DAMO DAMODARAM SANJIVAYYA NATIONAL LAW UNIVERSITY

VISAKHAPATNAM

SEMESTER-III End – Semester Examinations, November -2023

Specific Contracts (Contracts-II) (3-6)

Instructions:
1. Answer all questions.
2. Any overwriting in answering question No. I will invalidate the relevant answer.
3. Do not write anything on the question paper. It will be treated as malpractice.
Total Marks - 50
Time: 2½ Hours

I. Choose the correct answer from the following MCQ’s (20 x 0.5 marks = 10 marks)
1. The maxim “Sociimei Socius meu Socius non est” means _______________
A. My partners’ partner is my partner.
B. My partners’ partner is necessarily my partner.
C. My partners’ partner is not necessarily my partner.
D. My partners’ partner is automatically my partner.

2. _____________connotes organized course of activity or conduct with a set of purpose of

earning profit or exploit property purchased in order that one should get the highest amount”.
A. Occupation
B. Profession
C. Company
D. Business

3. The definition of the partnership given by one of the jurists___________, which states that
“partnership is a contract of two or more competent persons to place their money, effects,
labor and skill, some or all of them, in lawful commerce or business, and to share the profit
and bear the loss in certain proportions”.
A. Roscoe Pound
B. Jeremy Bentham
C. Kent
D. Immanuel Kant

4. The Partnership Act came into existence in place of the ___________provisions of the Indian
Contract Act, 1872.
A. Sections 236 to 266
B. Sections 237 to 264
C. Sections 238 to 265
D. Sections 239 to 266

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5. _______________provision states that, “every agreement of which the object or
consideration is unlawful is void and lays down that the consideration of an agreement is
lawful unless, inter alia, it is opposed to public policy”.
A. Section 21 of the Indian Contract Act, 1872
B. Section 22 of the Indian Contract Act, 1872
C. Section 23 of the Indian Contract Act, 1872
D. Section 24 of the Indian Contract Act, 1872

6. The Limited Liability Partnership can be registered with ____________.

A. Ministry of Corporate Affairs
B. Ministry of Finance
C. Ministry of Trade and Commerce
D. Ministry of External Affairs

7. The difference between partnership and co-ownership is compared in _________case.

A. Champaran Cane Concern v. State of Bihar
B. Champaran Cane Concern v. Union of India
C. Champaran Cane Concern v. State of Maharashtra
D. Champaran Cane Concern v. State of Uttar Pradesh

8. In which case it was held that “where there is a sale of a definite existing chattel specifically
described, the actual condition of which is capable of being ascertained by either party, there
is no implied warranty”
A. Barr v. Gibson
B. Gibson v. Newton
C. Newton v. Barr
D. Barr v. Emerton

9. “Sale or exchange is a transmutation of property from one man to another, in consideration of

same price or recompense in value”. Which jurist made this statement?
A. Black Stone
B. Kelson
C. Holland
D. Atkin

10. What is the liability of the partners in a partnership firm?

A. Limited
B. Unlimited
C. Limited to the capital contributed by the partners.
D. The share of the profits only

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11. Which among the following is not a characteristic of a partnership firm?
A. Easy formation
B. Equal profits
C. Limited liability
D. Mutual consent

12. What is partnership at Will?

A. Form of business partnership where there is no fixed term agreed for the duration of the
partnership.
B. Partnership in which some or all partners can exhibit elements of partnerships and
corporations.
C. Form of partnership under common law.
D. A partnership formed for a single transaction.

13. What is partner by estoppel?

A. An invested person who is involved in the daily operations of the partnership.
B. A person who provides some of the capital for a business but who does not take an active
part in managing the business.
C. A person who holds himself out as a partner or permits a partner to hold him out.
D. A person who gives an impression to others that he/she is a partner of the firm.

14. To continue a transaction of sale there should be an agreement, express or implied, relating to
goods to be completed by passing of title in those goods. Identify the validity of the
statement with respect to India and England.
A. It is true only in India.
B. It is true only in England.
C. It is true in both England and India.
D. It is neither true in India nor in England.

15. When there is no implied warranty or condition as to the quality or fitness for any particular
purpose of goods supplied under a contract of sale __________
A. The buyer shall not get any remedy for the same under the Sale of Goods Act, 1930
B. The seller shall be made liable with certain exceptions under the Sale of Goods Act, 1930
C. The buyer may claim compensation under the Civil Procedure Code, 1908.
D. The buyer may claim compensation under the Consumer Protection Act, 2019.

16. In the case of a contract for sale by sample there may not be an implied condition pertaining
to_____________
A. That the bulk shall correspond with the sample in quality.
B. That the buyer shall have a reasonable opportunity of comparing the bulk with the
sample.
C. That the goods shall be free from any defect rendering them unmerchantable.
D. That the bulk shall not correspond with the sample in quality.
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17. In a partnership firm forming a partnership deed is _____________
A. Verbal
B. Not necessary
C. Necessary
D. Necessary in writing

18. When does the Partnership Act, 1932 come into action in a firm?
A. When there is a conflict of interest and opinions in a firm
B. When the capital invested is unequal
C. In the absence of partnership deed
D. When the interest is charged on the drawings

19. What is the meaning of delivery under the Sale of Goods Act, 1930?
A. Agreement to transfer of possession from one person to another.
B. In-Voluntary transfer of possession from one person to another.
C. Compulsory transfer of possession from one person to another.
D. Transfer of possession from one person to another in writting.

20. Sale by description stated under ____________.

A. Section 17 of the Sale of Goods Act, 1930.
B. Section 16 of the Sale of Goods Act, 1930.
C. Section 15 of the Sale of Goods Act, 1930.
D. Section 14 of the Sale of Goods Act, 1930.

II. Kamath is an experienced businessman in the construction engineering business in the style
of Kamath and engineering works. He has five of the workmen working for this business for
many years. Kamath thought that it would be better if he would make these five workmen to
be as partners. Acting upon the same he made a proposal and prepared a document and
submitted it to the Tax department. Upon perusing the document, the tax department through
its income tax officer has rejected the proposal by stating that the covenants of the document
do not suggest that it was a genuine partnership. Aggrieved by this Kamath preferred to
challenge the decision of the income tax department. Examine the issues with the help of
relevant legal provisions and decided cases.
(1 x 10 marks = 10 marks)

III. Critically analyze the case of “Mollwo, March & Co. v. The Court of Wards (1872) L.R. 4
P.C. 419”.
(1 x 10 marks = 10 marks)

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IV. Subba Rao wanted to buy a car worth of ten lakh rupees for commercial purposes, but he had
only two lakh rupees with him, and he had no other collateral properties with him to take the
loan from the banks. He has approached one of the financing companies to pay the rest of the
amount to purchase the same. The finance company had given about eight lakh rupees upon
executing the Hire-Purchase agreement. Examine the concept of hypothecation in the
agreement made between the parties with the help of relevant decided cases.
(1 x 10 marks = 10 marks)

V. Answer any two of the following (Out of the three) (2 x 5 marks = 10 marks)

i. Whether an advocate can keep the original documents of the client in lieu of the payment
to be received, explain the statement with the help of decided cases and the legal provisions
cited therein.
ii. Explain the concept of doctrine “Caveat Emptor” with the help of decided cases.
iii. Critically analyze the case of “Miles v. Clarke [1953] 1 All ER 779”

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