Professional Documents
Culture Documents
Questions
1. On 1st September Mr. Green emails Mr. Brown to see whether he would like to buy his
collection of antique paintings. Mr. Brown has admired the collection for many years. Mr. Green
says that the collection is very valuable and should fetch about Rs. 200,000 at auction, but if Mr.
Brown is interested in taking the whole lot, he can have them all for Rs. 150,000. Mr. Green tells
Mr. Brown he can think about it for 7 days, but after that, Mr. Green will have to consider
alternative offers.
Mr. Brown is very excited about the possibility of acquiring the painting, so on the 3rd
September Mr. Brown phones Mr. Green to see whether he will send him an authentication
certificate for the genuineness of the paintings along with the paintings. Mr. Green says he will
consider Mr. Brown’s request.
On 4th September after consulting with the relevant experts, Mr. Green sends a fax to Mr. Brown
saying that he will provide the authentication certificate, but that the price must go up to Rs
250,000, as this reflects the cost of getting with Mr. Brown’s fax machine so the fax was not
received there.
Mr. Brown decides that he will have the paintings anyway, so on 5th September he writes a letter
to Mr. Green saying he will take the entire antique paintings. He admires the collection and
offers Mr. Green Rs. 300,000 for its. As Mr. Green has not heard from Mr. Brown, he sells the
collection to Mr. White.
The Letter from Mr. Brown arrives on the 7th September. Is there any binding contract between
Mr. Green and Mr. Brown? Why or why not?
2. Sajid instructs his agent Majid to purchase a house for no more than Rs. 90,00,000 and as he
wishes to remain anonymous, Sajid requests Majid not to disclose his identity. The vendor,
Zahid, refuses to sell for less than Rs. 95,00,000 believing that Sajid will consent on learning of
circumstances. Hence Majid signs all documentation in his own name and pays the deposit. Sajid
refuses to accept the contract on learning of the circumstances. Hence Majid signs all
documentation in his own name and pays the deposit. Sajid refuses to accept the contract entered
into by Majid.
Explain, with reasons, whether Zahid can enforce the contract against:
(a) Sajid;
(b) Majid
(c) Is Majid liable to Sajid for exceeding his authority?
3. On 12-01-2006 A contracted for the purchase of 50 computers from B. The contract stated that
the computers were to be delivered on the 12-02-2006. Despite the fact that A persistently
pressed B for delivery, the computer had still not been delivered by 28=02=2006. (B had
repeatedly assured A that computers were not delivered by 01-03-2006). A then told B that if the
computer were not delivered by the 05-03-2006, the contract would be terminated. B did not
attempt to deliver until the 10-03-2006. Having bought computers from another dealer on 06-03-
2006, A refused to take deliver. Advise A as to whether he was entitled to refuse deliver.
4. A testator, who carried on business alone by his will appointed three persons to carry on his
business for the benefit of his wife for her life. After his death his executors carried on the
business under the same name for eight years. Are the executors partners? Why or why not?
6. Choose one issue in the Company Law which seems to you to require reform. Explain why the
law is unsatisfactory and how you would improve it.
7. Under what circumstances a party to an arbitration contract can remove his artitrator?
Compulsory Question
(1) When an offer can only be accepted by the performance of the person to whom the offer is
made. Is characteristic of:
(a) bilateral contracts;
(b) unilateral contracts;
(c) implied contracts;
(d) None of these
(2) A tells B, “If you stood first in the class, I’ll pay you Rs. 5000.00. B stood first in class and A
paide him Rs. 5000.00. Which of the following is correct?
(a) A and B had a unilateral contract;
(b) A and B had an executor contract;
(c) A and B had an executed contract;
(d) None of these
(3) A offers to sell B his motorcycle at some time in the future. B accepts. Is there a valid
contract?
(a) Probably not, the terms are not definite;
(b) Probably yes;
(c) Definitely not because A failed to communicate the offer;
(d) None of these
(5) A offers to sell B his collection of rare books for Rs. 5000. Before b even has a chance to
accept, A says “Sorry, I changed my mind, no deal.” This is an example of:
(a) Revocation;
(b) Rejection;
(c) Counter offer;
(d) None of these
(6) A and B enter into a contract in which A agrees to deliver milk to a restaurant. They forget to
include a price in the agreement. A court will:
(a) refuse to enforce the agreement;
(b) select the lowest quoted price for milk and insert it into contract;
(c) determine a reasonable price and insert it into the contract;
(d) None of these
(7) A agreed to supply food for Walima to b at 1 pm. However, he could hardly supply the food
at 5 pm.
(a) B can reject the delivery;
(b) He cannot reject the delivery
(c) B must accept the delivery
(d) None of these
(8) Which of the following actions an unpaid seller cannot take against a buyer:
(a) Lien;
(b) Stoppage in transit;
(c) Sale;
(d) None of these
(9) When a partnership is found liable for a debt, which assets are first used to pay the debt?
(a) Individual assets of the partners;
(b) Personal property of the limited partners;
(c) Partnership Assests
(d) None of these
(10) A partnership involves three essential elements. Which of the following is not one of those
elements?
(a) An equal right in the management of the business;
(b) Limited liability for breach of contract;
(c) A joint ownership of the business
(d) None of these
(11) Which of the following actions requires the unanimous consent of all partners before it may
be undertaken?
(a) Hiring a new employee
(b) Purchasing new office equipment
(c) Admitting new partners
(d) None of these
(15) For the incorporation of a limited liability company filling of memorandum of association is
essential:
(a) for a public limited company only;
(b) for a private limited company, a public limited company and an unlimited company;
(c) for a public limited company only;
(d) None of these
(17) A is considering different forms of business organization for his business. For the purposes
of owning property and being a party to litigation, forms which are legal entities separate from
their owners include:
(a) Limited Partnership only;
(b) Private Limited Companies only;
(c) Both Private and Public Limited Companies;
(d) None of these
(19) An empire in an arbitration reference is appointed when the number of arbitrators is:
(a) Odd;
(b) Even;
(c) More than 10;
(d) None of these