Roll No.

Total No. of Questions 6

Total No. of Printed Pages- 12
Time Alowed -3 Hours Maximum Marks - 100

WPR
Answers to questions are to be given only in English except in the case of candidates who
have opted for Hindi Medium. If a candidate who has not opted for Hindi Medium,
his/her answers in Hindi willnot be evaluated.

Question No. 1 is compulsory.

Answer any four questions from the remaining five questions.

Working notes should form part of the answers.

Candidate found copying or receiving or giving any help or defying instructions of the
invigilators or having/using mobile phone or smart watch will be expelled from the
examination and will also be liable for further punitive action.

Marks
1. (a) () Mr. L let out his residential house to Mr. M for 50,000 p.m. for 3
aperiod of one year. According to the Rent agreement, electricity
bill willbe paid by Mr. L. But Mr. L could not pay electricity
dues up to 5 months, due to his financial hardships. The
Electricity Board sent the notice of disconnection, if it is not paid
within a week's time. To avoid all this, Mr. M paid the electricity
bill of 50,000 with penalty. Later on, L refused to reimburse
? 50,000 and argued that he has paid billvoluntarily because of
his own interest. Decide with reference to provisions of The
Indian Contract Act, 1872 whether Mr. M is entitled to be
reimbursed by Mr. L?
WPR P.T.0.
 (2)
WPR Marks
(11) Mr. A offered to sell 25 chairs to Mr. B @? 1,500 per chair on 2
12.02.2024. A promised B that he would keep the offer open till
15,02.2024. However, on 13.02.2024, he sold those chairs to Mr.
C @? 1,700 per chair without the knowledge of B. Mr. B
communicated the acceptance of the above offer on 14.02.2024.
Advise, with reference to provisions of The Indian Contract Act,
1872 whether Mr. B can claim damages from Mr. A ?

(iii) Mr. A was running an orphanage. His friend Mr. S, a 2

philanthropist agreed to donate 2 lakh for treatment ofachild,
who was suffering from cancer. On emergency Mr. A incurred
7 1.5 lakh on treatment of child, Now Mr. S refused to
pay.
Whether Mr. Acan claim? 1.5 lakh from Mr. S with reference to
provisions of The Indian Contract Act, 1872 2

(b) () Kamal. a Chartered Accountant started his e-commerce business 4

by incorporating a One Person Company (the OPC) on
1st October, 2023. He, being a sole member of the OPC named
his brother Sudhakar, with his consent, as his nominee in the
Memorandum of Association of the OPC. Now, Kamal intends to
replace Sudhakar and to nominate any one of thefollowing short
listed friends as a nominee with effect from 1 January, 2024.
(1) Robert, an Indian citizen, and a resident in India shifted his
residence to the USA on 31 May, 2022 and has not
returned to India till 1s January, 2024.

(2) Dinkar, an Indian citizen, and non-resident in India came

for employment in India on 1 April, 2023 and have been
continuously staying in India since then.
WPR
 (3)
WPR Marks
Referring to the provisions of the Companies Act, 2013,
advise Kamal regarding eligibility of his short-listed friends
to be appointed nominee and the procedure to be followed
for changing the name of the nominee as per the provisions
of The Companies Act, 2013.

(ii) XYZ Ltd. was incorporated to hold the patent for a new product. 3
The company is expecting to start its commercial production
within the next two years. In the meanwhile, for timely
installation, the company has placed the purchase order for plant
and machinery with a down payment of ? 1crore. Referring to
the provisions of The Companies Act, 2013 examine, whether the
company can go for acquiring the status of a dormant company ?

(c) Referring to the provisions of the Indian Partnership Act, 1932, answer
the following :
(i) "If a partner is otherwise expelled; the expulsion is null and 4
void." Discuss.

(ii) The partner who is expelled will cease to be liable to the third 2

party for the act of the firm done after expulsion." Analyse.

2. (a) (i) M/s RK Traders (Buyer) made a contract with M/s CK Traders 4

(Seller) for purchase of 2000 kg of basmati rice specifically

grown in Chhattisgarh State should be packed in pink colour bags
of 25 kg each to identify the place of origin by specifying the
mode of packing of basmati rice. The seller agreed for specific
packing of rice grown in Chhattisgarh State. However, by
misunderstanding staff of seller packed the quantity of 1800 kg
of basmatirice grown in the State of Maharashtra in white colour
bags of 30 kg each and the remaining quantity of 200 kg, grown
WPR P.T.0.
 (4)
WPR
Marks
in Chhattisgarh State, in pink colour bags of 25 kg each.
Reterring to the provisions of the Sale of Goods Act, 1930
analyse, whether the buyer has the right to reject the entire
quantity of basmati rice supplied by the seller.
On the other hand what is the remedy available to buyer if he has
to accept theentire quantity to fulfilhis other contracts with other
parties ?

(i1) Kartik agreed to sell his laptop to Vasant for a price to

be fixed 3
by Kusum a hardware engineer. However, before the
delivery of
the laptop, Kartik changed his mind and did not share
any
particulars and configuration of the laptop with Kusum, which
made her unable to do the valuation. Kusum refused to
do
valuation.
Vasant needed laptop for his project, so he promised Kartik that,
if the laptop is delivered to him, he would pay a
reasonable price
for it. However, Kartik decided not to sell his
laptop to Vasant.
Now, Vasant wants to know from you, being a legal
expert,
whether Kartik is bound by his promise as he agreed earlier to
deliver his laptop to him at a reasonable price. If he does not
agree to deliver what is the other remedy available to Vasant 2
Advise, referring to the provisions of the Sale of Goods Act.
1930.

(b) Referring to the provisions of the Companies Act, 2013, answer the
following:
(i) "Corporate veil sometimes fails to protect the members of the
company from the liability connected to the company's actions."
Explain any three instances.
(ii) What is the effect of Memorandum and Articles when registered ? 2

WPR
 (5)
WPR Marks
(c) Referring to the provisions of the Limited Liability Partnership Act,
2008, answer the following :
() Under what circumstances a Limited Liability Partnership is 4
compulsorily required to change its name ? Also, explain the
compliance requirement following the change of name and the
Consequences, if any, in case of default therein.

(ii) What do you mean by a Small Limited Liability Partnership ? 2

3. (a) Referring to the provisions of the Indian Partnership Act, 1932, answer
the following :
3
() Ram and Shyam are partners in a partnership firm styled as RS &
Co. (the firm). Gopal, a renowned businessman, is their common
friend. Ram introduced Gopal to Sundar, a supplier to the firm, as
his newly joined partner. Gopal knowing that he is not a partner
preferred to keep quiet on such an introduction. This information
about Gopal, being a partner of the firnm, was shared by Sundar
with another businessman Madhav. Next day, Sundar supplied
the raw material on credit and Madhav lent?S lakhs to the firm
for a short period on the understanding that Gopal is a partner of
the firm. On due dates, the firm failed to discharge its liability
towards both. Advise Gopal, whether he is liable to Sundar and
Madhav for the aforesaid liability of the firm.

(ii) On admission as a new partner, Amar agreed to be liable for the 2

existing debts (referred to as the old debts) of the firm by an

agreement signed by the all partners including Amar. Examine,
whether Amar will be liable in a suit filed by the creditor against
the firm and all existing partners for recovery of the old debt of
the firm.

WPR P.T.0.
 (6)
WPR Marks
(ii) Suman, having 10% share in the property of 200 lakh of afirm 2
retires from the firm on 31 March, 2023. The firm continues
with the business thereafter without final settlement of accounts
between the existing and retired partners and earned profits of
? 10 lakh during the financial year ending 314 March, 2024.
Suman, in her own interest and in the absence of any provision in
the partnership firm on this point, claimed 3 lakh from the firm
toward the use of her share in the property and profit of the firm
which was rejected by the partners. There is no contract between
the partners contrary to the provisions of the Act in this regard.
Examine the validityof the amount claimed by Suman under the
provisions of The Indian Partnership Act, 1932.

(b) (i) JV Limited borrowed a secured loan of? 5 crore from Star Bank 4

Limited (the bank) to meet its working capital requirement.

However, the borrowing powers of the company, under its
Memorandum of Association, were restricted to ? 1 crore. The
bank released the loan amount in two instalments of? 1crore and
4 crore. On the due date for repayment of the loan, the
company refused to accept the liability of ? 5crore on the ground
that the borrowing was ultra vires the company. The company's
books of account show that the company has utilised the loan
amount of 3 crore for repayment of its lawful debts. The
utilisation of the remaining ? 2 crore cannot be traced. Referring
to the doctrine of ultra-vires under the Companies Act, 2013,
examine the validity of the decision of the company denying the
repayment of the loan and explore the remedy, if any, available
to the bank for recovery of the loan.

WPR
 (7)
WPR Marks
(1) After incorporation of Goodwill Private Limited (the company) 3
on 15" May, 2024 the share certificates were issued to Amit,
Sumit and Sumati being subscribers to the Memorandum of
Association of the company without affixing the common seal
thereon and under the signature of Amit and Sumit, the directors
of the company. The company has yet to appoint a company
secretary. On objection raised by Sumati, director, about the
validity of the share certificate signed by other two directors,
Amit and Sumit, clarified that since the company has opted not to
have the common seal for the company the share certificates (i.e.
the document) signed by two directors are valid. Referring to the
provisions of the Companies Act, 2013, examine the correctness
of the objection raised by one of the directors and in response,
the clarification offered by other directors.
Would your answer be different, if the company had a company
secretary ?

(c) (i) In case of breach of contract, the court may award compensation 3
or damages. Explain the circumstances when court may award
ordinary damages, special damages and liquidated damages
under the provisions of The Indian Contract Act, 1872,

(ii) What are the conditions need to be fulfilled to make the 3

following agreements valid without consideration as per the

provisions of the Indian Contract Act, 1872 ?
(A) Agreement made based on natural love and affection
(B) Promise to pay time-barred debts

WPR P.T.0.
 (8)
WPR Marks
4. (a) ) Raghav found gold and diamond studded wristwatch value 4

approximately ? 1,00,000/- on the roadside. He picked it up and

then advertised in the newspaper that the true owner thereof can
take the watch after showing proper evidence. After waiting for a
certain period of time, when the true owner did not turn up, he
gifted that wristwatch to his son Mahesh. A few days later,
Madhav,the true owner of watch, somehow noticed his watch on
wrist of Mahesh. He approached him to collect the same, but
Mahesh refused. In the evening, Raghav called Madhav and told
him that he incurred 20,000 to find the true owner if he fails to
reimburse him the lawful expenses incurred on finding out the
true owner, he will sue him for recovery thereof or retain the
possession of the watch with him till recovery. Even he can sell
the watch for recovery of expenses. Advise whether the
following actions of Raghav were lawful according to provisions
of The Indian Contract Act, 1872:
(A) Gifting the wristwatch to his son.

(B) Warning Madhav to sue for recovery of lawful expenses

incurred in finding true owner.

(C) Retaining the possession of wristwatch till recovery of

lawful expenses.

(D) Selling of wristwatch for recovery of expenses.

(ii) Woollen Garments Limited entered into a contract with a group 3

of women in July, 2023 to supply various woollen clothes for

men, women and kids like sweaters, monkey caps, mufilers,
WPR
 (9)
WPR Marks

WOollen coats, hand gloves etc. before the commencement Ol ue

winter season, The
agreement expressly provides that the
woollen clothes shall be supplied by the end of October, 2025
before starting of winter season. However, due to the prolonged
Strike, women group could tender the supplies in March, 2024
when the winter season was almost over. Analysing the situation
and answer the following questions in light of the provisions of
The Indian Contract Act, 1872:
(A) Whether company can reject the total supply by women
group ?

(B) Whether company can accept the total supply on request of

Women group ?

(b) (1) With reference to provisions of The Negotiable Instruments Act, 4

1881, tell the instances where a person shall be deemed to have

committed an offence for dishonour of cheque and what are the
conditions to be compiled with for not constituting such an
offence ?

cheques, Explain
(ii) (A) All cheques are bills while all bills are not
3

the additional features of a cheque which differentiate a

Act.
cheque from bill as per the Negotiable Instruments
1881.

(B) Ambiguous instrument

laws in the Indian Legal System considering the 6

(c) Explain the types of
Indian Regulatory Framework.

WPR P.T.0.
 (10)
WPR
5.
Marks
(a) () Ashok, a trader, delivered a camera to Mangesh on 'sale or 4
return' basis. Mangesh delivers the camera to Rahul on the terms
of 'sale for cash only or return'. Afterward, Rahul delivered it to
Vishal on a 'sale or return' basis without paying cash to
Mangesh. The camera, which was in the possession of Vishal
was lost by theft though he exercised due care for its safety.
Referring to the provisions of The Sale of Goods Act, 1930,
analyse the situation and advise, whether Mangesh, Rahul or
Vishal are, jointly or severally, liable to pay the price of the
camera to Ashok.

(i1) Ansari of Jaipur sold 100 smart TV set @ R 50,000/- per set to 3
Baburam of Delhi. He delivered the TV sets to Chetan, a transport
carrier for transmission to Baburam. Baburam further sold these
100 TV sets to Shayamlal @ 60,000/- per set. On reaching the
goods at the destination, Baburam demanded the delivery but
Chetan, wrongfully, refused to deliver the goods to Baburam.
That is why; he failed to deliver TV sets to Shayamlal and
suffered a huge loss on account of non-delivery. Ansari came to
know about this. He directed Chetan to stop the delivery to
Baburam and re-deliver the goods to him at Jaipur.
Answer the following questions under the provisions of the Sale
of Goods Act, 1930 :
(A) Whether Ansari has right to stop the goods in transit ?

(B) Whether Baburam can claim loss suffered due to non

delivery from Ansari ?

(b) State the circumstances, in which a Court may, at the suit of the 7
partner, dissolve a partnership firm under the provisions of the Indian
Partnership Act, 1932.

WPR
 (11)
WPR Marks
6
(C) In accordance with the provisions of the Indian Cotract Act, 1872,
answer the following :
() Rights of Bailor against 2ny wrong oer (Third Party)
() Dutis of the Pzwnee

(a) Refering to the provisions of the Nezotiable Instruments Ac, 131,

Swe he following in the giv en scenario :
Aman drew the bill of exchange (the bll) on Baban, o 4

2cceptei it payable to Magan ot order. Magan indorsed the bill

to Gagzn Gagan indorsed the bill to Akzsh to be delivered to
him on the next day. However, on the death of Gagan on the
same day, his only son Ankit delivered the bill to Akash on he
next day as intended by his decasei father. On presenting the
bill on the ue date, Baban refused to pay. Explaining the
imporance of delivery in negotiation. decide. whether Akash can
enforce the payment of the bill against Baban or the previous
paies

(i) Relizble Limited, an Indian company, is a global leader in 3

Petrochemical products For payment of the sale prce of

machinery imported from Alex Manutacturing Limited aLSA
besed company (the exporter), the Indian company drewabill of
exchange on Manish. aresident of Mfumbai (ndia) wh0 accete
the bll at Mumbai payable to the exporter in Los Angeles ='SA
Decide. whether the bill of exchange is an inland nstrument or s

foreign instrument. Assume that the bil! of exchange ws sin

bv the authorised person for the drawer company.
WPR P.I.O.
 (12)
WPR Marks
(0) Answer the following as per the provisions of the Indian Contract Act,
1872 :

() Agent cannot personally enforce, nor be personally bound by, 4

Contracts on behalf of the principal' however there are some
exceptions to this general rule, explain.
(1) State the rights of Indemnity-holder when sued.
OR

() Explain any four differences between Contract of Indemnity and 4

Contract of Guarantee.
(ii) Whether the threat to commit suicide is coercion ?

(c) () Explain the legal rules of auction sale relating to the following 4
pointsas per provisions of theSale of Goods Act, 1930 :
(A) Bid by seller with or without notification
(B) Bidder to retract from his bid
(C) Effect of pretending bidding

(ii) Explain the provisions relating to the delivery of the wrong 3

quantity of goods as per the provisions of the Sale of Goods Act.
1930.

WPR