Osmania University · Faculty of Law
Law of Contract – II · September/October 2017
September/October 2017 · Law of Contract – II · Semester 2
FACULTY OF LAW
LL.B. (3 YDC) / LL.B. Honours (3 YDC) I - Year II - Semester Examination, September / October 2017
Subject: LAW
PAPER - I: LAW OF CONTRACT - II
Code No: 1659 | Time: 3 Hours | Max. Marks: 80
PART - A (5 x 6 = 30 Marks) — Answer any five of the following.
1. Contract of Indemnity.
2. Contract of "Suretyship".
3. Simple Guarantee.
4. Movable Goods.
5. Agency by Operation of Law.
6. Specific Goods.
7. Actual Delivery.
8. Mercantile Agent.
PART - B (2 x 15 = 30 Marks) — Answer any two of the following questions.
9. Explain what actions and omissions would discharge a Surety from obligations.
10. Discuss the Duties and Rights of Bailor and Bailee with suitable Case Laws.
11. Discuss the Position of Undisclosed Principal in the Law of Agency.
12. What are the Circumstances in which a Non-Owner of Goods can convey a Good Title to Goods?
PART - C (2 x 10 = 20 Marks) — Answer any two of the following questions.
13. 'B' is the principal debtor of 'A'. C is the surety of the debt. A, the creditor makes a promise to a
neighbour of 'B' to give time to 'B'. Discuss the effect if any of this promise on the contract of
guarantee.
14. 'A' being Y's agent for the sale of goods, induces K to buy them by a misrepresentation, which 'X'
was not authorised by 'Y' to make. Can this contract be set side at the option of K? State the
reasons for your answer.
15. A sells goods to 'B'. B pays to 'A' through a cheque. Before B could obtain the delivery of goods,
his cheque has been dishonoured by the bank. A, therefore refuses to give delivery of the goods
until paid. Is A's action justified or not?
16. 'A' holds a lease from 'B' terminable on three months' notice. C without B's authority, gives
notice of termination to 'A'. B ratifies the notice and files a suit for rejectment. 'B' is entitled to get
decree or not.