Mahakavi Devkota Campus

Exam – 2079
Level: B.B.A 4th Year
Subject: Business Law
Group A
Brief Answer Questions [10 X 1 = 10]
1. State two differences between common and private carrier.
2. Define the term caveat emptor.
3. Explain the agency of estoppel.
4. What do you mean by bailment?
5. Is indemnity a contingent contract. Illustrate.
6. What types of contracts are discharge by death of either party?
7. State any two features of contingent contracts.
8. When is an object and consideration treated as lawful?
9. Give two differences between fraud and misrepresentation.
10. Why minor is incapable?

Group B
Short Answer Questions [6 X 5 = 30]
11. Who is common carrier? Explain the rights and duties of common carrier.
12. No one can give what one has not. How does this principle apply in the case of sale of
goods? Discuss.
13. What do you understand by the term 'quasi contract? Explain the provisions prescribed by
the Nepalese law of contract in this respect.
14. The law protects minor’ persons, preserves their right and estates, excuses their laches
and assists them in their pleading; the judges are their counselors, the jury their servant
and law are their guardian. Comment the statement examining the legality of minor’s
agreements with exceptional cases where minor can be held liable for his contracts.
15. Delgatus non potest delegare. Comment and state the circumstances where an agent
delegates his authority with the difference between sub agent and substituted agent.
16. Discuss the various modes in which contract may be discharged.
 Group “C”
Comprehensive Answer Question [20 Marks]
17.
i. Ram entered into a contract for the sale of 100 bags of wheat out of 1000 bags lying in
his go down. Unknown to Ram, the entire stock was destroyed by fire. Ram declined to
deliver. State the legal position of Ram. What do you mean by contingent contracts?
What are the rules regarding its performance? Explain and state how it differs with a
wagering agreement. (2.5
marks)
ii. In a painting exhibition, a famous painting was offered for sale. A thief replaced the
painting with a 'Duplicate One. When the buyer came to know of the refused to pay for
the painting. What is the remedy available to buyer? Give reasons in support of your
answer. (2.5 marks)
18.
a.
i. A has a micro bus which is out of date according to transportation department but he sells
that bus to B and traffic police caught that bus. In that case who make mistake? Give
reasons. (2 marks)
ii. Ram and his wife entered into a lodge and booked a room for one night. When they
entered into the room, they could see a notice on the wall that the lodge owner will not be
responsible for any loss of the luggage of the customer. Ram lost his luggage. Answer the
following question in the given case. (3 marks)
a. If Ram could succeed to get compensation for the loss of his luggage.
b. When the lodge owner will not be liable to pay the compensation as per the
notice.
b. i.
a. In a conversation A says to B that he is willing to sell his land for Rs. 15 lakhs. When B
refuses the offer, C listening such intention accepts the same. However, A refuses to sell
the land to C. Whether A is bound to sell his land to C. (2.5 marks)
b. B lends his car to P for the safe custody for two months in his garage free of cost. After
one month, the garage is damaged but his car is left without care. When B came to bring
his car, he found the music system of the car lost. B sued P for loss. Can he recover the
loss against P. (2.5 marks)

ii.
a) Case (a): 'A' induced to 'B' to purchase a house stating that the house is built by No. 1
breaks with pillar system and using the equipment’s resisting earthquake of 7.5 rector. 'B'
 agreed to purchase that house for Rs. 1 Crore relying upon these features. After one year
of the contract, these features are not found in that house. Can B avoid the contract?
(2.5 marks)
a) Case (b): D offered to P to sell his Bike for Rs. 45,000 and accepted the offer by post on
the same day. On the next day, he sent a telegram withdrawing the acceptance which
reached D before the letter of acceptance. Is the revocation of acceptance valid? (2.5
marks)