CSS Mercantile Law 2011



Q.1. Select the best option/answer and fill in the appropriate box on the Answer Sheet. (1 x 20=20)

(i) Which of the following contracts is voidable, where:

(a) A party is induced by undue influence

(b) One party under mistake of fact

(c) Both parties under mistake of fact

(d) None of these

(ii) In case of wilful wrong a sub-agent is responsible to:

(a) Agent

(b) Principal

(c) Sole agent

(d) None of these

(iii) A tender notice amounts to:

(a) Proposal

(b) Offer

(c) Invitation

(d) None of these

(iv) A contract to sell the property by a minor through guardian is:

(a) Void

(b) Voidable

(c) Valid

(d) None of these

(v) How many parties are there in a contract of guarantee?

(a) 5

(b) 4

(c) 3

(d) None of these

(vi) Which of the following is eligible to become director of a company?

(a) Minor

(b) Un-discharged insolvent

(c) Person representing a creditor

(d) None of these

(vii) Extra-ordinary general meeting of a company includes:

(a) Annual general meeting

(b) Statutory meeting

(c) Plenary meeting

(d) None of these

(viii) Petition for winding up of a company may be moved by:

(a) Auditor General

(b) Advocate General

(c) Company Judge

(d) None of these

(ix) The Companies Act repealed by the Companies Ordinance, 1984 pertained to the year:

(a) 1930

(b) 1933

(c) 1935

(d) None of these

(x) Penalty for improper use of word “Limited” is:

(a) Fine

(b) Imprisonment

(c) Imprisonment with fine

(d) None of these

(xi) In which of the following an arbitration agreement is not discharged by the death of party:

(a) Voluntary

(b) Statutory

(c) Contractual

(d) None of these

(xii) The assent of arbitrator appointed by court is:

(a) Optional

(b) Not required

(c) Necessary

(d) None of these

(xiii) The number of Arbitration Act, 1940 is:

(a) XI

(b) XV

(c) XX

(d) None of these

(xiv) Nature of misconduct justifying removal of arbitrator should be:

(a) Legal

(b) Moral

(c) Procedural

(d) None of these

(xv) Suit by unregistered firm against third party is:

(a) Maintainable

(b) Barred

(c) Permissible

(d) None of these

(xvi) The firm and firm-name are:

(a) Synonymous

(b) Interchangeable

(c) Different terms

(d) None of these

(xvii) The partnership is:

(a) Juristic person

(b) Juridical person

(c) Natural person

(d) None of these

(xviii) The maker of a promissory note is liable as:

(a) Principal debtor

(b) Principal Creditor

(c) Undischarged surety

(d) None of these

(xix) Valid presentation of a cheque is within six months from:

(a) The date it is drawn

(b) Date of last correction

(c) Date of delivery

(d) None of these

(xx) An exception to “No one can transfer what he does not have” is:

(a) Registered gift

(b) Will

(c) Estoppel by owner

(d) None of these


Q.2. Discuss the statutory liability both civil and criminal which arises as a result of untrue statement in a prospectus. (20)

Q.3. What are the modes in which maker, acceptor or endorser of a negotiable instrument is discharged? (20)

Q.4. How will you distinguish a mistake of fact from a mistake of law? Discuss their legal effect on contract. (20)

Q.5. What is meant by expression ‘passing of property’? Discuss the law which governs the transfer of property as between the seller and a buyer. (20)

Q.6. Discuss the scope and extent of powers of a judicial authority to stay legal proceedings where there is an arbitration agreement. Elaborate as to what amounts to “taking any step in the proceeding”. (20)

Q.7. Write a comprehensive note on the relations of partners to one another. (20)

Q.8. Write short notes on any TWO of the following: (10 + 10 = 20)

(a) Insurance Appellate Tribunal.

(b) Fiduciary Relationship

(c) Goodwill