SMVEC CENTRE OF LEGAL EDUCATION
END SEMESTER EXAMINATIONS, AUGUST 2024
B.A.L.L.B/II SEMESTER
LAW OF CONTRACTS -11 (SPECIAL CONTRACTS)(LLB22CT06)
Duration 3 hrs. Max.Marks-75
ANSWER KEY
Q.No Marks
PART-A (3X5=15 Marks)
Answer any Three Questions
Q.1 “A” delivers a horse to “B”. When “B” goes with the horse he was arrested by the police on
the charge of keeping stolen property as the horse belongs to “C”. can “B” sue “A” and if so on
What basis?
Facts – Charged for stolen property
Issue – Can B sue A .
Judgment- Yes B can sue A.
Q.2 “A” gives authority to “B” to sell A’s land, and to pay himself, out of the proceeds, the debts
due to him from “A”. can “A” revoke the authority given to “B”?
Facts- A appoints B to sell land and pay him back
Issue- Can A revoke authority given to B.
Judgment- Yes A can revoke at anytime authority given to him under contract of agency.
Q.3 Shalini who owes Rs.2,00,000/- (Two lakhs) to Shrinidhi appoints her as an agent to sell her
landed Property at Madurai. Shrinidhi has also been instructed to revoke the agreement entered
between them? Discuss.
Facts- shalini appoints shrinidhi as agent to sell the property.
Issue- Can shalini revoke contract of agency with shrinidhi.
Judgment- Yes shalini can revoke contract of agency with Shrinidhi.
Q.4‘Y’ Purchased certain Wrist Watch from an auctioner on the basis of the description given by
the auctioner that it belonged to the 10th century. After purchasing, ‘Y’ did found that it actually
belonged to 18th century. ‘Y’ approaches the court. Will he succeed in the case?
Facts- Wrist watch is of 10th century said by auctioner.
Issue- Wrist watch is from 18th century
Judgment- He can sue the principal and not the auctioner as he is agent and not liable.
PART-B (3X10=30 Marks)
Answer any Three Questions
Q.5 Define Pledge. When a pledge created by non- owners is valid.
As per Section 172 of Indian Contract Act,1872 - Pledge is a contract where the person deposits
an article or good with pawnor or pledgor for money as security for the repayment of loan or
performance of a promise by pawnee or pledge –there is no transfer of ownership in the case of
the pledge- in exceptional circumstances the pledge has right to sell the movable goods or
property that have been pledged- under pledge an non owner like mercantile agent can pledge
with permission from the owner.
Q 6. What are the duties of agent towards his Principal?
Duty to skill and care- Duty to good conduct- Duty to keep and render accounts- Duty to act only
as authorized- Duty to obey- Duty not to delegate – Duty not to deal on his own account in the
business of agency- Duty to communicate principal in case of difficulty.
Q7. Explain rights and liabilities of partners.
Definition for Partnership Act, 1932- its characteristics- Right to take part in the conduct of the
business- Right to be consulted- Right to access the books- Right to share profits- Liability of a
partner for the act of an firm- Liability of a partner for wrong committed by an another partner-
Liability for loss- Liability of an incoming partner.
Q8. Distinguish between a sub-agent and substituted agent. State also the modes in which the
relationship of an agent and Principal be terminated?
A sub agent is a person employed by and acting under the control of original agent but the
substituted agent is a person who is named by the agent for performing such a part of the
business of agency and appointed directly by principal- Termination of agency- in the contract of
agency an agency can be terminated upon either party serving on the written notice of a specified
duration.
Q9. Define bailment and enumerate the rights and duties of bailee.
Rights and duties of an Bailee in a bailment contract is by receive compensation due to losses
suffered due to defects in the goods- has right to receive back the expenses made by him for the
bailed goods- The duty of bailee to return back the goods without demand on the
accomplishment of the purpose or expiration of the period, he is duty bound to loss, destruction,
deterioration, damages of goods even without negligence.
PART-C (6X5=30 Marks)
Answer any Six Questions
Q10. Rights of Surety.
Right against the creditor
Right against the Principal debtor
Right against co-surities
Q11. Implied Indemnity.
An relationship that arises not from an written agreement but from more circumstances or the
conduct of the parties involved- Indemnity implied by fact- Indemnity implied by law.
Q12. Bailee’s lien.
General lien
Particular lien
(He has right to lien but no right to sell)
Q13. Agency by ratification.
Agency by ratification arises for an act which has already been done in his name and on his
behalf by another person, who in fact considers him as an agent in good faith.
Q14. Caveat emptor.
Let the buyer be aware- the buyer is responsible for any defects in the products – it is his duty to
check the nature and quality of the product.
Q15. Kaliaperumal Vs Visalatchi.
Gave old jewels to gold smith- kept key of jewel box with herself- one day box was stolen- she
said it is contract of bailment- court refused by saying possession not completely handed over so
it is not an contract of bailment.
Q16. Kinds of Agents.
Factors
Auctioners
Mercantile Agent
Delcradare Agent
Q17.Distinction between Sale and Bailment.
Sale is handing over the title, enjoyment and ownership but whereas Bailment is handing over
possession for some purpose and not ownership and once purpose completed the property should
be returned back to owner.
