Sharon Thomas

This blog was started in loving memory of Christ Kengeri Campus,Bangalore and now dedicated to all my students ...

Tuesday, December 21, 2010

LAW MODEL PART 2

Thanks to  Rama Chandar Sir



1.     What are the remedies for breach of contract? Explain.

2.     Define consideration. Briefly explain exceptions to the general principle ‘a contract is void without consideration’.
3.     State the circumstances in which a surety is discharged from liability?
4.     State briefly the rules as to the passing of property from the seller to the buyer in a contract for the sale of goods?
5.     What are the rights and duties of the finder of the lost goods?
6.     Discuss briefly the different modes in which the agency can be terminated?
7.     Describe the various stages in formation of a company.
8.     State the  conditions implied in a contract for sale of goods (i) by description (ii) by sample


Solutions

SECTION – B

1. Remedies of breach of contract: when a contract is broken, the injured party has one or more the following remedies:
(i) rescission of contract (ii) Suit for damages (iii) Suit for quantum meruit (iv) Suit for specific performance (v)Suit for injunction.

2. consideration : sec.2 (d) doing some act or something or promise  then he must get something in return. This something is defined as consideration. An agreement made without consideration is void.
Sec.25 and 185 deals with the exceptions.
(i) love and affection (ii) compensation to voluntary services (iii) promise to pay a time-barred debt (iv) completed gift (v) agency (vi) charitable subscription.

3.  A surety is said to be discharged when his liability comes to an end.
(i) by revocation – (a) revocation by surety (b) death of surety (c) novation.
(ii) by the conduct of the parties – (a) variance in terms of contract
(b) release or discharge of particular debtor (c) loss of security etc.,
(iii) by invalidation of contract – (a) guarantee obtained by misrepresentation or concealment (b) failure of consideration

4.  rules for ascertaining when the property in goods passes to the buyer are as follows:
(a) goods must be ascertained (b) intention of the parties
Specific goods- transferred at the time of contract.
Unascertained goods- cannot be passed until goods are ascertained.

5. rights and duties of finder of goods:
rights : (a) right of lien (b) right to sue for reward (c) right of sale
obligations/duties : (a) must take reasonable care (b) not to use (c) not to mix the goods with his own goods (d) try to find out the owner of goods.

6. Modes of termination of agency:
(i)by act of the parties : (a) by agreement (b) Revocation by the Principle
                                    (c) revocation by the agent
(ii) By operation of law : (a) performance of the contract (b) expiry of time
                                     (c) insanity of either of party  (d) insolvency of either of the
                                      party  (e) Destruction of the subject matter (f) Principle
                                      becoming an alien enemy (g) Dissolution of a company
                                      (h) termination of sub-agent’s authority.

7. Stages of formation of company:  (a) Promotion (b) Incorporation (c) capital subscription and (d) commencement of business or trading.

8. Implied conditions: (i) by description : Sec.15 explains the rule of law. “if you contract to sell peas, you  cannot oblige a party to take beans.” The buyer can rely on the description given by the seller. No deviation from the description. Even packing can be part of the description.
(ii) by sample : (a) the bulk shall correspond with the sample in quality (b) buyer should have opportunity of comparing the bulk with the sample. (c) goods shall be free from the defect.



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