Important Questions

1. What is the Environment of Business in India? Explain the requirement of a strong and robust
system of business law?

2. What are the essential features of a valid contract as envisaged under the The Indian Contract
Act, 1872 ?

3. “No consideration No Contract”. What are the exceptions to this rule ?

4. Discuss any two agreements declared to be void by the Indian Contract Act, 1872

5. What are the remedies available for a person when there is breach of contract by the other
party?
Ans:1)Rescind the contract
2)Damages: Monetary/Special
3)Specific performance-Cannot pay have to aperform the function
4)Quantum merit - Sue on basis of breaching contract
5)Injunction - Refrain from doing something

6. Explain briefly as to why a “Company” is considered to be one of the most preferred forms of
business organisation not just in India but across the globe.
Ans:Limited liability,no of shareholders higher, can raise money from the public

7. What do you understand by the Articles of Association ( AoA) ? Discuss at least five important
articles generally found in the AoA of a typical Public Limited Company.
Ans:AoA contains the rules and regualtions for internal administration of the company.
1)Powers,duties,rights and liabilities of directors,members
2)Board of directors
3)Transfer,Forfeiture,Surrender of shares
4)Rules of AGM
5)Winding of company
6)Borrowings of company

8. What is the difference between doctrine of indoor management and doctrine of constructive
notice.
Ans: Constructive Notice: AoA and MoA are given in the public domain at a price.This protects
the company from outsiders claiming they do not understand the business of the company.
Indoor Management:acc to this persons dealing with the company are entitled to presume that
internal requirements prescribed in the memorandum & Articles have been properly observed.

9. What are the differences between equity shares and preference shares?
Ans:1)Equity :Have voting rights
2)Get bonus shares
3)Get money later incase of liquidation
4)Priority payment is not there
5)Equity shares cannot be converted to preference

10. What are the important provisions relating to authentication, audit and adoption of accounts
of a Company as provided in the Companies Act, 2013?
Ans:Audit by outsider,increases confidence of user and reduces investor risk
Authentication

Mid Term Question Paper Pattern and other information

1. There would be six questions in all and students would be required to answer any four.
2. No questions from special contracts.
3. For Company Law only upto what has last been taught including time line question
4. Each question would carry five marks and total time allowed is 90 minutes
5. Students are expected to write specific and to the point answers and not lengthy &
sketchy answers
6. Suitable examples to explain the relevant provisions would add value to the answers.
7. As discussed in the session, 3/10 rule applies.
8. No Case/Caselets for the mid-term.

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Workbook on Business Law