Q.

1 A power of attorney was given from amol to bhushan, his agent to present the
document for registration. Amol died before the document was presented for registration.
The registrar was aware of the death of A and registered the document. Examine the
position

Answer

The document is not validly registered as the register knew of the death of A.

sec 209, to protect and preserve the interests of the principal in case of his death so the lawer will
be liable all legal actions for that registration.

Q.2. A engaged B, an auctioneer to sell some property on the terms that he should receive his
due commission of Rs. 500. B , however received Rs. 200 as commission from the purchaser
secretly. Discuss the rights of A and B.

Answer

A is entitled to recover from B both the sum i.e 500 and 200 an agent occupies fiduciary
position. He must not except with the knowledge and assent of the principal make any profit
beyond the agreed commission or remuneration.

In this an agent occupies fiduciary position he must not, except with the knowledge and
assent of the principal ,make any profit beyond the agreed commission and remuneration.

Andrews vs Ramsay & company 1903

Q.3. P. a solicitor entrusted all his work to his clerk and rarely attended to it himself. The clerk
induced to sign a conveyance of his property under the impression that it was mere a power of
attorney. Later he sold the property and absconded with the money. The client sues P. Is P liable?

Answer

Yes, P is liable because where an agent does more than he is authorized to do, and what he does
beyond the scope of his authority cannot be separated from what is within it, the principal is not
bound to recognize the transaction. SEC. 228

Lloyd v Grace smith & co. 1912

Q.4. At a Sale by auction without reserve the auctioneer is instructed not to sell for less than a
certain price. The auctioneer accepts the highest bonafide bid which is lower than that price. Is
the auction valid?

Answer

YES , an agent is bound to conduct the business of his principal according to the directions given
by the principal, or, in the absence of any such directions, according to the custom which
prevails in doing business of the same kind at the place where the agent conducts such business

Q.5. P instructed his agent A to sell a picture at a named price. P died. Afterwards, before the
fact of his death became known to A, A sold and delivered the picture. Was this sale binding on
the P’s executors?

Answer

Yes, as the revocation of A’s authority on the death of P takes effect from the tie of Death pf P
becomes known to A. SEC. 209 When the termination takes place ,the agent must take, on
behalf of the representatives of his late principal , all reasonable steps for the protection and
preservation of the interest
Q.6. A enters into a contract with B to sell him 200 bales of cotton. But afterwards, he discovers
that B was acting as an agent of C. discusses what A can sue.

Answer

A may sue either B and C or both for the Price of the cotton.
If the principal discloses himself before the contract is completed, the other contracting party
may refuse to fulfill the contract, if he can show that, if he had known who was the principal in
the contract, or if he had known that the agent. was not a principal, he would not have entered
into the contract.

Q.7. P sends his agent A to buy certain goods on credit for him. Later he pays for the goods. On
another occasion, he again sends A to buy goods but pays sufficient amount to A for the purpose.
A, however buys goods on credit from the old merchant. After some time, A runs away. Is P
bound to pay the merchant?

Answer

Yes, P is bound to pay on the holding out. P sends his agent A to buy certain goods on credit for
him. But after some time, A runs .In this case P is bounded to pay on the ground of holding out.

Part-B
Q.8. A agrees to sell his two second hand cars on the terms that the price was to be fixed by C. B
takes the delivery of one car immediately. C, however, refuses to fix the price. A asks for the
return of the car already delivered whereas B insists on the delivery of the second car to him for
a reasonable price of both the cars. What shall B have to pay?
Answer

B shall have to pay for the car already delivered a reasonable price . A cannot ask to return ,as
regards second car , B cannot insist on its delivery to him since the contract become void.

If the third party is prevented from making the valuation by the fault of the seller or buyer, the
party not in fault may maintain a suit for damages against the part in fault.{sec.10 (2)}.

Q.9. A businessman sold 20 quintals of mustard oil to B. Before it could be delivered, the
government of India requisitioned the whole quantity lying with the businessman in public
interest. B wants to sue the businessman for the breach of the contract. Advice B If he really can
sue?

Answer

The contract become void because of supervening impossibility because in this case there is no
fault of any of them nor the buyer or the seller

Q.10. A sold to B 200 bags of groundnuts of a special variety which were lying in a warehouse.
Unknown to A, 50 bags have already been stolen. A tendered the delivery of 150 bags. Discuss if
the sale is void?

Answer

Sale is void and B could not be compelled to take the remainder because in the case of
indivisible lot of specific goods if only a part of the goods has perished at the time when the
contract is void.

Q.11. A agrees to sell 100 tins of ghee to B out of 500 tins which are lying in the godown.
Unaware to both A and B, the tins have been destroyed due to breaking out of fire in the
godown. Discuss if A should pay for the breach?
Answer

No, this contract is void due to supervening impossibility. contract for sale of specific goods is
void if at the time when the contract is made,the goods have,without the knowledge of the seller,
perished.

Q.12. A person A buys a television set from B, who has in turn hired it from C. A has no
knowledge of this deal between B and C. does he gets the title of the television?

Answer

No, as the hire purchaser in this case the seller is not having the owner ship of television so that
for the consumer will not get the title of television

Q.13. A cargo of wheat was sold. However, due to negligence in rainy season, fermentation took
place hence they could only be used now for making cheap methanol. Is the contract void?

Answer

Yes , this contract is void because sale where there is a contract of sale of goods by description
there is implied condition that goods correspond with description.

Bowes v ShAnd 1877

Q.14. Balaji industries - partnership firm was dissolved and surplus assets were divided among
the partners in the same form. Is this a contract of sale?

Answer

It is not a sale as the partners themselves were owners of the goods and they could not be both
buyer and seller

State of Gujarat v Raman lal & Co. 1965