Global Learning Centre.

BUSINESS LAW Max. Marks:100 Max. Time 3Hrs

Q1. Multiple Choice Questions:- (Marks 20)

1. Saqib promises to deliver supplies at Waheeds store on the 1st January. On that day Saqib brings the goods to Waheeds store but after the usual hour for closing it, so supplies are not received by Waheed. What happens in this situation? a. Saqib has performed his promise b. Saqib has not performed his promise c. Waheed is responsible for not receiving supplies d. Both Saqib and Waheed are responsible for the situation 2. Contract between the client and his lawyer regarding payment of agreed professional fee if the suit turns out to be successful is called __________. a. Contingent contract b. Professional contract c. Business contract d. Legal contract 3. If an agreement is made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object, and is not hereby expressly declared to be void, it will be called as ___________. a. A void agreement b. An acceptable agreement c. A contract d. A promise 4. which of the following includes the active concealment of a fact by one having knowledge or belief of the fact a. Fraud b. Free Consent c. Promise d. Misrepresentation 5. Mr. A (a service provider) enters into a Personal Contract with Mr. B (client) to perform a specific task. In case of As death before performing the task, _______. a. Mr. B must perform it b. Representative of Mr. A must perform this task c. Representative of Mr. A must hire another person to perform the task d. The contract is void in this case 6. A businessman applies to a banker for a loan at a time when there is stringency in the money market. The banker declines to make the loan except at an unusually high rate of interest. The businessman accepts the loan on these terms. Which of the following is true about the situation? a. The contract is not induced by undue influence

b. The contract is induced by undue influence c. The contract is voidable at the option of businessman d. Bankers have ability to dominate the clients 7. A seller, intending to deceive buyer, falsely represents that a hundred thousand units of product are made annually at his factory, and thereby induces buyer to buy the factory. a. The contract is voidable at the option of seller b. The contract is voidable at the option of buyer c. The contract is not voidable at the option of buyer d. The contract is void 8. Aslam agrees to sell to Saleem two tons of flour but there is nothing whatever to show what kind of flour was intended. The agreement is void for uncertainty under ________. a. Section 26 b. Section 27 c. Section 28 d. Section 29 9. A contingent contract to do or not to do anything if an uncertain future event happens cannot be enforced by law unless and until that event has happened. This condition is covered under which section of contract act? a. Section 31 b. Section 32 c. Section 36 d. Section 38 10. Mr. A enters into a contract with Mr. B to construct a building according to the sight plan against the payment of the certain agreed amount. As per practice in such type of contracts, __________. a. Mr. A shall first construct the building and then demand payment from Mr.B b. Mr. B shall first pay the amount and then Mr. A construct the building c. Payment shall be made on monthly installments basis d. Payment shall be done as the construction is completed in various stages

Q2. Short Questions. (Define following Terms. 20x3=60)

1. Law of Contract 2. Valid Contract 3. Void Contract 4. Offer 5. Expressed Offer 6. Implied Offer 7. Acceptance 8. Expressed Acceptance 9. Implied Acceptance 10. Agreement 11. Enforceable By Law

12. Consideration 13. Free Consent 14. Undue Influence 15. Mistake 16. Misrepresentation 17. Performance of Contract 18. Breach of Contract 19. Remedies for Breach of Contract 20. Quasi Contract

Q 3. Case Study: (20)

Instructions:
Read the case carefully and answer the questions given at the end. Be precise, specific and to the point while answering the questions. Respective marks of each question are given along with the questions. Cheating or copying is strictly prohibited

Case:

Mr. Hashim, the owner of Alpha Company, , wants to appoint Mr. Saqib, resident of Ajman, as sales manager. He (Mr. Hashim) writes a job offer letter to Mr. Saqib on 05/01/2013 and offers a monthly salary of Dhs 50000. Mr. Saqib receives the letter on 08/01/2013 and writes an acceptance letter on 09/01/2013 in which he describes that he will be able to join Alpha Company on 01/02/2013. This acceptance letter is received by Mr. Hashim on 14/01/2013.

Questions:
Q1. What is the proposal under section 2(a) of The Contract Act in this case, describe why? (5) Q2. Identify the consideration for Mr. Hashim and for Mr. Saqib in this case. (5) Q3. When and how the communication of proposal is completed? (5) Q4. When the communication of acceptance is completed against Mr. Hashim, and against Mr. Saqib? Explain how. (5)