EAST WEST UNIVERSITY

COURSE: MBA & EMBA (MBA 505 & EMBA 505)

SUBJECT: BUSINESS LAW AND ETHICS
SEMESTER: Fall 2020. INSTRUCTOR: Dr. Khaled H Chowdhury, Bar-at-Law

ONLINE EXAMINATION

TIME: 1 hour and 20 minutes TOTAL MARKS: 20

Part A:

Answer all questions by stating whether each proposition is TRUE or FALSE. (20x0.5 = 10 marks)

1. The Appellate Division is a court of original jurisdiction.

2. The same judge may sit for civil and criminal cases at the District Court.
3. A contract which ceases to be enforceable by law becomes voidable when it ceases to be
enforceable.
4. Persuasion does not affect free consent.

5. X, intending to deceive Y, falsely represents that every year an average of 200, 000 gallons of
petrol are being sold at his petrol pump, thereby induces Y to buy the pump. The contract thus
becomes void.

6. B, a banker grants a loan at a time of stringency only on condition that A, the borrower agrees
to pay an unusually high rate of interest. The transaction is an ordinary business transaction and
not induced by undue influence.
7. All agreements made without consideration are void.
8. In unilateral contracts acceptance often takes place by way of performance without the need for
communication.
9. ABC Shipping Lines Ltd enters into a contract with Xodiac Ltd promising to deliver cargo from
Chittagong to Singapore. Due to Covid-19 pandemic the cost of carriage becomes unduly
expensive. ABC Ltd is thereby be excused by law from delivering the cargo.
10. The doctrine of force majeure is expressly provided for in the Bangladesh Contract Act.
11. M agrees to sell N "three hundred metric tons of Crown Brand cement at a price to be fixed by
O." The agreement is valid.
12. 'Postal rule' of acceptance has no applicability under the Contract Laws of Bangladesh.
13. Performance of contracts by third parties which has been accepted by the promisee cannot then
be enforced against the promisor in case of executed contracts.
14. When a principal has notice of an agent’s want of skill, he cannot be liable for the agent’s acts to
the third party.
15. Acts done in good faith can protect an agent even if that causes loss to third parties.
16. Consideration is not essential in formation of agency.
17. An agent who is liable for misconduct loses his total right of remuneration from the principal.
18. A engages B to carry out a usual contract with C, B omits to ensure a clause protecting A in case
of a loss to A. In case of subsequent loss, B is bound to make good the loss to A.
 19. H instructs I to sell his goods and I then employs an auctioneer M without checking his
credibility. M becomes insolvent. I is responsible to H for the proceeds lost.
20. Damages for losses of unusual nature can be recoverable if it was within the contemplation of
the parties at the time of the contract.

Part B: Answer any 10 questions (10x1 = 10 marks)

1. A and B are parties to a sales contract where part of a force majeure clause says that “parties may be
excused from performance on giving adequate and prompt notice in writing due to an Act of God….” .
The contract was entered into on 1 st of February this year in Dhaka. Now on 15 th of May B gives notice to
A pleading force majeure seeking excuse from delivery of the goods due to ongoing pandemic. Can B
succeed ?

2. C and D are parties to a sales contract which was entered into on 1 st of March this year in Dhaka. The
contract does not have a force majeure clause. Now on 15th of June D gives notice to C seeking excuse
from delivery of the goods due to ongoing pandemic. Can D succeed?

3. What is a contract and what is an agreement as defined in the Contract Act ?

4. What is the general rule for revocation of a proposal?

6. What is 'free consent' within the meaning of Contract Act? Give an illustration.

7. What are the consequences of breach of contract?

8. Under what principles damages for breach of contract are awarded under the Contract Act?

9. What is meant by agency by ratification?

10. Explain the nature of an agent's authority under the Contract Act.

11. Discuss the principle of principal undisclosed. Give an illustration.

12. Explain the duty standard of duty of an agent while selecting a sub-agent. Give an illustration.

13. In what ways an agency may be terminated.

14. What is the consequence of false representation by an agent towards a third party as to his
authority?

15. What can an agent do in an emergency?

END OF THE PAPER