Osmania University · Faculty of Law
Law of Contract – II · July/August 2019
July/August 2019 · Law of Contract – II · Semester 2
FACULTY OF LAW
LL.B. (3 YDC) / LL.B. (Hon.) (3 YDC) I - Year II - Semester Examination, July / August 2019
Subject: LAW
PAPER - I: LAW OF CONTRACT - II
Code No. 15106/BL | Time: 3 Hours | Max. Marks: 80
PART - A (5 x 6 = 30 Marks) — Answer any five of the following.
1. Contract of Guarantee.
2. Caveat Emptor.
3. Auction Sale.
4. Unpaid Seller.
5. Rights of Pawner.
6. Delegation of Authority.
7. Hypothecation.
8. Rights of the Surety.
PART - B (2 x 15 = 30 Marks) — Answer any two of the following.
9. Define "Bailment". What are its essentials?
10. Define "Contract of Guarantee". What are the effects of misrepresentation and concealment on
contract of guarantee?
11. Explain the circumstances in which a surety is discharged from liability.
12. Discuss the different modes in which the authority of an agent may be terminated.
PART - C (2 x 10 = 20 Marks) — Answer any two of the following.
13. Mohan Lal delivers diamonds to Neel Kamal on sale or return basis. Neel Kamal delivers the
diamonds to Om Prakash on sale or return. An unknown person takes away the diamonds from Om
Prakash. Can Mohan Lal file a case against Neel Kamal for the price of the diamonds?
14. A agrees to indemnify 'B', a newspaper proprietor against claims arising out of the libel printed
in the newspaper concerning a person of repute. Is this a valid agreement?
15. 'G' Contracts with H to buy 50 easy chairs of a certain quality. H delivers 25 chairs of the type
agreed upon and 25 chairs of some other type. Does 'G' reject the chairs?
16. Raju, a partner of a firm, borrows money on his own credit by giving his own promissory note,
for the same, but he subsequently uses the proceeds of the note in the partnership concern of his
own free will without any reference to the lender to do so. Is the firm liable for the loan?