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Notes Contract Law2 Osmania University
The below notes comprehensively cover unit-wise contract Law–II syllabus, including answers to repeated previous-year questions as revision notes.
By studying from these notes, there’s no need to prepare for past papers separately—they’re already integrated for your convenience and easy preparation for sem exams.
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Previous Years Repeated Questions Contract Law2 Osmania University
Part A Questions
- Submitted Agent (2023)
- Pledge by Non-owner (2023)
- General Lien (2023)
- Rights of Indemnity Holder (2023, 2022)
- Property of the firm (2023)
- Minor as a partner (2023)
- Caveat Emptor (2023, 2021)
- Unpaid Seller (2023)
- Co-sureties (2022)
- Pledge by non-owners (2022)
- Termination of agency (2022)
- Different types of goods (2022)
- Right of stoppage in transit (2022)
- Characteristics of partnership (2022)
- Rule in Garner v. Murray (2022)
- Kinds of Guarantee (2021)
- Pledge (2021)
- Substituted agent (2021, December 2021)
- Future goods (2021)
- Dormant Partner (2021)
- Dissolution of Partnership (2021)
- Continuing guarantee (December 2021)
- Particular lien (December 2021)
- Agreement to sell (December 2021)
- Hire-purchase agreement (December 2021)
- Nemo dat quad no habet (December 2021)
- Dissolution of partnership firm (December 2021)
Part B Questions
- What are the rights of surety against the creditor, principal debtor and cosureties? (2023)
- Define conditions and warranties and explain the implied conditions and implied warranties. (2023)
- State the meaning of Bailment and discuss the rights and duties of Bailee. (2023)
- Define contract of partnership and explain the essential elements for formation of a partnership. (2023)
- Explain the rights and duties of bailor and bailee. (2022)
- What are the various ways in which the relation of agency arises? (2022)
- Discuss the implied conditions and warranties in a contract for the sale of goods. (2022)
- “A partner is the agent of the firm for the purposes of the business of firm” Examine. (2022)
- Explain the circumstances in which a surety is discharged from liability. (2021)
- Discuss the different modes in which the authority of an agent may be terminated. (2021)
- When is a seller deemed to be an unpaid seller of goods and what are his rights? (2021)
- What is the legal position of a minor partner in a firm? (2021)
- Define guarantee and explain the extent of liability of surety. (December 2021)
- What is meant by agency through ratification? State the conditions that must be fulfilled before the doctrine of ratification can apply to an act of an agent. (December 2021)
- Briefly explain the conditions and warranties implied by law in a contract for the sale of goods. (December 2021)
- “The law of partnership is nothing but an extension of the law of principal and agent”. Explain. (December 2021)
Part C Questions
- B owes to C a debt guaranteed by A. The debt becomes payable. C does not sue B for a year after the debt has become payable. Is A discharged from his suretyship? (2023)
- A enters into a contract with B to supply wheat to be delivered in three monthly installments of about 100 tons each, and supplied only 30 tons in the first month. The buyer refuses to accept delivery – Examine the rights of the parties. (2023)
- P allows his agent to purchase goods for him on credit from T, and pays for them. On one occasion he pays his agent to purchase the goods. The agent misappropriate the money and purchased goods on credit from T. Whether T can recover the price of the goods from P? Decide. (2023)
- A bought a horse from B. A wanted to enter the horse in a race. A did not inform the same to B. Turns out the horse was not capable of running a race on account of being lame – Can B made liable for defect? Decide. (2023)
- Mr. Ashok, as surety for Ms. Bhavya, makes a bond jointly with Bhavya to Mr. Kumar, to secure a loan from Kumar to Bhavya. Afterwards, Kumar obtains from Bhavya a further security for the same debt. Subsequently Kumar gives up the further security. Is Ashok discharged? (2022)
- Smt. Tara placed an order with B & Co. requesting the company to send the goods by sea. B & Co. took a bill of lading in the name of Tara and sent it to the company own agent. The goods were, however destroyed in the course of the voyage. Here, who has to bear the loss? (2022)
- At a sale by auction without reserve, the auctioneer is instructed not to sell for less than a certain price. The auctioneer accepts the highest bona fide bid which, however, is lower than the reserve price. Is the sale valid, if so, is the auctioneer liable to compensate the principal seller? (2022)
- Alex, a publisher, agrees to publish at his own expense, a book written by Sridhar and to pay Sridhar half the net profits. Do Alex and Sridhar constitute partnership? (2022)
- Mohan Lal delivers diamonds to Neel Kamal on sale or return basis. Neel Kamal delivers the diamonds to Om Prakash on sale or return. An unknown person takes away the diamonds from Om Prakash. Can Mohan Lal file a case against Neel Kamal for the price of the diamonds? (2021)
- A agrees to indemnify ‘B’, a newspaper proprietor against claims arising out of the libel printed in the newspaper concerning a person of repute. Is this a valid agreement? (2021)
- ‘G’ Contracts with H to buy 50 easy chairs of a certain quality. H delivers 25 chairs of the type agreed upon and 25 chairs of some other type. Does ‘G’ reject the chairs? (2021)
- Raju, a partner of a firm, borrows money on his own credit by giving his own promissory note for the same, but he subsequently uses the proceeds of the note in the partnership concern of his own free will without any reference to the lender to do so. Is the firm liable for the loan? (2021)
- A, advances to B a minor Rs. 5000 on the guarantee of C. ON demand for repayment, B refuses to pay on the ground of his minority can A recover the amount from C? (December 2021)
- To try a coat that is offered for sale a customer in a store takes off her own coat and in the presence of the proprietor lays it on the counter. The coat is stolen. Is the proprietor responsible for the loss as a Bailee? (December 2021)
- A sold 100 quintals of ground nut oil to B. Before it could be delivered to B, the Government of India required the whole quality lying with A in public interest. B wants to sue A for breach of contract. Advice B. (December 2021)
- A contracts to sell B a piece of silk. B thinks that it is Indian silk. A knows that B thinks so, but knows that it is not Indian silk. A does not correct B’s impression. B afterwards discovers that it is not Indian silk. Can he repudiate the contract? (December 2021)
Syllabus Contract Law2 Osmania University
Unit-I
Indemnity and Guarantee – Contract of Indemnity, definition – Rights of Indemnity holder – Liability of the indemnified – Contract of Guarantee – Definition of Guarantee – Essential characteristics of Contract of Guarantee – Distinction between Indemnity and Guarantee – Kinds of Guarantee – Rights and liabilities of Surety – Discharge of surety. Contract of Bailment – Definition of bailment – Essential requisites of bailment – Kinds of bailment – Rights and duties of bailor and bailee – Termination of bailment – Pledge – Definition of pledge – Rights and duties of Pawnor and Pawnee – Pledge by non-owner.
Unit-2
Contract of Agency – Definition of Agent – Creation of Agency – Rights and duties of Agent – Delegation of authority – Personal liability of agent – Relations of principal and agent with third parties – Termination of Agency.
Unit-3
Contract of Sale of Goods – Formation of contract – Subject matter of sale – Conditions and Warranties – Express and implied conditions and warranties – Pricing – Caveat Emptor – Hire Purchaser Agreements.
Unit-4
Property – Possession and Rules relating to passing of property – Sale by non- owner – Nemo dat quad non habet – Delivery of goods – Rights and duties of seller and buyer before and after sale – Rights of unpaid seller – Remedies for breach.
Unit-5
Contract of Partnership – Definition and nature of partnership – Formation of partnership- Test of partnership – Partnership and other associations – Registration of firm – Effect of non-registration – Relations of partners – Rights and duties of partners – Property of firm – Relation of partners to third parties – Implied authority of partners – Kinds of partners – Minor as partner – Reconstitution of firm – Dissolution of firm – Limited Liability Partnership(LLP)