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Homework answers / question archive / Case Study Business Law Abhay is the manufacturer for bicycles

Case Study Business Law Abhay is the manufacturer for bicycles


Case Study Business Law Abhay is the manufacturer for bicycles. He owns his own brand and factory for running this business. Shreedhar is a dealer in bicycle and runs his shop on Bhandarkar Road Pune. Shreedhar proposed Abhay to manufacture 1000 bicycles of his brand and deliver it to Shreedhar for amount of INR 20,00,000. Abhay accepted the proposal and both finalised the deal by signing the...




The conditions mentioned in the deal were as follows:

1.    Abhay will manufacture 1000 bicycle of white coloour.


2.    The delivery of the goods must be made by Abhay at Shreedhar's shop at Bhandarkar Road.


3.    The delivery of goods must take place before 15th September 2020.


4.    All the expenses towards delivery shall be incurred by Abhay.


5.    The payment against advance shall be paid by Shreedhar before 1st August 2020.


6.    Residuary amount of INR 15,00,000 shall be paid by Shreedhar on delivery on the same date.


7.    The deal also mentioned, in case of any defect in any piece, it shall be repaired and delivered back.



Shreedhar paid an advance of INR 5,00,000 towards the same through online transaction. The goods were manufactured in 1000 quantity by Abhay and delivered to Shreedhar on 12th September 2020. The payment was made by Shreedhar on the same day against the residuary amount.


Answer the follow questions considering the above facts:


1. Fill in the gap substituted after the "the deal by signing the"...

a. Contract

b. Contract for Sale

c. Agreement to sell

d. None


2. What kind of goods are involved in this case?

a. Contingent

b. Existing

c. Future

d. Ascertained


3. What is explicit under clause 7 of the deal?

a. Condition

b. Warranty

c. Both

d. None


4. When does the parties get discharged of their liabilities and rights?

a. After the delivery of goods take place

b. only after the residuary payment

c. only after signing the deal

d. None


5. Which Act is applicable to this case?

a. Sale of Goods Act

b. Indian Contract Act

c. Negotiable Instruments Act

d. All



All this are 'Multiple Choice Question'

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