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Legal Aspect of Business

Dec 2025 Examination

 

 

Q1. Ravi and Priya want to start a company to sell organic food products. Their consultant tells them they must prepare and register a Memorandum of Association (MOA) with the Registrar of Companies.

Ravi thinks the MOA is just a registration formality. Priya says it is important because it decides what the company can and cannot do.

A year later, they plan to start a travel agency under the same company. Can they do this without changing their MOA? Explain the purpose of registering an MOA and advise them. (10 Marks)

 

Q2(A). Ravi agrees to supply 1,000 chairs to Meera for Rs.5,00,000. After delivering 600 chairs, Ravi asks for payment for those. Meera refuses, saying the contract was for the full 1,000 chairs and she will only pay after all are delivered.

Later, Meera sells 500 of the chairs already delivered.

Can Ravi claim payment for the 600 chairs? Explain using the concept of partial performance under the Indian Contract Act, referring to when such partial performance can be accepted or rejected. (5 Marks)

 

 

 

 

Q2(B). Ramesh, a shopkeeper, is unconscious after a road accident. His neighbour Suresh takes him to a private hospital, which immediately provides emergency treatment worth Rs.50,000. After recovering, Ramesh refuses to pay, saying there was no agreement between him and the hospital. The hospital asks Suresh to pay, but Suresh says he only helped and should be reimbursed.

Advise the hospital and Suresh using the concept of quasi-contract under the Indian Contract Act. (5 Marks)

 

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