Law of Contract Mains Questions Series Part-IX: Important Questions for Judiciary, APO & University Exams | Part - IX of X

Legal Bites brings to you Law of Contract Mains Questions Series Part-IX. The questions enlisted here are arranged section-wise and will aid the students in preparing for Judiciary, APO or University Exams. The list of questions curated by Legal Bites will help candidates identify the important and frequently asked questions and give them good practice for their aptitude and knowledge.

Law of Contract Mains Questions Series Part-IX

We know answer writing is a continuous exercise that is an inalienable part of the preparation process for any Examination. A well-written answer reflects not only the knowledge of an aspirant but also his/her ability to tailor the content in a manner suited to meet the expectations of the question.

Rigorous preparation for this exam is mandatory in order to crack it. In the last few months prior to the exams, it is sufficient for candidates to simply keep practising these questions in order to gain mastery over the subjects studied. Not only the candidate’s confidence level but also their scores will show good improvement upon following it.

Law of Contract Mains Questions Series Part-IX of X

Question 1

Write a short note Contract of indemnity. [MPJS 2010, 2014]

Question 2

What is a contract of guarantee? How is it different from a contract of indemnity? D guaranteed the repayment of a loan of Rs. 20,000 given by P to A. The guaranteed paper showed a loan of Rs. 25,000. P refused to accept this paper. Therefore A, without any reference to D, altered the amount to Rs. 20,000 and gave it to P, who accepted it. A failed to pay, and therefore P sues D. Will P succeed? [BJS 1986]

Question 3

The liability of the surety is co-existence with that of the principal debtor. Explain. [MPJS 2007]

Question 4

What is a continuing guarantee? When can it be revoked? [MPJS 2007]

Question 5

Explain and distinguish between a contract of Indemnity and a contract of Guarantee. Explain that “The liability of the surety is co-extensive with principal-debtor”? [MPJS 2019]

Question 6

A, a manufacturer of Sugar Mill Plant, has entered into a contract for the turnkey project of the erection of Sugar Mill with B. B has desired that A should furnish a bank guarantee for the good performance of the plant for a period of one year from the date of handing over the complete plant. Within one month of the commissioning of the plant, B wrote to A that the plant is not giving projected results. B invokes the bank guarantee. A files a suit for a permanent injunction restraining the bank from paying the amount of the bank guarantee. Decide. [Punjab JS 2003]

Question 7

The liability of the surety is co-extensive with that of the principal debtor. Explain? [Punjab JS 2007]

Question 8

Explain in detail the discharge of a surety. [BJS 2000]

Question 9

What are the rights of surety against creditors? Discuss the relevant provisions of the Indian Contract Act. [HJS 2011]

Question 10

Discuss the contract of bailment with the duties of Bailor and Bailee. Illustrate with suitable examples. [BJS 2018]

Question 11

The plaintiff handed over to the defendant certain jewels for the purpose of being melted and utilized for making new jewels. Every day as soon as the defendant’s work for the day was over, the plaintiff used to receive half-made jewels from the defendant and put them into a box in the defendant’s room without handing over the key to the defendant. One night the jewels were stolen from the defendant’s room. Discuss the remedy available to the plaintiff if any? [HJS 1998]

Question 12

Distinguish between the following giving suitable illustrations: [RJS 1974]

Bailment and Agency.

Question 13

Define the terms “bailment”, “bailor”, and “bailee”, giving illustrations. What is the kind of care expected from the bailee according to Section 151 of the Contract Act?

The defendant Ram Sarup betel-seller to the plaintiff Sunder Lal’s wooden shop on rent, and despite the tenant’s prudent care, the rioters set fire to the shop and destroyed is and the defendant, according to the terms of the agreement, failed to “return the same in the same condition,”

Whether the defendant as its bailee is liable to make good the loose and pay damages to the plaintiff? [UPJS 1988]

Question 14

Define Bailment and Pledge.

What is the distinction between a pledge and a mortgage? What are the Pawnee’s rights where pawnor makes default? [RJS 1969]

Question 15

‘X’ who is the owner of a property, enters into an agreement to sell property with ‘Y’ and upon receipt of consideration, executes an agreement to sell and power-of-attorney in favour of ‘Y’ authorizing him to sell, mortgage, or part with the property. There was no clause that it would not be revoked. Subsequently, ‘X’ revokes the power-of-attorney executed in favour of ‘Y’. Could he do so? Discuss. [Punjab JS 2007]

Law of Contract; Notes, Case Laws And Study Material

Question 16

Delegatus Non-Potest Delegare (a delegate cannot further delegate). Discuss the implications of this maxim in relation to agency and state the exceptions to the rule. [DJS 1990]

Question 17

The defendant employed the plaintiff to find a tenant for his premises. When the plaintiff was telephoning to prospective tenant ‘X’, a third party ‘Y’, overhead the conversation, ascertained the locality from X, went to the premises where there was a “To Let” board with the address of the defendant and engaged the premises. The plaintiff claims his remuneration. Is the claim tenable? Discuss. [DJS 1991]

Question 18

A appoints B as the trustee of his property with a specific direction to give the property on lease for five years. B enters into a contract with C to lease out this property to him for ten years. Is this contract specifically enforceable? [HJS 1999]

Question 19

Life Insurance Corporation (LIC) launched a salary-saving insurance scheme for employees wherein the employer was to deduct the premium from the salary of the employees and deposit the same to LIC at concessional rates. Employer X got the scheme for his 200 employees. Subsequently, because of losses, X failed to give salaries to his employees and also did not deposit the premium on their behalf. LIC consequently refused to pay the assured amount to those employees who asked for it. These employees claimed that X was the agent of LIC for their scheme. LIC must pay the assured amount. Will the employees succeed? [HJS 2007]

Question 20

Explain the doctrine of Ratification. What acts cannot be ratified? [MPJS 2019]

Law of Contract; Notes, Case Laws And Study Material