Subject : Corporate Law

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Name : Leema Noori                                                                                                          Marks : 80
Course : Bachelors in Management Studies (BMS)
Subject : Corporate Law


Answer the following question.


Question.1. Explain delivery (10 marks)

Answer:Delivery is the process of transporting goods from a source location to a predefined destination. There are different delivery types. Cargo (physical goods) are primarily delivered via roads and railroads on land, shipping lanes on the sea and airline networks in the air. Certain specialized goods may be delivered via other networks, such as pipelines for liquid goods, power grids for electrical power and computer networks such as the Internet or broadcast networks for electronic information.

Question.2. How issue of securities to person resident outside India take place (10 marks)

Answer:The Foreign Exchange Management Act (FEMA), 1999:  is an Act of the Parliament of India to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India.

As per the Notice Issued by the Government of India


Question.3. How to maintain liquid assets (10 marks)

Answer:The term liquidity refers to how fast something can be turned into cold, hard cash; the kind you stick in your wallet or cash exchange for something else.  Liquid assets are those that are thought to be turned to cash or purchasing power immediately.

 On one end of the scale of all assets are the dollar bills and coins you have stuffed in a cookie jar or mattress at home.  These are the most liquid assets, meaning you can immediately spend them, but are the least safe because they can be destroyed by fire, misplaced, or stolen.  On the other end of the scale are assets such as real estate, which can take


Question.4. Write the distinguishing points of void agreement and voidable contract (10 marks)

Answer:It is very usual that people get easily confused between a void contract and voidable contract, although they both are two different types of contract. Void Contract is the contracts that cannot be enforceable, but the Voidable Contract is the contract in which one party has the right to enforce or rescind the contract. Now, moving on to our topic, the difference between Void and Voidable Contract.


Question.5. Threat to commit suicide isit coercion? (10 marks)

Answer:Threat to file a suit. To threaten a criminal or civil prosecution does not constitute coercion because it is not an act forbidden by the Indian Penal Code. But a threat to file a suit of a false charge constitutes coercion, for such an act is forbidden by the I.P.C. (Askari Mirza vs Bibi Jai Kishori)

Threat to commit suicide. Neither suicide nor threat to commit suicide is punishable under the Indian Penal Code: Only an attempt to commit


Question.6. Classify Mercantile or commercial agents (10 marks)

Answer:A mercantile agent is a person who is appointed by those in business to act on their behalf or to represent them in dealing with other persons. The person on whose behalf he acts as an agent is known as the ‘Principal’.

A mercantile agent possesses the following characteristics:

(a) He has the authority to buy and sell goods on behalf of his principal or to consign them for the purpose of sale;
(b) He does not do business for himself, but he only represents his principal in all business dealings;
(c) He is a link between the principal and the third


Question.7. What are the exceptions to transfer of title by nonowners.(10 marks)

Answer:The person who owns legal title to property, whether real estate or some item of personal property, owns and possesses the property until she decides to transfer the title to somebody else. Accordingly, an unauthorized transfer of title by anybody other than the owner generally has no legal effect, which means the owner continues holding title to the property while the person who received the invalid transfer of title owns nothing. The law does provide some exceptions to this general rule, though.

Good Faith Purchaser: The law will sometimes


Question.8. Discuss power to impose lesser penalty (10 marks)

Answer:The Commission may, if it is satisfied that any producer, seller, distributor, trader or service provider included in any cartel, which is alleged to have violated section 3, has made a full and true disclosure in respect of the alleged violations and such disclosure is vital, impose upon such producer, seller, distributor, trader or service provider a lesser penalty as it may deem fit, than leviable under this Act or the rules or the regulations: Provided that lesser penalty shall not be imposed by the Commission in cases where

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