BUSINESS & COMMERCIAL LAW

Time allowed - 2 hours

Total marks - 100

[N.B. – The figures in the margin indicate full marks. Questions must be answered in English. Examiner will take
account of the quality of language and of the way in which the answers are presented. Different parts, if any, of
the same question must be answered in one place in order of sequence.]
Marks

1. (a) What are the advantages of Partnership over Company? List them down. 8
(b) A & B agree to share profits of the business carried out by them but do not state anything in the Deed
about sharing of losses. Is it a valid partnership? 3

2. (a) What is Estoppel? Give example. 5

(b) P sold to Q 700 bags of Chinese groundnuts identified by marks and lying in a named warehouse.
Unknown to P, 100 bags had been stolen at the time of the sale. P tendered delivery of 600 bags. What
are the effects of stolen of goods in this case? 3

3. What is forged cheque? Under which circumstances a banker must refuse to pay cheque? 2+7

4. (a) “Agreement is a very wide term”-explain. Discuss the essential elements of a valid contract. 9
(b) Mr. Roy, a businessman, left some goods at Mr. Saha’s house by mistake. Mr. Saha treated the goods as
his own. He is bound to pay for the goods to Mr. Roy. Explain the nature of contract under the Contract
Act. 3

5. (a) What is cross offer? Under which circumstances does an offer lapse? 2+7
(b) A proposes by a letter sent by post to sell his house to B. B accepts the proposal by a letter sent by post.
When can B revoke this acceptance? 2

6. (a) What constitutes sufficient consideration? 3

(b) By his will C’s husband expressed the wish that his widow should have the use of his house during her
life. After death, his executors (the defendants), allowed her to do so (a) in accordance with her husband’s
wishes and (b) in return for her undertaking to pay a rent of Tk.10 per annum. They later said that their
promise to let her occupy the house was not supported by consideration. – Do you agree? 2

7. (a) Max offers to sell his house to Alisha for an intended sum of Tk.14.00 million. By mistake he makes an
offer in writing of Tk.10.00 million. In this case what will be the legal situation? 5
(b) Distinguish between fraud and misrepresentation. 6

8. (a) What are the rules in the case of lost negotiable instruments? 8
(b) B issued a cheque for Tk.1,25,000 in favour of S. B had sufficient amount in his account with the Bank.
The cheque was not presented within reasonable time to the Bank for payment and the Bank in the
meantime, became insolvent. Decide, under the provisions of the Negotiable Instrument Act, 1881
whether S can recover the money from B. 5

9. (a) What is arbitration agreement? Who can refer disputes to arbitration? 2+8
(b) What are the grounds for challenge and disclosure of certain circumstances by an Arbitrator? 5
(c) List down the General Responsibilities of the arbitral tribunal. 5

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