Page 80 - DMGT407Corporate and Business Laws

Unit 3: Contracts of Bailment and Agency

3. P authorises A to buy 5 tables for him. A buys 5 tables and 2 chairs for one sum of ` 600. Notes
Discuss the position of P.
4. X lends a car to Y for going to attend the annual general meeting of MTS Ltd. being held at
Juhu. The brakes of the car are not in working condition. This fact is already known to X
but he did not tell Y about the defects. Y instead of going to attend the annual general
meeting at juhu drives the car to the Gateway of India on a pleasure trip. The car meets
with an accident & Y gets injured. Y wants to hold X liable for the injury. Decide whether
Y would succeed? Justify.
5. “Bailor is liable to the bailee for loss caused by faults in the goods bailed whether the
bailor was aware of the same or not.” Comment.
6. Agent who was appointed by a power of attorney, borrowed money on a representation
that the power gave him full authority to borrow. The agent produced the agreement of
power of attorney which did not authorise the borrowing but the lender without reading
it relied on the agents representation. Is the principal bound by the loan? Comment.

7. “A” consigned goods by Railways. The consignment, at the time of delivery, was found
damaged. After obtaining a certificate of damages from the Railway Officer, A claimed
from the Railways compensation of ` 2,300. The general Manager of the Railways sent
him a cheque for ` 1,300 in full and final settlement. The cheque was encashed, but after a
lapse of sometime. A claimed that the payment had satisfied only a part of his claim and
demanded payment of the balance. Discuss the claim of A for payment of the balance
amount.
8. “The finder of lost goods has no right to file a suit for recovery of expenses incurred by
him for finding out the true owner.” Comment.

9. Ram gives his watch to Mohan to be used for 2 days during the examination. Mohan keeps
the watch for a week. While going to Ram’s house to return the watch, Mohan accidentally
slips & the watch is badly damaged. Who will bear the loss and why?
10. Agent having an authority to do an act has authority to do every lawful thing which is
necessary in order to do such act. Comment.

11. P employs A as his agent to sell 100 bags of sugar and directs him to sell at a price not less
than ` 120 per bag. A sells the entire quantity at ` 110 per bag whereas the market rate on
the date of sale was ` 115 per bag. Is P entitled to any damages and if so, at what rate?
12. X enters into a contract with Y for buying his car as agent of C without the C’s authority.
Y reduplicated the contract before C comes to know of it. C subsequently ratifies the
contract & sues Y to enforce it. Will he succeed? Justify.

Answers: Self Assessment

1. temporary 2. accomplished.
3. bailee 4. true owner
5. implication 6. Implied

7. special 8. substituted
9. misconducted 10. indemnify
11. apparent 12. 223

13. warranty 14. third parties

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