Group ‘A’

[ All the past question solution are provided below]

1. Write down the essential elements of a valid contract.

Answer: The essential elements of a valid contract are:

• Two parties
• Offer and acceptance
• intention to create legal obligation
• meeting of minds
• consideration
• free consent
• contractual capacity
• legality of object
• not expressly declared void
• possibility to perform
• certainty and clarity
• legal formalities

2. Who is the person of unsound mind?

Answer: The person who have no rational judgement and cannot understand the terms and conditions of contract is a person of unsound mind. For example: idiot, lunatics, drunkards.

3.Why free consent is important?

Answer: Free consent is important for the contract to be legally enforceable and valid. Consent or agreement without any control of other is one of the essential element of a valid contract.

4. What is prospectus?

Answer: Prospectus is a formal document which a company issues and it provides information about the status of company and helps the investors in making informed decision.

5. What is communication of offer?

Answer: If the offeror clearly conveys his intention to create legal obligation to the offeree, it is communication of offer. The communication of offer is complete when it comes to the knowledge of offeree.

6. Give the meaning of arbitration.

Answer: Arbitration is one of the popular methods of Alternative Dispute Resolution(ADR). It is a legal technique for the resolution of conflict or dispute outside the court.

7. State the types of breach of contract.

Answer: The types of breach of contract are;

• Actual Breach : When parties to a contract does not perform his liability under a contract at the time when it is due, it is actual breach.
• Anticipatory Breach: When a party to a contract has refused to perform the contract before the due date, it is anticipatory breach.

8. Write down the modes of termination of contract.

Answer: The modes of termination of contract are;

• By performance
• By mutual agreement
• By impossibility
• By lapse of time
• By operation of law
• By breach of contract

9. Define insolvency.

Answer: It is the condition of being unable to pay debts as they fall due or in the usual course of business.

10. State the nature of performance of contract.

Answer: Performance of contract is the manner to achieve the manifested objectives of the contract. it includes;

• Types of performance
• Who should perform the contract?
• What to perform?
• When to perform?
• How to perform?

Group ‘B’

[This past question solution is of November 2024].

11. Discuss the importance of legal environment for business.

Answer: Importance of legal environment of business is based on following points;

• Basis for the commencement of business: Any kind of business before starting must be registered in the government office as per the policies. Business must fulfill all legal formalities and unfair practices will be controlled by government.
• Affects the operation of business: A businessman must follow the legal provisions. violation of law amounts to penalty or punishment.
• Provides stability: Legal mistakes may make you liable to punishment and threat to reputation of business. such an act gives your business a shorter life.
• Promotes expansion of business operation: The knowledge of law enables a businessman to enter into a number of contracts of business.

12. Describe the various types of law.

Answer: The various types of law are as follows;

a. On the basis of nature

I. Substantive nature

ii. Procedural nature

b. On the basis of jurisdiction

I. criminal

ii. civil

c. On the basis of legal effect

I. Private

ii. public

d. On the basis of territory

I. National

ii. international

13. Mention the rules regarding contingent contract.

Answer: The rules regarding contingent contract are given below;

I. on the happening of future uncertain event: In case of a contract has been concluded to do or not to do something, if any future uncertain event happens, the contract shall not create liabilities unless and until the event happens.

ii. on the nonhappening of future uncertain event: In case of a contract contingent to do or not to do anything if an uncertain event does not happen in future, liability under the contract shall only emerge when the happening of that event becomes impossible and not before.

iii. on the happening of event within an fixed time: in case of a contract contingent upon the happening of an event within an specified time becomes void if the event has not happened at the expiry of the fixed time or after the time, the event becomes impossible.

14. Explain about the quasi contract.

Answer: A quasi contract is not created by the meeting of mind or consensus of the parties, but comes into existence when one of the parties’ act activates the law. Here, the parties of a quasi contract, sometimes are unknown to each other. A quasi contract is of a unilateral nature. Quasi contract is based on the principle of unjust enrichment and connected with the concept of restitution.

15. Discuss the roles of the liquidator.

Answer: The roles of liquidator are as follows:

• To institute or defend any case of legal action on behalf of company.
• To appoint employees to assist in the discharge of the functions.
• To borrow loans against security of the assets of the company.
• To examine the business and financial situation of the company

16. Explain about the business ethics issues in Nepal.

Answer: Busines ethics refers to the principles and standards that determine acceptable conduct in business transactions. Some of the business ethics issues in Nepal are;

• Corruption : lack of enforcement of anti corruption laws and widespread bribery and corruption in organizations.
• Gender Discrimination: Unequal pay between man and woman workers, sexual harasments.
• lack of corporate social responsibility (CSR): More focused on profit rather than social responsibility.
• lack of ethical leadership: Nepotism and favoritism along with prioritization of short term profits over long term.

17. Write about the right to information.

Answer: It refers to the right of citizen to ask for and obtain information of public importance held in the public bodies. Right to information Act(RIA), 2064 was guaranteed as a fundamental right for the first time in the constitution of kingdom of Nepal, 2047.This act was enacted with the objectives of making functions of the state open and transparent in accordance with the democratic system and making responsible and accountable to the citizens.

Group ‘C’

[Note: This past question solution is just serving as a guide for you.]

18. Discuss the rights and duties of an unpaid seller.

Answer: The rights and duties of an unpaid seller are as follows:

• Right against the goods: The unpaid seller is entitled to enjoy the Right of lien, Right of stoppage of goods in transit, Right of resale whether the ownership passed to the buyer or not.
• Right against the buyer personally: The unpaid seller is entitled to the Suit for price, suit for damage or non-performance of contract, suit for special damage and interest against the buyer.

Duties of an unpaid seller:

• Duty to inform buyer about resale
• If the payment is made by buyer, the goods must be delivered by the seller.
• Good faith must be maintained and seller must not misuse the right to harass the buyer.

19. Explain the civil procedures in Nepal.

Answer: The civil procedures in Nepal are step by step explained below;

• Complaint: An aggrieved party may file a complaint in the judiciary bodies.
• Summon: The notice is issued to the defendant, mentioning subject matter and time to be attended in the court. The notice is called summon.
• Pleading: Both the parties have the right to prove their claim in front of the bench. This kind of procedure of discussion is pleading.
• Proof and evidence: The physical evidence presented from the sides of parties is proof. Example: Witness, written proof.
• Judgement: The judicial authority gives verdict on the basis of claims of the parties, examination of proof. It is the final decision.
• Execution: The last process is to execute the verdict which is made by the court. In this stage, victim party gets relief and the culprit gets punishment.

20. Describe the procedures relating to the incorporation of company.

Answer: Here are the procedures relating to the incorporation of company;

• Application for incorporation
• Refusal to register
• incorporation by registration
• issue of certificate of incorporation
• issue of certificate of commencement of business
• registered company regarded as corporate body
• number of shareholders
• condition to be compiled with by an incorporated company
• specific company to be incorporated as a public company

[ you also need to explain the above given points]

21. What are the characteristics of a common carrier? Briefly explain.

Answer: Section 2 (6) of Nepal Carrier and Transportation Act, 2049 defines a ‘public carrier’ that, “The carrier, which is used for transportation services, is a public carrier or common carrier”. A common carrier can be classified into two classes- a) carrier for passengers

b) carrier for goods

Public carrier provides service to the common people, without any discrimination, regularly, through its customary route, for fare, and is regulated and controlled by Nepal Carrier and Transportation Act 2049. Right to receive fares, additional fare, Right to refuse to carry goods, Right to sell goods are some of the rights of a public carrier.

For past question solution of other subjects: https://managementstudent.com/2025/01/29/past-questions-solution-bba-3rd-semester/

For model questions you can visit: https://www.fomecd.edu.np/cms/dhurbas/BBA%20BIM%20and%20BBM%204th%20Sem%20Model%20Question.pdf