B.COM.

/ II
BUSINESS LAW
TIME : 3 HOURS M.M. : 100
Section A
1. (a) “An agreement enforceable at law is a contract.” Explain. 10
(b) Distinguish between void agreement and voidable contracts. 10

2. (a) Define consideration. What are its leagal rules? 10

(b) Distinguish between a contract of indemnity and a contract of guarantee. 10

3. (a) Explain the rules regarding transfer of ownership from seller to the buyer. 10
(b) Distinguish between a condition and a warranty. 10

4. (a) Explain the true test of partnership. 10

(b) On what grounds can a court order dissolution of a partnership firm? 10

5. (a) Explain the characteristics of a negotiable instruments. 10

(b) Distinguish between a bill of exchange and a promissory note. 10
Section B
Banking Law and Practice
6. (a) Define a customer. What are the obligations of a banker towards his customer? 10
(b) When must a banker refuse payment of a cheque. 10

7. (a) What precautions should a banker take while opening and operating the account of a major?
10
(b) What are the general principles of lending by a bank? 10

8. (a) Why is crossing done on a cheque? What is the effect of not negotiable crossing? 10
(b) Explain briefly the various kinds of endorsements. 10

9. (a) Define a negotiable instrument. What are its presumptions? 10

(b) Distinguish between a cheque and a bill of exchange. 10

10. Write short notes on any two of the following: 10, 10

(a) Cash credit and overdraft;
(b) Clayton’s Rule;
(c) Holder in due course.
Section C
Company Law
11. (a) “A company is a separate entity distinct from its members.” What are its exceptions? 10
(b) What is allotment? What restrictions have been imposed on allotment of shares? 10

12. (a) Distinguish between Memorandum and Articles of Association. 10

(b) “A company can alter its articles without any limitations.” If not, what are the restrictions?10

13. (a) What is annual general meeting? What business is transacted at such a meeting? 10
 (b) Distinguish between ordinary resolution and special resolution giving examples. 10

14. (a) What is doctrine of indoor management? What are its exceptions? 10
(b) On what grounds can compulsory winding up be ordered? 10
15. Write notes on any two of the following:
(a) Statement in lieu of prospectus;
(b) Depository system;
(c) Powers of directors. 10,10