Business Laws (Paper-2) - September 2024 | Mock Tests & Past Year Papers for CA Foundation PDF Download

 Page 1


 
 
QUESTIONS 
 
Indian Regulatory Framework 
1. What is Law and what is the process of making a law?  
The Indian Contract Act, 1872 
2. Explain the type of contracts in the following agreements under the 
Indian Contract Act, 1872: 
(i)  Rahul contracts with Bhanu (owner of the factory) for the supply of 
10 tons of sugar, but before the supply is effected, the factory 
catches fire and everything is destroyed. 
(ii)  A coolie in uniform picks up the luggage of Rohan to be carried 
out of the railway station without being asked by Rohan and 
Rohan allows him to do so.  
(iii)  Obligation of finder of lost goods to return them to the true 
owner. 
3. Amit, a minor was studying in a college. On 1st July, 2023 he took a loan 
of ` 1,00,000 from Bhavesh for payment of his college fees and to 
purchase books and agreed to repay by 31st December, 2023.  Amit 
possesses assets worth ` 9 lakhs.  On due date, Amit fails to pay back 
the loan to Bhavesh.  Bhavesh now wants to recover the loan from Amit 
out of his (Amit’s) assets.  Referring to the provisions of Indian Contract 
Act, 1872 decide whether Bhavesh would succeed.      
4. Mr. Shyam aged 58 years, was employed in a government department. 
He was going to retire after two years. Mr. Dev made a proposal to  
PAPER – 2: 
BUSINESS LAWS 
Page 2


 
 
QUESTIONS 
 
Indian Regulatory Framework 
1. What is Law and what is the process of making a law?  
The Indian Contract Act, 1872 
2. Explain the type of contracts in the following agreements under the 
Indian Contract Act, 1872: 
(i)  Rahul contracts with Bhanu (owner of the factory) for the supply of 
10 tons of sugar, but before the supply is effected, the factory 
catches fire and everything is destroyed. 
(ii)  A coolie in uniform picks up the luggage of Rohan to be carried 
out of the railway station without being asked by Rohan and 
Rohan allows him to do so.  
(iii)  Obligation of finder of lost goods to return them to the true 
owner. 
3. Amit, a minor was studying in a college. On 1st July, 2023 he took a loan 
of ` 1,00,000 from Bhavesh for payment of his college fees and to 
purchase books and agreed to repay by 31st December, 2023.  Amit 
possesses assets worth ` 9 lakhs.  On due date, Amit fails to pay back 
the loan to Bhavesh.  Bhavesh now wants to recover the loan from Amit 
out of his (Amit’s) assets.  Referring to the provisions of Indian Contract 
Act, 1872 decide whether Bhavesh would succeed.      
4. Mr. Shyam aged 58 years, was employed in a government department. 
He was going to retire after two years. Mr. Dev made a proposal to  
PAPER – 2: 
BUSINESS LAWS 
 
FOUNDATION EXAMINATION 
 
 
2 
 
SEPTEMBER 2024 EXAMINATION 
 
REVISION TEST PAPER 
Mr. Shyam, to apply for voluntary retirement from his post so that  
Mr. Dev can be appointed in his place. Mr. Dev offered a sum of ` 10 
Lakhs as consideration to Mr. Shyam to induce him to retire. 
Mr. Shyam refused at first instance but when he evaluated the amount 
offered as consideration is just double of his cumulative remuneration to 
be received during the tenure of two years of employment, he agreed to 
receive the consideration and accepted the above agreement to receive 
money to retire from his office.  
Whether the above agreement is valid? Explain with reference to 
provision of the Indian Contract Act, 1872? 
5. What will be rights with the promisor in following cases under the Indian 
Contract Act, 1872? Explain with reasons: 
(a) Sunil promised to bring back Jatin to life again. 
(b) Aman agreed to sell 50 kgs of apples to Raman. The loaded truck 
left for delivery on 15
th
 March but due to riots in between reached 
Raman on 19
th
 March due to which the apples were rotten.  
(c) An artist promised to paint on the fixed date for a fixed amount of 
remuneration but met with an accident and lost his both hands. 
(d) Abhishek entered into contract of import of toys from China. But 
due to disturbance in the relation of both the countries, the 
imports from China were banned. 
6. Seema was running a boutique in New Delhi. She has to deliver some 
cloth to her friend Kiran who was putting up an exhibition in Mumbai. 
Seema delivered the sewing machine and some cloth to a railway 
company to be delivered at a place where the exhibition was to be held. 
Seema expected to earn an exceptional profit from the sales made at 
this exhibition however she did not bring this fact to the notice of the 
railway’s authorities. The goods were delivered to the place after the 
conclusion of the exhibition. On account of such breach of contract by 
railways authorities, can Seema recover the loss of profits under the 
Indian Contract Act, 1872? 
7. Explain any five circumstances under which contracts need not be 
performed with the consent of both the parties. 
Page 3


 
 
QUESTIONS 
 
Indian Regulatory Framework 
1. What is Law and what is the process of making a law?  
The Indian Contract Act, 1872 
2. Explain the type of contracts in the following agreements under the 
Indian Contract Act, 1872: 
(i)  Rahul contracts with Bhanu (owner of the factory) for the supply of 
10 tons of sugar, but before the supply is effected, the factory 
catches fire and everything is destroyed. 
(ii)  A coolie in uniform picks up the luggage of Rohan to be carried 
out of the railway station without being asked by Rohan and 
Rohan allows him to do so.  
(iii)  Obligation of finder of lost goods to return them to the true 
owner. 
3. Amit, a minor was studying in a college. On 1st July, 2023 he took a loan 
of ` 1,00,000 from Bhavesh for payment of his college fees and to 
purchase books and agreed to repay by 31st December, 2023.  Amit 
possesses assets worth ` 9 lakhs.  On due date, Amit fails to pay back 
the loan to Bhavesh.  Bhavesh now wants to recover the loan from Amit 
out of his (Amit’s) assets.  Referring to the provisions of Indian Contract 
Act, 1872 decide whether Bhavesh would succeed.      
4. Mr. Shyam aged 58 years, was employed in a government department. 
He was going to retire after two years. Mr. Dev made a proposal to  
PAPER – 2: 
BUSINESS LAWS 
 
FOUNDATION EXAMINATION 
 
 
2 
 
SEPTEMBER 2024 EXAMINATION 
 
REVISION TEST PAPER 
Mr. Shyam, to apply for voluntary retirement from his post so that  
Mr. Dev can be appointed in his place. Mr. Dev offered a sum of ` 10 
Lakhs as consideration to Mr. Shyam to induce him to retire. 
Mr. Shyam refused at first instance but when he evaluated the amount 
offered as consideration is just double of his cumulative remuneration to 
be received during the tenure of two years of employment, he agreed to 
receive the consideration and accepted the above agreement to receive 
money to retire from his office.  
Whether the above agreement is valid? Explain with reference to 
provision of the Indian Contract Act, 1872? 
5. What will be rights with the promisor in following cases under the Indian 
Contract Act, 1872? Explain with reasons: 
(a) Sunil promised to bring back Jatin to life again. 
(b) Aman agreed to sell 50 kgs of apples to Raman. The loaded truck 
left for delivery on 15
th
 March but due to riots in between reached 
Raman on 19
th
 March due to which the apples were rotten.  
(c) An artist promised to paint on the fixed date for a fixed amount of 
remuneration but met with an accident and lost his both hands. 
(d) Abhishek entered into contract of import of toys from China. But 
due to disturbance in the relation of both the countries, the 
imports from China were banned. 
6. Seema was running a boutique in New Delhi. She has to deliver some 
cloth to her friend Kiran who was putting up an exhibition in Mumbai. 
Seema delivered the sewing machine and some cloth to a railway 
company to be delivered at a place where the exhibition was to be held. 
Seema expected to earn an exceptional profit from the sales made at 
this exhibition however she did not bring this fact to the notice of the 
railway’s authorities. The goods were delivered to the place after the 
conclusion of the exhibition. On account of such breach of contract by 
railways authorities, can Seema recover the loss of profits under the 
Indian Contract Act, 1872? 
7. Explain any five circumstances under which contracts need not be 
performed with the consent of both the parties. 
 
BUSINESS LAWS 
 
 
3 
 
SEPTEMBER 2024 EXAMINATION 
 
REVISION TEST PAPER 
8. ‘Sooraj’ guarantees ‘Vikas’ for the transactions to be done between 
‘Vikas’ & ‘Nikhil’ during the month of March 2023. ‘Vikas’ supplied 
goods of ` 30,000 on 01.03.2023 and of ` 20,000 on 03.03.2023 to 
‘Nikhil’. On 05.03.2023, ‘Sooraj’ died in a road accident. On 10.03.2023, 
being ignorant of the death of ‘Sooraj’, ‘Vikas’ further supplied goods of 
` 40,000. On default in payment by ‘Nikhil’ on due date, ‘Vikas’ sued 
legal heirs of ‘Sooraj’ for recovery of ` 90,000. Describe, whether legal 
heirs of ‘Sooraj’ are liable to pay ` 90,000 under the provisions of Indian 
Contract Act, 1872. 
 What would be your answer, if the estate of ‘Sooraj’ is worth ` 45,000 
only?  
9. Mr. Stefen owns a chicken farm near Gurugram, where he breeds them 
and sells eggs and live chicken to retail shops in Gurugram.  
Mr. Flemming also owns a similar farm near Gurugram, doing the same 
business. Mr. Flemming had to go back to his native place in Australia 
for one year. He needed money for travel, so he had pledged his farm to 
Mr. Stefen for one year and received a deposit of ` 25 lakhs and went 
away. At that point of time, the stock of live birds was 100,000 and eggs 
10,000. The condition was that when Flemming returns, he will repay the 
deposit and take possession of his farm with live birds and eggs. 
 After one year Flemming came back and returned the deposit. At that 
time there were 109,000 live birds (increase is due to hatching of eggs 
out of 10,000 eggs he had left), and 15,000 eggs. 
 Mr. Stefen agreed to return 100,000 live birds and 10,000 eggs only. 
 State the duties of Mr. Stefen as Pawnee and advise Mr. Flemming about 
his rights in the given case. 
The Sale of Goods Act, 1930 
10. AB Cloth House, a firm dealing with the wholesale and retail buying and 
selling of various kinds of clothes, customized as per the requirement of 
the customers. They dealt with Silk, Organdie, cotton, khadi, chiffon and 
many other different varieties of cloth. 
Mrs. Reema, a customer, came to the shop and asked for a specific type 
of cloth suitable for making a suit for her daughter’s birthday. She 
Page 4


 
 
QUESTIONS 
 
Indian Regulatory Framework 
1. What is Law and what is the process of making a law?  
The Indian Contract Act, 1872 
2. Explain the type of contracts in the following agreements under the 
Indian Contract Act, 1872: 
(i)  Rahul contracts with Bhanu (owner of the factory) for the supply of 
10 tons of sugar, but before the supply is effected, the factory 
catches fire and everything is destroyed. 
(ii)  A coolie in uniform picks up the luggage of Rohan to be carried 
out of the railway station without being asked by Rohan and 
Rohan allows him to do so.  
(iii)  Obligation of finder of lost goods to return them to the true 
owner. 
3. Amit, a minor was studying in a college. On 1st July, 2023 he took a loan 
of ` 1,00,000 from Bhavesh for payment of his college fees and to 
purchase books and agreed to repay by 31st December, 2023.  Amit 
possesses assets worth ` 9 lakhs.  On due date, Amit fails to pay back 
the loan to Bhavesh.  Bhavesh now wants to recover the loan from Amit 
out of his (Amit’s) assets.  Referring to the provisions of Indian Contract 
Act, 1872 decide whether Bhavesh would succeed.      
4. Mr. Shyam aged 58 years, was employed in a government department. 
He was going to retire after two years. Mr. Dev made a proposal to  
PAPER – 2: 
BUSINESS LAWS 
 
FOUNDATION EXAMINATION 
 
 
2 
 
SEPTEMBER 2024 EXAMINATION 
 
REVISION TEST PAPER 
Mr. Shyam, to apply for voluntary retirement from his post so that  
Mr. Dev can be appointed in his place. Mr. Dev offered a sum of ` 10 
Lakhs as consideration to Mr. Shyam to induce him to retire. 
Mr. Shyam refused at first instance but when he evaluated the amount 
offered as consideration is just double of his cumulative remuneration to 
be received during the tenure of two years of employment, he agreed to 
receive the consideration and accepted the above agreement to receive 
money to retire from his office.  
Whether the above agreement is valid? Explain with reference to 
provision of the Indian Contract Act, 1872? 
5. What will be rights with the promisor in following cases under the Indian 
Contract Act, 1872? Explain with reasons: 
(a) Sunil promised to bring back Jatin to life again. 
(b) Aman agreed to sell 50 kgs of apples to Raman. The loaded truck 
left for delivery on 15
th
 March but due to riots in between reached 
Raman on 19
th
 March due to which the apples were rotten.  
(c) An artist promised to paint on the fixed date for a fixed amount of 
remuneration but met with an accident and lost his both hands. 
(d) Abhishek entered into contract of import of toys from China. But 
due to disturbance in the relation of both the countries, the 
imports from China were banned. 
6. Seema was running a boutique in New Delhi. She has to deliver some 
cloth to her friend Kiran who was putting up an exhibition in Mumbai. 
Seema delivered the sewing machine and some cloth to a railway 
company to be delivered at a place where the exhibition was to be held. 
Seema expected to earn an exceptional profit from the sales made at 
this exhibition however she did not bring this fact to the notice of the 
railway’s authorities. The goods were delivered to the place after the 
conclusion of the exhibition. On account of such breach of contract by 
railways authorities, can Seema recover the loss of profits under the 
Indian Contract Act, 1872? 
7. Explain any five circumstances under which contracts need not be 
performed with the consent of both the parties. 
 
BUSINESS LAWS 
 
 
3 
 
SEPTEMBER 2024 EXAMINATION 
 
REVISION TEST PAPER 
8. ‘Sooraj’ guarantees ‘Vikas’ for the transactions to be done between 
‘Vikas’ & ‘Nikhil’ during the month of March 2023. ‘Vikas’ supplied 
goods of ` 30,000 on 01.03.2023 and of ` 20,000 on 03.03.2023 to 
‘Nikhil’. On 05.03.2023, ‘Sooraj’ died in a road accident. On 10.03.2023, 
being ignorant of the death of ‘Sooraj’, ‘Vikas’ further supplied goods of 
` 40,000. On default in payment by ‘Nikhil’ on due date, ‘Vikas’ sued 
legal heirs of ‘Sooraj’ for recovery of ` 90,000. Describe, whether legal 
heirs of ‘Sooraj’ are liable to pay ` 90,000 under the provisions of Indian 
Contract Act, 1872. 
 What would be your answer, if the estate of ‘Sooraj’ is worth ` 45,000 
only?  
9. Mr. Stefen owns a chicken farm near Gurugram, where he breeds them 
and sells eggs and live chicken to retail shops in Gurugram.  
Mr. Flemming also owns a similar farm near Gurugram, doing the same 
business. Mr. Flemming had to go back to his native place in Australia 
for one year. He needed money for travel, so he had pledged his farm to 
Mr. Stefen for one year and received a deposit of ` 25 lakhs and went 
away. At that point of time, the stock of live birds was 100,000 and eggs 
10,000. The condition was that when Flemming returns, he will repay the 
deposit and take possession of his farm with live birds and eggs. 
 After one year Flemming came back and returned the deposit. At that 
time there were 109,000 live birds (increase is due to hatching of eggs 
out of 10,000 eggs he had left), and 15,000 eggs. 
 Mr. Stefen agreed to return 100,000 live birds and 10,000 eggs only. 
 State the duties of Mr. Stefen as Pawnee and advise Mr. Flemming about 
his rights in the given case. 
The Sale of Goods Act, 1930 
10. AB Cloth House, a firm dealing with the wholesale and retail buying and 
selling of various kinds of clothes, customized as per the requirement of 
the customers. They dealt with Silk, Organdie, cotton, khadi, chiffon and 
many other different varieties of cloth. 
Mrs. Reema, a customer, came to the shop and asked for a specific type 
of cloth suitable for making a suit for her daughter’s birthday. She 
 
FOUNDATION EXAMINATION 
 
 
4 
 
SEPTEMBER 2024 EXAMINATION 
 
REVISION TEST PAPER 
specifically mentioned that she required cotton silk cloth which is best 
suited for the purpose. 
The Shop owner agreed and arranged the cloth pieces cut into as per 
the buyers’ requirements. 
When Reema went to the tailor to get the suit stitched, she found that 
seller has supplied her cotton organdie material, cloth was not suitable 
for the said purpose. It was heavily starched and not suitable for making 
the suit that Reema desired for. The Tailor asked Reema to return the 
cotton organdie cloth as it would not meet his requirements. 
The Shop owner refused to return the cloth on the plea that it was cut to 
specific requirements of Mrs. Reema and hence could not be resold. 
With reference to the doctrine of "Caveat Emptor' explain the duty of 
the buyer as well as the seller. Also explain whether Mrs. Reema would 
be able to get the money back or the right kind of cloth as per the 
requirement? 
11. Samuel purchased a Television set from Arun, the owner of Gada 
Electronics, on the condition that for the first three days he will check its 
quality and if satisfied he will pay for that otherwise he will return the 
Television set. On the second day, the Television set was spoiled due to 
an earthquake. Arun demands the price of Television set from Samuel. 
Whether Samuel is liable to pay the price under the Sale of Goods Act, 
1930? Who will ultimately bear the loss? 
12. Suraj sold his car to Sohan for ` 1,75,000. After inspection and 
satisfaction, Sohan paid ` 75,000 and took possession of the car and 
promised to pay the remaining amount within a month.  Later on, Sohan 
refuses to give the remaining amount on the grounds that the car was 
not in good condition.  Advise Suraj as to what remedy is available to 
him against Sohan under the Sale of Goods Act, 1930.   
13. Akash purchased 100 Kgs of wheat from Bhaskar at `80 per kg. Bhaskar 
says that wheat is in his warehouse in the custody of Kishore, the 
warehouse keeper. Kishore confirmed to Akash that he can take the 
delivery of wheat from him and till then he is holding wheat on Akash’s 
behalf. Before Akash picks the goods from warehouse, the whole wheat 
in the warehouse has flowed in flood. Now Akash wants his price on the 
Page 5


 
 
QUESTIONS 
 
Indian Regulatory Framework 
1. What is Law and what is the process of making a law?  
The Indian Contract Act, 1872 
2. Explain the type of contracts in the following agreements under the 
Indian Contract Act, 1872: 
(i)  Rahul contracts with Bhanu (owner of the factory) for the supply of 
10 tons of sugar, but before the supply is effected, the factory 
catches fire and everything is destroyed. 
(ii)  A coolie in uniform picks up the luggage of Rohan to be carried 
out of the railway station without being asked by Rohan and 
Rohan allows him to do so.  
(iii)  Obligation of finder of lost goods to return them to the true 
owner. 
3. Amit, a minor was studying in a college. On 1st July, 2023 he took a loan 
of ` 1,00,000 from Bhavesh for payment of his college fees and to 
purchase books and agreed to repay by 31st December, 2023.  Amit 
possesses assets worth ` 9 lakhs.  On due date, Amit fails to pay back 
the loan to Bhavesh.  Bhavesh now wants to recover the loan from Amit 
out of his (Amit’s) assets.  Referring to the provisions of Indian Contract 
Act, 1872 decide whether Bhavesh would succeed.      
4. Mr. Shyam aged 58 years, was employed in a government department. 
He was going to retire after two years. Mr. Dev made a proposal to  
PAPER – 2: 
BUSINESS LAWS 
 
FOUNDATION EXAMINATION 
 
 
2 
 
SEPTEMBER 2024 EXAMINATION 
 
REVISION TEST PAPER 
Mr. Shyam, to apply for voluntary retirement from his post so that  
Mr. Dev can be appointed in his place. Mr. Dev offered a sum of ` 10 
Lakhs as consideration to Mr. Shyam to induce him to retire. 
Mr. Shyam refused at first instance but when he evaluated the amount 
offered as consideration is just double of his cumulative remuneration to 
be received during the tenure of two years of employment, he agreed to 
receive the consideration and accepted the above agreement to receive 
money to retire from his office.  
Whether the above agreement is valid? Explain with reference to 
provision of the Indian Contract Act, 1872? 
5. What will be rights with the promisor in following cases under the Indian 
Contract Act, 1872? Explain with reasons: 
(a) Sunil promised to bring back Jatin to life again. 
(b) Aman agreed to sell 50 kgs of apples to Raman. The loaded truck 
left for delivery on 15
th
 March but due to riots in between reached 
Raman on 19
th
 March due to which the apples were rotten.  
(c) An artist promised to paint on the fixed date for a fixed amount of 
remuneration but met with an accident and lost his both hands. 
(d) Abhishek entered into contract of import of toys from China. But 
due to disturbance in the relation of both the countries, the 
imports from China were banned. 
6. Seema was running a boutique in New Delhi. She has to deliver some 
cloth to her friend Kiran who was putting up an exhibition in Mumbai. 
Seema delivered the sewing machine and some cloth to a railway 
company to be delivered at a place where the exhibition was to be held. 
Seema expected to earn an exceptional profit from the sales made at 
this exhibition however she did not bring this fact to the notice of the 
railway’s authorities. The goods were delivered to the place after the 
conclusion of the exhibition. On account of such breach of contract by 
railways authorities, can Seema recover the loss of profits under the 
Indian Contract Act, 1872? 
7. Explain any five circumstances under which contracts need not be 
performed with the consent of both the parties. 
 
BUSINESS LAWS 
 
 
3 
 
SEPTEMBER 2024 EXAMINATION 
 
REVISION TEST PAPER 
8. ‘Sooraj’ guarantees ‘Vikas’ for the transactions to be done between 
‘Vikas’ & ‘Nikhil’ during the month of March 2023. ‘Vikas’ supplied 
goods of ` 30,000 on 01.03.2023 and of ` 20,000 on 03.03.2023 to 
‘Nikhil’. On 05.03.2023, ‘Sooraj’ died in a road accident. On 10.03.2023, 
being ignorant of the death of ‘Sooraj’, ‘Vikas’ further supplied goods of 
` 40,000. On default in payment by ‘Nikhil’ on due date, ‘Vikas’ sued 
legal heirs of ‘Sooraj’ for recovery of ` 90,000. Describe, whether legal 
heirs of ‘Sooraj’ are liable to pay ` 90,000 under the provisions of Indian 
Contract Act, 1872. 
 What would be your answer, if the estate of ‘Sooraj’ is worth ` 45,000 
only?  
9. Mr. Stefen owns a chicken farm near Gurugram, where he breeds them 
and sells eggs and live chicken to retail shops in Gurugram.  
Mr. Flemming also owns a similar farm near Gurugram, doing the same 
business. Mr. Flemming had to go back to his native place in Australia 
for one year. He needed money for travel, so he had pledged his farm to 
Mr. Stefen for one year and received a deposit of ` 25 lakhs and went 
away. At that point of time, the stock of live birds was 100,000 and eggs 
10,000. The condition was that when Flemming returns, he will repay the 
deposit and take possession of his farm with live birds and eggs. 
 After one year Flemming came back and returned the deposit. At that 
time there were 109,000 live birds (increase is due to hatching of eggs 
out of 10,000 eggs he had left), and 15,000 eggs. 
 Mr. Stefen agreed to return 100,000 live birds and 10,000 eggs only. 
 State the duties of Mr. Stefen as Pawnee and advise Mr. Flemming about 
his rights in the given case. 
The Sale of Goods Act, 1930 
10. AB Cloth House, a firm dealing with the wholesale and retail buying and 
selling of various kinds of clothes, customized as per the requirement of 
the customers. They dealt with Silk, Organdie, cotton, khadi, chiffon and 
many other different varieties of cloth. 
Mrs. Reema, a customer, came to the shop and asked for a specific type 
of cloth suitable for making a suit for her daughter’s birthday. She 
 
FOUNDATION EXAMINATION 
 
 
4 
 
SEPTEMBER 2024 EXAMINATION 
 
REVISION TEST PAPER 
specifically mentioned that she required cotton silk cloth which is best 
suited for the purpose. 
The Shop owner agreed and arranged the cloth pieces cut into as per 
the buyers’ requirements. 
When Reema went to the tailor to get the suit stitched, she found that 
seller has supplied her cotton organdie material, cloth was not suitable 
for the said purpose. It was heavily starched and not suitable for making 
the suit that Reema desired for. The Tailor asked Reema to return the 
cotton organdie cloth as it would not meet his requirements. 
The Shop owner refused to return the cloth on the plea that it was cut to 
specific requirements of Mrs. Reema and hence could not be resold. 
With reference to the doctrine of "Caveat Emptor' explain the duty of 
the buyer as well as the seller. Also explain whether Mrs. Reema would 
be able to get the money back or the right kind of cloth as per the 
requirement? 
11. Samuel purchased a Television set from Arun, the owner of Gada 
Electronics, on the condition that for the first three days he will check its 
quality and if satisfied he will pay for that otherwise he will return the 
Television set. On the second day, the Television set was spoiled due to 
an earthquake. Arun demands the price of Television set from Samuel. 
Whether Samuel is liable to pay the price under the Sale of Goods Act, 
1930? Who will ultimately bear the loss? 
12. Suraj sold his car to Sohan for ` 1,75,000. After inspection and 
satisfaction, Sohan paid ` 75,000 and took possession of the car and 
promised to pay the remaining amount within a month.  Later on, Sohan 
refuses to give the remaining amount on the grounds that the car was 
not in good condition.  Advise Suraj as to what remedy is available to 
him against Sohan under the Sale of Goods Act, 1930.   
13. Akash purchased 100 Kgs of wheat from Bhaskar at `80 per kg. Bhaskar 
says that wheat is in his warehouse in the custody of Kishore, the 
warehouse keeper. Kishore confirmed to Akash that he can take the 
delivery of wheat from him and till then he is holding wheat on Akash’s 
behalf. Before Akash picks the goods from warehouse, the whole wheat 
in the warehouse has flowed in flood. Now Akash wants his price on the 
 
BUSINESS LAWS 
 
 
5 
 
SEPTEMBER 2024 EXAMINATION 
 
REVISION TEST PAPER 
contention that no delivery has been done by seller. Whether Akash is 
right with his views under the Sale of Goods Act, 1930. 
The Indian Partnership Act, 1932 
14. Sahil, Amit and Kunal were partners in a firm. The firm is a dealer in 
office furniture. They have regular dealings with M/s AB and Co. for the 
supply of furniture for their business. On 30
th
 June 2023, one of the 
partners, Mr. Kunal died in a road accident. The firm ordered M/s AB and 
Co. to supply the furniture for their business on 25
th
 May 2023, when 
Kunal was also alive. 
Now Sahil and Amit continue the business in the firm’s name after 
Kunal’s death. The firm did not give any notice about Kunal’s death to 
the public or the persons dealing with the firm. M/s AB and Co. 
delivered the furniture to the firm on 25
th
 July 2023. The fact about 
Kunal’s death was known to them at the time of delivery of goods. 
Afterwards the firm became insolvent and failed to pay the price of 
furniture to M/s AB and Co. Now M/s AB and Co. has filed a case against 
the firm for recovery of the price of furniture. With reference to the 
provisions of Indian Partnership Act, 1932, explain whether Kunal’s 
private estate is also liable for the price of furniture purchased by the 
firm? 
15. State whether the following are partnerships under the Indian 
Partnership Act, 1932:  
(i)  A and B buy commodity X and agree to sell the commodity with 
sharing the profits equally. 
(ii)  Two firms each having 12 partners combine by an agreement into 
one firm.  
(iii)  A and B, co-owners, agree to conduct the business in common for 
profit.  
(iv)  Some individuals form an association to which each individual 
contributes ` 5000 annually. The objective of the association is to 
produce clothes and distribute the clothes free to the war widows.  
(v)  A and B, co-owners share between themselves the rent derived 
from a piece of land.