B Law Questions & Answers

7/30/2019 B Law Questions & Answers

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B law

Assignment questions

Question: 1

Point out with reasons whether the following agreements are valid or void?

(i) Kamala promises Ramesh to lend ` 50,000 in lieu of consideration that Ramesh gets

Kamalas marriage dissolved and he himself marries her.

(ii) Sohan agrees with Mohan to sell his black horse. Unknown to both the parties, the

horse

was dead at the time of agreement.

(iii) Ram sells the goodwill of his shop to Shyam for` 4,00,000 and promises not to carry

onsuch business forever and anywhere in India.

(iv) In an agreement between Prakash and Girish, there is a condition that they will not

institute legal proceedings against each other without consent.

(v) Ramamurthy, who is a citizen of India, enters into an agreement with an alien friend.

Answer

Validity of agreements

(i) Void Agreement: As per Section 23 of the Indian Contract Act, 1872 an agreement is

void if the object or consideration is against the public policy.

(ii) Void Agreement: As per Section 20 of the Indian Contract Act, 1872 the contracts

caused by mistake of fact are void. There is mistake of fact as to the existence of subject-

matter.

(iii) Void Agreement: As per Section 27 of the Indian Contract Act, 1872 an agreement in

restraint of trade is void. However, a buyer can put such a condition on the seller of good

will, not to carry on same business. However, the conditions must be reasonable

regarding the duration and the place of the business.

(iv) Void Agreement: An agreement in restraint of legal proceedings is void as per Section

28

of the Indian Contract Act, 1872.


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(v) Valid Agreement: An agreement with alien friend is valid, but an agreement with alien

enemy is void.

Question : 2

A, B and C are partners in a firm. They jointly promise to pay` 1,50,000 to P. C became

insolvent and his private assets are sufficient to pay only 1/5 of his share of debts. A is

compelled to pay the whole amount to P. Examining the provisions of the Indian Contract

Act,

1872, decide the extent to which A can recover the amount from B.

Answer

When two or more persons make a joint promise, the promisee may in the absence of

express

agreement to the contrary, compel anyone or more of such joint promisors to perform the

whole of the promise. In such a situation the performing promisor can enforce

contribution

from other joint promisors (Section 43 of the Indian Contract Act). If anyone or more joint

promisors make default in such contribution, the remaining joint promisors must bear theloss

arising from such default in equal share. Hence in the instant case, A is entitled to receive

(a)

from Cs assets - `,10,000 (1/5th of ` 50,000) and (` 50,000 is the amount to be

contributed

by C being 1/3rd of ` 1,50,000), (b) from B - ` 70,000 (` 50,000 being his own share +

(50,000-10,000) i.e. ` 20,000 being one half share of total loss of ` 40,000 due to C's

insolvency). A can recover ` 70,000 from B.

Question :3

Sunil delivered his car to Mahesh for repairs. Mahesh completed the work, but did not return the car to Sunilwithin reasonable time, though Sunil repeatedly reminded Mahesh for the return of car. In the meantime a big

fire occurred in the neighborhood and the car was destroyed. Decide whether Mahesh can be held liable under the


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provisions of the Indian Contract Act. 1872. (November 2003)

Answer

The problem asked in the question is based on the provisions of section 160 and 161 of the Indian Contract Act

1872. Accordingly, it is the duty of the bailee to return or deliver the goods bailed according to the bailors


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directions, without demand, as soon as the time for which they were bailed has expired, or the purpose

for which they were bailed for any loss, destruction of the goods from that time (Section 161),

notwithstanding the

exercise of reasonable care on his part.Therefore, applying the above provisions in the given case, Mahesh is liable for the loss, although he

was not negligent, but because of his failure to deliver the car within a reasonable time (Shaw & Co.

v. Symmons & Sons).

Question :4R is the wife of P. She purchased some sarees on credit from Q. Q demandedthe amount from P. P refused. Q filed a suit against P for the said amount.

Decide in the light of provisions of the Indian Contract Act, 1872, whether Q

would succeed?

Question : 5

Ans:


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Question: 6

Discuss the buyers remedies against seller where there is a break of contract ?

Ans:

1. Introduction:

The right and duties of buyer & seller have been determined under sales of goods

act if any party to the contract of sales of goods act commits breach of contract,

the other party has right against that party who commits the breach.

2. Meaning of breach of contract:

Breach means violation of law. The breach of contract means to break the contract

or not to act upon the terms and conditions of the contract.

3. Remedies of buyer:

Buyer has the following remedies in case of breach of contract.

(I) Suit for damages for non delivery:

According to sec. 57

Where the seller wrongfully neglects or refuses to deliver the goods to the

buyer, the buyer may sue the seller for damages for non delivery.

(II) Suit for specific performance:

According to Sec. 58

Where there is breach of contract for sale of specific goods, the buyer may file

a suit for specific performance. This remedy is granted only when damages

would not be adequate remedy.

Question: 7

. Mr. Ram a workman, who was an employee of South Central Railway,Secundrabad, he was sent on an errand from Secundrabad to Vijayawada and

from Vijayawada to Secundrabad. While coming back, he stood in the open

doorway of the train. The train received some jerk and he fell down and was


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killed. The dependents of the deceased workman claim compensation from the

owners of the South Central Railway. Is the claim tenable? If yes, give reasons .

Ans:


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Question :8

What are the privileges of a Holder in due course under the Negotiable

Instrument Act, 1881?

Ans:

Question :9

What are the rights of consumers under the consumer protection Act, 1986?

Ans:

Consumer Protection Act was enacted with the view to provide protection to the

consumers. The Act, ensures certain rights to the consumers. These are:

Right to be protected against the marketing of goods and services which are hazardous

to life and property


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Right to be informed about the quality, quantity, potency, purity, standard and price of

goods or services so as to protect the consumer against unfair trade practices.

Right to be assured , wherever possible , access to a variety of goods and services at

competitive prices

Right to be heard and to be assured that consumers' interests will receive due

consideration at appropriate forums

Right to seek redressal against unfair trade practices and unscrupulous exploitation of

consumers

Right to consumer education.

Question :10

Explain the discharge and modes of discharge of negotiable instruments?

Modes Of Discharge Of Negotiable Instrument

Q. What are the modes in which a maker, acceptor and endorser of

negotiable instrument is discharged ?

1. Introduction:

The negotiable instrument act provides different modes in which the individualliability of several parties to a negotiable instrument is discharge.

2. Discharge of parties from liability:

The maker, acceptor and endorser of a negotiable instrument can discharge from

their liability.

3. Discharge from instrument:

The term discharge in relation to a negotiable instrument is used in two senses as

under.

(i) Discharge of the instrument.

(ii) Discharge of one or more of the parties to the instrument.

I. Discharge of instrument:

An instrument is side to be discharged when all rights under it are extinguished.


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Effect:

After discharge the instrument ceases to be negotiable and even a holder in due

course does not acquire any right under it.

II. Discharge of one or more of the parties to the instrument:

If one or more of the parties to the instrument is discharged it continuse to be a

negotiable and remaining parties on it will continunes to be liable for it.

Effect:

Discharge of one or more parties of the instrument does not discharge the

instrument.

4. Modes of discharge:

Modes of discharge of negotiable instrument are following.

I. Payment:

The maker, acceptor or endorser respectively of negotiable instrument is

discharge from the liability there on to all parties there to, if the instrument is

payable to bearer, or has been endorsed in blank, and such maker, acceptor, or

endorser makes payment in due course of the amount due thereon.

II. Cancellation:

When the holder of a negotiable instrument deliberately cancels the name of any

of the party liable on the instrument to discharge him from liability such party and

all subsequent endorsers are discharged from liability.

III. Release:

If holder of an instrument release any party by any method other than

cancellation of names the party so released is discharged from liability.

IV. By allowing drawee:

If the holder of a bill allows the drawee more than 48 hours, excluding public

holdings, to consider about the acceptance, all prervious parties not consenting tosuch allowance are discharged from liability as the holder.

V. By delay in presentment of cheques:

If the holder of a cheque fails to present it for payment within reasonable time of

its issue and in meanwhile the bank fails causing damage to the drawer the

drawer is discharged from liability to as against the holder.


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VI. Cheque payable to order:

When a cheque is originally expressed to be payable to drawee is discharge by

payment in due course to the bearer, notwithstanding that any such endorsement

purports to restrict or exclude further negotiation.

VII. Draft by one bank on another:

Where demand draft is drawn by one office of the bank upon another office of the

same bank for a sum of money payable to order, the bank is discharged by

payment in due course.

VIII. Qualified acceptance:

If the holder of a bill agrees to qualified acceptance without the consent of the

prior parties, all the perior are discharged from liability.

IX. By operation of law:

(a) By an odder of the court.

(b) By merger

(c) By laps of time.

X. Material alteration:

Where a negotiable instrument is materially altered with the assent of all parties

on the instrument, the instrument is avoided. any alteration by an endorse

discharges his endorser from all liabilities to him in respect of the consideration

there of.

Instances:

(i) Alteration of the date of instrument.

(ii) Alteration of the sum payable.

Effect of material alteration:

Any material alteration of a negotiable instrument renders the instrument void.

5. Conclusion:

To conclude I can say that the negotiable instruments act provides different modes

of discharge is used in two senses discharge of the instrument and discharge of

one or more of the parties to the instrument.


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