Case#1

Sultan bought electronic appliances worth Rs. 700,000 from Zameer on thirty days'

credit. At the time of purchase, Sultan knew that he was in insolvent circumstances.

Discuss the validity of the contract. (02)

CASE#2

Majid and Soomro went to a money lender. Majid said to the money lender, 'Let

Soomro have a loan of Rs. 50,000, I ensure that you will be paid'.

Identify and describe the type of contract and state Majid's responsibility in the contract. (03)

CASE#3

Respond to the following independent situations, under the provisions of the

Negotiable Instruments Act, 1881:

(i) Talat Mir, acting within the scope of his authority as an agent, draws a bill upon

his principal, Mirza Nadir.

Discuss what kind of a negotiable instrument it may be

regarded. (03)

(ii) Samad drew a cheque which was payable to 'Munaf or order'. Saleem after

forging Munaf's endorsement on the cheque received payment from the banker.

Discuss whether the banker would be liable on the cheque to Samad. (02)