UNIT-I
Question 1 (Answer any two) 2 x 2 = 4
(a) Write two essential elements of a valid contract.
Solution:
- Offer and Acceptance: There must be a lawful offer by one party and a lawful acceptance by the other
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- Lawful Consideration: The agreement must be supported by something of value (consideration) that is legal
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(b) Narrate the term 'minor's agreement'.
Solution:
A minor's agreement refers to a contract entered into by a person under the age of 18. Under the Indian Contract Act, such an agreement is void-ab-initio (void from the beginning), meaning it has no legal standing
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(c) What do you mean by gratuitous bailment?
Solution:
Gratuitous bailment is a type of bailment where no consideration (fee or reward) passes between the bailor and the bailee
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It is done solely for the benefit of either the bailor or the bailee (e.g., lending a book to a friend for free).
Question 2 (Answer any one) 10
(a) What do you mean by breach of contract? Mention the reliefs that the injured party is entitled to.
Solution:
Definition: Breach of contract occurs when a party fails to perform their obligations as agreed upon in the contract without a legal excuse
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It can be an 'Actual Breach' or an 'Anticipatory Breach'.
Reliefs (Remedies) for the Aggrieved Party:
- Rescission of Contract: The injured party can cancel the contract and is freed from their own obligations
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- Suit for Damages: The party can claim monetary compensation for the loss suffered due to the breach
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- Suit for Specific Performance: The court may order the defaulting party to actually carry out the duties promised in the contract
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- Injunction: A court order restraining a party from doing a particular act (negative enforcement)
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- Quantum Meruit: A claim for "as much as is earned," allowing a party to be paid for work already completed before the breach
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(OR) (b) Define the term 'discharge of contract'. Discuss the rules for the discharge of contracts.
Solution:
Definition: Discharge of contract means the termination of the contractual relationship between parties. The rights and obligations created by the contract come to an end.
Rules/Modes of Discharge:
- By Performance: When both parties fulfill their respective promises
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- By Mutual Consent/Agreement: Through novation, rescission, alteration, or remission
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- By Lapse of Time: If the contract is not performed within the period specified by the Limitation Act
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- By Operation of Law: Such as death of a party or insolvency
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- By Impossibility of Performance: When the act becomes impossible or unlawful (Doctrine of Frustration)
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- By Breach: Failure of a party to perform entitles the other to discharge the contract
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UNIT-II
Question 3 (Answer any two) 2 x 2 = 4
(a) Define 'goods' as per the Sale of Goods Act, 1930.
Solution:
'Goods' means every kind of movable property other than actionable claims and money; and includes stock and shares, growing crops, grass, and things attached to or forming part of the land which are agreed to be severed before sale
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(b) Write two features of 'Performance of Contract of Sale'.
Solution:
- Duty of Seller: To deliver the goods according to the terms of the contract
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- Duty of Buyer: To accept the goods and pay the price in exchange for possession
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(c) Point out any two distinctions between Sale and Agreement to sell.
| Basis |
Sale |
Agreement to Sell |
| Transfer of Property |
Ownership passes immediately. |
Ownership passes at a future date. |
| Risk of Loss |
Risk lies with the buyer. |
Risk remains with the seller. |
Question 4 (Answer any one) 10
(a) How is a contract of sale made? State briefly the necessary formalities with illustrations.
Solution:
A contract of sale is made by an offer to buy or sell goods for a price and the acceptance of such offer
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It may provide for immediate delivery, immediate payment, or both.
Formalities:
- It can be in writing or by word of mouth
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- It can be partly in writing and partly oral
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- It can be implied from the conduct of the parties
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Illustration: If A goes to a shop and picks up a book, and the shopkeeper accepts the price, a contract of sale is formed even without a formal written document
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(OR) (b) Define 'delivery'. Explain in detail the rules as to delivery of goods.
Solution:
Definition: Delivery means the voluntary transfer of possession from one person to another
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Rules as to Delivery:
- Place of Delivery: Goods must be delivered at the place specified in the contract; otherwise, at the place where they are at the time of sale
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- Time of Delivery: If no time is fixed, delivery must be made within a reasonable time
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- Goods in possession of Third Party: Delivery is complete only when the third party acknowledges to the buyer that he holds the goods on his behalf
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- Expenses of Delivery: Unless otherwise agreed, expenses of putting goods into a deliverable state are borne by the seller
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- Delivery of Wrong Quantity: If the seller delivers less or more than contracted, the buyer may reject them or accept them at the contract rate
.
UNIT-III
Question 5 (Answer any two) 2 x 2 = 4
(a) Write two features of Limited Liability Partnership (LLP).
- Separate Legal Entity: The LLP is distinct from its partners
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- Limited Liability: The liability of partners is limited to their agreed contribution
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(b) State two procedures of registration of partnership firms.
- Filing an application in the prescribed form with the Registrar of Firms
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- Payment of the required registration fees
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(c) Mention any two distinctions between partnership and co-ownership.
| Basis |
Partnership |
Co-ownership |
| Agency |
Partners are agents of each other. |
A co-owner is not an agent of others. |
| Transfer of Interest |
Requires consent of all partners. |
Interest can be transferred freely. |
Question 6 (Answer any one) 10
(a) Elucidate the circumstances under which a partnership firm may be dissolved.
Solution:
- Dissolution by Agreement: With the consent of all partners
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- Compulsory Dissolution: By adjudication of all partners as insolvent or the business becoming unlawful
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- On Happening of Contingencies: Such as expiry of term, completion of venture, or death of a partner
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- Dissolution by Notice: In partnership at will, any partner can give notice to dissolve
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- Dissolution by Court: On grounds of insanity, misconduct, or persistent breach of agreement by a partner
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(OR) (b) Can minor become a partner in a firm? Discuss the position of minor as a partner.
Solution:
A minor cannot be a partner because a contract with a minor is void
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However, under Section 30 of the Indian Partnership Act, a minor can be admitted to the benefits of partnership with the consent of all partners.
Position/Rights:
- Right to share profits and property of the firm
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- Right to inspect and copy books of account (not secret books)
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- Liability is limited only to his share in the firm; he is not personally liable
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- Upon attaining majority, he has 6 months to decide whether to continue as a partner
.
UNIT-IV
Question 7 (Answer any two) 2 x 2 = 4
(a) Define 'services' under the Consumer Protection Act, 2019.
Solution: 'Service' means service of any description which is made available to potential users, including banking, financing, insurance, transport, and supply of electrical energy
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(b) Narrate two powers of the Redressal Agencies under the Consumer Protection Act, 2019.
- Power to summon and enforce the attendance of any witness
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- Power to order the discovery and production of any document
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(c) Point out any two distinctions between Competition Act and MRTP Act.
- The MRTP Act focused on curbing monopolies, while the Competition Act focuses on promoting healthy competition
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- The MRTP Act was reactive, whereas the Competition Act is proactive and includes heavy penalties
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Question 8 (Answer any one) 10
(a) Explain, in detail about the Consumer Protection Council.
Solution:
Consumer Protection Councils are established at District, State, and Central levels to promote and protect consumer rights
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- Central Council: Chaired by the Minister in charge of Consumer Affairs in the Central Government
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- State Council: Chaired by the State Minister of Consumer Affairs
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- Objectives: To protect against marketing of hazardous goods, right to be informed about quality/price, and right to consumer education
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(OR) (b) Write a detailed note on 'Historical Background' of the Competition Act, 2002. Write any five features.
Solution:
The Act was introduced following the recommendations of the Raghavan Committee to replace the outdated MRTP Act, 1969, in line with economic liberalization
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Features:
- Prohibition of Anti-competitive Agreements
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- Prohibition of Abuse of Dominant Position
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- Regulation of Combinations (Mergers/Acquisitions)
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- Establishment of the Competition Commission of India (CCI)
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- Competition Advocacy to promote awareness
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UNIT-V
Question 9 (Answer any two) 2 x 2 = 4
(a) What do you mean by 'copyright'?
Solution: Copyright is a legal right granted to creators for their original literary, dramatic, musical, and artistic works, allowing them to control the use and distribution of their work
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(b) Write two special features of patent.
- Exclusivity: It gives the inventor sole rights to use or sell the invention for a limited period (usually 20 years)
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- Territoriality: Patent rights are valid only in the country where the patent is granted
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(c) Point out any two procedures of Registration of Trademarks in India.
- Filing of an application with the Trademark Registry
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- Examination of the application by the Registrar to ensure it is unique
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Question 10 (Answer any one) 10
(a) What is meant by Trademark? Discuss the procedure for registration as 'registered user'.
Solution: A trademark is a recognizable sign, design, or expression which identifies products or services of a particular source
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Procedure for Registered User:
- Joint application by the owner and the proposed user
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- Submission of a written agreement/contract between the parties
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- Affidavit stating the relationship and degree of control by the owner
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- Registrar ensures the registration is not against public interest
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- Entry of the user's name in the Register
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(OR) (b) Write a brief note on Intellectual Property Rights (IPR). Point out any five rights of a partner.
Solution: IPR refers to creations of the mind, such as inventions, literary works, and symbols used in commerce, protected by law to enable people to earn recognition or financial benefit
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Rights of a Partner:
- Right to take part in the conduct of business
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- Right to be consulted on matters affecting the firm
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- Right to access, inspect, and copy books of account
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- Right to share equally in the profits of the firm
.
- Right to receive interest on capital/advances if agreed
.