SPRING-2018

Get solved assignments at nominal price.

Mail us at: subjects4u@gmail.com or contact at

08894344452, 8219081362
Master of Business Administration- MBA Semester 3

MBA302 - Legal Aspects of Business

Q1. What is fiduciary relationship in a contract of guarantee? Explain the kinds of guarantees.

Answer. Special relationship of trust and confidence which, in the words justice Benjamin Nathan Cardozo
(1870-1938; US Supreme court judge from 1932 to 1938) is "something more than the ordinary honor of
the marketplace, the very punctilio of honesty and forthrightness." Fiduciary relationships exist between
an agent and principal, testator and trustee, testator and executor, ward and guardian, customer and
bank, client and attorney, patient and doctor, partner and partner, stockholders (shareholders) and

Q2. i) Do you think contract with a minor is valid? Narrate with the help of the facts and judgement in
the case: Mohori Bibee v. Dharmodas Ghose.

ii) Explain the rules and remedies for discharge of contract by breach

Answer. According to Section 2(B) of the Indian Contract Act, 1872, when the person to whom the
proposal is made signifies his assent thereto, the proposal is said to be accepted. A proposal, when
accepted, becomes a promise.

Judgement

On July 20, 1895, the respondent, Dharmodas Ghose, executed a mortgage in favour of Brahmo Dutt, a
money-lender carrying on business at Calcutta and elsewhere, to secure the repayment of Rs. 20,000 at 12

Q3. I.) Narrate the facts and judgment in the case Howell vs. Coupland.

ii) Who is an unpaid seller? What are the rights enjoyed by an unpaid seller under the extant provisions
of law?

Answer. Case study: Howell vs. Coupland

The “principle” in Howell v Coupland

1. It is generally thought that section 7 of the Act was formulated in reliance on the decision of the CA in
Howell v Coupland (1876) 1 QBD 258.D agreed to sell 200 tons of potatoes to be grown on a particular
field. The crop failed so that the defendant was able to deliver only 80 tons. It was held that he was
relieved of the obligation to deliver the further 120 tons by reason of impossibility of performance. The CA
upheld the judge’s decision holding that:

The true ground on which the contract should be interpreted is that by the simple and obvious
construction of the agreement both parties understood and agreed, that there should be a condition
implied that before the time for the performance of the contract the potatoes should be, or should have
been in existence, and should still be existing when the time came for performance. It was not an absolute
contract of delivery under all circumstances, but a contract to deliver so many potatoes, of a particular

SET - 2

Q1. The Banking Regulation Act, 1949, provides various methods of regulation of the banking business.
Elaborate the key areas of regulation.

Answer. Regulation of business

The Banking Regulation Act, 1949 is legislation in India that regulates all banking firms in India. Initially, the
law was applicable only to banking companies. But, 1965 it was amended to make it applicable to
cooperative banks and to introduce other changes.

As per Section 5(c) of the Banking Regulation Act, 1949 a "Banking Company" means any company which
transacts the business of banking in India.

Explanation: Any company which is engaged in the manufacture of goods or carries on any trade and
which accepts the deposits of money from public merely for the purpose of financing its business as such

Q2. Explain the nature and scope of complaints under the Consumer Protection Act?

Answer. Consumer Protection Act, 1986 is an Act of the Parliament of India enacted in 1986 to protect the
interests of consumers in India. It makes provision for the establishment of consumer councils and other
authorities for the settlement of consumers' disputes and for matters connected therewith also.

Consumer Protection Councils are established at the national, state and district level to increase consumer
awareness.
Q3. a) Differentiate between a holder and a holder in due course.

b) Explain the privileges enjoyed by a holder in due course

Answer. Holder: Holder is the person who is entitled in his own name to the possession of a negotiable
instrument.

 Normally a payee or endorsee is a holder.

 Holder may be or may not be with possession of the Instrument.
 If the payee or endorsee dies, then the legal heir is the holder.
 If there is a forged endorsement then, last endorsee is the holder.

SPRING-2018
Get solved assignments at nominal price.
Mail us at: subjects4u@gmail.com or contact at

08894344452, 8219081362