Practical Problems_Contract Act_89

Ram sells the goodwill of his shop to Shyam for Rs. 4,00,000 and promises not to
carry on such business forever and anywhere in India. Is it valid agreement ? Why ?

Practical Problems_Contract Act_88

Kamala promises Ramesh to lend Rs. 50,000 in lieu of consideration that Ramesh
gets Kamala’s marriage dissolved and himself marries with her. Is it valid agreement why ?

What is restrictive & non-restrictive idorsement

A restrictive indorsement is an indorsement that contains some sort of instruction from the indorser.

A nonrestrictive indorsement is an indorsement that has no instructions or conditions attached to the payment of funds.

What is blank & special indorsement

A blank indorsement is an indorsement that does not specify a particular indorsee. It creates bearer paper.

A special indorsement is an indorsement that contains the signature of the indorser and specifies the person (indorsee) to whom the indorser intends the instrument to be payable. It creates order paper.

How order and bearer paper can be converted ?

Instruments can be converted from order paper to bearer paper, and vice versa, many times until the instrument is paid. The deciding factor is the type of indorsement placed on the instrument at the time of each subsequent transfer. An indorsement is the signature (and other directions) written by or on behalf of the holder somewhere on the instrument.

How order and bearer paper are negotiated ?

Order paper is negotiated by indorsement and delivery.
Bearer paper is negotiated by delivery; indorsement is not necessary.

Explain parties to check

Drawer to the check—the customer who has the checking account and writes (draws) the check
Drawee of the check—the financial institution where the drawer has his or her account
Payee of the check—the party to whom the check is written