JSM
Law of Contract

Time: 3 hours
Full Marks: 150
The figures in the right-hand margin indicate maries.
Answersixquestions, selecting two questions
each from any two Sections and one
each from remaining two Sections.

Section-A
1. "The Indian Contract Act, 1872 contains certain provisions which impose contractual liability on a person under certain circumstances even if he never entered into contract." Discuss this statement with the help of statutory provisions and decided cases.
15
."Damages are compensatory not penal." Elucidate. 10
2. Analysethedefinitionofconsiderationgiven
WN-6/4 (Turnover) intheContractAct. Explainitsmainelements with the help ofdecided cases.
15
while still a minor by falsely representing himselftobetheage ofmajorityentered into an agreement to sell his house to and took from him a sum of Rs. 251akb as full and final consideration amount. However later
.refused to execute the sale deed of his house in favour of B on the plea of minority. Decide .. the case with the help ofstatutoryprovisions and decided cases. . 10
3. "The liability of surety presupposes the existence of a separate liability of the principal debtor. His liability is thus secondary orcollateral which comes into existence only in default by the principal debtor." In the light of this statement, discuss the nature of surety's liability. 15
A surety gives the guarantee to the tune of Rs. 25,ODDJor an overdraft to be allowed by the bank to the principal debtor. The bank and
WN-6/4 Contd.

principal debtor altered this amount of guarantee from Rs. 25,000 to Rs. 20,000 .without consent ofsurety. Decide with the help of decided cases. 10
Section
4.
"A vendor is bound not to disguise or artifice the goods to conceal the defects but under the doctrine of caveat emptor ordinarily he is not bound todisclose every defect ofthe goods." In the lightofthisstatementexplainthedoctrineof caveat emptor and point out its exceptions. 25

5.
Who is unpaid seller? What are the rights of unpaidseller against goods? 15

A person purchased a second hand car from a dealer by making payment. He used the car for a few months. Then police seized the car as stolen one. Can he recover full price. from the seller? Decide. 10

6.
When the property in the goods passes from the seller to buyer? Discuss the significance ofpassing of property. 15


WN-.6/4 Turn over)


WN-6/4 Contd.
to him. After filing the suit but before actual
hearings in the suit, the firm is registered. Is
the suit maintainable?
10
9. Generally a person who is not a partner in the firm cannot be made liable for the acts of . the firm. Discuss the cases where liability of a non-partner can arise as 8. partner. 15
. Discuss the circumstances under which a firm may be dissolved by the Court. 10
Section
10. Discuss that holder in due course' is a 'holder' but a 'holder' is not 'holder in due course', 15
"Every cheque is a bill ofexchange but every
bill of exchange is not a cheque." Explain. 10
11. What is an endorsement Explain and illustratethedifferentkinds ofendorsements.
15
WN-6/4 (Turn over)
When a cheque is said to be dishonoured? Discuss the statutory provisions relating to dishonour of cheques. 10
12. Define a Negotiable Instrument. Explain the main features of Negotiable Instruments. What are the main categories of Negotiable Instrument? 25

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