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Contract II
Previous Year Question Paper with Solution
LLB 3 years · Sem 4
May 2019 Examination
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LLB 3 years Sem 4 Contract II May 2019 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 May 2019 examination.
Contents
The questions below are the paper as the University of Mumbai set it at the May 2019 examination, in the order it was set.
MarksPage
MarksPage
The Paper as Set
The questions in this volume are the questions asked at the May 2019 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
Instructions printed on the paper
- N.B: (1) All questions are compulsory. (2) Figures to the right indicate marks. (3) Give reasons / Case laws wherever necessary.
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 1-2 sentences
20 Marks - 2 marks each
(1)Define 'agent' and 'principal' as per ICA, 1872.[2]
Answer
Section 182 of the Indian Contract Act, 1872: "An 'agent' is a person employed to do any act for another, or to represent another in dealings with third persons. The person for whom such act is done, or who is so represented, is called the 'principal'."
The two parts of the definition.
- "To do any act for another". The agent acts in the principal's place. A broker who buys shares for a client is an example.
- "To represent another in dealings with third persons". The agent stands between the principal and outsiders. What he does within his authority binds the principal as if the principal had done it himself (section 226).
Who may be principal and agent. The principal must be of the age of majority and of sound mind (section 183). Anyone may be an agent, but a minor agent is not answerable to the principal (section 184). No consideration is needed to create an agency (section 185).
State Bank of India v. Shyama Devi, AIR 1978 SC 1263. A bank employee, who was a friend of a customer's family, took her cheque and cash to deposit in her account. He misappropriated them and made false entries in her pass-book. She sued the bank. The Supreme Court held that in this errand he acted as the customer's agent, outside the scope of his employment with the bank. So the bank was not liable for his fraud. The case shows that whose agent a person is decides who is bound by his acts.
So the agent is the one who acts or represents, and the principal is the one bound by what the agent does.
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