Additional Reading Material-LEB 2023

LEGAL ENVIRONMENT OF BUSINESS- N3MBA03

Question Bank- 2023

No Unit 1 BL Marks CO PO
1 What are the essentials of a valid contract? 1 3 1 1,4,6
2 Who can perform the contract? When can the contract be 2 7 1 1,4,6
performed by a third party?
3 Critically examine the ‘Time is of the Essence’ clause in contracts. 4 10 1 1,4,6
4 Explain with examples what is meant by ‘consensus ad idem’. 3 10 1 1,4,6
5 “No Consideration No Contract” – Do you agree this statement. 4 10 1 1,4,6
6 State any four essential elements of a Contract. 3 10 1 1,4,6
7 List any four types of Contract. 1 7 1 1,4,6
8 ‘Mere silence does not amount to fraud’ – Examine. 5 10 1 1,4,6
9 Compare and contrast Misrepresentation and Fraud. 3 10 1 1,4,6
10 “Minor is liable to pay for the necessaries supplied to him” – 5 10 1 1,4,6
Justify this statement.
11 List the requirements of a valid offer? 1 3 1 1,4,6
12 List the requirements of a valid Acceptance? 1 3 1 1,4,6
13 State the ways an offer may be terminated? 2 7 1 1,4,6
14 Define Fraud? 1 3 1 1,4,6
15 What is undue influence? 1 3 1 1,4,6
16 Define Coercion? 1 3 1 1,4,6
17 When a discharge is called a discharge by performance? 2 7 1 1,4,6
18 How can a contract be discharged by operation of law? 2 7 1 1,4,6
19 What is Lapse of time in Contract law? 1 3 1 1,4,6
20 When can a contract be discharged by the impossibility of 3 7 1 1,4,6
Performance?
21 What is the most common remedy for breach of contract? 1 7 1 1,4,6
22 What is a breach of contract? 1 7 1 1,4,6
23 Whether a promise to pay time barred bet is valid and if so under 3 7 1 1,4,6
what conditions?
24 Discuss the following terms as used in Indian Contract Act 1872:- 3 10 1 1,4,6
(1) Proposal (2) Acceptance (3) Promise (4) Promiser and
Promisee (5) Consideration (6) Agreement.
25 What conditions are necessary for converting a proposal into 5 10 1 1,4,6
promise, a promise into an agreement and an agreement into a
contract? Illustrate your answer.
26 A sends a price list of goods to B on the latter's request. B places 3 10 1 1,4,6
an order on dealer A for goods specified in the price list on prices
quoted in the said list. A did not execute the order for supply. What
is B's remedy if any?
27 A offered to buy B's bunglow "ML" for Rs. 6000 and B's agent 4 10 1 1,4,6
cabled to B, "Have had offer `ML' Rs. 6,000". The agent received
the reply "Won't accept less than Rs. 10,000". A accepted the price
of Rs. 10,000 and confirmed his acceptance by sending letter to the
agent. But B sold the bunglow to some one else for a higher price.
A sues B for specific performance of contract. Can `A' succeed?
28 `A' makes an offer to `B' by letter. Immediately on receiving the 4 10 1 1,4,6
letter `B' writes letter rejecting the offer. However `B' changed his
mind subsequently and before `A' could receive the letter of
rejection, B telephoned his acceptance. Is acceptance complete to
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 Additional Reading Material-LEB 2023
create a valid contract ?
29 "Acceptance is to an offer what a lighted match is to a train of gun 4 10 1 1,4,6
powder." Explain with reference to its condition and incidents as
dealt within English and Indian law.
30 Critically discuss the Consequence of absence of consent and free 5 10 1 1,4,6
consent.
31 Discuss the contractual liability of Minor under Indian Contract 4 10 1 1,4,6
Act.
32 Distinguish between fraud and misrepresentation. 2 10 1 1,4,6
Unit 2
1 Explain with examples the different types of agents under the 2 7 2 1,4
Indian Contract Act, 1872?
2 Discuss meaning of bailment, express or implied bailment, 3 10 2 1,4
essentials of bailment.
3 Give four differences between bailment and pledge 2 3 2 1,4
4 Define "Pledge", "pawnor", and "pawnee"? 1 3 2 1,4
5 Who is a Sub-agent? 1 3 2 1,4
6 Define Contract of Bailment 1 3 2 1,4
7 Short note on Bailor and Bailee. 1 7 2 1,4
8 State any two rights of Pawnor and Pawnee. 1 7 2 1,4
9 Is a minor can be employed as an agent? Comment your answer. 2 7 2 1,4
10 List the mode of creation of Agency. 1 10 2 1,4
11 Differentiate Sub-Agent with Substituted Agent. 2 3 2 1,4
12 “Pledge and Hypothecation are same” – Justify. 3 7 2 1,4
13 Illustrate the essential elements of bailment. What are the duties 5 7 2 1,4
& rights of Finder of lost goods as a Bailee?
14 Explain in detail the various rights and duties of Pawnor and 4 7 2 1,4
Pawnee.
15 Classify the different kinds of Agent 2 7 2 1,4
16 Determine the modes in which agency can be terminated by the 4 7 2 1,4
Operation of law.
17 Discuss the rights and duties of Agent and Principal. 4 7 2 1,4
18 Describe the circumstances in which irrevocable of agency arise 2 10 2 1,4
With illustrations.
19 Agency doesn’t require consideration – Comment 4 10 2 1,4
20 `A' gave some gold to a goldsmith named B. The goldsmith put the 4 10 2 1,4
gold in his safe and posted a watchman outside the room. In a raid
by dacoits on the house of goldsmith, along with other property,
A's gold was also taken away by decoits. Is B liable to pay `A' the
value of gold?
21 Discuss the position of a person who find goods belonging to 4 10 2 1,4
another and takes them into his custody.
22 Discuss the relationship of Principal and Agent inter- se. 4 10 2 1,4
23 Discuss the rights and liabilities of an undisclosed principal of an 4 10 2 1,4
agent and the third party to the contract, in case of such
undisclosed principal
24 A) Explain the expression "Agent" and "Principal". What are 2 10 2 1,4
salient features of Agency?
(B) What are the different kinds of agents
25 Can principal be held bound by the obligation incurred on his 10 2 1,4
behalf by his agent to the third person?
Unit 3

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 Additional Reading Material-LEB 2023
1 What is meant by Material Alternation? 1 1 3 1,4,6
2 Discuss briefly the historical background of law of Negotiable 2 7 3 1,4,6
Instruments in India.
3 State the special rules for cheque and drafts 1 7 3 1,4,6
4 Explain the nature and requisites of negotiable instruments Act 1 10 3 1,4,6
1881.
5 Shyam says Crossing of cheques is the same as a cancelled 4 7 3 1,4,6
cheque? Is it correct? What does “Crossing” of cheques mean?
6 Shyam wants to pay Rs 5000 to Archana’s account. What type of 4 7 3 1,4,6
cheque should he issue and why?
7 Shyam wants to withdraw 5000 Rs from his Fixed Deposit with 4 7 3 1,4,6
Bajaj Finance, an NBFC. He wants to issue a self-cheque. Can he
do so and why?
8 Define and explain `Promissory Note'. What are its essential 2 7 3 1,4,6
features?
9 Define and explain "Bill of Exchange". What are the essential 2 7 3 1,4,6
requisites of Bill of Exchange? What is the distinction between
Promissory Note and Bill of Exchange?
10 What is a cheque? What is the difference between cheque and bill 2 10 3 1,4,6
of exchange?
11 What do you understand by the term "indorsement of negotiable 2 7 3 1,4,6
instrument"?
12 What are usual parties to a bill of exchange and which are 2 7 3 1,4,6
liabilities of the drawer and acceptor of a bill?
13 What are the circumstances under which a banker is justified or 2 10 3 1,4,6
bound to dishonour cheques or in what cases can a banker refuse to
pay cheque drawn on him by a customer?
14 "The payee or the holder of negotiable instrument has certain 4 10 3 1,4,6
formalities to observe before he can claim payment. Presentment is
first of such formalities". Discuss.
15 What are "Estoppels" as created in Negotiable Instruments Act 1 7 3 1,4,6
16 Briefly explain the advantages of Insurance 2 7 3 1,4,6
17 State the principles of Insurance. 1 7 3 1,4,6
18 Explain the types of insurance. 1 7 3 1,4,6
19 Differentiate between an agreement to sell and an agreement of 2 7 3 1,4,6
sale along with necessary statutory references.
20 What is a contract of sale of goods? Discuss the essential 2 7 3 1,4,6
characteristics of a contract of sale of goods?
21 What is insurance? 1 3 3 1,4,6
22 Describe the basic principles of insurance. 2 3 3 1,4,6
23 Write a short note on principle of indemnity. 1 7 3 1,4,6
24 Who can be appointed as an arbitrator? What may be the number 3 7 3 1,4,6
of arbitrators so to be appointed by parties?
25 What rules of Procedure is to be adopted by the Arbitral Tribunal? 2 7 3 1,4,6
26 Explain the Term “Goods”? Write down classification of Goods 2 3 1,4,6
27 What is the Difference between Sale and Agreement to Sell 2 7 1,4,6
28 Write a difference between Future Goods and Contingent Goods. 2 7 1,4,6
29 Who is called as Unpaid Seller? What are his rights? 1 7 1,4,6
30
Unit 4
1 What is a government company? 1 1 4 1,4,6
2 Enumerate and explain the rights, duties and responsibilities 3 7 4 1,4,6

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 Additional Reading Material-LEB 2023
of the promoters towards the company and third parties
3 State the characteristic feature of a company. 1 7 4 1,4,6
4 Explain the contents of the articles of association and how 2 7 4 1,4,6
the articles could be altered on ordinary business and special
business.
5 State the importance of name clause and how it could be changed 2 10 4 1,4,6
by the company itself and also on the direction from the central
government.
6 Write a note on Directorship with specific focus on an 2 10 4 1,4,6
“Independent Director”.
7 Distinguish between the following : 2 10 4 1,4,6
(a) 'Company' and 'limited liability partnership'.
(b) 'Preference shares' and 'equity shares'.
(c) 'Memorandum of association' and 'articles of association'.
(d) 'Red-herring prospectus' and 'abridged prospectus'.
8 Distinguish between “Partnership Firm” and “Company”. 2 10 4 1,4,6
9 Write a short note on disadvantages of company form of 1 7 4 1,4,6
organization.
10 The Common Seal of a company has to be affixed on all letters and 4 7 4 1,4,6
documents of the company. Comment
11 A shareholder who holds 99% of the share capital of a company 4 7 4 1,4,6
can be held responsible for the acts of the company. Comment
12 A company incorporated under the Companies Act, 2013 being an 4 7 4 1,4,6
artificial person, is not entitled to sue a natural person or to sue
another company incorporated under the Companies Act, 2013.
Comment
13 A company incorporated under the Companies Act, 2013 never 4 10 4 1,4,6
dies except when it is wound-up as per law. Comment
14 In an Annual general meeting of Amar Private Limited, all the 4 10 4 1,4,6
shareholders were killed in a bomb blast. State, whether the
company is still in existence?
15 What EGM? When it could be conducted? 2 7 4 1,4,6
16 Describe the contents of two statutory documents of a company. 2 10 4 1,4,6
17 Briefly state the provisions of the Companies Act, 1956, 2 10 4 1,4,6
regarding the mode of appointment of the directors of a
Company.
18 What are the four pillars of IBC code? 1 10 4 1,4,6
19 Who can apply for insolvency under IBC? 1 3 4 1,4,6
20 How is competition law related to IPR? 1 7 4 1,4,6
21 What are the grounds for refusal of registration of a trade mark? 3 7 4 1,4,6
22 What is the benefit of registration of geographical indications? 1 7 4 1,4,6
23 Distinguish between the following:- 2 10 4 1,4,6
(a) Trade mark and property mark
(b) Artistic work and Sound recording
(c) Novelty and Inventiveness
(d) Authorised user and Producer
24 What is meant by Intellectual Property? Why does intellectual 1 10 4 4,6
property need to be promoted and protected?
25 Directors are not only agents but also in some sense trustees 2 10 4 4,6
of the Company. Discuss.
26 What are the different kinds of meetings of the shareholders of a 2 10 4 4,6
Company? When and how these meetings held?
27 What are the requisites of a valid meeting? 1 3 4 4,6

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 Additional Reading Material-LEB 2023
28 Explain the Doctrine of Ultra Vires with its effects 2 7 4 4,6
29 Define a prospectus. Explain the red herring prospectus, abridged 1 7 4 4,6
prospectus and shelf prospectus.
30 Explain the duties and liabilities of a Director. 2 10 4 4,6
Unit 5 1,4,6
1 What are the different types of consumer redressal forums? 2 7 5 1,4,6
2 What is Partnership? What are the Characteristics of Partnership? 1 7 5 1,4,6
3 What are the kinds of Partners? 1 3 5 1,4,6
4 What is the procedure for Registration of Partnership Firm 2 7 5 1,4,6
5 What are the Duties of Partners? 2 7 5 1,4,6
6 Distinction between partnership, limited liability partnership and 2 7 5 1,4,6
company
7 Discuss the position of minor in partnership under Indian 3 10 5 1,4,6
Partnership Act, 1932 with the help of relevant case law.
8 Under what circumstances is a firm deemed to be automatically 4 10 5 1,4,6
dissolved under Indian Partnership Act?
9 Is registration of a partnership firm compulsory under Indian 2 10 5 1,4,6
Partnership Act, 1932? State the effects of non-registration
10 What are the reasons for replacement of FERA with FEMA? 1 3 5 1,4,6
11 What are the penalties for violation of FEMA? 1 3 5 1,4,6
12 Who regulates the foreign exchange market? How they regulate? 1 3 5 1,4,6
13 List the highlights of FEMA 1999. 1 3 5 1,4,6
14 Describe the term authorized person under FEMA. 1 3 5 1,4,6
15 Explain the term capital account transaction under FEMA. 1 7 5 1,4,6
16 Write a short note on the Basic rights of consumers 1 7 5 1,4,6
17 What amounts to ‘defect in goods’ under the Consumer Protection 1 10 5 1,4,6
Act, 2019?
18 Write a short note on Complainant under the Consumer Protection 1 10 5 1,4,6
Act, 2019
19 Write an essay on the objectives of the Consumer Protection, Act, 2 10 5 1,4,6
2019 and its salient features.
20 Discuss in detail about the Jurisdiction and powers of National 4 10 5 1,4,6
Commission and the procedure it is required to follow

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