KSLU Contract II Past Questions & Exam Topics

KSLU Contract II Past Questions & Exam Topics

To crack the KSLU exam for Contract II, analyzing past trends is crucial. Below is a unit-wise breakdown of theory and problem questions compiled from KSLU semester papers.

How to read the map:

  • ⭐⭐⭐ : Asked 5+ times — Must Cover
  • ⭐⭐ : Asked 3–4 times — High Priority
  • ⭐ : Asked 1–2 times
  • [16M] / [10M] : Essay marks
  • [6M] / [SN] : Short notes / brief topics
  • [Prob] : Solved problem fact patterns

📅 Unit 1 — Contract of Indemnity & Contract of Guarantee

Topic-wise Questions

# Topic Questions & Frequency
1.1 Contract of Indemnity — definition, nature & scope; rights of indemnity holder; commencement of indemnifier’s liability [16M] Define indemnity; rights/duties of indemnity holder — Jan2012(100), Jun2013(100, + Indian v English law), Dec2013(100), Jun2017(100), Dec2019(100); [10M] Jun2019(80), Nov2022(80), Mar2022(80), Feb2025(80, + features), Jun2025(80, when sued), Apr2023(80, “liability & duties of insurer”); [SN] Contract of Indemnity / Rights of indemnity holder — Dec2012(100), Jun2016(100), Dec2016(100), Dec2017(100), Jun2018(100), Jun2019(100), Dec2020(100), Apr2022(100), Jun2015(100) ⭐⭐⭐
1.2 Difference between Contract of Indemnity and Contract of Guarantee [16M] Define both & discuss differences — Jun2011(100), Dec2014(100), Jun2014(100), Dec2018(100); [10M] Aug2024(80), Jan2026(80); [SN] Distinction between Indemnity & Guarantee — Jun2013(100) ⭐⭐⭐
1.3 Contract of Guarantee — definition, nature & scope, essential features; tri-partite nature [16M] Define guarantee / essential features — Dec2016(100), Apr2022(100); “Is guarantee a tri-partite contract?” — Nov2022(100); effect of misrepresentation/concealment — Jun2013(100) ⭐⭐⭐
1.4 Rights of surety (against principal debtor, creditor, co-sureties); “surety is a favoured debtor” [16M] Dec2012(100), Dec2017(100, against principal debtor & creditor); [10M] Jun2019(80); [SN] Rights of the surety — Jun2013(100), Dec2013(100), Jun2017(100); “surety is a favoured debtor — discuss” — Dec2012(100) — (also bundled with “Define guarantee; explain rights of surety” Jun2012(100), Jun2018(100), Dec2020(100), Apr2021(100), Feb2025(80)) ⭐⭐⭐
1.5 Discharge of surety — modes / circumstances [16M] Jan2011(100), Jun2014(100), Jun2016(100), Jun2019(100), Apr2022(100); with continuing-guarantee framing — Jan2012(100), Dec2015(100), Jun2018(100); [10M] Jun2019(80), Nov2022(80), Mar2022(80), Jan2026(80) ⭐⭐⭐
1.6 Continuing guarantee — meaning, revocation/termination [16M] What is continuing guarantee; when revoked — Dec2012(100); [10M] Jun2025(80); [SN] Continuing guarantee — Dec2014(100), Jun2014(100), Jun2019(80), Nov2022(80), Feb2025(80), Dec2018(100) ⭐⭐⭐
1.7 Extent of surety’s liability (covered within rights/discharge; co-extensive with principal debtor — s.128) — Jun2019(80); cover briefly ⭐
1.8 Co-surety — co-sureties’ liability & contribution [SN] Co-surety — Dec2013(100), Apr2023(80); [Prob] co-sureties’ liability — Jun2017(100) ⭐⭐
Short notes asked on Unit 1 topics [SN] Indemnify/Indemnity — Jun2015(100); Contract of Indemnity — Jun2016(100), Dec2017(100), Jun2018(100), Jun2019(100), Dec2020(100), Apr2022(100), Apr2023(80); Continuing guarantee (see 1.6); Co-surety (see 1.8)

Application Problems (all papers)

Every fact-pattern problem from every paper — 80-mark and 100-mark sittings. Look-alikes (same issue + rule + decoy, only names/amounts/dates swapped) are merged into ONE row with neutral labels and all years listed.

Year(s) (paper) Problem summary (neutral labels, with the decoy) Key issue
Dec2015(100), Jun2019(80), Dec2019(100), Nov2021(80), Jan2026(80) A advances a loan (Rs. 1,000 / 1,00,000 / 2,00,000) to B, a minor, on the guarantee of C; B refuses to repay pleading minority. Can A recover from C? Decoy: minority of the principal debtor Surety’s liability where principal debtor is a minor (s.128); guarantee for a minor’s “debt” — surety liable as principal debtor
Jan2012(100), Dec2019(80), Mar2022(80), Nov2022(80) A guarantees payment to B for five sacks of flour delivered by B to C, payable in a month; B delivers five sacks, C pays; later B delivers four more sacks, C does not pay. Liability of A? Decoy: looks like a continuing guarantee Specific vs continuing guarantee (s.129); guarantee exhausted by the first transaction
Jun2012(100) A is surety for the good conduct of B (bank employee); B misappropriates money; the bank excuses him without informing A; B again misappropriates Rs. 50,000; bank sues A. Decide. Decoy: creditor’s forbearance/concealment Discharge of surety by creditor’s conduct / concealment (s.139, s.141)
Apr2021(80) B owes C a debt guaranteed by A; the debt becomes payable; C does not sue B for a year. Is A discharged from suretyship? Decoy: mere delay in suing Mere forbearance to sue does not discharge the surety (s.137)
Jun2017(100) A, B and C are co-sureties to D for Rs. 9,000 lent to E; E defaults. Discuss the liability of A, B and C. Co-sureties’ liability to contribute equally (s.146, s.147)
Jun2016(100) Mrs. V buys a bus on a bank loan; her husband S stands surety; S later divorces V; V defaults; bank asks S to clear dues. Since he is no longer her husband, is S discharged? Decoy: change in personal relationship A change in the surety’s relationship with the principal debtor does not discharge suretyship


📅 Unit 2 — Contract of Bailment & Contract of Pledge

Topic-wise Questions

# Topic Questions & Frequency
2.1 Bailment — definition, essential features, kinds [16M] What is bailment; important features (decided cases) — Dec2019(80→ also asked 100-style), Jun2016(100); essential features — Jun2013(100); define bailment + features — Jun2019(80), Aug2024(80); [10M] Feb2025(80, + differences from pledge), Mar2022(80) ⭐⭐⭐
2.2 Rights & duties of Bailor [16M] Define bailment; rights & duties of bailor — Jan2012(100), Jun2014(100), Dec2015(100) ⭐⭐
2.3 Rights & duties of Bailee [16M] Define bailment; rights & duties of bailee — Dec2012(100), Dec2014(100, bailor & bailee), Dec2020(100); [10M] Mar2022(80), Apr2021(80, duties of bailee); [SN] Duties of Bailee / Rights of Bailee — Jan2012(100), Jun2014(100), Jun2017(100), Dec2017(100), Jun2018(100), Jun2019(100), Nov2022(80), Apr2021(80) ⭐⭐⭐
2.4 Rights of finder of goods as bailee; liability to true owner [16M] Rights of finder & liability to true owner — Dec2013(100); State rights of finder of goods as bailee — Nov2022(100); [10M] Jan2012(100, rights of finder); [SN] Rights of finder of lost goods — Jun2015(100), Dec2019(100) ⭐⭐
2.5 Lien (bailee’s particular & general lien); kinds of lien [16M] Define lien; rights of bailee re lien — Dec2012(100); types of lien with decided cases — Jun2015(100); define lien; kinds of lien — Jun2019(100); [10M] Nov2022(80), Apr2021(80); [SN] Right of Lien — Dec2014(100), Jun2014(100), Feb2025(80), Apr2022(100, bailee’s lien) ⭐⭐⭐
2.6 Contract of Pledge — definition; comparison with bailment; pledge by non-owner (Pawnor who is not owner) [16M] Define pledge; circumstances a non-owner can make a valid pledge — Jun2014(100), Dec2014(100), Dec2015(100), Jun2018(100), Dec2018(100), Apr2021(100); define bailment & pledge; pledge by non-owners — Jun2012(100); [10M] Feb2025(80, features + non-owner), Apr2021(80, SN); [SN] Pledge — Jan2012(100), Jun2019(80), Apr2021(80) ⭐⭐⭐
2.7 Rights & duties of Pawnor & Pawnee (Pledgee) [16M] Define pledge; rights & duties of pledgee/pawnee — Jan2011(100), Jun2011(100, rights of pawnee), Jun2015(100), Jun2019(100), Dec2019(100); rights & duties of pawner & pawnee — Dec2013(100); who may pledge — Jun2013(100), Nov2022(80), Apr2023(80); [10M] Jun2019(80, rights of pledgee), Apr2023(80, persons who can pledge) ⭐⭐⭐
Other short notes on Unit 2 topics [SN] Hypothecation — Jun2013(100); Bailor — Apr2023(80); Delivery of goods under pledge — Apr2023(80); Right of Lien (see 2.5)

Application Problems (all papers)

Every fact-pattern problem from every paper. Look-alikes merged into ONE row with neutral labels and all years; genuinely different problems kept separate.

Year(s) (paper) Problem summary (neutral labels, with the decoy) Key issue
Jun2011(100), Dec2012(100), Jun2019(80), Dec2019(100) A lends a horse he knows to be vicious to B and does not disclose the fault; B rides and is thrown/injured; B sues A. Decoy: gratuitous loan Bailor’s duty to disclose known faults (s.150); gratuitous bailor liable only for known undisclosed faults
Jan2011(100), Jun2017(100, motor car), Dec2019(80), Apr2022(100, horse carriage), Aug2024(80), Nov2021(80) A hires a carriage/motor car of B; it is unsafe; B is unaware; A is injured while using it. Is B liable? Would it differ if the bailment were gratuitous? Decoy: B’s lack of knowledge Bailor for hire/reward liable even for faults he did not know (s.150 proviso); gratuitous bailor liable only for known faults
Jun2011(100), Jun2013(100) A entrusts books to B for binding, to be returned in ten days; B fails to return in time; the books are later burnt in an accidental fire on B’s premises. Can A recover damages? Decoy: accident/fire Bailee who fails to return after the agreed time is liable for any subsequent loss (s.161)
Dec2012(100), Dec2015(100), Jun2018(100), Jan2026(80) A lends a horse to B for B’s own riding only; B lets C, a family member, ride it with care; the horse accidentally falls and is injured. Is B liable? Decoy: care was taken Unauthorised use of bailed goods — bailee liable for any loss even without negligence (s.154)
Dec2013(100), Mar2022(80) A finds a jewel and takes it to a goldsmith B to test its genuineness; B, after testing, refuses to return it. Decide. Decoy: goldsmith’s possession/testing Finder/bailment — no lien for mere testing; bailee bound to return (s.160, s.161); goldsmith’s wrongful detention
Dec2014(100), Feb2025(80) A lady takes old jewels to a goldsmith to be remade; each evening she receives the half-made jewels in a box she locks and keeps on the goldsmith’s premises but keeps the key herself; the jewels are stolen one night. Is the goldsmith liable? Decoy: key (custody) remained with the owner Whether possession/custody passed to the bailee — no bailment if owner retains effective custody
Dec2013(100), Dec2019(100) A leaves his cow to be cared for for a month; B accepts but after fifteen days sells the cow to C. Remedies for A. Decoy: acceptance of bailment Conversion/wrongful sale by bailee; bailor’s remedies (s.180, tort of conversion)
Jun2012(100) A white tiger is entrusted by B to the Railway for carriage; the cage breaks from journey jolts, the tiger escapes, kills C’s bullock and is then crushed by the engine. Discuss the Railway’s liability to B and C. Decoy: extraordinary nature of the goods Bailee/carrier’s duty of care (s.151–152); liability to bailor and to third party
Jan2012(100) S enters a restaurant to dine; the waiter, unasked, takes his coat and hangs it; on leaving, the coat is missing. Who is liable? Decoy: coat handed without express request Bailment by implied delivery; occupier/bailee’s duty of reasonable care (s.151)
Dec2014(100) A delivers 100 barrels of mustard oil to the railway at Calcutta for carriage to B at Delhi; the oil is destroyed by a lawful authority because it was adulterated; the railway fails to deliver. Is the railway liable for non-delivery? Decoy: destruction by lawful order Carrier-bailee not liable where loss results from act of lawful authority / inherent vice (s.152)


📅 Unit 3 — Contract of Agency

Topic-wise Questions

# Topic Questions & Frequency
3.1 Agency — definition; creation of agency (modes) [16M] Define agency; modes of creation — Jun2015(100); what is contract of agency; modes of creation — Jun2012(100); how to create agency (+ kinds of agents) — Dec2013(100); [10M] Apr2021(80), Nov2022(80); [SN] Modes/creation of agency — Dec2017(100), Jun2018(100) ⭐⭐
3.2 Kinds of agents (factor, broker, del credere, auctioneer, etc.) [16M] Define agent; kinds of agents — Jan2012(100), Dec2013(100); [SN] Del credere agent — Jan2011(100); Different types of agents — Jun2015(100); Factors — Apr2023(80); Sub-agent — Jun2011(100), Dec2015(100) ⭐⭐
3.3 Distinction between Agent and Servant (never asked) — syllabus topic; cover briefly under definition of agency ⭐
3.4 Rights & duties of agent [16M] Rights & duties of agent — Jan2012(100), Dec2015(100), Jun2019(100), Apr2021(100); duties of an agent — Jun2011(100), Dec2012(100); [10M] Jun2019(80), Nov2022(80, duties towards principal); [SN] Duties of an Agent — Dec2020(100) ⭐⭐⭐
3.5 Extent of agent’s authority; “Test of Agency” [16M] Test of agency; extent of agent’s authority — Jan2011(100); extent of agent’s authority — Dec2016(100) ⭐
3.6 Delegation — sub-agent; “delegatus non potest delegare” [16M] Rule that a delegate cannot further delegate — Dec2012(100); maxim delegatus non potest delegare — Jun2018(100); [SN] Sub-agent — Jun2011(100), Dec2015(100) ⭐⭐
3.7 Relation of principal with third parties; personal liability of agent; undisclosed principal [16M] Relationship of principal & third parties — Dec2013(100); [SN] Personal liability of agent — Jun2014(100), Apr2021(80), Dec2018(100), Apr2021(80); Undisclosed principal — Dec2016(100), Dec2019(100) ⭐⭐
3.8 Agency by ratification — meaning, conditions/essentials [16M] Agency by ratification; conditions of valid ratification with illustrations — Jun2013(100); meaning & relevant rules — Jun2014(100), Dec2018(100); essentials/essential elements — Dec2014(100), Dec2020(100); [SN] Agency by ratification — Jan2011(100), Jun2011(100), Jun2017(100), Mar2022(80) ⭐⭐⭐
3.9 Termination of agency — modes; irrevocable agency; agency coupled with interest [16M] Modes of termination of agency — Jan2011(100), Jun2011(100), Jun2013(100); circumstances in which agency is terminated — Jun2012(100); [10M] Jun2019(80), Mar2022(80), Nov2021(80), Apr2023(80); [SN] Termination of Agency — Dec2013(100); Revocation of contract of agency — Jan2012(100); Irrevocable Agency — Jun2014(100); Agency coupled with interest — Jan2011(100); Agent’s right of lien — Jan2012(100) ⭐⭐⭐

Application Problems (all papers)

Every fact-pattern problem from every paper. Look-alikes merged into ONE row with neutral labels and all years; genuinely different problems kept separate.

Year(s) (paper) Problem summary (neutral labels, with the decoy) Key issue
Jun2012(100), Apr2021(80), Jun2018(100), Jun2019(100), Apr2022(100) P authorises A to sell P’s land and pay himself, out of the proceeds, the debt P owes him; P later revokes the authority. Can P do so? Advise. Decoy: the revocation Agency coupled with interest is irrevocable (s.202)
Jun2015(100) Z (cloth dealer) appoints Y as selling agent on 5% commission with an agreement that Y may retain part of the sale proceeds to adjust his commission; Z terminates the agency; Y refuses to hand over the cloth, claiming authority coupled with interest. Advise Z. Decoy: Y’s commission claim vs true interest in the subject-matter Agency coupled with interest (s.202) vs a mere right to remuneration/lien — termination valid if no interest in the property itself
Jun2013(100) A, agent of B, is authorised to sell manure but not to give any warranty; A nonetheless warrants 30% phosphate of lime; the warranty proves false. Can the buyer sue the principal B? Decoy: agent’s lack of actual authority to warrant Principal bound by acts within the agent’s apparent/usual authority (s.237)
Dec2012(100) A directs B to sell A’s estate; B discovers a mine on the estate unknown to A, asks to buy the estate himself but conceals the discovery; A consents in ignorance. Decide. Decoy: A’s consent to the sale Agent’s duty not to make secret profit / to disclose material facts (s.215, s.216)
Jun2013(100) A directs agent B to buy a certain house; B falsely says it cannot be bought (already sold) but buys it for himself; A learns of the fraud. Can A compel B to sell it to him? Decoy: B’s false statement Agent buying principal’s business for himself — principal may repudiate / claim the benefit (s.215)
Dec2013(100), Mar2022(80) Owner A hands a horse to agent B with instructions not to sell under any circumstances; B sells it to C for Rs. 50,000 and misappropriates the money. Decide. Decoy: the private instruction limiting authority Apparent/ostensible authority binds the principal against a third party who had no notice (s.237)
Dec2012(100) X holds a lease from Y, terminable on three months’ notice; Z, an unauthorised person, gives notice of termination to X. Can Y ratify the notice? Decoy: Z’s lack of authority Ratification cannot validate a notice that prejudices a third party’s accrued rights (s.200)
Dec2019(80), Nov2021(80) A, agent of B, sells goods to C without proper enquiry into C’s solvency; C was insolvent at the time of sale; B wants to sue the agent / recover the goods. Can he succeed? Decoy: agent’s want of care Agent’s duty to act with reasonable skill and care (s.211, s.212); del credere distinction
Feb2025(80) A authorises B to buy 1,000 kg of cotton on A’s account and pay from A’s money in B’s hands; B buys it in his own name to later sell it to A at a higher price for profit. Can A repudiate? Decoy: purchase made with A’s money Agent dealing on his own account / making secret profit (s.215, s.216)
Jun2012(100) D, a carrier, finds a consignment of tomatoes badly deteriorating before reaching the destination and sells it for about a third of the market price; E sues D for damages. Decide. Decoy: low sale price Agency of necessity — carrier’s authority to sell perishables (s.189)
Jun2017(100) A directs solicitor B to sell an estate by auction and employ an auctioneer; B names C as the auctioneer. Is C a sub-agent or a substituted agent? Decoy: B “appointing” C Substituted agent vs sub-agent (s.194, s.195)
Nov2022(100) A, captain of B’s ship, signs bills of lading without having received the goods on board. Decide A’s responsibility. Decoy: A acting as agent/master Agent’s personal liability for unauthorised/false acts; breach of warranty of authority
Nov2022(100) B entrusts a case with documents to an advocate; the advocate later claims a lien over the documents. Advise B. Decoy: advocate’s possession of documents Agent’s particular lien over papers/property for fees (s.221) and its limits
Nov2022(100) K is to be carried to Bombay but is taken to Delhi instead; the car meets with an accident and is damaged. Advise P (owner). Decoy: the deviation from agreed route Liability for unauthorised deviation by agent/carrier; loss during deviation


📅 Unit 4 — Indian Partnership Act

Topic-wise Questions

# Topic Questions & Frequency
4.1 Definition of partnership; nature & mode of determining the existence of a partnership; sharing-of-profits test [16M] Define partnership; test to determine existence — Jan2012(100); “sharing of profit is only prima facie evidence” — discuss — Jun2015(100); sharing of profit not the sole test — comment — Dec2012(100); nature & mode of determining existence — Dec2013(100), Dec2019(100); essential elements — Jun2017(100); [10M] Aug2024(80, tests), Jun2025(80, prima facie evidence), Mar2022(80, distinguish from HUF) ⭐⭐⭐
4.2 Relation of partners to one another — rights & duties; mutual rights & liabilities [16M] Rights & duties of a partner — Jun2011(100), Dec2014(100), Jun2018(100), Jun2019(100); mutual rights & liabilities between partners — Dec2016(100), Dec2019(100); [10M] Nov2021(80); [SN] Implied authority of a partner — Jan2011(100), Dec2012(100), Dec2015(100), Apr2021(80) ⭐⭐⭐
4.3 Relation of partners with third parties — liability to third parties [16M] Liability of partners to third parties and among themselves — Jun2013(100); [10M] Mar2022(80) ⭐⭐
4.4 Types of partners; minor partner / minor admitted to benefits [16M] Can a minor be a partner; legal status of minor partner — Jun2012(100); [SN] Types/kinds of partners — Jun2014(100), Dec2018(100), Apr2022(100), Apr2021(80), Mar2022(80), Nov2022(80); Minor partner — Nov2022(100) ⭐⭐⭐
4.5 Admission, retirement and expulsion of partners [16M] Admission & retirement of partners — Dec2013(100); write on admission, retirement & expulsion — Dec2020(100); [10M] Apr2021(80); [SN] Rights of out-going partner — Apr2023(80); Expulsion of a partner — Apr2023(80) ⭐⭐
4.6 Dissolution of firm — modes; dissolution by court [16M] Consequences of dissolution — Jan2011(100); methods of dissolution — Jun2011(100); grounds for dissolution by order of court — Jun2012(100), Dec2017(100), Apr2021(100); meaning & different modes of dissolution — Dec2012(100), Dec2020(100); when can a court order dissolution — Jun2014(100); [10M] Nov2021(80), Nov2022(80), Aug2024(80, modes & consequences) ⭐⭐⭐
4.7 Registration of firms; effects/consequences of non-registration [16M] Procedure of registration & consequences of non-registration — Jun2014(100), Dec2018(100), Jun2016(100); advantages & disadvantages of registration — Jan2012(100), Dec2015(100); how firms are registered; consequences of registration & non-registration — Jun2013(100); [10M] Jun2019(80), Apr2023(80), Feb2025(80), Apr2021(100); [SN] Effects of non-registration — Jan2011(100), Dec2019(80), Nov2021(80), Jun2018(100), Jun2019(100), Aug2024(80) ⭐⭐⭐
4.8 Settlement of accounts on dissolution; goodwill; partnership at will [16M] Rules regarding settlement of accounts of the firm — Dec2016(100), Dec2018(100), Jun2019(100); [SN] Goodwill of a business — Dec2012(100), Dec2015(100); Main features of a partnership firm — Jun2014(100); Partnership at will — Aug2024(80) ⭐⭐

Application Problems (all papers)

Every fact-pattern problem from every paper. Look-alikes merged into ONE row with neutral labels and all years; genuinely different problems kept separate.

Year(s) (paper) Problem summary (neutral labels, with the decoy) Key issue
Jan2011(100), Jun2011(100), Dec2013(100), Jun2013(100), Dec2018(100), Apr2021(100), Nov2022(80) C, an active partner, retires without giving public notice; a creditor / supplier X (sometimes an old customer D) deals with the firm afterwards and seeks to hold C liable. Advise / decide. Decoy: the retirement itself Retiring partner remains liable to third parties dealing without notice until public notice is given (s.32, s.45)
Jun2011(100), Dec2013(100), Dec2017(100), Jun2019(100) A and B agree to work together (carpenters / goldsmiths); A takes all the profits and pays B a fixed monthly sum (Rs. 5,000 / 8,000) as wages. Are A and B partners? Decoy: B’s “share” is really wages Sharing of profits is not conclusive; a servant paid out of profits is not a partner (s.6, s.7)
Jun2012(100) A, B, C & Co., a newly constituted firm, begins business without registration; debtor D defaults on Rs. 1 lakh; the firm sues, then registers immediately; would it succeed? Would the answer differ if D (a creditor) sued the unregistered firm? Decoy: registration after filing suit Effect of non-registration — s.69 bars suits by an unregistered firm but not suits against it
Jun2013(100) An unregistered firm borrows Rs. 1,00,000 from X and fails to repay; what can X do to recover? Decoy: the firm being unregistered A third party may sue an unregistered firm; s.69 bar operates only against the firm’s own suits
Dec2016(100) A and B form a trading partnership for five years; after two years A is convicted of travelling on the railway without a ticket; A petitions to dissolve the firm on the ground of his own misconduct. Will he succeed? Decoy: A relying on his own wrong Dissolution by court for misconduct (s.44) — a partner cannot rely on his own misconduct
Jan2012(100) Two doctors form a firm; one is punished for the offence of rape; the other seeks dissolution. Can he? Decoy: conduct unconnected with the business Dissolution by court — partner guilty of conduct prejudicially affecting the business (s.44)
Jan2012(100) W, an active partner, resigns and then starts a new competing business. Can he? Decoy: his former partner status Outgoing partner’s right to compete (s.36) subject to any valid restraint
Jun2012(100) Three bus companies, each having ten partners, combine into one firm (thirty partners); the firm enters contracts. Are they enforceable? Decoy: combining existing firms Maximum number of partners / association exceeding the limit — illegal association
Jun2015(100) P, Q and R agree to ply motor buses for 20 years; after four years of continuous losses P insists on continuing; can he? What is open to Q and R who wish to stop? Decoy: the fixed term Dissolution by court — business carried on only at a loss (s.44)
Nov2021(80), Jan2026(80) Two persons agree to invest in a 2:1 ratio and start a firm; they earn Rs. 3,00,000 profit in a year; how do they share it? Decoy: the 2:1 investment ratio In the absence of an agreement on profit-sharing, partners share equally (s.13) regardless of capital contributed
Feb2025(80) A partner among three uses the firm’s property for his private benefit without authority, causing the firm a huge loss; the remaining partners seek a remedy. Decoy: it is firm property Partner’s duty to use firm property only for the firm; liability to account for private profits/loss (s.9, s.15, s.16)


📅 Unit 5 — Sale of Goods Act

Topic-wise Questions

# Topic Questions & Frequency
5.1 Contract of sale & agreement to sell — definition, distinction [16M] Define contract of sale; distinction between sale and agreement to sell — Jun2011(100), Jun2017(100); [10M] Apr2021(80), Nov2022(80), Apr2023(80, define sale; sale v agreement to sell); [SN] Contract of Sale — Dec2013(100) ⭐⭐⭐
5.2 Conditions & warranties — meaning, distinction, implied conditions & warranties [16M] Conditions & warranties implied by law — Jan2011(100); define condition & warranty; conditions implied by description; when a condition sinks to a warranty — Jun2012(100); distinguish condition & warranty — Dec2012(100), Dec2013(100), Dec2020(100); [10M] Apr2021(80, implied), Nov2021(80, implied), Apr2023(80, implied), Jun2025(80, express & implied warranties); [SN] Conditions and Warranties — Jun2016(100), Dec2019(80) ⭐⭐⭐
5.3 Caveat emptor — doctrine & exceptions [16M] Doctrine of caveat emptor; exceptions — Jun2011(100), Jun2014(100), Dec2014(100), Dec2018(100), Apr2022(100); rule of caveat emptor with exceptions — Jun2015(100); [10M] Mar2022(80), Aug2024(80), Feb2025(80), Jan2026(80); [SN] Caveat Emptor — Jun2013(100) ⭐⭐⭐
5.4 Passing of property from seller to buyer [16M] Rules relating to passing of property — Jun2013(100); when does property in goods pass — Dec2012(100) ⭐
5.5 Transfer of title by non-owner — “nemo dat quod non habet” & exceptions [16M] Maxim nemo dat quod non habet & exceptions — Jan2011(100); “no one can transfer a better title than he himself has” — discuss — Jun2012(100), Dec2016(100), Dec2017(100), Dec2020(100), Apr2021(100); [10M] Dec2019(80), Aug2024(80) ⭐⭐⭐
5.6 Unpaid seller — definition & rights (lien, stoppage in transit, resale) [16M] Who is an unpaid seller; rights against the goods — Jan2012(100), Jun2012(100), Jun2014(100), Dec2014(100), Jun2017(100), Dec2017(100), Jun2019(100), Apr2021(100), Apr2022(100), Nov2022(100), Jun2018(100); unpaid seller’s right of lien v stoppage in transit — Dec2015(100); [10M] Dec2019(80), Mar2022(80); [SN] Unpaid seller — Dec2012(100), Dec2013(100); Stoppage in transit — Jun2016(100), Apr2021(80), Aug2024(80), Dec2019(100) ⭐⭐⭐
5.7 Performance of the contract; remedies for breach (seller’s & buyer’s) [16M] Remedies for breach of contract of sale — Jan2012(100), Dec2013(100), Jun2015(100), Dec2015(100); rights of seller & buyer for breach — Jun2013(100), Dec2018(100), Dec2019(100); [10M] Feb2025(80) ⭐⭐⭐
5.8 Goods — meaning & kinds; auction sale [SN] Goods — Dec2012(100), Apr2023(80), Jun2025(80); Auction Sale — Jun2013(100), Apr2023(80) ⭐
5.9 Hire-Purchase Act (prescribed material; appears only in old pre-2014 100-mark papers — confirm current relevance with examiner) [16M] Define hire-purchase agreement & salient features; rights & obligations of owner/hirer; distinguish from sale — Jan2011(100), Jun2011(100); [SN] Assignment & transmission of hirer’s rights, Contents of HP agreement, Implied warranties — Jan2011(100), Jun2011(100) ⭐

Application Problems (all papers)

Every fact-pattern problem from every paper. Look-alikes merged into ONE row with neutral labels and all years; genuinely different problems kept separate.

Year(s) (paper) Problem summary (neutral labels, with the decoy) Key issue
Jan2012(100), Jun2012(100), Dec2019(80), Aug2024(80), Dec2017(100), Jun2019(100) A agrees to supply 100 barrels/tons of oil/sugar to B; A despatches an excess (120 / 150); B refuses the whole. Advise A. Decoy: only the excess is wrong Delivery of wrong (excess) quantity — buyer may reject the whole or accept the contract quantity (s.37)
Jun2012(100), Apr2021(80), Apr2022(100) A buys a diamond necklace from B, pays, but leaves it in B’s possession; B sells the same necklace to C at a higher price. Does C get a better title? Can A sue C? Decoy: A is the true owner Seller in possession after sale passes good title to a bona fide buyer (s.30(1))
Jan2011(100) A jeweller delivers jewellery to B “on sale or return”; B pledges it with a pawnbroker without paying; A sues B for the price. Can A succeed? Decoy: it was “on approval” Sale or return — pledging signifies acceptance; property passes, price recoverable (s.24)
Jun2011(100), Dec2020(100) A gives a golden ring to B “on sale or return”, to be returned in ten days if not approved; B pledges the ring with C without signifying approval; price unpaid; A sues C to recover the ring. Decoy: B never expressly “approved” Sale or return — an act adopting the transaction (pledge) passes property; A cannot recover from C (s.24)
Dec2015(100) Baba Co. delivers 25,000 gas meters to NB Co. on sale or return; NB returns them after eight months; Baba refuses and sues for the price. Will Baba succeed? Decoy: lapse of time before return Sale or return — property passes if goods not returned within a fixed/reasonable time (s.24)
Jun2011(100), Mar2022(80), Nov2022(80) Three joint owners; the goods (horse) are in the sole possession of one with the others’ permission; he sells to a bona fide buyer D without authority; the others say the sale is void. Decide. Decoy: he is only a co-owner One of several joint owners in sole possession can pass good title to a bona fide buyer (s.28)
Jun2012(100) A dentist agrees to make and fit a set of artificial teeth into a patient’s mouth for Rs. 5,000, finding all the material himself. Is it a contract for the sale of goods? Decoy: materials supplied by the dentist Sale of goods vs contract for work, skill and labour
Jan2012(100) P buys a dead pig from a pork dealer; the family consumes it, falls ill because it was unfit; P sues for damages. Decide. Decoy: buyer chose the goods Implied condition of fitness / merchantable quality for food (s.16)
Jun2012(100), Jun2014(100) A asks chemist B for a hot-water bottle; it bursts and injures A’s wife; is B liable to refund? Decoy: only “fitness for hot water” implied Implied condition of fitness for purpose (s.16; Priest v Last)
Jun2014(100), Jun2016(100), Dec2018(100) A buyer purchases a motor car, uses it for several months, then must surrender it to the true owner because the seller had no title; he sues to recover the full price paid. Can he? Decoy: months of use/enjoyment Breach of implied condition as to title — total failure of consideration, full price recoverable (s.14; Rowland v Divall)
Dec2014(100) A seller agrees to supply 200 tons of “Java sugar” warranted equal to sample; the goods match the sample but are not Java sugar; buyer’s remedy? Decoy: correspondence with sample Sale by sample and description — goods must satisfy both (s.15, s.17)
Aug2024(80), Jan2026(80) A seller undertakes to supply 100 tons of rice of the kind shown as sample; the rice supplied does not correspond to the sample; buyer’s remedy? Decoy: bulk vs sample Sale by sample — bulk must correspond with sample (s.17)
Jun2016(100), Jun2018(100) A buyer purchases milk containing typhoid germs; his wife consumes it, is infected and dies; is the seller liable in damages? Decoy: latent contamination Implied condition of fitness/merchantability for food (s.16; Frost v Aylesbury Dairy)
Dec2016(100) A agrees to sell B 10 bags of rice out of 50 bags that had been destroyed by fire; can B compel A to supply? Decoy: part of a larger lot Goods perishing before sale — agreement void for impossibility (s.7, s.8)
Jun2015(100) A sells B sugar lying in A’s warehouse on two months’ credit; B leaves it there and becomes insolvent before the credit period expires; the official receiver demands delivery without paying. A’s rights? Decoy: credit term not yet over Unpaid seller’s lien / right against an insolvent buyer (s.47, s.54)
Dec2016(100), Dec2018(100), Apr2021(100) X employs Y to recover a debt of Rs. 1,500 from Z; the debt becomes time-barred through Y’s negligence; is Y entitled to remuneration? Decoy: Y did “act” on the matter (agency-flavoured problem appearing in the Sale/general problems pool) Agent’s right to remuneration lost by misconduct/negligence (s.219, s.220) — cross-listed; primary home Unit 3

← Back to Contract II Home

💎 Get Exam-Ready Solved Answer Banks

Looking for model answers to all these questions? Get the Contract II Notes + Question Bank Bundle containing full 16-mark essay blueprints and solved IRAC problems for all previously-asked KSLU questions!

Info

download our exam preparation kit for your exam