Business Law

UNIT-1
Q-1 Define the term Contract. What are the essential of a valid contract?
Q-2All Contracts are agreement but all agreement are not contracts Explain.
Q-3When does an agreement become a contract?
Q-4 Define offers what are the essential of a valid offer?
Q-5Consideration is a necessary element of a binding contract.
Q-6When does a minor attain the age of majority?
Q-7 Who are disqualified person to do contract?
Q-8 Parties to a contract must be competent to contract. Explain
Q-9 what are the remedies available to an aggrieved party in case of fraud?
Q-10Expain when consent is not said to be free. What is the effect of such consent on the
formation of the contract?
Q-11To form a valid contract, there must be a meeting of the mind of the parties.
Illustrate this statement.
Q-12 Mr. Seth an industrialist has been involved in a long-drawn litigation with
Mr.Raman, another industrialist. To support his legal campaign Mr. Seth enlists the
services of Mr. X, a legal expert, stating that an amount of Rs.5 Lakh would be paid if
Mr. does not take up the brief of Mr. Raman. Mr. agrees, but at the end of the litigation,
Mr. Seth refuses to pay. Decide whether Mr. can recover the amount promised by Mr.
Seth under the provision of Indian Contract Act, 1872.
Q-13 Discuss the law relating to contracts in restrain of marriage.
Q-14 what are the agreements which have been expressly declared to be void as per
Indian Contract Act, 1872.
Q-15 what do you understand by performance of a contract? Under what circumstances a
contract need not be performed?
Q-16 Comment on the following:
A minor is liable to pay for the necessaries of life supplied to him.

Q-17 what are the Quasi Contract? Explain briefly the quasi-contract for by the Indian
contract act.
Q-18 what are the various remedies available to a party in case of breach of contract?
Q-19 when in a contract it was agreed that a certain sum of money shall be paid if one of
the parties commits a breach of his agreement; is such party in default always liable to
pay the sum named?
Q-20 A invites B to dinner. B Accepts the invitation. A made elaborate arrangement but
B failed to turn up. Can A sue B for the loss he has suffered?
Q-21B offered to sell his car to A for Rs.95000/-. A accepts to purchase it for Rs.94500/-.
B refused to sell the car for Rs.94500/-subsequently A agrees to purchase the car for
Rs.95000/- but B refused to sell the car. A sues B for the specific performance of the
contract. Will he succeed?
Q-22 A, an adult said to m a minor. I will not pay the commission I promised you for
selling my magazines. You are a minor and can force me to pay. Is a right.
Q-23 A, sells a horse to B knowing fully well that horse is vicious. A does not disclose
the nature of the horse to b. Is the sale valid.
Q-24 A agrees to sell all the goods manufactured by him in the ensuing season to B. In
breach of the said agreement A sold some goods manufactured during the said season to
C. There upon B sued A for breach of contract. Will B succeed?
Q-25 P, Q, & R jointly promise to pay Z Rs.3000. P and Q are not traceable. Can Z
compel R to pay him in full?

UNIT-2
Q-1 Define the term Company. What are its characteristics?
Q-2 A company is an artificial person, created by law with a perpetual succession and a
common seal. Explain this statement.
Q-3 A company is a legal person distinct from its member taken individually or
collectively. Discuss? Are there any circumstances in which the law would disregard the
legal personality of company?
Q-4 Distinguish between a company and partnership.
Q-5 State in brief the various kinds of companies which can be registered under the
companies Act1956.
Q-6what is a foreign company? How far is it governed by the companys act 1956?
Q-7 write notes on :
(a) Holding Company
(b) One man company, and
(c) Statutory companies.
Q-8 Narrate the full procedure for conversion of public company into a private company?
Q-9 who are the promoters? State the duties and liabilities of promoters.
Q-10 A company cannot be a party to a contract before a it has come into existence.
Comment.
Q-11 Explain fully the doctrine of Ultra Virus in relation to companies? What are the
liabilities of a company and its agent for Ultra Virus acts?
Q-12 Memorandum of association is a charter of the company. Comment upon the
statement and explain the clauses which are included in a Memorandum of association of
a company.
Q-13 Distinguish between memorandum and articles of association.
Q-14 How the directors are appointed?
Q-15A director cant enter into a contract with the company. Examine statement.
Q-16 what are the qualification of director? State the disqualification also.

Q-17Director shall have all the powers of the company save & except those which either
by Articles or by statute are required to be exercised by the company in general meeting
. Discuss
Q-18 what are the restriction on appointment of directors.
Q-19 what is the minimum and the maximum number of director of a private and a public
company?
Q-20 who is director?
Q-21 Company X, its Managing Director and another person hold respective one-third of
the number of shares in another company Y. Is Company Y a subsidiary of company X?
Q-22 A private company issued debenture to the public. Does it become a public
company?
Q-23 A bank had power in the Articles to issue bonds under the authority of an ordinary
resolution. The directors issued bonds to T without the requisite resolution. T sued the
company for the recovery of the money under the bonds. The suit was on the ground that
there was no requisite resolution of the company. Will Ts suit succeed?
Q-24 During the war all the members of a private company, while in general meeting
were killed by bomb. Does the company cease to exist because all the members died?
State reason.
Q-25 The directors of a company borrowed money from L. They had the power to
borrow such money but only subject to the ordinary resolution passed at the general
meeting of the company. In fact no such resolution had been passed.
(a) is the company bound by the loan?
(b) Will it make any difference if the resolution required to be passed is special
resolution but not ordinary resolution?

UNIT-3
Q-1 Define Partnership. What are the essential elements of partnership?
Q-2How would you determine whether a group of person does or does not constitute a
partnership? Discuss fully.
Q-3 Discuss the mutual rights and duties of Partners.
Q-4 what are the rules determining partners mutual relations in the absence of a contract
to the contrary?
Q-5 what is meant by implied authority of a partner? Indicate the cases in which a partner
has no implied authority to bind the firm.
Q-6 An agreement is an essential ingredient in a partnership; it follows that a minor
cannot enter into an agreement of partnership. Discuss the above statement.
Q-7 writes a note on the right and liabilities of a minor partner.
Q-8 An act of a partner, which is done to carry on in the usual way business of the kind
carried on by the firm, binds the firm.
Q-9 writes a note on the rights and liabilities of a minor partner.
Q-10 can a new partner be introduced in the firm? When does his liability commence?
Q-11 In what different ways is it open to a partner to retire from the partnership firm and
how far would his retirement affect of third parties?
Q-12 in what circumstances may a partner be expelled from the firm? Discuss the
liability of an expelled partner?
Q-13 Dissolution of firm is different from dissolution of partnership. discuss.
Q-14 Explain the various ways in which a firm may be dissolved.
Q-15 Discuss right and liability of a Partner after the Dissolution of Partnership.
Q-16 on what grounds can a partnership be dissolved by the court? Explain.
Q-17 what is meant by registration of partnership firm under Indian Partnership Act
1932. Is such registration compulsory in respect of every firm?
Q-18 Must every partnership firm be registered? What are the consequences of nonregistration of firm?

Q-19 How and when may a partner retire? What are the rights and liabilities of a retiring
partner?
Q-20 Two partnership firms each having 12 partners amalgamate their business. In
contract entered into by the amalgamate firm is enforceable?
Q-21 A, B & C Co. is a newly constituted firm and commences business without
registration. Y is indebted to the firm is the sum of RS.5000 and the firm files a suit
against him for the recovery of the said sum and immediately thereafter gets itself
registered. Will the firm succeed?
Q-22 A and B were partners in an unregistered firm carrying on the business of sugar
manufacturing. C was advanced Rs.1000 by the firm in lieu of his promise to supply
sugarcane. There was short supply of sugarcane and Rs.700 were due from C to the
partnership firm. The partnership was afterwards dissolved and in a division of the assets
Of partnership, this debt of Rs.700 was allotted to A. Can A sue C to recover the amount?
Q-23 Do X and Y constitute partnership in the following cases:
(a) X and Y are co-owner of a house. They let-out the house and divide rent equally.
(b) X is a publisher of books. He published book written by Y at his own expense and
paid 20% of sale as royalty to Y.
(c) X and y are joint owners of a ship. X is responsible for the entire management of
ship and he takes two third of total earnings.

UNIT-4
Q-1 Explain clearly the essential elements which must co-exists for constituting a valid
sale of goods. In what respect does a sale differ from an agreement to sale?
Q-2 what is a contract of sale? State its essential characteristics.
Q-3 Distinguish between a sale and a hire-purchase agreement.
Q-4 Define the term Goods. Distinguish between specific and uncertain goods.
Q-5what is a contract of sale? Explain its essential also distinguish a contract of sale
from an agreement to sell.
Q-6 Explain the rules regarding ascertainment of price in a contract of sale.
Q-7 Define and distinguish between a condition and a warranty.
Q-8 under what circumstances can a breach of condition be treated as a breach of
warranty?
Q-9 Explain briefly the implied condition and warranties in a contract of sale.
Q-10 when does the property in the goods sold pass from the seller to the buyer?
Q-11 what are the unascertained goods? When does property pass in a contract for the
sale of such goods?
Q-12 Discuss the nature of C.I.F., F.O.B. and Ex-ship contracts.
Q-13 The general rule is that no seller of goods can give the buyer of goods a better title
to the goods than he himself has. Explain are there any exception any exception to it.
Q-14 Explain the circumstances under which sale of goods by non-owner are valid.
Q-15 what is Hire-Purchase Agreement?
Q-16 what is the difference between Hire-Purchase Agreement and Sale of Goods
Contract.

UNIT-5
Q-1 what is a bill of exchange? How does it differ from a promissory note and a Cheque?
Q-2 Define a promissory note. Distinguish it from a bill of exchange.
Q-3Discuss the significance and implication of marking a Cheque. Does the Marking of a
post dated Cheque bind the bankers who certified it?
Q-4 what is meant by the terms Crossing a Cheque? What are the various types of
crossing?
Q-5when is a payment on a negotiable instrument said to a payment in due course.
Q-6 who are the parties to a negotiable instrument?
Q-7 Discuss the liabilities of various parties to a negotiable instrument.
Q-8 Define the terms (1) Holder (2) Holder in due course.
Q-9 Define a holder of a bill and distinguish the holder from holder in due course.
Q-10 Every holder in due course must be a holder, but every holder may not be a holder
in due course. Discuss.
Q-11 Explain clearly what is meant by negotiation? How is it affected and how does it
differ from an ordinary assignment? Can an overdue instrument be negotiated?
Q-12 Define the term Endorsement what are the various classes of Endorsement.
Q-13 A negotiable instrument may be transferred by negotiation and assignment, but with
different consequence to the holder. Explain and illustrate.
Q-14 what is the difference between Negotiations an Assignment?
Q-15 what are the circumstances in which a party to negotiable instrument is discharged
from liability?
Q-16 Any material alteration of a negotiable instrument renders the same void Discuss.
Q-17what is the meant by dishonour by non-acceptance and dishonour by non-payment?
Q-18 when may a holder regard negotiable instrument as dishonored? What are his right
and obligation in case of dishonour?

UNIT-6
Q-1What is the background and justification of VAT?
Q-2What is the benefits of VAT?
Q-3 what is the merits and demerits of VAT?
Q-4 what is Input Tax Credit?
Q-5 what are the variants of VAT?
Q-6writes a short note on:
(a)Gross Product Variants
(b)Income Variants
(c)Consumption Variants
Q-7what are the different modes of computation of VAT?
Q-8 writes a short note on:
(a) Addition Method
(b) Subtraction Method
(c) Tax Credit Method

UNIT-7
Q-1 what is the silent feature of levy service tax?
Q-2 writes a note on SSI Exemption (i.e. exemption for small service provider) under
service tax law.
Q-3 what is due date of filing service tax returns?
Q-4who is the person liable to pay service tax?
Q-5 Explain the requirement of registration under the service tax law?
Q-6what is the procedure for payment of service tax?
Q-7 what are the provision relating to filing of returns under the service tax law?
Q-8 writes a note on E-payment of service Tax.
Q-9 what is due date for payment of service tax?
Q-10 Explain the condition in which service receiver is liable to pay service tax?