PAPER: MERCANTILE LAW (100 MARKS)

I. Law of Contract, 1872

Definitions
Essentials of a valid contract (Proposal, Acceptance, Consideration,
Free consent, Capacity of Parties, Not hereby declared to be Void)
Kinds of Contracts (Valid, Void, Voidable, Not Voidable)
Variety of Contracts (Contingent, Quasi, Bailment, Pledge, Indemnity,
Agency)
Performance of Contract, contracts need not to be performed.
Breach of contract, consequences of breach, damages for breach of
contract.

II. Sales of Goods Act, 1930

Definitions
Differences: Sale & agreement to sell, conditions and warranties,
express & implied conditions.
Doctrines: Caveat emptor, Nemo dat
Right and duties of seller & buyer, rights of unpaid seller.

III. Partnership Act, 1932

Definitions
Essentials of partnership
Kinds of partnership (partnership at will, particular partnership,limited
partnership)
Rights and duties of Partners
Relation of partners to third persons (implied authority of partner,
doctrine of holding out)
Incoming and outgoing partners (minor)
Dissolution of firms (compulsory, by agreement, by court, by notice on
happening of contingencies)

IV. Negotiable Instrument Act, 1881

Definitions
Types of negotiable instruments (Cheque, bill of exchange, promissory
note)
Parties to instruments, holder & holder in due course
Rules (as to negotiation, presentment, payment & interest, discharge,
noting and protest, compensation, acceptance, payment for honour)
 Special rules of evidence
Special provisions relating to cheques & bills of exchange (dishonor,
duties of banker)
Provisions as to foreign instruments

V. Competition Act, 2010

Definitions
Prohibition and abuse of (dominant position, certain agreements,
discipline, marketing practices)
Approval of mergers
Competition commission of Pakistan (established, composition, term)
Functions and powers of commission
Provisions as to penalty and appeals.

VI. Electronic Transaction Ordinance, 2002

Definitions
Recognition and presumption of electronic transactions (writing,
signature, stamp duty, attestation etc.)
Electronic documents (attribution, acknowledgement, time and place
of dispatch)
Certification of service providers
Application to acts done outside Pakistan
Offences & Nature (false information, false certificates, damage to
information system etc)

VII. The Arbitration Law in Pakistan

Definitions
Appointment, number and removal of arbitrator
Award by arbitrator
Powers of court upon award (remittance, modification and setting
aside of award)
Types of arbitration (with or without intervention of court)
Stay of legal proceedings in presence of arbitration agreement

VIII. Consumers Protection Act, 2006

Definitions
Consumer Commission (establishment, powers and functions,
complaints before commission and disposal)
Provisions as to compulsory recall of goods
Duties and liabilities of provider of goods (return and refund of goods)
 Offences and penalties
Contract between consumer and provider

IX. Companies Ordinance, 1984

Definitions
Types of Companies
Fundamental papers of company (Memorandum of association, articles
of association, prospectus)
Transfer of shares and debentures
Management and administration (promoters, shareholders, directors,
chief executive, auditors)
Meetings and proceedings (statutory, general, annual general
meeting)
Winding up (voluntary, by court)

X. Electronic Fund Transfer Act, 2007

Definitions
Payment system and their operation (designation of payment system
& revocation, real time gross settlement system, governance &
operation arrangement)
Payment instruments (designation, issuing and prohibition of
instruments)
Clearing and other obligations
Supervisory Control of state bank
Documentation of transfers
Notification of error and liabilities of parties
Law relating to action before court.
EDERAL PUBLIC SERVICE COMMISSION
COMPETITIVE EXAMINATION - 2017
FOR RECRUITMENT TO POST IN BS - 17
UNDER THE FEDERAL GOVERNMENT

MERCANTILE LAW

TIME ALLOWED: THREE HOURS
PART - I (MCQs): MAXIMUM 30 MINUTES
PART - I (MCQs): MAXIMUM MARKS = 20
PART - II MAXIMUM MARKS = 80
NOTE:
(i) Part - II is to be attempted on the separate Answer Book.
(ii) Attempt ONLY FOUR questions from PART - II. ALL questions carry EQUAL marks.
(iii) All the parts (if any) of each Question must be attempted at one place instead of
at different places.
 (iv) Candidate must write Q. No. in the Answer Book in Accordance with Q. No. in the
Q. Paper.
(v) No Page / Space be left blank between the answers. All the blank pages of
Answer Book must be crossed.
(iv) Extra attempt of any question or any part of the attempted question will not be
considered.

PART - II

Q. 2 Discuss the circumstances in which the veil of incorporation may be pierced in
Pakistan referring to the relevant case law and statutory provisions. (20)
Q. 3 Describe the legal rules and limitations for altering the memorandum and
articles of association of a company. (20)
Q. 4 Describe the features of partnership and the legal status of a minor partner in a
partnership. (20)
Q. 5 Discuss the creation and legal effects of agency relationship in law. (20)
Q. 6 Distinguish negotiable instruments by statute and explain the liability of parties
to these instruments. (20)
Q. 7 discuss the nature and scope of section 4 of the Competition Act 2010 regarding
prohibited agreements. (20)
Q. 8 In presence of an arbitration agreement discuss the legal aspects of the power
of the judicial authority to stay legal proceedings under the Arbitration Act 1940.
(20)
FEDERAL PUBLIC SERVICE COMMISSION
COMPETITIVE EXAMINATION -2016
FOR RECRUITMENT TO POSTS IN BS-17
UNDER THE FEDERAL GOVERNMENT

MERCANTILE LAW
Time Allowed: Three Hours
Part-I (MCQs): Maximum 30 Minutes
Part-I (MCQs): Maximum Marks = 20
Part-II: Maximum Marks = 80
Q 2. Define Endorsement. Explain its kinds. (20)
Q.3 What do you understand by partnership? Elaborate the points of difference
between partnership and company. (20)
Q.4 Define Contract. Explain the contracts which need not to be performed. (20)
Q.5 What do you understand by implied authority of a partner as an agent of the
firm? Are there any acts which he cannot do under his implied authority? (20)
Q.6 Discuss the composition and functions of Competition Commission of Pakistan
under the Competition Commission Act, 2010. (20)
Q.7 "None can transfer a better title like than he himself has". Are there any
exceptions to this rule? (20)
Q.8 Explain the terms and conditions of Transfer under the Electronic Fund Transfer
Act 2007. What disclosures are required under such transfer? (20)

Mercantile Law Paper 2015

Q.2 Briefly explain the modes of winding up of a company.
Q.3 Explain the provisions pertaining to the notice of dishonour of a negotiable instrument.
Q.4 How a firm is registered? What is the effect of non-registration of a firm?
Q.5 When the property in the goods stands transferred from the seller to the buyer?
Q.6 What are the different powers of an arbitrator under the Arbitration Act, 1940? What
are the circumstances under which a court can remove an arbitrator?
Q.7 When consent is said to be free?
Q.8 Write short notes on any TWO of the following:
(a) Consequences of a breach of contract
(b) Indemnity and Guarantee
(c) Condition and Warranty

MERCANTILE LAW 2014

PART-II
NOTE: (i) Part-II is to be attempted on the separate Answer Book.
(ii) Candidate must write Q. No. in the Answer Book in accordance with Q. No. in the Q.
Paper.
(iii) Attempt ONLY FOUR questions from PART-II. ALL questions carry EQUAL marks.
(iv) Extra attempt of any question or any part of the attempted question will not be
considered
Q.NO. 02 What is misconduct? What remedy is open to the litigating party against whom an
appointed arbitrator or umpire commits misconduct? Discuss.
Q.NO. 03 What are qualifications, powers and liabilities of director of public limited
company? In what circumstances his office falls vacant?
Q.NO. 04 What are rules of evidence relating to negotiable instrument?
Q.NO. 05 When does communication of proposal, acceptance and revocation become
complete? How revocation is made?
Q.NO. 06 What is legal status of a contract entered into by a minor ? Is is enforceable by
law? If so, under what circumstances?
Q.NO. 07 What do you mean by implied authority of partner? Discuss liability of firm for
partner's act?
Q.NO. 08 " A seller cannot convey a better title than he himself has". Are there any
exceptions to this rule? Discuss.