2017

(SECTION – A) (04X15)

1. Mr. Nagarbhavi, who was a seed merchant entered into an oral agreement with Mr. Ravi, a

farmer, who had dealt with Mr. Nagarbhavi for some years, to sell Dutch winter cabbage seed at

the price agreed to. Mr. Nagarbhavi delivered the seed together with an invoice (bill) which

contained a clause purporting to limit the liability of Mr. Nagarbhavi in the event of the seed

providing to be defective to replacing the defective seed or refunding the purchase price thereof

and further purporting to 'exclude all liability for any loss or damage arising from the use of any

seeds of plants supplied by us and for any consequential loss or damage arising out of such use…

for any other loss or damage whatsoever'. Mr. Ravi planted some 63 acres using the seed supplied

by Mr. Nagarbhavi. However, unknown to Mr. Ravi and as a result of the negligence of the

employees of Mr. Nagabhavi, the seed supplied was not of a variety agreed to be supplied and

furthermore was in the event, unmerchantable. The crop was a failure and had to be ploughed in,

and consequently, Mr. Ravi lost a year's production from the 63 acres. Hence, Mr. Ravi brought

an action against Mr. Nagarbhavi claiming damages for breach of contract. Argue on behalf of

Mr. Ravi, Mr. Nagarbhavi and decide.

2. The owner of a hotel sold it but continued to act as manager and licensee, and dealt as such in his

own name, the new status being undisclosed. The manager was forbidden by the new owner to

buy rice on credit, but he bought rice on credit. Is the new owner liable to pay the price of the

rice? Decide in the light if the leading cases and the applicable statutory provisions.

3. Bank guarantee is an independent and separate contract between guarantor bank and person

entitled to benefit thereof i.e. guarantee-recipient. Discuss in the light of case law and the Indian

Contract Act, 1872.

4. Explain the journey from Caveat Emptor to Caveat Venditor in the light the sale of Goods Act,

1930. What are the remedies provided to the buyer for the defects in the goods purchased?

5. Enumerate and discuss Cox v. Hick man (1860) 8 HLC 268 in detail.

6. An auctioneer is instructed to sell goods by auction, a reserve price being fixed. By mistake he

sells without reserve. Assuming that you are an advocate for the auctioneer, explain to him the

grounds on which he can bind over the principle by the sale with leading cases and the applicable

sections under the Indian Contract Act, 1872.

(SECTION – B) (02X05)
7. What is the extent and limitation of liability of Limited Liability Partnership and Partners under

the LLP Act, 2008. 8. Certain goods had been delivered by Mr. Lakshman to the Railway Station
Master to be booked,

but he being unable to book on account of stoppage of booking, kept the goods on the railway

premises without definitely directing the plaintiff to remove the goods or telling him in

unmistakable terms that the goods were being kept at his own risk, though, at the same time not

definitely accepting the goods at the railway risk. What is the nature of relationship between the

Railway Department and Mr. Lakshman as per the provisions of the Indian Contract Act, 1872

and why?

9. The holder of a lien allows the owner of the goods free access to the goods for the purpose of

using and returning them. Can the holder of the lien exercise the right of lien? Why?

10. Can pledgee dispose of the goods pledged? If so, under what circumstances?

2018

(SECTION – A) (04X15)

1. Sarju Limited contracted to sell by description to the CRA Ltd., sulphuric acid,

commercially free from arsenic. The CRA Ltd. did not make known to the Sarju Limited,

either expressly or by implication the purpose for which they required the acid. Sarju

Limited supplied to CRA Ltd. sulphuric acid which was not commercially free from

arsenic. CRA Ltd. used the acid in the manufacture of brewing sugar in the shape of

invert and glucose, which they sold to brewers who used it in the brewing of beer. The

beer thus made was rendered poisonous, and the brewers suffered loss in respect of which

CRA Ltd. were liable to them. CRA Ltd. also lost the price of the acid, which was

rendered worthless to them, and the value of other goods spoilt through being mixed with

the acid; and the goodwill of their business was damaged. CRA Ltd. claimed damages

from Sarju Limited for the above stated loss. Argue on behalf of Sarju Limited and CRA

Ltd. and decide.

2. Critically analyze the interpretation of the term “Goods” under the Sale of Goods Act,

1930 by the Competition Commission of India, Suo Motto Case No.01 of 2013, i.e.

Cartelisation in Sale of Sugar Mills by the Uttar Pradesh Ltd. and the U.P. Rajya Chini

Evam Ganna Nigam Ltd.

3. An agent who is personally liable unsuccessfully defends an action brought against him
for breach of an unauthorized contract entered into by him on behalf of his principal.

What are the rights and liabilities of the agent if the principal

a) Ratifies what the agent has done

b) Does not ratify what the agent has done

Under the relevant Sections of the Indian Contract Act, 1872

4. A mercantile agent selling goods for the principal fell behind in his payments and was

required by the principal to furnish a security for the sum of Rs.50,000. Mr. Raghav

furnished a guarantee of Rs.30,000 on an agreement that recited the terms of dealing

between the principal and the debtor mercantile agent but failed to disclose that the

mercantile agent was already in debt to the principal. Is the guarantee furnished by Mr.

Raghav is valid? Furnish reasons with the relevant sections under the Indian Contract Act,

1872.

5. Mr. Sanjay parked his car at the parking lot of Syndicate Parking Company, paying the

required fee and leaving the key in the car. Mr. Sanjay testified that this was done at the

attendant’s request, and this testimony was not controverted. The attendant left the lot

about midnight, and some-time after that time, the car was stolen. Is the Syndicate

Parking Company is liable to Mr. Sanjay? Furnish grounds under the applicable sections

of the Indian Contract Act, 1872.

6. Distinguish a bailment from a pledge. What are the rights, duties and liabilities of the

pledge under the Indian Contract Act, 1872?

P.T.O.

(SECTION – B) (02X05)

7. Explain C.I. F. Contracts with case laws.

8. Distinguish a sub-agent from a substituted agent having regard to their rights, duties and

liabilities.

9. Examine the status of a minor in a partnership firm.

10. Distinguish a Limited Liability Partnership Firm from a Partnership Firm.

2019

(SECTION – A) (04X15)

1. A authorized B to carry on business (purchase and sale of goods) for and on behalf of A

in any manner B chose. B appointed C to enter into transactions of purchase and sale of
goods on the following terms: (i) that C would render accounts of all sales and purchases

to B; (ii) that C would act according to the instructions of B on behalf of B and; (iii) that

C would charge a certain commission on the transactions. Explain in detail the following

(A) and (B) in the light of the applicable provisions under the Indian Contract Act, 1872

and leading cases:

(A) What is the position of C in relation with A?

(B) Can A institute a suit against C for accounts?

2. A partnership deed consisted of the following terms: (i) if any of the partners

unfortunately dies, then in that case the partnership shall not be dissolved, but his sons

will become partners of his share and that person will become the partner who may have

been nominated by the deceased partner; (ii) if any partner wanted to separate from the

business of the partnership before the expiry of one year and even if he did so, his capital

would not be returned before the end of the year; (iii) no partner could withdraw from the

partnership so long as the loan taken from the Bank by the Partnership Firm was not

repaid.

What kind of Partnership Firm is it? How can it be dissolved? Explain with the applicable

provisions and case law under the Indian Partnership Act, 1932.

3. Where a letter by the surety guaranteeing the repayment of a loan by the two principal

debtors contained inter alia that in case the creditors are not able to recover the amount

from the principal debtors, the surety agreed to pay the same. The creditor sued only the

guarantor to recover the amount due from the principal debtors.

(A) Will the creditor be able to recover from the surety? Why?

(B) What are the rights of the surety?

Explain in the light of applicable provisions under the Indian Contract Act, 1872.

4. Enumerate the statutory provisions relating to ‘Designated Partners’ as provided in The

Limited Liability Partnership Act, 2008.

5. Discuss the rights and responsibilities of ‘Bailor and Bailee’ bearing in mind the

applicable legal provisions.

6. Explain in detail the ‘Implied Conditions and Warranties’ as embodied in the Sale of

Goods Act, 1930.

(SECTION – B) (02X05)
Write short notes on:

7. Distinguish sale from an agreement to sell.

8. Elucidate the facts and judgment of Watteau v. Fenwick, 1893 Q.B.D. 346.

9. Explain the ‘Principle of Holding Out’ keeping in mind the applicable provisions.

10. Illuminate the facts and judgment of Cox v. Hickman, (1860) 8 HL Cas 268.

2020

Section-"A" 03X20

1. Under the document, an executant agreed to reimburse the Municipal Committee to the extent of

Rs. 200 in case of loss caused to it by the conduct of a certain bill collector. The document was

signed by the executant and executed in favour of the Municipal Committee. It was not signed by

the bill collector. What kind of a contract is it? Discuss with the applicable sections under the

Indian Contract Act, 1872.

2. A Mercantile agent purchases goods on his principal’s behalf at a price exceeding his limit. The

principal disposes of the same goods whether the principal shall pay the mercantile agent the full

price. Furnish reasons in the light of the relevant sections under the Indian Contract Act, 1872.

3. A surety had executed a bond undertaking to discharge the liability arising out of any act or

omission, negligence or default of a forest contractor whose bid was accepted at an auction held

for sale of felled trees and who was required to pay the bid amount in four installments. The forest

contract rules provided for preventing the contractor from removing the forest goods in case he

made default in payment of the installments due. The forest goods were in the possession of the

State. The authority responsible for supervising contract allowed the contractor to remove the

felled trees without making the subsequent payments. Can surety be made liable for the default of

the forest contractor in the payment of bid amount? Argue on behalf of the surety and decide with

the applicable provisions under the Indian Contract Act, 1872.

4. Delegates non protest delegare. Explain the maxim in detail with exceptions with the leading case

laws.

5. “Sharing of profits is a prima facie evidence of the existence of partnership, however, while

determining the existence of partnership, regard shall be had to the real relation between the

parties, as shown by relevant facts taken together.” Discuss the essential of partnership in the light

of relevant provisions and judicial precedents.

6. Critically analyse the relevant sections under the Indian Contract Act as regards Indemnity
Contract. Do you suggest amendments to these sections? Why?

Section-"B" 02X05

Write short notes on any two of the following:

7. Whether a partner does have an implied authority to act as agent of the firm? Discuss with the

help of relevant provisions and decided cases.

8. What are the implied conditions in a sale by description? Discuss with the help of the relevant

provisions and decided cases.

9. An agent for sale sells to a company of which he is a director and large shareholder. Is this

sale binding on the principal? Decide with the help of the applicable provisions under the

Indian Contract Act, 1872.

10. An agreement provided that the commission agent shall be in position of the goods purchased

and disposes of the same in accordance with the direction of the principal. Whether the agents

position of goods amount to pledge? Why? Give reasons by applying the relevant sections

under the Indian Contract Act, 1872

2021

(SECTION – A) (03X20)

1. Explain the maxim Delegatus no potest degegare with exceptions in detail with leading case laws.

2. Ratification has the effect of investing the unauthorized act already done. Do you agree with the

statement? Discuss with relevant statutory provisions and case law.

3. Under the document A, an executant agreed to reimbursement to the municipal committee to the

extent of Rs. 10000/- in case of loss caused to it by the conduct of a certain bill collector. The

document was signed by the executant and executed in favour of the Municipal Committee. It was

not signed by the bill collector. Is this document an indemnity contract or guarantee contract?

Furnish reasons with the applicable sections under Indian Contract Act, 1872 and case law.

4. There is an implied condition on the part of seller that he has a right to sell the goods. Discuss

with help of relevant provisions and judicial precedents.

5. Discuss the rule laid down in the case of Cox. V. Hickman [(1860) 8 HLC 268] and its application

under the Indian Partnership Act, 1932.

6. The original English rule was that indemnity was payable only after the indemnity holder had

suffered loss by paying off the claim to the indemnified". Is this rule applicable in India? Why?

Explain in the light of judicial pronouncement.

Write short notes on any two of the following:

7. Can a minor can be admitted to the benefits of a partnership? Discuss.

8. Grant v. Australian Knitting Mills Ltd. (1936) AC 85.

9. Pre-incorporation Contract Law.

10. Bank of Bihar v. Damodar Prasad AIR 1969 SC 297.