CSS Mercantile Law Past Paper 2008
PART-II (Subjective) 80 Marks
Attempt ONLY FOUR questions from PART-II. (20×4)
PART-II
Q.No.2 X agreed in writing to sell 120 acres of land to Y for Rs. 3 Million. The purchase price was to be paid in three installments: a first of Rs. 1.6 million, followed by a second of Rs. 0.7 Million after twelve months, and a final payment of Rs. 0.7 million after further twelve months. It was further provided that ‘on the occasion of each completion a proportionate part of the land shall be released forthwith to Y’. The parties provided no machinery for the allocation of the proportional parts. What is the legal effect of the agreement? Support your answer with arguments discussing the question of law involved.
Q.No.3 Ahmad, who was admitted to a hospital, was required to undergo surgery. Before his operation, he agreed to sell his house, which was already listed for sale, to his doctor for Rs. 9.7 million. The market price of the house was Rs. 10 million. After the successful operation, Ahmad rescinded the agreement alleging “undue influence” by the doctor. Can he succeed? Explain, keeping in view the ingredients of undue influence as laid down in the Contract Act, 1872.
Q.No.4 JK goes to the showroom of Nasir, a car dealer, and after looking at various models, he agrees to buy a Honda Civic car. The car breaks down four times during the first month, and JK wishes to know whether he has any remedies against Nasir. Advise him in the light of the Sale of Goods Act, 1930.
Q.No.5 Describe the general principle in determining the existence of partnership. Compare the principle with the rule laid down in Cox v. Hickman.
Q.No.6 R signed a document in these terms: ‘In consideration of the loan of Rs. 1000/- from W; I, R agree to repay W the sum of Rs. 1000/- on or before December 31, 2007.’ Can the above document be treated as a promissory note? Give the specifics of a promissory note.
Q.No.7 Explain the status and significance of Articles of Association of a company. The articles of a private company provided that ‘every member who intends to transfer shares shall inform the Directors, who will take the said shares … at a fair price’. The plaintiff held 725 fully paid-up shares of Rs. 10/- each, and he asked the directors to buy them, but they refused. Were the directors bound to take the shares? Give reasons.
Q.No.8 Explain the essentials of a valid award. A ship called Tanais was chartered for a voyage between Canada and Italy. A clause in the charter party provided for disputes to be settled in London. A dispute arose, and the owners of the Tanais asked the charterers to agree on an arbitrator, but the charterers would not concur in an appointment. Suggest a solution.
Q.No.9
a) What remedies are available to a buyer when the seller delivers him goods less than/or more than the quantity contracted?
b) A purchased a pole for his carriage from B. While A was driving the pole, due to a latent defect, it broke and the horses got frightened and injured. Is any remedy available to A in such a case? Comment.
Q.No.10
a) In what cases may a party to the arbitration agreement appoint his own appointed arbitrator to act as a sole arbitrator in the reference?
b) Define the following:
(i) Drawee
(ii) Payee
(iii) Accommodation Bills
(iv) Blank instrument
(v) Cross cheque