1. Commercial law – Unit I
Karthikeyan R
Assistant Professor
Department of Commerce with Computer Applications
Dr. N.G.P. ARTS AND SCIENCE COLLEGE
(An Autonomous Institution, Affiliated to Bharathiar University, Coimbatore)
Approved by Government of Tamil Nadu and Accredited by NAAC with 'A' Grade (2nd Cycle)
Dr. N.G.P.- Kalapatti Road, Coimbatore-641048, Tamil Nadu, India
Web: www.drngpasc.ac.in | Email: info@drngpasc.ac.in | Phone: +91-422-2369100
2. Law an Overview
Freedom is the birth right of human beings and we
derives utmost pleasure in its exercise. Slavery is the greatest
of evils that he has to fight against. However, absolute
individual freedom can exist at best in the world of ideas
only.
The rights of individuals were not recognized. But with
growth of civilization people become gradually aware of
their own rights. They began to demand and fight for their
rights.
Dr. NGPASC
COIMBATORE | INDIA
3. Definition of Law
Dr. NGPASC
COIMBATORE | INDIA
Law is that portion of the established habit and thought of
the mankind which has gained distinct and formal recognition in
the shape of uniform rules backed the authority and power of the
government.
Woodrow Willson
Law is a rule of conduct imposed and enforced by the
sovereign
Austin
4. Commercial law
Commercial law or Business law is that branch of law
which governs and regulates trade and commerce.
The phrase of commercial law generally used to
denote the portion of the law which deals with the rights and
obligations arising out of transactions between mercantile
persons.
- Slater
Dr. NGPASC
COIMBATORE | INDIA
5. Meaning of Commercial Law
Dr. NGPASC
COIMBATORE | INDIA
Commercial law is a matter of fact, is one of the
important branches of civil law. A mercantile person is one
who enters into business transactions and he may be an
individual, an association of persons , such as partnership
or company.
6. What is Contract ?
Dr. NGPASC
COIMBATORE | INDIA
A contract is a lawful agreement, made by two
or more persons within the limits of their contractual
capacity, with the serious intention of creating a legal
obligation, communicating such intention, without
vagueness, each to the other and being of the same
mind as to the subject-matter, to perform positive acts.
7. Definition of Contract
Dr. NGPASC
COIMBATORE | INDIA
The term “An agreement enforceable by a law is
Contract.”
Section 2(h) of the Indian contract Act 1872
Other words an agreement which can e enforced in a court of
law is known as contract. A contract consists of two elements.
An agreement
The agreement must be enforced by law.
8. Definition of Agreement
Dr. NGPASC
COIMBATORE | INDIA
The term agreement “Every promise and every
set of promises, forming consideration of each other, is
an agreement.”
Section 2(e) of the Indian contract act 1872.
9. Agreement
Dr. NGPASC
COIMBATORE | INDIA
Agreement means a promise. It is created when a person
makes an offer to another person and that other person signifies
the his assent or accepts it.
Other wise
Agreement = offer + Acceptance
10. Essential elements of a Valid Contract
Dr. NGPASC
COIMBATORE | INDIA
An Agreement or Contract becomes enforceable by law
when it fulfills certain conditions, those conditions which may
be called the essential elements of a contract.
According to the Indian contract act section 10 the
essentials of a valid contract is given below.
12. Classifications of Contracts
Dr. NGPASC
COIMBATORE | INDIA
According to the enforceability - Legal validity
According to the formation - Mode of creation
According to the performance
16. Offer
Dr. NGPASC
COIMBATORE | INDIA
When one person signifies to another his willingness to do Or
to abstain from doing anything with a view to obtaining the assent of
that other to such act or abstinence, he said to make a proposal
-Section 2 of Indian contract act
Proposal is also called offer
Section 2a of Indian contract act
19. Acceptance
Dr. NGPASC
COIMBATORE | INDIA
When one person to whom the proposal is made signifies his
assent thereto, the proposal is said to accepted, a proposal becomes a
promise
-Section 2b of Indian contract act
An offer can be accepted only the person or persons whom the offer is
intended. To constitute a valid acceptance the assent must be
communicated to the offeror.
21. Revocation of an Offer
Dr. NGPASC
COIMBATORE | INDIA
Revocation of offer is the withdrawal of an offer by
the offeror so that it can no longer be accepted.
Revocation takes effect as soon as it is known to the
offeree. An offeror may revoke an offer before it has been
accepted, but the revocation must be communicated to the
offeree.
23. Revocation of an Acceptance
Dr. NGPASC
COIMBATORE | INDIA
An acceptance may be revoked at any time before the
communication of the acceptance is complete as against the
acceptor t not after words
-Section 5 of the Indian contract act
In fact revocation of the acceptance to a proposal by the offeree
himself.
