Law of Contract – II · Semester 2

Law of Contract – II · July/August 2012 (5-YDC)

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Study aid only. Confirm statute numbers with the current bare Act and the official OU LL.B. (3-YDC) 2024–25 syllabus PDF.

Official previous-year question paper (PDF scan), OU LL.B. Year 1 Semester 2. Download the file; question-to-topic mapping can be added later from this paper.

Osmania University · Faculty of Law

Law of Contract – II · July/August 2012 (5-YDC)

July/August (5-YDC) 2012 · Law of Contract – II · Semester 2

FACULTY OF LAW
B.A. LL.B. (5 YDC) II Year IV Semester Examination, July / August 2012
Subject: LAW
PAPER - IV: LAW OF CONTRACT - II
Code: 1091 | Time: 3 Hours | Max. Marks: 80
PART - A (5 x 6 = 30 Marks) — Write short notes on any five of the following.
1. Rights of Indemnity holder.
2. Liability of Co-Sureties.
3. General Lien of Bankers.
4. Bailment.
5. Sub-Agent.
6. Unpaid Seller.
7. Liability of Estate of Deceased Partner.
8. Agreements in Restraint of Trade.
PART - B (2 x 15 = 30 Marks) — Answer any two of the following.
9. What are the various methods by which a Surety is discharged?
10. Discuss the Rights and Duties of Bailee.
11. Explain the effect of death, insanity and Insolvency of the principal or the Agent on a Contract of
Agency.
12. A buyer cannot get a better title than what the seller had it. What are the exceptions to this
Rule?
PART - C (2 x 10 = 20 Marks) — Answer any two of the following.
13. B owes 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 suretyship?
14. 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.
15. 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 rights of A and B.

16. 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?

Part A · 6 marks

  1. Rights of Indemnity holder.
    3× in bank Topics: Contract of indemnity and contract of guarantee; Unpaid seller's rights
    Year and frequency →
  2. Liability of Co-Sureties.
    Topics: Dissolution of firm and limited liability partnership
    Year and frequency →
  3. General Lien of Bankers.
    Year and frequency →
  4. Bailment.
    6× in bank Topics: Bailment and pledge
    Year and frequency →
  5. Sub-Agent.
    2× in bank Topics: Duties of agent and principal; termination of agency
    Year and frequency →
  6. Unpaid Seller.
    8× in bank Topics: Unpaid seller's rights
    Year and frequency →
  7. Liability of Estate of Deceased Partner.
    Topics: Dissolution of firm and limited liability partnership
    Year and frequency →
  8. Agreements in Restraint of Trade.
    Year and frequency →

Part B · 15 marks

  1. What are the various methods by which a Surety is discharged?
    Year and frequency →
  2. Discuss the Rights and Duties of Bailee.
    Topics: Unpaid seller's rights; Duties of agent and principal; termination of agency
    Year and frequency →
  3. Explain the effect of death, insanity and Insolvency of the principal or the Agent on a Contract of Agency.
    Topics: Contract of sale, goods and formation; Contract of indemnity and contract of guarantee; Duties of agent and principal; termination of agency
    Year and frequency →
  4. A buyer cannot get a better title than what the seller had it. What are the exceptions to this Rule?
    Topics: Unpaid seller's rights
    Year and frequency →

Part C · 10 marks

  1. B owes 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 suretyship?
    Year and frequency →
  2. 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.
    Topics: Appointment, authority and kinds of agents; Transfer of property and risk; nemo dat quod non habet
    Year and frequency →
  3. 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 rights of A and B.
    Topics: Unpaid seller's rights
    Year and frequency →
  4. 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?
    2× in bank Topics: Nature of partnership, relations of partners and third parties; Dissolution of firm and limited liability partnership
    Year and frequency →