SOLUTION SET OF SYBCOM BUSINESS LAW SEM 3 2017-2018

MUMBAI UNIVERSITY SYBCOM SEM 3 2017-2018 COMMERCE SOLUTION (from MANAN PRAKASHAN).

Q.1. Answer any two of the following:-

a) Essentials of a valid contract: MODULE 1, Page No. 10 

b) Meaning of Offer and legal rules regarding offer - MODULE 1, CHAPTER 2, Page No. 15 

c) Who is competent to contract? Explain the effects of Minor's agreement - MODULE 1, CHAPTER 3, Page No. 29

d) Essentials of 'consideration' in a contract- MODULE 1, CHAPTER 4, Page No. 36

Q.2. Answer any two of the following:-

a) Meaning of 'Free Consent'. Distinguish between agreements by 'Fraud and agreements by 'Misrepresentation' - MODULE 2, CHAPTER 1, Page No. 48 (for meaning) and Page No. 54 (for distinguish)

b) Void agreement. Explain the agreements declared void under the Indian Contract Act - MODULE 2, CHAPTER 2, Page 58

c) Quasi Contract : MODULE 2, CHAPTER 3 (PART 2), Page No. 68

Quasi Contracts are those contracts or relations which resemble contractual relations. It is not a real contract but an implied law. These obligations come into the picture by a fiction of law. It may become necessary to hold one person to be accountable to another even without any agreement between them.

Sec 68-72 has to be explained briefly along with Examples and Essentials.

d) Methods of discharge of contract by operation of law - MODULE 2, CHAPTER 4, Page No. 94, 5th Point.

Q.3. Answer any two of the following:-

a) Distinguish between 'Contract of Indemnity' and 'Contract of Guarantee' -  MODULE 3, CHAPTER 1, Page No. 109

b) Rights of Bailor in a contract of Bailment - MODULE 3, CHAPTER 2, Page No. 117 (for meaning) and Page No. 119 (for Rights)

c) Distinguish between Contracts of Pledge Lien - MODULE 3, CHAPTER 3, Page 129 (NOTE: THERE ARE ONLY FOUR POINTS GIVEN YOU CAN ADD MORE POINTS FROM THE EXPLANATION OF PLEDGE AND LIEN ON PREVIOUS PAGES SUCH AS MEANING, TYPES, ETC.)

d) Duties of an Agent under the Indian Contract Act - MODULE 3, CHAPTER 4, Page No. 138 (from the Distinguish box) (Writing the meaning of Agent is essential)

Q.4. Answer any two of the following:-

a) Essentials of Contract of Sale and Classification of Goods - MODULE 4, CHAPTER 1, Page No. 152 ( for essentials of Contract of Sale) and Page No. 148 (for classification of goods)

b) Meaning of 'Conditions' and the 'Implied Conditions' under the Sale of Goods Act - MODULE 4, CHAPTER 2, Page No. 159

c) Rules relating to transfer of property in the case of sale of specific goods and the sale of unascertained goods - MODULE 4, CHAPTER 3, Page No. 167

d) Explain 'Unpaid Seller' and the Unpaid Seller's right of, 'Stoppage of goods in Transit' and 'Right of Resale' - MODULE 4, CHAPTER 4, Page No. 174 (for the meaning of Unpaid Seller) and Page No. 176 (for Right of Stoppage in Transit Sec.50) and Page No. 178 (for Right of Re-sale)

*Sec. 50 : Right to stoppage in transit-

i) When the buyer of the goods become insolvent, the unpaid seller who has parted with the possession of goods has the right of stopping the goods in course of transit.

ii) In other words, he resumes the possession of the goods as long as they are in the course of transit and retain the goods until the price is paid.

-) Essentials :

A) Seller must be unpaid fully or partly

B) Buyer must have been insolvent

C) Goods must be in transit ( Transit, here means, Transportation)

Q.5. Answer any two of the following:-

a) Essentials of Negotiable Instrument - MODULE 5, CHAPTER 1, Page No. 191

b) Distinguish between Cheque and Bill of Exchange - MODULE 5, CHAPTER 2, Page No. 223

c) Characteristics of Cheques and Types of crossing of cheques - MODULE 5, CHAPTER 3, Page No. 221 (for characteristic) and Page No. 224 (for types)
Ans: Crossing is introduced to avoid the loss incurred when an open cheque gets into wrong hands. A crossing is a direction to the bank to pay money directly to the account holder's account ans secure the payment.
A) General Crossing : General crossing is when there are two transverse parallel lines are drawn across the face of the cheque without any words written. (for diagram, draw to transverse parallel line in the corner of the page and leave it as it is.)

B) Restrictive Crossing : Restrictive crossing involves when there are two transverse oarallel lines drawn along with addition of words in between those two lines like 'A/c Payee' or 'A/c Payee only'. This type of crossing expresses an intention that the cheque should be only deposited directly to the A/c Payee's account. (for diagram, draw two transverse parallel lines in the corner of the page and write the word 'A/c Payee' between those lines)

C) Special Crossing : When the name of the bank is added in between the two transverse parallel line drawn on the face of the cheque is called Special Crossing, where a cheque is crossed especially with the name of the bank, the amount shall be only deposited to that bank account which name is added in the parallel lines. (for diagram, draw two transverse parallel lines in the corner of the page and write any bank's name in between those two lines.)

PLEASE NOTE

• The following answers are from Manan Prakashan  Book ( As per Revised Syllabus w.e.f. June 2017)
• The page numbers may vary for some books, in such case, the answer would be on the previous or the next page.
• Please mark the answers as per your convenience. Write definitions. Draw diagrams, wherever necessary.