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QUESTION BANK ON BUSINESS LAW AND REGULATIONS - M.B.A., SEMISTER-I

1. (a) Define Consideration? What are the essential features of a 'Contract'?

(b) Explain 'Offer' and 'Acceptance'. Explain with relevant examples the essentials of a valid offer?

(c) Gopal publishes an Advertisement in a newspaper to sell his land and calls for offers from
interested parties. Ram, Shyam and Peter furnished their respective offers to purchase the land
at a specific price. But Gopal refuses to accept all the offers outright. Whether Gopal is justified of
his action? What remedies if any, the offerers have in this regard?

2. What is 'free consent'? Distinguish the significance of the following terms?

(a) Coercion and undue influence

(b) Fraud and mis-representation

(c) Mistake of fact and mistake of law

Also explain the effect of contracts entered in each of the above cases, giving suitable
examples.

3. (a) What is the significance of Communication in a contract?

(b) State briefly the rules relating to 'Revocation' of a 'contact'?

4. (a) Define "a contract of Guarantee" and 'contract of Indemnity"

(b) What is the basic distinction between these two guarantees?

Furnish an example for each type of these contracts.

5. (a) Define "Bailment" and 'Pledge"

(b) How are these different from each other?

Please furnish valid examples for each of these contracts.

(6) (a) What is a "Contract of Agency"? Briefly mention the protection available to the Agents for his
acts done in accordance with the instructions og Principal and in an 'emergency'

(b) "B' from Singapore under instructions of his Principal, A, of Delhi, contracts with 'C' to deliver
certain goods to him. But "A' fails to send the goods to 'B' to deliver the same to 'C' and 'C' sues
'B' for breach of contract. 'B' informs 'A' about the suit. What is the position of 'B' if he were to
pay the costs and damages claimed by 'C' for the lapse of not delivering the goods as agreed
upon uder the contract?

(7) (a) Mr. Right consigns some goods for sale to Mr. Brush, his Agent and instructs him not to sell the
same for less than a specific fixed price. Mr. Incent, (not aware of the instructions of the Principal)
enters into a contract with Mr. Brush to purchase the goods at a price which is lower than the
reserve price fixed by Mr. Right. What is the effect of enforceability of this contract?
 (b) Mr. Crook who is an Agent engaged by Mr. Fair, for sale of certain goods, induces Mr. Confucius
to by them under mis representation, which Mr. Crook is not authorised by his Principal. What
happens to the contract? If voidable between whom?

(c) 'A' employs 'B" to manhandle 'C" with a promise to indemnify 'B' against all the consequences.
'B' therefore, executes the contract and manhandles "C" and as a consequence was to the medical
expenses and damages to 'C'. What are the remedies for 'B"

(8) Explain what is a 'Lien'? Distinguish between 'General Lien' and 'Particular Lien'.

(b) Furnish relevant example to each of 'General Lien' and Particular 'Lien'.

(9) Explain the Essential features of a valid 'Sale Contract'? In what respect does a 'Sale' differ from that
of an 'Agreement for Sale'?

Distinguish between a 'Sale Agreement' and a 'Hire Purchase Agreement'.

10. (a) What do you understand by the terms 'Condition' and Warranty"?

(b) What are the rights and remedies available to an 'unpaid vendor'?

11.(a) What is 'Partnership'? What are the responsibilities and liabilities of Partners?

(b) What are the implications of admitting a "Minor" to a 'Partnership"?

12. (a) Explain briefly the rules about the 'Dissolution" of a Partnership?

(b) Whether a 'partner' can voluntarily quit a partnership? What are the liabilities of a retired partner ?