce the >uestion.

/1 hich of the following is a bilateral contract#/a tells 7 that he will pay him ?s. 200 if 7 will wash his car which 7 does./b writes 7 a letter in which he promises that if 7 will wash his car, he will pay him ?s. 200

which 7 does./c and 7 both sign a piece of paper which says : agrees to pay 7 ?s. 200 if 7 agrees to wash

Ds car in exchange for ?s. 200./d one of these

/2 called his friend 7 and offered to give him two tic'ets of a cric'et match ta'ing place nextmonth. 7 said :o'ayP = love to watch cric'et matches


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/a +ay J if you can/b = wish you would pay J/c +leas pay J/d one of these

/* hich of the following is payable at a definite time#

/a :+ayable when :< wins the presidential electionue to pay for your haircut. =n this transaction, who is the drawee#/a Fou because you drew up the che>ue/b Four ban' because it may pay the che>ue/c 9he person who cuts your hair because the che>ue is payable to him./d one of these

/1! 9he best, simple definition of a contract is-/a n objective :meeting of mindsnegotiated twoAparty agreement upon which party will act or refrain from acting./pp/c document reflecting a :meeting of the minds< between two or more competent parties./d one of these/pp/1 =f is hit by a car, and 7, a doctor sees the incident and performs emergency first aid upon which results in recovery-/a unilateral contract is created whereby is obligated to pay 4r. 7 for services rendered./b bilateral contract is created and both parties must perform their duties/c >uasi contract is created between the parties/d one of these

/1$ offers to sell to 7 a mobile phone for ?s. $$00. 7 tells that he will ta'e the phone for ?s.$00. othing further is said and the next day, demands ?s. $00 from 7 in exchange for thephone. &hoose the true statement.

/a 7 is not obligated to pay ?s. $00 to /b 7 is obligated to pay ?s. $00 to /c 7 is obligated to pay ?s. $$00 to /d one of these

/1% 9he most common form of agency is-/a =mplied/b @xpress/c =njunctive


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/d one of these

/1( ssume that a new partner enters an ongoing partnership. 9he new partnerDs liability topreexisting creditors is best described by which of the following#/a 9he new partner is not liable to preexisting creditors of the firm./b 9he new partner must negotiate his or her liability with the preexisting creditors.

/c 9he new partner is only liable to the preexisting creditors to the extent of his capitalcontribution/d one of these

/1) hat is not a correct statement concerning promoters#/a 9hey are agents of the company./b 9hey generally are active before the company is formed./c 9hey owe fiduciary duties to the company./d one of these

/1* 9he phrase :piercing the corporate veil< refers to-/a =nspecting the boo's of the company./b 9he ignoring by courts of the corporate entity in order to do justice

/c ;earning the identity of the shareholders of the company ./d one of these

/20 hen someone gives to another person a power of attorney, this means that-/a 3uch person is an undisclosed principal/b 3uch person is a disclosed principal/c 3uch person given the power has authority to act as an agent/d one of these

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9=8@ ;;@4- 96?@@ 6H?38J=8H8 8?L3-100AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAote- /i ttempt ;F G=5@ >uestions in all, including Question o. ), which is &ompulsory. ll>uestion carry e>ual mar's. =n each of the following cases give your decision and state the legalprinciple that applies. Four answer must correctly identify the relevant areas of law, accuratelydiscover and apply the appropriate principle, caseAlaw and statue law, and should be wellstructured and argued. +lease refrain from- /1 ?eproducing the facts of the casesK /2Hnnecessary and irrelevant detailsK /! Hnreadable handwriting./ii @xtra attempt of any >uestion or any part of the attempted >uestion will not be considered.

Questions1. n 1st 3eptember 8r. Creen emails 8r. 7rown to see whether he would li'e to buy hiscollection of anti>ue paintings. 8r. 7rown has admired the collection for many years. 8r. Creensays that the collection is very valuable and should fetch about ?s. 200,000 at auction, but if 8r.7rown is interested in ta'ing the whole lot, he can have them all for ?s. 1$0,000. 8r. Creen tells8r. 7rown he can thin' about it for ( days, but after that, 8r. Creen will have to consideralternative offers.


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8r. 7rown is very excited about the possibility of ac>uiring the painting, so on the !rd 3eptember8r. 7rown phones 8r. Creen to see whether he will send him an authentication certificate for thegenuineness of the paintings along with the paintings. 8r. Creen says he will consider 8r.7rownDs re>uest.n th 3eptember after consulting with the relevant experts, 8r. Creen sends a fax to 8r. 7rownsaying that he will provide the authentication certificate, but that the price must go up to ?s2$0,000, as this reflects the cost of getting with 8r. 7rownDs fax machine so the fax was notreceived there.8r. 7rown decides that he will have the paintings anyway, so on $th 3eptember he writes a letterto 8r. Creen saying he will ta'e the entire anti>ue paintings. 6e admires the collection and offers8r. Creen ?s. !00,000 for its. s 8r. Creen has not heard from 8r. 7rown, he sells the collectionto 8r. hite.9he ;etter from 8r. 7rown arrives on the (th 3eptember. =s there any binding contract between8r. Creen and 8r. 7rown# hy or why not#

2. 3ajid instructs his agent 8ajid to purchase a house for no more than ?s. *0,00,000 andas he wishes to remain anonymous, 3ajid re>uests 8ajid not to disclose his identity. 9he vendor,ahid, refuses to sell for less than ?s. *$,00,000 believing that 3ajid will consent on learning ofcircumstances. 6ence 8ajid signs all documentation in his own name and pays the deposit. 3ajidrefuses to accept the contract on learning of the circumstances. 6ence 8ajid signs alldocumentation in his own name and pays the deposit. 3ajid refuses to accept the contractentered into by 8ajid.@xplain, with reasons, whether ahid can enforce the contract against-/a 3ajidK/b 8ajid/c =s 8ajid liable to 3ajid for exceeding his authority#!. n 12A01A200% contracted for the purchase of $0 computers from 7. 9he contractstated that the computers were to be delivered on the 12A02A200%. 4espite the fact that persistently pressed 7 for delivery, the computer had still not been delivered by 2)N02N200%. /7had repeatedly assured that computers were not delivered by 01A0!A200%. then told 7 that ifthe computer were not delivered by the 0$A0!A200%, the contract would be terminated. 7 did notattempt to deliver until the 10A0!A200%. 6aving bought computers from another dealer on 0%A0!A200%, refused to ta'e deliver. dvise as to whether he was entitled to refuse deliver.

. testator, who carried on business alone by his will appointed three persons to carry onhis business for the benefit of his wife for her life. fter his death his executors carried on thebusiness under the same name for eight years. re the executors partners# hy or why not#

$. client has in his possession the following instruments-7& /+vt ;imited=, :< son of :7uire reform. @xplainwhy the law is unsatisfactory and how you would improve it.


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(. Hnder what circumstances a party to an arbitration contract can remove his artitrator#

&ompulsory Question

/1 hen an offer can only be accepted by the performance of the person to whom the offer is

made. =s characteristic of-/a bilateral contractsK/b unilateral contractsK/c implied contractsK/d one of these

/2 tells 7, :=f you stood first in the class, =Dll pay you ?s. $000.00. 7 stood first in class and paide him ?s. $000.00. hich of the following is correct#/a and 7 had a unilateral contractK/b and 7 had an executor contractK/c and 7 had an executed contractK/d one of these

/! offers to sell 7 his motorcycle at some time in the future. 7 accepts. =s there a validcontract#/a +robably not, the terms are not definiteK/b +robably yesK/c 4efinitely not because failed to communicate the offerK/d one of these

/ hich of the following is not an effective way to terminatean offer#/a 7y rejectionK/b 7y acceptanceK/c 7y counter offerK/d one of these

/$ offers to sell 7 his collection of rare boo's for ?s. $000. 7efore b even has a chance toaccept, says :3orry, = changed my mind, no deal.< 9his is an example of-/a ?evocationK/b ?ejectionK/c &ounter offerK/d one of these

/% and 7 enter into a contract in which agrees to deliver mil' to a restaurant. 9hey forget toinclude a price in the agreement. court will-/a refuse to enforce the agreementK/b select the lowest >uoted price for mil' and insert it into contractK/c determine a reasonable price and insert it into the contractK/d one of these

/( agreed to supply food for alima to b at 1 pm. 6owever, he could hardly supply the food at$ pm./a 7 can reject the deliveryK/b 6e cannot reject the delivery/c 7 must accept the delivery/d one of these

/) hich of the following actions an unpaid seller cannot ta'e against a buyer-


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/a ;ienK/b 3toppage in transitK/c 3aleK/d one of these

/* hen a partnership is found liable for a debt, which assets are first used to pay the debt#

/a =ndividual assets of the partnersK/b +ersonal property of the limited partnersK/c +artnership ssests/d one of these

/10 partnership involves three essential elements. hich of the following is not one of thoseelements#/a n e>ual right in the management of the businessK/b ;imited liability for breach of contractK/c joint ownership of the business/d one of these

/11 hich of the following actions re>uires the unanimous consent of all partners before it may

be underta'en#/a 6iring a new employee/b +urchasing new office e>uipment/c dmitting new partners/d one of these

/12 n order =nstrument is the one which is payable to-/a named personK/b 9o a bearerK/c 9o both/d one of these

/1! bearer =nstrument is the one which is payable to-

/a named personK/b 9o a bearerK/c 9o bothK/d one of these

/1 holder in due course is the one-/a who finds an instrumentK/b who steals an instrumentK/c who gets an instrument as a giftK/d one of these

/1$ Gor the incorporation of a limited liability company filling of memorandum of association isessential-

/a for a public limited company onlyK/b for a private limited company, a public limited company and an unlimited companyK/c for a public limited company onlyK/d one of these

/1% subsidiary company is the one-/a which holds the majority shares of another companyK/b which deals in the trading of shares of other companiesK/c in which the majority shares are held by another companyK


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/d one of these

/1( is considering different forms of business organiOation for his business. Gor the purposes ofowning property and being a party to litigation, forms which are legal entities separate from theirowners include-/a ;imited +artnership onlyK

/b +rivate ;imited &ompanies onlyK/c 7oth +rivate and +ublic ;imited &ompaniesK/d one of these

/1) decision made by arbitrators is called-/a 3entenceK/b wardK/c Iudgment/d one of these

/1* n empire in an arbitration reference is appointed when the number of arbitrators is-/a ddK/b @venK

/c 8ore than 10K/d one of these

/20 9he appointment of a person of the minor age as an agent is-/a 5oidK/b 5alidK/c 5oidableK/d one of these

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9@- nswer G=5@ >uestions in all, including Question o. ) which is &8+H;3?F. ll>uestions carry @QH; mar's. =n each of the following cases give your decision and explain indetail the legal principle that applies on the case. Four answer must correctly identify the relevantareas of law, accurately discover and apply the appropriate provision thereof as well as therelevant case law. Four answer must also be well structured and well argued. ?efrain from- /1A?eproducing the facts of the casesK /2 M Hnnecessary and irrelevant detailsK /! M Hnreadablehandwriting.

9ari> wor's for a boo' publisher, ta'ing orders for boo's and delivering boo's to the boo'shopsthroughout orth est Grontier +rovince. 9he customers pay for the boo's by sending paymentdirect to the publisher and 9ari> has no authority to accept any payments. 6owever, 6amid, theowner of the &ity 7oo' 8art, has given payment for boo's to 9ari> on a number of occasions andthe publisher has not objected. few wee's ago 6amid bought large >uantity of boo's and gave9ari> cash. 9ari> has disappeared with the money. 9he publisher is threatening to sue 6amid forthe price of the boo's. dvise 6amid.Iaved, 8urad and 4anish carry on business in partnership as painters and decorators. 9he


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business was started with a loan from IavedDs father 7ashir, which the partners are still reApaying.9he firm has two employees, ?aheel and 8ubashir, who, although not partners, are treated astrusted members of the firm and have their names alongside those of the partners on all of thefirmDs stationery. ?ecently the firm has had some difficulties. Iaved was wor'ing at a customerDshouse using a blowAlamp to strip paint from the window frames, when he accidentally set fire tothe wood and the house was badly damaged. 8eanwhile, 8urad was holding a ladder for 4anishbut accidentally let it slip, so that 4anish fell and was injured. =t has also come to light that 4anishhad ta'en money from a customer in order to buy paint and wallpaper, but instead he 'ept themoney for himself. 9he tow customers and 4anish are threatening to sue the firm, the partners,?aheel, 8ubashir and 7ashir, for the loss and injury they have suffered. dvise the parties as totheir potential liability.3ardar, the owner of a small computer shop, bought a consignment of computers from 3hahbaO.9he computers turned out to be defective and did not conform to the specification that 3ardar hadbeen led to expect. 3ardar had assumed he was dealing directly with 3hahbaO, who had notindicated that anyone else was involved in the transaction. 6owever, when 3ardar confronted3hahbaO about the defects in the computers, 3hahbaO told 3ardar that he had been selling themachines on behalf of &hips B 7ytes /+rivate ;imited and added that any defects were not hisresponsibility as he was only an agent. 3ardar has made in>uiries and discovered that &hips B7ytes /+rivate ;imited have now gone into li>uidation. dvise 3ardar.

and 7 agree to run a tution centre on the partnership basis. =n one of the clauses of their

adjudication. =n a dispute which was being settled by two arbitrators appointed by them, noticedthat his arbitrator appointed is unjustifiably favouring 7. doubts that his arbitrator might havebeen bribed by 7, therefore, he does not expect any justice from him. 6ow can he get rid of hisarbitrator # hat would you advise him in these circumstances#6ightech /+rivate ;imited manufactures and sells computer modems. Coonline /+rivate ;imitedis an internet service provider that re>uires a large and complex modem to serve its customers.4ue to high demand, Coonline /+rivate ;imited is planning to expand its customer base from10,000 subscribers to 1$,000 subscribers. 10,000 of the subscribers can be handled by theexisting modems that Coonline /+rivate ;imited already has. 6owever, in order to accommodatethe additional $000 subscribers, Coonline /+rivate ;imited contracts with 6ightech /+rivate;imited to purchase $ additional modems at a cost of ?s. 2000 each. 9he contract specifies adelivery date of 1 8arch. Coonline /+rivate ;imited spends ?s. 1000 in advertising during themonth of Gebruary announcing the planned service, and is confident that it will be able to sign up

an additional 1000 subscribers in the month of 8arch after installation of the new modems. n 1Gebruary, 6ightech /+rivate ;imited calls and repudiates stating that it is unable to meet the 18arch delivery due to bac'log of orders, but would be able to deliver by 1 pril. Coonline/+rivate ;imited chooses to wait for the delivery by 1 pril. fter the modems are delivered andinstalled, Coonline /+rivate ;imited brings an action for the lost revenues from an anticipated1000 subscribers over the month of 8arch /?s. 20,000, the cost of advertising during the monthof Gebruary /?s. 1000, and the cost of advertising during the month of 8arch /?s. 1000. hich,if any, of these costs is recoverable #6assan 3eeds/+rivate ;imited is a supplier of 3oya 7eans seeds. Gahad contracted with 6assan3eeds/+rivate ;imited for the delivery of one ton of 3oya 7ean seeds, for delivery at GahadDsplant. fter delivery, Gahad began the process of inspecting the 3oya 7eans seeds for >uality.9he inspection testing procedure is involved, and usually ta'es several wee's to completebecause it involves growing at least some of the seeds. fter one month, Gahad noticed several

defects in the seedlings that were growing. Gahad immediately notified 6assan 3eeds /+rivate;imited of the defects, and rejected the entire lot. 6assan 3eeds/+rivate ;imited come to you foradvice concerning a possible action of breach against Gahad. 3pecifically, 6assan as's youwhether Gahad has accepted the seeds, or properly rejected the seeds. 6ow do you advise6assan 3eeds/+rivate ;imited #9anweer, who owns a shop selling electrical goods, received an offer from ;owprice @lectricalholesalers to sell him $0 washing machines at a discount price of ?s. (00 each. 9he followingmorning, 9anweer posted a letter to ;owprice @lectrical holesalers accepting their offer,unaware that, at the same time, ;owprice @lectrical holesalers had sent him a letterwithdrawing the offer. ;owprice @lectrical holesalers is now refusing to deliver the washing


18/31

machines. 9anweer also received a letter from 3alamDs 4iscount arehouse, offering to supplyhim with 20 freeOers at ?s. 1200 each. 9he letter stated that 3alamDs would assume their offerhad been accepted if they did not hear to the contrary from 9anweer within $ days. 9anweer, whodid not want the freeOers, ignored the letter but 3alamDs 4iscount arehouse have now deliveredthe freeOers to his shop. dvise 9anweer of his legal position in respect of both ;owprice@lectrical holesalers and 3alamDs 4iscount arehouse.

&8+H;3?F QH@39=

).rite the correct answer in the nswer 7oo'. 4o not reproduce the >uestion.

/1 9alal is forming a business which he wants to control completely. 6e 'nows nobody else withwhom he wishes to wor', he values his privacy, and he disli'es formality, paper wor', state filingre>uirements, and lawyers. hat type of business organiOation should he prefer #/a Ceneral +artnership /b 3ole +roprietorship /c 3ingle 8ember &ompany /d one of these

/2 9he rticles of ssociation of a company contain-/a a set of governing rules adopted by the company./b ?esolutions of the board of 4irectors.

/c =nformation about the corporation, including its organiOation and functions./d one of these

/! partnership involves three essential elements. hich of the following is not one of thoseelements #/a n e>ual right in the management of the business/b ;imited liability for the liabilities of the firm/c joint ownership of the business/d one of these

/ ?ashid, 3hahid and 9alal agree to form a computer business. ?ashid agrees to manage thebusiness and to assume full personaK liability. 3hahid and 9alal agree to invest in the firm but tobe liable only to that extent. 9hese three have formed -

/a limited liability company /b a limited liability partnership/c an unlimited partnership /d one of these

/$ 9he members of a limited partnership include-/a general and limited partners /b general partners only/ccreditors /d one of these

/% bearer che>ue may be negotiated by-/a 8ere delivery /b @ndorsement and delivery/c4elivery with a separate written contract /d one of these

/( 9he responsibility for overall management of a company belongs to-/a the chief financial officer /b the employees/cthe board of directors /d one of these

/) 9he best definition of a >uorum is which of the following #/a =t is $1R of all shareholders./b =t is the number of members of a company that must be present before business may betransacted./c =t is the number of voters who must agree to alter the companyDs articles/d one of these


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/* hen a partnership is found liable for a debt, which assets are first used to pay the debt #/a =ndividual assets of the partners /b +ersonal property of the limited partners/c+artnership assets /d one of these

/109he board of directors does not have responsibility over which of the following areas #/a 9he appointment, supervision, and removal of corporate officers

/b 9he appointment, supervision, and removal of employees generally/c 9he declaration and payment of corporate dividends/d one of these

/11 found a wallet full of money on a roadside and upon finding the address of the owner in thewallet he returned it to its owner. hen he came bac' he read the announcement of a reward forthe return of such wallet in the newspaper-/a 9he owner is liable to pay him the reward/b 9he owner is not liable to pay him the reward/c 9he owner is liable to pay him half of the reward/d one of these

/12 8uhsin is considering forms of business organiOation for his law firm. ne advantage of the

limited liability partnership form is that it allows the limited partners to avoid personal liability for-/a the malpractice of other limited partners regarding the conduct of the firmDs business/b the obligation of the firm beyond their contributions to the capital/c the obligations of the firm within the limit their contributions to the capital/d one of these

/1! Ds son has forged 7Ds name to a pronote. 7 under threat of prosecuting Ds son demandedthat should sell him his house that is worth ?s. 1000,000EA for !00,000EA. agrees with theproposal K 9he contract is-/a 5alid /b 5oidable /c 5oid /d one of these

/1 9he best, simple definition of a contract is-/a an objective :meeting of the minds a mobile phone for ?s. $$0. 3adi> tells 4anish that he will ta'ethe phone for ?s. $0. othing further is said and the next day, 4anish demands ?s. $0 from3adi> in exchange for the phone. &hoose the correct statement-/a 3adi> is bound to pay as his offer has been accepted by 4anish/b lthough there is no contract 3adi>/c 3adi> is not bound to pay as there is no contract/d one of these


20/31

/1) =f you want to start a partnership what formal re>uirements do you have to meet #/a Fou must register the firm with the ?egistrar of Girms/b Fou do not need to satisfy any formal re>uirements/c Four firm cannot operate until you draft and get registered the rticles of +artnership/d one of these

/1* 9he relation between the partners of a firm is of-/a @mployer and @mployee /b 9rustee and 7eneficiary/c +rincipal and gent /d one of these

/20 bearer of instrument may be negotiated by-/a 8ere delivery /b @ndorsement and delivery/c 4elivery with a separate written contract /d one of these

@J8=9=, 2008@?&9=;@ ;.9=8@ ;;@4- 96?@@ 6H?3 8J=8H8 8?L3- 100

9@- ttempt G=5@ >uestions in all including QH@39= o.) which is &8+H;3?F.ll>uestions carry @QH; mar's.

1. firm of building contractors had contracted to build $0 houses in 10 months. 9he wor' too' 20months to complete because of the lac' of s'illed labour. 9he contractors pleaded that thecontract price was not bninding on them, and that they were entitled to ! greater sum on the basisof a >uantum meruit in view of the extra labour costs involved because the contract had beenfrustrated. hat are you &omments#

2. 8r. ulfi>ar was offered the post of +rofessor of ;aw at J Hniversity on the condition that hewould get his practicing licence cancelled to cease law practice. 8r. ulfi>ar did not agree tocease to practice. n this the Hniversity authorities refused to employ him in the post. &an 8r.ulfi>ar succeed in the suit brought by him against the Hniversity for getting the job# @xplain.

!. company had power under its S 8emorandumT"to sell or lend all 'inds of railway plant andto carry on the business of mechanical engineers and contractors". =ts directors agreed to build adam to produce hydra 1 power in country 9 and this agreement was ratified by the company.4evelop your answer 'eeping in view the legal importance of the object clause in a memorandumof a company.

. . the holder of a bill transfers it to 7, without consideration. 7 also transfers it to & withoutconsideration. & transfers to 4 for value. 4 transfers it toS @ without consideration. 4iscuss therights of @ against , 7, & and 4.

$. rite a detailed note on the different modes of dissolution of a firm.

%. 4iscuss the law regarding appointment of Hmpire. &an the court remove the umpire and underwhat circumstances#

(. =s the insurer liable in the following cases#/a ta'es a policy on his life and later commits suicide./b ta'es a policy on his wifes life and discovers her 3he dies.


21/31

G@4@?; +H7;=& 3@?5=&@ &88=33=&8+@9=9=5@ @J8=9= G? ?@&?H=98@9 9 +393= 7+3 M 1( H4@? 96@ G@4@?; C5@?8@9, 200!.

8@?&9=;@ ;

9=8@ ;;@4- 96?@@ 6H?3 8J=8H8 8?L3-100

9@- 1. ttempt G=5@ >uestions in all, including >uestion o. ) which is &8+H;3?F. ll>uestions carry @QH; mar's.2. =n each of the following cases give your decision and state the legal principal that applies. Fouranswer must correctly identify the relevant areas of law, accurately discover and apply theappropriate principles, caseAlaw and statute law, and should be well structured and argued.+lease refrain from /1 ?eproducing the facts of the casesK /2 Hnnecessary and irrelevantdetailsK /2 Hnreadable handwriting.

1. sif and 7abar carried on a business of household furniture under the name :sif B 7abarDsuic'ly answer rifDs >uestion by saying,:oP =t has never been wrec'ed in an accident.< =n fact the care had been seriously damaged inan accident and, although repaired, was worth much less than the value it would have had if therehad not been any wrec'. hen rif learnt the truth, he sued Creen 8otors ;td. and thesalesperson for rescinding the contract on the basis of fraud. 9hey raised the defence that thesalesperson did not 'now that the statement was false and had not intended to deceive rif. 4idthe contract of the salesperson constitute fraud# hy or why not#

%. &ompare the status of the finder of a lost che>ue with the status of the finder of a lost watch.4iscuss in detail.


22/31

(. 9here was a dispute between li and 7ashir which they referred to an arbitrator. 9he arbitratordecided for 7ashir. law graduate nephew of him told him that, unli'e a judgment of a court oflaw, the award of an arbitrator cannot be executed by a court.&an he involve a court in the execution of such award# 6ow# Hnder which ;aw# dvise him indetail.

&8+H;3?F QH@39=

). =n each of the following clauses of this >uestion only one statement is correct. rite down inyour answer boo' only the correct statement of the following clauses. 4o not write the wholeclause.

/1 9o what extent is a member of a company which is limited by guarantee personally liable forthe companyDs debts#/a 6e is personally liable for all the companyDs debts at any time./b 6e is personally liable for all the companyDs debts if the company is wound up./c 6is personally liability is limited to the amount set out in the memorandum on a winding up.

/d 6is personally liability is limited to the amount set out in the memorandum at any time./e one of these

/2 Iamshed, a house painter, misreads his wor' under order and paints 3almanDs house byaccident while 3alman sits inside watching. hich of the following is correct#/a a unilateral contract has been formed/b an implied contract has been formed/c a bilateral contract has been formed/d a >uasiAcontract has been formed/e no contract has been formed/f one of these

/! n !0A11A200! offered to buy one of the 10 tables of the same specification present in 7Dsshop for $00 rupees. 7 accepted the offer. =t was agreed that the table would be delivered on 1A12A200! while the price would be paid on )A12A200!. =t was not clear which of those tables wasattributed to the contract. hich of the following is correct#/a 9he table will become the property of when his offer to buy was accepted by 7./b 9he table will become the property of on 1A12A200! when it will be delivered to 7./c 9he table will become the property of on )A12A200! when he will pay the price./d one of these

/ 'ram sent a proposal to 7anaras by post for the sale of his stall in the 3unday 8ar'et.7anaras accepted the offer by post. 7anaras may revo'e his acceptance at any time before-/a 'ram receives the letter of acceptance/b 9he parties sign the contract/c 7anaras posts the letter of acceptance

/d one of these

/$ appoints 7 as his agent for buying him a house. 7 appoints & as his agent to arrange ahouse to be bought. & is liable to-/a 7 only/b only/c 7oth of them/d one of these


23/31

/% 4elivery of an insurance policy to the insured is-/a ot essential/b @ssential to form a binding contract between the prties/c @>ual to the acceptance by the insurer of the terms of the policy/d one of these

/( partner may be expelled from a firm/a 7y the majority of the partners/b 7y all the partners unanimously/c Hnder the contract of partnership if it expressly provides for the expulsion./d one of these

/) n order instrument may be negotiated by-/a 8ere delivery/b @ndorsement and delivery/c 4elivery with a separate written contract/d one of these

/* che>ue is always payable.

/a t a fixed date./b n demand/c fter the expiry of certain number of days after maturity./d one of these

/10 sold some food stuff to 7, a minor, on credit. =f 7 refuses to pay-/a can be paid out of the property of 7/b cannot be paid at all/c 7 will be personally liable to pay him/d one of these

/11 =f a contract has been fully performed by both parties, that contract would be described as-/a @xecuted contract

/b @xecutory contract/c =mplied contract/d one of these

/12 n unregistered contract of sale of a computer is-/a 5alid/b 5oid/c Hnenforceable/d one of these

/1! decision made by an arbitrator is-/a Ginal/b ppealable

/c ppealable with the agreement can appoint/d one of these

/1 @ach party to an arbitration agreement can appoint-/a nly one arbitrators/b nly two arbitrators/c nly three arbitrators/d one of these


24/31

/1$ 3hahid and 6amid wished to form a company. n 1 4ecember 2002 they f iled all there>uired documents with the ?egister. n 10 Gebruary 200! they received the &ertificate of=ncorporation dated 1 Gebruary 200!. 9he company was incorporated on-/a 1 4ecember 200!/b 1 Gebruary 200!/c 10 Gebruary 200!/d one of these

/1% public limited company must have-/a 9en directors/b 3even directors/c 9wo directors/d one of these

/1( listed public limited company must have-/a 9en directors/b 3even directors/c 9wo directors/d one of these

/1) , aged 1) for whom a court has appointed a guardian, wants to ma'e a contract. 6e canma'e a contract./a fter attaining the age of 9wenty years/b fter attaining the age of 9wentyAone years/c ow/d one of these

/1* agrees to pay 7 10,000 rupees if his /7Ds horse wins the race. 9he horse died one daybefore the race. 9he contract is-/a @nforceable/b 5oid/c 5oidable

/d one of these

/20 bidDs son has forged 8ajidDs name to a pronote. 8ajid under threat of prosecuting bidDsson demanded that he should sell him his bungalow that is worth one billion rupees for onemillion only. bid had no way except to agree with the proposal. 9he contract is-/a 5alid/b 5oid/c 5oidable/d one of these

G@4@?; +H7;=& 3@?5=&@ &88=33=

&8+@9=9=5@ @J8=9= G? ?@&?H=98@9 9 +393= 7+3 M 1( H4@? 96@ G@4@?; C5@?8@9, 2002.8@?&9=;@ ;

9=8@ ;;@4- 96?@@ 6H?3 8J=8H8 8?L3-100

9@- 1. ttempt G=5@ >uestions in all, including >uestion o. ) which is &8+H;3?F. ll>uestions carry @QH; mar's.2. =n each of the following cases give your decision and state the legal principal that applies. Four


25/31

answer must correctly identify the relevant areas of law, accurately discover and apply theappropriate principles, caseAlaw and statute law, and should be well structured and argued.+lease refrain from /1 ?eproducing the facts of the casesK /2 Hnnecessary and irrelevantdetailsK /! Hnreadable handwriting.

1. Iamal Lhan and Lamal Lhan have planned to start a business of groceries in partnership.9hey have agreed that in case of any future dispute between them they will never go to a court oflaw for decision instead they will do their utmost to get their disputes settled by some meansoutside the court. hat do you thin' how can they see' their purpose# 6ow would you advisethem#

2. Cama, 8aja and 7illoo were in partnership as hairdressers. n )th pril, 2002, 7illoo retiredfrom the partnership. few days later, Cama and 8aja bought in the f irmDs name an expansivelaser hairdressing machine to replace their traditional machines. n 1(th pril, a van arrived witha delivery of seven hairdressing chairs. 9he van driver showed them a purchase order in thefirmDs name, dated !rd pril and signed 7illoo. Cama and 8aja are refusing to pay for the chairs.9hey have also failed to pay for the laser hairdressing machines and the firm is in severe financialdifficulties. 7oth suppliers are threatening. re they bound to pay for both of the transactions#

4iscuss.

!. Iamal steals a bill of exchange and forges the signature of the payee on the reverse of the bill.6e then transfers it for value to 7ilal who ta'es it in good faith without being aware of the forgery.7ilal transfers the bill to Lamal. 9he payee discovers that Lamal is in possession of the bill andhe demands that Lamal return it to him. ho is legally entitled to the bill and why# ould it ma'eany difference to your answer if the payee had been aware that Iamal had ta'en the bill but haddone nothing about it until he heard that Lamal was in possession of it#

. 4ilawar Lhan and 7adam Cul are in partner 3hip running an extremely successful computersoftware business. 3anobar Lhan has decided to join the business and is able to invest asubstantial amount of capital. 9hey have decided that the business should be incorporated as aprivate limited company. 4ilawar Lhan, 7adam Cul and 3anobar Lhan will each hold one third of

the shares and they will be the directors of the company. +lease advise them on the advantagesof a limited company as compared with a partnership-

. ith regard to obtaining finance for further business expansion7. ith regard to the liability of shareholders in the event of the winding up of the company.

$. 9he ational ssociation of +hoto @xporter /+@ re>uires additional storage space. =tadvertises for tenders to erect new storage facilities. =t receives eight tenders and the 7oarddecides to accept the tender of =mam 7a'hsh B &. 9he &hief @xecutives, 8r. 3hehbaO &hathais re>uired to accept and to notify the others that they were unsuccessful 8r. &hatha as'ed hissecretary to type up the letters. mista'e is made in the typing and the name of another tenderer,7adam Cul B &. is replace for =mam 7a'hsh B &. 9he letter is signed and delivered to 7adamCul B &. 9he next day when the 8.4. of 7adam Cul B &. phoned 8r. &hatha to discuss some

details of the wor' to be done 8r. &hatha realiOed that there had been a mista'e. =s there abinding contract between +@ and 7adam Cul B

%. n 1 3eptember 7aber contracted for the purchase of $0 computers from 3ardar. 9he contractstated that the computers were to be delivered on $ 3eptember. 4espite the fact that 7aberpersistently pressed 3ardar for delivery, the computers had still not been delivered by the end ofthe month while 3ardar had repeatedly assured 7aber that the computers would be delivered bythe first of ctober at the latest. 7aber then told 3ardar that if the computes were not delivered bythe $ ctober, the contract would be terminated. 3ardar did not attempt to deliver until 10


26/31

ctober. 6aving bought other computes on the % ctober, 7aber refused to ta'e delivery. as hejustified in refusing the delivery# 4iscuss.

(. 8r. 7rown agreed to sell his computer of a specified mar' and model to 8r. Creen for ?s.!0,000. hen 8r. Creen went to him to pay him the price and pic' up the computer he found that7rown had already sold such computer to someone else. 6e threaten to sue 7rown for the

7reach of &ontract but later on the same day he bought a computer of the same mar', model andspecification for a ?s. 20,000. 3hould he sue 7rown for the 7reach of &ontract# =s there anybenefit for him in bringing such action against 7rown#

&8+H;3?F QH@39=). rite only the correct answer in the nswer 7oo'. 4o not reproduce the >uestions./1 +ortage ;td wishes to alter its memorandum to state that all of the companyDs shareholdersmust hold a minimum of 200 shares. &an 7rian, who currently owns 100 shares, be bound by thisalteration#/a Fes, if the alteration is done by special resolution/b Fes, if the alteration is done by ordinary resolution/c Fes, but only if he gives his written consent./d one of these

/2 Cama offers to sell his care to 8aja for ?s. $$0,000EA, 8aja accepts the offer but states thathe would buy it for ?s. $00,000EA. 9he statement of 8aja is-/a conditional acceptance/b counter offer/c ?ejection to the offer/d one of these

/! Lala Lhan agreed to supply onion to 3odagar Lhan six months after the date of contract andLala Lhan agreed to pay for such supply. 9wo months after the conclusion of the contract LalaLhan refused to supply. =n such case which of the following facts is correct#/a 3odagar Lhan cannot sue Lala Lhan until the expiry of six months after the date of thecontract.

/b 3odagar Lhan cannot sue Lala Lhan any time because he has not yet paid him for theonions./c 3odagar Lhan can validly sue Lala Lhan any time after he refused to supply onions./d one of these

/ 3harafat 6ussain offererd to sell his tonga to 3ada>at 6ussain for ?s. !$,000EA but 3ada>at6ussain did not answer and nearby standing Liramat 6ussain accepted the offer. Liramat6ussainDs answer to the offer is-/a conditional acceptance/b counter offer/c n offer/d one of these

/$ 9he appointment of a person of the minor age as an agent is-/a 5oid/b 5alid/c 5oidable/d one of these

/% 9hird party insurance is an insurance for-/a 8otor vehiclesD accidents/b =njuries in war time


27/31

/c one of these

/( bill of exchange involves/a ne party/b 9hree parties/c 8ore than three parties

/d one of these

/) bearer instrument may be negotiated by-/a 8ere delivery/b @ndorsement and delivery/c 4elivery with a separate written contract./d one of these

/* n order instrument may be negotiated by-/a 8ere delivery/b @ndorsement and delivery/c 4elivery with a separate written contract./d one of these

/10 partnership business is unlawful if the number of partners in it is-/a 8ore than seven/b 8ore than ten/c 8ore than twenty/d one of these

/11 9he relation between the partners of a firm is of-/a @mployer and @mployee/b 9rustee and 7eneficiary/c +rincipal and gent/d one of these

/12 n unregistered contract of partnership is-/a 5alid/b 5oid/c Hnenforceable/d one of these

/1! decision made by arbitrators is called/a 3entence/b ward/c Iudgment/d one of these

/1 n empire in an arbitration reference is appointed when the number of arbitrators is-

/a dd/b @ven/c one of these

/1$ 9he minimum number of members in a +rivate ;imited &ompany is-/a 3even/b 9wo/c Gifty/d one of these


28/31

/1% +ublic ;imited &ompany must have-/a 9en directors/b 3even directors/c 9wo directors/d one of these

/1( hich of the following rights a company cannot have-/a ?ight to own immovable property/b ?ight to vote in the general elections of the state./c ?ight of sue in its own name./d one of these

/1) 9he maximum age for a person who concludes a contract of sale of goods is-/a 9wenty years/b 3ixteen years/c @ighteen years/d one of these

/1* =t is essential for the validity of a contract of sale of goods that the price must be paid./a =n advance/b 9hree days after the delivery/c one of these

/20 =f the delivery of goods under a contract of sale of goods is late./a 9he buyer is not bound to accept the delivery./b 9he buyer is bound to accept the delivery./c one of these

G@4@?; +H7;=& 3@?5=&@ &88=33=&8+@9=9=5@ @J8=9= G? ?@&?H=98@9 9 +393= 7+3 M 1( H4@? 96@ G@4@?; C5@?8@9, 2001.

8@?&9=;@ ;

9=8@ ;;@4- 96?@@ 6H?3 8J=8H8 8?L3-100

9@- ttempt G=5@ >uestions in all, including >uestion o. ) which is &8+H;3?F. ll>uestions carry @QH; mar's.

1. 4iscuss the importance of free consent in contrasts. hen do you thin', consent is said to beVnot freeD, and what effect will such a consent have on contracts#

2. 4efine in detail remedies for breach of a contract given to a seller against the buyer in the 3aleof Coods ct.

!. 4efine partnership, and discuss the essential elements of partnership in detail.

. hat do you understand by the words VnegotiationD and VnegotiableD# 9here are special rules ofevidence retailing to negotiable instruments. hat are they#


29/31

$. hat is arbitration# 6ow an arbitrator is appointed, and what are his powers under therbitration ct#

%. @xplain the nature of a contract of insurance. 4istinguish between life insurance and other'inds of insurances.

(. rite short notes on the following-/a 3urety/b arranties/c 7ailment/d ward

&8+H;3?F QH@39=

). rite only the correct answer in the nswer 7oo'. 4o not reproduce the >uestions.

/1 proposes, by a letter sent by post, to sell his house to 7. 9he acceptance of the proposal iscomplete-/a the moment the letter is posted by /b the moment the letter is received by 7./c one of these

/2 =n order to convert a proposal into a promise, the acceptance must be-/a &onditional/b Hnconditional/c one of these

/! voidable contract may be turned by the option of the party at a loss into-/a void contract/b valid contract/c one of these

/ 9he maximum number of members in a private company is-/a %0/b $0/c Hnlimited

/$ 9he maximum number of partners in a firm is-/a 1)/b 2$/c one of these

/% 9he &ompanies rdinance, 1*)-

/a pplies to a &ooperative 3ociety./b =nsurance &ompanies/c one of these

/( &ompany is subsidiary of another &ompany-/a =f the other company holds more than $0R of its voting shares/b ;ess than $0R of its voting shares/c one of these


30/31

/) + appoints as his agent. is not a person of full age-/a 9he appointment of is not valid/b 9he appointment of is valid/c one of these

/* 3tatutory meeting of a &ompany is held-

/a nce in a life time of the &ompany/b @very year/c one of these

/10 +ublication of +rospectus is compulsory by-/a +rivate &ompany/b Girm/c one of these

/11 ward is a decision given by-/a &ourt/b n arbitrator/c one of these

/12 lends some ornaments to 7 to be used in a marriage. 9he transaction is-/a bailment/b pledge/c one of these

/1! partner may be expelled from a partnership by-/a majority of partners/b rders of the &ourt/c one of these

/1 9hird +arty =nsurance is an =nsurance ?elating to-/a 8otor vehiclesD accidents

/b =njuries due to war/c one of these

/1$ 7ill of @xchange has-/a 9wo parties/b 9hree parties/c one of these

/1% minor-/a &an ma'e, draw, accept, or indorse a negotiable instrument/b &annot ma'e, draw, accept, or indorse a negotiable instrument/c one of these

/1( void as well as an illegal contract is-/a 3imilar in effect/b ot familiar in effect/c one of these

/1) =n the &ompanies rdinance, 1*), there are-/a Linds of shares/b o 'inds of shares/c one of these


31/31

/1* ;i'e a che>ue, a bill of exchange may be-/a &rossed/b &annot be crossed/c one of these

/20 n executor consideration ta'es the form of-/a promise to be performed in future/b ?elates to the present act made for a promise/c one of these

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