Assignment A

1.

Marks - 10

The fundamental attribute of corporate personality is that company is a legal entity distinct from the members.Elucidate the statement .Also specify the important features of a company. Elaborately explain the essential features of the consumer protection act 1986. Also briefly discuss unfair trade practice and restrictive trade practice as discussed under consumer protection Act? What are the characteristics of negotiable Instrument? Discuss the privileges of holder in due course as per the provisions of the Negotiable Instruments Act, 1881? Also state the important amendment to be incorporated under sec 138 of the act. Discuss the essential elements of a valid contract. Write short notes on any three of the following. (a) A stranger to the consideration can enforce the contract. Explain the exceptions in the following.

2.

3.

4. 5.

i-

Supervening Impossibility iiNovation

(b)Anticipatory breach of Contract (c) A private company has only 2 shareholders who are also the directors with equal rights of management and voting power. The company has made large profits, but there is a complete deadlock in the management of the company. One of the shareholders applied for the winding up of the company. Decide at what moment does a winding up by the court commence? (d) What is a Prospectus? Is it obligatory for a company to file a prospectus or a statement in lieu of prospectus with the Registrar of Companies? (e)
6. 7. 8.

What is meant by the rule of Caveat Emptor and what are its exceptions?

Explain - different modes of crossing of a cheque and section 138 as per the provisions of the Negotiable Instrument Act, 1881. A company is a legal person distinct from its members taken individually or collectively. Comment. Also detail the important features of a company. Discuss consumer dispute redressal forums & consumer councils with respect to its pecuniary (Financial) jurisdictions?

Assignment- B

Marks - 10

Read the case study given below and answer the questions given at the end

Case Study

Aditya Mass Communication Private Limited Vs A.P. state Road Transport Corporation A.P. State Road Transport Corporation, Hyderabad advertised tender notice on calling for tenders for display of advertisements on the buses owned by it. According to the condition of the Tender Notice, each tender form had to be accompanied by a demand draft for Rs 20 lakhs and tender forms completed in all respects had to be put in the tender box. The accompanying sum of money was the Earnest Money Deposit (E.M.D). Clause (10) of the terms provided that the tender will be opened at 3:00 p.m. on October 31, 1996, in presence of the tenderers or their authorized agents. Clause (14) provided that tenderers will not be permitted to withdraw their tender after the tenders were opened .Clause (15) provided that if the highest tenderer backs out from taking up the agency , for whatsoever reason, the E.M.D. paid by him will be forfeited. Aditya mass Communication Private Limited submitted its duly filled tender along with demand draft of Rs. 20 lakhs. In relation to this tender, another person approached the High Court and got an order restraining the Transport Corporation from proceeding further with the tender. Following the order, the A.P. State Road Transport Corporation opened the tender box at 3 p.m. and found six sealed covers. In view of the directions of the High Court, the covers were again placed back in the tender box without opening the seals. The signature of the tenderers and their agents was taken to this effect .The tenders were not opened to find out the highest bidder. Aditya Mass Communication Private Limited wrote a letter on November 11, 1996 stating that no reasons were given to him for non-opening of the tenders and that he could not keep the huge amount of Rs 20 lakhs locked in with all the uncertainty associated with the tender. It, thus, requested for return of the Earnest Money Deposit. A.P. State Road Transport Corporation replied on November 14, 1996 that the Aditya Mass communication had signed on the note recording the proceedings of opening the tender box and putting back sealed covers. Thus, it could not put up the argument that no reasons for non-opening of the tender was given on it. The letter notified that the tenders would be opened on November 16, 1996 at 11:30 hrs. Aditya Mass Communication once again wrote a letter on November 15, 1996 that the question of their participation in the opening of tenders did not arise as they asked for the return of E.M.D. The A.P. State Road Transport Corporation went ahead with the opening of the tender, found Aditya Mass Communication to be the highest bidder and awarded the tender to it. Aditya Mass Communication was informed of this but it demanded refund of Earnest Money Deposit. The A.P. State Road Transport Corporation following the terms of tender forfeited the earnest money deposit of Aditya Mass Communication.

Assignment C

Objectives Questions:

Question No. 1 Annual general Meeting is required to be held--Options

Marks - 10

By a private company only By a public company only By a company limited by guarantee only

By all kinds of companies

Question No. 2 An acceptance is complete and effective only when it has been--Options

Communicated to the offerer Merely mentally accepted Externally manifested Kept in the drawer

Question No. 3

Name of a company can be changed by passing a special resolution and with the approval of-Options

The company law tribunal The Central Government The Registrar of Companies none of the above

Question No. 4 Which of the following is a mode of discharge of contract--Options

By impossibility of performance By lapsse of time By breach of contract All of the above

Question No. 5 Limited liability means liability of its---

Options

Debtors is limited Creditors is limited Members is limited Debenture holders is limited

Question No. 6 In a contract of sale, property means--Options

Raw Materials Movable goods Ownership Immovable property

Question No. 7 The goods which are yet to be acquired by the seller, are called---

Options

Existing Goods Contingent Goods Unascertained goods Future goods

Question No. 8 A contract becomes voidable if it has been caused by--Options

Coercion Fraud Undue Influence

All of them

Question No. 9 If the goods have perished, the contract of sale of such specific goods, will become--Options

voidable void illegal None of these

Question No. 10 Articles can be altered by--Options

Ordinary resolution Special Resolution Resolution requiring special notice Unanimous resolution

Question No. 11 A contract entered into between the parties by words is called--Options

An express contract An implied contract A quasi Contract An excited contract

Question No. 12 Acceptance of an offer is complete as against the offeror as soon as---

Options

The offerer knows about it The letter of acceptance is posted The letter f acceptance is signed by offeree The letter is handed over to a delivery person

Question No. 13 If a company fails to pay its debts suit can be filed against the--Options

Directors Members Officers Company

Question No. 14 A contract with a minor is--Options

Illegal Valid Void Voidable

Question No. 15 Who is liable for the supply of necessaries to a minor--Options

His guardian

His Manager His property He himself

Question No. 17 When, before the contract becomes due for performance, the promisor declares his intention of not performing his promise, it is called--Options

Remission Waiver Alteration Anticipatory breach

Question No. 18 A bailment cannot be made about--Options

Car Furniture Money Television

Question No. 19 The damages which arise in the usual course of things happening from the breach of contract, are called--Options

Remote Damages Ordinary damages Special damages

Nominal Damages

Question No. 20 When a person is employed to represent another in dealings with third person, it is a contract of--Options

Bailment Guarantee Agency Pledge

Question No. 21 Which of the following is not an essential element of a contract of sale--Options

Goods as subject matter Transfer of property in goods Price Railway receipts

Question No. 22 In return for a new television, Raju agrees to give his old television valued at Rs. 3,000 and an amount of cash worth Rs. 5,000 to Ganesh. This is a--Options

Barter Exchange Contract of sale of goods Sale of approval

Question No. 23 Which of the following rights is held by an unpaid seller--Options

Right of lien Right of stoppage in transit Right of resale All of these

Question No. 24 After exercising the right of lien, the seller can resell the goods of perishable nature--Options

After giving 7 days notice of resale to buyer After giving one week's Notice Without giving any notice None of these

Question No. 25 Which of the following is not a remedy for breach of contract--Options

Rescission of the contract Restitution of benefit Suit for damages Alteration of the contract

Question No. 26 A contract by which one party promises to save the other from loss is called--Options

Contract of guarantee Contract of indemnity Quasi contract None of these

Question No. 27 Suretys liability is--Options

Primary Secondary Absolute None of these

Question No. 28 Crossed cheques payable to bearer are negotiated by--Options

Endorsement & delivery Delivery Assignment None of these

Question No. 29 In a contract of sale, which of the following is treated as implied condition--Options

That the seller has title to goods That goods are similar to description That goods are according to sample shown

All of these

Question No. 30 Consideration must move at the desire of--Options

The Promisor The promisee A third party None of them

Question No. 31 Which of the following does not relate to termination of agency by operation of law--Options

Death of principal Insolvency of principal Destruction of subject-matter Revocation of authority by the principal

Question No. 32 Which of the following sentence is a valid promissory note--Options

I promise to pay Mohan or order Rs. 1,000. I promise to pay Hari Rs. 2,000 worth of shares.. I promise to pay Naraynan in East India Bonds I promise to pay Rakesh Rs. 5,000 and to deliver 50 kg of sugar.

Question No. 33 A stipulation collateral to the main purpose of the contract, is called a--Options

Condition Warranty Guarantee None of these

Question No. 34 A person who receives a negotiable instrument for consideration, before maturity, and in good faith, is called--Options

Holder for value Holder Holder in due course None of these

Question No. 35 A director must vacate his office if he fails to obtain qualification shares within--Options

1 week two weeks One month two months

Question No. 36 Which of the following rights are available to a finder of goods---

Options

Right of lien Right to file a suit for reward Right of sale of goods All of these

Question No. 37 A private company has at least--Options

7 members 3 members 3 directors 2 Members

Question No. 38 A cheque payable to order may be negotiated--Options

by delivery By endorsement By endorsement & delivery None of these

Question No. 39 Which of the following endorsements is invalid--Options

Restrictive endorsement Conditional endorsement Special endorsement

Partial endorsement

Question No. 40 When a cheque bears across its face an addition of the words & between two parallel transverse lines, it is called --Options

Special crossing Restrictive crossing General crossing Double crossing