7. ‘A’ stands as a surety for the good conduct of ‘B’. Who is employed in a cooperative society ‘B’. Misappropriates some money. The Bank excuses him without informing ‘A’ of ‘B’s misconduct, ‘B’ again misappropriates Rs. 50,000/- the society files a suit against ‘A’ on the strength of the guarantee. Decide giving reasons.

1. Facts of the Case 2. Issues in the Case 3. Legal Principles Covered a) Section 133 – Discharge of Surety by Variance in Terms […]

4. Raju, a partner of a firm, borrows money on his own credit by giving his own promissory note for the same, but he subsequently uses the proceeds of the note in the partnership concern of his own free will without any reference to the lender to do so. Is the firm liable for the loan?

1. Facts of the Case 2. Issues in the Case 3. Legal Principles Covered a) Partner’s Implied Authority b) Acts Done Beyond Implied Authority c) […]

2. Mohan Lal delivers diamonds to Neel Kamal on sale or return basis. Neel Kamal delivers the diamonds to Om Prakash on sale or return. An unknown person takes away the diamonds from Om Prakash. Can Mohan Lal file a case against Neel Kamal for the price of the diamonds?

1. Facts of the Case 2. Issues in the Case 3. Legal Principles Covered a) Sale or Return Contract b) Transfer of Property and Risk […]