Solved question paper for BL May-2019 (BBA 2nd)

Question paper 1

1. SECTION-A

   l. Distinguish between sale and agreement to sell.

   Answer:

   Contract of sale is type of contract where by one party seller Adhara transfer the ownership of goods are agrees to transfer it for money to the other party. Contract of sale can be a sale or an agreement to sell. In a contract of sale when there is an actual sale of goods, it is known as sale whereas if there is an intention to sell the goods add certain time in future or some conditions are satisfied it is called agreement to sell.

   Both sale and agreement to sell a type of contract, where in the former is an executor contract many law student get confused amid sty to term, but these are not one and the same.

2. II. Discuss Counter Offer.

   Answer:

   Our country offers is responses given to an initial offer a country of amines the original offer was reject and replaced with another one. country of a the original offer 3 option accept the country of a rejected or make another offer

   These is typically e no binding contract between the parties involved until one accept the others offer. Country of a prevalent in many type of business negotiation, transaction, and private deals between two individual. You may find them in real estate deals, employment negotiation, and car sales.

3. III. Discuss 'No Consideration No Contract'.

   Answer:

   Consideration is an integral part of contract. The rule of consideration state that it is essential to have consideration for a contract. But there are some specific acceptations to the no consideration no contract rule

   As per section 10 and section 25 of the Indian Contract Act 1872 consideration is an essential invalid contract. In simple words no consideration no content hence you are in force a contract only if there is consideration.

   File considerations are integer to a contract, the Indian Contract Act 1872 who has listed some exception where buy an agreement made without consideration will not the void full stop for example natural love and affection if an agreement is in writing and registered between two parties in close relation like blood relative or spouse based on natural love and affection then such an agreement is enforceable even without consideration.

4. IV. What is ‘Caveat Emptor"?

   Answer:

   Caveat emptory is a Latin term that means " let the buyer beware similar to the praise sold as is this term means that the buyer assume the risk that product may fail to meet Expectations on have defects full stop in other words the principle of caveat peremptory serves as a warning that buyers have no resources with the seller if the product does not need their expectations. The term is actually longer letter per change be aware for what not to be ignorant of the nature of property which he is buying from another party. The examination is that the buyer will insect and otherwise in sure that they are confident with the the integrity of the product or land to which is often refers before completing a transaction. This does not, however, gives a sellers the green light to actively against the the transactions.

6. V. What is an 'occupier of a factory? What are his responsibilities?

   Answer:

   The occupier of the factory is one who on the business person job he is solely responsible for all the things in his factory. The occupier is answerable for all the happening and miss happening in the premises. All the rules and regulation setup by him have to be first approved by the state government or the chief inspector

   Responsibilities of a curve include to provide and maintain the plant and system of work in the factory that are safe and without respect to health of the workers. To provide such information, instruction, training and supervision as are necessary to ensure the health and safety of all worker at work.

7. VI. Distinguish between 'Void Agreement and Void Contrast'.

   Answer:

   A void agreement is defined under section 2G e of Indian Contract Act 1872 as an agreement which cannot be enforceable by law. For example search agreement cannot be challenge in the court of law. An agreement lacks legal consequences and so, it does not comfort any right to the parties concerned. Avoid agreement is void from the day, it is created and can never turn into the contract.

   Section 2 J of the Indian Contract Act 1872 defines void contract contract that no longer remains a void contract as cannot be enforced in the court of law full step such countries does not have any legal effect and cannot be enforced by party.

   Void contracts are valid, when they are entered into as they confirm to all the conditions of enforce ability, led down under section 10 of the actor and are binding on the parties, but later on become word because impossibility to perform such contract become enforceable in the eyes of law due to

   • Supervening impressibility

   • Change of law

   • Sub subsequent illegality

   • Contingent contracted

8. SECTION-B

   VII. What is a Contract of Guarantee' ? In what circumstances is a surety discharged from his liability ?

   Answer:

   Contract of guarantee has been defined under Section 126 of the Indian Contract Act 1872 for example a contract of guarantee is a contract to perform the promise or discharge the liability of the third person in case of default. The person who gives the guarantee is called the principal debtor and the person to whom the guarantee is given is called the creditor.

   The basic essential of the contract of guarantee can be conclude as follow:-

   1. The contract of guarantee is said to be specific contract.

   2. A promise to perform promise and discharge the liability of a third party.

   3. The performance will arise in case of default on behalf of the third party

   4. A guarantee can be oral as well as written

   5. The parties involved in a contract of guarantee are Charity principle surety debater and creator

   For the purpose of distinguish guarantee the one that is original and absolute, a contract of guarantee in often known as a a conditional contract

   # discharge of surety

   A surety is discharged from his liability on on

   1. The death of surety as regards future transaction in case of continuing guarantee in the absence of the contract to the country.

   2. Notice the reservation as regards future transaction in case of continuing guarantee for example Annu gives a guarantee to Bela to extend for 50,000 that Freid will pay all the bills that Bela bills from Freid and c accept the Bill. Anu gives notice for relocation. Freid the bill add maturity. Who is liable as it was a transaction before the notice of revocation.

   3. Any variations in the terms of the contract between the principal debater and the creator without surety consent.

   4. If the creditor makes an agreement for composition for promise to give time for or not s u e the principle debater without charities consent the surety will be discharge.

   5. If the creditor release the principal debated the surety also automatically discharge.

   6. Any act or omission to do an actor by the creditor which result is harming the rights of surety, and also on Paris the event remedy of the surety himself against the principal debater discharge the surety.

   7. Where the creditor lose the party without any security which he receives from the principal debater without the consent of the security with discharge in surety to extent of the value of such security.

9. VIII. Define 'Bailment'. What are the duties and rights of a bailee?

   Answer:

   As per the section 148 of the Indian Contract Act 1872 who is contractor when one person delivers goods to another person for some purpose. After the Unka payment of the purpose the bills needs to return the goods to the baiilor or dispose of them according to the direction of baillor.

   # duties of baille includes

   1. Reasonable care of goods section 151:- the bailee has a duty to take care of goods b a i l e d is any reasonable man would take off his on good under similar circumstances. The burden of proof that he exercise reasonable care negligently when he fails to return the goods or return them the damage condition lies on the bailee . If the goods are destroyed or damaged even after bail is reasonable care then the bail is not responsible for such lose under section 152.

   2. Not use the goods in consistently with the contract section 154:- baile shall be liable for the loss cured due to use of goods inconsistent with the terms of contract even if he did not actor negligent and the damage has result due to an accident.

   3. Not mixed the goods bailed with his own goods section 155, 156:- the baile has a duty not to mix is goods with the goods of the b a i l o r and shall keep them separate.

   4. Not to set up an adverse title section 117:- the baile shall not hold the goods for the bailor on behalf of him as per section 177 of Evidence Act 1872. the bailee cannot deny the right of the bailor to have goods and receive them back. The bailor is bound to prove that the other person has right to good and assist the bailor other than the bailor.

   5. Return accretion to goods section 163:- the bailor deliver any increase of profit accredit from the goods AI led to the bailor except the otherwise provided in the contract

   # rights of baileer

   1. Deliver Manav of service join bailors of the goods bailed section 165:- if goods of service join owners are being bailed the baile main deliver them back to one joint owner without the consent of all owners when there is no agreement to the country.

   2. Delivery of good to beailor without a title if any person other than the bailor claims the goods BALED the BALEE has a right to apply to quote to prevent the delivery of good to the boiler and to decide the title such goods.

   3. Right to take action against transparent section 180:- if any third person deprive the bailee wrongfully the possion use of goods BA led to him, the bailee can file a Suit against the person in respect of goods b a i l

   4. Bailes line when the charges in Kara by the baile regard to the goods bailed are not paid to him he has a right to lien for example right to retain the goods with him

11. IX. What is 'Free Consent ? Distinguish between coercion and under influence. What is their impact on the validity of a contract ?

    Answer:

    Assisting to an offer for stop according to section 13, two or more person are said to consent when they agree upon the same thing in the same thing in same sense of. The consent involves identity of Minds in respect of the subject matter of the contract.

    # difference between coercion and under influence

    Basis	Coercion	Under influence
    Meaning	Coercion is an act of threatening which involves the use of physical force	Under influence is an act of influencing the will of the others party.
    Section	It is governed by Section 15 of the Indian Contract Act 1872.	It is governed by section 16 of the Indian Contract Act 1872
    Use of	Psychology cal pressure on physical force.	Mental pressure aur moral force.
    Purpose	To compel a person in such a way that he enters into a contract with the other party.	To take unfair advantages of position.
    Criminal Nature	Yes	No
    Relationship	The relationship between parties is not necessary.	The act of Under influence is done only when the parties to the contract are in a relationship. Like teacher student.

    # it is important that the consent is by the parties is free as this can affect the validity of the contract. If the consent to the agreement was obtained are induced by coercion , under influence, fraud, miss representation for mistake, then it has the potential to make the agreement void.

    Impact of undue Influence:- when consent to an agreement is caused by under influence, the agreement is a contract voidable at the option of the party whose consent was so caused.

    
     

    For example :- section 17 define fraud as under fraud mean and include any of the following actor committed by a a a party to contract or be with his convenience; or C by his agent, with intention to receive another party there two or his agent or to include him to enter into the contract.

    
     

    1. The suggestions as two factor, of the which is not true by one who does not believe in to be true.

    2. The active concealment of a fact by one knowledge of brief of the fact.

    3. A promise made without an intention for performing it

    4. Any other act of fitted to deceive

    5. Any such act or omission as the law specially declared to be fraudulent (sec 17)

12. X. What do you understand by Contract ? Discuss the essential elements of a valid contract.

    Answer:

    A contract is legally binding agreement that recognize and governs the right and duty of the party to the agreement a contract legally enforceable because it meet the requirements and approval of the law for stop an agreement typically involves the exchange of goods, service, money or Promises of any of those.

    # that's essential element of valid contract are:-

    1. Offers and Acceptance:- it is one of the essential of valid contract. There must an offer and acceptance of the same.

    2. Legal Relationship:- the parties to an agreement must create legal relationship agreement of social or domestic nature do not create legal relations and search cannot gives rise to a contract. Example, X invited Y2 dinner we accept the invitation. It is social agreement if x fails to serve dinner to why, why cannot go go to the courts of law for enforcing the agreement.

    3. Law Consideration:- consideration is something in return. Consideration has been defined as the price paid by one party of the promise of other example X agrees to sell his motorbike to why for rupees 100000 hereby promise to pay rupees 100000 of the consideration for x- x promises to sell the motorbike and accept promise to sell the motorbike the consideration for my promise to pay 100000.

    4. Capacity of parties:- it means that the parties to an agreement must complete to contract a contract by person of unsound mind is void ab interno full stop does a contract entered into by minor or by loo lunatic void.

    Example X minor borrowed rupees 8000 from bike and electroplated age of his property in favour of the lender. The way is not valid contract because why is not competent to contract.

    5. Free consent:- for a valid contract it is necessary that the consent of parties to contract must be free example threatening to kill by if he does not sell his car to x. Y agree to sell his car to X. In the case Y consists have been obtained by consideration and therefore it cannot be regarded as free.

    6. Law object:- it is also necessary that agreement should made of lawful object. Every agreement of which the object or consideration is unlawful is illegal and therefore void.

    7. Certainty:- for a valid contract the terms and condition of an agreement must be clear and certain.

    8. Writing and registration:- according to Contract Act, a contract may be oral or in writing. All the in practice, it is is always in interest of the party that the contract should be made in writing so that it may be convenient to prove in the court.

    9. Possibility of performance:- if the act is legal or physically impossible to perform the agreement cannot be enforced at law.

    10. Not Expressly declared void:- an agreement must not be one of those, which have been empress declared to be void by the act.

13. SECTION-C

    XI Define a Contract of Sale. Explain its important features.

    Answer:

    A contract of sale is an agreement between a seller and buyer. The seller address to deliver or sells something to a buyer for a tractor price that the buyer has agreed to pay. With these contracts, the transfer of ownership happens when the buyer pay and the seller delivers.

    This contract change someone but in a situation where the cell cannot get the deliver the item that is a sword. It also change when the buyer can not yet pay the full price. But both parties can still angry on transferring the ownership to pay the person buying in this situation as the long as a seller is ready to deliver what is being sold. The contracts is then subjected to salutatory condition means if the buyer fails to pay make the payment, take the item back.

    # essential element in a contract of sales

    • Two parties:- A contract of sale is between two parties, where one party transfer good to another party.

    • Goods:- the subject of the contract must be good. This is an usually the most important element in a contract of sales because if a goods are not described confuse good reserved.

    • Transfer of ownership:- ownership of the Gods Must Be moved from the seller to the buyer, or there should be an agreement in which the transfer of ownership is made.

    • Price:- the bear and the contract must pay a price for the goods.

    • A sales Contract is a special type of contract full stop in order of it to be valid, it must contain clauses about free consent and the competency e of the spinning parties.

    • sale and an agreement to sell are party of a seller contract.

    # other contract essential:

    If any element are not matter, the sales contract is not valid. For example, party agreed to sell her To Party buy. Party be forced party ate to sell her car through excessive prediction. Therefore, the contract is invalid because there is no free consent by the transfers.

    Contract Sale

    A cell is an absolutely contractor, while and agreement to cell is an executor contractor that suggests conditional sales. As sales contract consists of an offer to sell or buy goods for a price and acceptance of that offer. The payment of delivery of goods is not necessary at the time of creating the sale contract unless its agree to.

    Are contract can be made in the following ways:-

    • Orally

    • In writing

    • Partly in writing and partly orally

14. XII. Explain ‘unpaid seller'. Discuss the remedies available to an unpaid seller.

    Answer:

    In certain cases, when a buyer refuse or fail to pay the requisite amount to the seller, the seller become an unpaid seller and can exercise certain rights against the buyer. These rides are considered as a seller's remainders in cases there is breach of contract by the buyer.

    > remedies of unpaid sellers are:-

    1. Suit for price:- under the contract of the sale if the property of the goods is already passed but he refused to pay for the good and the seller become unpaid seller in such cases, the seller can show the buyer for wrongfully refusing to pay him his due.

    But say that sales contract say that the price will be paid at a later date irrespective of delivery of goods and on such a day the if the buyer refuse to pay the unpaid maybe sue for the price of these goods. The actual delivery of the goods is not for importance according to the law.

    2. Suit for Damages for Non Acceptance:- if the buyer wrongfully refuse to accept and pay the unpaid seller seller can u e the buyer for damage caused due to his non acceptance of goods. Since the by refuse to pay the goods without any Just Cause the seller may face certain damage. The measure of such damage is decided by section 73 of India Contract Act 1872 which deals with damage and penalties.

    3. Repudiation of contract before due Date:- if the buyer repudiates the contract before the delivery date of the goods the seller can still assure for damaged. Such a contract is considered as a contract and so the the seller can sue for breach of contract. In the concerned in the India contract act is known as anticipatory breach of contract.

    4. Suit for Interest:- if there is a specific agreement between the parties the seller can u e for the interest amount due to him for the buyer. This is when both parties have specifically agreed on the interest rate to be paid to seller from the date on which the payment become due.

16. XIII. Explain the provisions of the Factories Act, 1948 relating to Welfare and Health of the workers.

    Answer:

    Health and safety provision as per Factories Act full stop the factories act 1948 has been promulgated primarily to provide safety measures and to promote the health and welfare of the worker employed in factories. The object does being this act within the competence of the central legislature to enact

    1. Health

    1. Section 11 ensure the cleanliness in the factory:- it must be seen that a factory is kept clean and it is free from effluvia arising from any train or other nuisance. Example, flow should be e disinfect or once in every week, effective method of drains doors and windows are of wooden or metallic.

    2. Ventilation and temperature:- adequate circulation of fresh air, temperature will be secure to the worker reasonable condition.

    3. Dust and fumes:- there are certain manufacturing process like chemical or juice with lot of dust, sump for other impurities. So effective measures should be taken to prevent the inhalation and accumulation of dust, find etc, in the workrooms.

    4. Overcrowding:- overcrowding in the work room not only affect the workers in affection discharge of duties but their health also. Section 16 has been inactive with the view to provide sufficient airspace to the worker.

    5. Lighting:- section 17 of the Factories Act include every factory must provided on maintenance sufficient and suitable lighting natural and artificial or both in every part of factory, all the gadget window and skylight should be kept clean or both side state government is empowered to lay down standard of efficient and suitable light for factories.

    2. Safety

    1. Fencing of machinery:- this is in use or in motion is military under Section 21 every moving part of prime mover and Fly wheeler connected to a prime moodily. Had raise a train race of water wild and Water Tribune etc.

    2. Self acting machines:-section 25 provides for the safeguard for workers from being injured by self action machined. It provides that no Traverse part of self acting machine in any factory and non material carried foreign cell is the space over which it runs is is a space over which any person is liable to pass weather in the course of his employment or otherwise be allowed to run on a it out word or invert traverse Within a distance of 45 from any tax structure which is not a part of the machine.

    3. Prohibition of employment of women and children near cotton opens.

17. XIV. Discuss the meaning of condition and warranty. What are the Implied Conditions and Warranties?

    Answer:

    In a contract of sale, the subject matter is goods. There are millions of sale transaction which occurs in a normal courses All Around The World there. There are certain provisions which need to be fulfilled because it is a demanded by contract. They per-request can visa the condition and where aunt. The condition of fundamental stipulation of the contract of sale whereas guarantee is an additional stipulation.

    Implied conditions and warranties in contract of sale of goods:-

    Implied condition and warranties are dimmed to be Incorporated in every contract of sale of good unless the terms of the contract of show a country e intention. The following are the implied condition.

    1. As to title of goods:- contract of sale there is implied condition on part of the seller that he has a right to sell the goods and that in the case of an agreement to sell, he will have a right to sell the good at the time when the property is to pass to buyer in future.

    2. Sale by description:- where there is a contract of sale of good by description, there is an implied condition that the goods shall correspond with description.

    3. sale by description as well as sample:- if the sale is by sample as well as by description, the goods must not only correspond with the sample but also with the descriptions.

    4. Condition as to merchant ability:- where the goods are out by description from a seller who deal in goods of that description there is an implied condition that goods shall be of merchantable quality. Section 16. There are two requirement for this condition to apply; the word merchantable quality would mean that the article is of such quality that is reasonable mean, acting reasonable would accept it under the circumstances of the case. Whether he buy it for his own use or to sell again.

    Implied Warranties:-

    1. Usage of trade:- implied warranty or condition as to quality or fitness for a particular purpose may be annexed by the way of trade.

    2. Quiet possession of the goods:- in every contract of sale there is an implied warranty that the buyer shall have and enjoy quiet possession of goods if buyers possession is it distributed by anyone having a superior title than that of the cell the buyer is entitled to hold the seller of breach of this warranty and he can claim damage for the seller.

    3. Disclose dangerous Nature of goods:- if the goods are are inherently dangerous or likely to be dangerous, and the ignorant of the danger, the seller must inform the buyer of the probable danger. If he fail to do so the buyer is entitled to claim from his compensation for any injury suffered by him.