Contract II - Second Semester - Previous Year Question papers

Contract II

UNIT – I (Marks : 15)

1.      Explain the circumstances in which a surety can be discharged from his liability. (January 2011)

2.      What are the rights of the surety against the principal debtor, creditor and co-sureties ? (December 2012)

3.      Define ‘Pledge’. Explain the rights and duties of Pledgee. (January 2011)

4.      Define Pledge and explain the rights of Pawnee. (June 2011)

5.      Define Bailment and Pledge. When is a pledge created by non owners valid ? (June/July 2012)

6.      Define contract of guarantee. State the distinctions between contract of guarantee and contract of indemnity.   (June 2011)

7.      What is continuing Guarantee ? Explain the various modes of discharge of surety from his liability.    (January 2011)

8.      What is meant by continuing guarantee ? When and how it is revoked or terminated ? (December 2012)

9         9.      Define Contract of Guarantee. What are the effects of misrepresentation and concealment on contract of guarantee ?  Explain   (June 2013)

1         10.  Define contract of Guarantee. Explain the rights of surety.  (June/July 2012)

1         11.  Define Contract of indemnity. in what respects Indian Law differs from English law on contract of indemnity ? Explain         (June 2013)

1         12.  Define contract of Indemnity. Explain the duties of Indemnity holder. (Jan 2011)

UNIT – I (Marks : 5)

1.      Write short notes on : The surety is a favoured debtor. Discuss (December 2012)

2.      Write Short Notes on : Rights of the surety (June 2013)

3.      Write short notes on : Rights of Indemnity - holder. (December 2012)

4.      Distinction between Indemnity and Guarantee         (June 2013)

5.      ‘A’ finds a golden ring and makes reasonable efforts to discover the true owner, but could not find him. Later the finder ‘A’ sells it to ‘B’, who buys it without knowledge that ‘A’ was merely a finder. Can the true owner recover the ring from ‘B’ ? Marks : 5 (January 2011)

6.      ‘A’ hires a carriage of ‘B’. The carriage is unsafe. ‘B’ is not aware of it. ‘A’ is injured while using the carriage. Is ‘B’ liable to ‘A’ ? Will it make any difference if the bailment is gratuitous ? Decide. (January 2011)

7.      ‘A’ lends his horse for riding to “B”. “A” knows that the horse is vicious and unsafe for riding but does not disclose the same to ‘B’. ‘B’ rides the horse. “B” is thrown and injured “B” files a suit against ‘A’ to recover damages. Decide.   (June 2011)

8.      ‘A’ entrusted some books to ‘B’ for binding. ‘B’ promised to complete the work and return the same within ten days. ‘B’ failed to return the books within agreed time. Subsequently the books were burnt in an accidental fire on his premises Can A recover damages from ‘B’ for the loss of his books ? (June 2011)

9.      ‘A’ Guarantees payment to ‘B’ of the price of five sacks of floor to be delivered by ‘B’ to ‘C’ and to be paid for in a month. ‘B’ delivers five sacks floor to ‘C’. ‘C’ pays for them. After words ‘B’ delivers  four sacks of floor to ‘C’ which ‘C’ does not pay for it. What is the liability of ‘A’ ? Give reason.    (January 2011)

10.  Sharath, an old customer, went into a Restaurant for the purpose of dining there. When he entered the dining room, the waiter took his coat without being asked and hung it on a hook behind him. When Sharath rose to leave the restaurant coat was missing. Who is liable ? Decide :  (January 2011)

11.  (b) 'A' stands as a surety for the good conduct of 'B' who is employed in a Bank. ‘B’ misappropriates some moneys. The Bank excuses him without informing 'A' of 'B' is misconduct. 'B' again misappropriates Rs. 50,000. The Bank files a suit against ‘A’ on the strength of the Guarantee. Decide giving reasons. Marks : 5 (June/July 2012)

12.  A white tiger was entrusted by ‘B’ to the Railway for carriage. The cage broke by the jolts received during the journey and the tiger escaped. It killed a bullock belonging to ‘C’ and was almost immediately crushed by the engine. Discuss the liability of the Railway administration to 'B' and 'C'. (June/July 2012)

UNIT – II Marks : 15

1.      What is the ‘Test of Agency’ ? Discuss the extent of an agent’s authority. (January 2011)

2.      Explain the different modes of termination of an agency. (January 2011)

3.      Explain the circumstances in which a contract of agency is terminated. (June/July 2012)

4.      What is a contract of agency ? What are the different modes of creation of agency ? (June/July 2012)

5.      Explain the duties of an agent.    (June 2011)

6.      Who is an agent ? Explain the different modes of termination of agency. (June 2011)

7.      Explain the rights of finder of goods.  (January 2011)

8.      Define Bailment. What are the rights and duties of Bailee ? Marks : 15 (December 2012)

9.      What is Bailment ? Discuss the rights and duties of Bailor.  (January 2011)

10.  Define Bailment. What are the essential features of bailment           (June 2013)

11.  Define lien. What are the rights of a bailee in respect of lien ? (December 2012)

12.  What do you mean by Pledge ? Who can Pledge ?  Discuss   (June 2013)

UNIT – II Marks : 5

1.      Write a note on ‘Agency by Ratification’. Marks : 5 (January 2011)

2.      Write short note on “agency by ratification”. Marks : 5 (June 2011)

3.      Explain :

a.       Del Credere agent  (January 2011)

b.      Agency coupled with interest. (January 2011)

4.      Write short note on ‘Sub-agent’. (June 2011)

5.      Write short notes on: Duties of Bailee  (January 2011)

6.      Write short notes on: Pledge.  (January 2011)

7.      Write Short Notes on : Hypothecation                        (June 2013)

8.      'P' gives authority to ‘A’ to sell ‘P’ s land and to pay himself, out of the proceeds, the debt due to him from 'P'. Subsequently 'P' revokes the authority given to 'A'. Advise 'P'. Marks : 5(June/July 2012)

9.      'D' a carrier discovers that a consignment of tomatoes owned by 'E' has deteriorated badly before the destination is reached. He, therefore, sells the consignment for about a third of the market price. ‘E’ sues ‘D’ for damages. Decide. (June/July 2012)

10.  'A' lends a horse, which he knows to be vicious, to 'B'. He does not disclose the fact that the horse is vicious. The horse runs away. B is thrown and injured. Decide. Marks : 5 (December 2012)

11.  'A' lends a horse to 'B' for his own riding only. B allows C, a member of his family, to ride the horse. C rides with care, but the horse accidentally falls and is injured. Decide. (December 2012)

12.  Solve the Problem : 'A' entrusted some books to 'B' for binding. 'B' promised to complete the work and return the same within Ten days. 'B' failed to return the books within the agreed time. Subsequently the books were burnt in an accidental fire. Can 'A' recover damages for the loss from 'B' ? Decide.   (June 2013)

UNIT – III   Marks : 15

1.      Explain the consequences of dissolution of a partnership firm.  (January 2011)

2.      Discuss the different methods of dissolution of partnership firm. (June 2011)

3.      What is meant by dissolution of firm ? Explain the different grounds on which a firm is dissolved by the order of a court. (June/July 2012)

4.      Explain : (January 2011)

a.       Effects of Non-Registration of Partnership Firm. (January 2011)

b.      Implied Authority of a Partner. (January 2011)

5.      Explain the rights and duties of a partner in a partnership firm.   (June 2011)

6.      Can a minor be a partner in a partnership firm ? Explain the legal status of a minor partner in a partnership firm. Marks : 15(June/July 2012)

7.      Define ‘Agent’. Explain the different kinds of Agents. (January 2011)

8.      What are the duties of an agent ? (December 2012)

9.      Discuss the rights and duties of Agents.  (January 2011)

1         10.  Define Agency. Explain the different modes of termination of Agency.                   (June 2013)

1         11.  What is agency by Ratification ? Examine the conditions of a valid ratification with illustrations (June 2013)

12.  Discuss the rule Himself a delegate an agent shall not delegate his authority. (December 2012)

UNIT – III Marks : 5

1.      Write short note on Agent’s Right of lien.      (January 2011)

2.      Write short note on ‘Revocation of Contract of Agency’.  (January 2011)

3.      A, B and C are carrying on business in partnership under an agreement which provides that the profits will be shared by them equally, but the losses will be borne equally by A and B alone. ‘x’ a creditor of the firm sues ‘C’.  Decide whether ‘C’ is liable. (January 2011)

4.      A, B and C are partners of a partnership firm. ‘C’ who is an active partner retires without giving public notice. ‘x’ supplies the goods to the firm after C’s retirement. Advise ‘x’ as to the recovery of amount of the goods supplied. (January 2011)

5.      A, B and C are partners in a partnership business. ‘C’ retires without giving a public notice. ‘D’ an old costumer deals with the firm without notice of change. ‘D’ wants to hold ‘C’ also liable. Decide. Marks : 5 (June 2011)

6.      ‘A’ and ‘B’ agree to work together as carpenters. According to the agreement,‘A’ shall receive all profits and shall pay Rs. 5,000 per month to ‘B’ as wages. Discuss whether A and B are partners. (June 2011)

7.      A, B, C and Co. is a newly constituted firm and commences business without registration. ‘D’ having been indebted to the firm in a sum of Rs. 1 Lakh defaults to repay the debt. The firm files a suit against him for the recovery of the said sum and immediately thereafter gets itself registered. Would the firm succeed ? Would your answer differ if ‘D’ being a creditor files a suit against the unregistered firm for the recovery of a loan ? Marks : 5(June/July 2012)

8.      Three Bus companies each having ten partners combine by agreement into one firm. The firm enters into a number of contracts. Can these contracts by the new firm be enforced by or against the firm ? (June/July 2012)

9.      'X' holds, a lease from ‘Y’, terminable on 3 months notice. Z, an unauthorized person, gives a notice of termination to 'X'. Can the notice be ratified by 'Y' ? Marks : 5 (December 2012)

10.  'A' directs ‘B’ to sell his estate. ‘B’ on looking over the estate before selling it, finds a mine on the estate unknown to 'A'. 'B', informs ‘A’ that he wishes to buy the estate for himself, but conceals the discovery of the mine. 'A' allows 'B' to buy in ignorance of the existence of the mine. Decide. (December 2012)

1         11.  Solve the Problem :     'A' an agent of 'B' was authorised to sell manure, but he had no authority to give any warranty about the manure. Yet, he warranted to the buyer that the manure contained 30% of Phosphate of lime. The warranty turned out to be false. Now can the Customer file the suit against 'B' the principal ? why ? Give reasons.               (June 2013)

1          12.  'A' directs 'B', his agent to buy a certain house for him. 'B' tells 'A' that, it cannot be bought as it is already sold out, but buys the house for himself. 'A' came to know about the fraud committed by 'B'. Can 'A' compel 'B' to sell the house to himself ? Decide.        (June 2013)

UNIT – IV Marks : 15

1.      Explain in brief conditions and warranties implied by law under a contract of sale of goods. Marks : 15 (January 2011)

2.      Define ‘condition and warranty’ in a contract of sale of goods. Explain the conditions implied in a contract of sale of goods by description. When a condition is to be treated as warranty ? Marks : 15 (June/July 2012)

3.      Define Contact of Sale. State the distinctions between sale and agreement to sell.  Marks : 15 (June 2011)

4.      Explain the maxim “nemo dat quod non habet” and state the exceptions, if any. (January 2011)

5.      Who is an unpaid seller ? Discuss the rights of unpaid seller as against the goods. (June/July 2012)

6.      Explain the concept of “caveat emptor”. State the exceptions to this rule. (June 2011)

7.      Define partnership. What test you apply to determine the existence of a partnership ? Marks : 15  (January 2011)

8.      What are the advantages and disadvantages of Registration of a partnership firm ? Discuss.  (January 2011)

9.      Although sharing of profits is an essential element of partnership, it is not the sole test”. Comment. Marks : 15 (December 2012)

1           10.  What is partnership ? Explain the liability of the partners to third parties and among themselves. (June 2013)

1           11.  How Partnership firms are registered ? what are the consequences of registration and non-registration of partnership firms ?      (June 2013)

12.  What is meant by dissolution of a firm ? What are the different modes of dissolution ? (December 2012)

UNIT – IV Marks : 5

1.      Write short notes on : Implied authority of a partner.   (December 2012)

2.      Write short notes on : Goodwill of a business. (December 2012)

3.       ‘A’ agrees to purchase 10 tons of apple juice from ‘B’ on a specified date. ‘B’ crushes the apples, puts the juice ready for delivery on that specified date. ‘A’ delays to take the delivery and the juice goes putrid and has to be thrown away. Is ‘A’ liable to pay the juice ?           Marks : 5 (January 2011)

4.      ‘A’ a jeweller, delivered some jewellery to ‘B’ “On Sale or return basis”. ‘B’ pledged the jewellery with a pawn-broker, although he had not paid the price there of to ‘A’. There upon ‘A’ sues ‘B’ for sale price. Can he succeed ? (January 2011)

5.      A, B and C are joint owners of a horse. The horse is in  possession of ‘C’with the permission of A and B. They have not authorised ‘C’ to sell the horse. ‘C’ sells the horse to ‘D’ a bonafide purchaser. A and B contend that the sale is void. Decide. Marks : 5 (June 2011)

6.      ‘A’ gave a golden ring to ‘B’ on “Sale or return” basis and asked ‘B’ to return the ring within ten days in the case of non approval . ‘B’ pledged the ring with ‘C’ without informing ‘A’ of his approval to purchase the ring. When price was not paid by ‘B’. “A” filed a suit against ‘C’ to recover the ring. Decide. (June 2011)

7.      Mr. William an active partner of a ABC firm, resigned from ABC firm. Afterwards he has decided to start a New Business competing with the ABC firm. Can he do so ? Decide. (January 2011)

8.      Ajay and Vijay two doctors formed a partnership firm. Ajay one of the doctor was punished for an offence of Rape. Vijay other doctor intend for the dissolution of the firm. Can he do so ? Decide.(January 2011)

9.      'A' buys a diamond necklace from 'B', pays for it, but leaves  it in the possession of 'B'. 'B' them sells the same necklace to 'C' for a higher price. Does 'C' acquire a better title to the  necklace ? Can 'A' file a suit against 'C' for recovery of the necklace ? Marks : 5(June/July 2012)

10.  A dentist agreed to supply a set of artificial teeth and fit it into the mouth of a patient for Rs. 5,000. All the material required was wholly found by the Dentist. The Dentist delivered the dentures and received Rs. 5,000 from the Patient. Decide if the transaction is a contract for sale of goods. (June/July 2012)

1          11.  Solve the Problem : 'X' is an active partner of a firm with 'Y' and 'Z'. 'X' retires without giving a public notice. whether 'X' is liable to the creditors to a loan sanctioned after his retirement ? Decide.                       (June 2013)

1           12.  An unregistered partnership firm borrows Rs.1,00,000/- from Mr.X. The firm failed to repay it within Time. Now what can Mr.X do to recover the amount ? Advice.                    (June 2013)

UNIT – V             Marks : 15 

1.      Define ‘Hire-Purchase Agreement’ and discuss its salient features.          (January 2011)

2.      Explain the rights and obligations of the owner in an Hire-Purchase Agreement. (January 2011)

3.      Discuss the rights and obligations of hirer under the Hire Purchase agreement. (June 2011)

4.      Define Hire purchase agreement. State the distinctions between sale and hire purchase agreement. (June 2011)

5.      Discuss the rights of an unpaid seller towards the goods. (January 2011)

6.      Discuss the rights of on unpaid seller towards the goods. Marks : 15(June/July 2012)

7.      No one can transfer a better title than he himself has, Discuss the statement. (June/July 2012)

8.      Define condition and warranty. Distinguish between condition and warranties. (December 2012)

9.      In a contract of sale when does the property in the goods pass from the seller to the buyer ? Discuss. (December 2012)

1         10.  Explain the remedies available for breach of contract of sale.  (January 2011)

1         11.  Explain the rules relating to passing of the property in goods from seller to buyer (June 2013)

1         12.  What are the rights available to seller and buyer for breach of contract.                 (June 2013)

UNIT – V    Marks : 5

1.      Write a short note on contents of hire-purchase agreement. Marks : 5 (June 2011)

2.      Distinguish Hire-Purchase Agreement from a contract of sale of Goods.(Jan 2011)

3.      Write a note on ‘Assignment and Transmission of Hirer’s Rights’. (January 2011)

4.      Write a short note on ‘implied-warranties’. (June 2011)

5.      Write short notes on : Unpaid seller. (December 2012)

6.      Write short notes on : Goods. (December 2012)

7          7.      Write Short notes : a) Caveat Emptor.            (June 2013)

8          8.      Write Short notes : b) Auction Sale.    (June 2013)

9.       ‘A’ Agrees to supply 100 Barrels of groundnut oil to ‘B’. ‘A’ despatches 120 barrels. ‘B’ refuses to receive on the ground that he has supplied excess. Advise ‘A’.         Marks : 5  (January 2011)

10.  Prashanth purchased dead Pig from Pinto a dealer in pork. Prashanth family consumed the pork and suffered illness as dead Pig unfit for human consumption. Prashanth filed a suit against Pinto to recover damages. Decide.  (January 2011)

11.  'A' agrees to supply 100 Ton of sugar to 'B', 'A' despatches 120 Tons. 'B' refuses to receive sugar that he has supplied excess. Advise 'A'. Marks : 5(June/July 2012)

12.  'A' asks 'B' a chemist, to give him hot water bottle. Subsequently, the bottle bursts and injures 'A's wife. Is 'B' walk to refund the money paid by 'A' ? (June/July 2012)