Professional Documents
Culture Documents
Q-1 Select the best option and fill in the appropriate box on the answer sheet
IV- What is the amount of care a bailee is required to take in respect of goods bailed to him:
(a) Extraordinary (b) Ordinary (c) Reasonable (d) None
VI- X agrees not to carry on a similar business with Y for two years in consideration of Rs.50,000/- as
good will. The agreement is:
(a) Void due to restraint of trade (b) Valid (c) Against X's fundamental rights (d) None
XV- Which one of the following clauses is considered vital in a memorandam of association of a public
company:
(a) Name clause (b) Object clause (c) Capital clause (d) None
XVII-Which of the following actions an unpaid seller cannot take against a buyer:
(a) Exercise the right og lien (b) Stoppage of goods in transit (c) Sale (d) None
XIX- X is involved in some business; he transfers his share without the consent of all its members. He is
working in:
(a) A company (b) A firm (c) A private company (d) None
XX- At times a contract is discharged under the doctrine of frustration. Does it mean:
(a) Discharge by performance (b) Discharge by agreement (c) Discharge by breach (d) None
Q-2 X agreed in writing to sell 120 acres of land to Y for Rs. 3 Million. The purchase price was to be paid
in three installments: a first of 1.6 million Rs., followed in twelve months by a second of Rs. 0.7 Million
and then, after further twelve months by a final payment of Rs. 0.7 million. It was further provided that
'on the occasion of each completion a propotionate part of theland shall be released forthwirh to Y'. The
parties provided no machinary for the allocation of the propotionate parts. What is the legal effect of
the agreement? Support your answer with arguments discussing the question of law involved.
Q-3 Ahmad who was admitted in a hospital, was required to undergo a surgery, before his operation he
agreed to sell his house which was already listed for sale, to his doctor for Rs. 9.7 million. The market
price of the house was Rs. 10 million. After the successful operation Ahmad rescinded the agreement
alleging "Undue influence" by the doctor. Can he succeed? Explain keeping in view the ingredients of
undue influence as laid down in the Contract Act, 1872.
Q-4 JK goes to the show room of Nasir a car dealer, and after looking at various models, he agrees to buy
a Honda Civic car. The car breaks down four times during the first month and JK wished to know
whether he has any remedies against Nasir. Advise him in the light of Sales of Goods Act, 1930.
Q-5 Describe the general principle in determining the existence of partnership? Compare the principle
with the rule laid down in Cox v. Hickman.
Q-6 R signed a document in these terms 'in consideration of the loan of Rs. 1000/- from W; I, R agree to
repay W the sum of Rs.1000/- on or before December 31, 2007". Whether the above document can be
treated as a promissionary note? Give the specifics of a promissionary note.
Q-7 Explain the status and significance of Articles of Association of a company. The articles of a private
company provided that 'every member who intends to transfer shares shall inform the Directors who
will take the said shares ... at a fair price'. The plaintiff held 725 fully paid up shares of Rs.10/- each and
he asked the directors to buy them but they refused. Were the directors bound to take the shares? Give
reasons?
Q-8 Explain the essentials of a valid award. A ship called Tanais was chartered for a voyage between
Canada and Italy. A clause in the charter party provided for disputes to be settled in London. A dispute
arouse and the owners of the Tanais asked the charterers to agree on an arbitrator but the charterers
would not concur in an appointment. Suggest solution