Bankruptcy Act 1997 (By BU AIS 2nd Batch)Jessic Sharif
This document is a presentation on the Bankruptcy Act of 1997 given by a group of students at the University of Barisal. It defines key terms related to bankruptcy such as adjudication, creditors, debtors, and discharge. It explains that bankruptcy is a legal process that allows individuals who cannot pay their debts to eliminate or discharge most of their debts and get a fresh start. It discusses who can and cannot be declared bankrupt under the Act and the conditions for creditors and debtors to file bankruptcy petitions. The effects of an order of adjudication are that the bankrupt must assist in realizing and distributing their property to creditors, all non-exempt property vests in the receiver or court, and the bankrupt loses power to enter transactions binding creditors
(1) Agency relationships are formed through mutual consent between a principal and an agent. (2) There are several types of agency relationships including express, implied, apparent, and ratification. (3) An agency can be terminated through acts of the parties such as agreement, time, or event, or by operation of law such as death, insanity, or impossibility.
Contract of indemnity contract of guaranteeAkash Goel
An indemnity contract involves two parties, where one party (the indemnifier) promises to compensate the other (the indemnified) for losses caused by the indemnifier or a third party. A guarantee contract involves three parties, where one (the surety) guarantees to perform a promise made by a second (the principal debtor) if the second defaults, to benefit a third (the creditor). The principal debtor is primarily liable, while the surety is secondarily liable. The surety's rights include subrogation to the creditor's rights against the debtor, benefit of securities held by the creditor, and reimbursement from the debtor for amounts paid. The surety is discharged by changes to
This document provides an overview of indemnity and guarantee contracts under business law. It defines indemnity as a contract where one party promises to save the other from loss caused by the promisor or a third party. Guarantee is defined as a contract to perform a third party's promise in case of default. The key differences between the two are that indemnity provides compensation for loss while guarantee provides relief to the debtor, and guarantee requires an existing liability while indemnity does not. The document outlines the parties involved, features, rights and discharge conditions for both indemnity and guarantee agreements.
An agency agreement is a legal contract creating a fiduciary relationship whereby the first party ("the principal") agrees that the actions of a second party ("the agent") binds the principal to later agreements made by the agent as if the principal had himself personally made the later agreements. The power of the agent to bind the principal is usually legally referred to as an authority. Agency created via an agreement may be a form of implied authority, such as when a person gives their credit card to a close relative, the cardholder may be required to pay for purchases made by the relative with their credit card.
Many states employ the equal dignity rule whereby the agency agreement must be in writing if the later agreement would also necessarily be written, such as a contract to buy thousands of dollars worth of goods.
An example of the existence of an agency agreement at issue in a 2006 court case arose when a tennis tournament sponsor sued Venus and Serena Williams for not participating. The sponsor argued that their father, Richard Williams, had committed to their participation in the tournament. The Williams sisters argued that their father did not have the authority to bind them to such an agreement. If their father did commit the sisters to play, the issue for the court to decide is whether a valid agency agreement existed between the Williams sisters and their father. If not, then they likely were not bound to his agreement under the law of agency.
Manufacturers and suppliers of goods frequently appoint agents to act on their behalf in promoting sales, both in the home country of the manufacturer as well as overseas. A formal agreement is usually signed setting out the commission the agent will receive, the territory, duration and other terms on which the principal and agent will do business together.
Within the European Union, there is legislation designed to give some protection to agents, in particular, the right to compensation in certain circumstances when an agency is terminated. The same applies to other parts of the world and in some countries, it is necessary for a foreign manufacturer to appoint as agent an individual or company that is a national of the country where the agency will operate.
An agent should be distinguished from a distributor – in commercial parlance, a distributor will buy stock from the supplier or principal and then sell it on to his customers at a markup, whereas an agent will find customers for the principal who then sells direct to the customers and pays commission to the agent.
Bailment describes a legal relationship in common law where physical possession of personal property, or a chattel, is transferred from one person (the "bailor") to another person (the "bailee") who subsequently has possession of the property. It arises when a person gives property to someone else for safekeeping and is a cause of action independent of contract or tort.
Bailment is distinguished from a contract of sale or a gift of property, as it only involves the transfer of possession and not its ownership. To create a bailment, the bailee must both intend to possess, and actually physically possess, the bailable chattel. Bailment is a typical common law concept although similar concepts exist in civil law (Spain- Depósito).
In addition, unlike a lease or rental, where ownership remains with the lessor but the lessee is allowed to use the property, the bailee is generally not entitled to the use of the property while it is in his possession.
A common example of bailment is leaving your car with a valet. Leaving your car in an unattended parking garage is typically a license rather than a bailment, as the car park's intent to possess your car cannot be shown. However, bailments arise in many other situations, including terminated leases of property, warehousing (including store-it-yourself) or in a carriage of goods.
The document discusses principles of lending for banks. It covers key lending principles such as liquidity, safety, diversity, stability and profitability for banks' lending activities. It also discusses principles for individual loans including the 5 C's of lending (character, capacity, capital, collateral, conditions), types of security for loans (lien, negative lien, pledge, hypothecation, mortgage), and priority sector lending targets and categories (agriculture, micro/small enterprises, education, housing, weaker sections).
The document summarizes key aspects of the Sale of Goods Act 1930 in India, including:
- Essential elements of a valid contract of sale are two parties (buyer and seller), goods, transfer of property, and price.
- Representations made by the seller and buyer can become conditions or warranties in the contract. Conditions going to the root of the contract allow terminating it, while breaches of warranty only permit damages.
- The Act establishes rules for determining when property transfers from seller to buyer, such as when goods are ascertained, specific goods contracts, and goods sent on approval.
- An unpaid seller has rights against goods, like lien and stoppage in transit, and against the buyer personally
Bankruptcy Act 1997 (By BU AIS 2nd Batch)Jessic Sharif
This document is a presentation on the Bankruptcy Act of 1997 given by a group of students at the University of Barisal. It defines key terms related to bankruptcy such as adjudication, creditors, debtors, and discharge. It explains that bankruptcy is a legal process that allows individuals who cannot pay their debts to eliminate or discharge most of their debts and get a fresh start. It discusses who can and cannot be declared bankrupt under the Act and the conditions for creditors and debtors to file bankruptcy petitions. The effects of an order of adjudication are that the bankrupt must assist in realizing and distributing their property to creditors, all non-exempt property vests in the receiver or court, and the bankrupt loses power to enter transactions binding creditors
(1) Agency relationships are formed through mutual consent between a principal and an agent. (2) There are several types of agency relationships including express, implied, apparent, and ratification. (3) An agency can be terminated through acts of the parties such as agreement, time, or event, or by operation of law such as death, insanity, or impossibility.
Contract of indemnity contract of guaranteeAkash Goel
An indemnity contract involves two parties, where one party (the indemnifier) promises to compensate the other (the indemnified) for losses caused by the indemnifier or a third party. A guarantee contract involves three parties, where one (the surety) guarantees to perform a promise made by a second (the principal debtor) if the second defaults, to benefit a third (the creditor). The principal debtor is primarily liable, while the surety is secondarily liable. The surety's rights include subrogation to the creditor's rights against the debtor, benefit of securities held by the creditor, and reimbursement from the debtor for amounts paid. The surety is discharged by changes to
This document provides an overview of indemnity and guarantee contracts under business law. It defines indemnity as a contract where one party promises to save the other from loss caused by the promisor or a third party. Guarantee is defined as a contract to perform a third party's promise in case of default. The key differences between the two are that indemnity provides compensation for loss while guarantee provides relief to the debtor, and guarantee requires an existing liability while indemnity does not. The document outlines the parties involved, features, rights and discharge conditions for both indemnity and guarantee agreements.
An agency agreement is a legal contract creating a fiduciary relationship whereby the first party ("the principal") agrees that the actions of a second party ("the agent") binds the principal to later agreements made by the agent as if the principal had himself personally made the later agreements. The power of the agent to bind the principal is usually legally referred to as an authority. Agency created via an agreement may be a form of implied authority, such as when a person gives their credit card to a close relative, the cardholder may be required to pay for purchases made by the relative with their credit card.
Many states employ the equal dignity rule whereby the agency agreement must be in writing if the later agreement would also necessarily be written, such as a contract to buy thousands of dollars worth of goods.
An example of the existence of an agency agreement at issue in a 2006 court case arose when a tennis tournament sponsor sued Venus and Serena Williams for not participating. The sponsor argued that their father, Richard Williams, had committed to their participation in the tournament. The Williams sisters argued that their father did not have the authority to bind them to such an agreement. If their father did commit the sisters to play, the issue for the court to decide is whether a valid agency agreement existed between the Williams sisters and their father. If not, then they likely were not bound to his agreement under the law of agency.
Manufacturers and suppliers of goods frequently appoint agents to act on their behalf in promoting sales, both in the home country of the manufacturer as well as overseas. A formal agreement is usually signed setting out the commission the agent will receive, the territory, duration and other terms on which the principal and agent will do business together.
Within the European Union, there is legislation designed to give some protection to agents, in particular, the right to compensation in certain circumstances when an agency is terminated. The same applies to other parts of the world and in some countries, it is necessary for a foreign manufacturer to appoint as agent an individual or company that is a national of the country where the agency will operate.
An agent should be distinguished from a distributor – in commercial parlance, a distributor will buy stock from the supplier or principal and then sell it on to his customers at a markup, whereas an agent will find customers for the principal who then sells direct to the customers and pays commission to the agent.
Bailment describes a legal relationship in common law where physical possession of personal property, or a chattel, is transferred from one person (the "bailor") to another person (the "bailee") who subsequently has possession of the property. It arises when a person gives property to someone else for safekeeping and is a cause of action independent of contract or tort.
Bailment is distinguished from a contract of sale or a gift of property, as it only involves the transfer of possession and not its ownership. To create a bailment, the bailee must both intend to possess, and actually physically possess, the bailable chattel. Bailment is a typical common law concept although similar concepts exist in civil law (Spain- Depósito).
In addition, unlike a lease or rental, where ownership remains with the lessor but the lessee is allowed to use the property, the bailee is generally not entitled to the use of the property while it is in his possession.
A common example of bailment is leaving your car with a valet. Leaving your car in an unattended parking garage is typically a license rather than a bailment, as the car park's intent to possess your car cannot be shown. However, bailments arise in many other situations, including terminated leases of property, warehousing (including store-it-yourself) or in a carriage of goods.
The document discusses principles of lending for banks. It covers key lending principles such as liquidity, safety, diversity, stability and profitability for banks' lending activities. It also discusses principles for individual loans including the 5 C's of lending (character, capacity, capital, collateral, conditions), types of security for loans (lien, negative lien, pledge, hypothecation, mortgage), and priority sector lending targets and categories (agriculture, micro/small enterprises, education, housing, weaker sections).
The document summarizes key aspects of the Sale of Goods Act 1930 in India, including:
- Essential elements of a valid contract of sale are two parties (buyer and seller), goods, transfer of property, and price.
- Representations made by the seller and buyer can become conditions or warranties in the contract. Conditions going to the root of the contract allow terminating it, while breaches of warranty only permit damages.
- The Act establishes rules for determining when property transfers from seller to buyer, such as when goods are ascertained, specific goods contracts, and goods sent on approval.
- An unpaid seller has rights against goods, like lien and stoppage in transit, and against the buyer personally
The document discusses the law of agency, including defining an agent and principal, the different types of agents such as brokers and factors, how agency is created through express, implied, or ratified agreements, and the roles of sub-agents and co-agents. It provides learning objectives and details the definition and nature of agency, methods of creating agency, different classes of agents, and rules around sub-agents and co-agents.
This document summarizes key aspects of contracts of indemnity and guarantee under Indian contract law:
1) A contract of indemnity promises to save another from loss caused by the promisor or third parties, and the indemnified has rights to damages, costs, and sums from any compromise.
2) For a contract of guarantee, a surety guarantees to perform a promise or discharge the liability of a third party (principal debtor) if they default, with the creditor as the other party.
3) A surety's liability is secondary and coextensive with the principal debtor, including all costs, and the surety has rights against the creditor and principal debtor, including rights
This document discusses contracts of guarantee under Indian law. It defines key parties in a contract of guarantee as the surety, principal debtor, and creditor. It outlines types of guarantees as specific or continuing. It explains rules around revocation of continuing guarantees, liability of the surety, discharge of the surety, consideration, and distinction between contracts of guarantee, indemnity and insurance. Key points covered are types of guarantees, rights and liabilities of parties, essential elements, and discharge or revocation of a guarantee.
The document discusses contracts of indemnity and guarantee. It defines a contract of indemnity as one where one party promises to save the other from loss. A contract of guarantee involves a third party (surety) who promises to be responsible for another's (debtor's) debt or obligation if they fail to perform. The key parties and essential elements of each contract are outlined. Rights of the indemnity holder and surety are also described, as well as types of guarantees and ways a surety can be discharged from liability.
This document discusses the key aspects of a contract of agency under Indian law. It defines agency as a contract where one person employs another to act on their behalf or represent them in dealings with third parties.
It outlines the parties to an agency contract - the principal who employs the agent, and the agent who acts on the principal's behalf. It notes that consideration is not required to create an agency. Various modes of creating an agency are discussed, including express, implied, ratification, operation of law, estoppel and necessity.
The document also examines the extent of an agent's authority, their duties to conduct business diligently and account for it properly, and the principal's duties to indemnify the agent
The document discusses the Negotiable Instruments Act of 1881 in India. It defines key terms like negotiable instruments, promissory notes, bills of exchange, and cheques. It outlines the essential characteristics of negotiable instruments like property, title, rights, and presumptions. It also summarizes the key elements and differences between promissory notes, bills of exchange, inland/foreign bills, time/demand bills, trade/accommodation bills, and cheques as defined by the Act.
Commercial law, also known as business law or corporate law, is the body of law that applies to the rights, relations, and conduct of persons and businesses engaged in commerce, merchandising, trade, and sales.[1] It is often considered to be a branch of civil law and deals with issues of both private law and public law.
Commercial law includes within its compass such titles as principal and agent; carriage by land and sea; merchant shipping; guarantee; marine, fire, life, and accident insurance; bills of exchange, negotiable instruments, contracts and partnership.[2] It can also be understood to regulate corporate contracts, hiring practices, and the manufacture and sales of consumer goods. Many countries have adopted civil codes that contain comprehensive statements of their commercial law.In the United States, commercial law is the province of both the United States Congress, under its power to regulate interstate commerce, and the states, under their police power. Efforts have been made to create a unified body of commercial law in the United States; the most successful of these attempts has resulted in the general adoption of the Uniform Commercial Code, which has been adopted in all 50 states (with some modification by state legislatures), the District of Columbia, and the U.S. territories.
This document discusses different types of negotiable instruments including cheques, promissory notes, and bills of exchange. It provides definitions and key details about each:
- A negotiable instrument is a written order promising to pay a sum of money that is transferable and contains an unconditional promise to pay a fixed amount to the bearer or on demand.
- The main types are cheques (drawn on a bank and payable on demand), promissory notes (containing an unconditional undertaking by the maker to pay a certain sum to the payee), and bills of exchange (containing an unconditional order by the drawer to pay a certain sum to the payee).
- Each type has standard features like being
Payment in due course refers to making payment according to the terms of a negotiable instrument, such as a check or promissory note, in good faith and without negligence to the person in possession of the instrument. It is defined in Section 10 of the Negotiable Instruments Act as payment made in accordance with the apparent terms of the instrument and satisfies conditions like being made in good faith, without negligence, and to the person in possession. A bank or other party making payment in due course according to this definition will be protected and obtain a valid discharge against the holder of the instrument.
The document discusses the doctrine of caveat emptor, or "let the buyer beware." It states that under this doctrine, there is no implied warranty on the quality or fitness of goods unless exceptions apply. The exceptions include misrepresentation by the seller, concealment of latent defects, sale by description or sample that does not match, and goods intended for a particular purpose or required to have merchantable quality. While caveat emptor was important historically, its rigors have been mitigated by modern legislation, competition, and consumer awareness. The relevance of caveat emptor has declined and should be replaced by "caveat vendor," or let the seller beware.
The document discusses the process of winding up or dissolving a company in India. It can be done either voluntarily through a resolution of shareholders/creditors or compulsory through an order of the court. The liquidator takes control of the company's assets and property to pay off debts and distribute any surplus to shareholders. Various grounds for voluntary and compulsory winding up are provided, along with priority of payments of liabilities and special provisions for different types of companies like government companies and foreign companies.
This document discusses various aspects of contract law including performance of contracts, discharge of contracts, breach of contracts, and remedies for breach of contracts. It defines performance of contracts as both parties fulfilling their obligations. It describes two types of performance - actual and attempted. It also discusses who can demand performance and who will perform the contract. The document then covers quasi contracts, discharge of contracts through various modes like performance, agreement, impossibility of performance, lapse of time, and operation of law. It defines breach of contracts and provides examples of different remedies for breach like recission, specific performance, injunction, quantum merit, and damages.
The document discusses the various ways an agency relationship can be terminated, including by agreement between the principal and agent, revocation by the principal or agent, completion of the business task, expiry of time as defined in the contract, death or insanity of the principal or agent, insolvency of the principal, destruction of the subject matter, the principal and agent becoming alien enemies due to a change in laws or circumstances, or a change in applicable laws. It also outlines the key rights and duties of both the principal and agent in an agency relationship.
This document discusses different types of business structures including sole traders, partnerships, and limited companies.
Sole traders are owned and run by one person, finance comes from personal savings, and the owner takes on unlimited liability but has full control. Partnerships have 2-20 owners who share capital, profits, and losses through a deed of partnership. Limited companies have a separate legal identity from owners, with shareholders electing directors to run the business and providing limited liability.
The key differences between structures are ownership, control, financing, profit distribution, legal requirements, advantages like liability and financing options, and disadvantages like decision making and responsibility. Limited companies generally allow greater capital and continuity compared to sole traders and partnerships.
Presentation On 7 Steps To Effective Credit Controlmorgangfm
The document provides 7 tips for effective credit management: 1) Control who gets credit by assessing risk through credit checks and setting limits. 2) Have a clear credit policy detailing terms, collection processes, and invoice formats. 3) Build rapport with customers through regular communication and visits to maintain ongoing relationships. 4) Ensure the right staff and resources are in place to handle customer service and credit monitoring responsibilities. 5) Establish a consistent procedure for addressing payment queries quickly. 6) Communicate any issues promptly that could impact payments. 7) Generate monthly performance reports including aged debt, KPIs, cash flow forecasts, top customer details, and outstanding queries for close review.
This document provides an overview of the law of contracts as it relates to guarantees. It defines a guarantee as a tripartite agreement involving a principal debtor, creditor, and surety where the surety assumes secondary liability for the debt if the principal debtor defaults. The document outlines the essential elements of a valid guarantee contract and distinguishes guarantees from indemnity agreements. It also discusses different types of guarantees like continuing guarantees and how continuing guarantees can be revoked. Overall, the document provides a high-level introduction to key concepts regarding guarantees under contract law in 3 sentences or less.
This document discusses bailment and pledge under Indian contract law. It defines bailment as the delivery of goods by one person to another for a specific purpose, to be returned after. The person delivering the goods is the bailor and the person receiving them is the bailee. Bailment can be gratuitous (without payment) or for a reward. A pledge is a type of bailment where goods are delivered as security for a debt. The document outlines the essential elements, types, duties of bailors/bailees, rights of bailors/bailees, and termination of bailment. It compares bailment to sale and bailment to pledge.
The document discusses various types of contracts under Indian contract law including contingent contracts, quasi contracts, indemnity contracts, guarantee contracts, bailment contracts, pledge contracts, and agency contracts.
It provides definitions and examples for each type of contract. It explains key elements such as the parties involved, essential terms, creation and termination conditions. It also outlines the duties and rights of parties under different contracts. The document serves as a reference for understanding the nature and workings of various contracts governed by the Indian Contract Act, 1872.
This document discusses various ways in which a surety can be discharged from liability. It defines a surety as a party that guarantees to perform a promise or discharge the liability of a third party (principal debtor) in case of default. A surety can be discharged through revocation, the death of the surety, variance in contract terms, release or discharge of the principal debtor, composition or extension of time given to the debtor, or actions by the creditor that impair the surety's remedies against the debtor. The document provides details on the application of these discharge methods and includes relevant case law examples.
This document discusses the concept of a mercantile agent under Indian law. It defines a mercantile agent as an agent authorized by a principal to purchase and sell goods or raise money using the principal's goods as collateral. The document outlines the functions, types, relevant legal provisions, case laws, and comparisons with agency law in other jurisdictions like Kuwait regarding mercantile agents. It concludes with some suggested improvements to Indian law regarding agent liability, rights of gratuitous agents, and an agent's right to sue for accounts.
Bankers have important rights and obligations regarding their customers. Some key rights include the right of lien, which allows bankers to retain customer goods/securities until debts are repaid, and the right of set-off, which lets bankers adjust debit and credit balances in different customer accounts. Bankers also have obligations like honoring customer checks if sufficient funds are available and maintaining secrecy of customer accounts, though some disclosure is permitted by law or to protect the banker's interests.
The document discusses the law of agency, including defining an agent and principal, the different types of agents such as brokers and factors, how agency is created through express, implied, or ratified agreements, and the roles of sub-agents and co-agents. It provides learning objectives and details the definition and nature of agency, methods of creating agency, different classes of agents, and rules around sub-agents and co-agents.
This document summarizes key aspects of contracts of indemnity and guarantee under Indian contract law:
1) A contract of indemnity promises to save another from loss caused by the promisor or third parties, and the indemnified has rights to damages, costs, and sums from any compromise.
2) For a contract of guarantee, a surety guarantees to perform a promise or discharge the liability of a third party (principal debtor) if they default, with the creditor as the other party.
3) A surety's liability is secondary and coextensive with the principal debtor, including all costs, and the surety has rights against the creditor and principal debtor, including rights
This document discusses contracts of guarantee under Indian law. It defines key parties in a contract of guarantee as the surety, principal debtor, and creditor. It outlines types of guarantees as specific or continuing. It explains rules around revocation of continuing guarantees, liability of the surety, discharge of the surety, consideration, and distinction between contracts of guarantee, indemnity and insurance. Key points covered are types of guarantees, rights and liabilities of parties, essential elements, and discharge or revocation of a guarantee.
The document discusses contracts of indemnity and guarantee. It defines a contract of indemnity as one where one party promises to save the other from loss. A contract of guarantee involves a third party (surety) who promises to be responsible for another's (debtor's) debt or obligation if they fail to perform. The key parties and essential elements of each contract are outlined. Rights of the indemnity holder and surety are also described, as well as types of guarantees and ways a surety can be discharged from liability.
This document discusses the key aspects of a contract of agency under Indian law. It defines agency as a contract where one person employs another to act on their behalf or represent them in dealings with third parties.
It outlines the parties to an agency contract - the principal who employs the agent, and the agent who acts on the principal's behalf. It notes that consideration is not required to create an agency. Various modes of creating an agency are discussed, including express, implied, ratification, operation of law, estoppel and necessity.
The document also examines the extent of an agent's authority, their duties to conduct business diligently and account for it properly, and the principal's duties to indemnify the agent
The document discusses the Negotiable Instruments Act of 1881 in India. It defines key terms like negotiable instruments, promissory notes, bills of exchange, and cheques. It outlines the essential characteristics of negotiable instruments like property, title, rights, and presumptions. It also summarizes the key elements and differences between promissory notes, bills of exchange, inland/foreign bills, time/demand bills, trade/accommodation bills, and cheques as defined by the Act.
Commercial law, also known as business law or corporate law, is the body of law that applies to the rights, relations, and conduct of persons and businesses engaged in commerce, merchandising, trade, and sales.[1] It is often considered to be a branch of civil law and deals with issues of both private law and public law.
Commercial law includes within its compass such titles as principal and agent; carriage by land and sea; merchant shipping; guarantee; marine, fire, life, and accident insurance; bills of exchange, negotiable instruments, contracts and partnership.[2] It can also be understood to regulate corporate contracts, hiring practices, and the manufacture and sales of consumer goods. Many countries have adopted civil codes that contain comprehensive statements of their commercial law.In the United States, commercial law is the province of both the United States Congress, under its power to regulate interstate commerce, and the states, under their police power. Efforts have been made to create a unified body of commercial law in the United States; the most successful of these attempts has resulted in the general adoption of the Uniform Commercial Code, which has been adopted in all 50 states (with some modification by state legislatures), the District of Columbia, and the U.S. territories.
This document discusses different types of negotiable instruments including cheques, promissory notes, and bills of exchange. It provides definitions and key details about each:
- A negotiable instrument is a written order promising to pay a sum of money that is transferable and contains an unconditional promise to pay a fixed amount to the bearer or on demand.
- The main types are cheques (drawn on a bank and payable on demand), promissory notes (containing an unconditional undertaking by the maker to pay a certain sum to the payee), and bills of exchange (containing an unconditional order by the drawer to pay a certain sum to the payee).
- Each type has standard features like being
Payment in due course refers to making payment according to the terms of a negotiable instrument, such as a check or promissory note, in good faith and without negligence to the person in possession of the instrument. It is defined in Section 10 of the Negotiable Instruments Act as payment made in accordance with the apparent terms of the instrument and satisfies conditions like being made in good faith, without negligence, and to the person in possession. A bank or other party making payment in due course according to this definition will be protected and obtain a valid discharge against the holder of the instrument.
The document discusses the doctrine of caveat emptor, or "let the buyer beware." It states that under this doctrine, there is no implied warranty on the quality or fitness of goods unless exceptions apply. The exceptions include misrepresentation by the seller, concealment of latent defects, sale by description or sample that does not match, and goods intended for a particular purpose or required to have merchantable quality. While caveat emptor was important historically, its rigors have been mitigated by modern legislation, competition, and consumer awareness. The relevance of caveat emptor has declined and should be replaced by "caveat vendor," or let the seller beware.
The document discusses the process of winding up or dissolving a company in India. It can be done either voluntarily through a resolution of shareholders/creditors or compulsory through an order of the court. The liquidator takes control of the company's assets and property to pay off debts and distribute any surplus to shareholders. Various grounds for voluntary and compulsory winding up are provided, along with priority of payments of liabilities and special provisions for different types of companies like government companies and foreign companies.
This document discusses various aspects of contract law including performance of contracts, discharge of contracts, breach of contracts, and remedies for breach of contracts. It defines performance of contracts as both parties fulfilling their obligations. It describes two types of performance - actual and attempted. It also discusses who can demand performance and who will perform the contract. The document then covers quasi contracts, discharge of contracts through various modes like performance, agreement, impossibility of performance, lapse of time, and operation of law. It defines breach of contracts and provides examples of different remedies for breach like recission, specific performance, injunction, quantum merit, and damages.
The document discusses the various ways an agency relationship can be terminated, including by agreement between the principal and agent, revocation by the principal or agent, completion of the business task, expiry of time as defined in the contract, death or insanity of the principal or agent, insolvency of the principal, destruction of the subject matter, the principal and agent becoming alien enemies due to a change in laws or circumstances, or a change in applicable laws. It also outlines the key rights and duties of both the principal and agent in an agency relationship.
This document discusses different types of business structures including sole traders, partnerships, and limited companies.
Sole traders are owned and run by one person, finance comes from personal savings, and the owner takes on unlimited liability but has full control. Partnerships have 2-20 owners who share capital, profits, and losses through a deed of partnership. Limited companies have a separate legal identity from owners, with shareholders electing directors to run the business and providing limited liability.
The key differences between structures are ownership, control, financing, profit distribution, legal requirements, advantages like liability and financing options, and disadvantages like decision making and responsibility. Limited companies generally allow greater capital and continuity compared to sole traders and partnerships.
Presentation On 7 Steps To Effective Credit Controlmorgangfm
The document provides 7 tips for effective credit management: 1) Control who gets credit by assessing risk through credit checks and setting limits. 2) Have a clear credit policy detailing terms, collection processes, and invoice formats. 3) Build rapport with customers through regular communication and visits to maintain ongoing relationships. 4) Ensure the right staff and resources are in place to handle customer service and credit monitoring responsibilities. 5) Establish a consistent procedure for addressing payment queries quickly. 6) Communicate any issues promptly that could impact payments. 7) Generate monthly performance reports including aged debt, KPIs, cash flow forecasts, top customer details, and outstanding queries for close review.
This document provides an overview of the law of contracts as it relates to guarantees. It defines a guarantee as a tripartite agreement involving a principal debtor, creditor, and surety where the surety assumes secondary liability for the debt if the principal debtor defaults. The document outlines the essential elements of a valid guarantee contract and distinguishes guarantees from indemnity agreements. It also discusses different types of guarantees like continuing guarantees and how continuing guarantees can be revoked. Overall, the document provides a high-level introduction to key concepts regarding guarantees under contract law in 3 sentences or less.
This document discusses bailment and pledge under Indian contract law. It defines bailment as the delivery of goods by one person to another for a specific purpose, to be returned after. The person delivering the goods is the bailor and the person receiving them is the bailee. Bailment can be gratuitous (without payment) or for a reward. A pledge is a type of bailment where goods are delivered as security for a debt. The document outlines the essential elements, types, duties of bailors/bailees, rights of bailors/bailees, and termination of bailment. It compares bailment to sale and bailment to pledge.
The document discusses various types of contracts under Indian contract law including contingent contracts, quasi contracts, indemnity contracts, guarantee contracts, bailment contracts, pledge contracts, and agency contracts.
It provides definitions and examples for each type of contract. It explains key elements such as the parties involved, essential terms, creation and termination conditions. It also outlines the duties and rights of parties under different contracts. The document serves as a reference for understanding the nature and workings of various contracts governed by the Indian Contract Act, 1872.
This document discusses various ways in which a surety can be discharged from liability. It defines a surety as a party that guarantees to perform a promise or discharge the liability of a third party (principal debtor) in case of default. A surety can be discharged through revocation, the death of the surety, variance in contract terms, release or discharge of the principal debtor, composition or extension of time given to the debtor, or actions by the creditor that impair the surety's remedies against the debtor. The document provides details on the application of these discharge methods and includes relevant case law examples.
This document discusses the concept of a mercantile agent under Indian law. It defines a mercantile agent as an agent authorized by a principal to purchase and sell goods or raise money using the principal's goods as collateral. The document outlines the functions, types, relevant legal provisions, case laws, and comparisons with agency law in other jurisdictions like Kuwait regarding mercantile agents. It concludes with some suggested improvements to Indian law regarding agent liability, rights of gratuitous agents, and an agent's right to sue for accounts.
Bankers have important rights and obligations regarding their customers. Some key rights include the right of lien, which allows bankers to retain customer goods/securities until debts are repaid, and the right of set-off, which lets bankers adjust debit and credit balances in different customer accounts. Bankers also have obligations like honoring customer checks if sufficient funds are available and maintaining secrecy of customer accounts, though some disclosure is permitted by law or to protect the banker's interests.
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The document discusses various concepts related to contracts, negotiable instruments, and sale of goods. It provides definitions and explanations of indemnity, guarantee, bailment, pledge, agency, conditions and warranties in sale of goods. It also discusses negotiable instruments like promissory notes, bills of exchange, and cheques. Key points include definitions of indemnity and guarantee, duties of bailors and bailees, implied conditions and warranties in sale, features of negotiable instruments, and characteristics of promissory notes, bills of exchange, and cheques.
Ma0037 banking related laws and practicessmumbahelp
This document provides information about getting fully solved assignments for the MBA semester 3 Banking Related Laws and Practices course. It lists the course code, credits, book ID and details that answers should be between 400-600 words. It then provides 6 questions related to the course and asks students to answer all questions. The questions cover topics like defining banking and negotiable instruments, duties of a bailee, Clayton's case and the constitutional validity of the DRT Act. It directs students to send their semester and specialization details to the provided email ID or call the phone number to get fully solved assignments.
This Docuiment was published on Linkedin , because it gives businesses familiarity to the Business environment and Company options on how to Do business in kuwait with realiable sources, for Direct foreign investment in Kuwait
The document discusses insolvency laws in the United Arab Emirates (UAE). It outlines the key pieces of legislation governing insolvency, including limitations of the current framework. The importance of developed insolvency laws for protecting creditors and facilitating investment is highlighted. Main drawbacks of the UAE's existing insolvency system include limited applicability, a slow court-based process, and criminal liability for debtors. The evolution of the insolvency market in the UAE is discussed, along with key proposed features and procedures of a new insolvency law aimed at being less punitive and facilitating reorganization over liquidation.
The relationship between a banker and a customer can take several forms depending on the type of account or transaction. The main relationships include:
1. Creditor-debtor, with the customer as creditor and banker as debtor for deposit accounts.
2. Debtor-creditor, with the roles reversed for loan accounts where the customer is the debtor.
3. Trustee-beneficiary for safe deposit accounts, where the banker acts as trustee for items kept for safekeeping.
The banker also has obligations to maintain customer confidentiality and honor checks properly presented, while customers must abide by terms of accounts like joint accounts.
This document discusses investment houses and securities brokers/dealers under Philippine law. It defines investment houses as enterprises that engage in underwriting securities of other corporations. Investment houses must be organized as stock corporations and meet minimum capitalization and ownership requirements. The document also defines securities brokers, dealers, and salesmen and outlines their registration and licensing requirements with the Securities and Exchange Commission. It discusses exempt securities and restrictions on borrowing by members, brokers, and dealers.
Restraint of trade and legal proceedingsEunice Ang
This document discusses restraint of trade and legal proceedings under contract law. It begins by defining restraint of trade and listing exceptions where restrictive agreements may be allowed, such as when selling the goodwill of a business. It examines principles for enforcing restrictive covenants, including that the restraint must protect a legitimate business interest and be reasonable in scope and duration. It also discusses agreements that restrict legal proceedings. In summary, while restraint of trade agreements are generally void, exceptions allow reasonable restrictions to protect trade secrets, customer connections, and partnership goodwill under certain conditions.
The document discusses key concepts in US bankruptcy law, including:
1) Chapter 11 bankruptcy allows for reorganization of a business while Chapter 7 involves liquidation of assets. Chapter 11 is increasingly being used for liquidations through selling the business as a "going concern".
2) Upon filing for bankruptcy, an automatic stay is put into place that prevents creditors from collecting pre-petition debts or taking other collection actions without court approval.
3) Debtors often file "first day motions", including motions to approve debtor-in-possession (DIP) financing to continue operating during bankruptcy. Courts usually approve DIP financing to allow debtors to continue operating.
4) The document provides an overview
This document discusses different types of securities used in Oman, including pledge, assignment, and guarantee. It explains that a pledge requires transferring possession of the collateral to the pledgee and involves shares, stocks, and movable assets. An assignment does not qualify as true security under Omani law but can be created by contract, requiring notice to the debtor. A guarantee legally obligates a third party to fulfill another's obligations if they default. The document provides details on perfecting and enforcing each type of security.
This document discusses different types of securities used in Oman, including pledges, assignments, and guarantees. It explains that a pledge requires transferring possession of the collateral to the pledgee and executing a legal instrument. An assignment does not have to be registered, but the assignor must notify the debtor and obtain acknowledgment. A guarantee requires consent from all company members or a shareholder resolution. To enforce any of these securities, a claim must be filed in primary court along with supporting documents.
This document discusses different types of securities used in Oman, including pledge, assignment, and guarantee. It explains that a pledge requires transferring possession of the collateral to the pledgee and involves shares, stocks, and movable assets. An assignment does not qualify as true security under Omani law but can be created by contract, requiring notice to the debtor. A guarantee legally obligates a third party to fulfill another's obligations if they default. The document provides details on perfecting and enforcing each type of security.
MEMORANDUM OF ASSOCIATION AND ARTICLES OF ASSOCIATION WITH DOCTRINE OF ULTRA...Anushka Singh
This document discusses the memorandum of association and articles of association of a company under Indian law. It provides details on the memorandum of association, including its purpose and required clauses. It also explains the doctrines of ultra vires and indoor management, which relate to a company acting beyond its powers as defined in the memorandum or internal management issues, respectively. The memorandum establishes the fundamental conditions and defines the company's powers, and any acts beyond these powers would be considered ultra vires and void.
The document discusses various topics in commercial law, including negotiable instruments, corporations, banking laws, credit transactions, intellectual property law, transportation law, and the duties of common carriers. Specifically, it defines negotiable instruments like promissory notes, bills of exchange, and checks. It also outlines the key aspects of corporation law like piercing the corporate veil. Banking laws and the parties involved in banking are defined. The various types of credit transactions such as loans, deposits, pledges, and mortgages are also summarized. Finally, the differences between trademarks, patents, and copyrights are highlighted under intellectual property law.
The document provides an overview of the principles of commercial law, including:
1) It defines commercial law and discusses that it applies to commercial acts by both merchants and sometimes non-merchants.
2) Commercial law is a branch of private law that governs relations where parties act as private persons, unlike public law.
3) It discusses the objective and subjective theories around what constitutes a commercial act and who commercial law applies to.
4) It explains that commercial law is distinct from civil law due to the swiftness and credit involved in commercial transactions.
Factoring is a financial service where a company can sell its accounts receivable to a factoring company in exchange for upfront capital. In Greece, factoring makes up 5% of GDP and the country ranks highly in export factoring. Factoring services are regulated and can only be provided by banks and specialized factoring companies authorized by the Bank of Greece. Factoring provides benefits to companies such as improved cash flow, risk management of debts, and debt collection services. The costs of factoring typically range from 0.5-2.5% of the receivables amount plus interest.
This document provides an overview and definitions for key terms in the Financial Rehabilitation and Insolvency Act of 2010 in the Philippines. It defines terms like debtor, claim, commencement date, rehabilitation, and liquidation. It also outlines exclusions from the Act, such as banks and insurance companies. The Act aims to encourage rehabilitation of financially distressed enterprises when possible, and orderly liquidation when rehabilitation is not feasible, to protect creditor rights and maximize asset value.
A Strategic Approach: GenAI in EducationPeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...Dr. Vinod Kumar Kanvaria
Exploiting Artificial Intelligence for Empowering Researchers and Faculty,
International FDP on Fundamentals of Research in Social Sciences
at Integral University, Lucknow, 06.06.2024
By Dr. Vinod Kumar Kanvaria
Thinking of getting a dog? Be aware that breeds like Pit Bulls, Rottweilers, and German Shepherds can be loyal and dangerous. Proper training and socialization are crucial to preventing aggressive behaviors. Ensure safety by understanding their needs and always supervising interactions. Stay safe, and enjoy your furry friends!
How to Add Chatter in the odoo 17 ERP ModuleCeline George
In Odoo, the chatter is like a chat tool that helps you work together on records. You can leave notes and track things, making it easier to talk with your team and partners. Inside chatter, all communication history, activity, and changes will be displayed.
বাংলাদেশের অর্থনৈতিক সমীক্ষা ২০২৪ [Bangladesh Economic Review 2024 Bangla.pdf] কম্পিউটার , ট্যাব ও স্মার্ট ফোন ভার্সন সহ সম্পূর্ণ বাংলা ই-বুক বা pdf বই " সুচিপত্র ...বুকমার্ক মেনু 🔖 ও হাইপার লিংক মেনু 📝👆 যুক্ত ..
আমাদের সবার জন্য খুব খুব গুরুত্বপূর্ণ একটি বই ..বিসিএস, ব্যাংক, ইউনিভার্সিটি ভর্তি ও যে কোন প্রতিযোগিতা মূলক পরীক্ষার জন্য এর খুব ইম্পরট্যান্ট একটি বিষয় ...তাছাড়া বাংলাদেশের সাম্প্রতিক যে কোন ডাটা বা তথ্য এই বইতে পাবেন ...
তাই একজন নাগরিক হিসাবে এই তথ্য গুলো আপনার জানা প্রয়োজন ...।
বিসিএস ও ব্যাংক এর লিখিত পরীক্ষা ...+এছাড়া মাধ্যমিক ও উচ্চমাধ্যমিকের স্টুডেন্টদের জন্য অনেক কাজে আসবে ...
This presentation includes basic of PCOS their pathology and treatment and also Ayurveda correlation of PCOS and Ayurvedic line of treatment mentioned in classics.
How to Manage Your Lost Opportunities in Odoo 17 CRMCeline George
Odoo 17 CRM allows us to track why we lose sales opportunities with "Lost Reasons." This helps analyze our sales process and identify areas for improvement. Here's how to configure lost reasons in Odoo 17 CRM
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
Dear Dr. Kornbluth and Mr. Gorenberg,
The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
This Congress will not stand idly by and allow an environment hostile to Jewish students to persist. The House believes that your institution is in violation of Title VI of the Civil Rights Act, and the inability or
unwillingness to rectify this violation through action requires accountability.
Postsecondary education is a unique opportunity for students to learn and have their ideas and beliefs challenged. However, universities receiving hundreds of millions of federal funds annually have denied
students that opportunity and have been hijacked to become venues for the promotion of terrorism, antisemitic harassment and intimidation, unlawful encampments, and in some cases, assaults and riots.
The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
• The Committee on Oversight and Accountability is investigating the sources of funding and other support flowing to groups espousing pro-Hamas propaganda and engaged in antisemitic harassment and intimidation of students. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives and has broad authority to investigate “any matter” at “any time” under House Rule X.
• The Committee on Ways and Means has been investigating several universities since November 15, 2023, when the Committee held a hearing entitled From Ivory Towers to Dark Corners: Investigating the Nexus Between Antisemitism, Tax-Exempt Universities, and Terror Financing. The Committee followed the hearing with letters to those institutions on January 10, 202
Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
Objective:
Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
it describes the bony anatomy including the femoral head , acetabulum, labrum . also discusses the capsule , ligaments . muscle that act on the hip joint and the range of motion are outlined. factors affecting hip joint stability and weight transmission through the joint are summarized.
How to Build a Module in Odoo 17 Using the Scaffold MethodCeline George
Odoo provides an option for creating a module by using a single line command. By using this command the user can make a whole structure of a module. It is very easy for a beginner to make a module. There is no need to make each file manually. This slide will show how to create a module using the scaffold method.
A review of the growth of the Israel Genealogy Research Association Database Collection for the last 12 months. Our collection is now passed the 3 million mark and still growing. See which archives have contributed the most. See the different types of records we have, and which years have had records added. You can also see what we have for the future.
1. OUTLINE OF THE EGYPTIAN BANKRUPTCY LAW
CONDTIONS - EFFECTS
Adopted from
Bankruptcy – Part 1
Prof. Dr. Nagy Abdel MOAMEN
Professor of commercial Law,
Faculty of Law, Ain Shams University
Translated by
Dr. Yassin EL SHAZLY
Lecturer of commercial Law,
Faculty of Law, Ain Shams University
1
2. Meaning of bankruptcy
The plain meaning of the term bankruptcy
could be incapacity or weakness. However,
from a legal perspective it has a different
meaning.
Bankruptcy is a system applied only to traders
and which aims to establish a collective
execution on the funs of the debtor who
stopped paying his commercial debts.
This system includes a series of procedures
and rules designed to such procedures
2
3. Meaning of bankruptcy
The legislator states that the bankruptcy
decisions will consequently prevent the
debtor from managing his funds and in the
time will entrust the distribution of his funds
to the creditors conduct to an agent called
trustee.
This system has two major objectives:
Firstly, bankruptcy aims to protect the
creditors from their bankrupted debtor
whose property is not sufficient to meet the
amount of their debts. 3
4. Meaning of bankruptcy
Secondly, bankruptcy system aims to protect
creditors themselves from each other. In fact, the
bankruptcy situation could create a struggle among
the creditors as every one of them will try to collect
separately and rapidly his debts trying to get the
greatest possible interests from the debtor,
regardless the right and the interest of the other
creditors.
To avoid such a prejudice of such a conflict the
bankruptcy system is used in order to create a fair
distribution of the debtor funs according to a
collective procedure in which all creditors are
included.
4
8. Regarding the physical person -1
1. Taking the commercial acts as a
profession
2. Professionalism should be in the
person name and for his own account
3. Enjoying the legal capacity
4. Being obligated of holding
commercial books ( article 21)
8
10. 2- Regarding the moral persons
1. The company should take one of the forms
mentioned in the law ( article 10-2)
2. Special case : public sector company –
public private companies)
3. Exception related to the silent company
4. The company in the phase of liquidation
10
12. Definition
Art no 10 of the new commercial code defines the
merchant as: exercises regularly commercial
transactions in own name, and for his own
account.
2- "Every company which takes one of the forms
stipulated in the company law for whichever
purpose it is establish
From that we can understand that the law
recognizes two kinds of merchants : A person who
acts by his own name and for his a commercial act
and takes this act as a profession. And, a
company that takes the form of commercial
company if this company is engaged in civil acts
(e.g. law firms)
14. Professionalism=Regular basis
That is to say a merchant is one who operates at least
one of the acts presented by law to be commercial in
nature such as buying for the purpose to sell or lease,
etc.
Should any one carries a commercial transaction for
once, he cannot be considered a merchant. A man
purchase an aircraft or establishes a company the act
is commercial but he is not a merchant unless he
makes this act regularly and takes it as a profession.
It was decided that persons who are.- being prevented
from practicing trade such as judges or lawyers are
deemed merchants if they practice these acts on a
regular basis in spite of this prohibition.
15. Professionalism=Regular basis
Art. 17 of the new code which stipulates. "If
any person exercises commerce whom is fo,-
bidden from trading by laws, regulations and/
or a special system will be considered as a
merchant, and the provisions of commercial
law are applicable to him.
A profession means that the person involved
must carry on this business regularly as an
occupation he follows for making livelihood.
Should a mere employee has a taxi which he
sometimes uses to improve his income he is
not a trader because he does not depend
upon such commercial act for living.
16. On the merchant's own name, and
for his own ac-count
It is submitted that exercising of the commercial
acts must be on the merchant's own name, and for
his own ac-count: Thus an employee or sales
representative will not be qualified as merchant
but his master is. On the contrary a commercial
agent can be considered a merchant when he acts
independently even for the principal account or by
the principal naive. Such as brokers, commission
agents and commercial agents.
In the case of agents the issue will de-pend upon
the control and supervision practiced by the prin-
cipal and the kind of independence he has in
performing the job.
17. On the merchant's own name, and
for his own ac-count
The question is raised where a man practicing trade
behind the name of somebody else. According to Art 18
of the code the character of a merchant shall be proved
to any-one who exercises commerce professionally by
a false name, or who is concealed behind another
person, besides proving the said characteristic to the
ostensible person.
Professionalism is not presumed but must be proved.
The burden of proving such thing lies upon the person
who relays upon the charac-ter of the merchant. (e.g.
man wants claim bankruptcy of his debtor). However, it
could be proved by the fact that the al-leged person has
an office and employees of special skill or by the fact
that the person is registered in the commercial
Registry. It is also for the court to deduce the
characteristic of a merchant for someone
18. On the merchant's own name, and
for his own ac-count
According to art no. 14 of the new code a
man as-sumes the character of merchant by
advertising it through journals, circulars
radio, television, or any other means, will be
presumed as a merchant. This assumption
can be dis-proved by proving that he did not
in fact exercise commerce.
Anyway the state and other organs
associations and departments of public law
shall not have the character of a merchant
although commercial law rules will apply to
com-mercial operations done by them. (art 20
of the code).
19. Legal capacity
(1) Anyone reaches the age of twenty one has the right of
exercising commerce in Egypt. The rule will include any
Egyptian woman and also any foreigner even if the law of his
country deems him a minor in such age (21 years)'
(2)- Egyptians minor, completed 18 years old male or female
can exercise. commerce, subject to the obtaining of special
permission from the competent court.' Such a person must be
express clear and limited. A court permit may be conditional by
restricting certain transactions or limited to certain fund.
.A minor who is authorized to practice tirade has full capacity
to carry out all legal operations which his trade re-quires. He
has to fulfill the legal obligations of a `merchants and can.
declared bankrupt.
(3) For aliens the matter need more details: alt must be noted
that aliens even adults are prevented from practicing some
kinds of business (e.g. importing, agency).
21. 1- what is meant by
discontinue of payment
First view :
The merchant should stop paying the debts
of his creditors regardless the reason behind
the discontinue of payment
Second view :
The discontinue of payment of the creditors
should be due to a real financial turbulence
which the debtor is passing and a real crisis
facing him
21
23. Elements of the -2
discontinue payment
1- the actual or material stop of payment :
It means that the debtor should stop paying
his debts.
It should be noted that a merchant can not
be declared bankrupted if he resorted to
fraudulent means in order to hide his
financial situation , like complement bill of
exchange or contracting loans with high
interest.
The court take in consideration the actual
date of discontinue of payment and not the
real date ( date of the collapse of the debtor
23
financial statues).
24. Elements of the discontinue payment -2
2- The financial turbulence of the debtor
status :
The discontinue of payment of the creditors
should be due to a real financial turbulence
which the debtor is passing and a real
crisis facing him
Financial turbulence should lead to the lost
of confidence between the debtor and his
creditors as well as weakling the credit.
Temporary financial turbulence won’t lead
to declaration of bankruptcy.
Financial turbulence is not related to asset/
debt equation.
24
25. 2- The financial turbulence of the debtor
status :
It is not necessary that the discontinue of
payment cover the whole debts. In other
terms, It could be partial.
A merchant could be declared bankrupted if
he stops the payment of only one creditor as
long as the non-payment reflects a serious
financial turbulence.
The detriment factor is the amount of the
unpaid debts and how it reflects the collapse
of the financial status of the debtor which
could threaten the rights of his creditors.
Financial turbulence covers only the
commercial acts performed by the merchant.
25
26. The proof of the discontinue of -3
payment
Burden of proof is upon the plaintiff
The plaintiff should proof the discontinue of
payment by all means of evidence.
The proof should cover the existence of a
debt and that such non-payment will lead to a
legal discontinue of payment due reflecting a
real financial turbulence.
It should be noted that the discontinue of
payment should continue until the date of the
declaration of the bankruptcy judgment.
26
27. The proof of the discontinue of payment -3
It should be noted that the plaintiff should proof
that his debtor enjoyed the status of merchant
when he stopped paying his debts.
A person who is dead or quite exercising
commerce could be declared bankrupted under 2
conditions :
A- he should die or quite at a moment where he
was in situation of discontinue of payment his
debts.
B - the bankruptcy claim should be filed within
one year from the date of death or abolishment of
the merchant name from the commercial registry.
27
28. conditions of the unpaid -4
debt
1. The debt should be an amount
of money
2. The debt should be immediately
due
3. The debt should be cleared from
claims
4. The debt should be commercial
28
29. 1- The debt should be an amount of
money
1. The unpaid debt should not be an
obligation to do or an obligation not to
do.
2. This could be justified by the fact the
bankruptcy is a system which tends to
the liquidation of the debtor assets and
fairly distributed among his creditors.
3. This is also following the objective of
protecting the credit and trust between
merchants.
29
30. 2- The debt should be immediately due
1. The unpaid debt should be immediately due
and not postponed.
2. The debt should be conditioned.
3. To know whether the debt is due or not, we
should look to the date of filing the
bankruptcy action.
4. According to article 554/2, a creditor with a
postponed debt could exceptionally request
the bankruptcy of his debtor if : his debtor
run away or didn’t have a known domicile in
Egypt or committed an act with the
intention to prejudice his creditors.
30
31. 3- The debt should be cleared from claims
1. A debtor can be declared bankrupted if his
debts was doubtful and not certain.
2. If there is a claim or a dispute related to the
debt, the bankruptcy action should be refused.
3. However, the claim should be serious. This is
appreciated by the court discretionary power.
4. The power of court in this regard is to examine
the seriousness of the debt without dealing
with the substantial defenses or merits.
5. Consequently, the court can not transfer the
action to investigate or examine a claim of
falsification.
31
32. The debt should be commercial -4
1. A merchant can not be declared bankrupted if
he stops paying his civil debts.
2. A merchant can not be also declared
bankrupted if he stops paying taxes or
criminal fines or social insurance.
3. The appreciation of the commercial character
of the debt is at the moment of discontinue of
payment and not when the debt has been
created.
4. According to article 554 : a civil creditor could
request the bankruptcy if he proofs that his
debtor stopped paying his commercial debts.
32
35. The debtor -1
The debtor is most people knowing his financial
status.
Presenting a bankruptcy declaration protects the
debtor from exposing himself to the criminal
sanction of stated in the case of bankruptcy by
negligence.
The court can confine the debtor if he presents a
request of bankruptcy within 15 days of his
discontinue of payment.
Regarding companies., the legal representative is
the one who is entitled to present such a request.
If the court refuses the debtor request, it can
order how to be a fine for superficially creating a
bankruptcy status. 35
36. One of the creditor -2
This is the most common way to request
bankruptcy.
This is allowed to all kind of debtor even those
with a civil debt.
A partner in a company could present a
bankruptcy request if he is a creditor of the
company.
The debtor could be declared bankrupted
although he has only one creditor.
Rules of bankruptcy are related to public order
and can not be contracted in any agreement.
Any agreement to avail a debtor from declaring
36
his bankruptcy is considered void.
37. The competent court -3
Before 2008, the subject matter jurisdiction of
the bankruptcy request was in the competence
of the primary court regardless the amount of
the dispute.
After the promulgation of the law no120 for the
year 2008, the competence is now transferred
to the economic courts.
Regarding the local jurisdiction, the
competent court should be the court of the
commercial domicile of the debtor or his
regular place of residence.
Regarding companies, the action must be filed
in the company head-office or the company
local-office if the head –office is abroad. 37
38. the authority of the court in -3
postponing the bankruptcy action
According to article 702, the court is entitled to
postpone the bankruptcy action, only for
companies and not individuals.
The postpose should be for a period of 3
months and should be done once.
This faculty is restricted on two conditions :
A- the potentiality of a support to the debtor
financial status.
B- The need to protect the interest of the
national economy.
38
40. Characteristics of the bankruptcy -5
judgment
The res judicata of the bankruptcy judgment
is absolute and not relative as ordinary
judgments :
A- regarding the persons : the debtor is
considered bankrupted in his relationship
with the all his creditor not only the one who
filed the bankruptcy claim.
B- regarding the assets : the judgment is not
only related to the debt subjected to the
claim but all the debtor money even though
those unrelated to commercial activities.
40
41. Characteristics of the bankruptcy -5
judgment
1. The double nature of the bankruptcy
judgment:
A- Declaring or Clearing judgment : as it
declares the status of discontinue of
payment as well as the invalidity of the
transactions committed by the debtor
during the suspect period.
B- Constitutive judgment : as one of its result
lead to the creation of the creditors
assembly – confining the debtor from the
management of his assets – stopping the
unilateral actions - 41
44. 1) Effects of bankruptcy judgment s to
the debtor assets before the
issuance of bankruptcy declaration
The suspect period
1. The meaning of the suspect period
2. The sanction ( the non-enforcement)
3. Types of non-enforcement
44
45. 1- The meaning of the suspect period
Performing certain transaction during the
suspect period is not void in itself.
On the other hand, there is a fear that certain
transaction could affect the creditor rights.
The suspect period starts from the date of
discontinue of payment till the date of the
issuance of the bankruptcy judgment.
The court has discretionary authority in
determining the date of the discontinue of
payment.
according to article 563 the suspect period can
not go retroactively to more than 2 years before
issuance of the bankruptcy judgment 45
47. Firstly : Mandatorynon-
enforcement
The court has no authority regarding the
mandatory non- enforcement. The action
should be initiated by the trustee
Conditions of mandatory non- enforcement :
The transition should be among those
enumerated in article 598.
The transaction should be performed during
the suspect period.
The transaction should be from the debtor
and concerning his assets.
47
48. The date of discontinue of payment
Absolute non-enforcement Relative non-enforcement
suspect period
The issuance of the bankruptcy judgement
48
49. Donations -1
All donations made by the debtor is not enforced
towards the creditors regardless its objective or
substance.
Donations for charity reasons are also not
enforced.
The court has discretion to qualify the transaction
regardless the parties agreement.
The dowry (wedding gift) is not considered
donations as contract of marriage is not donation
contract.
Life insurance policy for the debtor son or his wife
is not a donation contract however the premium
paid is considered indirect donation and should be
restituted.
Small gifts are excepted according to customs.49
50. 2- Settling debts before its maturity date
It should be noted that the main objective of
the bankruptcy system is to achieve equity
between all creditors.
This case could lead to a violation of the
equity between the creditors as it shows that
the debtor favored one of his creditor on the
others.
Creation a consideration for an undue
commercial paper (cheque –bill of exchange)
is considered as settlement before the
maturity date.
In the previous case the paper will remain
valid but the consideration will be part of the
debtor estate. 50
51. 3- Settling due dates with a thing other
than the agreed upon
The aim of such interdiction is the fear that
the debtor could fulfill his obligation with a
thing more valuable from the thing originally
agreed upon.
Interdiction in this case also aims to achieve
equity between all creditors and not to
disadvantage one of them.
Exception : commercial papers and banking
transfer are considered equivalent to money.
51
52. 4- issuance of securities or pawn after
the debt has been created
The assumption here is the debt was created
clear from any securities and then a pawn has
been created during the suspect period.
Interdiction in this case also aims to achieve
equity between all creditors and not to
disadvantage one of them.
Example : Mortgage – Pledge -
HYPOTHECATION.
Privileged rights are out of scope of this
interdiction.
52
53. 4- issuance of securities or pawn after
the debt has been created
HYPOTHECATION
An agreement whereby someone puts up
collateral to secure the debt of another. This
means that someone may agree that a piece
of real estate will be collateral for a debt. If the
debt isn't paid the creditor may have the
property seized to satisfy the debt, although
the person hypothecating the property is not
personally liable if the collateral doesn't pay
off the debt. Thus the property is liable for the
debt, not the person guaranteeing the debt.
53
54. OPTIONAL NON-ENFORCEMENT -2
This decision is in the discretion authority of the
court.
The optional non enforcement of all the transaction
performed by the debtor during the suspect period is
the rule and not the exception.
According to article 600 : the payment of commercial
papers is excluded from the scope of optional non-
enforcement.
The previous exception tends to balance between two
different interests : on the one hand, the creditor
union and on the other hand, the interests of those
using the commercial papers.
54
55. Conditions of OPTIONAL NON- -2
ENFORCEMENT
Firstly : The transaction should be preformed during
the suspect period.
Secondly : The transaction should prejudice the
interests of the creditors unions. This condition is left
to the appreciation of the court. The court should take
in consideration the interests of the entire creditor not
few of them.
Thirdly : The other contracting party should be aware
the debtor stopped paying his debts. The legislator
didn't require the knowledge of the financial
turbulence of the debtor.
The burden of proof of the previous conditions is on
charge of the trustee.
55
56. 2) Effects of bankruptcy judgment s to the
debtor assets after the issuance of bankruptcy
declaration
Binding the debtor hands from
managing and disposing his
assets = article 589.
56
57. Binding the debtor hands from managing
and disposing his assets = article 589.
Binding the debtor hands is a mean to
liquidate his assets collectively and distribute
it fairly between his creditors each according
to his proportion.
This effects is not considered as an
expropriation or sealing the debtors assets.
Banding the debtor hands doesn’t mean that
he lost his legal capacity.
Banding the debtor hands shall not prevent
him from taking the necessary measures
towards maintaining and preserving his rights.57