Short Answers

1.     Rights of Indemnity Holder.

2.     Kinds of Guarantee.

3.     Pledge. Ackons Outing tar Cornmonobieft

4.     Future goods. not cresting & identified.

5.     Caveat Emptor

6.     Dormant Partner

7.     Dissolution of Partnership.

8.     Indemnity

9.     Pledge by non-owner.

10.  Surety.

11.  Hire Purchase Agreement.

12.  Delegation of Authority.

13.  Unpaid Seller

14.  Sleeping Partner.

15.  L.L.P.

16.  Co-Surities.

17.  Contract of Indemnity.

18.  Bailment.

19.  Finder of Goods,

20.  Pawnor

21.  Universal Agent.

22.  Reconstitution of Firm.

23.  Contract of Guarantee.

24.  Auction Sale.

25.  Caveat Emptor.

26.  Rights of Pawner.

27.  Hypothecation.

28.  Rights of the Surety.

29.  Liability of Bailor.

30.  Minor’s Contract.

31.  Partnership at Will.

32.  Registration of a Firm.

33.  Contract of “Suretyship”.

34.  Simple Guarantee.

35.  Movable Goods.

36.  Agency by Operation of Law.

37.  Specific Goods.

38.  Actual Delivery.

39.  Mercantile Agent.

40.  Sub Agent.

41.  Consequences of Non Registration of a Firm.

42.  Termination of Agency.

43.  Pledge.

44.  Surety as a favored Debtor.

45.  Gratuitous Bailment.

46.  General Lien.

47.  Agency by Ratification.

48.  Unascertained Goods.

49.  Nemo dat Quod Non – Habet

50.  Conditions and Warranties

51 . Sale by Non-Owner.

52.  Contract of Partnership.

53.  Limited Liability Partnership.

54.  Warranties.  

55.  Company as a Partner.

56.  Doctrine of Contribution.

57.  Unpaid Sellers Rights.

58.  Definition Goods

59.  Minor as a Partner

60.  Continuing Guarantee.

61.  Del Credere Agent

62.  The Property of Firm.

63.  Compulsory Dissolution of a Firm.

64.  Particular Lie and General Lien.

65.Liability of Co-Sureties.

66. General Lien of Bankers.

67.  Liability of Estate of Deceased Partner.

68.  Agreements in Restraint of Trade.

long Answers

 1. Define “Bailment” and “Pledge”. When is a pledge created by non-owners valid?

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

3. Discuss the rule an agent shall not delegate his authority.

4. Define “Condition” and “Warranty”. Distinguish between condition and warranties.

5. What is the nature of a Surety’s authority? State his rights against the principal debtor.

6. What is Contract of Agency? What are the essentials of relationship of Agency?

7. Explain the Nature of a contract of sale of goods and bring out clearly the distinction between a sale and an agreement to sell.

8. “A partner is the agent of the firm for the purpose of the business of the firm”. Explain.

9. Define “Bailment”. What are the essentials of Bailment.

10. Define “Contract of Guarantee”. What are the effects of misrepresentation and concealment on contract of guarantee?

11. What do you mean by “Pledge”? Who can Pledge? Discuss with latest examples.

12. How Partnership Firms are registered? What are the Consequences of Registration and Non-Registration of Partnership Firm?

13. What are the Implied Conditions and Warranties in a Contract of Sale?

14. Define “Contract of Indemnity”. In what aspects Indian Law differs from English Law on Contract of Indemnity? Explain.

16. What is “bailment”? What are the Essential Features of Bailment with Suitable Examples?

17. What is “Agency by Ratification”? Examine the Condition of a Valid Ratification with Illustrations.

18. Explain what actions and omissions would discharge a Surety from obligations.

19. Discuss the Duties and Rights of Bailor and Bailee with suitable Case Laws.

20. Discuss the Position of Undisclosed Principal in the Law of Agency.

21. What are the Circumstances in which a Non-Owner of Goods can convey a Good Title to Goods?

22.” Define “Partnership” and distinguish it from “Agency

23. What is meant by “Specific Performance of a Contract”? Discuss the Provisions relating to Specific Performance under the Act.

24. What are the essential Characteristics of Contract of Guarantee? Distinguish between Indemnity and Guarantee.

25. Explain the Rights of Agent against Principal.

26. What is a “Continuing Guarantee”? How is it revoked and with what consequences?

27. Define a “Contract of Sale” and “Agreement to Sell” and distinguish between them.

28. Explain the Doctrine of “Caveat Emptor” and state the Exception to it.

29. Who is “Unpaid Seller”? What are his Rights according to the Sale of Goods Act.

30. What is “Contract Guarantee”? Discuss the law relating to Rights and Liabilities of Surety

31. Explain the concept of “Delegation of Authority”. When an agent can delegate his authority to someone.

32. What is contract of partnership? An discuss the law relating to nature and formation of partnership.

33. Discuss the Definition of “Guarantee” and explain the essential Characteristics of Contract of Guarantee.

34. Explain the Rights and Duties of Seller and Buyer before and after Sale.

35.  Discuss the Rights and Duties of Partners.

36. Define “Property”. Explain the Possession of and Rules relating to Passing of Property.

37. What is a “Contract of Guarantee”? What are its characteristics? Distinguish between Contract of Guarantee and a Contract of Indemnity.

38. What are the Rights of a Bailor against a Bailee when the later mixes his own goods v those of the former?

39.  Define “Agency”. Explain the law relating to “Termination of Agency”.

40. Explain the Definition and Nature of Partnership and discuss the Rights and Duties of Partners

41. Define the “Contract of Guarantee”, and discuss the extent of the Liability of the Surety.

41. What are various methods for Creations of Agency?

42. Define “Contract of Sale of Goods”, and distinguish the Contract of Sale from the Agreement to Sell

43. Define “Contract of Partnership” and discuss the important elements for Formation of Partnership.

45. What are the essential characteristics of “Contract of Guarantee”? Distinguish between Indemnity and Guarantee.

46. State the essentials of Partnership and distinguish Partnership from a Joint Stock Company.

47. Define “Contract of Guarantee” and discuss the Rights of a Surety

48. Explain the various modes by which an Agency may be terminated.

49. What are the various modes for Dissolution of a Partnership Firm?

 50. Discuss the Implied Conditions and Warranties governing the transaction of Sale of Goods

51. What are the various methods by which a Surety is discharged?

52. Discuss the Rights and Duties of Bailee.

53. Explain the effect of death, insanity and Insolvency of the principal or the Agent on a Contract of Agency

54. A buyer cannot get a better title than what the seller had it. What are the exceptions to this Rule?

Case laws

1. A agrees to to indemnify ‘B’, a newspaper proprietor against claims arising out of the libel printed in the newspaper concerning a person of repute. Is this a valid agreement?

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?

3. ‘G’ Contracts with H to buy 50 easy chains of a certain quality. H delivers 25 chairs of the type agreed upon and 25 chairs of some other type, Does ‘G’ reject the chairs?

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?

5. ‘A’ lends a horse to ‘B’ for his own riding. B allows C a member of his family to ride the horse ‘C’ rides with care, but the horse accidently falls and is injured. Decide.

6. ‘X’ helds a lease from Y, terminable on 3 months’ notice. ‘Z’ an athorised person gives a notice of termination to ‘X’. Can the notice be ratified by Y.

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.

8. ‘D’ a carrier discovers that a consignment of tomatoes owned by ‘E’ has deteriorated badly before the destination is reached. He, therefore, sells that consignment for about a third of the market price. ‘E’ sues ‘D’ for damages. Decide.
9. A gives silk to B a tailor, to be stitched into a coat. B promises ‘A’ to deliver the coat as soon as it is made and to give ‘A’ three months credit for the charges. Is B entitled to retain the Coal until the charges are paid.

10. ‘A’ enters into a contract with ‘B’ for buying B’s cat as agents for ‘C’ without B’s authority Repudiates the contract before ‘C’ comes to know it. ‘C’ subsequently ratifies the contrad and gives to enforce it. Advise B.

11. A sold 100 quintals of groundnut oil to B. Before it could be delivered to ‘B’ the Govt. of India requisitioned the whole quantity lying with ‘A’ in public interest. ‘B’ wants to sue ‘A’ for breach of contract. Advise B.

12. ‘A’ of Agra ordered certain specified goods from ‘B’ of Bombay. ‘B’ sends the goods, nol ordered, along with them. What should ‘A’  do? 
13. ‘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.

14. ‘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 ratify by ‘Y’.

15. ‘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 guarantee. Decide giving reasons.

16. ‘P’ gives authority to ‘A’ to sell ‘P’s laud to pay himself, out of the proceeds, the debt due to him from ‘P’. Subsequently ‘P’ revokes the Authority given to ‘A’. Advise ‘P’

17. X a 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.

18. An unregistered partnership firm borrows Rs. 1,00,000/- from X the firm failed to repay it within time. Now that can Mr. Y do to recover the amount? Advise.

19. A directs B his agent to buy a certain house form him. B tells A that, it can’t be bought at it is already sold out, but buys the house for himself. A came to know about the travel committed by B. Can A compel B to sell the house to himself? Decide.

20. 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

21. ‘B’ is the principal debtor of ‘A’. C is the surety of the debt. A, the creditor makes a promise to a neighbour of ‘B’ to give time to ‘B’. Discuss the effect if any of this promise on the contrac of guarantee.

22. ‘A’ being Y’s agent for the sale of goods, induces K to buy them by a misrepresentation, which ‘X’ was not authorised by ‘Y’ to make. Can this contract be set side at the option of K? State the reasons for your answer.

23. A sells goods to ‘B’. B pays to ‘A’ through a cheque. Before B could obtain the delivery of goods, his cheque has been dishonoured by the bank. A, therefore refuses to give delivery of the goods until paid. Is A’s action justified or not?

24. ‘A’ holds a lease from ‘B’ terminable on three months’ notice. C without B’s authority, gives notice of termination to ‘A’. B ratifies the notice and files a suit for rejectment. ‘B’ is entitled to get decree or not.
25. ‘A’ and ‘B’ are the Partners in a firm. ‘A’ is the managing partner who managed the fim for 3 years and misappropriated the funds. ‘B’ wanted to file a Suit regarding Settlement of Accounts. Advise B.

26. A sells to B a horse and agrees to deliver it the coming week. B agreed to pay the price on delivery. But the horse died before it is delivered. Who has to suffer the loss?

27. ‘A’ lends a book to ‘B’ and ‘B’ promises to return it one week before examinations. B did not return it in spite of ‘A’s’ repeated demands. A sues B for breach of contract and claims damages. B pleads absence of consideration and therefore not a contract. Decide.

28. A advances to B a minor, Rs. 50,000 on the guarantee of C. On demand for repayment, B refuses to pay on the ground of minority. Can A recover the amount from C.
29. ‘A’ advances Rs. 500/- to a minor ‘B’ on the guarantee of ‘X’ on demand for payment. The borrower pleads minority. Can ‘A’ recover the amount from ‘X’.

30. ‘A’ hires a carriage of ‘B’. The carriage is un-safe although ‘B’ is not aware of it and ‘A’. Is injured. Is B responsible to ‘A’ for the injury.

31. ‘A’ agrees to sell B, 50 bales of cotton out of 300 bales in his own godown. The godown at the time of contract has been destroyed by fire unknown to A. What are the remedies of ‘B’ against ‘A’

32. ‘X’ was given power of attorney by Y to manage his business ‘X’ had to leave the place and he authorized his son ‘Z’ to look after the business ‘Z’ had a power from his father. He entered into a contract in the name of ‘Y’ and signed the same. Discuss the rights and liabilities.
33. ‘A’ undertakes to save ‘B’ free from liability arising out of any proceedings which ‘C’ may take against ‘B’ in respect of a certain sum of Rs. 2000. What is the nature of this contract.

34. ‘A’ hires a carriage of ‘B’. The carriage is unsafe, but ‘B’ is not aware of it. ‘A’ is injured. Is B responsible for the injury.

35. X rents out his houses to ‘y’ and the contract is terminable on three months’ notice. Z, without X’s authority gives notice to termination to ‘y’. X ratifies the notice and files a suit for ejectment. Is ‘X’ entitled to get decree.

36. ‘A’ contracts to sell ‘java sugar’ according to sample produced by him. On the delivery of the same to ‘B’ the buyer, it appears that the sugar agrees with the sample, but it is not java sugar Will ‘B’ be entitled to any remedies.

37. A gave his watch for repair to B. B misplaced it. What is the liability of B? Discuss the relevant law.

38. A retailer received the goods from an agent of the firm X and paid the amount to the agent who misappropriated it. Discuss the liability of the agent and the firm X.

39. A partner filed a criminal case against a person accusing him of theft of the firm’s assets. However, the court found the accused innocent. Then the accused filed Suit against the firm for damages and malicious prosecution. Is the firm liable? Discuss.

40. M offered to sell his motor vehicle to N and received a cheque from him towards the advance N. then sold the vehicle to O. The cheque issued by N to M was dishonoured. Consequently M sued N to return the vehicle. Decide.
41. ‘X’ agrees to buy from ‘Y’ a cow. It turns out that the cow was dead at the time of the bargain though neither party was aware of the fact. Is the contract valid.

42. ‘A’ delivers to ‘B’ a gas matter on 1-3-2011 on sale or return basis. B returns it on October 2011, but ‘A’ refuses to take it back and sues B for price. Will he succeed? Give the reasons,

43. ‘A’ directs his solicitor to sell his estate by auction. The solicitor employs an auctioneer for the purpose. Is the auctioneer the sub-agent of ‘A’.

44. ‘B’ borrowed from A Rs. 50,000/-C.D. and E were co-sureties who have put themselves in the sums of Rs.10,000/- Rs. 15,000/- and Rs. 25,000/- respectively. Examine the right to contribution as between the Sureties.
45. A and B enter into a Partnership. One of the clauses of the Partnership Agreement is to the effect that the death of either partner his heirs shall take his place in the partnership. A died. Can his heir automatically become Partner with B.

46. A enters into a contract with B to supply iron to be delivered in four monthly installments of about 150 tons each and supplied only 25 tons in the first month. The buyer refuses to accept delivery. Examine the rights of the parties.

47. A is B’s agent for buying goods. B pays money to A for the purchases. A, however, as agent purchases goods on credit from C. Can C recover the price from A?

48. A gave her costly silk saree for dry cleaning to B. B gave a receipt with printed conditions on its back. One condition is that B will not be liable for any damage in dry cleaning. The silk saree is damaged by B’s negligence. Can A recover damage.
49. A offered his car for sale B agreed to buy it from him and gave a cheque. B then sold the car to C. The cheque was dishonoured and A sued C for return of the car. Decide.

50. A is B’s agent for buying goods. B pays money to A for the purchases A, however, as agent purchases goods on credit from C. Can C recover the price from A?

51. A consigned goods for the value of Rs. 50,000/-by railway. He pledged the R.R. with Bank for Rs. 30,000/-. The goods were lost in transit. The Bank sues Railway for recovering Rs. 50,000/-. Decide.

52. A Partner filed a criminal complaint and prosecuted a person for theft of partnership property. The prosecution failed and the accused who was acquitted brought an action against the firm for damages for malicious prosecution. Is the firm liable?
53. ‘X’ employeed a goldsmith for converting her old jewellery and making new ones out of it. Every evening she received the unfinished jewellery and put it in to a box at the house of the goldsmith. However, she kept the key of the box with herself. One night the jewellery was stolen from the box. ‘X’ wants to hold the goldsmith liable as bailee. Advise.

54. ‘B’ selects certain furniture in a shop. The price is settled. ‘B’ arranges to take delivery of the furniture on the next day and agrees to pay the price on the first day of the next month. The furniture was destroyed by fire in the same evening, is ‘B’ liable to pay ‘price, to seller?

55. ‘B’ signed a guarantee to the Bank. Which on the face of it, was intended to be the joint and several guarantee of co-sureties. A, B, C and D. ‘D’ did not sign and afterwards died in an accident. Decide the liability of ‘B’ as co-surety.

56. ‘J’ the owner of a car wants to sell his car. For this purpose he handed ove his car to ‘P’ an agent for sale at a price of Rs. 50,000/-. The agent sold the car for Rs. 40,000/- to ‘A’, who purchased car in good faith. ‘P’ misappropriated the money. ‘J’ sues ‘A’ to recover car. Decide by giving reasons whether ‘J’ would succeed.
57. Bowes to C a debt guaranteed by A. The debt becomes payable. C does not sue B for a year after the debt has become payable. Is A discharged from his suretryship.

58. A, managing clerk of a solicitor’s firm, had authority to transact conveyancing business on behalf of the firm. X, a client of the firm gave documents for preparing a sale deed. ‘A’ dealt with that property for his own benefit. The client ‘X’ sued the solicitor’s firm. Decide.

59. A agrees to sell two cars to B on the terms that the price was to be fixed by valuation of X. B took delivery of one car immediately. X, refused to fix the price. A asked for the return of the car already delivered. B demanded delivery of the other car offering to pay a reasonable price for both the cars. Determine the inputs of A and B.

60. A and B enter into a partnership one of the clauses of the partnership agreement is to effect on the death of either partner his heirs shall take his place in partnership. A died. Can his heir automatically become partner with B?