Previous year Orissa Judiciary Service 2010, Law of Contract main written examination question paper

Orissa Judicial Service (O.J.S. – 2010)

LAW OF CONTRACT

Time – Three Hours

Full Marks – 150

Answer SIX questions, TWO each from any TWO Sections and ONE each from the other TWO Section. All question carry equal marks.

SECTION – A

1. (a) Flaw in consent may vitiate a contract. Explain the essential element that agreement must not be induced by coercion. By whom a contract can be avoided on the contract of coercion ? 15

(b) “The word force must therefore, be construed to include not only physical or legal force but also force arising from the compulsion of economic circumstances, which leaves no choice or alternatives to a person in want and compels him to provide labour or service even though the remuneration received for it is much less than the minimum wage”. Explain with decided cases. 10

2. What is meant by anticipatory breach ? What are the consequences of breach of contract ? What are the rules to be followed in claiming of damages for breach of contract ? 25

3. Define quasi contract. Do you agree, the general theory of quasi contractual liability i.e. ‘no one can enrich at the expense of other’ ? What are the legal provisions in the Indian Contract Act correspond to English Law in this regard ? 15

Defendant agreed to sell a land to ‘X’ who agreed to sell the land to plaintiff. The defendant as owner of the property was bound to pay municipal taxes due on the land and the .11 rears amounted to Rs. 25,000. The defendant defaulted. So (li.it plaintiff paid the amount to avoid the litigation with the municipal authorities. Decide. 10

SECTION – B

4. What are the implied conditions and warrantees in a contract for sale of goods ? When a condition is to be treated as warranty ? What are the remedies open to a buyer when there is a breach of warranty by the seller ? 25

5. When does the unpaid seller’s lien arise ? What are its limitations ? Under what circumstances an unpaid seller of goods can exercise his right of stoppage of goods in transit ? Distinguish between the right of stoppage of goods and vendor’s lien. 25

6. Explain the rule ‘nema dat quad non habet‘. How far this maxim applied in the Indian Law with regard to sales of movable property. 25

SECTION – C

7. Define the term partnership. Elucidate essential features of partnership with decided cases.

“Although sharing of profits is an essential feature of partnership, yet it is not conclusive test”. Comment. What is meant by limited liability of a partner? 25

8. Explain the implied authority of a partner in partnership firm. Also explain the relations of the partner to third party. Can a minor be admitted to a partnership firm? If so, what are the rights and liabilities of a minor, during his minority and after attaining his majority? 25

9. State the circumstances in which a partner may be expelled from the firm and distinguish it from retirement of a partner and what are the rights and liabilities of an outgoing and incoming partner. 25

SECTION – D

10. Define “bill of exchange’. Why promissory note, bill of exchange and cheque are called as negotiable instruments? Every cheque is a bill of exchange but every bill of exchange is not a cheque. Explain. 25

11. Who is a holder in due course? Explain when a holder becomes a holder in due course? what is meant by payment in due course? 25

12. What do you mean by statutory protection available to the paying banker and collecting hanker under the Negotiable Instruments Act? What precautions a banker should take when a cheque is marked as ‘good for payment’ and also when it consists ‘double crossing’? 25