GM06

Business Law and Corporate Governance

Assignment I

Assignment Code: 2010GM06B1 Last Date of Submission : 30th September 2010

Maximum Marks: 100
Attempt all the questions. All questions are compulsory and carry equal marks.

Section A
(a) Define free consent. What are the different flaws in consent? Explain
them with the help of important and leading cases?
(b) “In cases of Equal guilt, the position of the defendant is better than that of
the Plaintiff” Comment

2. (a) What are the various ways in which a contract may be discharged?10.2

(xb) What remedies are available to an aggrieved party on breach of a contract?

14.1

3. (a) Explain the nature of a contract of sale of goods and bring out clearly the
distinction between a sale and an agreement to sell.22.1
(b) Distinguish between condition and warranty. Explain the rule of caveat
emptor and state how far it is modified by implied conditions.24.1

4. What are the provisions of Sale of goods act in regard to the passing of property in
Ascertained goods, unascertained goods, Goods sold on approval or on sale or return.22.1
Section B

The Underwood Ltd. Agreed to sell to Burgh Castle Brick a condensing engine on Feb 19,2009. The engine
was affixed to the soil, in the premises of the Underwood .It needed to be detached before being dispatched
to Burgh by train to yarkmouth, a town in England. Certain parts of engine were sent on first On August
6th2009, while being loaded on to a railway track, the bed plate of engine broke.When the consignment
reached Burge Castle, they refused to accept it as the engine was damaged.

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 After going through the facts ,Answer the following questions-

(a) Whether the property had passed to the defendant at the time when the accident took place?

(b) Whether within the law on sales of goods act the seller is bound to do something to the goods to
put them in a deliverable state?

(c )As per your opinion what is the remedy the defendant was left with ?

GM06

Business Law and Corporate Governance

Assignment II

Assignment code: 2010GM06B2 Last Date of Submission : 15th November 2010

Maximum Marks: 100
Attempt all the questions. All the questions are compulsory and carry equal marks.

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 Section A

1 (a) Define negotiable instrument? Draw the specimen of three important Negotiable Instruments.

(b) What is meant by dishonor by non-acceptance or dishonor by non-payment?

(c ) What are the penalties prescribed in the Negotiable instrument Act in case of dishonor of a
cheque for insufficiency of funds in the account of the person issuing the cheque?

2. (a) Classify the companies on the basis of liability,On the basis of number of members and on the
basis of control.

(b) Define “Prospectus “. When a company not required to issue a prospectus? Also explain the
liabilities for mis-statement in the prospectus?

3. What do you mean by Winding up of a company? What are the different modes of winding up.

4. (a) Define Stakeholders theory applied in Corporate Governess And mention features of Sarbanes
Oxley Act 2002

(b) Explain the Satyam case as a failure of corporate governance system and compare it with Enron
case of USA .

Section B

Mr Wall,as the secretary of East Holyford Mining Co, signed a letter to its Bank,forwarding a resolution of the
board of directors. The resolution named three directors, and instructed the bank to pay cheque signed by any two of
them and countersigned by the secretary. Specimen signatures were attached. The instructions were entirely in
accordance with the company’s memorandum of article. However there had never been any proper appointment of
directors or a secretary by the company. Those who had formed the company had assumed these roles .Following
the letter,the bank had honoured the cheques in accordance with the instruction contained in the letter.

Please answer the questions below-

(a) Whether the company was bound by the cheques?

(b) Whether the bank be bound in exercise of ordinary care and precaution,to know whether or not that
company is actually carrying on transacting business or not.

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(c) In the light of this case explain the benefit of the doctrine of indoor management.

(d) Who will be asked to compensate the loss of the Bank

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