(a) define guarantee and explain how it differs from an indemnity contracts. (b) c and d go into a shop. C says to the shopkeeper ‘let him (d) have the goods, and if he does not pay you, i will. What kind of contract is this? would it make any difference in your answer if c said to the shopkeeper ‘let him (d) have the goods, i will see you paid’.

(a) A guarantee is a contract by one person to be answerable for the debts, de-fault or miscarriage of another, in case the latter should fail to perform his engagement. It differs from an indemnity contract in that: only two Open …

(a) What is meant by an indorsement on a bill of exchange, and in what circumstances is indorsement necessary? What is the legal position of an indorser? (b) A bill is payable to ‘Andrew or Order’. It is stolen from Andrew and the thief forges Andrew’s indorsement and indorses it to B, who takes it for value and in good faith. Does B acquire a good title?

(a) An indorsement is effected by the signature of the payee usually on the back of the bill. Bills payable to a specified person or to his order can be negotiated only by indorsement and delivery, i.e. unless the holder Open …

. (a) How may agency arise by implication? (b) J was P’s agent and on P’s behalf made several contracts with T over period of some years. P later terminated J’s agency but failed to notify 7′. J continued to deal with T in his own name and on his own behalf, but became insolvent. T as a result suffered losses and now claims to be entitled to damages by way of compensation from P. Advise P as regards to his liability

(a) An agency by implication will arise where the principal places the agent in a position where it would be normal for the agent to contract on behalf of the principal although no express authority is conferred on him. For Open …

(b) Peteftan infant obtained a bank overdraft by pretending that he was over eighteen. The bank has informed his father that unless the overdraft is repaid, they will prosecute Peter for money obtained by deception. In great distress his father executes a deed to repay the overdraft himself Is he liable?

(b) Section 1 of the Infants Relief Act 1874, rendres all contracts entered into with an infant for repayment of money as absolutely void, and does not recognize any exception even if an infant obtains a loan of money by Open …

(a) S, an owner of a small business obtained goods on credit from John by sending an order on letter paper headed with the name of well established firm B& Co. and giving an address for delivery near to the premises of real B& Co. If S has sold the goods to C, who took them in good faith, can John recover the goods from C?

(a) A person may escape his liability under an apparently               contract by proving that he contracted under a mistake of fact, and his mistake valid was so fundamental that it affected the root of the contract. Where a party to Open …