Mumbai University Solved Question Papers
Contract II
Previous Year Question Paper with Solution
BLS LLB 5 Years · Sem 8
Oct 2025 - 75/25 Examination
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BLS LLB 5 Years Sem 8 Contract II Oct 2025 - 75/25 Question Paper with Solutions
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First published on munotes.in on 24 October 2026.
Published by munotes.in, Mumbai.
Model answers written and edited by the munotes.in editorial desk.
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The University does not publish an official answer key for this paper. The answers in this volume are model answers, written to show how a full-mark answer is built. They are a study aid, not an authority on what an examiner marked.
The question paper reproduced here is the paper as set by the University of Mumbai at the Oct 2025 - 75/25 examination.
Contents
The questions below are the paper as the University of Mumbai set it at the Oct 2025 - 75/25 examination, in the order it was set.
MarksPage
MarksPage
The Paper as Set
The questions in this volume are the questions asked at the Oct 2025 - 75/25 examination, reproduced as the University of Mumbai set them, in the order it set them. Nothing has been reworded, added or left out. Only the answers are ours. See the original question paper.
Duration 2½ hours · Total marks 75 · 21 questions answered
How to use this volume
Solve the paper first, under exam conditions and against the clock. Then read the answers here and mark your own. Reading a solution before attempting the question feels productive and teaches very little, because recognising an answer is not the same as being able to write one.
Q.1
Q.1: Answer any SIX in one-two sentences
12 Marks - 2 marks each
(1)What is partnership by holding out?[2]
Answer
Partnership by holding out arises under section 28 of the Indian Partnership Act, 1932. A person may represent himself as a partner in a firm, or knowingly let himself be represented as one. He then becomes liable as a partner to anyone who gave credit to the firm on the faith of that representation.
The section's words. Section 28(1) covers anyone who "by words spoken or written or by conduct represents himself, or knowingly permits himself to be represented, to be a partner in a firm". He is liable "whether the person representing himself or represented to be a partner does or does not know that the representation has reached the person so giving credit".
The two things that must be proved.
- A representation that he is a partner, made by him or knowingly allowed by him.
- Credit given to the firm on the faith of it by the person who now sues.
What it does not do. Holding out is a rule of estoppel (a rule that stops a person from denying what he led others to believe). It does not make him a real partner. He gets no share in the profits and no right to manage the business. He is only liable to the person who relied on him.
A limit (section 28(2)). The business may continue in the old firm name after a partner's death. That alone does not make his estate liable for later acts of the firm.
Meenakshi Achi v. P.S.M. Subramanian Chettiar, AIR 1957 Mad 8. A creditor kept his money on deposit with a family money-lending firm. A son had been admitted to the benefits as a minor. He later acted as a partner and represented himself as one to everybody, including this creditor. The Madras High Court held him liable under section 28. Both elements were proved: there was a representation, and the creditor gave credit to the firm on its faith by leaving his deposit with it.
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