Mumbai University Solved Question Papers
Contract II
Previous Year Question Paper with Solution
LLB 3 years · Sem 4
Apr 2014 Examination
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LLB 3 years Sem 4 Contract II Apr 2014 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 Apr 2014 examination.
Contents
The questions below are the paper as the University of Mumbai set it at the Apr 2014 examination, in the order it was set.
MarksPage
MarksPage
The Paper as Set
The questions in this volume are the questions asked at the Apr 2014 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 3 hours · Total marks 100 · 25 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 in two sentences
20 Marks - 2 marks each
(a)Explain partners authority in an emergency?[2]
Answer
Section 21 of the Indian Partnership Act, 1932 gives every partner authority, in an emergency, "to do all such acts for the purpose of protecting the firm from loss as would be done by a person of ordinary prudence, in his own case, acting under similar circumstances", and such acts bind the firm.
The three conditions.
- There must be an emergency, a sudden situation that needs action before the other partners can be consulted.
- The act must be done to protect the firm from loss.
- The act must be what a person of ordinary prudence would do in his own case in the same circumstances.
Example. A partner sees that the firm's perishable stock will rot before it reaches the buyer. He sells it at once in the local market. The sale binds the firm, even if the partnership deed restricts his power to sell.
Why it binds the firm. A partner is the agent of the firm under section 18. His implied authority under section 19 covers acts done in the usual way of the business. Section 21 extends that authority to acts outside the usual course where an emergency requires them. It mirrors the agent's emergency authority in section 189 of the Indian Contract Act.
K. D. Kamath & Co. v. Commissioner of Income-tax, (1972) 1 SCR 1034. A deed left the whole management of a six-partner firm to the first partner. The tax authorities said there was no partnership, because mutual agency was missing. The Supreme Court disagreed. It held that the business must be carried on by all or any of the partners acting for all. The managing partner's acts still bound the others. That is mutual agency, and section 21 rests on it: in an emergency, the partner on the spot acts for all.
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