LAW SAMPLE CASE STUDY

Thanks to  Rama Chandar Sir

1.      ‘A’ engaged an auctioneer “B”, to sell some property on the terms that he should receive his due commission of Rs. 5,000/-. “B” however, received secretly Rs.2,000/- as commission from the purchaser. Discuss the rights of ‘A’.

2.  ‘AMAN’ is a trader, carries on business under the name of  ‘Aman & Co.,           Ltd.’,   without being incorporated as a company with limited liability. Discuss the consequences of the act of Aman.

Solutions

1. Yes, ‘A’ can recover the amount.

- As per the ‘Contract of Agency’, it is the duty of an agent that not to make secret profit from agency.

- effect:- ‘A’ can recover the both sums i.e. Rs. 5,000/- and Rs.2,000/-

2.  Aman is personally liable for all liabilities incurred in the business  (Sec.11).

            -he is punishable with a fine which may extend to Rs.1,000/-

- Under Sec.631. He is liable for a fine up to Rs.50/- per day for the unauthorised use of the word ‘Ltd.’