Certificate in Accounting and Finance Stage Examination
Total Marks:25
Ch 6 Time Allowed:40 Minutes
Business Law by Sir Osama Waheed
Instructions to examinees:
(i) Each Question/part will start from a new page otherwise question will not be marked.
(ii) Using any ink other than black shall result in cancellation of paper.
(iii) Writing page number on top of the page is compulsory for the facilitation of marking
Q.1 What are the essential requisites of a valid offer of performance? What is the
effect of refusal by the promisee to accept tender of goods and money, from the
promisor? (07)
Q.2 Rizwan and Tahira jointly borrowed a sum of Rs. 950,000 from Sajid and Mubin
jointly. On due date, Rizwan and Tahira defaulted in making the payment. Sajid,
without Mubin’s knowledge, filed a suit against Rizwan and Tahira for the
recovery ofthe amount due.
Under the provisions of the Contract Act, 1872 briefly describe
whether Sajid would succeed in his case. (02)
Q.3 Under the provisions of the Contract Act, 1872, list the acceptable grounds of
supervening impossibility. (03)
Q.4 In January 2023, Zenith Studios (ZS) signed a contract with Omar, a well-known
photographer, to publish his first photo book, which was expected to showcase a
series of his latest works. ZS advanced Rs. 100,000 to Omar, who committed to
delivering the finalized photographs by April 2023. ZS also agreed to invest Rs. 1
million in marketing efforts for the book's release.
By February 2023, Omar's work started gaining widespread recognition as
several of his photographs went viral on social media. Seizing the moment, ZS
accelerated their marketing campaign for the photo book and secured pre-orders
for 100,000 copies, projecting a profit of Rs. 10 million.
In March 2023, Omar unexpectedly informed ZS that he would not be able to
complete the photo book and returned the Rs. 100,000 advance payment.
According to the Contract Act, 1872, evaluate the current status of the
contract between ZS and Omar and discuss the possible legal
remedies ZS might pursue. (06)
Q.5 Mark the correct answer: - (07)
1.Contract is said to be performed when
(a)One party fulfils his promise
(b)Both promisors perform their respective promises
(c)Law dispenses with performance
(d)One of the promisor makes attempted performance
2.Valid tender requires
(a)To be unconditional
(b)To be made at proper place and time
(c)To be made for whole quantity / obligation
(d)All of the above factors
3.Mr. A agrees to supply 100 bags of tea to Mr. B @ Rs.1000/- per Bag on a
particular date. Mr. B was to pay subsequently after the supply of tea. On due date
Mr. A supplies tea and Mr. B makes payment.
But, if on due date, Mr. A takes the contracted quantity of tea to Mr. B’s warehouse
and Mr. B refuses to accept the delivery. State the legal position.
(a)1st case is attempted performance and 2nd is voidable contract
(b)1st case is voidable contract and 2nd is attempted performance
(c)1st case is actual performance and 2nd is attempted performance
(d)1st case is attempted performance and 2nd is actual performance
4.Payment received by the creditor must be appropriated for discharging debt
(a)Which has been borrowed at last
(b)According to instruction given by the debtor
(c)In a logical sequence of the debts
(d)Which has been borrowed at first
5.Mr. X promises to sell standing timber to Mr. Y. As per the terms of a contract
Mr. X will cut and cord the timber, whereupon Mr. Y will take it away and pay for
it. Mr. X cords only a part of timber and neglects to cord the rest. Mr. Y wants to
initiate legal proceedings. Suggest him the legal action.
(a)Mr. Y may avoid contract
(b)Mr. Y may claim compensation from Mr. X
(c)Mr. Y does not have any legal remedy
(d)Mr. Y may avoid the contract and claim compensation from Mr. X
6.Contract is said to be discharged (not needed to be performed) by mutual
agreement when:
(a)Change in a contract is made without free consent of the parties
(b)Change in a contract is made by one of the parties
(c)Old contract is substituted by new contract
(d)New contract is substituted by old one
7.Acceptance of lesser performance by promisee is
a)Void
b)Invalid
c)Valid
d)Not Allowed
