Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
200311402
Q 1). Define a contract and explain in detail the essential elements of a valid
contract?
Page 1 of 17
Business Law Rag No. 200311402
The object must also not be forbidden by law. It must also not be of
such nature that if permitted, it will defeat the provisions of Law or impute
injury to the person or property of another.
Page 2 of 17
Business Law Rag No. 200311402
Q 3). What do you mean by Discharge of contract? What are the various ways
in which a contract may be discharged?
Ans.4) Agents on the basis of point of view adopted can be classified into
various ways. From authority view point, they can be classified as a special
Agents, General Agents and Universal Agents. They are also classified as
mercantile or commercial agents and non mercantile or non-commercial agents.
Auctioneers, Brokers, Factors , Commission agents are the types or class of
Mercantile or Commercial agent while Attorneys, Solicitors, Wife etc. are
examples of different kinds of Agents.
a) Special Agent:
A special agent is also known as particular or specific Agent. He
may be appointed to do a specific work or represent his principal in specific
transaction only. A special Agency lasts for a particular period of time or
for a specific type of job or work. As soon as the period lapses or the task
or job for which he is appointed is finished, the agency stands terminated.
b) General Agent:
Such an Agent has to perform all the acts in the interest of his
principal and he has got a general authority to do everything in the course
of his agency. Thus a General Agent is one who has the authority to do all
acts connected with the business or trade of his principal.
A shop or Branch office Manager are examples of a General Agent.
c) Universal Agent:
A Universal Agent has an unlimited power to act on behalf of his
principal. He is the one whose authority is unlimited and who can do any
act on behalf of his principal if such an act is legal and not prohibited by the
law of land. A Universal agent is more of a substitute for his principal to all
those transactions where the principal cannot be there. Broadly speaking,
a Universal agent is more of a General Agent with extensive powers.
Page 4 of 17
Business Law Rag No. 200311402
d) Co-Agents:
When two or more persons are appointed as agents jointly and
severally or jointly or severally, they are known as Co-agents. When there
is no mention made about the exercise of their authority, it is joint. But
when their authority is several, any one of the Co-agents can act without
the concurrence of the other.
e) Sub-Agents:
A person employed and acting under the control of the original
agent in the business of agency is defined as a Sub-Agent (Sec. 191).
This means, a sub-agent is responsible for his acts to the agent and not to
the principal except in case of fraud and willful wrong (Sec. 192). Thus, the
principal can hold his agent responsible for the acts of Sub-Agents.
f) Substitute Agents:
Sections 194 and 195 deal with substituted agents. Section 194
discloses the nature of a substituted agent and accordingly, when an agent
holding an express or implied authority to name another person to act for
and on behalf of his principal, in his business, such agent is known as
Substituted agent.
g) Broker:
A broker is a special type of Mercantile agent who acts as a
middleman between the buyer and the seller. He brings about a
contractual relationship between the buyer and the seller for the sale or
purchase of goods, properties, shares, securities etc. No sooner the
transaction is completed his authority ends.
h) Auctioneer:
An Auctioneer is a Mercantile agent who is appointed to sell goods
on behalf of the principal i.e. the seller. For carrying out the function, the
Auctioneer gets remuneration in the form of a commission. He conducts
the auction on behalf of the seller as he is an agent of the seller.
Page 5 of 17
Business Law Rag No. 200311402
Ans. Rights:
2) Right in emergency:
In an emergency, an agent has an authority to do any such act/s
which are essential for the purpose of protecting his principal from loss as
would be done by a person of ordinary prudence, under similar
circumstances.(Section 189)
Page 6 of 17
Business Law Rag No. 200311402
Duties:
Page 7 of 17
Business Law Rag No. 200311402
Ans.6) Section 11 of the Indian Partnership Act confers the following rights upon
all partners.
1) Right to take part in the business (S.12(a)):
Section 12(a) lays down that subject to the conduct of the
partnership, every partner has a right to take part in the conduct of the
business of the firm. This is based on the general principle that partnership
business is common business of all partners.
Page 9 of 17
Business Law Rag No. 200311402
Q 8) Distinguish between sale and an agreement to sell and explain fully the
essentials of contract of sale of goods.
(C)Transfer of Property.
There must be a transfer of general property i.e. ownership and not
special property. In the goods from the seller to the buyer. Suppose X
owns certain types of goods, he has the general property of goods. If he
pledges the goods with Y, Y has special property in the goods when he
cannot sell.
(D)Monetary consideration–Price:
There must be money which must be the consideration for the
contract of sale. This is because if goods are exchanged for goods, its
barter and if goods are given without any considerations it amounts to a
gift. If goods are exchanged partly for goods and partly for money, that will
be a contract of sale.
Page 11 of 17
Business Law Rag No. 200311402
Q.9) Define the term, ‘Negotiable instrument’ and explain its types and various
parties of the types of Negotiable.
Parties to a Cheque:
a) Drawer:
A drawer is a person who draws a cheque on his bank. A drawer is
usually an Account holder of the bank.
b) Drawee:
The drawee is always the bank on whom a drawer draws a cheque.
c) The Payee:
The payee is the person to whom the amount is made payable.
The payee can be any person or organization.
d) Holder:
The holder of cheque may be either the payee or any other person
to whom the cheque is endorsed.
e) Endorser and Endorsee:
When the holder of the cheque endorses the cheque to somebody
else, he is called the endorser and the endorsee is the person to whom the
cheque is endorsed.
Page 13 of 17
Business Law Rag No. 200311402
a) Drawer:
A drawer of a Bill of exchange is a person who makes it.
b) Drawee:
A drawee is a person on whom the Bill of Exchange is drawn.
c) Acceptor:
A person who accepts the bills is an acceptor. After the drawee has
put his signature on the bill to show his acceptance, he is called acceptor.
d) Payee:
A payee is a person to whom the bill is made payable. A drawer or
any other person can be the payee. In short the payee is the beneficiary.
e) Endorser and Endorsee:
When a holder endorses or transfers the instrument to anybody
else, he becomes the endorser and the person to whom it is endorsed
becomes the endorsee.
f) Holder:
A person who is legally entitled the possession of a Bill of Exchange
in his own name and is entitled to receive the amount of the bill is called
the holder. He is either the original payee or the endorsee. If the bill is
payable to the bearer, he is the holder.
g) Drawee in case of need:
Drawee in case of need is a person to whom resort can be had in
case of need. If on presentation, the bill is dishonored either by non-
payment or non-acceptance, by the original drawee, the holder of the bill
has to present the same to the drawee in case of need.
Page 14 of 17
Business Law Rag No. 200311402
Ans.10) Following are the objects of enacting the consumer protection Act 1986:
a) To protect the interests of the consumers
b) To protect the interests of consumers by masking provisions for
establishing necessary consumer councils and other authorities.
c) To seek speedy and simple redressal to consumer disputes through
setting up quasi-judicial machinery at District, State and Central
levels.
Page 15 of 17
Business Law Rag No. 200311402
Q.11) How is a company formed under the Companies Act 1956? What are the
documents to be filed with the registrar of Companies?
3) Commencement of business:
The next step in the life of a company is to acquire legal capacity to
commence its business, for which it is formed. A company (not being a
private company) acquires legal capacity to commence its business only
when a certificate for commencement of business is issued by the
Registrar of Companies.
Page 16 of 17
Business Law Rag No. 200311402
Page 17 of 17