Law of Contract – II · Semester 2

Law of Contract – II · July/August 2012

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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

July/August 2012 · Law of Contract – II · Semester 2

FACULTY OF LAW
LL.B. (3 YDC) First Year II Semester Examination, July / August, 2012
Subject: LAW
PAPER - I: LAW OF CONTRACT - II
Code: 1007 | Time: 3 Hours | Max. Marks: 80
PART - A (5 x 6 = 30 Marks) — Answer any five of the following.
1. Continuing Guarantee.
2. Particular Lien and General Lien.
3. Pledge.
4. Del Credere Agent.
5. Unpaid Seller.
6. Registration of a Firm.
7. Partnership at Will.
8. "Nemo dat quod non habet."
PART - B (2 x 15 = 30 Marks) — Answer any two following.
9. Define "Contract of Guarantee" and discuss the Rights of a Surety.
10. Explain the various modes by which an Agency may be terminated.
11. Discuss the Implied Conditions and Warranties governing the transaction of Sale of Goods.
12. What are the various modes for Dissolution of a Partnership Firm?
PART - C (2 x 10 = 20 Marks) — Answer any two of the following.
13. 'X' employed a goldsmith for converting her old jewellery and making new ones out of it. Every
evening she received the unfinished jewellery and put it into 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.
14. '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?
15. '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.
16. 'J' the owner of a car wants to engage an agent for sale at a price of Rs. 50,000/ -. The agent
handed over his car to 'P' an agent, who purchased car in good faith. 'P' sold the car for Rs. 40,000/-

to 'A', who paid the money. 'J' sues 'A' to recover the car. Decide by giving reasons whether 'J' would
succeed.

Part A · 6 marks

  1. Continuing Guarantee.
    3× in bank Topics: Contract of indemnity and contract of guarantee
    Year and frequency →
  2. Particular Lien and General Lien.
    Year and frequency →
  3. Pledge.
    6× in bank Topics: Bailment and pledge
    Year and frequency →
  4. Del Credere Agent.
    2× in bank Topics: Duties of agent and principal; termination of agency
    Year and frequency →
  5. Unpaid Seller.
    8× in bank Topics: Unpaid seller's rights
    Year and frequency →
  6. Registration of a Firm.
    2× in bank
    Year and frequency →
  7. Partnership at Will.
    2× in bank Topics: Nature of partnership, relations of partners and third parties; Dissolution of firm and limited liability partnership
    Year and frequency →
  8. "Nemo dat quod non habet."
    2× in bank Topics: Transfer of property and risk; nemo dat quod non habet
    Year and frequency →

Part B · 15 marks

  1. Define "Contract of Guarantee" and discuss the Rights of a Surety.
    Topics: Contract of sale, goods and formation; Contract of indemnity and contract of guarantee; Unpaid seller's rights
    Year and frequency →
  2. Explain the various modes by which an Agency may be terminated.
    Topics: Duties of agent and principal; termination of agency
    Year and frequency →
  3. Discuss the Implied Conditions and Warranties governing the transaction of Sale of Goods.
    Topics: Contract of sale, goods and formation; Conditions, warranties and caveat emptor
    Year and frequency →
  4. What are the various modes for Dissolution of a Partnership Firm?
    Topics: Nature of partnership, relations of partners and third parties; Dissolution of firm and limited liability partnership
    Year and frequency →

Part C · 10 marks

  1. 'X' employed a goldsmith for converting her old jewellery and making new ones out of it. Every evening she received the unfinished jewellery and put it into 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.
    Year and frequency →
  2. '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?
    Topics: Unpaid seller's rights
    Year and frequency →
  3. '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.
    Topics: Contract of indemnity and contract of guarantee; Dissolution of firm and limited liability partnership
    Year and frequency →
  4. 'J' the owner of a car wants to engage an agent for sale at a price of Rs. 50,000/ -. The agent handed over his car to 'P' an agent, who purchased car in good faith. 'P' sold the car for Rs. 40,000/- to 'A', who paid the money. 'J' sues 'A' to recover the car. Decide by giving reasons whether 'J' would succeed.
    Topics: Duties of agent and principal; termination of agency
    Year and frequency →