Legal Aspects of Business - Legal Aspects of Business Section 1

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46. A employs B to recover 100,000 rupees from C and to lay it out on good security. B recovers 1,00,000 rupees and lays out 90,000 rupees on good security, but lays out 10,000 rupees, on security which he ought to have known to be bad, whereby A loses 2,000 rupees.

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47. A engages B as a clerk to collect money for him. B fails to account for some of his receipts, and A in consequence calls upon him to furnish security for his duly accounting. A does not acquaint C with B’s previous conduct. B afterward makes default.

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48. A entrusts B with a negotiable instrument endorsed in blank. B sells them to C in violation of private orders from A.

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49. A fraudulently informs B that A’s estate is free from encumbrance. B thereupon buys the estate. The estate is subject to a mortgage.

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50. A gives a recognizance binding him in a penalty of Rs. 500 to appear in Court on a certain day. He forfeits his recognizance.

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