BUSINESS & COMMERCIAL LAW

Time allowed 2 hours

Total Marks 100
[N.B. The figures in the margin indicate full marks. Questions must be answered in English. Examiner will
take account of the quality of language and of the way in which the answers are presented. Different
parts, if any, of the same question must be answered in one place in order of sequence.]
Marks
1. (a) What is a valid contract? Write the essential elements of a valid contract?
3+4
(b) A crew of 30 men contracted to sail a ship from Chittagong to Singapore for Taka 50,000 each. During
the voyage, two crew members desert and the captain promises an additional Taka 15,000 to the
remaining 28 if they will complete the voyage short-handed. Can this promise be enforced?
4
2. Describe the situations when consideration or object of an agreement becomes unlawful.

3. (a) Distinguish between void and voidable contract. In which cases a contract can be void?
(b) Islam Brothers had paid Taka 300,000 as compensation to the defendant Babul, as
compensation for premature retirement. Subsequently, it was discovered that Babul had
committed several breaches of duty which would have justified his dismissal, without
compensation. Islam Brothers sued for recovery of Taka 300,000 inter alia on the ground of
common mistake. Can Islam Brothers recover the amount from Babul?

4. What are the remedies for breach of contract? Write the rights of a bailor and bailee under the
contract act?
3+4
5. (a) What is meant by Stipulation in a Sale of Goods contract? Define Warranty?
2+2
(b) What is an unpaid sellers lien? Mention the different circumstances when a seller is entitled to
the lien? How is the unpaid sellers lien terminated?
7
6. Write short notes on: a) Continuing Guarantee, b) Foreign Instruments, c) Partnership Property.

3x3=9

7. Loss arising out of Partners Insolvency can be recouped from whom? What happens to the
Authority of a Partner to bind a Firm after the dissolution of a Firm?
3+4
8. What was the decision in Garner Vs Murray case? X, Y and Z are Partners in a business sharing
profits and losses equally. Z dies and the Firm is dissolved. On the date of dissolution, the capital of
X, Y and Z were BDT 20,000, BDT 15,000 and BDT 10,000 respectively and the outside liabilities
amounted to BDT 65,000. The total assets of the Firm realized to BDT 50,000. Determine the
amount of deficiency if the Partnership Agreement is silent?
4+4
9. (a) Explain the meaning of Negotiable Instruments.
4
(b) Explain the essential elements of a Promissory Note. State, giving reasons, whether the
following instruments are valid promissory notes?
(i) X promises to pay Y, by a promissory note a sum of BDT 50,000, fifteen days after the death of B.
(ii) X promises to pay Y, by a promissory note a sum of BDT 50,000 and all other sums which
shall be due.
6
10. What do you understand by Bankruptcy? Write the purposes of the law of Bankruptcy? Who may
or may not be adjudged as Bankrupt?

2+2+5

11. (a) What is arbitration? Are there any advantages of arbitration? Can you arbitrate a dispute when
there is no arbitration clause in the relevant agreement?
(b) What is the difference between arbitration and litigation?

2+2+3
3

-The End-