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IMT-54: Business Law-MT2

IMT-54: Business Law-MT2



Q1: Rohit had promised to his wife, Roshni, that he would pay her a sum of Rs 10,000 every month during the entire period of his posting outside the country. He continued to remit the promised amount to his wife for around a year, and thereafter he refused to keep his promise. Roshni filed a case against Rohit for recovery of the amount from him. Do you think that Roshni would win the case? Give reasons for your own legal opinion in the case?


Q2: Distinguish between contract of indemnity and guarantee?

Q3: X sells certain merchandise to Y warranting it to be of a particular quality, and Y in reliance upon this warranty, sells it to Z with a similar warranty. The goods prove to be not according to the warranty, and Y becomes liable to pay Z Rs 1,000 by way of compensation. Can Y recover Rs 1,000 from X?

Q4: Robert had committed robbery in the house of Shrikant, whereafter Shrikant had filed a Criminal case against Robert. Later on, they had entered into an agreement to the effect that Shrikant will drop the case against Robert if he (Robert) will return to Shrikant the value of the things, taken away by him. Do you think that this agreement will be held valid in the eye of law? Give reasons for your answer.

Q5: X picked up a diamond from the floor of Y's shop and handed it over to Y to keep it till owner is founded, Y did his best to find out the owner but true owner could not be found. After sometime, X offered Y the lawful charges incurred by Y for finding out the true owner and asked him to return the diamond to him. Y refused to do so. Discuss the legal position.


Q1: X appoints the following persons. State whether they can be called as agent of X:

(a)      A to cook food for X and X's family on a monthly salary of ^1,000.

(b)     B to furnish kitchen in his house for 10,000.

(c)      C to buy utensils for his kitchen for an agreed commission of 5% on purchases.

(d)     Mrs X to buy provisions for his kitchen without any commission on purchases.

(e)      D to advise on financial matters.

Q2: State whether the following contracts of sale amount to sale or an 'agreement to sell'.

Case (a): X entered into a contract for sale of the entire crop of rice that would yield

on his farm.

Case (b): A railway administration entered into a contract for sale of coal-ash that might accumulate during the period of contract.

Case (c): X entered into a contract for sale of some goods in a particular ship to be delivered on the arrival of the ship.

Case (d): X entered into a contract for sale of a painting only if Z, its present owner, sells it to him.

Q3: Distinguish between LLP and Company.

Q4: How will you register a company in India? Give the electronic procedure in detail.

Q5: What do you mean by Winding up of company? Give varies modes of dissolving a company.


Q1: Write a detailed note on Right to Information Act.

Q2: What Constitutes Anti-Competitive Agreements under the Competition Act, 2002?

Q3: Discuss the case of Spring Meadows Hospital v. Harjot Ahluwalia Through K. S. Ahluwalia. What important principals have evolved from this case law.

Q4. Explain the following

(1)  What is trademark and passing-off

Q5: What do you mean by 'bouncing of cheque'? What are legal remedies for dishonour of cheque?



Jagdish, a leading auctioneer, had advertised in the leading local newspapers that a sale of precious stones by auction would take place at 45, Park Street, Kolkata, on the 6th June 2009 from 10:00 am to 5:00 pm. Based on such advertisement, Reshma arrived at the appointed place at the appointed time, fully tired, after driving a rather long distance of around 240 km. But then, to her great dismay and disappointment, she found that the sale of the precious stones by auction was withdrawn.


1.          Disgusted on such irresponsible act on the part of Jagdish, the auctioneer, she
filed a suit against him, claiming compensation for her loss of time and

2.   What are the possibilities of her winning the case? Also specify the basis of
your contention.


Shaukat Ali had threatened Karamatullah that he will kill his wife Abida Begum if he does not pay him a sumof" 5, 00,000. Karamatullah had got scared and so had readily agreed to pay the amount of" 5,00,000 toShaukat Ali, as was demanded by him, and finally had paid the amount, as per his promise.

(i)                Do you think that a valid agreement had been entered into between Shaukat Ali and Karamatullah in the instant case? Give reasons for your answer

(ii) Can Shaukat Ali be asked to refund the amount to Karamatullah under any provision of law contained in the Act? If so, quote the relevant Section of the Act to substantiate your point of view.

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