Business Laws - ADL-12-Ver3

Assignment - A
Question 1. Explain the essential elements of a valid contract.

Answer: Contracts come in all shapes and sizes. Some are verbal, some are written. Some are
formal, some informal. The use of the internet and electronic technology is also becoming
increasingly common in the context of forming contractual relationships. It is, therefore,
important to understand the essential features which make a contract valid, binding, and
enforceable.

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Question 2. Enumerate the different remedies for breach of a contract. Explain one of
the remedies.

Question 3. Describe the procedure of incorporation of a public company limited by

shares.

Question 4. Describe the different methods by which a company may be dissolved.

Question 5. Explained the implied conditions and warrantee in a contract for sale of
goods.

Assignment - B
Question 1. Define a bill of exchange. Explain the salient features of a bill of exchange.

Question 2. Explain some of the more important general principles of insurance.

Question 3. Describe the rights and duties of an arbitrator.

Case Study
Shyam Sunder admitted his only infant son in a private nursing home. As a result of a strong
dose of medicine administered by the nursing attendant, the child became mentally retarded.
Shyam Sunder made a complaint to the district forum seeking relief by way of compensation
to the extent of 21 lakhs on the ground that there was a deficiency in service by the nursing
home.

Question 1. What is the applicable law for handling the case?

Question 2. Is the district forum the proper competent authority to whom the complaint
should be made?

Question 3. Does Shyam Sunder's complaint give rise to a consumer dispute?

Question 4. Who is the consumer in this case; Shyam Sunder or his infant son?

Question 5. Is a private nursing home liable in such type of case under the consumer
protection Act?

Question 6. What, if any, is the limitation period for filing the complaint by a
consumer?

Assignment - C
Answer True or False

1. An invitation to offer is a good offer

2. A quasi contract is not a contract at all

3. An agreement to agree is a valid contract.

4. An attempt at deceit which does not deceive is not fraud.

5. A stranger to a consideration cannot maintain a suit.

6. A married woman cannot enter into a contract.

7. A minor girl can enter into a contract.

8. For breach of a contract a party cannot claim compensation for loss or damage.

9. A contract for fire insurance is not valid.

10. A seller cannot convey a better title to the buyer than he himself has.

11. The ownership in goods passes only on delivery.

12. The present sale of future goods is an agreement to sell.

13. Risk follows ownership.

14. An agreement to sell is not a contract of sale.

15. Not negotiable crossing of a cheque stops its transferability.

16. A bill of exchange cannot be crossed.

17. A cheque is a promise to pay.

18. A cheque is always payable on demand.

19. A promissory note can be made payable to bearer on demand.

20. A crossed cheque can be encashed at a counter of the bank.

21. The first directors of a company are appointed at its statutory meeting.

22. A person applying for shares in a company in fictitious name is liable to be punished with
imprisonment.

23. A public company can never be converted into a private company.

24. A public company can have two or more managing directors.

25. A person can be a director of not more than 15 companies.

26. Insurable interest is not necessary in all types of insurance contracts.

27. Insurance contracts are based on utmost good faith.

28. A contract of life insurance is a contract of indemnity.

29. The consent of the insurer is necessary for an assignment of a life policy.

30. There must be at least three directors in a private company.

31. A person of 68 years cannot be appointed a director of a company.

32. A company can issue debentures with rights.

33. A company can issue shares without voting rights.

34. A private company can commence business without obtaining a certificate to commence
business.

35. A share certificate is conclusive evidence of the holder's title to shares.

36. There cannot be more than one District Consumer Forum in a District.

37. There are consumer protection councils at National, State and District levels.

38. Deficiency of service is not covered under the Consumer Protection Act.

39. The term ‘consumer’ does not include a person who obtains goods for resale.

40. There can be a settlement between the parties to the arbitration agreement during arbitral
proceedings.

41. The arbitral award can be set aside.

42. The Arbitral Tribunal can make interim award during the course of arbitration
proceedings.