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MERCANTILE LAW.
TIME ALLOWED: THREE HOURS MAXIMUM MARKS: 100
NOTE: Attempt FIVE questions in all including QUESTION No.8 which is COMPULSORY.
Allquestions carry EQUAL marks.
1. A firm of building contractors had contracted to build 50 houses in 10 months. The work took 20
months to complete because of the lack of skilled labour. The contractors pleaded that the contract price
was not bninding on them, and that they were entitled to 3 greater sum on the basis of a quantum meruit in
view of the extra labour costs involved because the contract had been frustrated. What are you
Comments?
2. Mr. Zulfiqar was offered the post of Professor of Law at X University on the condition that he would
get his practicing licence cancelled to cease law practice. Mr. Zulfiqar did not agree to cease to practice.
On this the University authorities refused to employ him in the post. Can Mr. Zulfiqar succeed in the suit
brought by him against the University for getting the job? Explain.
3. A company had power under its * Memorandum'—"to sell or lend all kinds of railway plant and to
carry on the business of mechanical engineers and contractors". Its directors agreed to build a dam to
produce hydra 1 power in country T and this agreement was ratified by the company. Develop your
answer keeping in view the legal importance of the object clause in a memorandum of a company.
6. Discuss the law regarding appointment of Umpire. Can the court remove the umpire and under what
circumstances?
NOTE: Attempt FIVE questions in all, including Question No.8 which is Compulsory. All questions
carry equal marks.
1. What are the various kinds of shares? Briefly give distinctive features of each.
4. (a) Explain 'consideration' as an element in a valid contract. State the exceptions to the rule that an
agreement without consideration is void.
5. State the various modes in which a contract may be discharged and the modes in which a man may be
discharged from the obligations of a contract.
6. (a) Explain the position and rights of a minor under the law of partnership.
7. Explain the general rule that no one can give a better title than he himself possesses. Discuss and
illustrate the exceptions to this rule.
COMPULSORY QUESTION
8. Write only the correct answers in the Answer Book. Don’t reproduce the questions.
(a) Its bearer (b) Only to a person specified therein (c) None of these.
(2) How a cheque is treated by a banker among the following when the balance at credit of drawer is
found insufficient"
(a) On receiving the value thereof. (b) Without receiving the value thereof.
(c) None of these.
(a) Any member of a Public limited Company can appoint more than one proxy to attend any meeting. (b)
A proxy must be member of the company (c) None of these.
(a) can be sold separately from other property of a firm. (b) cannot be sold separately. (c) is not saleable
commodity.
(7.) When undue influence is used in a contract by one party against the other, the contract becomes:
(a) The bailee can mix the goods of the bailor with his own goods under the law: (b) cannot mix
(b) the seller is duty bound to point out the defects in the goods.
(c) The buyer should be aware of the suitability of goods for his purpose.
(13) If the seller of immovable property has effected a fire insurance policy in respect of the property, the
purchaser, of the property:
(a) cannot claim any benefit of it. (b) can claim benefit as transferee of the property.
(c) to accept the terms of the policy by the insurer. (d) none of these.
(15) The grace period for every instrument payable at a specified period after date or after sight is:
(16) Special Resolution is passed at a general meeting of a Public Company when not less than the
following notice has been given:
(18) A company shall be eligible for registration as a Modaraba Company if its paid-up capital is not less
than:
(a) 2 million rupees. (b) 3 million rupees. (c) 2.5 million rupees.
(19) A and B are partners. A buys land with partnership moneys for his sole benefit. Thereafter, A debits
himself in the firm books and becomes a debtor to the firm for the amount of the purchase money. The
purchased property is:
(20) Whether a partner has got power to assign his partnership interest to any other person so as to make
him a partner in the business?
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