LL. B. III Term Paper – LB – 304 – Special Contracts (Partnership and Sale of Goods)

Topic 1 – Concept of Agency and The Nature of Partnership
‘Agent’ and ‘Principal’ defined; Who may employ an agent; who may be appointed as agent;
Rights, duties and liabilities of principal and agent, scope and limitation, ratification and
revocation of authority; appointment of sub-agent (The Indian Contract Act, 1872). Definition
of “partnership”, “partner”, “firm” and “firm name” (section 4); partnership not created by
status (section 5); Mode of determining existence of partnership (section 6); partnership at
will (section 7); Particular partnership (section 8), Concept and nature of Unlimited Liability
Partnerships; Distinction between a partnership, a limited liability partnership and a company;
Narandas Morardas Gajiwala v. SPAM Papammal, AIR 1967 SC 333
Kuchwar Lime and Stone Co. v. Dehri Rohtas Light Rly. & Co. Ltd.,
AIR 1969 SC 193
Lakshminarayan Ram Gopal v. Govt. of Hyderabad, AIR 1954 SC 367
Snow White Indl. Corpn. v. Collector of Central Excise,
AIR 1989 SC 1555

1. K. D. Kamath & Co. v . CIT(1971) 2 SCC 873
2. Cox v. Hickman(1860) 8 H.L.C. 268
3. Mollwo, March & Co. v. The Court of Wards(1872) L.R. 4 P.C. 419

Topic 2 – Relations of Partners to One Another and to the Third Parties
General duties of partners (section 9); duty to indemnify for loss caused by fraud (section 10);
determination of rights and duties of partners by contract between the partners (section 11);
the conduct of the business (section 12); Mutual rights and liabilities (section 13); The

property of the firm (section 14); Application of the property of the firm (section 15);
Personal profits earned by partners (section 16); Rights and duties of the partners (section 17).
Partners to be agent of the firm (section 18); Implied authority of partner as agent of the firm
(section 19); Extension and restriction of partner’s implied authority (section 20); Partner’s
authority in an emergency (section 21); Mode of doing act to bind firm (section 22 Holding
out (section 28); Right of transferee or a partner’s interest (section 30); Minors admitted to the
benefits of partnership.

4. Miles v. Clarke[1953] 1 All ER 779
5. Trimble v. Goldberg(1906) AC 494 (PC)
6. Holme v. Hammond(1872) L.R. 7 Ex. 218; 41 L.J. Ex. 157
7. Rhodes v. Moules(1895) 1 Ch. 236 (CA)
8. Hamlyn v. Houston & Co.(1903) 1 K.B. 81
9. Tower Cabinet Co., Ltd v. Ingram(1949) 1 KBD 1032
10. Shivagouda Ravji Patil v. Chandrakant Neelkanth SadalgeAIR 1965 SC 212

Topic 3 – Incoming and Outgoing Partners and Registration of a Firm
Introduction of a partner (section 31); Retirement of a partner (section 32); expulsion of
partners (section 33); Insolvency of a partner liability of estate of deceased partner (section
35); rights of outgoing partner to carry on competing business (section 36)
Application for registration (section 58); Registration (section 59); Disabilities attach with
non-registration (section 69)

11. CIT v. Jayalakshmi Rice and Oil Mills Contractor Co.AIR 1971 SC 1015 : (1971) 1 SCC 280
12. Jagdish Chandra Gupta v. Kajaria Traders (India) Ltd.AIR 1964 SC 1882
13. Haldiram Bhujiawala v. Anand Kumar Deepak Kumar(2000) 3 SCC 250
14. M/S Umesh Goel v Himachal Pradesh Cooperative Housing Society Ltd.(2016) 11 SCC 313

Topic 4 – Dissolution of a Firm
Dissolution of a firm (section 39); Dissolution by agreement (section 40); Compulsory
dissolution (section 41); Dissolution on the happening of certain contingencies (section 42);
Dissolution by notice of partnership at will (section 43); Dissolution by the Court (section
44); Liability for acts of partners done after dissolution (section 45); Right of partners to have
business wound up after dissolution (section 46); Continuing authority of partners for purpose
of winding up (section 47); Mode of settlement of accounts between partners (section 48).

15. Saligram Ruplal Khanna v. Kanwar RajnathAIR 1974 SC 1094
16. M/s. Juggilal Kamlapat v. M/s. Sew Chand BagreeAIR 1960 Cal. 463
17. Sharad Vasant Kotak v. Ramniklal Mohanlal Chawda(1998) 2 SCC 171
18. S.V. Chandra Pandian v. S.V. Sivalinga Nadar(1993) 1 SCC 589

Topic 5 – General : Formation of Contracts of Sale
The Sale of Goods Act, 1930 (sections 1-10)
(a) Concept of ‘Goods’

19. R.D. Saxena v. Balram Prasad Sharma(2000) 7 SCC 264
20. Commissioner of Sales Tax, M.P. v. M.P. Electricity Board, Jabalpur(1969) 1 SCC 200
    
    (b) ‘Sale’ and ‘Agreement to sell’

21. State of Madras v. Gannon Dunkerley & Co. (Madras) Ltd.1959 SCR 379
    
    (c) Statutory Transactions
22. Vishnu Agencies (P) Ltd. v. Commercial Tax Officer(1978) 1 SCC 520 : AIR 1978 SC 449
23. Coffee Board, Karnataka v. Commissioner of Commercial TaxesAIR 1988 SC 1487
    
    (d) Contract for ‘Works’/ ‘Labour’(Pre and Post 46th Constitutional Amendment)
24. Commr. of Commercial Taxes v. Hindustan Aeronautics Ltd.(1972) 1 SCC 395 : AIR 1972 SC 744
25. Sentinel Rolling Shutters and Engg. Co. (P) Ltd. v. CST(1978) 4 SCC 260 : AIR 1978 SC 545
26. Northern India Caterers (India) Ltd. v. Lt. Governor of Delhi(1978) 4 SCC 36 & (1980) 2 SCR 650
27. State of Karnataka v. Udipikrishna Bhavan(1981) 3 SCC 76
28. M/s. Larsen & Toubro Limited V. State of Karnataka(2014) 1 SCC 708
29. State of Karnataka and Ors. v. Pro Lab and Ors.AIR 2015 SC 1098
    

Topic 6 : Conditions and Warranties

Stipulations as to time; Implied Conditions and Warranties – as to title, quality, fitness, etc.,
Sale by Description and by Sample; Treating conditions as warranties
The Sale of Goods Act, 1930 (sections 11-17, 62, 63)

Priest v. Last (1903) 2 KB 148

30. British Paints (India) Ltd. v. Union of IndiaAIR 1971 CAL. 393
    Niblett v. Confectioners Material Co. Ltd. (1921) 3 KB 387
    Wallis v. Patt (1911)AC 394
    Baldry v. Marshall (1925) 1 KB 260 (CA)
    
    Doctrine of Caveat Emptor
31. Jones v. Just(1868) 3 Q.B. 197
32. Richard Thorold Grant v. Australian Knitting Mills, Ltd.AIR 1936 PC 34
    Bristal Tramways v. Fiat Motors Ltd. (1910) 2 KB 831

Topic 7 : Effects of the Contract of Sale
Transfer of property; Doctrine of Nemo dat quod non habet – sale by a person other than the
owner, sale by joint owner, sale by mercantile agent, sale under voidable contract, sale by
seller or buyer in possession after sale; sale in Market Overt
The Sale of Goods Act, 1930 (sections 18-30)

33. CIT v. Mysore Chromite Ltd.(1955) 1 SCR 849 : AIR 1955 SC 98
34. P.S.N.S. Ambalavana Chettiar v. Express Newspapers Ltd.(1968) 2 SCR 239 : AIR 1968 SC 741
35. Agricultural Market Committee v. Shalimar Chemical Works Ltd.(1997) 5 SCC 516 : AIR 1997 SC 2502
36. Pearson v. Rose & Young, Ltd.(1950) 2 Ch. D. 1027

Topic 8 : Rights of Unpaid Seller
Who is an un-paid seller ? Un-paid Seller’s Rights – Right of lien, Right of stoppage in
transit; Transfer of goods by buyer and seller
The Sale of Goods Act, 1930 (sections 45-54)

37. Mysore Sugar Co. Ltd., Bangalore v. Manohar Metal Industries,Chikpet, BangaloreAIR 1982 Kant. 283