Mumbai University Solved Question Papers
Contract II
Previous Year Question Paper with Solution
LLB 3 years · Sem 4
2021-22 Examination
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LLB 3 years Sem 4 Contract II 2021-22 Question Paper with Solutions
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First published on munotes.in on 24 October 2026.
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Model answers written and edited by the munotes.in editorial desk.
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The question paper reproduced here is the paper as set by the University of Mumbai at the 2021-22 examination.
Contents
The questions below are the paper as the University of Mumbai set it at the 2021-22 examination, in the order it was set.
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The Paper as Set
The questions in this volume are the questions asked at the 2021-22 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.
Total marks 60 · 31 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.
MCQ
Multiple choice questions
30 Marks - 1.5 marks each
1Suresh enters into a Contract with Ramesh to compensate against the consequences of any proceedings which Kamlesh may take against Ramesh in respect of a certain sum of 5 lakh rupees. This is a . (a) Contract of agency (b) Contract of Indemnity (c) Contract of Guarantee (d) Contract of Insurance
Answer
Answer: (b) Contract of Indemnity.
Section 124 of the Indian Contract Act, 1872 calls a contract "by which one party promises to save the other from loss caused to him by the conduct of the promisor himself, or by the conduct of any other person" a contract of indemnity. Suresh promises to save Ramesh from the loss that Kamlesh's proceedings may cause. This is the illustration to section 124, with new names and 5 lakh rupees in place of 200 rupees.
Why the others are wrong.
- (a) Agency. Suresh is not employed to act for Ramesh in dealings with third persons (section 182).
- (c) Guarantee. A guarantee answers for a third person's debt "in case of his default" (section 126). Kamlesh owes nothing; he is only the possible source of a loss.
- (d) Insurance. A policy of insurance is one kind of indemnity, but nothing here is a policy issued against a risk.
Gajanan Moreshwar Parelkar v. Moreshwar Madan Mantri, AIR 1942 Bom 302. At the defendant's request the plaintiff had mortgaged his property for the defendant's debts, and the defendant promised to clear them. The Bombay High Court held that the plaintiff could enforce that promise before paying anything. Once his liability had become absolute, the indemnifier had to pay it off.
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