Osmania University · Faculty of Law
Law of Contract – II · September 2014
September 2014 · Law of Contract – II · Semester 2
FACULTY OF LAW
Law (3-YDC) II Semester Examinations, September, 2014
PAPER - I: LAW OF CONTRACT - II
Code: 83112 | Time: 3 Hours | Max. Marks: 80
PART - A (5 x 6 = 30 Marks) — Answer any five of the following.
1. Indemnity.
2. Bailment.
3. Caveat Emptor.
4. Unpaid Seller.
5. Limited Liability Partnership.
6. Dissolution of Partnership.
7. Pledge.
8. Warranties.
PART - B (2 x 15 = 30 Marks) — Answer any two of the following.
9. Discuss the Definition of Guarantee and the essential Characteristics of Contract of Guarantee.
10. Explain the Rights and Duties of Seller and Buyer before and after Sale.
11. What are the essential Characteristics of Contract of Guarantee? Distinguish between Indemnity
and Guarantee.
12. Explain the Rights of Agent against Principal.
PART - C (2 x 10 = 20 Marks) — Answer any two of the following.
13. 'A' and 'B' are the Partners in a firm. 'A' is the managing partner who managed the firm for 3
years and misappropriated the funds. 'B' wanted to file a Suit regarding Settlement of Accounts.
Advise B.
14. A sells to B a horse and agrees to deliver it the coming week. B agreed to pay the price on
delivery. But the horse died before it is delivered. Who has to suffer the loss?
15. 'A' lends a book to 'B' and 'B' promises to return it one week before examinations. B did not
return it in spite of 'A's' repeated demands. A sues B for breach of contract and claims damages. B
pleads absence of consideration and therefore not a contract. Decide.
16. A advances to B a minor, Rs. 50,000 on the guarantee of C. On demand for repayment, B refuses
to pay on the ground of minority. Can A recover the amount from C.