Unique Paper Code 205
Revised 0 of 30

Business LawsMarch 2023

B.Com (Hons) · 5 questions

Duration: 3 HoursMaximum Marks: 90

Reworded by Kunji from the printed paper. The original paper belongs to the University of Delhi. See DU's question bank.

Before you start

  1. Most asked here. Contract of sale, goods and property (12 papers), Conversion into LLP (11 papers), LLP: partners, designated partners, liability, whistle-blowing (10 papers). These come back almost every year, so learn them first. The asked N× note beside each part counts the DU papers that set its topic.
  2. Pace. Two minutes a mark: about 36 minutes for each 18-mark question, with nothing spare in 3 hours. Pick your side of each OR before you start writing.
  3. Keep score. Every part opens a worked answer checked against the books. Turn the key when you have revised it; the boxes at the top fill in, on this device.

1.

18 marks
· ~36 min
(a)Act done in ignorance of an offerGiving reasons, state whether each statement below is true or false : (i) Anything done in ignorance of an offer does not amount to acceptance.(4)
(a)Consideration must be present but need not be adequateGiving reasons, state whether each statement below is true or false : (ii) The presence of consideration is required, but its adequacy is not.(4)
(a)Transactions collateral to illegal agreementsGiving reasons, state whether each statement below is true or false : (iii) Transactions that are collateral to illegal agreements are not always illegal.(4)
(b)Promise made on majority to repay a loan taken during minorityasked 7×A minor borrows 45000 at 9% interest. After attaining majority, he promises afresh to repay the loan he took while a minor. Is this promise enforceable by the lender.(6)
OR
(a)A stranger to consideration who is a party to the contractComment critically on each of the following : (i) A stranger to consideration can sue provided he is a party to the contract.(4)
(a)Unilateral mistakeComment critically on each of the following : (ii) A unilateral mistake does not affect a contract.(4)
(a)Mere mental assent is no acceptanceComment critically on each of the following : (iii) Mere mental assent is not acceptance.(4)
(b)Sale of an artificial jewellery business; seller starts a real jewellery businessasked 8×Suresh sold Peter his artificial Jewellery business in Mumbai. Suresh promised that for two years he would not do any business relating to real or artificial jewellery anywhere in Mumbai. But a month later he started a…(6)

2.

18 marks
· ~36 min
(a)When a sub-agent may be appointed, and the principal's liability to third partiesasked 7×Discuss when a sub agent may be appointed and when one may not be appointed. What impact will it have on the principal’s liability toward third parties.(6)
(b)Indemnity and guarantee distinguishedasked 8×Differentiate between indemnity and guarantee.(6)
(c)Kartik finds jewellery in the office corridor: his position, rights and dutiesasked 6×Kartik finds jewellery lying on the corridors of his office. What is Kartik’s position? Explain his rights and duties.(6)
OR
(a)The surety's liability is co-extensive with the principal debtor'sasked 8דThe Liability of a Surety is co-extensive with the liability of the Principal Debtor”. Comment.(6)
(b)Ratification relates back: it is equivalent to prior authorityasked 7×Ratification tantamounts to prior authority. Discuss.(6)
(c)Bailment and pledge distinguishedasked 6×Differentiate between Bailment and Pledge.(6)

3.

18 marks
· ~36 min
(a)No implied condition as to quality or fitness: caveat emptor and its exceptionsasked 9דThere is no implied condition as to the quality and fitness of goods for the buyer’s purpose in a contract of sale”. Comment.(6)
(b)Buyer's remedies where the seller delivers the wrong quantity or qualityasked 9×If the seller delivers the wrong quantity or the wrong quality of goods, what remedies does the buyer have?(6)
(c)Seller in possession resells: can the first buyer recover the TV?asked 4×A sells a TV to B for 60000. Ownership has passed to the buyer, but the TV has not yet been delivered to B. By mistake, A then sells the same TV to C for 60000. Can B now take the TV back from C.(6)
OR
(a)Stoppage in transit as an extension of the unpaid seller's lienasked 5דFor an unpaid seller, the right of stoppage in transit extends the right of lien”. Comment.(6)
(b)Rules for transfer of ownership in ascertained (specific) goodsasked 12×Discuss the rules on transfer of ownership in ascertained goods.(6)
(c)Varun's juice ordered in cases of 24 tins, delivered in cases of 12asked 9×Varun orders 600 tins of fruit Juice, packed in cases of 24 tins each. Varun received the juice, but it came packed in cases holding 12 tins each, though the quality of the juice was the same. Can A reject the goods?(6)

4.

18 marks
· ~36 min
(a)An LLP combines the advantages of a traditional partnership and a companyasked 10×A Limited Liability Partnership combines the advantages of both the Traditional Partnership and the Company. Discuss.(6)
(b)Procedure to change the registered office of an LLPasked 9×Discuss the procedure to change the registered office of an LLP.(6)
(c)How an LLP is incorporatedasked 9×How is an LLP incorporated? Discuss.(6)
OR
(a)Steps in forming an LLP onlineasked 9×Discuss the steps to be followed in forming an LLP online.(6)
(b)Designated partners: who can be one, and their roleasked 10×Discuss the qualifications / disqualifications for being a Designated Partner of an LLP. What is the role of a Designated partner in an LLP?(6)
(c)Choosing and changing the name of an LLPasked 9×Write a note on choosing and changing the name of an LLP.(6)

5.

18 marks
· ~36 min
(a)Impossibility, not mere difficulty, discharges a contractasked 7דImpossibility does discharge a contract, but difficulty of performance does not”. Comment, giving examples.(9)
(c)Converting a traditional partnership into an LLP: procedure and consequencesasked 11×Discuss the procedure for converting a traditional Partnership into an LLP. What will be the consequences of such a conversion?(9)
OR
(a)Rules for claiming damages for breach of contractasked 7×Giving suitable examples, discuss the rules for claiming damages for breach of contract.(9)
(b)Private company and LLP distinguishedasked 10×Differentiate between Private Company and Limited Liability Partnership.(9)

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