Course Code: ECO - 05
Course Title: Mercantile Law
Assignment Code: ECO – 05/TMA/2014-15
Coverage: All Blocks
Maximum Marks: 100
Attempt all the questions.
Answer of Q.N.1 (a).
(i) Distinguish between Void and Voidable
Contracts
Void Contract: An
agreement which was enforceable at the time of formation but later on due to
certain event it lost the enforceability, such agreement is known as void
contract. For example, on 1st January ‘A’ agrees with ‘B’ to sell his horse for
Rs. 100 on 15th of January. The horse dies on 10th January. Now the performance
of contract on 15th January becomes impossible, hence this contract is void.
Voidable
Contract: An agreement which is enforceable at the option of one of the parties
thereto but not at the option of the other, is a voidable contract. A Voidable
Contract is defective contract and is enforceable at the instance of the
injured party by the defect. Agreements obtained by fraud or coercion are
Voidable Contracts. For Example, ‘A’ induces ‘B’ by giving false description to
purchase certain goods. ‘B’ on discovering misrepresentation can repudiate the
contract or can elect to carry on the contract.
Difference
between Void and Voidable Contract:
1. Void
agreements are void ab initio and voidable contract becomes void when the party
on whose option the contract is voidable, chooses to repudiate it.
2. In void
agreement restitution is allowed except when illegality or voidness of the
agreement was in the knowledge of both the contracting parties. In voidable
contract when they are rescinded, benefits will be restored as much as
possible.
3. Collateral
transactions are not effected in case of voidable contracts, the same is in
case of void agreement also. But where the agreement is void because of the
illegality of the consideration or object, the collateral transaction will also
become void.
(ii) Distinguish between Void and Illegal
Contracts
COMPLETE
SOLVED ASSIGNMENTS ARE AVAILABLE FOR ONLINE MEMBERS ONLY.
BECOME
ONLINE LEARNING MEMBER BY PAYING A NOMINAL FEE OF Rs.300 ONLY.
SOME SOLVED QUESTION PAPERS WILL ALSO BE PROVIDED.
FOR DETAILS
CONTACT:
KUMAR NIRMAL
PRASAD, TINSUKIA (ASSAM)
CONTACT NO.
9577097967
Answer of Q.N.1 (b).
Offer: Section 2 (a) defines an offer as “When one person signifies to
another his willingness to do or abstain from doing anything with a view to
obtaining the asset of that other to such act or abstinence.” The person making
the offer is known as the Offeror or Promisor and the person to whom it is made is called
the Offeree or
Promisee [Section 2(c)].
For e.g. A says
to B, “Will you purchase my flat at Andheri for Rs.20 Lacs? Here A is the
promisor and B is the promises.
Essentials of a Valid offer:
1. Intention to create legal relationship: The
Offeror while making the offer must do it with the intention to create legal
relations. Offeror must be conscious that a contract will arise, if the Offeree
accepts the same.
2. Certain or Unambiguous: The terms of
the Offer to be valid must be certain, clear and unambiguous. For e.g. An offers to sell B, ten tones of oil. A is a dealer of
various oil. Here the offer is ambiguous as the offer does not specify the type
of oil. However, if A was a dealer only in Parashute Coconut oil then the offer
is unambiguous.
3. Offer must be distinguished from:
(i) A declaration of intention: A
declaration by a person that he intends to do something gives right of action
to another. Such a declaration only means that an offer will be made or invited
in future and not that an offer is made now.
(ii) An invitation to make an offer or do
business: Display of goods by a shopkeeper in his window, with prices
marked on them, is not an offer but merely an invitation to the public to make
an offer to buy the goods at the marked prices. A buyer, in case the prices of
the goods are marked, cannot force the seller to sell the goods at those
prices. He can, at the most, ask the seller to sell the goods to him, in which
case he is making an offer to the seller and it is upto the seller to accept
the offer or not. Likewise, quotations, menu card, catalogues, prospectus
issued y a company for subscribing to shares are all example of an invitation
to make an offer.
4. Offer must be to a definite person: The
words of an Offer must apply to definite persons or class of persons to create
a legal relationship.
5. Offer must be communicated: An offer,
to be complete, must be communicated to the person to whom it is made. Unless
an offer is communicated, there can be no acceptance of it.
6. Offer must be made with a view to obtaining
the assent: The offer to do or not to do something must be made with a
view to obtaining the assent of the other party addressed and not merely with a
view to disclosing the intention of making an offer.
7. Special Terms to be made clear in the Offer: The
offer may be conditional but the conditions or special terms must be clearly
communicated in the offer. Whenever an offer has special terms attached to it,
these special terms and conditions must be effectively communicated to the Offeree
to bind him.
8. Offer should not contain a term, the
non-compliance of which may be assumed to amount to acceptance: A person
cannot say that if acceptance is not communicated within a certain time, the
offer would be considered as accepted.
Answer of Q.N.2.
COMPLETE
SOLVED ASSIGNMENTS ARE AVAILABLE FOR ONLINE MEMBERS ONLY.
BECOME
ONLINE LEARNING MEMBER BY PAYING A NOMINAL FEE OF Rs.300 ONLY.
SOME SOLVED QUESTION PAPERS WILL ALSO BE PROVIDED.
FOR DETAILS
CONTACT:
KUMAR NIRMAL
PRASAD, TINSUKIA (ASSAM)
CONTACT NO.
9577097967
Answer of Q.N.3 (a).
Consideration and Exceptions to
the Rule “No Consideration, No Contract”
Section 2
(d) of Indian Contract Act, 1872, defines consideration as “When at the desire
of the promisor the promise or any other person has done or abstained from
doing or does or abstains from doing something, such act abstinence or promise
is called a consideration for the promisor.”
Consideration
is an advantage or benefit which moves from one party to another. It is the
essence of bargain. It is the reciprocal promise i.e. to do something or
abstain from doing something in return of a promise. It is necessary for an
agreement to be enforceable by law. In consideration both the parties give
something & get something in return. It may be in cash or kind. The general
rule is that an agreement made without consideration is void. But there are
certain exceptions to the rule ‘No consideration no contract’. Section
25 deals with the exceptions to this rule which are given below:
COMPLETE
SOLVED ASSIGNMENTS ARE AVAILABLE FOR ONLINE MEMBERS ONLY.
BECOME
ONLINE LEARNING MEMBER BY PAYING A NOMINAL FEE OF Rs.300 ONLY.
SOME SOLVED QUESTION PAPERS WILL ALSO BE PROVIDED.
FOR DETAILS
CONTACT:
KUMAR NIRMAL
PRASAD, TINSUKIA (ASSAM)
CONTACT NO.
9577097967
Answer of Q.N.3 (b).
When an agent does more than he is authorised to do,
and when the part of what he does, which is within his authority, can be
separated from the part which is beyond his authority, so much only of what he
does as is within his authority is binding as between him and his principal. In the given situation, Anil
permits his agent Basant to purchase goods on credit from Chander. But Basant
makes credit purchases from Chander by using the authority for his own use.
Here Anil is liable for every acts of Basant if such acts are within the
authority which is given by him to Basant. Here Basant exceeds his authority by
purchasing goods for his own use. Hence Anil cannot be made liable to Chander.
Answer of Q.N.4.
Meaning
of Goods
Goods is defined in Section 2 (7)
as ‘Every kind of moveable property other than actionable claims and
money; and includes stocks and shares, growing crops, grass and things attached
to or forming part of the land which are agreed to be severed before sale or
under the contract of sale.’ Trademarks, copyrights, patent rights, goodwill,
electricity, water and gar are all considered as goods. Therefore Goods as defined by
this act has the following characteristics:
1. Every movable property is goods.
2. Money and actionable claims are not considered as goods. Money
is defined as the current coin of realm. But those coins which are no longer in
circulation can become the subject matter of a contract of sale as an article
of curiosity.
3. Goods include stocks and share although in English raw stocks
and shares are not covered by the definition.
4. Goods also include growing crops and grass.
5. Anything which is attached to or forming part of the land
(immovable property) can become goods if it is separated from the immovable
property. Therefore, unless something is separate from immovable property, it
cannot be called goods.
Types
of Goods
Goods may be classified into various types as under:
1. Existing goods: These
are goods which are owned and possessed by the seller at the time of sale. Only
existing goods can be the subject-matter of a sale. The existing goods may be:
Specific goods: These are
goods which are identified and agreed upon at the time of contract of sale is
made. For e.g. a person visit s a Titan showroom and identifies a watch for
purchase.
Ascertained goods: Though
commonly used as similar in meaning to specific goods, these are the goods
which become ascertained subsequent to the formation of contract of sale. For
e.g. from say 10 Sony T.V. a person identifies the particular T.V.
Unascertained goods: These
are the goods which are not identified and agreed upon at the time of the
contract of sale. They are defined only by description and may form part of a
lot. For e.g. a shopkeeper has a bag containing 50 kg of sugar. He agrees to
sell 10 kg sugar to X out of that bag The 10 kg of sugar is unascertained goods
as they are yet to be identified from the bag containing 50 kg.
2. Future Goods: These are
goods which a seller does not possess at the time of the contract but which
will be manufactured, or produced, or acquired by him after the making of the
contract of sale. [Section 2(6)]. A contract of present sale of future goods,
though expresses as an actual sale, purports to operate as an agreement to sell
the goods and not a sale. This is because the ownership of a thing cannot be
transferred before that thing comes into existence.
Examples: (a) A agrees to sell to B all the milk that his cow may
yield during the coming year. This is a contract for the sale of future
goods.
(b)X agrees to sell to Y all the
mangoes, which will be produced in his
garden next year. It is contract of sale of future
goods, amounting to ‘an agreement to sell.’
3. Contingent Goods: It is
a type of future goods but these are goods the acquisition of which by the
seller depends upon a contingency which may or may not happen.
Example: A agrees to sell specific goods in a
particular ship to B to be delivered on the arrival of the ship. If the ship
arrives but with no such goods on board, the seller is not liable, for the
contract is to deliver the goods should they arrive.
Answer of Q.N.5 (a).
COMPLETE
SOLVED ASSIGNMENTS ARE AVAILABLE FOR ONLINE MEMBERS ONLY.
BECOME
ONLINE LEARNING MEMBER BY PAYING A NOMINAL FEE OF Rs.300 ONLY.
SOME SOLVED QUESTION PAPERS WILL ALSO BE PROVIDED.
FOR DETAILS
CONTACT:
KUMAR NIRMAL
PRASAD, TINSUKIA (ASSAM)
CONTACT NO.
9577097967
Answer of Q.N.5 (b).
COMPLETE
SOLVED ASSIGNMENTS ARE AVAILABLE FOR ONLINE MEMBERS ONLY.
BECOME
ONLINE LEARNING MEMBER BY PAYING A NOMINAL FEE OF Rs.300 ONLY.
SOME SOLVED QUESTION PAPERS WILL ALSO BE PROVIDED.
FOR DETAILS
CONTACT:
KUMAR NIRMAL
PRASAD, TINSUKIA (ASSAM)
CONTACT NO.
9577097967
WEBSITE: WWW.DYNAMICTUTORIAL.BLOGSPOT.COM
Post a Comment
Kindly give your valuable feedback to improve this website.