Practical Problems_Sales of Goods Act_6

The plaintiff, a butcher bought a carcass of a goat from the defendant, who was a meat shopkeeper in a meat market. The plaintiff in ignorance of the fact that it was exposed to tuberculosis, offered it for sale. It was seized by a Food Inspector, who adjudged the same as unfit for consumption, and condemned it to be destroyed. The plaintiff was also fined. Thereafter the plaintiff filed a suit against the defendant to recover the amount of fine and damages for breach of warranty under the Sale of Goods Act. The defendant pleaded that by usage of trade such an implied warranty was excluded. Decide.

Practical Problems_Sales of Goods Act_5

B’ purchases a motor car from ‘A’ which he uses for some months. It turns out that the car sold by ‘A’ to ‘B’ was a stolen one and has to be restored to the rightful owner. ‘B’ brings an action against ‘A’ for the return of the price. Will he succeed? Decide giving reasons.

Practical Problems_Partnership Act_12

‘A’ and ‘B’ are carrying on the business of grain merchants, in partnership. It is provided in the partnership deed that disputes relating to the affairs of the business would be preferred to arbitration. Arbitrators decided in favour of ‘A’. ‘B’ refuses to abide by the award. ‘A’ sues for enforcement of the award. Incidentally the firm is not registered under the Indian Partnership Act. Can A file case in this situation ?

Practical Problems_Partnership Act_11

‘A’ and ‘B’ carry on motor repair business in partnership. Under the deed of partnership, ‘A’ has no power of borrowing money. ‘C’ a creditor, knowing nothing about restrictions on the power of ‘A’ for borrowing money, lends ‘A’ money for the use of the firm. Is the firm liable to ‘C’ for repayment of the money lent by him to ‘A’. Refer to statutory provisions and decided cases.

Contract Act_Practical Problems_96

A company agreed to supply one thousand blankets to ‘X’ by a particular date. Rupees 10, 000/- were paid as an advance to the company by ‘X’. Before the due date of performance of the contract, the company informed ‘X’, that it would not supply blankets on due date and that he should treat the contract as repudiated. ‘X’ did not accept the repudiation, and kept on demanding the supply till the last date/ due date of performance of the contract. In the meantime, war between India and China broke out, and all the stocks of the company were requisitioned by Government for military purposes. ‘X’ files a suit against the company for damages for breach of contract. Will he succeed? Decide by referring to the provisions of the Indian Contract Act and decided cases.

Contract Act_Practical Problems_95

A, the owner of a hotel, contracts with B, to give him accommodation therein for the sale of his hosiery products and to furnish the accommodation with necessary furniture. A refuses to perform the contract. Can specific performance order be issued by court in this circumstances ?

Companies Act_Practical Problems_85

The Articles of Association of a company provide that the meeting of the Board of
Directors of the company will be held on the last Friday of every month. The Secretary of the company as a result does not serve the notice to the individual directors of the company. Consequently, a meeting of the Board of Directors was held on 20th February, 2008. The meeting was attended by all the directors with the exception of two directors out of a total of 10 directors and certain resolution were passed. The two absentee directors object to the meeting and the proceedings of the meeting for want of notice. Referring to the provisions of the Companies Act, 1956, decide:
(i) Whether the objection raised by the two absentee directors is valid?
(ii) Would your answer be the same in case the Secretary of the company, instead of sending notice on a usual format to the individual directors, sent a copy of the
Articles of Association to each one of the directors?

Section 286 of the Companies Act, 1956 does not specify any form of notice or period of notice. Usually, a week’s notice is considered sufficient. However, if the Articles provide that Board Meetings will be held on fixed days of every month or where the directors are duly informed that in future all meetings of the Board will be held on a fixed day of every month, it will be sufficient compliance with the statute [A. Chettiar Firm v. Kaleshwar Mills]. But, even where meetings are held on a fixed day of every month, a notice is usually sent to the directors as a reminder.