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2 SEM LLB SC 2.3
2021
LAW
Paper: 2.3
(Specific Contract)
Full Marks: 40 Pass Marks: 16 Time: 11/2 Hours
(The figures in the margin indicate full marks for the questions)

1. Answer any two questions from the following 13×2=26

A. (i) “A contract of guarantee is a contact of uberrimae fidei”. Do you agree? Justify your
answer with case laws on the subject. 5

(ii)“The liability of surety is co-extensive with that of the principal debtor”. Examine in
this regard the nature of liability citing case laws and illustrations.
8

B. (i) ‘A person who finds goods belonging to another and takes them into his custody is
subject to the same responsibility as a bailee’. Discuss. 6

(ii) On what principle and to what extent can a wife pledge her husband’s credit 4+3=7
[a] when she lives with him, and
[b] while she lives apart from him? Discuss.

C. Comment on the following: 4+5+4=13

(i) All cheques are bills of exchange, but all bills of exchange are not cheques.
(ii) Every holder in due course is a holder, but every holder may not be a holder in due
course.
(iii) A cheque is crossed while it is sent from one place to another.

D. (i) “The law of partnership is nothing, but an extension of the law of principal and agent”.
Examine the statement. 6
(ii) ‘Sharing of profits is the conclusive test of partnership’. Do you agree? Justify your
answer. 7

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E (i) ‘The subject matter of a contract of sale must be a movable property’. Examine the
statement and justify your answer. 4
(ii) When is a stipulation in a contract of sale regarded as a ‘condition’ and when as
‘warranty’? Support your answer with suitable illustrations. 4
(iii) Is an unpaid seller of goods who is in possession thereof entitled to retain possession?
If so, under what circumstances? 5

2. Answer any one question from the following 14×1=14

A. (i) When is a contract of guarantee held to be invalid? 4

(ii) Is the surety discharged if without his knowledge the creditor accepts interest in
advance from the principal debtor? Examine in this context the position of English Law
and Indian Law. 5

(iii) Does the creditor’s omission to sue the principal debtor within the period of
limitation discharge the surety? Emphasize your answer citing with relevant case laws.
5

B. (i) Examine the conditions subject to which bailee’s right of lien over the goods bailed can
be exercised. 7

(ii) ‘The acts of the agent within the scope of his authority bind the principal’. Examine the
extent of principal’s liability in this regard. 7

C. Examine the following with reference to Negotiable Instruments Act: 4+5+5=14

(i) Partial endorsement does not operate as negotiation of an instrument.

(ii) Once a bearer instruments always a bearer instrument.
(iii) It is better to take a negotiable instrument under an endorsement than under an
assignment.

D. (i) ‘The Indian Partnership Act has effectively ensured the registration of firms without
making it compulsory’. Comment. 7

(ii) ‘An act of a partner, which is done to carry on, in the usual way, business of the kind
carried on by the firm, binds the firm’. Examine the statement. 7

E. (i) ‘If a person sells an article, he thereby warrants that it is fit for some purpose, but he
does not warrant that it is fit for any particular purpose’. State the various qualifications
subject to which this proposition should be received. 10

(ii) A seller of goods repudiates the contract of sale before the date of delivery. What are
the options available to the buyer? 2

(iii) What course is open to the buyer if the seller makes a delivery of contract goods
mixed with other goods? 2

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