Q.

2 section 10 of the contract act says that "all agreements are contracts if they are made by the free consent of the parties competent to contract, for a lawful consideration and with a lawful object, and or not expressly declared to be void . explain fully what is intended by the wording not expressly declared to be void . be brief and to the point. Q.! discuss the circumtances under which a contract is discharged. Q." what rights are conferred on an unpaid seller # explain an unpaid seller s lien. under what circumstances an unpaid seller loses his lien# Q.$ explain sale by auction . when does title of goods passes from he seller to a buyer in an auction sale# Q.% how would a court determine the existence of a partnership # explain the principle laid down in &ox v . hic'man. Q.( discuss the significance of resolutions in regulating the affairs of a company . explain what is meant by the doctrine of ultra vires a company# Q.) who may be appointed as an arbitrator# describe the powers of an arbirator under the arbitration act, 1*"0.

1 +art 1 ,bjective 1- .hich of the following contracts is voidable, where/a0 1party is induced by undue influence /b0 ,ne party under mista'e of fact /c 0 b oth parties under mista'e of fact /d0 2one of these 2- in case of wilful wrong sub agent is responsible to/a0 1gent /b0 +rincipal /c0 3ole agent /40 none of these !- 1 tender notice amounts to/10 +roposal b. offer c. invitation

d. none of these

"- 1 contract to sell property by minor through guardian is1. 5oid b. voidable c. valid d. none of these $- 6ow many parties are there in contract of guarantee# 1. $ 7. " &. ! d. none of these %- .hich of the following is eligible to become the director of the company. 1. 8inor 7. un discharged insolvent c. person representing creditors d. none of these (- extra ordinary general meeting of a company includes1. 1nnual general meeting b. statutory meeting c. plenarymeeting 4. none of these

)- +etition for the winding up of company may be moved by 1. auditor general b. advocate general c. company judge d. none of these *- 9he companies act repealed by the companies ordinance, 1*)" pertained to yeara. 1*!0 b. 1*!! c. 1*!$ d. none of these 10- penalty for improper use of word :;imited< is1. fine b. imprisonment c. fine with imprisonment d. none of these 11. =n which of the following an arbitration is not discharged by the death of party. 1. voluntary b. statutory c. contractual d. none of these 12. the assent of arbitrator by court is1. optional b. not re>uired c. necessary 1!. the nomber of arbitration act, 1*"0 is1. 11 b. 1$ c. 20 d. none of these 1". natures of misconduct justifying removal of arbitrator should be1. ;egal b. moral c. procedural d. none of these 1$. suit by unregistered firm against third party is 1. maintainable.7. barred c. permissible d. none of these 1%. the partnership is1. juristic person

d. none of these

b. juridical person

c. natural person

d. none of these

1(. the firm and firm name are1. synonymous b. interchangeable.

&.differe nt terms. 4. none of these

1). the ma'er of the promissory note is liable as1. principal debtor b. principal creditor c. undischarged surety

d. none of these

1*. valid presentation of a che>ue is within six months from1. the date is drawn b. date of last correection c. date of delivery 20. an exception to :2o one can transfer what he does not have :1. registered gift b. will c.estoppel by owner d.none of these +1?9 21ttempt only four >uestions-

d. none of these

Q2- 4iscuss the statutory liablity both civil and criminal which arises as a result of untrue statement in a prospectus. Q!- .hat are the modes in which ma'er, acceptor or endorcer of a negotiable insturment is discharged. Q". 6ow will u distinguish a mista'e of fact from a mista'e of law. 4iscuss their legal effect on contract.

Q$. .hat is meant by expression :+assing of +roperty<# 4iscuss the law which governs the transfer of property as between the seller and the buyer. Q%. 4iscuss the scope and extend of powers of a judicial authority to stay legal proceedings where there is an arbitration agreement. @laborate as to what amounts :9o ta'ing any steps in the proceedings<. Q(. .rite a comprehencive note on the relations of partners to one another. Q). write short notes on any two of the following-

Q2. what is the difference between 8emorandum and 1rticle of association of a company#is it essential to register the article of association signed by the subscribers to the memorandum#what is the alternative if these are not registered# Q!. loans by a &o. ;td by shares,other than a +vt &o.,on the security of its own shares to a person to enable him to purchase its own shares is strictly prohibited.what are its exceptions# what action can be ta'en in case of a contravention# Q". aAwhat do you understand by the expression &aveatAemptor# bAdefine a :warranty< B distinguish it from a :condition< with reference to a contract of the 3ales of Coods 1ct# Q$. define dissolution of a firm.explain various modes of dissolution of a firm# Q%. state the rules for determining partnerDs mutual relations.explain fully. Q(. what are void and voidable agreements#state fully,>uoting law. Q). define and explain :consent< B :free consent<.is it essential for validity of a contract that the consent be free#what do you mean by :the parties ad idem<#

Q.=. 3elect the best optionEanswer and fill in the appropriate box on the 1nswer 3heet. /i0 3elect the correct answer/a0 +romisee and ,fferee are one and same party /b0 ,fferee is a party who propose an agreement while promisee accepts it /c0 2one of these /ii0 @very agreement forbidding marriage of any adult person is void except of a minor/a0 Fes /b0 2o /c0 +artly correct /d0 2one of these /iii0 &an a contract executed in 3audi 1rabia be enforced in courts in +a'istan# /a0 Fes /b0 2o /c0 2one of these /iv0 9he effect of coercion on a contract is that the contract becomes/a0 void /b0 voidable /c0 valid /d0 2one of these /v0 9he members of partnership carrying out business of ban'ing must not exceed-

/a0 10 /b0 20 /c0 $0

/d0 2one of these

/vi0 9he minimum number of members re>uired for forming private company is/a0 1 /b0 ! /c0 $ /d0 2one of these /vii0 9he minimum number of members re>uired for forming public company is/a0 ( /b0 $0 /c0 $ /d0 2one of these /viii0 1fter its incorporation, the ordinary Ceneral 8eeting of a company must be held within/a0 ,ne year /b0 the year of incorporation /c0 @ighteen months from the date of incorporation /d0 2one of these /ix0 .hat type of tax is referred to in the sale of Coods 1ct, 1*!0# /a0 =ncome tax /b0 .ealth tax /c0 &ustoms duty /d0 3ales tax /e0 2one of these /x0 9he carrier holds the goods in transit as/a0 9rustee /b0 1gent /c0 7ailee /d0 2one of these

/xi0 Gor how much days, a promissory note is entitled to days of grace to be at maturity when it is not expressed to be either payable on demand or otherwise# /a0 !0 days /b0 1$ days /c0 ! days /d0 2one of these /xii0 1 promissory note is at maturity on 3unday, being public holiday. .hether such promissory note will be deemed to be due on- /a0 the next preceding business day /b0 9he next succeeding business day /c0 2one of these /xiii0 &an a minor become a payee of a negotiable instrument# /a0 Fes /b0 2o /c0 2ot himself but his guardian /xiv0 ;ife =nsurance +olicy cannot be called in >uestion by an insurer on the ground of inaccurate or false immaterial statement made in the proposal for insurance after/a0 one year /b0 two years /c0 three years /d0 2one of these /xv0 .illfully ma'ing statement false in any document re>uired under =nsurance 1ct. 1*!), shall be punishable with imprisonment upto/a0 five years /b0 four years /c0 three years /d0 fine only /e0 2one of these /xvi0 .hether a minor can be appointed as nominee to ;ife =nsurance +olicy# /a0 Fes /b0 2o /c0 6is guardian only /d0 2one of these /xvii0 &aveat emptor/a0 is a person who institutes preAemption suit /b0 is seller who discloses defects in the goods being sold /c0 is the buyer who is supposed to be aware of the suitability of the goods /d0 is owner of an empty cave /e0 2one of these /xviii0 +enalty provided for driving uninsured vehicle is/a0 imprisonment upto $ years and fine upto ?s. 1000EA or both /b0 imprisonment upto 1 year and fine upto ?s. 100EA or both

/c0 =mprisonment upto ! months or fine upto ?s. $00EA or with both /d0 fine upto ?s. 10000EA only /e0 none of these xix0 &an a compoundable criminal case be referred to arbitration# /a0 Fes /b0 2o /c0 2one of these as only civil matters can be referred to xx0 .ithin how much period, the arbitrators are legally re>uired to ma'e their award after entering on the reference# /a0 one month /b0 two months /c0 three months /d0 four months /e0 2one of these

+1?9 A ==

2,9@/i0 +1?9A== is to be attempted on the separate 1nswer 7oo'. /ii0 1ttempt ,2;F G,H? >uestions from +1?9A==. 1ll >uestions carry @QH1; mar's. /iii0 @xtra attempt of any >uestion or any part of the attempted >uestion will not be considered.

Q.2. a0 1ll contracts are agreements but all agreements are not contracts. +lease justify. /100 b0 Cive five examples of such agreements which are declared to be void under the contract 1ct, 1)(2. /100 Q.! a0 .hen will consent of a party to a contract be deemed to have been caused by coercion# /100 b0 .hether threat to commit suicide by. husband will amount to coercion against wife in a contract between them# &omment. /100 Q." a0 1 and 7 contract to marry each other. 7efore the time fixed for the marriage, 1 goes mad. .hat type of contract it becomes# /100 b0 /i0 &an 1, who is pleader, recover fee from his client 7, when there was no express agreement as to the remuneration for the services rendered# Iustify your reply. /$0 /ii0 1, gratuitously saves 7 s property from fire. =s 1 entitled to any compensation for it from 7# /$0 Q.$ a0 Iewellery was pledged with a money lender as security. 9he lender gave it to his wife for putting it on a marriage. .hile returning from the ceremony, she was attac'ed by dacoits and robbed of it. .as the money lender liable for ma'ing good the loss to the loanee after such incident# &omment. /100 b0 .hat are the rights of the +awnee in respect of the thing pledged# /100

Q.% .hat statutory restrictions are imposed on the alteration of articles of association of a company# /200

Q.( a0 .hat remedies are available to a buyer when the seller delivers him goods less thanEor more than the >uantity contracted# /100 b0 1 purchased a pole for his carriage from 7, .hile 1 was driving the pole due to a latent defect, bro'e and the horses got frightened and injured. =s any remedy available to 1 in such a case# &omment" /100

Q.) a0 =n what cases, a party to the arbitration agreement may appoint his own appointed arbitrator to act as sole arbitrator in the reference# /100 b0 4efine the following- /100 /i0 4rawee /ii0 +ayee

/iii0 1ccommodation 7ills /iv0 7lan' instrument /v0 &ross che>ue

8ercantile ;aw +aper 200) QA1 3elect the best option and fill in the appropriate box on the answer sheet =A =f the consideration for an agreement is inade>uate, the agreement is/a0 5alid /b0 5oid /c0 5oidable /d0 2one ==A ,n a contract by an agent on the behlf of undisclosed principal, the principal/a0 8ay sue on contact /b0 &annot sue /c0 =s hit by privity of contact /d0 2one ===A &arlill v &arbolic 3mo'e 7all &o. ;td. deals with/a0 &ounter proposal /b0 =mplied acceptance /c0 =mplied revocation /d0 2one =5A .hat is the amount of care a bailee is re>uired to ta'e in respect of goods bailed to him/a0 @xtraordinary /b0 ,rdinary /c0 ?easonable /d0 2one 5A 1 void contract is/a0 1n illegal agreement /b0 +artly valid agreement /d0 2one 5=A J agrees not to carry on a similar business with F for two years in consideration of ?s.$0,000EA as good will. 9he agreement is/a0 5oid due to restraint of trade /b0 5alid /c0 1gainst J s fundamental rights /d0 2one 5==A .hihc one of the following cannot be called an 1ct of Cod/a0 1n unprecedented rainfall /b0 1n earth>ua'e /c0 Gire not caused by lightening /d0 2one 5===A 1n obligation arises from/a0 1 contract /b0 Grom a wrongful act /c0 7oth a B b /d0 2one =JA 9he rule nemo dat >uod non habet means/a0 2o one should interfere in another s business /b0 2o one should be retained in a partnership against his will /c0 2o one can give what he has not got /d0 2one JA=n a public company the shares are subscribed by-

/a0 Covernment /b0 8anagement /c0 &reditors /d0 2one J=A &an a minor be/a0 1dmitted as partner in a firm /b0 1dmitted to the benefits of partnership /c0 1dmitted as a sleeping partner /d0 2one J==A 9ransfer of property means/a0 4elivery of goods /b0 9ransfer of possession /c0 9ransfer of ownership /d0 2one J===A &aveat @mptor rule means/a0 @mployer beware /b0 3eller beware /c0 &reditor beware /d0 2one J=5A 1 li>uidator is a person/a0 .ho is chairman of board of directors /b0 +romoter of a company /c0 .ho winds up a company /d0 2one J5A .hich one of the following clauses is considered vital in a memorandam of association of a public company/a0 2ame clause /b0 ,bject clause /c0 &apital clause /d0 2one J5=A 1 subsidiary company means/a0 1 supporting company /b0 1 non entity /c0 1n unregistered company /d0 2one J5==A.hich of the following actions an unpaid seller cannot ta'e against a buyer/a0 @xercise the right og lien /b0 3toppage of goods in transit /c0 3ale /d0 2one J=JA J is involved in some businessK he transfers his share without the consent of all its members. 6e is wor'ing in/a0 1 company /b0 1 firm /c0 1 private company /d0 2one JJA 1t times a contract is discharged under the doctrine of frustration. 4oes it mean/a0 4ischarge by performance /b0 4ischarge by agreement /c0 4ischarge by breach /d0 2one

QA2 J agreed in writing to sell 120 acres of land to F for ?s. ! 8illion. 9he purchase price was to be paid in three installments- a first of 1.% million ?s., followed in twelve months by a second of ?s. 0.( 8illion and then, after further twelve months by a final payment of ?s. 0.( million. =t was further provided that on the occasion of each completion a propotionate part of theland shall be released forthwirh to F . 9he parties provided no machinary for the allocation of the propotionate parts. .hat is the legal effect of the agreement# 3upport your answer with arguments discussing the >uestion of law involved. QA! 1hmad who was admitted in a hospital, was re>uired to undergo a surgery, before his operation he agreed to sell his house which was already listed for sale, to his doctor for ?s. *.( million. 9he mar'et price of the house was ?s. 10 million. 1fter the successful operation 1hmad rescinded the agreement alleging "Hndue influence" by the doctor. &an he succeed# @xplain 'eeping in view the ingredients of undue influence as laid down in the &ontract 1ct, 1)(2. QA" IL goes to the show room of 2asir a car dealer, and after loo'ing at various models, he agrees to buy a 6onda &ivic car. 9he car brea's down four times during the first month and IL wished to 'now whether he has any remedies against 2asir. 1dvise him in the light of 3ales of Coods 1ct, 1*!0.

QA$ 4escribe the general principle in determining the existence of partnership# &ompare the principle with the rule laid down in &ox v. 6ic'man. QA% ? signed a document in these terms in consideration of the loan of ?s. 1000EA from .K =, ? agree to repay . the sum of ?s.1000EA on or before 4ecember !1, 200(". .hether the above document can be treated as a promissionary note# Cive the specifics of a promissionary note. QA( @xplain the status and significance of 1rticles of 1ssociation of a company. 9he articles of a private company provided that every member who intends to transfer shares shall inform the 4irectors who will ta'e the said shares ... at a fair price . 9he plaintiff held (2$ fully paid up shares of ?s.10EA each and he as'ed the directors to buy them but they refused. .ere the directors bound to ta'e the shares# Cive reasons# QA) @xplain the essentials of a valid award. 1 ship called 9anais was chartered for a voyage between &anada and =taly. 1 clause in the charter party provided for disputes to be settled in ;ondon. 1 dispute arouse and the owners of the 9anais as'ed the charterers to agree on an arbitrator but the charterers would not concur in an appointment. 3uggest solution

G@4@?1; +H7;=& 3@?5=&@ &,88=33=,2 &,8+@9=9=5@ @J18=219=,2 G,? ?@&?H=98@29 9, +,393 =2 7+3 M 1( H24@? 96@ G@4@?1; C,5@?28@29, 200(. 8@?&129=;@ ;1. 9=8@ 1;;,.@4- 96?@@ 6,H?3 81J=8H8 81?L3-100 2,9@- /i0 1ttempt G=5@ >uestions in all including >uestion 2o. ) which is compulsory. 1ll >uestions carry @QH1; mar's. =n each of the following cases given your decision and state the legal principal that applies. +lease refrain from- /10 ?eproducing the facts of the casesK /20 Hnnecessary and irrelevant detailsK /!0 Hnreadable handwriting. /ii0 @xtra attempt of any >uestion or any part of the attempted >uestion will not be considered /iii0 &andidate must draw two straight lines /NNNNNNNNNNNNNNNNNN0 at the end to separate each >uestion attempted in 1nswer 7oo's. 1. 1ftab, 7ashir and &hinar are partners in computer business. 9he terms of the partnership agreement provided that the business of the firm is to buy and sell used computers. 1t the beginning of 4ecember 200%, &hinar retired from the firm. 2otice was placed in the newspapers and existing clients were informed of the retirement. =n the middle of 4ecember 200% 4ilawar joined the firm. =n early Ianuary 200( the partners were surprised to receive delivery of an on invoice for some very expensive computers, which had been purchased in the firmDs name by &hinar, shortly before his retirement. 1t the end of Ianuary 200( 1ftab departed from the firm without notice, ta'ing with him ?s. "000,000 which had been left with the firm by a client who wished the partnership to obtain some computers for him. 6ow far can the firm andEor the individual partners be made liable for/a0 +ayment for the computers /b0 9he missing ?s. "000,000

2. 1dnan has entered into a partnership with 7asharat and &hohan to operate a motor parts manufacturing company. .hile 7asharat and &hohan are out of town, 1dnan signs the following

contracts, on behalf of the partnership/a0 &ontract for a ?s. 1000,000 loan from 7an' of the .est /b0 1 contract to purchase an adjoining piece of real estate to build a new par'ing lot for the company employees. Gurhermore, 1dnan opens a new ban' account for the business at the Htility 7an' ;imited. 1ssuming that 1dnan and the partnership breach their obligations under the two contracts and 1dnan ma'es some unauthoriOed withdrawals from the new ban' account, please discuss whether or not the partners /71sharat and &hohan0 and the partnership are li'ely to be liable to the third party and the ban'.

!. 6ashim is a promoter in the process of forming a private limited company. 6e see's your advice on the following matters. /a0 6ashim has bought a piece of land which he wishes to sell to the company once it is formed. 6e paid ?s. "000,000 for the land but expects the company to pay him ?s. $000,000 for it. 6e wishes to 'now if he can do this and what, if any, duties he owes to the company in respect of the sale. /b0 7efore he registers the company, 6ashim wishes to 'now what restrictions there might be on freedom to choose the companyDs name.

". 1slamDs mate from the housing scheme he lives in, 7ilal, has told 1slam that he should never do business as a company, because :in this country if you form a company, you gain no advantages and spend the rest of your life dealing with red tape, worthless meetings, and the li'e<. .ould you share 4elawarDs sentiments# 4iscuss.

$. ,n Ianuary 10, 200(, 1, a manufacturer of plastic products, sent a purchase order to 7, 1Ds regular supplier of raw plastic. 9he purchase order included a provision re>uiring that 7 shall deliver the plastic on Gebruary 1$, 200(. 9he 7Ds ac'nowledgment provided that delivery would occur on 8arch 1. 200(. .hen does the contract re>uire seller to deliver the goods# 4iscuss.

%. Iaved advertises a 'itchen table and chairs for sa'e in the newspaper classified. 1slam answers the ad, and comes over to pic' up the furniture and pay for it. 1fter 1slam has paid Iaved, he realiOes that none of the furniture will fit in the bac' of his car. 3o 1slam leaves the furniture inplace and decides to >uic'ly go borrow a truc' from a friend and return. 6owever, during the interim, the furniture is destroyed when IavedDs house burns down. 1slam demands a refund of his payment which Iaved straight away refuses. .hat would you advise 1slam to file a suit in a court or a reference with an arbitrator# .hich of these two modes would be suitable i.e. swifter and less expensive for 1slam to adopt in this situation#

(. ,ne day this spring 1 awo'e in the morning and loo'ed out his window while 7, his neighbor who was a painter, painting outer walls of the 1Ds house. :=snDt that nice<, 1 thought as he rolled over and went bac' to sleep, :7 want to ma'e a good impression as a helpful neighbor.< ;ater that day, 7 'noc'ed at 1Ds door and as'ed for ?s. 2000 for the painting wor'. 1 told him, :Co away. = always myself paint my house. = never as'ed you to paint for me.< 9he going rate for the painting done by 7 is ?s. 1$00. =s there any contract between 1 and 7# =f so is 1 contractually obligated to pay 7 ?s. 2000 or ?s. 1$00# 4iscuss.

&,8+H;3,?F QH@39=,2

). .rite only correct answer in the 1nswer 7oo'. 4o not reproduce the >uestion. /10 .hich of the following is a bilateral contract# /a0 1 tells 7 that he will pay him ?s. 200 if 7 will wash his car which 7 does. /b0 1 writes 7 a letter in which he promises that if 7 will wash his car, he will pay him ?s. 200 which 7 does. /c0 1 and 7 both sign a piece of paper which says :1 agrees to pay 7 ?s. 200 if 7 agrees to wash 1Ds car in exchange for ?s. 200. /d0 2one of these /20 1 called his friend 7 and offered to give him two tic'ets of a cric'et match ta'ing place next month. 7 said :o'ayP = love to watch cric'et matches<. 1 few days later 1 called 7 and told him that he couldnDt give 7 the tic'ets. 1ssuming 7 sued 1/a0 6e would probably win as a contract was formed /b0 6e would probably lose because the contract was not in writing /c0 6e would probably lose as the court would hold no contract was formed /d0 2one of these /!0 Hnder the doctrine of >uasi contract, a plaintiff may recover in :>uantum merit<, a ;atin phrase that means/a0 :1s much as he deserves< /b0 :9reble damages< /c0 :,nly a to'en sum< /d0 2one of these /"0 .hich of the following writings are negotiable instrument# /a0 1 promise to pay ?s. 2000 for the services rendered if the services are renders as soon as possible. /b0 1n unconditional promise to pay a reasonable sum for the services rendered /c0 1n unconditional promise to pay ?s. !000 sometime next month. /d0 2one of these /$0 1 has a bill of exchange that does not indicate when it is to be paid as the language of the bill only says :+ay<. .hen it is payable to 1# /a0 =n !0 days /b0 2ever as the instrument is void if it does not have a payment date. /c0 =n a reasonable time /d0 2one of these /%0 1 writes a chec' on his 6abib 7an' account to pay for groceries at Htility 3tores. .ho is the drawee# /a0 Htility 3tores /b0 7oth 6abib 7an' and Htility 3tores /c0 6abib ban' /d0 2one of these /(0 .hich of the following may count as the signature of a drawer# /a0 1n :J< made by the drawer /b0 9he signature of the drawerDs agent /c0 7oth of the above /d0 2one of these /)0 .hich of the following language on an order will create a bill of exchange#

/a0 +ay J if you can /b0 = wish you would pay J /c0 +leas pay J /d0 2one of these /*0 .hich of the following is payable at a definite time# /a0 :+ayable when :Q< wins the presidential election< /b0 :+ayable on or before 8ay !0 /c0 7oth /a0 B /b0 /d0 2one of these /100 .hich of the following phrases ma'es an order bill of exchange# /a0 :+ay to the order of 1< /b0 :+ay to the order of my brother< /c0 7oth /a0 and /b0 /d0 2one of these /110 1 writes a postdated che>ue. =s it negotiable# /a0 Fes /b0 2o, because it does not specify a definite date of payment /c0 2o, because postdated chec's are void /d0 2one of these /120 Fou write a che>ue to pay for your haircut. =n this transaction, who is the drawee# /a0 Fou because you drew up the che>ue /b0 Four ban' because it may pay the che>ue /c0 9he person who cuts your hair because the che>ue is payable to him. /d0 2one of these /1!0 9he best, simple definition of a contract is/a0 1n objective :meeting of minds< /b0 1 negotiated twoAparty agreement upon which party will act or refrain from acting. /c0 1 document reflecting a :meeting of the minds< between two or more competent parties. /d0 2one of these /1"0 =f 1 is hit by a car, and 7, a doctor sees the incident and performs emergency first aid upon 1 which results in 1 recovery/a0 1 unilateral contract is created whereby 1 is obligated to pay 4r. 7 for services rendered. /b0 1 bilateral contract is created and both parties must perform their duties /c0 1 >uasi contract is created between the parties /d0 2one of these /1$0 1 offers to sell to 7 a mobile phone for ?s. $$00. 7 tells 1 that he will ta'e the phone for ?s. "$00. 2othing further is said and the next day, 1 demands ?s. $"00 from 7 in exchange for the phone. &hoose the true statement. /a0 7 is not obligated to pay ?s. "$00 to 1 /b0 7 is obligated to pay ?s. "$00 to 1 /c0 7 is obligated to pay ?s. $$00 to 1 /d0 2one of these /1%0 9he most common form of agency is/a0 =mplied /b0 @xpress /c0 =njunctive

/d0 2one of these /1(0 1ssume that a new partner enters an ongoing partnership. 9he new partnerDs liability to preexisting creditors is best described by which of the following# /a0 9he new partner is not liable to preexisting creditors of the firm. /b0 9he new partner must negotiate his or her liability with the preexisting creditors. /c0 9he new partner is only liable to the preexisting creditors to the extent of his capital contribution /d0 2one of these /1)0 .hat is not a correct statement concerning promoters# /a0 9hey are agents of the company. /b0 9hey generally are active before the company is formed. /c0 9hey owe fiduciary duties to the company. /d0 2one of these /1*0 9he phrase :piercing the corporate veil< refers to/a0 =nspecting the boo's of the company. /b0 9he ignoring by courts of the corporate entity in order to do justice /c0 ;earning the identity of the shareholders of the company . /d0 2one of these /200 .hen someone gives to another person a power of attorney, this means that/a0 3uch person is an undisclosed principal /b0 3uch person is a disclosed principal /c0 3uch person given the power has authority to act as an agent /d0 2one of these

G@4@?1; +H7;=& 3@?5=&@ &,88=33=,2 &,8+@9=9=5@ @J18=219=,2 G,? ?@&?H=98@29 9, +,393 =2 7+3 M 1( H24@? 96@ G@4@?1; C,5@?28@29, 200%. 8@?&129=;@ ;1. 9=8@ 1;;,.@4- 96?@@ 6,H?3 81J=8H8 81?L3-100 AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA 2ote- /i0 1ttempt ,2;F G=5@ >uestions in all, including Question 2o. ), which is &ompulsory. 1ll >uestion carry e>ual mar's. =n each of the following cases give your decision and state the legal principle that applies. Four answer must correctly identify the relevant areas of law, accurately discover and apply the appropriate principle, caseAlaw and statue law, and should be well structured and argued. +lease refrain from- /10 ?eproducing the facts of the casesK /20 Hnnecessary and irrelevant detailsK /!0 Hnreadable handwriting. /ii0 @xtra attempt of any >uestion or any part of the attempted >uestion will not be considered. Questions 1. ,n 1st 3eptember 8r. Creen emails 8r. 7rown to see whether he would li'e to buy his collection of anti>ue paintings. 8r. 7rown has admired the collection for many years. 8r. Creen says that the collection is very valuable and should fetch about ?s. 200,000 at auction, but if 8r. 7rown is interested in ta'ing the whole lot, he can have them all for ?s. 1$0,000. 8r. Creen tells 8r. 7rown he can thin' about it for ( days, but after that, 8r. Creen will have to consider alternative offers.

8r. 7rown is very excited about the possibility of ac>uiring the painting, so on the !rd 3eptember 8r. 7rown phones 8r. Creen to see whether he will send him an authentication certificate for the genuineness of the paintings along with the paintings. 8r. Creen says he will consider 8r. 7rownDs re>uest. ,n "th 3eptember after consulting with the relevant experts, 8r. Creen sends a fax to 8r. 7rown saying that he will provide the authentication certificate, but that the price must go up to ?s 2$0,000, as this reflects the cost of getting with 8r. 7rownDs fax machine so the fax was not received there. 8r. 7rown decides that he will have the paintings anyway, so on $th 3eptember he writes a letter to 8r. Creen saying he will ta'e the entire anti>ue paintings. 6e admires the collection and offers 8r. Creen ?s. !00,000 for its. 1s 8r. Creen has not heard from 8r. 7rown, he sells the collection to 8r. .hite. 9he ;etter from 8r. 7rown arrives on the (th 3eptember. =s there any binding contract between 8r. Creen and 8r. 7rown# .hy or why not# 2. 3ajid instructs his agent 8ajid to purchase a house for no more than ?s. *0,00,000 and as he wishes to remain anonymous, 3ajid re>uests 8ajid not to disclose his identity. 9he vendor, Qahid, refuses to sell for less than ?s. *$,00,000 believing that 3ajid will consent on learning of circumstances. 6ence 8ajid signs all documentation in his own name and pays the deposit. 3ajid refuses to accept the contract on learning of the circumstances. 6ence 8ajid signs all documentation in his own name and pays the deposit. 3ajid refuses to accept the contract entered into by 8ajid. @xplain, with reasons, whether Qahid can enforce the contract against/a0 3ajidK /b0 8ajid /c0 =s 8ajid liable to 3ajid for exceeding his authority# !. ,n 12A01A200% 1 contracted for the purchase of $0 computers from 7. 9he contract stated that the computers were to be delivered on the 12A02A200%. 4espite the fact that 1 persistently pressed 7 for delivery, the computer had still not been delivered by 2)N02N200%. /7 had repeatedly assured 1 that computers were not delivered by 01A0!A200%0. 1 then told 7 that if the computer were not delivered by the 0$A0!A200%, the contract would be terminated. 7 did not attempt to deliver until the 10A0!A200%. 6aving bought computers from another dealer on 0%A0!A 200%, 1 refused to ta'e deliver. 1dvise 1 as to whether he was entitled to refuse deliver. ". 1 testator, who carried on business alone by his will appointed three persons to carry on his business for the benefit of his wife for her life. 1fter his death his executors carried on the business under the same name for eight years. 1re the executors partners# .hy or why not# $. 1 client has in his possession the following instruments17& /+vt0 ;imited =, :1< son of :7<, hereby promise to pay to the order of & ?s. $0,000 upon the receipt of the final distribution from the estate of my deceased uncle :4<. 9his pronote is given by me as the down payment of a 9oyota 2.0 4 200% model to be delivered in two wee's. :1< son of :7< 2=& 2o. 111A111A111111 9he instrument is /a0 1 valid +romisory 2oteK /b0 1n invalid +romisory 2ote because it is undated. /c0 1n invalid +romisory 2ote because it is not payable at a definite timeK /d0 1n invalid +romisory 2ote becaue it is subject to two wee's delivery time. &hoose the correct statement from amongst the above and argue plus state the relevant principle of law in support of your choice. %. &hoose one issue in the &ompany ;aw which seems to you to re>uire reform. @xplain why the law is unsatisfactory and how you would improve it.

(.

Hnder what circumstances a party to an arbitration contract can remove his artitrator#

&ompulsory Question /10 .hen an offer can only be accepted by the performance of the person to whom the offer is made. =s characteristic of/a0 bilateral contractsK /b0 unilateral contractsK /c0 implied contractsK /d0 2one of these /20 1 tells 7, :=f you stood first in the class, =Dll pay you ?s. $000.00. 7 stood first in class and 1 paide him ?s. $000.00. .hich of the following is correct# /a0 1 and 7 had a unilateral contractK /b0 1 and 7 had an executor contractK /c0 1 and 7 had an executed contractK /d0 2one of these /!0 1 offers to sell 7 his motorcycle at some time in the future. 7 accepts. =s there a valid contract# /a0 +robably not, the terms are not definiteK /b0 +robably yesK /c0 4efinitely not because 1 failed to communicate the offerK /d0 2one of these /"0 .hich of the following is not an effective way to terminatean offer# /a0 7y rejectionK /b0 7y acceptanceK /c0 7y counter offerK /d0 2one of these /$0 1 offers to sell 7 his collection of rare boo's for ?s. $000. 7efore b even has a chance to accept, 1 says :3orry, = changed my mind, no deal.< 9his is an example of/a0 ?evocationK /b0 ?ejectionK /c0 &ounter offerK /d0 2one of these /%0 1 and 7 enter into a contract in which 1 agrees to deliver mil' to a restaurant. 9hey forget to include a price in the agreement. 1 court will/a0 refuse to enforce the agreementK /b0 select the lowest >uoted price for mil' and insert it into contractK /c0 determine a reasonable price and insert it into the contractK /d0 2one of these /(0 1 agreed to supply food for .alima to b at 1 pm. 6owever, he could hardly supply the food at $ pm. /a0 7 can reject the deliveryK /b0 6e cannot reject the delivery /c0 7 must accept the delivery /d0 2one of these /)0 .hich of the following actions an unpaid seller cannot ta'e against a buyer-

/a0 ;ienK /b0 3toppage in transitK /c0 3aleK /d0 2one of these /*0 .hen a partnership is found liable for a debt, which assets are first used to pay the debt# /a0 =ndividual assets of the partnersK /b0 +ersonal property of the limited partnersK /c0 +artnership 1ssests /d0 2one of these /100 1 partnership involves three essential elements. .hich of the following is not one of those elements# /a0 1n e>ual right in the management of the businessK /b0 ;imited liability for breach of contractK /c0 1 joint ownership of the business /d0 2one of these /110 .hich of the following actions re>uires the unanimous consent of all partners before it may be underta'en# /a0 6iring a new employee /b0 +urchasing new office e>uipment /c0 1dmitting new partners /d0 2one of these /120 1n order =nstrument is the one which is payable to/a0 1 named personK /b0 9o a bearerK /c0 9o both /d0 2one of these /1!0 1 bearer =nstrument is the one which is payable to/a0 1 named personK /b0 9o a bearerK /c0 9o bothK /d0 2one of these /1"0 1 holder in due course is the one/a0 who finds an instrumentK /b0 who steals an instrumentK /c0 who gets an instrument as a giftK /d0 2one of these /1$0 Gor the incorporation of a limited liability company filling of memorandum of association is essential/a0 for a public limited company onlyK /b0 for a private limited company, a public limited company and an unlimited companyK /c0 for a public limited company onlyK /d0 2one of these /1%0 1 subsidiary company is the one/a0 which holds the majority shares of another companyK /b0 which deals in the trading of shares of other companiesK /c0 in which the majority shares are held by another companyK

/d0 2one of these /1(0 1 is considering different forms of business organiOation for his business. Gor the purposes of owning property and being a party to litigation, forms which are legal entities separate from their owners include/a0 ;imited +artnership onlyK /b0 +rivate ;imited &ompanies onlyK /c0 7oth +rivate and +ublic ;imited &ompaniesK /d0 2one of these /1)0 1 decision made by arbitrators is called/a0 3entenceK /b0 1wardK /c0 Iudgment /d0 2one of these /1*0 1n empire in an arbitration reference is appointed when the number of arbitrators is/a0 ,ddK /b0 @venK /c0 8ore than 10K /d0 2one of these /200 9he appointment of a person of the minor age as an agent is/a0 5oidK /b0 5alidK /c0 5oidableK /d0 2one of these

8@?&129=;@ ;1. /&33 200$0

9=8@ 1;;,.@4- 96?@@ 6,H?3 81J=8H8 81?L3- 100

2,9@- 1nswer G=5@ >uestions in all, including Question 2o. ) which is &,8+H;3,?F. 1ll >uestions carry @QH1; mar's. =n each of the following cases give your decision and explain in detail the legal principle that applies on the case. Four answer must correctly identify the relevant areas of law, accurately discover and apply the appropriate provision thereof as well as the relevant case law. Four answer must also be well structured and well argued. ?efrain from- /10A ?eproducing the facts of the casesK /20 M Hnnecessary and irrelevant detailsK /!0 M Hnreadable handwriting. 9ari> wor's for a boo' publisher, ta'ing orders for boo's and delivering boo's to the boo'shops throughout 2orth .est Grontier +rovince. 9he customers pay for the boo's by sending payment direct to the publisher and 9ari> has no authority to accept any payments. 6owever, 6amid, the owner of the &ity 7oo' 8art, has given payment for boo's to 9ari> on a number of occasions and the publisher has not objected. 1 few wee's ago 6amid bought large >uantity of boo's and gave 9ari> cash. 9ari> has disappeared with the money. 9he publisher is threatening to sue 6amid for the price of the boo's. 1dvise 6amid. Iaved, 8urad and 4anish carry on business in partnership as painters and decorators. 9he

business was started with a loan from IavedDs father 7ashir, which the partners are still reApaying. 9he firm has two employees, ?aheel and 8ubashir, who, although not partners, are treated as trusted members of the firm and have their names alongside those of the partners on all of the firmDs stationery. ?ecently the firm has had some difficulties. Iaved was wor'ing at a customerDs house using a blowAlamp to strip paint from the window frames, when he accidentally set fire to the wood and the house was badly damaged. 8eanwhile, 8urad was holding a ladder for 4anish but accidentally let it slip, so that 4anish fell and was injured. =t has also come to light that 4anish had ta'en money from a customer in order to buy paint and wallpaper, but instead he 'ept the money for himself. 9he tow customers and 4anish are threatening to sue the firm, the partners, ?aheel, 8ubashir and 7ashir, for the loss and injury they have suffered. 1dvise the parties as to their potential liability. 3ardar, the owner of a small computer shop, bought a consignment of computers from 3hahbaO. 9he computers turned out to be defective and did not conform to the specification that 3ardar had been led to expect. 3ardar had assumed he was dealing directly with 3hahbaO, who had not indicated that anyone else was involved in the transaction. 6owever, when 3ardar confronted 3hahbaO about the defects in the computers, 3hahbaO told 3ardar that he had been selling the machines on behalf of &hips B 7ytes /+rivate0 ;imited and added that any defects were not his responsibility as he was only an agent. 3ardar has made in>uiries and discovered that &hips B 7ytes /+rivate0 ;imited have now gone into li>uidation. 1dvise 3ardar. 1 and 7 agree to run a tution centre on the partnership basis. =n one of the clauses of their adjudication. =n a dispute which was being settled by two arbitrators appointed by them, 1 noticed that his arbitrator appointed is unjustifiably favouring 7. 1 doubts that his arbitrator might have been bribed by 7, therefore, he does not expect any justice from him. 6ow can he get rid of his arbitrator # .hat would you advise him in these circumstances# 6ightech /+rivate0 ;imited manufactures and sells computer modems. Coonline /+rivate0 ;imited is an internet service provider that re>uires a large and complex modem to serve its customers. 4ue to high demand, Coonline /+rivate0 ;imited is planning to expand its customer base from 10,000 subscribers to 1$,000 subscribers. 10,000 of the subscribers can be handled by the existing modems that Coonline /+rivate0 ;imited already has. 6owever, in order to accommodate the additional $000 subscribers, Coonline /+rivate0 ;imited contracts with 6ightech /+rivate0 ;imited to purchase $ additional modems at a cost of ?s. 2000 each. 9he contract specifies a delivery date of 1 8arch. Coonline /+rivate0 ;imited spends ?s. 1000 in advertising during the month of Gebruary announcing the planned service, and is confident that it will be able to sign up an additional 1000 subscribers in the month of 8arch after installation of the new modems. ,n 1 Gebruary, 6ightech /+rivate0 ;imited calls and repudiates stating that it is unable to meet the 1 8arch delivery due to bac'log of orders, but would be able to deliver by 1 1pril. Coonline /+rivate0 ;imited chooses to wait for the delivery by 1 1pril. 1fter the modems are delivered and installed, Coonline /+rivate0 ;imited brings an action for the lost revenues from an anticipated 1000 subscribers over the month of 8arch /?s. 20,0000, the cost of advertising during the month of Gebruary /?s. 10000, and the cost of advertising during the month of 8arch /?s. 10000. .hich, if any, of these costs is recoverable # 6assan 3eeds/+rivate0 ;imited is a supplier of 3oya 7eans seeds. Gahad contracted with 6assan 3eeds/+rivate0 ;imited for the delivery of one ton of 3oya 7ean seeds, for delivery at GahadDs plant. 1fter delivery, Gahad began the process of inspecting the 3oya 7eans seeds for >uality. 9he inspection testing procedure is involved, and usually ta'es several wee's to complete because it involves growing at least some of the seeds. 1fter one month, Gahad noticed several defects in the seedlings that were growing. Gahad immediately notified 6assan 3eeds /+rivate0 ;imited of the defects, and rejected the entire lot. 6assan 3eeds/+rivate0 ;imited come to you for advice concerning a possible action of breach against Gahad. 3pecifically, 6assan as's you whether Gahad has accepted the seeds, or properly rejected the seeds. 6ow do you advise 6assan 3eeds/+rivate0 ;imited # 9anweer, who owns a shop selling electrical goods, received an offer from ;owprice @lectrical .holesalers to sell him $0 washing machines at a discount price of ?s. (00 each. 9he following morning, 9anweer posted a letter to ;owprice @lectrical .holesalers accepting their offer, unaware that, at the same time, ;owprice @lectrical .holesalers had sent him a letter withdrawing the offer. ;owprice @lectrical .holesalers is now refusing to deliver the washing

machines. 9anweer also received a letter from 3alamDs 4iscount .arehouse, offering to supply him with 20 freeOers at ?s. 1200 each. 9he letter stated that 3alamDs would assume their offer had been accepted if they did not hear to the contrary from 9anweer within $ days. 9anweer, who did not want the freeOers, ignored the letter but 3alamDs 4iscount .arehouse have now delivered the freeOers to his shop. 1dvise 9anweer of his legal position in respect of both ;owprice @lectrical .holesalers and 3alamDs 4iscount .arehouse. &,8+H;3,?F QH@39=,2 )..rite the correct answer in the 1nswer 7oo'. 4o not reproduce the >uestion. /10 9alal is forming a business which he wants to control completely. 6e 'nows nobody else with whom he wishes to wor', he values his privacy, and he disli'es formality, paper wor', state filing re>uirements, and lawyers. .hat type of business organiOation should he prefer # /a0 Ceneral +artnership /b0 3ole +roprietorship /c0 3ingle 8ember &ompany /d0 2one of these /20 9he 1rticles of 1ssociation of a company contain/a0 a set of governing rules adopted by the company. /b0 ?esolutions of the board of 4irectors. /c0 =nformation about the corporation, including its organiOation and functions. /d0 2one of these /!0 1 partnership involves three essential elements. .hich of the following is not one of those elements # /a0 1n e>ual right in the management of the business /b0 ;imited liability for the liabilities of the firm /c0 1 joint ownership of the business /d0 2one of these /"0 ?ashid, 3hahid and 9alal agree to form a computer business. ?ashid agrees to manage the business and to assume full personaK liability. 3hahid and 9alal agree to invest in the firm but to be liable only to that extent. 9hese three have formed /a0 1 limited liability company /b0 a limited liability partnership /c0 an unlimited partnership /d0 2one of these /$0 9he members of a limited partnership include/a0 general and limited partners /b0 general partners only /c0creditors /d0 2one of these /%0 1 bearer che>ue may be negotiated by/a0 8ere delivery /b0 @ndorsement and delivery /c04elivery with a separate written contract /d0 2one of these /(0 9he responsibility for overall management of a company belongs to/a0 the chief financial officer /b0 the employees /c0the board of directors /d0 2one of these /)0 9he best definition of a >uorum is which of the following # /a0 =t is $1R of all shareholders. /b0 =t is the number of members of a company that must be present before business may be transacted. /c0 =t is the number of voters who must agree to alter the companyDs articles /d0 2one of these

/*0 .hen a partnership is found liable for a debt, which assets are first used to pay the debt # /a0 =ndividual assets of the partners /b0 +ersonal property of the limited partners /c0+artnership assets /d0 2one of these /1009he board of directors does not have responsibility over which of the following areas # /a0 9he appointment, supervision, and removal of corporate officers /b0 9he appointment, supervision, and removal of employees generally /c0 9he declaration and payment of corporate dividends /d0 2one of these /1101 found a wallet full of money on a roadside and upon finding the address of the owner in the wallet he returned it to its owner. .hen he came bac' he read the announcement of a reward for the return of such wallet in the newspaper/a0 9he owner is liable to pay him the reward /b0 9he owner is not liable to pay him the reward /c0 9he owner is liable to pay him half of the reward /d0 2one of these /120 8uhsin is considering forms of business organiOation for his law firm. ,ne advantage of the limited liability partnership form is that it allows the limited partners to avoid personal liability for/a0 the malpractice of other limited partners regarding the conduct of the firmDs business /b0 the obligation of the firm beyond their contributions to the capital /c0 the obligations of the firm within the limit their contributions to the capital /d0 2one of these /1!0 1Ds son has forged 7Ds name to a pronote. 7 under threat of prosecuting 1Ds son demanded that 1 should sell him his house that is worth ?s. 1000,000EA for !00,000EA. 1 agrees with the proposal K 9he contract is/a0 5alid /b0 5oidable /c0 5oid /d0 2one of these /1"0 9he best, simple definition of a contract is/a0 an objective :meeting of the minds< /b0 a legally enforceable agreement /c0 a document reflecting a :meeting of the minds< between two or more competent parties /d0 2one of these /1$0 3alman signs a written contract with Lhalid giving him the right to cast his votes in the election for the directors of 6ashiya ;imited, whose shares 3alman holds. 9his agreement between 3alman and Lhalid is 'nown as/a0 a derivative agreement /b0 a proxy /c0 a 8emorandum of Hnderstanding /d0 2one of these /1%0 1 sent a proposal to 7 by post for the sale of his house. 7 accepted the offer by post. 1 may revo'e his proposal at any time before /a0 7 receives the letter of proposal /b0 7 posts the letter of acceptance /c01 receives the letter of acceptance /d0 2one of these /1(0 4anish offers to sell to 3adi> a mobile phone for ?s. $$0. 3adi> tells 4anish that he will ta'e the phone for ?s. "$0. 2othing further is said and the next day, 4anish demands ?s. "$0 from 3adi> in exchange for the phone. &hoose the correct statement/a0 3adi> is bound to pay as his offer has been accepted by 4anish /b0 1lthough there is no contract 3adi> /c0 3adi> is not bound to pay as there is no contract /d0 2one of these

/1)0 =f you want to start a partnership what formal re>uirements do you have to meet # /a0 Fou must register the firm with the ?egistrar of Girms /b0 Fou do not need to satisfy any formal re>uirements /c0 Four firm cannot operate until you draft and get registered the 1rticles of +artnership /d0 2one of these /1*0 9he relation between the partners of a firm is of/a0 @mployer and @mployee /b0 9rustee and 7eneficiary /c0 +rincipal and 1gent /d0 2one of these /200 1 bearer of instrument may be negotiated by/a0 8ere delivery /b0 @ndorsement and delivery /c0 4elivery with a separate written contract /d0 2one of these

@J18=219=,2, 200" 8@?&129=;@ ;1.. 9=8@ 1;;,.@4- 96?@@ 6,H?3 81J=8H8 81?L3- 100 2,9@- 1ttempt G=5@ >uestions in all including QH@39=,2 2o.) which is &,8+H;3,?F. 1ll>uestions carry @QH1; mar's. 1. 1 firm of building contractors had contracted to build $0 houses in 10 months. 9he wor' too' 20 months to complete because of the lac' of s'illed labour. 9he contractors pleaded that the contract price was not bninding on them, and that they were entitled to ! greater sum on the basis of a >uantum meruit in view of the extra labour costs involved because the contract had been frustrated. .hat are you &omments# 2. 8r. Qulfi>ar was offered the post of +rofessor of ;aw at J Hniversity on the condition that he would get his practicing licence cancelled to cease law practice. 8r. Qulfi>ar did not agree to cease to practice. ,n this the Hniversity authorities refused to employ him in the post. &an 8r. Qulfi>ar succeed in the suit brought by him against the Hniversity for getting the job# @xplain. !. 1 company had power under its S 8emorandum T"to sell or lend all 'inds of railway plant and to carry on the business of mechanical engineers and contractors". =ts directors agreed to build a dam to produce hydra 1 power in country 9 and this agreement was ratified by the company. 4evelop your answer 'eeping in view the legal importance of the object clause in a memorandum of a company. ". 1. the holder of a bill transfers it to 7, without consideration. 7 also transfers it to & without consideration. & transfers to 4 for value. 4 transfers it toS @ without consideration. 4iscuss the rights of @ against 1, 7, & and 4. $. .rite a detailed note on the different modes of dissolution of a firm. %. 4iscuss the law regarding appointment of Hmpire. &an the court remove the umpire and under what circumstances# (. =s the insurer liable in the following cases# /a0 1 ta'es a policy on his life and later commits suicide. /b0 1 ta'es a policy on his wife s life and discovers her 3he dies.

G@4@?1; +H7;=& 3@?5=&@ &,88=33=,2 &,8+@9=9=5@ @J18=219=,2 G,? ?@&?H=98@29 9, +,393 =2 7+3 M 1( H24@? 96@ G@4@?1; C,5@?28@29, 200!. 8@?&129=;@ ;1. 9=8@ 1;;,.@4- 96?@@ 6,H?3 81J=8H8 81?L3-100 2,9@- 1. 1ttempt G=5@ >uestions in all, including >uestion 2o. ) which is &,8+H;3,?F. 1ll >uestions carry @QH1; mar's. 2. =n each of the following cases give your decision and state the legal principal that applies. Four answer must correctly identify the relevant areas of law, accurately discover and apply the appropriate principles, caseAlaw and statute law, and should be well structured and argued. +lease refrain from /10 ?eproducing the facts of the casesK /20 Hnnecessary and irrelevant detailsK /20 Hnreadable handwriting. 1. 1sif and 7abar carried on a business of household furniture under the name :1sif B 7abarDs<. 9he partnership was dissolved in 1pril 1***, but 7abar carried on the business under the same name. =n 2001 Larigar /+vt0 ;td. which had not previously dealt with 1sif B 7abarDs, obtained an order to supply them with six suits of furniture. 9he price was never paid, and the company obtained judgment for the recovery of the price against 1sif B 7abarDs, and sought to enforce it against 1sif. 9he only 'nowledge which the company had of 1sif was that his name has appeared on some old headed notepaper /used before the dissolution0, which had been used by 7abar without 1sifDs authority in confirming the order for the purchase of the furniture, and which 1sif had failed to destroy before he left the firm. =s 1sif liable to Larigar /+vt0 ;td# .hy or why not# 2. :9he ;aw treats a registered company as a separate legal person from its members. 9o this general rule there are several exceptions.< @xamine the statement by giving two examples of circumstances in which the court will loo' at the reality behind the legal faUade. !. 1ftab subscribed for shares in ,verseas 9rade ;td. on the basis of the prospectus which showed that for the previous five years the company had earned substantial and increasing profit. 3hortly after allotment he sold half of his shares to 7ilal at a large profit. 9he information in the prospectus was correct but it omitted to mention that much of the business was in the 8iddle @ast and because of war in that region the profits had been materially reduced. 9he shares are now half the price paid by 1ftab. &ompare and contrast the remedies available to 1ftab and 7ilal in such a situation. ". 6ow is a contract affected by a unilateral mista'e of fact# 4iscuss in detail. $. 1rif purchased a used car from Creen 8otors. 6e as'ed the seller if the car had ever been wrec'ed in an accident. 9he salesperson of the Creen 8otors ;td. had never seen the car before that morning and 'new nothing of its prior history, but >uic'ly answer 1rifDs >uestion by saying, :2oP =t has never been wrec'ed in an accident.< =n fact the care had been seriously damaged in an accident and, although repaired, was worth much less than the value it would have had if there had not been any wrec'. .hen 1rif learnt the truth, he sued Creen 8otors ;td. and the salesperson for rescinding the contract on the basis of fraud. 9hey raised the defence that the salesperson did not 'now that the statement was false and had not intended to deceive 1rif. 4id the contract of the salesperson constitute fraud# .hy or why not# %. &ompare the status of the finder of a lost che>ue with the status of the finder of a lost watch. 4iscuss in detail.

(. 9here was a dispute between 1li and 7ashir which they referred to an arbitrator. 9he arbitrator decided for 7ashir. 1 law graduate nephew of him told him that, unli'e a judgment of a court of law, the award of an arbitrator cannot be executed by a court. &an he involve a court in the execution of such award# 6ow# Hnder which ;aw# 1dvise him in detail.

&,8+H;3,?F QH@39=,2 ). =n each of the following clauses of this >uestion only one statement is correct. .rite down in your answer boo' only the correct statement of the following clauses. 4o not write the whole clause. /10 9o what extent is a member of a company which is limited by guarantee personally liable for the companyDs debts# /a0 6e is personally liable for all the companyDs debts at any time. /b0 6e is personally liable for all the companyDs debts if the company is wound up. /c0 6is personally liability is limited to the amount set out in the memorandum on a winding up. /d0 6is personally liability is limited to the amount set out in the memorandum at any time. /e0 2one of these /20 Iamshed, a house painter, misreads his wor' under order and paints 3almanDs house by accident while 3alman sits inside watching. .hich of the following is correct# /a0 a unilateral contract has been formed /b0 an implied contract has been formed /c0 a bilateral contract has been formed /d0 a >uasiAcontract has been formed /e0 no contract has been formed /f0 2one of these /!0 ,n !0A11A200! 1 offered to buy one of the 10 tables of the same specification present in 7Ds shop for $00 rupees. 7 accepted the offer. =t was agreed that the table would be delivered on 1A 12A200! while the price would be paid on )A12A200!. =t was not clear which of those tables was attributed to the contract. .hich of the following is correct# /a0 9he table will become the property of 1 when his offer to buy was accepted by 7. /b0 9he table will become the property of 1 on 1A12A200! when it will be delivered to 7. /c0 9he table will become the property of 1 on )A12A200! when he will pay the price. /d0 2one of these /"0 1'ram sent a proposal to 7anaras by post for the sale of his stall in the 3unday 8ar'et. 7anaras accepted the offer by post. 7anaras may revo'e his acceptance at any time before/a0 1'ram receives the letter of acceptance /b0 9he parties sign the contract /c0 7anaras posts the letter of acceptance /d0 2one of these /$0 1 appoints 7 as his agent for buying him a house. 7 appoints & as his agent to arrange a house to be bought. & is liable to/a0 7 only /b0 1 only /c0 7oth of them /d0 2one of these

/%0 4elivery of an insurance policy to the insured is/a0 2ot essential /b0 @ssential to form a binding contract between the prties /c0 @>ual to the acceptance by the insurer of the terms of the policy /d0 2one of these /(0 1 partner may be expelled from a firm /a0 7y the majority of the partners /b0 7y all the partners unanimously /c0 Hnder the contract of partnership if it expressly provides for the expulsion. /d0 2one of these /)0 1n order instrument may be negotiated by/a0 8ere delivery /b0 @ndorsement and delivery /c0 4elivery with a separate written contract /d0 2one of these /*0 1 che>ue is always payable. /a0 1t a fixed date. /b0 ,n demand /c0 1fter the expiry of certain number of days after maturity. /d0 2one of these /100 1 sold some food stuff to 7, a minor, on credit. =f 7 refuses to pay/a0 1 can be paid out of the property of 7 /b0 1 cannot be paid at all /c0 7 will be personally liable to pay him /d0 2one of these /110 =f a contract has been fully performed by both parties, that contract would be described as/a0 @xecuted contract /b0 @xecutory contract /c0 =mplied contract /d0 2one of these /120 1n unregistered contract of sale of a computer is/a0 5alid /b0 5oid /c0 Hnenforceable /d0 2one of these /1!0 1 decision made by an arbitrator is/a0 Ginal /b0 1ppealable /c0 1ppealable with the agreement can appoint /d0 2one of these /1"0 @ach party to an arbitration agreement can appoint/a0 ,nly one arbitrators /b0 ,nly two arbitrators /c0 ,nly three arbitrators /d0 2one of these

/1$0 3hahid and 6amid wished to form a company. ,n 1 4ecember 2002 they filed all the re>uired documents with the ?egister. ,n 10 Gebruary 200! they received the &ertificate of =ncorporation dated 1 Gebruary 200!. 9he company was incorporated on/a0 1 4ecember 200! /b0 1 Gebruary 200! /c0 10 Gebruary 200! /d0 2one of these /1%0 1 public limited company must have/a0 9en directors /b0 3even directors /c0 9wo directors /d0 2one of these /1(0 1 listed public limited company must have/a0 9en directors /b0 3even directors /c0 9wo directors /d0 2one of these /1)0 1, aged 1) for whom a court has appointed a guardian, wants to ma'e a contract. 6e can ma'e a contract. /a0 1fter attaining the age of 9wenty years /b0 1fter attaining the age of 9wentyAone years /c0 2ow /d0 2one of these /1*0 1 agrees to pay 7 10,000 rupees if his /7Ds0 horse wins the race. 9he horse died one day before the race. 9he contract is/a0 @nforceable /b0 5oid /c0 5oidable /d0 2one of these /200 1bidDs son has forged 8ajidDs name to a pronote. 8ajid under threat of prosecuting 1bidDs son demanded that he should sell him his bungalow that is worth one billion rupees for one million only. 1bid had no way except to agree with the proposal. 9he contract is/a0 5alid /b0 5oid /c0 5oidable /d0 2one of these

G@4@?1; +H7;=& 3@?5=&@ &,88=33=,2 &,8+@9=9=5@ @J18=219=,2 G,? ?@&?H=98@29 9, +,393 =2 7+3 M 1( H24@? 96@ G@4@?1; C,5@?28@29, 2002. 8@?&129=;@ ;1. 9=8@ 1;;,.@4- 96?@@ 6,H?3 81J=8H8 81?L3-100 2,9@- 1. 1ttempt G=5@ >uestions in all, including >uestion 2o. ) which is &,8+H;3,?F. 1ll >uestions carry @QH1; mar's. 2. =n each of the following cases give your decision and state the legal principal that applies. Four

answer must correctly identify the relevant areas of law, accurately discover and apply the appropriate principles, caseAlaw and statute law, and should be well structured and argued. +lease refrain from /10 ?eproducing the facts of the casesK /20 Hnnecessary and irrelevant detailsK /!0 Hnreadable handwriting.

1. Iamal Lhan and Lamal Lhan have planned to start a business of groceries in partnership. 9hey have agreed that in case of any future dispute between them they will never go to a court of law for decision instead they will do their utmost to get their disputes settled by some means outside the court. .hat do you thin' how can they see' their purpose# 6ow would you advise them# 2. Cama, 8aja and 7illoo were in partnership as hairdressers. ,n )th 1pril, 2002, 7illoo retired from the partnership. 1 few days later, Cama and 8aja bought in the firmDs name an expansive laser hairdressing machine to replace their traditional machines. ,n 1(th 1pril, a van arrived with a delivery of seven hairdressing chairs. 9he van driver showed them a purchase order in the firmDs name, dated !rd 1pril and signed 7illoo. Cama and 8aja are refusing to pay for the chairs. 9hey have also failed to pay for the laser hairdressing machines and the firm is in severe financial difficulties. 7oth suppliers are threatening. 1re they bound to pay for both of the transactions# 4iscuss. !. Iamal steals a bill of exchange and forges the signature of the payee on the reverse of the bill. 6e then transfers it for value to 7ilal who ta'es it in good faith without being aware of the forgery. 7ilal transfers the bill to Lamal. 9he payee discovers that Lamal is in possession of the bill and he demands that Lamal return it to him. .ho is legally entitled to the bill and why# .ould it ma'e any difference to your answer if the payee had been aware that Iamal had ta'en the bill but had done nothing about it until he heard that Lamal was in possession of it# ". 4ilawar Lhan and 7adam Cul are in partner 3hip running an extremely successful computer software business. 3anobar Lhan has decided to join the business and is able to invest a substantial amount of capital. 9hey have decided that the business should be incorporated as a private limited company. 4ilawar Lhan, 7adam Cul and 3anobar Lhan will each hold one third of the shares and they will be the directors of the company. +lease advise them on the advantages of a limited company as compared with a partnership1. .ith regard to obtaining finance for further business expansion 7. .ith regard to the liability of shareholders in the event of the winding up of the company. $. 9he 2ational 1ssociation of +hoto @xporter /21+@0 re>uires additional storage space. =t advertises for tenders to erect new storage facilities. =t receives eight tenders and the 7oard decides to accept the tender of =mam 7a'hsh B &,. 9he &hief @xecutives, 8r. 3hehbaO &hatha is re>uired to accept and to notify the others that they were unsuccessful 8r. &hatha as'ed his secretary to type up the letters. 1 mista'e is made in the typing and the name of another tenderer, 7adam Cul B &,. is replace for =mam 7a'hsh B &,. 9he letter is signed and delivered to 7adam Cul B &,. 9he next day when the 8.4. of 7adam Cul B &,. phoned 8r. &hatha to discuss some details of the wor' to be done 8r. &hatha realiOed that there had been a mista'e. =s there a binding contract between 21+@ and 7adam Cul B &,# %. ,n 1 3eptember 7aber contracted for the purchase of $0 computers from 3ardar. 9he contract stated that the computers were to be delivered on $ 3eptember. 4espite the fact that 7aber persistently pressed 3ardar for delivery, the computers had still not been delivered by the end of the month while 3ardar had repeatedly assured 7aber that the computers would be delivered by the first of ,ctober at the latest. 7aber then told 3ardar that if the computes were not delivered by the $ ,ctober, the contract would be terminated. 3ardar did not attempt to deliver until 10

,ctober. 6aving bought other computes on the % ,ctober, 7aber refused to ta'e delivery. .as he justified in refusing the delivery# 4iscuss. (. 8r. 7rown agreed to sell his computer of a specified mar' and model to 8r. Creen for ?s. !0,000. .hen 8r. Creen went to him to pay him the price and pic' up the computer he found that 7rown had already sold such computer to someone else. 6e threaten to sue 7rown for the 7reach of &ontract but later on the same day he bought a computer of the same mar', model and specification for a ?s. 20,000. 3hould he sue 7rown for the 7reach of &ontract# =s there any benefit for him in bringing such action against 7rown# &,8+H;3,?F QH@39=,2 ). .rite only the correct answer in the 1nswer 7oo'. 4o not reproduce the >uestions. /10 +ortage ;td wishes to alter its memorandum to state that all of the companyDs shareholders must hold a minimum of 200 shares. &an 7rian, who currently owns 100 shares, be bound by this alteration# /a0 Fes, if the alteration is done by special resolution /b0 Fes, if the alteration is done by ordinary resolution /c0 Fes, but only if he gives his written consent. /d0 2one of these /20 Cama offers to sell his care to 8aja for ?s. $$0,000EA, 8aja accepts the offer but states that he would buy it for ?s. $00,000EA. 9he statement of 8aja is/a0 1 conditional acceptance /b0 1 counter offer /c0 ?ejection to the offer /d0 2one of these /!0 Lala Lhan agreed to supply onion to 3odagar Lhan six months after the date of contract and Lala Lhan agreed to pay for such supply. 9wo months after the conclusion of the contract Lala Lhan refused to supply. =n such case which of the following facts is correct# /a0 3odagar Lhan cannot sue Lala Lhan until the expiry of six months after the date of the contract. /b0 3odagar Lhan cannot sue Lala Lhan any time because he has not yet paid him for the onions. /c0 3odagar Lhan can validly sue Lala Lhan any time after he refused to supply onions. /d0 2one of these /"0 3harafat 6ussain offererd to sell his tonga to 3ada>at 6ussain for ?s. !$,000EA but 3ada>at 6ussain did not answer and nearby standing Liramat 6ussain accepted the offer. Liramat 6ussainDs answer to the offer is/a0 1 conditional acceptance /b0 1 counter offer /c0 1n offer /d0 2one of these /$0 9he appointment of a person of the minor age as an agent is/a0 5oid /b0 5alid /c0 5oidable /d0 2one of these /%0 9hird party insurance is an insurance for/a0 8otor vehiclesD accidents /b0 =njuries in war time

/c0 2one of these /(0 1 bill of exchange involves /a0 ,ne party /b0 9hree parties /c0 8ore than three parties /d0 2one of these /)0 1 bearer instrument may be negotiated by/a0 8ere delivery /b0 @ndorsement and delivery /c0 4elivery with a separate written contract. /d0 2one of these /*0 1n order instrument may be negotiated by/a0 8ere delivery /b0 @ndorsement and delivery /c0 4elivery with a separate written contract. /d0 2one of these /100 1 partnership business is unlawful if the number of partners in it is/a0 8ore than seven /b0 8ore than ten /c0 8ore than twenty /d0 2one of these /110 9he relation between the partners of a firm is of/a0 @mployer and @mployee /b0 9rustee and 7eneficiary /c0 +rincipal and 1gent /d0 2one of these /120 1n unregistered contract of partnership is/a0 5alid /b0 5oid /c0 Hnenforceable /d0 2one of these /1!0 1 decision made by arbitrators is called /a0 3entence /b0 1ward /c0 Iudgment /d0 2one of these /1"0 1n empire in an arbitration reference is appointed when the number of arbitrators is/a0 ,dd /b0 @ven /c0 2one of these /1$0 9he minimum number of members in a +rivate ;imited &ompany is/a0 3even /b0 9wo /c0 Gifty /d0 2one of these

/1%0 1 +ublic ;imited &ompany must have/a0 9en directors /b0 3even directors /c0 9wo directors /d0 2one of these /1(0 .hich of the following rights a company cannot have/a0 ?ight to own immovable property /b0 ?ight to vote in the general elections of the state. /c0 ?ight of sue in its own name. /d0 2one of these /1)0 9he maximum age for a person who concludes a contract of sale of goods is/a0 9wenty years /b0 3ixteen years /c0 @ighteen years /d0 2one of these /1*0 =t is essential for the validity of a contract of sale of goods that the price must be paid. /a0 =n advance /b0 9hree days after the delivery /c0 2one of these /200 =f the delivery of goods under a contract of sale of goods is late. /a0 9he buyer is not bound to accept the delivery. /b0 9he buyer is bound to accept the delivery. /c0 2one of these

G@4@?1; +H7;=& 3@?5=&@ &,88=33=,2 &,8+@9=9=5@ @J18=219=,2 G,? ?@&?H=98@29 9, +,393 =2 7+3 M 1( H24@? 96@ G@4@?1; C,5@?28@29, 2001. 8@?&129=;@ ;1. 9=8@ 1;;,.@4- 96?@@ 6,H?3 81J=8H8 81?L3-100

2,9@- 1ttempt G=5@ >uestions in all, including >uestion 2o. ) which is &,8+H;3,?F. 1ll >uestions carry @QH1; mar's. 1. 4iscuss the importance of free consent in contrasts. .hen do you thin', consent is said to be Vnot freeD, and what effect will such a consent have on contracts# 2. 4efine in detail remedies for breach of a contract given to a seller against the buyer in the 3ale of Coods 1ct. !. 4efine partnership, and discuss the essential elements of partnership in detail. ". .hat do you understand by the words VnegotiationD and VnegotiableD# 9here are special rules of evidence retailing to negotiable instruments. .hat are they#

$. .hat is arbitration# 6ow an arbitrator is appointed, and what are his powers under the 1rbitration 1ct# %. @xplain the nature of a contract of insurance. 4istinguish between life insurance and other 'inds of insurances. (. .rite short notes on the following/a0 3urety /b0 .arranties /c0 7ailment /d0 1ward

&,8+H;3,?F QH@39=,2 ). .rite only the correct answer in the 1nswer 7oo'. 4o not reproduce the >uestions. /10 1 proposes, by a letter sent by post, to sell his house to 7. 9he acceptance of the proposal is complete/a0 the moment the letter is posted by 1 /b0 the moment the letter is received by 7. /c0 2one of these /20 =n order to convert a proposal into a promise, the acceptance must be/a0 &onditional /b0 Hnconditional /c0 2one of these /!0 1 voidable contract may be turned by the option of the party at a loss into/a0 1 void contract /b0 1 valid contract /c0 2one of these /"0 9he maximum number of members in a private company is/a0 %0 /b0 $0 /c0 Hnlimited /$0 9he maximum number of partners in a firm is/a0 1) /b0 2$ /c0 2one of these /%0 9he &ompanies ,rdinance, 1*)"/a0 1pplies to a &ooperative 3ociety. /b0 =nsurance &ompanies /c0 2one of these /(0 1 &ompany is subsidiary of another &ompany/a0 =f the other company holds more than $0R of its voting shares /b0 ;ess than $0R of its voting shares /c0 2one of these

/)0 + appoints 1 as his agent. 1 is not a person of full age/a0 9he appointment of 1 is not valid /b0 9he appointment of 1 is valid /c0 2one of these /*0 3tatutory meeting of a &ompany is held/a0 ,nce in a life time of the &ompany /b0 @very year /c0 2one of these /100 +ublication of +rospectus is compulsory by/a0 1 +rivate &ompany /b0 1 Girm /c0 2one of these /110 1ward is a decision given by/a0 1 &ourt /b0 1n arbitrator /c0 2one of these /120 1 lends some ornaments to 7 to be used in a marriage. 9he transaction is/a0 1 bailment /b0 1 pledge /c0 2one of these /1!0 1 partner may be expelled from a partnership by/a0 1 majority of partners /b0 ,rders of the &ourt /c0 2one of these /1"0 9hird +arty =nsurance is an =nsurance ?elating to/a0 8otor vehiclesD accidents /b0 =njuries due to war /c0 2one of these /1$0 1 7ill of @xchange has/a0 9wo parties /b0 9hree parties /c0 2one of these /1%0 1 minor/a0 &an ma'e, draw, accept, or indorse a negotiable instrument /b0 &annot ma'e, draw, accept, or indorse a negotiable instrument /c0 2one of these /1(0 1 void as well as an illegal contract is/a0 3imilar in effect /b0 2ot familiar in effect /c0 2one of these /1)0 =n the &ompanies ,rdinance, 1*)", there are/a0 Linds of shares /b0 2o 'inds of shares /c0 2one of these

/1*0 ;i'e a che>ue, a bill of exchange may be/a0 &rossed /b0 &annot be crossed /c0 2one of these /200 1n executor consideration ta'es the form of/a0 1 promise to be performed in future /b0 ?elates to the present act made for a promise /c0 2one of these