Organization and Management for Banking Diploma: Part-1 (3)

Category: Bank
Posted on: Monday, September 18, 2017


Q.41 What is sub-agent and substituted Agent?

Ans.: A sub agent is a person employed by and acting under the control of the original agent in the business of the agency (Section191) on the other hand, a substituted agent is named by agent but appointed by the principal. He is liable to principal.


Q.42 What is contract of Sale. How it is different from Agreement to sell?

Ans.: A contract where seller transfers or agrees to transfer property, in goods to the buyer for a price on the other hand, a contract where seller agrees to transfer property in goods in future on fulfillment of certain conditions is called as agreement to sell.


Q.43 How sale is different from Bailment?

Ans.: The intention of parties in case of sale is to transfer property in goods immediately, but in case of bailment, the property in goods is not transferred.


Q.44 What is goods under sale of goods Act, 1930 and its types?
Ans.: According to Section2(7) “Goods means every kind of movable property other than actionable claims and money and includes stock and shares, growing crops, and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale.According to Section 6 (1 and 2) of the act there are three types of goods as :
(1) Existing goods viz – Specific, ascertained or unascertained goods
(2)Future goods and

(3) Contingent goods


Q.45 What is condition and warranty?

 Ans.: According to Section12(2), a condition is a stipulation essential to the main purpose of the contract, the breach of which gives rise to a right to treat the contract as repudiated, whereas warranty is a stipulation collateral to the main purpose of the contract, the breach of which gives right to claim for damages but not to a right to reject the goods and treat the contract as repudiated (Section 12(3)].


Q.46 What is doctrine of Caveat Emptor?

Ans.: The buyer must take care when buying goods; it is not seller’s duty to point out the defects in goods.


Q.47 What is the meaning of Res Prit Domine?

Ans.: It simply means risks follows ownership. It is general rule that risk prima facie passes with ownership.


Q.48 What is the meaning of Nemo dot quod non habit.?

Ans.: It means nobody can give what he himself has not or no seller can transfer a better title than he himself has.


Q.49 What is unpaid seller?

Ans.: According to Section45 (1) the seller of goods deemed to be unpaid seller when whole price has not been paid or negotiable instrument received as payment dishonoured.


Q.50 What are the rights of unpaid seller?

Ans.: He has two rights :

(1) Right against the goods i.e. right of lien, right of stoppage of goods in transit and right of resale.

(2) Rights against buyer personally i.e. a) suit for price, b) damages for non acceptance, repudiation of the contract before the due date and suit  for interest.


Q.51 What is retracting the bid?

Ans.: The term retracting means withdraw or revoke. A bidder may retract his bid at any time before the compilation of sale. Any condition in an auction sale which forbids the bidder to retract his bid is void.


Q.52 What is damping?

Ans.: Damping is an overt act of dissuade the prospective buyer from raising the price by pointing out defects in the goods, creating confusion in the mind of intending bidder and taking away him from the place of auction.


Q.53 When knock out agreement becomes illegal?

Ans.: In the intention of the partner to knock out is to defraud a third party; such agreement is illegal.


Q.54 What is the cardinal principle of partnership?

Ans.: It is based on the principle that business must be carried on by all or any of them acting for all.


Q.55 Who is ostensible partner?

Ans.: Who is active partner who invested money into the firm actively participates in the functioning and management of the firm and shares profits.


Q.56 Who is holding out partner?

Ans.: If the person through his conduct and behavior representing himself as a partner, without being partner in the firm is called holding out partner.


Q.57 What is the difference between dissolution of firm and dissolution of

Ans.: The dissolution of partnership between all the partners of a firm is termed as dissolution of the firm contrary to it extinction of relationship between some of the partners only, it is called dissolution of partnership.


Q.58 Who is a consumer under consumer protection Act, 1986?
Ans.: Consumer is a person who buys goods or services for consideration which has been paid as promised or partly paid and partly promised or under any systems of deferred payment.


Q.59 What is Consumer Dispute?
Ans.: It refers a dispute where the person against whom a complaint had been made, denies or disputes the allegations contained in the complaint.


Q.60 What is unfair trade practice under consumer protection Act?

Ans.: It means a practice which, for the purpose of promoting the sale, use or supply of any goods or for any goods or for the provision of any service adopts any unfair ;method or defective practices.


Q.61 How many consumer protection councils are there under the Act?

Ans.: There are two types of these councils –
(i) The Central Consumer Protection council and
(ii) The State consumer protection council.