Law of Contract – II · Semester 2

Law of Contract – II · September/October 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 · September/October 2012

September/October 2012 · Law of Contract – II · Semester 2

FACULTY OF LAW
LL.B. (3 YDC) I Year II Semester Examination, September / October 2012
Subject: LAW
PAPER - I: LAW OF CONTRACT - II
Code: 1007/R | Time: 3 Hours | Max. Marks: 80
PART - A (5 x 6 = 30 Marks) — Write short notes on any five of the following.
1. Contract of Indemnity.
2. Pledge.
3. Continuing Guarantee.
4. Del Credere Agent.
5. Unpaid Seller.
6. Caveat Emptor.
7. The Property of Firm.
8. Compulsory Dissolution of a Firm.
PART - B (2 x 15 = 30 Marks) — Answer any two of the following.
9. What are the essential Characteristics of Contract of Guarantee? Distinguish between Indemnity
and Guarantee.
10. Explain the Rights of Agent against Principal.
11. Discuss the Rights and Duties of Partners.
12. Define "Property". Explain the Possession of and Rules relating to Passing of Property.
PART - C (2 x 10 = 20 Marks) — Answer any two of the following.
13. A gave his watch for repair to B. B misplaced it. What is the liability of B? Discuss the relevant
law.
14. A retailer received the goods from an agent of the firm X and paid the amount to the agent who
misappropriated it. Discuss the liability of the agent and the firm X.
15. A partner filed a criminal case against a person accusing him of theft of the firm's assets.
However, the court found the accused innocent. Then the accused filed Suit against the firm for
damages and malicious prosecution. Is the firm liable? Discuss.
16. M offered to sell his motor vehicle to N and received a cheque from him towards the advance.
N, then sold the vehicle to O. The cheque issued by N to M was dishonoured. Consequently M sued
N to return the vehicle. Decide.

Part A · 6 marks

  1. Contract of Indemnity.
    7× in bank Topics: Contract of indemnity and contract of guarantee; Contract of sale, goods and formation
    Year and frequency →
  2. Pledge.
    6× in bank Topics: Bailment and pledge
    Year and frequency →
  3. Continuing Guarantee.
    3× in bank Topics: Contract of indemnity and contract of guarantee
    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. Caveat Emptor.
    10× in bank Topics: Conditions, warranties and caveat emptor
    Year and frequency →
  7. The Property of Firm.
    Topics: Transfer of property and risk; nemo dat quod non habet
    Year and frequency →
  8. Compulsory Dissolution of a Firm.
    Topics: Dissolution of firm and limited liability partnership
    Year and frequency →

Part B · 15 marks

  1. What are the essential Characteristics of Contract of Guarantee? Distinguish between Indemnity and Guarantee.
    2× in bank Topics: Contract of indemnity and contract of guarantee; Contract of sale, goods and formation
    Year and frequency →
  2. Explain the Rights of Agent against Principal.
    2× in bank Topics: Unpaid seller's rights; Duties of agent and principal; termination of agency
    Year and frequency →
  3. Discuss the Rights and Duties of Partners.
    Topics: Nature of partnership, relations of partners and third parties; Unpaid seller's rights; Duties of agent and principal; termination of agency
    Year and frequency →
  4. Define "Property". Explain the Possession of and Rules relating to Passing of Property.
    Topics: Transfer of property and risk; nemo dat quod non habet
    Year and frequency →

Part C · 10 marks

  1. A gave his watch for repair to B. B misplaced it. What is the liability of B? Discuss the relevant law.
    Topics: Dissolution of firm and limited liability partnership
    Year and frequency →
  2. A retailer received the goods from an agent of the firm X and paid the amount to the agent who misappropriated it. Discuss the liability of the agent and the firm X.
    Topics: Contract of sale, goods and formation; Dissolution of firm and limited liability partnership; Duties of agent and principal; termination of agency
    Year and frequency →
  3. A partner filed a criminal case against a person accusing him of theft of the firm's assets. However, the court found the accused innocent. Then the accused filed Suit against the firm for damages and malicious prosecution. Is the firm liable? Discuss.
    Year and frequency →
  4. M offered to sell his motor vehicle to N and received a cheque from him towards the advance. N, then sold the vehicle to O. The cheque issued by N to M was dishonoured. Consequently M sued N to return the vehicle. Decide.
    Year and frequency →