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2ND YEAR B.COM
BUSINESS LAW
Important questions
One Wightage QUS
1. Define contract.
An agreement enforceable by law is contract
2. What is meant by void ab initio?
A person is incapable of entering a contract is known as
void ab initio
3. Define agreement
Every promise or every set of promises forming
consideration for each other is an agreement.
4. What is promise ?
a firm agreement to perform an act, refrain from acting or
make a payment or delivery. In contract law, if the parties
exchange promises, each promise is "consideration" (a
valuable item) for the other promise.
5. Define consideration.
Consideration means something in return in every
contract each agreement must supported by
consideration, when are party agrees to give something or
give up something .He must be benefited by the other
party .This concept of benefit is called consideration.
6. What is quasi contract ?
Means certain relations resembling those of contract. A
contract to be enforceable must have certain essential
elements like offer, acceptance
7. What is illegal agreement?
Illegal agreements are agreements to do an act prohibited
by law or made punishable by law in India
8. What you mean by consensus ad idem ?
Consensus ad idem means that the parties to the
agreement must have agreed about the subject matter of
the agreement in the same sense and the same time.
9. What is an offer ?
An offer (proposal) is an expression of will or intention by
one person to another person to do or abstain from doing
anything.
10. What do you meant by general offer ?
When an offer is to the whole world (general public) it's
called general offer
11. What is privity of contract ?
The relation between the parties in a contract which
entitles them to sue each other but prevents a third party
from doing so.
12. What is meant by Nudum pactum ?
An agreement or promise that is made without
consideration hence enforceable
13. Who is minor?
Minor is a person who has not completed 18 year age
14. Define consent
Two or more person are said to consent when they agree
up on the same thing in the same sense
15. What is meant by coercion
When a person obtain the consent of the other party
force or under fear caused by threads of body violence
and impermanent he said to use coercion
16. does a threat to commit suicide amounts to coercion?
give reason.
Committing or threatening to commit any act prohibited
by IPC.
unlawfully detaining or threatening to detain the
property of another to his prejudice
17. Define contingent contract
A contingent contract is a contract to do or not to do
something if some event Collateral to such contract does
or does not happen
18. What is duress
Duress means threat by one person to another with a
view to concent to the contract
19. Define mistake
Mistake is a miss conception. It is wrongly belief about
something
20. What do you understand by recession of contract
When contract is broken by one party the other party can
resent the contract and refuse and performance
obligation. Recession of contract means anualement of
contract
21. What is novation
When a new contract is substituted in the place of old one
by the mean of agreement between the same parties its
called novation
22. Define doctrine of frustration
It means premature termination of the contract due to the
change of circumstances which are beyond the contract of
parties
23. What is nominal damage
In case of breach of contract some time the aggrieved
party is entitled only to nominal amount like one rupees
as damage. These kind of damage is nominal damage
24. What is the principal of quantum merit
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Quantum merit means as much as earned or as much as is
meruited. When a person as done some work under a
contract and the other party refuse the contract or some
event happened which make the further performance of
contract is impossible then the party who as performed
the work can claim remuneration for the work he has
already done this called the doctrine of quantum meruit
25. What is qusi contract? Give example
Means certain relations resembling those of contract. A
contract to be enforceable must have certain essential
elements like offer, acceptance
26. What is void contract
A contract not enforceable by law
27. Discharge of contract
Discharge of contract means termination of contract.
When an obligation created by a contract comes to an end
contract said to be discharge or terminated
28. Unilateral mistake
When one of the parties to make mistake is known as
unilteral mistake
29. Bilateral mistake
When a both parties under a mistake is known as bilateral
mistake
30. Voidable agreement
Voidable agreement is valid agreement but it is rejected
the aggrieved party this type of agreement is known as
voidable agreement
31. Who is unsound mind
A persons of mind one who he suffering from temporary
mendel derangement, idiots, lunatics, drunken person an
agreement by person of unsound mind is void
32. Counter offer
Counter offer is acceptance in the from of an offer. In
other words a counter offer is rejecting the original offer
and making a new offer. Then new offer is the counter
offer
33. anticipatory breach of contract
The aggrived party breach the contract before the due
date
34. wager
Wager is an agreement by which money is payable by one
person to another on the happening or non happening of
a future certain event
35. What is bailment
Bailment means delivery of goods from one person to
another person for some purpose. On the accomplishment
of such purpose, the person receiving the goods returns or
otherwise disposes of them as per the instructions of the
person delivering them.
36. Gratuitous Bailment.
In this case, the bailor gives goods to the bailee without
any reward.
37. Define contract of indemnity
A contract of indemnity is a contract by which one party
to save the other from loss caused to him by the promisor
himself or by the conduct of any other person
38. . Lien
Right to retain the property of another untill all the debt
or claim is paid.
39. Who is surety
Surety is the guarantee of the debts of one party by
another. A surety is the organization or person that
assumes the responsibility of paying the debt in case the
debtor policy defaults or is unable to make the payments.
40. Pledge
Pledge also known as 'Pawan'.
The bailment of goods as security for payment of a debt or
performance of a promise is called 'pledge'. here bailor
(the person delivering goods) is called the 'pawnor or
'pledger' and the Bailee (person to whom goods are
delivered )is called 'pledgee'or 'pawnee'.
41. Define ratification
Ratification means subsequent acceptance by the
principal in respect of an act done by the agent without
authority
42. Who is an agent
Agent is a person employed to do any act for another or to
represent another in dealing with third person.
43. Who is mercantile agent
A mercantile agent is a person having authority either to
sell goods or to cosign goods or to raise money on the
security of goods
44. Special agent
A special agent is an agent is appointed only for a
particular purpose and having and he has only authority
to act in a particular transaction
45. Del-credere agent
Del-credere is an agent who on receipt an extra
commission, guarantees his principal the performance of
the contract by the third parties. If the third party the
price or cause damage to the principle, del-credere agent
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must be pay compensation to the principle. His extra
commission for the guarantee is known as del-credere
commission.
46. Implied agency
Agency agreement may be inferred from the conduct of
the parties or relationship between them.
47. Agency of estoppel
Estoppel means prevent a person from denying a fact.
Where a person, by his conduct or words spoken or
written, willfully leads another to believe that a certain
person is acting as his agent, he is estopped later on from
denying the truth of the fact that such a person is dealing
as his agent.
48. Agency holding out
The principal is bound by the act of agent if on an earlier
occasion he has made others believe that other person
doing some act on his behalf is doing with his authority.
49. Substituted agent
Substituted agent is a person appointed by the agent to act
for the principal in the business of the agency with the
knowledge and consent of the principal.
50. Define contract of agency
The contract by an agent is appointed is called agency.
The person who appoints the agent is called principal. An
agent is a person employed to do any act for another or to
represent another in dealing with third person
51. Unilateral contract
When the performance of the contract is to be done
only by one of the parties it's called uniliteral
contract
52. Executory contract
Executory contract is one in which the parties have
to perform the promise the promises after the date of
contract
53. Counter offer
Counter offer means rejecting the original offer and
making a new offer . the new offer is counter offer
54. Standing offer and tender
An offer for a continuous supply of a certain articles
at a certain rite over a definite period is called a
standing offer
55. Past consideration
When consideration of one party was given before
the date or promise it is called past consideration
56. Present consideration
Consideration which move at same time with
promise is called present consideration or executed
consideration
57. Future consideration
When consideration move to future date is called
future consideration
58. Illegal or unlawful agreement
Illegal agreement is agreement to do an act prohibited
by law or made punishable by law in India
59. Frustration
It means premature termination of the contract due
to the change of circumstances which are beyond the
contract of parties
60. Termination or discharge of contract
Discharge of contract means termination of contract
.when an obligation created by a contract comes to an
end contract said to be discharged or terminated
61. Quantum meruit
Quantum meruit means as much as earned or as
much as is meruite\. It is only an obligation created
by law. It is not a contractual remedy
Such obligation arises and a person can claim
payment in the following cases
When work as been done or goods supplied without
any contract
When the original contract has been terminated by
breach of contract by one party
When work has been done and accepted under a void
agreement
62. Injunction: injunction is order of the court directing
the party who commits breach of contract either to
do or not to do something. It is usually given in
cases of anticipatory breach of contract
63. Actual breach of contract :actual breach of contract
during the performance of the contract or at the time
of performance ,one party fails or refuses to perform
his promise under the contract
64. Anticipatory breach of contract :when a party to a
contract refused to perform it obligation be fort due
date of performance its called Anticipatory breach of
contract
65. damages : he amount of compensation awarded to
the aggrieved party for breach of contract is called
damages
66. OFFER { section (a) }
“When one person significance to another is
willingness to do or abstain from doing any think
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with a view to obtain the assent of that other to such
act or abstinence he is said to make a proposal”
67. General offer: when an offer is made to the general
public it called general offer
68. ACCEPTANCE
When the person to whom the offer is made signifies
his assent thereto, the proposal is said to be accepted.
A proposal when accepted, becomes a promise
69. Past consideration
When consideration of one party was given before
the date or promise it is called past consideration
70. Present consideration
Consideration which move at same time with
promise is called present consideration or executed
consideration
71. Future consideration
When consideration move to future date is called
future consideration
72. Accord and satisfaction
Accord means the subsequent agreement to accept
different thinks or performance than what is due
under the hold contract and give up the original
performance .
The satisfaction means actual full fill of subsequent
agreement
73. damages
the amount of compensation awarded to the
aggrieved party for breach of contract is called
damages
74. Nominal damages: some time the aggrieved party is
entitled only to a nominal amount like one rupee as
damages these kind of damages are known as nominal
damages
75. Special damage: are awarded not only for the actual
loss but also for loss profits
76. Universal agent
An universal agent is a person whose authority is
unlimited and he can do anything for his principal
which is legal as well as agreeable to the law of land.
77. Commercial agent (Mercantile agent )
A Mercantile agent is a person having authority
either to sell goods or to consign goods or to raise
money on the security of goods. The following are
different types of Mercantile agent.
78. Special agent
A special agent is appointed only for a particular
purpose and he has only authority to act in a
particular transaction.
79. Sub agent
A sub-agent is a person appointed by the agent and
acting under the original agent in the business of
agency. (Sec 191)
80. Specific offer: when an offer is made to a definite
person or body of person it is called specific offer
81. Define contract of sale
Section 4 of the Sale of Goods Act defines a
contract of sale as follows: "A Contract of Saleof
Goods is a contract whereby the seller transfers or
agrees to transfer the property ingoods to the
buyer for a price.There may be a contract of sale
between one part owner andanother"
82. What do you mean by warranty
Warranty Section 12 (3) defines Warranty as follows.
"A warranty is a stipulation collateral to the main
purpose of the contract, the breach of which
gives rise to a claim for damages but not to a right to
reject the goods and treat the contract
as repudiated".
Meaning :-A warranty is a stipulation which is
collateral to the main purpose of the contract.
It is not of such vital importance as a condition. If
there is breach of a warranty the aggrieved
party can only claim damages and it has no right to
treat the contract as repudiated.
83. What are the conditions to be satisfied to become a
holder in due course
Holder in Due Course is a legal term to describe the
person who has received a neinstrument in good faith
and is unaware of any prior claim, or that there is a
defectof the person who negotiated it.
A person can be called a holder in due course, if he
satisfies the following conditioa)He became possessor
of the instrument for consideration (ie, by paying its
full vab)He became the holder of the instrument
before its maturity. (ie, he must be the hthe
instrument before it became payable)
c)He became the holder of the instrument without
being aware of any defect in theperson from whom
he received it.
d) He obtained the instrument 'complete and regular
on the face of it.
84. what is a stale cheque
A cheque can be referred to as a stale dated
cheque if its validity has expired. In otherwords,
the stale cheque is one that was drawn long ago
and not presented for paymentwithin a reasonable
time( i.e. three months from the date mentioned in
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the cheque.)15.What do you mean by right of
lien?Right to retain the property of another untill all
the debt orclaim is paid
85. What is internet
The Internet is the global system of interconnected
computer networks that uses the Internetprotocol
suite to communicate between networks and
devices.In other words, the internet isa globally
connected network system facilitating world wide
communication and access todata resources
through a vast collection of private, public,
business, academic andgovernment networks
86. what is contract carriage
A contract of carriage is a contract between a
carrier of goods or passengers and theconsignor,
consignee, or passenger. This document is used
to define the rights, duties, andliabilities of parties
to the contract.A contract of carriage defines the
legal responsibilities ofthe carrier and the user
87. name any two form of bill of lading
Clean bill of lading,Dirty bill of lading,Through bill
of lading,Received bill of lading and On board bill
of lading.
88. who are all the three parties in bill of exchange
A bill of exchange may involve the following
parties :-
1. Drawer :- This is the person who writes and
signs the bill.
2. Drawee :-This is the person on whom the bill
is drawn.
3. Payee :- This is the person to whom the
money stated in the bill is payable. He may
bethe drawer or any other person to whom the
bill has been endorsed.
4. Acceptor :- This is the person who accepts
the bill. In practice, the drawee is the
acceptorbut a third person may accept a bill on
behalf of the drawee.
5. Holder :- This is the person who is in the
possession of the bill, after being drawn.
He/Shemay be the original payee, endorsee
and bearer in case of a bearer bill.
6. Endorser :-The person, either the drawer or
holder, who endorses the bill to any one
bysigning on the back of it is called an
endorser.
7. Endorsee :- He/She is the person in whose
favor the bill is endorsed
89. define digital signature
A digital signature is a mathematical scheme for
verifying the authenticity of digitalmessages or
documents.In other words, A digital signature
guarantees the authenticity of anelectronic
document or message in digital communication
and uses encryption techniques toprovide proof of
original and unmodified documentation. Digital
signatures are used in e-commerce, software
distribution, financial transactions and other
situations that rely onforgery or tampering
detection techniques
Digital signature Sec [ 2 (1 ) (p ) ] means
authentication of any electronic record by
asubscriber by means of an electronic method
or procedure in accordance with the
provisionsof section 3.
90. what is primage
It is additional freight just like surcharge on freight
originally collected for the captain of theship.Now-
a-days it is treated as income of the shipping
company.In other words, Primage is acommercial
term signifying originally a small customary
payment over and above the freight made tothe
master of the ship for his care and trouble. It is
now generally included in the freight, as
anadditional percentage
91. what is consumerism
The term consideration is defined in Sec 2 (d) of
the Indian contract Act as "When at thedesire of
the promisor, the promisee or any other person
has done or abstained from doing,or promises to
do or to abstain from doing something, such act,
abstinence or promise iscalled a consideration for
the promise".
92. define contract of agency
Section of 182 of the Contract Act,1872 defines
the term Agent and Principal as; “An agentis a
person employed to do any act for another or to
represent another in dealings with thirdpersons.
The person for whom such act is completed, or
who is so represented, is knownthe Principal.”The
contract which creates the connection of principal
and agent is known as“Agency or agency
agreement”.
93. what do you mean by marked cheque
A marked cheque is cheque that the bank on
which it is drawn has marked 'good for
payment'.Marking is the writing on a cheque by the
drawee banker that it would be honoured when it
isduly presented for payment.
94. what do you mean by negotiable instrument
A negotiable instrument may be defined as "a
document which entitles a person to a sum of
moneyand which is transferable by mere delivery
or by endorsement and delivery."
95. what is unfair trade practice
An unfair trade practice means a trade practice,
which, for the purpose of promoting any sale, use
orsupply of any goods or services, adopts unfair
method, or unfair or deceptive practice.The term
“unfair trade practice” describes the use of
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deceptive, fraudulent, or unethical methods togain
business advantage or to cause injury to a
consumer. Unfair trade practices are
consideredunlawful under the Consumer
Protection Ac
96. define contract of indemnity
To indemnify means to compensate or make good
the loss. A contract of indemnity refers topromise
made by one person to make good any loss or
damage another has incurred or may incur
byacting at his request or for his benefit. The
object of a contract of indemnity is essentially to
protectthe promisee against anticipated loss.
97. define electronic record
Electronic records are information or data files,
created and stored in digitized form through the
useof computers and applications software.In
other words, any combination of text, graphics,
data,audio, pictorial or other information
representation in digital form that is created,
modified,maintained, archived, retrieved or
distributed by a computer system
98. what is continuing guarantee
A guarantee which applies to a series of transactions
is called a continuing guarantee.
99. explain the agency by holding out
Agency by holding out occurs due to some prior
positive act on the part of the principal.The
principal is bound by the acts of the agent if, on
earlier occasion, he made other persons to
believe that the person doing the same acts on his
behalf is doing with authority.
Where a person permits another by a long course of
conduct to pledge his credit for certain
purposes, he is bound by the act of such person in
pledging his credit for similar purposes,
though in some cases without the previous
permission of his master. This is a case of
agency by holding out, which is an implied agency
100. define consumer dispute
Section 2(e) “consumer dispute” means a dispute
where the person against whom a
complaint has been made, denies or disputes the
allegations contained in the complaint.
101. what is bill of lading
Bill of Lading is an important document issued by the
shipping company or its agent. It may
be defined as "a document wherein the shipping
company gives its official receipt for goods
shipped in one of its vessels and at the same time
contract to carry them at the port of
destination.
102. what is the crossing of cheque
There should not be any crossing and overwriting on
the cheque.
103. what is endorsement
The order and crossed cheques should be transferred
by the proper endorsement and
delivery, otherwise, the amount of cheque will not be
paid by the bank.
104. what is noting
When a promissory note or bill of exchange has
been dishonoured due to non acceptance or
nonpayment, the holder of such instrument may
cause such dishonour to be noted by notary
publicwhich is called as “Noting”
105. what is unfair trade
An unfair trade practice means a trade practice,
which, for the purpose of promoting any sale, use
orsupply of any goods or services, adopts unfair
method, or unfair or deceptive practice.
The term “unfair trade practice” describes the use of
deceptive, fraudulent, or unethical methods to
gain business advantage or to cause injury to a
consumer. Unfair trade practices are considered
unlawful under the Consumer Protection Act.
106. What is protest
A protest is a certificate issued by the Notary
public attesting that the bill or the note has
beendishonoured.
The act of obtaining a protest is known as
protesting.
TWO Wightage QUS
1. Duties of bailor and bailee
bailment
Bailment means delivery of goods from one person to
another person for some purpose. On the
accomplishment of such purpose, the person
receiving the goods returns or otherwise disposes of
them as per the instructions of the person delivering
them.
Duties of bailor
1. Duty to disclose known defects:
The bailor should disclose all the defects in the
goods which are known to him.
2. Duty to bear extraordinary expenses of bailment:
Bailor should pay the Bailee the extra ordinary
expense incurred for the purpose bailment.
3. Duty to indemnify Bailee:
A bailor is responsible to the Bailee for any loss
due to his imperfect title in the goods bailed.
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4. To receive back the goods:
Bailor should receive back the goods after the
purpose or time is over.
Duties of Bailee
1. To take reasonable care of goods :
The bailee is bound to take care of the goods
bailed to him. The degree of care to be taken by
the Bailee is that of a man of ordinary prudence.
2. Not to mix the bailed goods :
The Bailee should keep the goods of bailor
seperate from his own goods and he should not
mix the goods bailed with his own goods.
3. Not to make any unauthorised use :
The Bailee must use the goods strictly for the
purpose for which they have been bailed to him.
4. Not to set up adverse title:
The Bailee is prevented from denying the bailor's
title.It is the duty of the Bailee to return the
goods only to the bailor even though any third
person is claiming title over them.
5. To return the goods :
Bailee should return the goods to the Bailee after
the purpose is over or time is expired.
6. Return increase or profits:
A bailee shall return the goods along with any
increase or profit accruing to the goods to the
bailor, in the absence of any contract to the
contrary.
2. Types of bailment
A. Gratuitous Bailment.
In this case, the bailor gives goods to the bailee
without any reward.
B. Non-gratuitous Bailment.
In this case the bailor delivers the goods to bailee
for consideration.
C. Bailment for the benefit of the bailor.
In this type of bailment, the bailor gives goods to
bailee for his own cause and good. It is for the
exclusive benefit of the bailor.
D. Bailment for the exclusive benefit of the bailee.
this case the bailee takes possession of the goods
for his own cause and good. The bailor gels
nothing. But the bailee is rewarded by the
possession of the goods.
E. Bailment for benefit of bailor and bailee.
In this type, both the bailor and bailee benefits.
3. Bailment termination
• When the period of time is over bailment is
terminated:If the bailment is for a particular period,
bailment terminated when the period is over
• When the bailee make unauthorized use of
goods:The bailee make unauthorized use of goods
the bailment is terminated. The bailee must use the
strictly for the purpose for which they have been
bailed to him
• When the particular purpose is over bailment is
terminated:After the purpose the bailment is
terminated and return the goods to bailor
• When the bailor and bailee die bailment is
terminated
• Bailment terminated when the subject matter is
distorted
• The gratuitous bailment can be terminated any
time
4. Lien Right to retain the property of another untill
all the debt or claim is paid.
Type:-
A. General lien It means right to retain all the goods of
the other party until all claims of the holder are
paid eg. Bank
B. Particular lienIt means right to retain particular
goods. Until all clams on account of those goods are
paid.
C. Bailee's lien Bailee has got a right to retain goods
until he receives due remuneration for the service
given by him in respect of the goods bailed. This
known as bailee's lien
5. Right and duties of the finder of the lost goods
A person is not bound to take care of goods belonging to
another found on a road or other public place. But if he
take them in to his custody he is subject to the same
responsible as a bailee
His rights
• he can retain possession of goods against everybody
except the true owner
• he can sue for any reward offered by the ower for
the return of the goods loss. He can not sue for
experience incurred by him
The finder can sell the goods in following cases:-
A. If the owner cannot be found after the reasonable
diligence
B. When found, he refuses to pay the lawful charge
of the finder
C. If the goods are of a perishable nature
6. Essential element of bailment
A. Delivery of goods by one person to another:
It is the first essential elements of the bailment
delivery of goods by one person to another
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person. The person who deliveres the goods is
known as bailor. The person whom such goods
are delivered is known as bailee
B. Goods are delivered some purpose :
The goods are delivered bailor to bailee the bailee
have some specific purpose. He have not specific
purpose it is not a bailment.
C. When the purpose is over, goods are to be return
or otherwise disposed of according to the
direction of the bailor
7. . Discharge and termination of surety
Surety under the contract of guarantee is discharged
in the following cases:- 9.
This type of guarantee is for a single transaction
or single debit. it is extended only to a single
debt. It is also called as simple guarantee.
4) continuing Guarantee :
This type of guarantee extends to more number
of transactions. it continues until the guarantee is
revoked.
5) Fidelity guarantee :
A guarantee for the good conduct or honesty of a
person is called fidelity guarantee.
Right of surety

1) Notice of revocation in a continuing A) Right against creditor:-

guarantee(section 130) :- The notice operates to
1. Right to subrogation :-
revoke the liabilities of the surety as regards to
On payment of debt or performance of contract
transactions enter into after the notice.
the surety gets all the rights which creditor had
against the debtor.
2) By the death of the surety(section 131):- In a
2. Right to securities :-
continuing guarantee, death of the surety
If surety makes payment to creditor, surety can
operates as a revocation of a continuing
get all securities into his possession from creditor.
guarantee as per as future transactions are
3. Right of request to sue the debtor :-
concerned. The properties of the surety are liable
The surety has a right to request the creditor to
for all transactions entered into prior to the death
sue debtor in case the debtor fails to pay the debt
of the surety.
on the date.
4. Right of set-off :-
3) Variation of the contract (section 133):
If the creditor owes anything to the debtor, the
Any variance made without the consent of the
amount owed can be adjusted in the creditors
surety in the terms of the contract between the
claim against the surety.
debtor and creditor, discharge the surety for
transactions subsequent to the variance . B) Right against debtor

4) Release or discharge of the debtor (section 134) :- 1. Right to indemnity :-

surety is discharged by any contact between the
debtor and the creditor by which the debtor is
released. Surely is also released by any act or
omission of the creditor, the legal consequences
of which is the discharge of the debtor.
5) Arrangement with the debtor (section 135) If the
creditor makes a composition :
with or promises to give time to or not to sue the
debtor releases the surety.
In a contract of guarantee there is an implied
promise by the debtor to indemnify the surety.
2. Right of subrogation :-If surety makes payment
to creditor,surety gets all rights of creditor by
subrogation and from then onwards surety can
behave like a creditor.
3. Right to damand for relief:-
Before making any payment the surety can
compel the debtor to relieve him from liability
by paying off the debt.

8. Different type of guaranty A C) Right against Co-sureties

In a contract of guarantee if there are more than one

1) Restrospective Guarantee:
surety, they are called co-sureties. co-sureties are equally
When the guarantee is given for an existing debt,
liable. creditor can sue one or all. if only one surety is
it is called retrospective guarantee .
sued and he has to pay the debt then he may demand co-
sureties to contribute.
2) prospective Guarantee :
When the guarantee is given for a future debt it 10. Different between indemnity and guranty
is called prospective guarantee.
Indemnity Guranty
3) specific Guarantee : 1. There are two parties, 1. There are three parties
indemnifier and ie. Debtor, creditor and
 10
indemnified surety 2) Right of lien
An agent has also a right to retain the goods or
2. There is only one 2. There are three contract property of a principal till the payment in due is
contract received by him
3. The liability of 3. The liability of the surety 3) Right of compensation:
indemnifier is parimary is secondary In case of injury caused to agent by the negligence of
4. Loss falls on the 4. Loss is not on the surety. the principal may be compensated by the principal
indemnitier Surety can recover the debt 4) Indemnity right
5. Liability arises when the 5. Liability is not contingent An agent has a right to be indemnified against the
contingency happens. liabilities falls on him
6. It is for compensating loss 6. It is for security of 5) Right of indemnity in respect of third person
creditor Right to be indemnity in respect of injuries caused to
7. Indemnifier need not act 7. Surety acts at the request third person while doing lawful acts.
at the request of of the debtor 6) Stoppage of transit
indemnified The position of agent is that of an unpaid seller
toward his principal in the following cases
11. Right and duties of agent A. If the agent has bought goods on behalf of the
1. Duty to follow direction given : principal with his own money
Agent must conduct the business of the principal B. If he has bought goods incurring personal
according to the directions given by the principal liabilities
2. Duty to reasonable care:
Agent should work with reasonable skill and 13. Duties of the principal
diligence
3. Duty to render accounts: 1) To pay Remuneration : The principle should pay
The agent should keep true and correct accounts the agreed Remuneration to the agent
and submit the same to his principal when the 2) Duty to indemnify : principle is liable to
principal demand indemnify the agent for the consequences of all
4. Duty communicate in case of difficulty: lawful acts done by agents.
In case of difficulty the agent must communicate 3) Duty to indemnify in case of third person 's
with the principal and obtain suitable instruction injures : principle should indemnify the agent for
from him injuries caused to third person by the act of agent
5. Duty to pay over all money: 4) Compensation for injuries : principle must pay
Agent should pay all the money received after compensation to the agent for injuries caused to
the law full deduction of his remuneration and him due to the negligence of principal.
expense
6. Duty to protect the interest of the principal : 14. Different type of agent
If the principal dies or become unsound mind the
agent must take suitable steps to protect the 1) Special agent
interest of tge principal A special agent is appointed only for a particular
7. Duty not to delegate authority : purpose and he has only authority to act in a
Agent should not transfer his authority to third particular transaction.
person without the consent of principal
8. Duty not to set up adverse title : 2) General agent
Agent should not claim ownership over the General agent is an agent who has full authority to
goods of principal act in all matters relating to trade or profession.
9. Duty to disclose confidential information :
An agent not disclose any confidential 3) Universal agent
information of his principal An universal agent is a person whose authority is
10. Duty not to take any secret profit : unlimited and he can do anything for his principal
An agent shall not make any secret profit and which is legal as well as agreeable to the law of land.
shall disclose any extra profit he make to the
principal 4) Commercial agent (Mercantile agent )
A Mercantile agent is a person having authority
12. Right of an agent either to sell goods or to consign goods or to raise
money on the security of goods. The following are
1) Right to remuneration different types of Mercantile agent.
It basic right of an agent that he should receive the
remuneration of his services 5) Non-mercantile agent (Non-commercial agent)
 11
Non-mercantile agents may be estate agents who are When the performance of the contract is to be done
engaged to negotiate the sale,purchase and lease of both parties its called bilateral contract
immovable property or law agents who are engaged 3. Expressed contract
to look after the legal affairs of their principal.Ex - Express contract is one which is expressed orally or
Advocate, wife,etc. writing
4. Implied & tacit contract
15. Different types of commercial agent :- Implied contract is one which is inferred from the
conduct of the parties. Eg. Passenger getting into
a) Broker buses and taking ticket
Broker is an agent who brings a contractual 5. Executed contract
relationship between the buyer and seller. He is not Executed contract is one in which the parties have
entrusted with the possession of goods. His performed the their respective promises
commission is called brokerage. 6. Executory contract
Executory contract is one in which the parties have
b) Commission agent to perform the promise the promises after the date of
A commission agent is one who is employed to buy contract
and sell goods in return of a commission on the
sale.He may have possession of the goods or not. 17. Different between Indian law English law
Indian law English law
c) Factor Under Indian law past Under English past
A factor is an agent with whom goods are kept for consideration is valued consideration is no
sale.He can enter into a contract of sale with third consideration
parties. He can sell the goods on credit. Consideration may from Under English law
the promiser or any consideration must
d) Auctioneer other person move from the promise
An auctioneer is one who is authorised to sell goods him self
of his principal by public auction. He is the agent of Indian law do not make Under English law
the seller until the goods are auctioned or sold.After any different between formal contract do not
the sale, he becomes the agent of the buyer. He can formal contract and require any
deliver goods only on payment of the full price by the simple contract consideration
buyer Stranger to Stranger to
consideration can sue consideration cannot
e) Del-credere agent upon a contract if he if is sue
Del-credere is an agent who on receipt an extra a promise under it
commission, guarantees his principal the performance Indian law natural love Consideration must
of the contract by the third parties. of the third party and affection are good have some value in the
fails to pay the price or cause damage to the principal, consideration eyes of law
del-credere agent must pay compensation to the
principal. His extra commission for the guarantee is 18. Illegal or unlawful agreement
known as del credere commission Illegal agreement is agreement to do an act prohibited by
law or made punishable by law in India
f) Banker
Banker is the agent of his customer. The relationship Illegal agreement Void agreement
between a banker and his customer is that of debtor Illegal agreement are Void agreement are
and creditor. Banker is liable to honour the cheques agreement to do an act agreement where one or
and draft of the customer. prohibited by law more essential elements of
contact are absents
g) Power of attorney
Power of attorney is an agent appointed to execute a All illegal agreement are All void agreement need
document and do such other acts connected with it. void not illegal
In illegal agreement, all If the main agreement is
16. Classification of contract connected agreements are void, collateral agreement
1. Unilateral contract also void need not be void
When the performance of the contract is to be done Illegal agreement may be It may become illegal by
only by one of the parties it's called uniliteral valued sometime in the subsequent change of law.
contract beginning void agreement are always
2. Bilateral contract invalid
 12
19. Different between duress and coercion contract or at the time of performance ,one
Duress Coercion party fails or refuses to perform his promise
Unlawful detention of Unlawful detention of under the contract
good is not duress goods is coercion 2. Anticipatory breach of contract :when a
It can be employed only It can be employed against party to a contract refused to perform it
against the other party any person including a obligation be fort due date of performance
stranger its called Anticipatory breach of contract
It can be employed only by Coercion may be employed
the party to the contract or by any person e) By operation of law
his agent A contract may be discharged by operation of
There must be immediate Coercion need not cause law
violence immediate violence 1. By death
Duress must be against a It not be against a man of 2. Insolvency
man of ordinary strength ordinary strength
f) By lapse of time: every contract must be
20. Termination or discharge of contract performed with in specified period and it called
Discharge of contract means termination of contract the period of limitation
.when an obligation created by a contract comes to an Then the contract is not perform and the
end contract said to be discharged or terminated promise if fails to take any action with in the
period of limitation than the contract is discharge
a) By performance by laps of time
21.
b) By mutual agreement wager Contingency contract
a) Novation: when a new contract is There is mutual It is not necessary that
substituted in the place of old one by the promise there should be mutual
mean of agreement between the same promise
parties its called novation It is void It is valid
b) Alteration :it means change in one of Every wager Contingent are not wager
more of the terms of the contract agreement is in nature
c) Remission: is less than what is due under contingent in nature
the contract Party’s are interested It is not so
d) Recession: means cancellation of all or in winning or losing
some of the terms of the contract of money
e) Waiver: means abandonment of right. Future event is only Future event is only
when a party to contract gives up his determined factor collateral to the man
right under the contract agreement
f) Merger:
22. Damages: he amount of compensation awarded to the
c) By impossibility of performance aggrieved party for breach of contract is called
damages
1. Existing impossibility: means
impossibility at the time of making the A. Compensatory or ordinary damages
contract .whether the impossibility is These are damages calculates in such a way as to
known or not to the party contract is compensates or make up the actual loss suffered
void and is terminated by the aggrieved party
2. Supervening impossibility : which arises B. Nominal damages: some time the aggrieved party
subsequent to the formulation of is entitled only to a nominal amount like one
contract is known as supervening rupee as damages these kind of damages are
impossibility under English law known as nominal damages
supervening impossibility known as C. Special damage: are awarded not only for the
frustration actual loss but also for loss profits

d) By breach of contact
Means failure or refused by the parties to
perform there respective promises

1. Actual breach of contract :actual breach of

contract during the performance of the
 13
23. Different between misrepresentation and fraud
misrepresentation fraud
There is no intention to There is intention to
deceive deceive
Only remedy is recession The aggrieved party can
rescind the contract and
can also sue for damages
The promisor can insist The party who
the performance of the committed fraud has no
contact if the aggrieved such defense
party is in a position to
find out the truth an the
contact cannot be avoided
24. Agreement opposed to public policy
An agreement which is injurious to the public.
Which is against the interest of society is said to
opposed to public policy
Agreement opposed to public policy is void
Following are opposed to public policy
1. Trading with enemy :an agreement maid with
an alien enemy in time of war is illegal on the
ground of public policy
2. Agreement interfering with course justice :if use
of improper influence any kind on officer of
justice and its void
3. Agreement indenting to injure public offices
:agreement to buy or sell public offices or title
etc this agreement are unlawful and void
4. Agreement restrain of personal freedom: every
one as a right to ender to any contract
5. Agreement restring parental right: agreement
which prevents parents from there right of
guardianship of a child
6. Agreement in restring of marriage: an
agreement in restring of marriage was any
person other than minor is void .freedom to
choice in marriage
7. Agreement in restrain of trade :where the object
is interfering with the freedom of person to
carry on any law full trade or profession the said
agreement is known as agreement restraint of
trade
8. Marriage brokerage agreement: it means
agreement to pay commission for arranging a
marriage
9. Agreement is why of maintenance and
chamberty :
Maintenance
When one person agrees to help another by
money or otherwise in litigation in which he is
not himself interested ,it is called maintenance
Chamberty
Chamberty is an agreement where why one
party promise to help another in a legal
proceeding for recovering property in
consideration of such assistance the third person
will be given a share in that property so
recovered
25. OFFER { section (a) }
“When one person significance to another is
willingness to do or abstain from doing any think
with a view to obtain the assent of that other to such
act or abstinence he is said to make a proposal”
Rules regarding offer
i. Offer may be express or implied offer
express offer: is one which may be made by
word spoken or written
implied offer: is one which may be inferred from
the conduct of the parties
ii. An offer may be two an individual or to the
public at large
Offer may
Specific offer: when an offer is made to a definite
person or body of person it is called specific offer
General offer: when an offer is made to the
general public it called general offer
iii. The term of the offer must be certain
The term of an offer must be definite certain and
clear. It should not be indefinite lose or vague
iv. Mere statement of indention is not an offer
Invention to an offer is not an offer
eg: A says to B ‘wish to buy your car’ this is a
only a statement of intention and not an offer but
A says B ‘will you sell your car for Rs 10000 . it is
an offer
v. An offer must be communicated to offeree
A person cannot accept a offer unless he loss
what he has to accept an offer can be
communicated to the offeree orally by writing or
by conducting eg;
A bus running along the road for picking
passengers is an example of communication of
offer ny conduct
vi. An offer may be condition
The conditions must be clearly communicated to
the offeree
When an offer lapses
• After the stipulated period of time . if no time is
fixed, offer lapses after the expiry of reasonable
time
• On the death or insanity of the offer or before
acceptance
• By subsequent illegality
 14
• By rejection of the offer by the offeree
• By counteroffer by the offeror
• Revocation of the offer by the offeror
26. ACCEPTANCE
When the person to whom the offer is made signifies his
assent thereto, the proposal is said to be accepted. A
proposal when accepted, becomes a promise
RULES REGARDING OFFER
1. Acceptance must be made by the offeree
An offer can be accepted only by the person to whom the
offer is made and not by other
2. Acceptance must be absolute un conditional
Acceptance should correspond with all the term of the
offer
3. Acceptance may be express or impaled
When acceptance made by word ,spoken or written it is
express acceptance . if is accepted by contact it is an
implied acceptance
4. Acceptance must be communicate to the offeror
Un communicated acceptance does not result in a
contract
5. Acceptance must be made according to the prescribed
method
When the offeror prescribes particular method of
acceptance , offeree must follow that method of
acceptance
6. Acceptance must be made while the offeres in force
When the offer is revoked or lapsed, offer is said to be not
force
27. Rules regarding consideration
a) Consideration may be past, present and future :
Past consideration
When consideration of one party was given
before the date or promise it is called past
consideration
Present consideration
Consideration which move at same time
with promise is called present consideration
or executed consideration
Future consideration
When consideration move to future date is
called future consideration
b) Consideration must move at the desire the
promise : the promisee should performed its part
of the promise only at the desire of the promises
.the desire of the promise may be expressed or
implied
c) Consideration must not be vague or illusory
consideration must be real and not illusory . it
must be same value in the eyes of the law
d) Consideration must not be illegal, immoral,
opposed to public policy: consideration must be
law full .it should not be immoral and against to
the pubic
e) Consideration may move from the promisee or
any other person: under English law
consideration must move from the promisee
himself
f) Consideration need not be adequate:
consideration need not be adequate the promise.
It is not necessary that they must be full return
for the promise it may be nominal
28. Minor
A minor is one who has not completed his or her
eighteenth year of age
In two cases minor becomes a major only on the
completion of 21 year
• When a guardian is appointed for a minor by
court of law
• When the properties of the minor are taken
over by the government of management
RULES REGARDING MINORS AGREEMENT
1. A agreement by a minor is void ab initio
2. A minor can be promise or beneficiary
3. A minor is label for necessary supplied
4. A minor can be an agent
5. The minor cannot enter in to a partnership
6. An agreement by a minor being void , court will
not order specific performance
7. The principle of estoppels is not applicable to
minor .a minor is not pawned by is
misrepresentation
29. Mistake may be two type
1. Mistake of fact: if the parties are under a mistake
regarding the subject matter of contact
2. Mistake of law: if the parties to contract are
under mistake regarding the provision of law it is
called mistake of law
Mistake of act may be classifieds
1. Bilateral mistake: when a both parties under a
mistake is known as bilateral mistake
2. Unilateral mistake: when one of the parties to a
make mistake is known as unilateral mistake
30. explain asymmetric crypto system
asymmetric crypto system means a system of a secure
key pair consisting of a private key
for creating a digital signature and a public key to
verify the digital signature.In this
cryptosystem, both private key and public key are
used for encryption and decryption of data.Private
key is used for data encryption and public key is used
for data decryption.Public
 15
key is shared in the public domain and is known to
all.
31. distinguish between conditions and and warranties
Condition
Section 12(2) of the Sale of Goods Act defines the
condition as follows:- "A condition is a
stipulation essential to the main purpose of the
contract, the breach of which gives rise to a
right to treat the contract as repudiated".
So condition is a stipulation which is essential to the
main purpose of the contract. It goes to
the root of the contract. If there is a breach of a
condition, the aggrieved party can treat the
contract as repudiated.
Warranty
Warranty Section 12(3) defines Warranty as follows.
"A warranty is a stipulation collateral to the main
purpose of the contract, the breach of which
gives rise to a claim for damages but not to a right to
reject the goods and treat the contract
as repudiated". A warranty is a stipulation which is
collateral to the main purpose of the contract. It is
not of such vital importance as a condition. If there is
breach of a warranty the aggrieved party can
only claim damages and it has no right to treat the
contract as repudiated.
32. what are the conditions to be satisfied to become a
holder in due course
Holder in Due Course is a legal term to describe the
person who has received a negotiable
instrument in good faith and is unaware of any prior
claim, or that there is a defect in the title
of the person who negotiated it.
A person can be called a holder in due course, if he
satisfies the following conditions :-
a)He became possessor of the instrument for
consideration (ie, by paying its full value).
b)He became the holder of the instrument before its
maturity. (ie, he must be the holder of
the instrument before it became payable)
c)He became the holder of the instrument without
being aware of any defect in the title of the
person from whom he received it.
d) He obtained the instrument 'complete and regular
on the face of it.
33. what are the features of consumer protection Act,
1986
1) The Act aims to provide better and all round
protection to consumers.
2)In terms of geographical application,it applies to the
whole of India except the State of
Jammu and Kashmir.
3) It applies to all goods and services unless otherwise
expressly notified by the Central
Government.
4) It is a very unique and highly progressive piece of
social welfare legislation and is
considered as the magna carta of Indian consumers.
5) It provides effective safeguards to the consumers
against different types of exploitation
such as defective goods, unsatisfactory (or
deficient)services and unfair trade practices.
34. what are the various offenses as per the IT Act
1)Tampering with computer source documents (Sec
65) :-
If a person knowingly or intentionally conceals,
destroys or alters or intentionally or
knowingly causes another to conceal, destroy or alter
any computer source code used for a
computer, computer programme, computer system or
computer network, when the computer
source code is required to be kept or maintained by
law for the time being in force.
Imprisonment up to three years, or/and with fine up
to ₹200,000.
2)Hacking with computer system (66):-
If a person with the intent to cause or knowing
that he is likely to cause wrongful loss or damage to
the public or any person destroys or
deletes or alters any information residing in a
computer resource or diminishes its value or
utility or affects it injuriously by any means, commits
hack.
mprisonment up to three years, or/and with fine up
to ₹500,000.
3 )Receiving stolen computer or communication
device (66 B) :- A person receives or
retains a computer resource or communication device
which is known to be stolen or the
person has reason to believe is stolen.
Imprisonment up to three years, or/and with fine up
to ₹100,000
4 )Using password of another person(66C) :-
A person fraudulently uses the password, digital
signature or other unique identification of
another person.
Imprisonment up to three years, or/and with fine up
to ₹100,000.
5 )Cheating using computer resource (66 D) :- If a
person cheats someone using a computer
resource or communication.
Imprisonment up to three years, or/and with fine up
to ₹100,000
6 )Publishing private images of others(66 E ):-
If a person captures, transmits or publishes images of
a person's private parts without
his/her consent or knowledge.
Imprisonment up to three years, or/and with fine up
to ₹200,000
7)Acts of cyberterrorism(66F):-
 16
If a person denies access to an authorised personnel to
a computer resource, accesses a
protected system or introduces contaminants into a
system, with the intention of threatening
the unity, integrity, sovereignty or security of India,
then he commits cyberterrorism.
Imprisonment up to life.
8) Publishing information which is obscene in
electronic form (67 ) :-
If a person
publishes or transmits or causes to be published in the
electronic form, any material which is
lascivious or appeals to the prurient interest or if its
effect is such as to tend to deprave and corrupt
persons who are likely, having regard to all relevant
circumstances, to read, see or
hear the matter contained or embodied in it.
Imprisonment up to five years, or/and with fine up to
₹1,000,000.
9 )Publishing images containing sexual acts (67 A) :-
If a person publishes or transmits images containing a
sexual explicit act or conduct.
Imprisonment up to seven years, or/and with fine up
to ₹1,000,000.
10) Publishing child porn or predating children
online
(67 B) :-
If a person captures, publishes or transmits images of
a child in a sexually explicit act or
conduct. If a person induces a child into a sexual act.
A child is defined as anyone under 18.
Imprisonment up to five years, or/and with fine up to
₹1,000,000 on first conviction.
Imprisonment up to seven years, or/and with fine up
to ₹1,000,000 on second conviction.
11)Failure to maintain records
(67C) :-
Persons deemed as intermediatary (such as an ISP)
must maintain required records for
stipulated time. Failure is an offence.
Imprisonment up to three years, or/and with fine.
12)68Failure/refusal to comply with orders ( 68 ) :-
The Controller may, by order, direct a Certifying
Authority or any employee of such Authority
to take such measures or cease carrying on such
activities as specified in the order if those
are necessary to ensure compliance with the
provisions of this Act, rules or any regulations
made thereunder. Any person who fails to comply
with any such order shall be guilty of an
offence.
Imprisonment up to 2 years, or/and with fine up to
₹100,000.
13) Failure/refusal to decrypt data (69):-
If the Controller is satisfied that it is necessary or
expedient so to do in the interest of the
sovereignty or integrity of India, the security of the
State, friendly relations with foreign States
or public order or for preventing incitement to the
commission of any cognizable offence, for
reasons to be recorded in writing, by order, direct any
agency of the Government to intercept
any information transmitted through any computer
resource. The subscriber or any person in
charge of the computer resource shall, when called
upon by any agency which has been
directed, must extend all facilities and technical
assistance to decrypt the information. The
subscriber or any person who fails to assist the agency
referred is deemed to have
committed a crime.
Imprisonment up to seven years and possible fine.
14)Securing access or attempting to secure access to a
protected
system ( 70 ) :-
The appropriate Government may, by notification in
the Official Gazette, declare that any
computer, computer system or computer network to
be a protected system.
The appropriate Government may,
by order in writing, authorise the persons who are
authorised to access protected systems. If
a person who secures access or attempts to secure
access to a protected system, then he is
committing an offence.
Imprisonment up to ten years, or/and with fine.
15) Misrepresentation ( 71 ) :-
If anyone makes any misrepresentation to, or
suppresses any material fact from, the
Controller or the Certifying Authority for obtaining
any license or Digital Signature Certificate.
Imprisonment up to 2 years, or/and with fine up to
₹100,000.
35. what are the objects of central and state council
CENTRAL CONSUMER PROTECTION COUNCIL-
Section- 4 The council shall consist of
1) Minister in charge of consumer affairs in the
Central Government.
2) Such number of official and non-official members
prescribed by government.
The Central Council shall meet as and when
necessary, but at least one meeting of the
council shall be held every year.
Objects of the Council -Section - 6
Objects of the council are to protect and promote the
rights of consumers such as:
a) The right to protect against the marketing of goods
and services which are hazardous to
life and property.
b) The right to be informed about the quality,
quantity, potency, purity, standard and price of
goods or service.
c) The right to be assured, wherever possible, access
to a variety of goods and services at
competitive prices.
 17
(d) the right to be heard and to be assured that
consumers' interests will receive due
consideration at appropriate forums.
e)The right to seek redressal against the unfair trade
or restrictive trade practices or
unscrupulous exploitation of consumers.
f) Right to consumer education.
STATE COSUMER PROTECTION COUNCIL -
Section - 7
State Government may establish state consumer
protection council.The state council shall
consist of the following members.
a) Chairman, who is the minister in-charge of
consumer affairs in the state.
b) Such number of official or non-official members
prescribed by the state government.
The State Council shall meet as and when necessary
but not less than two meetings shall
be held every year.
4 wightage QUS
1. explain the exception to the provision of information
technology Act 2000
Information Technology Act is the law that deals
with cybercrime and electronic commerce in
India.This Act came into force on 17 th October
2000. According to Section 1 (2), the Act extends to
the entire country, which also includes Jammu
and Kashmir. In order to include Jammu and
Kashmir, the Act uses Article 253 of the
constitution. Further, it does not take citizenship into
account and provides extra-territorial
jurisdiction.
Section 1 (2) along with Section 75, specifies that the
Act is applicable to any offence or
contravention committed outside India as well. If the
conduct of person constituting the
offence involves a computer or a computerized
system or network located in India, then
irrespective of his/her nationality, the person is
punishable under the Act.
According to Section 1 (4) of the Information
Technology Act, 2000, the Act is not applicable
to the following documents:
1)Execution of Negotiable Instrument under
Negotiable Instruments Act, 1881, except
cheques.
2) Execution of a Power of Attorney under the
Powers of Attorney Act, 1882.
3) Creation of Trust under the Indian Trust Act, 1882.
4) Execution of a Will under the Indian Succession
Act, 1925 including any other
testamentary disposition
by whatever name called.
5) Entering into a contract for the sale of conveyance
of immovable property or any interest
in such property.
6) Any such class of documents or transactions as may
be notified by the Central
Government in the Gazette.
2. what is endorsement? explain the different types of
endorsement
Endorsement means signing at the back of the
instrument for the purpose of negotiation.In
other words, an endorsement is the process of signing
the back of a paper, thereby
imparting the rights that the signer had in the paper
to another person. The following are
different types of endorsement :-
1)Blank or general endorsement :
If the endorser signs his name only and does not
specify the name of the endorsee, the
endorsement is said to be in blank.
2)Special Endorsement : An endorsement “in full” or
a special endorsement is one where the endorser puts
his
signature on the instrument as well as writes the
name of a person to whom order the
payment is to be made.
3)Restrictive Endorsement
An endorsement is restrictive which restricts the
further negotiation of an instrument.
4. Partial Endorsement
An endorsement partial is one which allows
transferring to the endorsee a part only of the
amount payable on the instrument. This does not
operate as a negotiation of the instrument.
5.Conditional or Qualified Endorsement
Where the endorser puts his signature under such
writing which makes the transfer of title
subject to fulfilment of some conditions of the
happening of some events, it is a conditional
endorsement.
6. Sans recourse endorsement
When the endorser expressly excludes his own
liability on the negotiable instrument to the
endorsee or any subsequent holder in case of
dishonour of the instrument, the endorsement
is known as ‘sans recourse’ endorsement.
Such an endorsement is generally made by adding the
words ‘sans recourse’ or ‘without
recourse.’
7. Facultative endorsement:
When the endorser expressly gives up some of his
rights under the negotiable instrument,
the endorsement is called a ‘facultative’ endorsement.
Thus, “Pay X or order, notice of
dishonour waived” is a facultative endorsement.
 18
OTHER IMPORTANT QUESTIONS 28. what do you mean by shipowner lien
ONE WIGHTAGE
29. what are the liabilities of air carrier
1. What is agreement to sell
30. who is the drawer of bill
2. What is unascertained goods
31. what is the time of payment of wages
3. Caveat emptor
32. define wages
4. Define sale
TWO WIGHTAGE
5. What do you mean by implied conditions
1. what are essential of bill of exchange
6. Who is the factor
2. what are the exceptions to the rule of caveat
7. Rights of unpaid seller emptor

8. What are the exceptions to the rule of caveat 3. what are the points to be considered by the
emptor drawer before issued a cheque

9. Auction sale 4. discuss the manner in which the district forum

settle the consumer dispute
10. Actionable claim
5. who is subscriber under digital signature? what
11. What is goods are the duties of a subscriber

12. who is factor 6. state the circumstances which revocation of

agency is impossible
13. what do you mean by penalty
7. what are the essential of a valid acceptance
14. define promissory note
8. mention the person who are not competent to
15. what is assignment contract

16. what is a clean bill 9. explain the different kind of guarantee

17. what is an accommodation bill 10. what are the exception under the sale of goods
Act?
18. what is an ante-dated cheque
11. explain the object of consumer protection Act,
19. what is post-dated cheque 1986

20. what is banker cheque 12. state the cases in which banker may refuse to
honor a cheque
21. what are documentary bills
13. what are the objective of IT Act.
22. define data
14. what are the essential of valid pledge
23. what is private key
15. essentials of a contract of sale
24. define service
16. when does an offer come to an end
25. define consumer
17. different between indemnity and guarantee
26. what is dangerous goods
18. what are the right of unpaid seller
27. define common carrier
 19
19. define crossing. name the different kind of 6. explain the implied conditions and implied
crossing a cheque warrantees as per sale of goods Act

4 WIGHTAGE QUESTIONS 7. explain the provision of IT Act with

Electronic governance
1. what do you mean by discharge of contract?
state the various ways in which a contract
may be said to be discharged

2. how is cyber appellate tribunal established?

what are the power under the information
technology Act 2000? discuss

3. what are the essential elements of valid

contract

4. what is negotiable instruments? explain the

basic characteristics of a negotiable
instruments

5. explain the different ways in which the

relationship of agency is terminated

PREPARED BY

FIROZ FAYAZ
MUHAZ MOGAR
MUHAZ M.V
KAMAL
ASHRAF