AGENCY AND BUSINESS ORGANIZATION
Table of Contents
COMPREHENSIVE ANSWER QUESTIONS – [20 Marks]
1. [2021 Fall Q. No. 18a]:
Read the case situation given below and answer the questions that follow:
Dipen, a trader in pashmina shawls based in Kathmandu, contacted Pramod, his agent in Delhi, to find a party for the sale of 1000 pieces of Nepal-made shawls. Pramod contracted Kalawati Traders in Delhi, who became ready to buy all the shawls after approving a sample. Accordingly, Pramod, as the agent of Dipen, entered into a contract with Kalawati for the supply of the shawls. However, Pramod failed to deliver the shawls as promised to Kalawati because Dipen sold the shawls to another party in Kathmandu.
As a result of which, Kalawati filed a suit against Pramod, the agent, for the breach of contract. Pramod lost the case and had to pay the damage of Rs. 2,00,000 to Kalawati. He also had to bear Rs. 25,000 as the cost of litigation. He also spent Rs. 5,000 for frequent communications with Dipen. Based on this case, answer the following questions:
Questions:
a. What is agency? Define.
b. What are the claims Pramod as an agent can make against Dipen in the above situation?
c. Can Dipen reject the claims of Pramod? Give reasons for your answer.
2. [2021 Fall Q. No. 18]:
Read the case situation given below and answer the questions that follow:
Dipen, a trader in pashmina shawls based in Kathmandu, contacted Pramod, his agent in Delhi, to find a party for the sale of 1000 pieces of Nepal-made shawls. Pramod contracted Kalawati Traders in Delhi, who became ready to buy all the shawls after approving a sample. Accordingly, Pramod, as the agent of Dipen, entered into a contract with Kalawati for the supply of the shawls. However, Pramod failed to deliver the shawls as promised to Kalawati because Dipen sold the shawls to another party in Kathmandu.
As a result of which, Kalawati filed a suit against Pramod, the agent, for the breach of contract. Pramod lost the case and had to pay the damage of Rs. 2,00,000 to Kalawati. He also had to bear Rs. 25,000 as the cost of litigation. He also spent Rs. 5,000 for frequent communications with Dipen. Based on this case, answer the following questions:
Questions:
i. What are the rights of Pramod as an agent in the given case?
ii. Can Dipen reject the claims of Pramod? Give reasons.
WRITE SHORT NOTES:
- [2023 Fall Q. No. 17a] Know your customer