Mock Test Paper - Series I: April, 2025

Date of Paper: 23rd April, 2025

Time of Paper: 2 P.M. to 5 P.M.
FOUNDATION COURSE
PAPER 2: BUSINESS LAWS
ANSWERS
1. (a) (i) According to Section 27 of the Indian Contract Act, 1872, an agreement by
which any person is restrained from exercising a lawful profession, trade
or business of any kind, is to that extent void. But this rule is subject to the
following exceptions, namely, where a person sells the goodwill of a
business and agrees with the buyer to refrain from carrying on a similar
business, within specified local limits, so long as the buyer or his successor
in interest carries on a like business therein, such an agreement is valid
(goodwill is the advantage enjoyed by a business on account of public
patronage and encouragement from habitual customers). The local limits
within which the seller of the goodwill agrees not to carry on similar
business must be reasonable.
In the instant case, Kashish was running a business of artificial jewellery
since long. He sold his business to Naman. Naman made an agreement
with Kashish not to carry on the business of artificial jewellery and real
diamond jewellery in that area and for a period of next one year but just
after two months, Kashish opened a show room of real diamond jewellery.
Naman sued Kashish for closing the business of real diamond business as
it was against the agreement.
Here, as exceptions to section 27 applicable to similar business only,
agreement between Naman and Kashish will not be applicable on business
of real diamond jewellery. Hence, Kashish can continue his business of
real diamond jewellery.
(ii) Section 60 of the Indian Contract Act, 1872 provides, where the debtor
does not intimate and there are no circumstances indicating to which debt
the payment is to be applied, the creditor may apply it at his discretion to
any lawful debt actually due and payable to him from the debtor. However,
it cannot be applied to a disputed debt.
In the instant case, Albert obtained 2 loans of ` 3,00,000 and ` 4,00,000
respectively from a reputed Bank of which loan of ` 3,00,000 was

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 guaranteed by Robert. Albert sent ` 2,00,000 to bank without intimating as
to how it is to be appropriated towards the loans. The Bank appropriated
the whole of ` 2,00,000 to the loan of ` 4,00,000 (the loan not guaranteed).
Robert objected that repayment amount should be first adjusted to the
guaranteed loan.
On the basis of provisions and facts of the case, it can be said that in the
absence of clear intimation about the appropriation of payment, it is the
sole discretion of the Bank to which loan it can appropriate the amount.
Hence, the Bank was correct in its decision under the Indian Contract
Act, 1872.
(b) According to Section 2(68) of the Companies Act, 2013, “Private company” means
a company having a minimum paid-up share capital as may be prescribed, and
which by its articles,—
(i) restricts the right to transfer its shares;
(ii) except in case of One Person Company, limits the number of its members
to two hundred:
Provided that where two or more persons hold one or more shares in a
company jointly, they shall, for the purposes of this clause, be treated as a
single member.
Provided further that—
(A) persons who are in the employment of the company; and
(B) persons who, having been formerly in the employment of the
company, were members of the company while in that employment
and have continued to be members after the employment ceased,
shall not be included in the number of members; and
(iii) prohibits any invitation to the public to subscribe for any securities of the
company.
In the given problem, Parasnath Infraheight Limited is a public company and wants
to convert itself into a private company. It is having 215 members out of which 20
members were employees during the period 1st June, 2022 to 30th June, 2024.
These members were members in the company from 1st April, 2018 which are held
by them till date i.e. 31st August, 2024.
Following the provisions of Section 2(68) of the Act, 20 members were employees
of the company, but they were not employee at the time of getting membership

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 and nor on existing date i.e. 31st August, 2024. Hence, they will be considered as
members for the purpose of the limit of 200 members. Therefore, the company is
required to reduce the number of members before converting it into a private
company.
(c) It is true to say that the Indian Partnership Act, 1932 does not make the
registration of firms compulsory nor does it impose any penalty for non-
registration.
Following are consequences of Non-registration of Partnership Firms in
India:
The Indian Partnership Act, 1932 does not make the registration of firms
compulsory nor does it impose any penalty for non-registration. However, under
Section 69, non-registration of partnership gives rise to a number of disabilities
which we shall presently discuss. Although registration of firms is not compulsory,
yet the consequences or disabilities of non-registration have a persuasive
pressure for their registration. These disabilities briefly are as follows:
(i) No suit in a civil court by firm or other co-partners against third party:
The firm or any other person on its behalf cannot bring an action against
the third party for breach of contract entered into by the firm, unless the
firm is registered and the persons suing are or have been shown in the
register of firms as partners in the firm. In other words, a registered firm
can only file a suit against a third party and the persons suing have been
in the register of firms as partners in the firm.
(ii) No relief to partners for set-off of claim: If an action is brought against
the firm by a third party, then neither the firm nor the partner can claim any
set-off, if the suit be valued for more than ` 100 or pursue other
proceedings to enforce the rights arising from any contract.
(iii) Aggrieved partner cannot bring legal action against other partner or
the firm: A partner of an unregistered firm (or any other person on his
behalf) is precluded from bringing legal action against the firm or any
person alleged to be or to have been a partner in the firm. But, such a
person may sue for dissolution of the firm or for accounts and realization
of his share in the firm’s property where the firm is dissolved.
(iv) Third party can sue the firm: In case of an unregistered firm, an action
can be brought against the firm by a third party.
2. (a) By virtue of provisions of Section 15 of the Sale of Goods Act, 1930, where there
is a contract of sale of goods by description, there is an implied condition that the

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 goods shall correspond with the description. The buyer is not bound to accept and
pay for the goods which are not in accordance with the description of goods.
Thus, it has to be determined whether the buyer has undertaken to purchase the
goods by their description, i.e., whether the description was essential for
identifying the goods where the buyer had agreed to purchase. If that is required
and the goods tendered do not correspond with the description, it would be breach
of condition entitling the buyer to reject the goods.
In the given case, Priyansh ordered 600 tins of apple juice from an American
Company Amjuice Ltd. that would be packed in the boxes each containing 50 tins.
Amjuice Ltd. delivered substantial part in boxes containing only 30 tins. Priyansh
rejected the whole order while Amjuice Ltd. sued Priyansh for the recovery of
price.
On the basis of above, the sale of apple juice tins was based on sale by
description, but actual delivery was not as per the description given by seller at
the time of contract. Hence, Priyansh is correct in rejection of the goods.
(b) Filing of the documents and information with the registrar: For the registration
of the company following documents and information are required to be filed with
the registrar within whose jurisdiction the registered office of the company is
proposed to be situated-
(i) the memorandum and articles of the company duly signed by all the
subscribers to the memorandum.
(ii) a declaration by person who is engaged in the formation of the company
(an advocate, a chartered accountant, cost accountant or company
secretary in practice), and by a person named in the articles (director,
manager or secretary of the company), that all the requirements of this Act
and the rules made thereunder in respect of registration and matters
precedent or incidental thereto have been complied with.
(iii) a declaration from each of the subscribers to the memorandum and from
persons named as the first directors, if any, in the articles stating that-
 he is not convicted of any offence in connection with the promotion,
formation or management of any company, or
 he has not been found guilty of any fraud or misfeasance or of any
breach of duty to any company under this Act or any previous
company law during the last five years,

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  and that all the documents filed with the Registrar for registration of
the company contain information that is correct and complete and
true to the best of his knowledge and belief;
(iv) the address for correspondence till its registered office is established;
(v) the particulars (names, including surnames or family names, residential
address, nationality) of every subscriber to the memorandum along with
proof of identity, and in the case of a subscriber being a body corporate,
such particulars as may be prescribed.
(vi) the particulars (names, including surnames or family names, the Director
Identification Number, residential address, nationality) of the persons
mentioned in the articles as the subscribers to the Memorandum and such
other particulars including proof of identity as may be prescribed; and
(vii) the particulars of the interests of the persons mentioned in the articles as
the first directors of the company in other firms or bodies corporate along
with their consent to act as directors of the company in such form and
manner as may be prescribed.
(c) Distinction between LLP and Limited Liability Company
S. Basis Limited Liability Limited Liability
No. Partnerships (LLP) Company
1. Regulating Act The LLP Act, 2008. The Companies Act,
2013.
2. Members/Partners The persons who contribute The persons who
to LLP are known as invest the money in
partners of the LLP. the shares are known
as members of the
company.
3. Internal The internal governance The internal
governance structure of a LLP is governance structure
structure governed by contract of a company is
agreement between the regulated by statute
partners. (i.e., Companies Act,
2013).
4. Name Name of the LLP to contain Name of the public
the word “Limited Liability company to contain
the word “limited” and

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 partnership” or “LLP” as Pvt. Co. to contain the
suffix. word “Private limited”
as suffix.
5. No. of members/ Minimum – 2 partners Private company:
partners
Maximum – No such limit on Minimum – 2
the partners in the Act. The members
partners of the LLP can be
Maximum 200
individuals/or body
members
corporate through the
nominees. Public company:
Minimum – 7
members
Maximum – No such
limit on the members.
Members can be
organizations, trusts,
another business form
or individuals.
6. Liability of Liability of a partner is Liability of a member
members/ partners limited to the extent of is limited to the
agreed contribution except amount unpaid on the
in case of willful fraud. shares held by them.
7. Management The business of the The affairs of the
company is managed by the company are
partners including the managed by the board
designated partners of directors elected by
authorized in the the shareholders.
agreement.
8. Minimum number Minimum 2 designated Pvt. Co. – 2 directors
of partners.
Public co. – 3
directors/designat
directors
ed partners

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3. (a) According to section 14 of the Indian Partnership Act, 1932, ‘property of the firm’
means ‘partnership assets’, ‘joint stock’, ‘common stock’ or ‘joint estate’ of the
firm. The property of the firm includes:
(i) all property, rights and interests which partners may have brought into the
common stock as their contribution to the common business;
(ii) all the property, rights and interest acquired or purchased by or for the firm,
or for the purposes and in the course of the business of the firm; and
(iii) Goodwill of the business.
Further, if the contrary intension does not appear, the property acquired with the
money of the firm is deemed to have been acquired for the firm.
In the instant case, Rahul and Kapil are partners in the firm M/s Saxena Marble
House. Without the consent of Kapil, Rahul purchased 100 shares of a reputed
company in his name, but he made the payment from firm’s account.
The answers are:
(a) As shares were purchased from the money of firm, shares will be deemed
to be the property of firm.
(b) In case Rahul debits himself in the accounts books of firm as became a
debtor of the firm, shares will not be deemed the property of the firm. They
will be the personal property of Rahul.
(b) (i) Doctrine of Indoor Management
According to this doctrine, persons dealing with the company need not
inquire whether internal proceedings relating to the contract are followed
correctly, once they are satisfied that the transaction is in accordance with
the Memorandum and Articles of Association.
Stakeholders need not enquire whether the necessary meeting was
convened and held properly or whether necessary resolution was passed
properly. They are entitled to take it for granted that the company had gone
through all these proceedings in a regular manner.
The doctrine helps protect external members from the company and states
that the people are entitled to presume that internal proceedings are as per
documents submitted with the Registrar of Companies.

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 Thus,
1. What happens internal to a company is not a matter of public
knowledge. An outsider can only presume the intentions of a
company, but do not know the information he/she is not privy to.
2. If not for the doctrine, the company could escape creditors by
denying the authority of officials to act on its behalf.
In the given question, Easy Finance Ltd. being external to the company,
need not enquire whether the necessary resolution was passed properly.
Even if the company claim that no resolution authorizing the loan was
passed, the company is bound to pay the loan to Easy Finance Ltd.
(ii) According to Section 455 of the Companies Act, 2013, where a company
is formed and registered under this Act for a future project or to hold an
asset or intellectual property and has no significant accounting transaction,
such a company or an inactive company may make an application to the
Registrar in such manner as may be prescribed for obtaining the status of
a dormant company.
In the instant case, XYZ Ltd. has made a significant accounting transaction
(down payment of ₹1 crore for plant and machinery), it does not meet the
criteria of a dormant company under Section 455 of the Companies
Act, 2013.
Therefore, XYZ Ltd. cannot acquire the status of dormant company.
(c) Void Contract: As per Section 2 (j) of the Indian Contract Act, 1872, “a contract
which ceases to be enforceable by law becomes void when it ceases to be
enforceable”. Thus, a void contract is one which cannot be enforced by a court of
law.
Voidable Contract: Section 2(i) defines that “an agreement which is enforceable
by law at the option of one or more parties thereto, but not at the option of the
other or others is a voidable contract”.
The distinction between a Void Contract and a Voidable Contract are as under:
S. Basis Void Contract Voidable Contract
No.
1 Meaning A Contract ceases to An agreement which is
be enforceable by law enforceable by law at the
becomes void when it option of one or more of
the parties thereto, but

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 ceases to be not at the option of the
enforceable. other or others, is a
voidable contract.
2 Enforceability A void contract cannot It is enforceable only at
be enforced at all. the option of aggrieved
party and not at the
option of other party.
3 Cause A contract becomes A contract becomes a
void due to change in voidable contract if the
law or change in consent of a party was
circumstances beyond not free.
the contemplation of
parties.
4 Performance A void contract cannot If the aggrieved party
of contract be performed. does not, within
reasonable time,
exercise his right to avoid
the contract, any party
can sue the other for
claiming the performance
of the contract.
5 Rights A void contract does The party whose consent
not grant any legal was not free has the right
remedy to any party. to rescind the contract
within a reasonable time.
If so rescinded, it
becomes a void contract.
If it is not rescinded it
becomes a valid contract.

4. (a) Section 189 of the Indian Contract Act, 1872 provides an agent has authority, in
an emergency; to do all such acts for the purpose of protecting his principal from
loss as would be done by a person of ordinary prudence, in his own case, under
similar circumstances.
To constitute a valid agency in an emergency, following conditions must be
satisfied.
(i) Agent should not be in a position or have any opportunity to communicate
with his principal within the time available.
(ii) There should have been actual and definite commercial necessity for the
agent to act promptly.

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 (iii) The agent should have acted bonafide and for the benefit of the principal.
(iv) The agent should have adopted the most reasonable and practicable
course under the circumstances, and
(v) The agent must have been in possession of the goods belonging to his
principal and which are the subject of contract.
In the instant case, Nitin appointed Shiv as his agent to transport apples from
Shimla to Delhi but due to heavy rain in near Shimla, he has to stop for more than
seven days. Shiv sold all the apples in the nearby market below the market rate
where he was stranded in fear that the apples may perish.
From the above facts, it is clear that an agency by necessity has come into
existence between Shiv and Nitin because there was an actual and definite
necessity for Shiv to act on behalf of Nitin. Shiv sold the apples at the rate lower
than market rate to protect the Nitin from heavy loss. Hence, Shiv is not liable to
Nitin for loss.
(b) Presentment for payment [Section 64 of the Negotiable Instruments
Act, 1881]
Promissory notes, bill of exchange and cheques must be presented for payment
to the maker, acceptor or drawee thereof respectively, by or on behalf of the holder
as hereinafter provided.
In default of such presentment, the other parties thereto are not liable thereon to
such holder.
Where authorised by agreement or usage, a presentment through the post office
by means of a registered letter is sufficient.
Exception: Where a promissory note is payable on demand and is not payable at
a specified place, no presentment is necessary in order to charge the maker
thereof.
Notwithstanding anything contained in section 6, where an electronic image of a
truncated cheque is presented for payment, the drawee bank is entitled to demand
any further information regarding the truncated cheque from the bank holding the
truncated cheque in case of any reasonable suspicion about the genuineness of
the apparent tenor of instrument, and if the suspicion is that of any fraud, forgery,
tampering or destruction of the instrument, it is entitled to further demand the
presentment of the truncated cheque itself for verification.

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 Provided that the truncated cheque so demanded by the drawee bank shall be
retained by it, if the payment is made accordingly.
(c) Law: Law is a set of obligations and duties imposed by the government for
securing welfare and providing justice to society. India’s legal framework reflects
the social, political, economic, and cultural aspects of our vast and diversified
country.
Enforcement of Law:
• After a law is passed in parliament it has to be enforced. Somebody should
monitor whether the law is being followed. This is the job of the executive.
• Depending on whether a law is a Central law or a State law the Central or
State Government will be the enforcing authority.
• For this purpose, government functions are distributed to various
ministries. Some of the popular Ministries are the Ministry of Finance, the
Ministry of Corporate Affairs, the Ministry of Home Affairs, the Ministry of
Law and Justice and so on. These Ministries are headed by a minister and
run by officers of the Indian administrative and other services.
• The Government of India exercises its executive authority through a
number of Government Ministries or Departments of State. A Ministry is
composed of employed officials, known as civil servants, and is politically
accountable through a minister.
• Most major Ministries are headed by a Cabinet Minister, who sits in the
Union Council of Ministers, and is typically supported by a team of junior
ministers called the Ministers of State.
5. (a) According to Section 45(1) of the Sale of Goods Act, 1930 the seller of goods is
deemed to be an ‘Unpaid Seller’ when-
(A) The whole of the price has not been paid or tendered.
(B) A bill of exchange or other negotiable instrument was given as payment,
but the same has been dishonoured, unless this payment was an absolute,
and not a conditional payment.
Further, Section 47 provides about an unpaid seller’s right of lien. Accordingly, an
unpaid seller can retain the possession of the goods and refusal to deliver them
to the buyer until the price due in respect of them is paid or tendered. This right
can be exercised by him in the following cases only:

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 (a) where goods have been sold without any stipulation of credit; (i.e., on cash
sale)
(b) where goods have been sold on credit but the term of credit has expired;
or
(c) where the buyer becomes insolvent.
In the instant case, Mr. Ganesh purchased 1000 Kgs wheat from Mr. Shankar on
3 month’s credit which was to be delivered after 10 days of contract. But, after 5
days of contract, one friend of Mr. Shankar secretly informed him that Mr. Ganesh
may default in payment. On the belief of friend, Mr. Shankar applied the lien and
withheld the delivery.
(i) On the basis of above provisions and facts, it can be said that even
Mr. Ganesh was an unpaid seller until the term of credit i.e. has expired.
Hence, Mr. Shankar had to perform his promise of supplying 1000 Kgs of
wheat.
(ii) In case Mr. Ganesh became insolvent before the delivery of wheat,
Mr. Shankar had the right to apply the lien, and he could withhold the
delivery.
(b) Sleeping or Dormant Partner: It is a person who is a partner by agreement, and
who does not actively take part in the conduct of the partnership business.
They share profits and losses and are liable to the third parties for all acts of the
firm. They are, however not required to give public notice of their retirement from
the firm.
Nominal Partner: A person who lends his name to the firm, without having any
real interest in it, is called a nominal partner.
He is not entitled to share the profits of the firm. Neither he invests in the firm nor
takes part in the conduct of the business. He is, however, liable to third parties for
all acts of the firm.
Partner in profits only: A partner who is entitled to share the profits only without
being liable for the losses is known as the partner for profits only and also liable
to the third parties for all acts of the profits only.
Partner by holding out (Section 28 of the Indian Partnership Act, 1932):
Partnership by holding out is also known as partnership by estoppel. Where a man
holds himself out as a partner, or allows others to do it, he is then stopped from

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 denying the character he has assumed and upon the faith of which creditors may
be presumed to have acted.
It is only the person to whom the representation has been made and who has
acted thereon that has right to enforce liability arising out of ‘holding out’.
(c) Quasi Contracts: Under certain special circumstances, obligation resembling
those created by a contract are imposed by law although the parties have never
entered into a contract. Such obligations imposed by law are referred to as ‘Quasi-
contracts’. Such a contract resembles with a contract so far as result or effect is
concerned but it has little or no affinity with a contract in respect of mode of
creation. These contracts are based on the doctrine that a person shall not be
allowed to enrich himself unjustly at the expense of another.
Under the provisions of the Indian Contract Act, 1872, the relationship of quasi
contract is deemed to have come to exist in five different circumstances. In none
of these cases there comes into existence any contract between the parties in the
real sense. Due to peculiar circumstances in which they are placed, the law
imposes in each of these cases the contractual liability.
(i) Claim for necessaries supplied to persons incapable of contracting
(Section 68): If a person, incapable of entering into a contract, or anyone
whom he is legally bound to support, is supplied by another person with
necessaries suited to his condition in life, the person who has furnished
such supplies is entitled to be reimbursed from the property of such
incapable person.
To establish his claim, the supplier must prove not only that the goods were
supplied to the person who was minor or a lunatic but also that they were
suitable to his actual requirements at the time of the sale and delivery.
(ii) Payment by an interested person (Section 69): A person who is
interested in the payment of money which another is bound by law to pay,
and who therefore pays it, is entitled to be reimbursed by the other.
(iii) Obligation of person enjoying benefits of non-gratuitous act (Section
70): In term of section 70 of the Act “where a person lawfully does anything
for another person, or delivers anything to him not intending to do so
gratuitously and such other person enjoys the benefit thereof, the latter is
bound to pay compensation to the former in respect of, or to restore, the
thing so done or delivered”.

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 It thus follows that for a suit to succeed, the plaintiff must prove:
(i) that he had done the act or had delivered the thing lawfully;
(ii) that he did not do so gratuitously; and
(iii) that the other person enjoyed the benefit.
(iv) Responsibility of finder of goods (Section 71): ‘A person who finds
goods belonging to another and takes them into his custody is subject to
same responsibility as if he were a bailee’.
Thus, a finder of lost goods has:
(i) to take proper care of the property as man of ordinary prudence
would take
(ii) no right to appropriate the goods and
(iii) to restore the goods if the owner is found.
(v) Money paid by mistake or under coercion (Section 72): “A person to
whom money has been paid or anything delivered by mistake or under
coercion, must repay or return it”.
In all the above cases the contractual liability arose without any agreement
between the parties.
6. (a) According to section 117 of the Negotiable Instruments Act, 1881, the
compensation payable in case of dishonour of promissory note, bill of exchange
or cheque, by any party liable to the holder or any endorsee, shall be determined
by the following rules:
(a) the holder is entitled to the amount due upon the instrument, together with
the expenses properly incurred in presenting, noting and protesting it;
(b) when the person charged resides at a place different from that at which the
instrument was payable, the holder is entitled to receive such sum at the
current rate of exchange between the two places;
(c) an endorser who, being liable, has paid the amount due on the same is
entitled to the amount so paid with interest at 18% per annum from the date
of payment until tender or realisation thereof, together with all expenses
caused by the dishonour and payment;
In the instant case, Sachin bought 1000 Kgs sugar from Saurabh for `40,000 on
three months credit and issued a Promissory Note payable after 3 months. On
due date, the Promissory Note was dishonoured by Sachin. Saurabh filed suit for

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 the recovery of the amount plus fees of advocate paid by him for defending the
suit.
On the basis of above provisions of law and facts of the case, Saurabh has right
to claim price of sugar plus fees of advocate plus interest @18% p.a. from the
date of payment until tender or realisation thereof.
(b) A surety is said to be discharged when his liability as surety comes to an end. The
various modes of discharge of surety are as below:
(i) By revocation of the contract of guarantee.
(ii) By the conduct of the creditor, or
(iii) By the invalidation of the contract of guarantee.
By revocation of the Contract of Guarantee
(a) Revocation of continuing guarantee by Notice (Section 130 of the
Indian Contract Act, 1872): The continuing guarantee may at any time be
revoked by the surety as to future transactions by notice to the creditors.
Once the guarantee is revoked, the surety is not liable for any future
transaction however he is liable for all the transactions that happened
before the notice was given.
A specific guarantee can be revoked only if liability to principal debtor has
not accrued.
(b) Revocation of continuing guarantee by surety’s death (Section 131):
In the absence of any contract to the contrary, the death of surety operates
as a revocation of a continuing guarantee as to the future transactions
taking place after the death of surety. However, the surety’s estate remains
liable for the past transactions which have already taken place before the
death of the surety.
(c) By novation [Section 62]: The surety under original contract is discharged
if a fresh contract is entered into either between the same parties or
between the other parties, the consideration being the mutual discharge of
the old contract.
(c) (i) Effect of part delivery (Section 34 of the Sale of Goods Act, 1930): A
delivery of part of goods, in progress of the delivery of the whole has the
same effect, for the purpose of passing the property in such goods, as a
delivery of the whole; but a delivery of part of the goods, with an intention

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 of severing it from the whole, does not operate as a delivery of the
remainder.
(ii) Place of delivery [Section 36(1)]: Whether it is for the buyer to take
possession of the goods or for the seller to send them to the buyer is a
question depending in each case on the contract, express or implied,
between the parties. Apart from any such contract,
♦ goods sold are to be delivered at the place at which they are at the
time of the sale, and
♦ goods agreed to be sold are to be delivered at the place at which
they are at the time of the agreement to sell or
♦ if goods are not then in existence, at the place at which they are
manufactured or produced.
(iii) Delivery of wrong quantity [Section 37]: Where the seller delivers to the
buyer a quantity of goods less than he contracted to sell, the buyer may
reject them, but if the buyer accepts the goods so delivered he shall pay
for them at the contract rate. [Sub-section (1)]
Where the seller delivers to the buyer a quantity of goods larger than he
contracted to sell, the buyer may accept the goods included in the contract
and reject the rest, or he may reject the whole. If the buyer accepts the
whole of the goods so delivered, he shall pay for them at the contract rate.
[Sub-section (2)]
Where the seller delivers to the buyer the goods, he contracted to sell
mixed with goods of a different description not included in the contract, the
buyer may accept the goods which are in accordance with the contract and
reject or may reject the whole. [Sub-section (3)]
The provisions of this section are subject to any usage of trade, special
agreement or course of dealing between the parties. [Sub-section (4)]

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