Legal Environment Business Nepal TU Board 2017 - Business Law (MGT 204, old course) question paper

What do you understand by the term 'Contract'?

Point out two distinctions between 'sale' and 'agreement to sell'.

'X', a porter takes a luggage of 'Y', one of the passengers to the taxi in airport without being asked by 'Y' to do so. 'Y' does not make any attempt to stop 'X' from taking the goods. Is 'Y' bound to make payment to 'X'?

What do you mean by the term 'Caveat Emptor'?

'A' agrees to let his flat to 'B' on rent for the marijuana packaging business on a monthly rent of Rs. 50,000. After 5 months, 'B' stops the payment of rent. If 'A' can recover the rent?

What do you mean by sources of business law? Which one you consider as an important source?

'X' invites 'Y' for dinner. 'Y' accepts the invitation but fails to turn up. Can 'X' sue 'Y' for the damage?

What do you mean by public carrier?

'X' supplied rice and vegetables to the children of 'Y', a lunatic. As an unpaid seller, can 'X' proceed against 'Y' for the payment of the supplied goods?

What is 'Quasi Contract'?

Define 'Valid Contract'. Explain five major essential elements of a valid contract.

'A contract without consideration is not valid.' Explain this statement with its exceptions.

What do you mean by 'competent parties' to a contract? Explain the five natures of contract made with a minor.

Who is an 'agent'? Explain duties of an agent.

What do you mean by 'conditions' in a contract of sale of goods? Explain five major implied conditions in a sale of goods contract.

What do you mean by insolvency of a company? Explain the power and functions of a liquidator.

(a) Amar, a minor falsely representing his age, enters into an agreement to sell his property to Ram and receives from him as price a sum of Rs. 1,000,000 in advance. Out of this sum, Amar purchased a car for Rs. 600,000 and spends the rest on a pleasure trip to Bangkok. After attaining the age of majority of Amar, Ram sued him for the conveyance of the property or for the refund of Rs. 1,000,000 and damages.

• i) If the agreement made between Amar and Ram is valid? [2.5]
• ii) If the claim made by Ram could succeed? Discuss. [2.5]
• b) 'D', a carrier, discovered that a consignment of tomatoes owned by 'E' has deteriorated badly before the destination has been reached. He therefore sold the tomatoes. E now sued 'D', the carrier, for recovering damages, but 'D' claimed that he was the agent by necessity.
• i) If the claim made by 'D' is valid under the principle of agency contract? [2.5]
• ii) Whether E is entitled to bring action against the carrier 'D'? [2.5]

(a) 'A', a Madras based doctor, employed another doctor 'B' as an assistant for a period of three years on a salary of Rs. 100,000 per month. The agreement between 'A' and 'B' provided that after the termination of his employment B should not practice as a doctor in Madras within a radius of one kilometer of his dispensary for a period of one year, and if B did so, B should pay Rs. 200,000 to A as 'damages'. Immediately after the termination of his employment, 'B' began to practice as a doctor next door to A's dispensary. 'A' sued 'B' for the recovery of Rs. 200,000 as per the terms of employment.

• i) If the agreement of employment is valid? [2.5]
• ii) Whether the damage claimed by 'A' is valid? [2.5]
• b) Kajol, a singer, enters into a contract with Ajay, a theater manager, to perform twice a week for two months in his theater. Ajay promised to pay Rs. 15,000 per performance. Kajol, after sixth performance, remained absent willingly.
• i) Explain the nature of breach of contract in this case. [2.5]
• ii) What remedies are available to Ajay in the given situation? [2.5]