BBA Business Law Unit 1 Summary Notes.pdf

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BBA Sem 2 NEP
Business Law
Unit 1: Indian Contract Act 1872
Common Introduction for all Answers
The Indian Contract Act, 1872 was
introduced to ensure smooth business
transactions and maintain trust in trade
and commerce. In a growing economy like
India, agreements between individuals and
businesses needed a legal framework to
avoid disputes. This Act provides clear
rules on how contracts are formed, what
makes them valid, and how they can be
enforced. It was enacted on 1st September
1872 and applies across India, except in
certain regions. It defines a contract as an
agreement enforceable by law and sets
conditions for a valid contract, like offer,
acceptance, lawful consideration, capacity
of parties, and free consent. It helps in
resolving disputes, protecting rights, and
ensuring legal remedies in case of
breaches. The Act plays a crucial role in
maintaining fairness, transparency, and
accountability in business dealings.
Contract
A contract is a legally binding agreement
between two or more parties that creates
mutual obligations. It ensures that
promises made in business or personal
dealings are enforceable by law.
Definition (Section 2(h) of the Indian
Contract Act, 1872):
"A contract is an agreement enforceable by
law."
Nature of Contract
1. Agreement: A contract starts with an
offer by one party and acceptance by
another, leading to a mutual
understanding.
2. Enforceable by Law: The agreement
must fulfil legal conditions, making it
valid and binding in a court of law.
Kinds of Contracts
1. On the Basis of Enforceability:
o Valid Contract: Legally binding and
enforceable (e.g., employment
contract).
o Void Contract: Initially valid but later
unenforceable (e.g., contract for a
banned product).
o Void Agreement: Never legally
enforceable (e.g., betting
agreement).
o Voidable Contract: Legally valid but
can be canceled due to coercion,
fraud, etc. (e.g., forced contract).
o Illegal Contract: Involves illegal
activities, completely unenforceable
(e.g., smuggling contract).
o Unenforceable Contract: Valid but not
enforceable due to technical defects
(e.g., unstamped land sale).
2. On the Basis of Formation:
o Express Contract: Terms clearly stated
(e.g., written house sale agreement).
o Implied Contract: Formed by conduct
(e.g., taking a taxi and paying fare).
o Quasi-Contract: Imposed by law to
prevent unfair gain (e.g., mistaken bill
payment).
o E-Contract: Created through digital
means (e.g., software installation
agreement).
3. On the Basis of Performance:
o Executed Contract: Both parties have
fulfilled obligations (e.g., completed
house sale).
o Executory Contract: Obligations are
yet to be performed (e.g., job
contract before joining).
4. On the Basis of Obligation:
o Unilateral Contract: Only one party
makes a promise (e.g., reward for
finding a lost pet).
o Bilateral Contract: Both parties make
mutual promises (e.g., sales contract)
Essentials of a Valid Contract

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A valid contract must meet certain
essential conditions as per the Indian
Contract Act, 1872. If any of these
elements are missing, the contract may
become void or unenforceable. The key
essentials are:
1. Agreement (Offer & Acceptance): A
contract begins with an offer and its
unconditional acceptance. (e.g., Selling
a bike for ₹50,000 and accepting the
price).
2. Intention to Create Legal Relations:
There must be a legal obligation, not
just a social promise. (e.g., A father
promising money for good grades is
not a contract).
3. Lawful Consideration: Something of
value must be exchanged, and it must
be legal. (e.g., Paying for smuggling is
not valid).
4. Capacity of Parties: Parties must be
competent (i.e., not minors, mentally
unsound, or disqualified by law). (e.g.,
A minor buying on EMI is not
enforceable).
5. Free and Genuine Consent: Consent
must be free from coercion, fraud, or
misrepresentation. (e.g., Selling land
under threat makes the contract
voidable).
6. Lawful Object: The purpose of the
contract must not be illegal or
immoral. (e.g., A contract for sharing
gambling profits is void).
7. Writing & Registration: Some contracts
must be in writing and registered as
per law. (e.g., A land sale must be in
writing to be valid).
8. Certainty of Terms: The contract terms
must be clear and definite. (e.g., A
vague contract for "some quantity" of
goods is invalid).
9. Possibility of Performance: The
contract must be capable of execution.
(e.g., A contract to paint a house that
no longer exists is void).
10. Agreement Not Expressly Declared
Void: Certain agreements, like
wagering or trade-restricting
agreements, are void. (e.g., A contract
never to work for another company is
unenforceable).
Offer
An offer is a proposal made by one party
to another, indicating a willingness to
enter into a contract on certain terms.
When accepted, it becomes an agreement.
Definition:
According to Section 2(a) of the Indian
Contract Act, 1872, an offer is "when one
person signifies to another his willingness
to do or abstain from doing something,
with a view to obtaining the other’s assent
to such act or abstinence."
How an Offer is Made?
1. Express Offer: Made through words
(spoken or written) or conduct.
o Example (By Words): A offers to
sell his car to B for ₹2,00,000.
o Example (By Conduct): A
shopkeeper displays a product
with a price tag, indicating that
it is available for sale.
2. Implied Offer: Made through actions or
circumstances without explicitly stating
it.
o Example: A public transport
service runs buses on a fixed
route, offering a ride to anyone
willing to pay the fare.
Essential Elements of a Valid Offer
1. Creates Legal Relationship – The offer
must be made with an intention to
form a contract.
Example: A friend promising to call is
not a contract.
2. Clear and Definite – Terms must be
specific, not vague.
Example: "Selling 10 books for ₹500" is
valid, but "selling books for a fair price"
is not.
3. Express or Implied – An offer can be
stated clearly or understood through

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actions.
Example: Picking items at a store
implies an offer to buy at the listed
price.
4. Not an Invitation to Offer – An offer is a
firm proposal, unlike an invitation to
negotiate.
Example: A shop displaying "50% off" is
not an offer but an invitation.
5. Specific or General – It can be made to
a person or the public.
Example: A reward for finding a lost
pet is a general offer.
6. Must Be Communicated – The offeree
must know about the offer.
Example: An offer made in a hidden
letter is not valid unless read.
7. Seeks Acceptance – The offer should
aim at getting consent.
Example: Selling a car for ₹50,000
requires the buyer’s agreement.
8. Can Be Conditional – Some offers come
with conditions.
Example: "I will sell my bike only if you
pay ₹5,000 in advance."
9. No Automatic Acceptance – Silence or
inaction cannot mean acceptance.
Example: If A offers to sell his phone
and B stays silent, it is not acceptance.
Types of Offer:
1. General Offer – Made to the public;
anyone who meets the condition can
accept.
Example: A reward for returning lost
documents.
2. Special Offer – Made to a specific
person or group.
Example: Selling a laptop to a
particular customer.
3. Cross Offer – Two parties
unknowingly make identical offers to
each other. No contract forms.
Example: A offers to sell a bike to B
for ₹40,000, and B simultaneously
offers to buy it for ₹40,000.
4. Counter-Offer – The offeree modifies
the terms, rejecting the original offer.
Example: A offers to sell a house for
₹50 lakhs; B offers ₹45 lakhs instead.
5. Standing/Continuing Offer – Open for
a period, allowing multiple
acceptances.
Example: A supplier agrees to provide
raw materials for six months.
Lapse of Offer:
An offer does not stay open forever. It can
lapse due to:
1. Revocation – The offeror withdraws
before acceptance.
Example: A withdraws his house sale
offer before B accepts.
2. Rejection – If refused, the offer is no
longer valid.
Example: B rejects A’s car sale offer
and cannot accept it later.
3. Counter-Offer – Modifying an offer
cancels the original.
Example: B offers ₹45,000 instead of
₹50,000 for A’s bike.
4. Lapse of Time – Not accepted within a
deadline or reasonable time.
Example: A job offer expires after 10
days if not accepted.
5. Death or Insanity – If either party dies
or becomes insane before acceptance.
Example: A, a painter, dies before B
accepts his service offer.
6. Non-Fulfillment of Condition – If a
required condition isn’t met.
Example: A land sale offer lapses if the
buyer fails to pay the required
advance.
7. Supervening Impossibility – If
performance becomes illegal or
impossible.
Example: An offer to export goods
lapses if the government bans the
export.
Acceptance:
Acceptance is the agreement to the terms
of an offer, creating a legally binding
contract. It must be clear, unconditional,
and communicated to the offeror.
Definition: As per the Indian Contract Act,

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1872, "Every promise and every set of
promises forming the consideration for
each other is an agreement."
Who Can Accept an Offer?
1. Specific Offeree: Only the intended
recipient can accept a specific offer.
2. General Public: Anyone who fulfills
the conditions of a general offer can
accept it.
Essentials of Valid Acceptance:
1. Absolute and Unqualified: Acceptance
must match the offer’s terms without
changes.
2. Communicated to Offeror: Silence is
not acceptance; it must be expressed.
3. After the Offer: Acceptance must
follow a valid offer.
4. By the Intended Person: Only the
offeree can accept, unless authorized.
5. Prescribed Mode: If a method is
specified, it must be followed.
6. Within Time Limit: Must be accepted
within the given or reasonable time.
Revocation of Offer
Revocation of an offer means withdrawing
or canceling the offer before it is accepted.
Modes of Revocation
1. By Notice of Revocation – The offeror
informs the offeree about the
withdrawal before acceptance.
2. By Lapse of Time – If the offer is not
accepted within the given time or a
reasonable period, it expires.
3. By Non-Fulfillment of Condition
Precedent – If the offer requires a
condition to be met first and it isn’t
fulfilled, the offer is revoked.
4. By Death or Insanity – If the offeror or
offeree dies or becomes insane before
acceptance, the offer lapses.
5. By Counter-Offer – If the offeree
changes the terms of the offer, it acts
as a rejection of the original offer.
Consideration
Consideration is something of value
exchanged between parties in a contract,
such as money, goods, services, or a
promise, making the contract enforceable.
Essential Elements of Valid Consideration
1. At the Desire of the Promisor – The act
must be done at the promisor’s
request (e.g., A builds a house for B at
B’s request).
2. May Move from Promisee or Another
Person – Anyone can provide
consideration, not just the promisee
(e.g., A pays for B’s order, and B
delivers goods to C).
3. Can Be Past, Present, or Future –
Consideration can be given before,
during, or after the contract (e.g., a
reward for past services).
4. Must Be Something New – The
promisor should not already be legally
bound to do it (e.g., a police officer
cannot claim a reward for catching a
criminal).
5. Must Be Real, Not Illusory – It should
have actual value and not be
impossible or imaginary (e.g.,
promising to bring the moon is not
valid).
6. Must Not Be Illegal or Against Public
Policy – The consideration should not
involve unlawful activities (e.g., paying
someone to commit a crime is void).
Exceptions to "No Consideration, No
Contract"
1. Natural Love and Affection – A written,
registered agreement between close
relatives is valid even without
consideration.
2. Compensation for Past Voluntary
Services – A promise to reward
someone for past voluntary service is
enforceable.
3. Promise to Pay a Time-Barred Debt – A
written promise to repay an expired
debt is legally binding.
4. Contracts of Agency – An agent can act
on behalf of a principal without
separate consideration.

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5. Charitable Pledges and Gifts – A
donation promise becomes binding if
the recipient takes action based on it.
Situations When Consideration or Object is
Unlawful (Section 23)
1. Forbidden by Law – If an act is legally
banned, the contract is void (e.g.,
selling illegal drugs).
2. Defeats Legal Provisions – Any
agreement that tries to bypass the law
is unlawful (e.g., using fake documents
to avoid taxes).
3. Fraudulent – If the contract involves
fraud, it is void (e.g., selling a defective
product as new).
4. Causes Injury – A contract that harms a
person or property is illegal (e.g., hiring
someone to destroy another’s car).
5. Against Public Policy – If an agreement
promotes corruption or immoral acts,
it is void (e.g., paying for false
testimony in court).
Kinds of Consideration
1. Past Consideration – Something given
or done before the promise is made,
e.g., A helps B without expecting
anything, and later B promises to
reward A.
2. Present (Executed) Consideration –
Something given at the time of
agreement, e.g., A sells a phone to B,
and B pays immediately.
3. Future (Executory) Consideration – A
promise to do something in the future,
e.g., A agrees to supply goods to B next
month, and B agrees to pay later.
4. Unlawful Consideration – Consideration
involving illegal acts or those against
public policy, e.g., A contracts with B to
smuggle goods in exchange for money.
5. Unreal or Illusory Consideration –
Consideration that has no actual value
or is impossible to perform, e.g., A
promises B ₹10,000 if B touches the
sky.
Capacity of Parties to Contract
Capacity refers to the legal ability of a
person to enter into a valid contract. As per
Section 11 of the Indian Contract Act, a
person must be of sound mind, of the age
of majority, and not disqualified by law to
enter into a contract.
Persons Incapable of Contracting:
 Minors – Below 18 years; contracts are
void, e.g., a minor taking a loan isn’t
liable.
 Unsound Mind – Mentally incompetent
persons cannot contract, e.g., a person
with severe schizophrenia.
 Disqualified by Law – Convicts, war
aliens, insolvents cannot contract, e.g.,
a bankrupt person selling property.
Rules for a Minor’s Agreement
A minor (below 18 years, or 21 if under
guardianship) cannot enter into a valid
contract under the Indian Majority Act,
1875.
1. Void Agreement – A minor’s contract is
void ab initio and has no legal effect,
e.g., a 16-year-old selling a bicycle.
2. Minor as Beneficiary – A minor can
receive benefits but cannot be held
liable, e.g., receiving gifted land.
3. No Ratification on Majority (Sec 68) – A
minor cannot confirm a void contract
after turning 18, e.g., repaying a past
loan isn’t enforceable unless a new
contract is made.
4. Cannot Be a Shareholder – A minor
cannot buy shares directly, but a
guardian can do so on their behalf.
5. Parents/Guardians Not Liable – They
aren’t responsible unless they
personally guarantee the contract, e.g.,
a minor’s unauthorized loan isn’t their
parent’s liability.
Persons of Unsound Mind (Section 12)
A person must be of sound mind while
making a contract. Those incapable of
understanding the nature and
consequences of a contract are considered

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unsound under Section 12 of the Indian
Contract Act, 1872.
1. Idiocy – A person born with permanent
mental incapacity cannot form valid
contracts.
2. Lunacy or Insanity – A person with
temporary or periodic insanity can only
contract during lucid intervals
(mentally stable periods).
3. Drunkenness – A person intoxicated to
the extent that they cannot understand
the contract is considered unsound.
4. Hypnotism – A person under hypnotic
influence loses control over their
actions, making contracts voidable.
5. Mental Decay – Old age or illness
causing a person to lose mental
stability disqualifies them from
contracting.
Persons Disqualified by Law
Certain persons are legally restricted from
entering into contracts.
1. Alien Enemies – Citizens of enemy
countries cannot contract during war.
2. Foreign Sovereigns & Ambassadors –
They have immunity but can contract if
they waive their privilege.
3. Convicts – A person convicted of a
serious crime loses the right to
contract while serving a sentence.
4. Insolvent Persons – Once declared
insolvent, a person cannot contract
until discharged by the court.
Free Consent (Section 14)
A contract is valid only if both parties agree
voluntarily. Consent is free when it is not
caused by coercion, undue influence,
fraud, misrepresentation, or mistake.
Factors Affecting Free Consent
1. Coercion (Section 15) – Forcing
someone to enter a contract using
threats, force, or unlawful acts. E.g.,
Threatening to harm someone if they
don’t sign a contract.
2. Undue Influence (Section 16) – When
one party exploits their position of
power over another to gain an unfair
advantage. E.g., A doctor pressuring a
patient to transfer property.
3. Fraud (Section 17) – Deliberate false
statements or concealment of facts to
deceive another party. E.g., Selling a
defective phone while claiming it is
brand new.
4. Misrepresentation (Section 18) – False
statements made without intent to
deceive, leading the other party to
enter the contract. E.g., A seller
unknowingly giving incorrect
information about a car’s mileage.
Mistake (Sections 20-22) – An error
regarding facts or law that affects the
contract’s validity. E.g., A contract signed
under the wrong assumption about the
identity of a product.
Mistake in a Contract (Sections 20-22)
A mistake happens when one or both
parties misunderstand something
important about the contract. This can
make the contract void or valid depending
on the type of mistake.
Types of Mistakes
1. Mistake of Law – When a person
misunderstands the law.
a) Indian Law – Not an excuse; the
contract stays valid. (E.g., A agrees to
pay extra tax due to misunderstanding
the law; they cannot cancel the
contract.)
b) Foreign Law – Treated like a mistake
of fact, and the contract may be void.
(E.g., A signs a contract in India
thinking US law allows it, but it
doesn’t.)
2. Mistake of Fact – Misunderstanding
about facts related to the contract.
a) Bilateral Mistake – Both parties are
wrong about an important fact; the
contract is void. (E.g., A and B agree to
sell a horse, but the horse was already
dead.)
b) Unilateral Mistake – Only one party

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is wrong; the contract is usually valid
unless caused by fraud or
misrepresentation. (E.g., A mistakenly
bids higher in an auction; they cannot
cancel unless tricked.)
Unlawful Consideration & Object (Section
23, Indian Contract Act, 1872)
Consideration is the value exchanged in a
contract, while the object is its purpose. A
contract is void if its consideration or
object is unlawful, meaning:
1. Forbidden by Law – If the agreement
involves an act prohibited by law (e.g.,
selling illegal drugs).
2. Defeats Legal Provisions – If it aims to
evade laws (e.g., avoiding taxes
through fake documents).
3. Fraudulent – If made with intent to
deceive (e.g., selling a defective
product as new).
4. Causes Injury – If it harms a person,
property, or reputation (e.g., hiring
someone to damage a car).
5. Against Public Policy – If it harms
society, promotes corruption, or is
immoral (e.g., paying for false
testimony).
Void Agreements (Section 2(g), Indian
Contract Act, 1872)
A void agreement is one that has no legal
effect and cannot be enforced by law. It
does not create any rights or obligations.
E.g., a minor selling property is void.
Agreements Expressly Declared as Void
1. Unlawful Consideration or Object
(Section 23) – If an agreement involves
illegal acts, fraud, or harm, it is void.
E.g., a contract for smuggling goods.
2. Agreement by a Minor (Section 11) – A
minor cannot enter a valid contract.
E.g., a 16-year-old selling a bike.
3. Agreement Without Consideration
(Section 25) – A contract without
consideration is void, except for love,
past services, or time-barred debt. E.g.,
promising ₹10,000 without reason.
4. Agreement Restraining Marriage
(Section 26) – Any contract restricting
marriage is void. E.g., agreeing not to
marry for money.
5. Agreement Restraining Trade (Section
27) – Contracts that limit a person’s
right to conduct business are void,
except in cases of goodwill sales or
partnership restrictions. E.g., forcing
someone not to start a business for
money.
6. Agreement Restraining Legal
Proceedings (Section 28) – A contract
preventing a person from seeking legal
remedies is void. E.g., agreeing not to
sue each other.
7. Agreement With Uncertain Terms
(Section 29) – If an agreement is too
vague or unclear, it is void. E.g.,
agreeing to sell "some quantity" of rice
without specifying the amount.
8. Agreement Based on Wagering (Section
30) – Betting agreements are void as
they depend on uncertain events. E.g.,
wagering ₹5,000 on a cricket match
outcome.
Performance of a Contract
A contract must be performed by the
responsible party, but in some cases,
another person may fulfill the obligation
under specific conditions. Sections 37 to
67 of the Indian Contract Act, 1872,
govern contract performance.
Who May Perform a Contract?
1. By the Promisor Himself – If personal
skill or expertise is required, only the
promisor can perform.
E.g., A famous singer must perform
personally.
2. By the Promisor’s Agent – If no
personal skill is needed, an agent can
perform.
E.g., A can appoint an agent to deliver
goods.
3. By Legal Representatives – If the
promisor dies, their heirs must
complete the contract unless personal

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expertise is required.
E.g., Selling land after the owner’s
death.
4. By a Third Party – If the promisee
accepts performance from a third
party, it is valid.
E.g., C repays A’s debt to B with B’s
consent.
Types of Performance of Contracts
1. Actual Performance – The promisor
fulfills their obligation, discharging the
contract.
E.g., A delivers a car to B as per
contract.
2. Attempted Performance (Tender of
Performance) – The promisor offers
performance, but the promisee
refuses. The promisor is then
discharged.
E.g., A delivers goods to B, but B
refuses to accept them.
Discharge of a Contract
A contract is said to be discharged when
the obligations under it come to an end,
and the parties are no longer bound by its
terms. The various ways in which a
contract can be discharged are as follows:
1. Discharge by Performance
A contract is discharged when both parties
fulfill their obligations as agreed.
Performance can be:
 Actual Performance: Both parties
complete their duties, and the contract
is discharged.
o Example: A sells a car to B for
₹5,00,000, and both fulfill their
obligations.
 Attempted Performance (Tender of
Performance): One party offers to
perform, but the other refuses. In such
cases, the promisor is discharged from
liability.
o Example: A delivers goods to B, but B
refuses to accept them without reason.
A is no longer liable.
2. Discharge by Agreement
Parties may mutually agree to terminate
the contract before performance. This can
happen through:
 Novation: Substituting a new contract
for the old one.
 Alteration: Making changes in contract
terms with mutual consent.
 Rescission: Canceling the contract with
mutual consent.
 Waiver: Giving up rights under the
contract.
o Example: A and B agree to cancel their
agreement for the sale of goods. The
contract is discharged by mutual
agreement.
3. Discharge by Impossibility (Section 56,
Indian Contract Act, 1872)
If a contract becomes impossible to
perform due to unforeseen circumstances,
it is discharged.
 Initial Impossibility: If the contract was
impossible from the start, it is void.
o Example: A contracts to sell a non-
existent property to B.
 Subsequent Impossibility: If
performance becomes impossible later
due to events like natural disasters,
legal changes, etc.
o Example: A contracts to build a house,
but an earthquake destroys the land.
4. Discharge by Lapse of Time
 If a contract is not performed within
the prescribed time, it may become
unenforceable under the Limitation
Act, 1963.
 The aggrieved party loses the right to
sue after the time limit expires.
o Example: A loan repayment contract
requires payment within three years. If
unpaid beyond the limitation period, it
becomes unenforceable.
5. Discharge by Breach of Contract
A contract is discharged if one party fails to
perform their obligations.
 Actual Breach: Failure to perform at
the agreed time.

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 Anticipatory Breach: A party refuses to
perform before the due date.
o Example: A agrees to deliver goods to B
but refuses before the delivery date.
The contract is discharged by
anticipatory breach.
6. Discharge by Operation of Law
A contract may be discharged due to legal
reasons, such as:
 Death of a party (if the contract
involves personal skills).
 Insolvency (if a party is declared
bankrupt).
 Merger (when a contract merges into a
higher obligation).
o Example: A singer agrees to perform at
an event but passes away before the
date. The contract is discharged by
operation of law.
Breach of Contract and Remedies
A breach of contract occurs when one
party fails to fulfill their obligations. It can
be an actual breach, where a party does
not perform on the due date, or an
anticipatory breach, where a party declares
in advance that they will not fulfill the
contract.
To address a breach, the law provides
several remedies:
1. Suit for Damages – The affected party
can claim monetary compensation for
losses.
2. Suit for Specific Performance – The
court may order the breaching party to
fulfill the contract, especially for
unique goods or property.
3. Suit for Injunction – The court may
prevent a party from performing an act
that breaches the contract.
4. Suit for Quantum Meruit – If a contract
is partially performed and then
stopped, the performing party can
claim payment for the work done.
5. Suit for Rescission – The contract can
be canceled if the breach is serious,
relieving both parties from further
obligations.
DIFFERENCE BETWEEN
Agreement and Contract
Agreement Contract
A mutual
understanding
between two or
more parties.
A legally
enforceable
agreement
between parties.
Can be oral or
written.
Must fulfill legal
requirements to
be valid.
Not always legally
binding.
Always legally
binding if it meets
legal conditions.
No legal obligation
to fulfill promises.
Legal obligation to
fulfill terms.
Can be informal. Requires formal
legal structure.
No need for
consideration
(exchange of
value).
Consideration is
essential.
Cannot always be
enforced in court.
Enforceable in
court.
Based on trust and
mutual consent.
Based on law and
enforceable
rights.
Example: A friend
promising to lend a
book.
Example: A signed
employment
contract.
Does not create
legal remedies if
breached.
Legal remedies
available if
breached.

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Coercion and Undue Influence
Coercion Undue Influence
Forcing someone to enter a contract using
threats or physical harm.
Influencing someone unfairly using a position
of power or trust.
Involves physical or psychological
pressure.
Involves mental or moral pressure.
Includes threats of harm, imprisonment,
or property damage.
Arises in relationships where one party
dominates the other.
Consent is obtained through fear. Consent is obtained through manipulation.
Direct and immediate pressure is applied. Indirect and subtle pressure is applied.
Can be done by anyone. Usually occurs in relationships of trust (e.g.,
guardian-ward, doctor-patient).
Defined under Section 15 of the Indian
Contract Act.
Defined under Section 16 of the Indian
Contract Act.
Contract is voidable by the affected party. Contract is voidable by the weaker party.
Example: Threatening to kill someone if
they don’t sign a contract.
Example: A guardian forcing a minor to
transfer property.
Involves criminal actions and
punishments.
Not always criminal but still unethical.
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BBA Business Law Unit 1 Summary Notes.pdf

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BBA Business Law Unit 1 Summary Notes.pdf