Business Law PresentationMade by:Ayush PatodiaAyush MorePradip JhaRajesh RayAnkit Gupta
Gift… A gift is a voluntary transfer of property from oneperson to another without any consideration. A gift involves three elements: The donor intends to transfer ownership of the propertyto the donee immediately. The donor delivers the property to the donee. The donee accepts the property.
Continued… An inter vivos gift – is a gift given during life and withno expectation of death. The gift is valid, if it meets the basic conditions of a gift. A gift causa mortis – is a gift given in expectation ofdying soon. The gift is valid, if it meets the conditions of a gift, andthe giver dies as expected. The giver may rescind the gift at any time, and it isautomatically rescinded if the giver does not die asexpected.
Donor and Donee…Donor:A person or entity making a gift or donation is known asthe donor i.e giver of the gift.Donee:A person or entity receiving an outright gift or donationi.e. receiver of the gift.
Assignment…A transfer of rights in real property or personal property toanother that gives the recipient(the transferee), the rightsthat the owner or holder of the property(the transferor), hadprior to the transfer. Statutes regulate the extent to whichan assignment may be made.For Example:An assignment of wages is the transfer of the right tocollect wages from the wage earner to his or her creditor.
Transfer… Any and every method of removing somethingfrom one person or place to another; specifically,the handing over of possession or control of assetsor title. Transfer may be affected by assignment, bydelivery, by endorsement, and by operation of law.
Proprietorship… A sole proprietorship, also known as the sole trader orsimply a proprietorship, is a type of business entity that isowned and run by one individual and in which there is nolegal distinction between the owner and the business. The owner receives all profits (subject to taxation specificto the business) and has unlimited responsibility for alllosses and debts. Every asset of the business is owned by the proprietor andall debts of the business are the proprietors. It is a "sole"proprietorship in contrast with partnerships.
Continued… Glos and Baker write that "A sole proprietorship isa business owned by one person who is entitled toall of its profits," and Reed and Conover say "Thesingle or the sole proprietorship is a businessowned and controlled by one man even though hemay have many other persons working for him." Asole proprietor may use a trade name or businessname other than his or her legal name
Partnership… Section 4 of the partnership act 1932defines partnership as “the relationbetween persons who have agreed toshare the profits of business carried onby all or any of them acting for all.”
Formation of Partnership… Partnership may be express (in writing or oral); or may beimplied, i.e. it may be inferred from the conduct of theparties. It is based on an agreement between two or more personsjoining hands together to share the profits of the businesscarried on by all or any one of them acting for all. Partnership agreement should comply with the essentialsof an ordinary contract. Parties of partnership should be competent to contract. A minor may be admitted to the benefits of partnershipwith the consent of all the other partners . Partnership business and object must be lawful.
Continued… As relationship of partners to one another is that ofagency, no consideration is required to create thepartnership. Though partnership may be implied from the conduct orcourse of dealing of the parties, it is advisable to formpartnerships by an agreement in writing. This agreement iscalled a partnership deed which should be adequatelystamped as required by the Indian stamp act 1889. The partnership deed contains names and addresses of thepartners, name and address of the firm, duration of thefirm, profit sharing management accounts etc
Legal status of partnership… A Partnership firm has no separate legal existence. As it isa name given to the collective relationship of person it hasno separate legal existence from its partners. The right andobligation of a firm are infact rights and obligation of thepartners constituting the firm. It is not a legal person andtherefore enjoys no separate right independent of itspartners. However under the income tax act, the firm isconsidered a separate legal entity for taxation purpose.Partners are not individually taxed on the share of incomereceived by them.
Continued… It is the partner who owns jointly in common the assetof the partnership. In consequence of the dissolution,division on allotment of assets to the partners whichfollows upon dissolution after discharge of liabilities isnothing but a mutual adjustment of rights betweenthe partners and there is no question ofextinguishment of the firms rights in the partnershipassets amounting to transfer of assets. There istherefore, no transfer of assets involved even in thesense of any extinguishment of the firms rights in thepartnership assets when distribution takes place upondissolution.
Limited Liability Partnership(LLP)… LLP is a new corporate structure that combines theflexibility of a partnership and the advantages oflimited liability of a company at a low compliance cost. In other words, it is an alternative corporate businessvehicle that provides the benefits of limited liability ofa company, but allows its members the flexibility oforganising their internal management on the basis of amutually arrived agreement, as is the case in apartnership firm.
Feature of LLP… The LLP is a body corporate and a legal entity separatefrom its partners. Any two or more persons, associated for carrying on alawful business with a view to profit. The LLP will have perpetual succession. The compromise or arrangement including merger andamalgamation of LLPs shall be in accordance with theprovisions of the LLP Act 2008. The Central Government has powers to investigate theaffairs of an LLP, if required, by appointment of competentInspector for the purpose.