Dibrugarh University Business Laws
Solved Question Paper 2019
BUSINESS LAWS’ 2019
COMMERCE (Core)
Paper: C – 102 (Business Law)
Full Marks: 80
Pass Marks: 32
Time: 3 hours
The figures in the margin indicate full marks for the questions
1. Write True or False: 1x8=8
a) Quasi-contracts are created by circumstances, not by the parties.
Ans: True
b) A specific offer can be accepted by any party.
Ans: True
c) Money is considered as ‘goods’ under the Sale of Goods Act.
Ans: False
d) An insolvent cannot enter into a contract.
Ans: True
e) An agent is a link in between the principal and the third parties.
Ans: True
f) Registration of a partnership firm is compulsory.
Ans: False
g) An agreement to sale is an executory contract.
Ans: True
h) The Indian Contract Act was enacted at 1972.
Ans: False, 1872
2. Write short notes (any four): 4x4=16
a) Void Contract.
Ans: "A void contract is essentially an agreement that lacks legal enforceability. While initially valid, it loses its legal standing due to specific circumstances arising after its formation. Parties involved in a void contract are not legally obligated to fulfill its terms, except if any party has received benefits, which must be returned. Such contracts emerge when one party's consent is not freely given.
Key Features of a Void Contract:
a. It lacks legal enforceability.
b. It doesn't establish legal rights.
c. It imposes no obligations on any party.
d. Any agreement conflicting with public policy or the law is void.
e. Compensation cannot be awarded to any party in such contracts.
Instances of Contracts Declared Void Under the Indian Contract Act:
1) Agreements made by incompetent individuals, such as minors or those of unsound mind.
2) Agreements formed based on mutual mistakes regarding essential factual matters.
3) Agreements rooted in a misunderstanding of laws not applicable in India.
4) Agreements with unlawful considerations or objectives, wholly or partly.
5) Agreements formed without any consideration.
6) Agreements that restrain marriage are void, as every adult has the right to marry and exercise their choice freely."