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) How long does an offer last? 3
(b) “All Agreements are not contract” -Explain 4
(c) What do you understand by Quantum Meruit in case of Law of Contract? 4
(d) What are the rules regarding the Doctrine of Quantum Meruit. 7
(e) Zaara lived in a City Corporation house in Dhaka and received a brochure from the corporation
seeking to determine whether corporation tenants would be interested in buying their corporation
houses. Interested parties were advised to return the form attached to the brochure, which Zaara did.
As a result, the corporation sent her a letter saying that the corporation may be prepared to sell her
the house for Taka 10,000,000. The letter enclosed an application form to purchase the house which
Zaara filled out and returned.
After Zaara had sent her application, the corporation changed hands and the new corporation
reversed the policy on selling City Corporation houses. Only in cases where there had been an
exchange of contracts were treated as completed sales. Zaara sued the corporation, claiming that the
letter she had been sent by the former corporation was an offer which she had accepted at the time
when she made her formal application. 7

2. Please describe the legal status of the following cases giving appropriate argument in favor of your answer. 8
(i) Mr. A offered to sell his house to Mr. B at BDT 10.00 million. Mr. B replied offering to pay BDT 9.50
million. Mr. A refused the offer. Subsequently, Mr. B wrote to Mr. A accepting the original offer.
(ii) Mr. „A‟ offered to sell a piece of land to Mr. „B‟ at BDT 8.50 million. Mr. „B‟ replied accepting
and enclosing a Payment Order of BDT 2.50 million in favor of Mr. „A‟ and promised to pay the
balance amount in five monthly equal installments.

3. (a) In formation of a contract the consideration must be real but need not be adequate – Explain. 5
(b) Describe the situations when the object of an agreement becomes unlawful. 10

4. Give your answer against the following cases giving appropriate argument in favor of your answer in
accordance with the provisions of Sales of Goods Act, 1930 and/or any other relevant law. 6
i) Mr. A, being Mr. B‟s agent for sales of goods, induced Mr. C to buy some goods by
misrepresentation, which he was not authorized by Mr. B to make.
ii) Mr. X agrees to buy from Mr. B certain raw materials. Subsequently, it was found that the products
were damaged at the time of bargain, though neither party was aware of the fact.

5. (a) What are the procedures for registration of a Partnership Firm? Is registration of a firm mandatory? 8
(b) What are the effects or consequences of Non-registration of a firm? 3
(c) How will you differentiate a Partnership from Co-ownership and other associations. 4

6. (a) “Once a bearer instrument always a bearer instrument”. Discuss. 5

(b) What are the essential requisites of a Promissory Note? 5

7. (a) Who is a mercantile agent? 3

(b) X bought some goods from Y at a low price by an undue influence and sold those to Z. Z did not know
about the X‟s defective title. What will be the consequences if Y tries to recover the goods from Z? 5

8. (a) Under the bankruptcy act who cannot be declared as insolvent? 5

(b) Discuss different methods of arbitration. 4
(c) Which matters cannot be referred to arbitration? 4

– The End –