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Second Semester of Three Year LL.B. Examination, June 2011

CONTRACT – II (Course – I)
Duration : 3 Hours Max. Marks : 100

Instructions : 1. Answer all 5 questions.

2. One essay type and one short note question or problem
from each unit have to be attempted, which is referred as
part (a) and (b) in all the units.
3. Figures to the right indicate marks.
4. Answer should be written either in English or Kannada
completely.

UNIT – I

Q. No. 1. (a) Define contract of guarantee. State the distinctions between

contract of guarantee and contract of indemnity. Marks : 15
hÝËáà®Üá¨ÝÄPæ PÜÃÝÃÜ®Üá° ÊÝÂTݯÔ. hÝËáà®Üá¨ÝÄPæ PÜÃÝÃÜá ÊÜáñÜᤠ®ÜÐÜr »Ü£ì
PÜÃÝÃÜáWÜÙÜ ®ÜvÜáÊæ CÃÜáÊÜ ÊÜÂñÝÂÓÜWÜÙÜ®Üá° ÖæàÚÄ.
OR/A¥ÜÊÝ
Define Pledge and explain the rights of Pawnee.
XÃÜË¿á®Üá° ÊÝÂTÝÂ¯Ô ÊÜáñÜᤠXÃÜË CoárPæãívÜÊÜ®Ü ÖÜPÜáRWÜÙÜ®Üá° ËÊÜÄÔÄ.
(b) ‘A’ lends his horse for riding to “B”. “A” knows that the
horse is vicious and unsafe for riding but does not disclose
the same to ‘B’. ‘B’ rides the horse. “B” is thrown and
injured “B” files a suit against ‘A’ to recover damages. Decide. Marks : 5
"A' ®Üá ñܮܰ PÜá¨ÜáÃæ¿á®Üá° "Ÿ' ¯Wæ ÖÜñܤÆá PæãvÜáñݤ®æ. "A' ¯Wæ ñܮܰ PÜá¨ÜáÃæ ¨ÜáÐÜr
ÖÝWÜã ÖÜñܤÆá AÁãàWÜÂÊÝX¨æ GíŸá¨Üá Wæ㣤¨æ. B¨ÜÃæ A¨Ü®Üá° "Ÿ' ®Ü ÊÜááí¨æ
Ÿ×ÃÜ í WÜ ± Ü w ÓÜ á ÊÜ â ©ÆÉ . "Ÿ' ®Ü á PÜ á ¨Ü á Ãæ ¿ á®Ü á ° ÖÜ ñ Ü á ¤ ñ ݤ ® æ . "Ÿ' ®Ü á ¹¨Ü á ª
WÝ¿áWæãÙÜáÛñݤ®æ. "Ÿ' ®Üá "A' ®Ü ËÃÜá¨Üœ ±ÜÄÖÝÃÜ PæãàÄ ¨ÝÊæ ÖÜãvÜáñݤ®æ.
¯«ÜìÄÔÄ.
OR/A¥ÜÊÝ
P.T.O.
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‘A’ entrusted some books to ‘B’ for binding. ‘B’ promised to

complete the work and return the same within ten days. ‘B’
failed to return the books within agreed time. Subsequently
the books were burnt in an accidental fire on his premises
Can A recover damages from ‘B’ for the loss of his books ?
"A' ®Üá " Ÿ' ¯Wæ PæÆÊÜâ ±ÜâÓܤPÜWÜÙÜ®Üá° ¸æçívÜá ÊÜÞvÜÆá J²³Ô¨Ü®Üá. "Ÿ' ®Üá B
PæÆÓÜ樆 áÜ ° ÖÜñáÜ ¤ ©®ÜWÙÜ È
Ü É ÊÜÞw AÊÜâWÜÙ®Ü áÜ ° ÊÜáÃÜÚÓÜáÊÜâ¨ÝX ÊÝWݪ®Ü ÊÜÞw¨Ü®áÜ .
"Ÿ' ®Üá B J±Ü³í¨Ü¨Ü ÊæàÙæÁãÙÜWæ AÊÜâWÜÙÜ®Üá° ÊÜáÃÜÚÓÜáÊÜÈÉ Ë´ÜƮݨܮÜá. A¨Ý¨Ü
ÊæáàÇæ B ±ÜâÓܤPÜWÜÙÜá BPÜÔ¾PÜ ¸æíQÀáí¨Ü AÊÜ®Ü PÜorvܨÜÈÉÁáà ®ÝÍÜÊݨÜÊÜâ. "A' ®Üá
"Ÿ' ¯í¨Ü B ±ÜâÓܤPÜWÜÙÜ ®ÝÍÜPæR ±ÜÄÖÝÃÜ PæàÙܟÖÜá¨æà ?
UNIT – II

Q. No. 2. (a) Explain the duties of an agent. Marks : 15

PÝ¿áì»ÝÄ¿á PÜñÜìÊÜÂWÜÙÜ®Üá° ËÊÜÄÔÄ.
OR/A¥ÜÊÝ
Who is an agent ? Explain the different modes of termination
of agency.
PÝ¿áì»ÝÄ Gí¨ÜÃæ ¿ÞÃÜá ? PÝ¿áì»ÝÃÜ¨Ü PÜÃÝÃÜ®áÜ ° ËÓÜiìÓÜáÊÜ Ë«Ý®ÜWÙÜ ®Ü áÜ °
ËÊÜÄÔÄ.
(b) Write short note on “agency by ratification”. Marks : 5
""¨Üê{àPÜÃÜ|¨Ü ÊÜáãÆPÜ BWÜáÊÜ PÝ¿áì»ÝÃÜÜ¨Ü '' ÊæáàÇæ ÆZá q±Ü³~ ŸÃæÀáÄ.
OR/A¥ÜÊÝ
Write short note on ‘Sub-agent’.
"E±ÜPÝ¿áì»ÝÄ' ŸWæY ÆZá q±Ü³~ ŸÃæÀáÄ.
UNIT – III

Q. No. 3. (a) Explain the rights and duties of a partner in a partnership

firm. Marks : 15
±ÝÆáWÝÄPæ ÓÜíÓæ¿
§ áÈÉ ±ÝÆáWÝÃÜÃáÜ Öæãí©ÃÜáÊÜ ÖÜPáÜ RWÙÜ ®Ü áÜ ° ÊÜáñÜᤠPÜñì
Ü ÊÜÂWÜÙ®Ü áÜ °
ËÊÜÄÔÄ.
OR/A¥ÜÊÝ
Discuss the different methods of dissolution of partnership
firm.
±ÝÆáWÝÄPæ ÓÜíÓ槿á®Üá° ÊÜááPݤ¿áWæãÚÓÜáÊÜ ËË«Ü Ë«Ý®ÜWÜÙÜ®Üá° aÜbìÔÄ.
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(b) A, B and C are partners in a partnership business. ‘C’ retires
without giving a public notice. ‘D’ an old costumer deals
with the firm without notice of change. ‘D’ wants to hold
‘C’ also liable. Decide. Marks : 5
A , Ÿ ÊÜáñÜᤠPÜ ÃÜá Jí¨Üá ±ÝÆá¨ÝÄPæ ÊÜÂÊÜÖÝÃܨÜÈÉ ±ÝÆáWÝÃÜÃÝXÃÜáñݤÃæ.
"PÜ' ®Üá ÓÝÊÜìg¯PÜ ÓÜãaÜ®æ¿á®Üá° PæãvÜ¨æ ¯ÊÜ꣤¿ÞWÜáñݤ®æ. "vÜ' GíŸ ÖÜÙæ¿á
WÝÅÖÜPÜ®Üá Ÿ¨ÜÇÝÊÜOæ¿á AÄËÆÉ¨æ ±ÝÆáWÝÄPæ ÓÜíÓæ§Áãí©Wæ ÊÜÂÊÜÖÜÄÓÜáñݤ®æ.
"vÜ' ®Üá "PÜ' ®Ü®Üá° ÓÜÖÜ ÖæãOæWÝÃܮܮݰX ÊÜÞvÜÆá CbfÓÜáñݤ®æ. ¯«ÜìÄÔÄ.
OR/A¥ÜÊÝ
‘A’ and ‘B’ agree to work together as carpenters. According
to the agreement,‘A’ shall receive all profits and shall pay
Rs. 5,000 per month to ‘B’ as wages. Discuss whether A and
B are partners.
"A' ÊÜáñÜᤠ"Ÿ' CÊÜÃÜá JqrWæ ŸwWÜñÜ®Ü¨Ü PæÆÓÜÊÜ®Üá° ÊÜÞvÜÆá J²³PæãÙÜáÛñݤÃæ.
J±Ü³í¨Ü¨Ü ±ÜÅPÝÃÜ "A' ®Üá GÇÝÉ ÇÝ»ÜÊÜ®Üá° ±Üvæ¨Üá ""Ÿ'' ¯Wæ ±ÜÅ£ £íWÜÙÜá 5,000
ÃÜã±ÝÀá ÓÜíŸÙÜ PæãvÜñPÜ RܨáÜ .ª ""A'' ÊÜáñÜá ¤ ""Ÿ'' CÊÜÃáÜ ±ÝÆá¨ÝÃÜÃÝWÜáñݤÃÁ
æ áà ?
aÜbìÔÄ.
UNIT – IV
Q. No. 4. (a) Define Contact of Sale. State the distinctions between sale and
agreement to sell. Marks : 15
ÊÜÞÃÝo PÜÃÝÃÜ®Üá° ÊÝÂTݯÔ. ÊÜÞÃÝo ÊÜáñÜᤠÊÜÞÃÝo J±Ü³í¨Ü CÊÜâWÜÙæãÙÜX®Ü
ÊæÂñÝÂÓÜWÜÙÜ®Üá° ÖæàÚÄ.
OR/A¥ÜÊÝ
Explain the concept of “caveat emptor”. State the exceptions
to this rule.
""PæãÙÜáÛÊÜÊÜ®æ GaÜcÄPæ'' ¿á ±ÜÄPÜƳ®æ¿á®Üá° ËÊÜÄÔÄ. D ¯¿áÊÜáQRÃÜáÊÜ
A±ÜÊݨÜWÜÙÜ®Üá° ÖæàÚÄ.
(b) A, B and C are joint owners of a horse. The horse is in
possession of ‘C’with the permission of A and B. They have
not authorised ‘C’ to sell the horse. ‘C’ sells the horse to ‘D’ a
bonafide purchaser. A and B contend that the sale is void.
Decide. Marks : 5
"A', "Ÿ' ÊÜáñÜᤠ"PÜ' CÊÜÃÜá Jí¨Üá PÜá¨ÜáÃæ¿á gíq ¿ágÊÜÞ®ÜÃÜá BX¨ÝªÃæ. "A'
ÊÜáñÜᤠ"Ÿ' CÊÜÃÜ ÓÜÊÜá¾£¿á ÊæáàÃæWæ PÜá¨ÜáÃæ¿áá "PÜ' ®Ü ÓÝ̗à®Ü¨ÜÈÉ C¨æ. "A' ÊÜáñÜá¤
"Ÿ' CÊÜÃÜá "PÜ' ¯Wæ PÜá¨ÜáÃæ¿á®Üá° ÊÜÞÃÝo ÊÜÞvÜÆá A®ÜáÊÜᣠPæãqrÆÉ. "PÜ' ®Üá
PÜá¨ÜáÃæ¿á®Üá° "vÜ' GíŸÊܯWæ ÊÜÞÃÜáñݤ®æ. "vÜ' ®Üá B PÜá¨ÜáÃæ¿á®Üá° ÓܨݽÊÜ®æÀáí¨Ü
PæãíwÃÜáñݤ®æ. "A' ÊÜáñÜᤠ"Ÿ' CÊÜÃÜá ÊÜÞÃÝo ÍÜã®Ü Gí¨Üá ÊÝ©ÓÜáñݤÃæ
¯|ìÀáÔÄ.
OR/A¥ÜÊÝ
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‘A’ gave a golden ring to ‘B’ on “Sale or return” basis and
asked ‘B’ to return the ring within ten days in the case of non
approval . ‘B’ pledged the ring with ‘C’ without informing
‘A’ of his approval to purchase the ring. When price was not
paid by ‘B’. “A” filed a suit against ‘C’ to recover the ring.
Decide.
"A' ®Üá "Ÿ' ¯Wæ Jí¨Üá ŸíWÝÃÜ¨Ü EíWÜáÃÜ樆 áÜ ° ""ÊÜÞÃÝo A¥ÜÊÝ ÊÜáÃÜÚÓÜáËPæ''
B«ÝÃÜ¨Ü ÊæáàÇæ Pæãor®áÜ ÊÜáñÜᤠJ±Ü©
³ ¨Üê æ ÖÜñáÜ ¤ ©ÊÜÓ¨
Ü ã
æ ÙÜWÝX ÊÜáÃÜÚÓÜÆá £ÚԨܮáÜ .
"Ÿ' ®Üá EíWÜáÃÜ樆 áÜ ° SÄà©ÓÜáÊÜ ÓÜÊáÜ £¾ ¿á®Üá° "A' ¯Wæ £ÚÓܨæ "PÜ' ®ÜÈÉ XÃÜË Cor®áÜ .
"Ÿ' ®Üá "A' ¯Wæ ÖÜ| ÓÜí¨Ý¿á ÊÜÞvÜ©¨ÝªWÜ, "A' ®Üá "PÜ' ®Ü ËÃÜá¨Üœ EíWÜáÃÜ
ÊÜáÃÜÚ ±Üvæ¿áÆá ¨ÝÊæ ÖÜãw¨Ü®Üá. ¯|ìÀáÔÄ.
UNIT – V

Q. No. 5. (a) Discuss the rights and obligations of hirer under the Hire
purchase agreement. Marks : 15
¸ÝwWæ SÄà© J±Ü³í¨Ü¨ÜÈÉ ¸ÝwWæWæ ñæWæ¨ÜáPæãÙÜáÛÊÜÊÜ®Ü ÖÜPÜáRWÜÙÜ ÊÜáñÜá¤
ÖæãOæWÝÄPæWÜÙÜ ŸWæY aÜbìÔÄ.
OR/A¥ÜÊÝ
Define Hire purchase agreement. State the distinctions between
sale and hire purchase agreement.
¸ÝwWæ SÄà© J±Ü³í¨ÜÊÜ®Üá° ÊÝÂTݯÔ. ÊÜÞÃÝo ÊÜáñÜᤠ¸ÝwWæ SÄà© J±Ü³í¨Ü
CÊÜâWÜÙÜ ®ÜvÜáÊæ CÃÜáÊÜ ÊæÂñÝÂÓÜWÜÙÜ®Üá° ÖæàÚÄ.
(b) Write a short note on contents of hire-purchase agreement. Marks : 5
¸ÝwWæ SÄà© J±Ü³í¨Ü JÙÜWæãíwÃܸæàPÝ¨Ü ËÐÜ¿áWÜÙÜ PÜáÄñÜá ÆZá q±Ü³~
ŸÃæÀáÄ.
OR/A¥ÜÊÝ
Write a short note on ‘implied-warranties’.
"AÊÜÂPܤ »ÜÃÜÊÜÓæWÜÙÜ' PÜáÄñÜá ÆZá q±Ü³~ ŸÃæÀáÄ.

________________