Business Law

Test No 5 ICAP REVISION

Chapter:1,14,15
Total marks: 30
Time Allowed : 60 minutes
Tutor: Syed Atif Abidi

Question # 1
List down the main topics/areas covered under the following parts of the Constitution of
the Islamic Republic of Pakistan 1973:
(a) Part III - The Federation of Pakistan. (02)
(b) Part VI - Finance, Property, Contracts and Suits. (02)

Question # 2
(a) Briefly describe how delegated legislation takes place and also describe how control
is exercised over delegated legislation. (04)
(b) What is the process of legislation in case of a money bill when National Assembly is in session?
(02)

Question # 3
Sarwat owes Rs. 500,000 to Zain. The amount is payable on 11 August 2016. Sarwat in tends to issue a negotiable
instrument to Zain in satisfaction of her debt.
Under the provisions of the Negotiable Instruments Act, 1881 advise Sarwat about the type of negotiable instrument which
may be issued to Zain, assuming that Sarwat does not want to involve a third party in making the payment. Also prepare a
draft of the said instrument.
(You may make assumptions wherever you consider necessary) (04)

Question # 4
Based on the provisions of Negotiable Instruments Act, 1881 briefly explain whether the
following are promissory notes or not.
(i) I promise to pay Rahat on demand Rs. 5,000 at my convenience.
(ii) On demand, I promise to pay Sonu or order Rs. 5,000, for value received.
(iii) I promise to pay Adil or order Rs. 5,000 and 500 shares of Sigma Limited.
(iv) I promise to pay Mahi or order Rs. 5,000 with interest calculated at quarterly rests.
(v) I promise to pay you or your successors on demand Rs. 10,000.
(vi) I promise to pay Rafi or order Rs. 10,000 seven days after Salik’s death.
(vii) I am liable to pay Ahmad Rs. 5,000.
(07)
Question # 5
State the conditions when a cheque crossed generally is considered to be paid by a banker in due course or out of due
course. Describe the rights of the banker when payment of a cheque crossed generally is made in due course and the
consequences of payment out of due course under the Negotiable Instruments Act, 1881.
(04)
Question # 6
Mark the correct answer:-

1 In a civil case of Talal vs Kashif where a case is brought to the civil court by Mr. Talal who is filing a
suit against Mr. Kashif. State the legal position
(a) Mr. Talal is plaintiff and Mr. Kashif is the defendant
(b) Mr. Talal is defendant and Mr. Kashif is the plaintiff
(c) Mr. Talal is accused and Mr. Kashif is the complainant
(d) Mr. Talal is complainant and Mr. Kashif is the accused
2. All statutes passed by the National Assembly are also approved by the Senate before proceeding to
the President for his assent with the exception of
(a) Treasury bill
(b) Money bill
(c) Social security bill
(d) Industrial relation bill

3. ‘A’ signs the instrument in the following manner. State the instrument which cannot be considered
as promissory note.
(a) I promise to pay B or order Rs.500.
(b) I acknowledge myself to be indebted to B for Rs. 1,000 to be paid on demand for value received
(c) I promise to pay B Rs. 10,000 after three months.
(d) I promise to pay B Rs. 500 seven days after my marriage with C

4. Choose the incorrect statement in relation to crossing and payment of cheques:

(a) A collecting/receiving banker is one who receives the payment of a crossed cheque on behalf
of his customer.
(b) The protection to the collecting banker is not available even if it credits customer’s account
with the amount of the cheque before receiving payment thereof.
(c) Where the cheque is crossed specially to more than one banker, except when crossed to an
agent for collection, the banker to whom it is drawn shall refuse payment thereof.
(d) The addition of the words not negotiable does not restrict the further transferability of the
cheque.

5. Mr. A sign the instruments in the following terms

1. “I promise to pay Mr. B or order Rs. 500/-“
2. “I acknowledged myself to be indebted to Mr. B in Rs. 1000/- to be paid on demand, for value
received”.
3. Mr. A promise to pay Mr. B sum of Rs. 500/- on telephone.
4. “I am liable to pay to Mr. B Rs. 500/-“
Identify the correct one:
(a) 1 & 2
(b) 1 & 3
(c) 3 & 4
(d) 2 & 4