This material is for PGPSE / CSE students of AFTERSCHOOOL. PGPSE / CSE are free online programme - open for all - free for all - to promote entrepreneurship and social entrepreneurship PGPSE is for those who want to transform the world. It is different from MBA, BBA, CFA, CA,CS,ICWA and other traditional programmes. It is based on self certification and based on self learning and guidance by mentors. It is for those who want to be entrepreneurs and social changers. Let us work together. Our basic idea is that KNOWLEDGE IS FREE & AND SHARE IT WITH THE WORLD
This document provides an introduction and overview of business law for entrepreneurs in India. It discusses how the Indian legal system and taxation system are complex and divert creativity and talent. The author wishes these systems could be simplified to help ordinary entrepreneurs understand them without expert help. Download links are provided for basic business law preparation materials, including the Indian Contract Act, Sale of Goods Act, Negotiable Instruments Act, and Company Law. Sample questions are included to test understanding of business law concepts.
The document discusses the capacity of minors to contract under Indian law. It summarizes that minors, persons of unsound mind, and those disqualified by law are not competent to enter valid contracts. While a minor's agreements are voidable, the 1903 Privy Council case of Mohoribibi v Dharmodas Ghose established they are not absolutely void. Later cases further modified this stance, finding that agreements made by guardians on a minor's behalf or for their benefit can be binding. The document outlines exceptions where minors may be bound, such as beneficial contracts, as well as the inability of minors to ratify agreements made during their minority through subsequent confirmation.
The document discusses the capacity to contract under family law and the rules regarding minors entering into contracts. It is divided into three categories:
1) Enforceable contracts - Contracts for necessaries that provide something suitable for the minor's station in life are binding. Contracts of beneficial service or apprenticeship are also generally enforceable if predominantly beneficial.
2) Voidable contracts - Contracts involving ongoing or long-term obligations can be entered by a minor but avoided if repudiated before maturity. Examples include leases or share purchases.
3) Unenforceable contracts - Trading contracts are never binding on a minor. Loans can also not be enforced through normal contractual remedies but restitution
This document provides an overview of key concepts in Nepalese contract law. It defines a contract as a binding agreement that creates rights and obligations for both parties. It outlines essential elements for a valid contract such as offer and acceptance, lawful object, consideration, and free consent. It discusses different types of contracts such as void, voidable, and contingent contracts. It also explains important contract formation concepts like offer, acceptance, consideration, and termination of a contract. In summary, the document covers the meaning, elements, types, and formation process of contracts according to Nepalese law.
Contracts are legally binding agreements between two or more competent parties that usually involve employment, sale or lease of property, or tenancy. The key elements of a valid contract are offer, acceptance, consideration, intention to create legal relations, capacity to contract, certainty of terms, and free consent. Minors and mentally impaired individuals generally lack the capacity to enter into contracts. For a contract to be enforceable, it requires an offer, acceptance of that offer, and consideration or valuable benefit exchanged between the parties.
This document defines consideration and outlines its essential rules and types under contract law. It states that consideration is something of value that each party provides to make a contract enforceable. The rules are that consideration must move at the desire of the promisor, can come from the promisor or third party, and can be past, present or future. There are also exceptions to the general rule that an agreement without consideration is void, such as agreements on account of natural love/affection or to compensate for past voluntary services. The types of consideration are past (valid in India but not England), present, and future consideration.
The document discusses the Indian Contract Act of 1872 and provides context around contract law in India. It defines a contract as an agreement that is enforceable by law. It outlines the essential elements for a valid contract, including offer and acceptance, lawful consideration, capacity and consent of parties. It also classifies contracts based on validity, subject matter, performance, and whether they are express, implied, quasi or unilateral.
This document provides an introduction and overview of business law for entrepreneurs in India. It discusses how the Indian legal system and taxation system are complex and divert creativity and talent. The author wishes these systems could be simplified to help ordinary entrepreneurs understand them without expert help. Download links are provided for basic business law preparation materials, including the Indian Contract Act, Sale of Goods Act, Negotiable Instruments Act, and Company Law. Sample questions are included to test understanding of business law concepts.
The document discusses the capacity of minors to contract under Indian law. It summarizes that minors, persons of unsound mind, and those disqualified by law are not competent to enter valid contracts. While a minor's agreements are voidable, the 1903 Privy Council case of Mohoribibi v Dharmodas Ghose established they are not absolutely void. Later cases further modified this stance, finding that agreements made by guardians on a minor's behalf or for their benefit can be binding. The document outlines exceptions where minors may be bound, such as beneficial contracts, as well as the inability of minors to ratify agreements made during their minority through subsequent confirmation.
The document discusses the capacity to contract under family law and the rules regarding minors entering into contracts. It is divided into three categories:
1) Enforceable contracts - Contracts for necessaries that provide something suitable for the minor's station in life are binding. Contracts of beneficial service or apprenticeship are also generally enforceable if predominantly beneficial.
2) Voidable contracts - Contracts involving ongoing or long-term obligations can be entered by a minor but avoided if repudiated before maturity. Examples include leases or share purchases.
3) Unenforceable contracts - Trading contracts are never binding on a minor. Loans can also not be enforced through normal contractual remedies but restitution
This document provides an overview of key concepts in Nepalese contract law. It defines a contract as a binding agreement that creates rights and obligations for both parties. It outlines essential elements for a valid contract such as offer and acceptance, lawful object, consideration, and free consent. It discusses different types of contracts such as void, voidable, and contingent contracts. It also explains important contract formation concepts like offer, acceptance, consideration, and termination of a contract. In summary, the document covers the meaning, elements, types, and formation process of contracts according to Nepalese law.
Contracts are legally binding agreements between two or more competent parties that usually involve employment, sale or lease of property, or tenancy. The key elements of a valid contract are offer, acceptance, consideration, intention to create legal relations, capacity to contract, certainty of terms, and free consent. Minors and mentally impaired individuals generally lack the capacity to enter into contracts. For a contract to be enforceable, it requires an offer, acceptance of that offer, and consideration or valuable benefit exchanged between the parties.
This document defines consideration and outlines its essential rules and types under contract law. It states that consideration is something of value that each party provides to make a contract enforceable. The rules are that consideration must move at the desire of the promisor, can come from the promisor or third party, and can be past, present or future. There are also exceptions to the general rule that an agreement without consideration is void, such as agreements on account of natural love/affection or to compensate for past voluntary services. The types of consideration are past (valid in India but not England), present, and future consideration.
The document discusses the Indian Contract Act of 1872 and provides context around contract law in India. It defines a contract as an agreement that is enforceable by law. It outlines the essential elements for a valid contract, including offer and acceptance, lawful consideration, capacity and consent of parties. It also classifies contracts based on validity, subject matter, performance, and whether they are express, implied, quasi or unilateral.
This document summarizes key aspects of the Consumer Protection Act for entrepreneurs in India. It discusses the bodies established under the act at district, state and national levels. It outlines the complaint process, powers of consumer courts, and issues around contracts involving minors. Key points of contract law around offer, acceptance, consideration and competence are also briefly explained.
This document discusses key aspects of contract law in Malaysia based on the Contracts Act 1950. It defines a contract and outlines the essential elements that must be present for an agreement to be considered a valid and enforceable contract, including offer and acceptance, consideration, intention to create legal relations, capacity of parties, consent, legality, and certainty. It also examines topics like formation of contracts, discharge of contractual obligations, and exceptions.
This document contains 22 multiple choice questions about key concepts from the Partnership Act 1932 in India. Some of the topics covered include: when a partner is entitled to return of premium paid upon dissolution of a partnership [Q1]; types of partners not liable for the firm [Q2]; whether an unregistered firm can sue to enforce partnership rights [Q3]; effects of registration [Q4]; rights of partners in an unregistered firm [Q5]; evidence of registration [Q6]; circumstances where compulsory dissolution does not occur [Q7]; requirements for partnership deeds [Q8]; accounting rules for partner insolvency [Q9]; authority of partners [Q10]; requirements for regular expulsion of a partner [
1. The document contains 36 multiple choice questions about key concepts from the Indian Contract Act of 1872.
2. The questions cover topics like voidable contracts, contingent contracts, consideration, breach of contract, capacity of parties and discharge of contracts.
3. Correct answers are provided for each question to test the reader's understanding of important principles from contract law in India.
The document discusses the essential elements of a valid contract and the characteristics of negotiable instruments under Indian law. It provides definitions for key terms like negotiable instrument, holder in due course, and different types of cheque crossings as defined in the Negotiable Instruments Act of 1881. The summary highlights that a valid contract requires offer and acceptance, lawful consideration, capacity and consent of parties, a lawful object, and certainty. It also outlines privileges of a holder in due course, including acquiring good title to a negotiable instrument despite any defects in the transferor's title.
This document provides notes on contract law in India. It defines a contract and classifies contracts according to validity, formation, and performance. It discusses voidable, void, illegal, and unenforceable contracts. Contracts are also classified as express, implied, quasi, and e-commerce. Executed, executory, unilateral, and bilateral contracts are defined. The essential elements of a valid contract are also outlined, including offer and acceptance, lawful consideration, capacity and consent of parties, lawful object, and certainty. Key rules regarding offers and acceptances are explained.
The document discusses the essentials of a contract under Indian law. It defines a contract and explains that a valid contract requires agreement and consideration between two parties. It classifies contracts into different types such as express and implied, executed and executory, unilateral and bilateral, and valid, void, voidable and illegal based on how they are formed and executed. Key points covered include definitions of contract, elements of a valid contract, and classifications of contracts according to formation, execution and enforceability.
This document discusses the concept of consideration in contract law. It defines consideration as "something in return" that has value in the eyes of the law. Consideration is essential to forming a valid, enforceable contract. There are several key elements for consideration: it must move from the promisee or another person at the request of the promisor; it can be past, present or future; it does not need to be adequate but must be real and lawful. Exceptions to the requirement of consideration include gifts, charity contributions, and contracts supported by natural love and affection if certain conditions are met.
This document discusses several topics related to contracts, including third-party contracts. It defines key terms like obligor, obligee, assignment, and delegation. It outlines which contractual rights and duties can and cannot be assigned or delegated to third parties. The document also discusses third-party beneficiary contracts, distinguishing between intended beneficiaries like creditor and donee beneficiaries who can enforce a contract, versus incidental beneficiaries who cannot.
The document discusses the Indian Contract Act 1872's provisions on novation and Section 62 regarding discharge of original contracts. It provides explanations and examples of different types of novation:
1) Change in terms of the original contract where the parties remain the same but new altered terms substitute the old contract.
2) Complete substitution of parties where a new party takes responsibility of an obligation in place of the original party, with consent of all parties.
It also discusses provisions of Section 63 allowing a promisee to dispense with performance, accept alternate satisfaction, or extend time for performance without consideration. Key requirements and case laws are presented.
Powerpoint from textbook Business Law - the ethical, global, and e-commerce environment to accompany BA 330 course at the University of Alaska Fairbanks.
The document discusses various topics related to law and contracts. It begins by defining law and noting that law establishes a system of rules to govern behavior. It then discusses commercial law, which governs business transactions. It also examines the institutions that enforce law, such as the legislature, executive, and judiciary. The document goes on to explore where laws come from, including that statutes are made by legislatures and common law originates from customs and practices. It also outlines different legal systems like civil law, common law, and Sharia law. The majority of the document then focuses on defining and discussing the essential elements of contracts, including proposal/offer, acceptance, consideration, and consent. It examines the types of contracts and what
The document summarizes a court case regarding the dissolution of a partnership between Ehsan Ali and Abbas Mirza. It states that disputes had arisen between the partners regarding the cotton business they ran together. Ehsan Ali, the plaintiff, alleges that Abbas Mirza, the defendant, pledged partnership assets without permission and failed to properly maintain accounts. Ehsan Ali requests that the court dissolve the partnership, appoint a receiver, order an accounting, and pass a final decree with costs in his favor.
A quasi-contract is an obligation imposed by law that requires one party to compensate another party. It arises in situations where there is no valid contract but where justice demands compensation be provided. Key features of a quasi-contract include that it is not based on a formal agreement and can only be enforced against specific individuals involved in the situation, not the world at large. Common examples include a plumber mistakenly installing a sprinkler system and then being required to be paid, or goods being left at someone's house by mistake and the person keeping the goods for their own use. The goal of a quasi-contract is to prevent unjust enrichment at another's expense.
Sample on Contract: Contract is a legal agreement between two or more competent parties to do or not to do a particular thing. It creates contractual obligations for parties to perform. Tort law is a part of law which is established for act of negligence (Clarkson and et.al., 2010).
According to Indian contract law, a person must be of the age of majority, of sound mind, and not otherwise legally disqualified to have the capacity to enter into a valid and enforceable contract. A minor, defined as a person under 18 years of age, lacks such capacity and any agreements entered into by a minor are void ab initio. However, a minor can be held liable to pay for necessities provided to them, such as food, clothing, shelter, and services related to education or healthcare. A person of unsound mind, including idiots, lunatics, or those intoxicated, also lacks the capacity to contract if unable to understand the nature and effect of the agreement.
This document provides an overview of Business Law as covered in the Paper 2.4 course for the BBA (II Year) program at Algappa University. It includes summaries of key topics like the Indian Contract Act 1872, special contracts, sale of goods, negotiable instruments, partnership, arbitration, common carriers, and contracts of insurance. The course will cover 10 lessons taught by Dr. S. Sudalaimuthu and will reference textbooks on elements of mercantile law, commercial law, and relevant Indian acts.
The document discusses various concepts related to contracts under the Indian Contract Act such as sale of goods, conditions vs warranties, void and voidable contracts, consideration, competency to contract, consent, and remedies for breach of contract. It provides examples to explain different types of contracts such as bailment, agency, and guarantees. It also discusses capacity of minors and other parties to enter into contracts.
The document provides information about AFTERSCHO☺OL's PGPSE program for social entrepreneurship. The 18-month program is offered both online and in-person, and focuses on developing social entrepreneurs through case studies, industry visits, workshops, and flexible specializations. The program aims to promote entrepreneurship and social development. It is free of cost and open to all, with scholarships available for those with financial needs.
To introduce the importance of legal and regulatory issues to entrepreneurs
To consider the regulatory environments of the Asia–Pacific within which a new venture must exist
To examine intellectual property protection, including copyright, patents, trademarks and domain names
To recognise the important international protection regimes for intellectual property
To critically examine the IP practices of Asia–Pacific countries
To compare the common legal forms of business organisation in the Asia–Pacific, such as sole proprietorship, partnership and corporation
To be aware of the signals that foreshadow insolvency and bankruptcy
To examine the trend for environmental regulations that will affect business entrepreneurship
This chapter has a broad remit in considering the four types of legal and regulatory challenges that entrepreneurs will face in the Asia–Pacific region. We begin with a look at the various regulatory regimes that make up ease of doing business, from starting a company to closing it down. We then examine one of the most critical aspects for entrepreneurs: how to protect your intellectual property. Equally important is to then consider under what legal form to incorporate the firm. Finally, we look at regulations concerning climate change and global warming, regulations that are becoming increasingly troublesome for entrepreneurs. In typical legalistic style, we do need to note that the Asia–Pacific region includes many different countries and the scope of this text is limited to general knowledge. For specific information on legal matters particular to a country and your venture always seek the advice of appropriately qualified professional persons knowledgeable about the jurisdiction of your operations.
This material is for PGPSE / CSE students of AFTERSCHOOOL. PGPSE / CSE are free online programme - open for all - free for all - to promote entrepreneurship and social entrepreneurship PGPSE is for those who want to transform the world. It is different from MBA, BBA, CFA, CA,CS,ICWA and other traditional programmes. It is based on self certification and based on self learning and guidance by mentors. It is for those who want to be entrepreneurs and social changers. Let us work together. Our basic idea is that KNOWLEDGE IS FREE & AND SHARE IT WITH THE WORLD
This document provides an overview of key concepts in Indian intellectual property law for entrepreneurs, including patents, trademarks, designs, copyright, and geographical indications. It defines these terms and outlines the application processes, eligibility criteria, fees, timelines, and enforcement mechanisms for each type of IP. Key points covered include what can be patented/trademarked, how to file applications, opposition processes, international treaties, and duration of protection. The document aims to simplify IP law concepts for easier understanding and implementation.
This document summarizes key aspects of the Consumer Protection Act for entrepreneurs in India. It discusses the bodies established under the act at district, state and national levels. It outlines the complaint process, powers of consumer courts, and issues around contracts involving minors. Key points of contract law around offer, acceptance, consideration and competence are also briefly explained.
This document discusses key aspects of contract law in Malaysia based on the Contracts Act 1950. It defines a contract and outlines the essential elements that must be present for an agreement to be considered a valid and enforceable contract, including offer and acceptance, consideration, intention to create legal relations, capacity of parties, consent, legality, and certainty. It also examines topics like formation of contracts, discharge of contractual obligations, and exceptions.
This document contains 22 multiple choice questions about key concepts from the Partnership Act 1932 in India. Some of the topics covered include: when a partner is entitled to return of premium paid upon dissolution of a partnership [Q1]; types of partners not liable for the firm [Q2]; whether an unregistered firm can sue to enforce partnership rights [Q3]; effects of registration [Q4]; rights of partners in an unregistered firm [Q5]; evidence of registration [Q6]; circumstances where compulsory dissolution does not occur [Q7]; requirements for partnership deeds [Q8]; accounting rules for partner insolvency [Q9]; authority of partners [Q10]; requirements for regular expulsion of a partner [
1. The document contains 36 multiple choice questions about key concepts from the Indian Contract Act of 1872.
2. The questions cover topics like voidable contracts, contingent contracts, consideration, breach of contract, capacity of parties and discharge of contracts.
3. Correct answers are provided for each question to test the reader's understanding of important principles from contract law in India.
The document discusses the essential elements of a valid contract and the characteristics of negotiable instruments under Indian law. It provides definitions for key terms like negotiable instrument, holder in due course, and different types of cheque crossings as defined in the Negotiable Instruments Act of 1881. The summary highlights that a valid contract requires offer and acceptance, lawful consideration, capacity and consent of parties, a lawful object, and certainty. It also outlines privileges of a holder in due course, including acquiring good title to a negotiable instrument despite any defects in the transferor's title.
This document provides notes on contract law in India. It defines a contract and classifies contracts according to validity, formation, and performance. It discusses voidable, void, illegal, and unenforceable contracts. Contracts are also classified as express, implied, quasi, and e-commerce. Executed, executory, unilateral, and bilateral contracts are defined. The essential elements of a valid contract are also outlined, including offer and acceptance, lawful consideration, capacity and consent of parties, lawful object, and certainty. Key rules regarding offers and acceptances are explained.
The document discusses the essentials of a contract under Indian law. It defines a contract and explains that a valid contract requires agreement and consideration between two parties. It classifies contracts into different types such as express and implied, executed and executory, unilateral and bilateral, and valid, void, voidable and illegal based on how they are formed and executed. Key points covered include definitions of contract, elements of a valid contract, and classifications of contracts according to formation, execution and enforceability.
This document discusses the concept of consideration in contract law. It defines consideration as "something in return" that has value in the eyes of the law. Consideration is essential to forming a valid, enforceable contract. There are several key elements for consideration: it must move from the promisee or another person at the request of the promisor; it can be past, present or future; it does not need to be adequate but must be real and lawful. Exceptions to the requirement of consideration include gifts, charity contributions, and contracts supported by natural love and affection if certain conditions are met.
This document discusses several topics related to contracts, including third-party contracts. It defines key terms like obligor, obligee, assignment, and delegation. It outlines which contractual rights and duties can and cannot be assigned or delegated to third parties. The document also discusses third-party beneficiary contracts, distinguishing between intended beneficiaries like creditor and donee beneficiaries who can enforce a contract, versus incidental beneficiaries who cannot.
The document discusses the Indian Contract Act 1872's provisions on novation and Section 62 regarding discharge of original contracts. It provides explanations and examples of different types of novation:
1) Change in terms of the original contract where the parties remain the same but new altered terms substitute the old contract.
2) Complete substitution of parties where a new party takes responsibility of an obligation in place of the original party, with consent of all parties.
It also discusses provisions of Section 63 allowing a promisee to dispense with performance, accept alternate satisfaction, or extend time for performance without consideration. Key requirements and case laws are presented.
Powerpoint from textbook Business Law - the ethical, global, and e-commerce environment to accompany BA 330 course at the University of Alaska Fairbanks.
The document discusses various topics related to law and contracts. It begins by defining law and noting that law establishes a system of rules to govern behavior. It then discusses commercial law, which governs business transactions. It also examines the institutions that enforce law, such as the legislature, executive, and judiciary. The document goes on to explore where laws come from, including that statutes are made by legislatures and common law originates from customs and practices. It also outlines different legal systems like civil law, common law, and Sharia law. The majority of the document then focuses on defining and discussing the essential elements of contracts, including proposal/offer, acceptance, consideration, and consent. It examines the types of contracts and what
The document summarizes a court case regarding the dissolution of a partnership between Ehsan Ali and Abbas Mirza. It states that disputes had arisen between the partners regarding the cotton business they ran together. Ehsan Ali, the plaintiff, alleges that Abbas Mirza, the defendant, pledged partnership assets without permission and failed to properly maintain accounts. Ehsan Ali requests that the court dissolve the partnership, appoint a receiver, order an accounting, and pass a final decree with costs in his favor.
A quasi-contract is an obligation imposed by law that requires one party to compensate another party. It arises in situations where there is no valid contract but where justice demands compensation be provided. Key features of a quasi-contract include that it is not based on a formal agreement and can only be enforced against specific individuals involved in the situation, not the world at large. Common examples include a plumber mistakenly installing a sprinkler system and then being required to be paid, or goods being left at someone's house by mistake and the person keeping the goods for their own use. The goal of a quasi-contract is to prevent unjust enrichment at another's expense.
Sample on Contract: Contract is a legal agreement between two or more competent parties to do or not to do a particular thing. It creates contractual obligations for parties to perform. Tort law is a part of law which is established for act of negligence (Clarkson and et.al., 2010).
According to Indian contract law, a person must be of the age of majority, of sound mind, and not otherwise legally disqualified to have the capacity to enter into a valid and enforceable contract. A minor, defined as a person under 18 years of age, lacks such capacity and any agreements entered into by a minor are void ab initio. However, a minor can be held liable to pay for necessities provided to them, such as food, clothing, shelter, and services related to education or healthcare. A person of unsound mind, including idiots, lunatics, or those intoxicated, also lacks the capacity to contract if unable to understand the nature and effect of the agreement.
This document provides an overview of Business Law as covered in the Paper 2.4 course for the BBA (II Year) program at Algappa University. It includes summaries of key topics like the Indian Contract Act 1872, special contracts, sale of goods, negotiable instruments, partnership, arbitration, common carriers, and contracts of insurance. The course will cover 10 lessons taught by Dr. S. Sudalaimuthu and will reference textbooks on elements of mercantile law, commercial law, and relevant Indian acts.
The document discusses various concepts related to contracts under the Indian Contract Act such as sale of goods, conditions vs warranties, void and voidable contracts, consideration, competency to contract, consent, and remedies for breach of contract. It provides examples to explain different types of contracts such as bailment, agency, and guarantees. It also discusses capacity of minors and other parties to enter into contracts.
The document provides information about AFTERSCHO☺OL's PGPSE program for social entrepreneurship. The 18-month program is offered both online and in-person, and focuses on developing social entrepreneurs through case studies, industry visits, workshops, and flexible specializations. The program aims to promote entrepreneurship and social development. It is free of cost and open to all, with scholarships available for those with financial needs.
To introduce the importance of legal and regulatory issues to entrepreneurs
To consider the regulatory environments of the Asia–Pacific within which a new venture must exist
To examine intellectual property protection, including copyright, patents, trademarks and domain names
To recognise the important international protection regimes for intellectual property
To critically examine the IP practices of Asia–Pacific countries
To compare the common legal forms of business organisation in the Asia–Pacific, such as sole proprietorship, partnership and corporation
To be aware of the signals that foreshadow insolvency and bankruptcy
To examine the trend for environmental regulations that will affect business entrepreneurship
This chapter has a broad remit in considering the four types of legal and regulatory challenges that entrepreneurs will face in the Asia–Pacific region. We begin with a look at the various regulatory regimes that make up ease of doing business, from starting a company to closing it down. We then examine one of the most critical aspects for entrepreneurs: how to protect your intellectual property. Equally important is to then consider under what legal form to incorporate the firm. Finally, we look at regulations concerning climate change and global warming, regulations that are becoming increasingly troublesome for entrepreneurs. In typical legalistic style, we do need to note that the Asia–Pacific region includes many different countries and the scope of this text is limited to general knowledge. For specific information on legal matters particular to a country and your venture always seek the advice of appropriately qualified professional persons knowledgeable about the jurisdiction of your operations.
This material is for PGPSE / CSE students of AFTERSCHOOOL. PGPSE / CSE are free online programme - open for all - free for all - to promote entrepreneurship and social entrepreneurship PGPSE is for those who want to transform the world. It is different from MBA, BBA, CFA, CA,CS,ICWA and other traditional programmes. It is based on self certification and based on self learning and guidance by mentors. It is for those who want to be entrepreneurs and social changers. Let us work together. Our basic idea is that KNOWLEDGE IS FREE & AND SHARE IT WITH THE WORLD
This document provides an overview of key concepts in Indian intellectual property law for entrepreneurs, including patents, trademarks, designs, copyright, and geographical indications. It defines these terms and outlines the application processes, eligibility criteria, fees, timelines, and enforcement mechanisms for each type of IP. Key points covered include what can be patented/trademarked, how to file applications, opposition processes, international treaties, and duration of protection. The document aims to simplify IP law concepts for easier understanding and implementation.
Choosing the appropriate legal structure is a crucial decision for any startup.What are the basic forms of doing business and their relative benefits? Essential procedures and prerequisites of each form of business.
Contractual safeguards: How do we limit contractual liability? Relevant stakeholders (promoters/co-founders; employees; consultants; clients and vendors) and the respective contract liability mitigating strategies.
Data Protection: How do we protect the competitive value of data in our business? Data protection is distinct from IPRs, and therefore, we must understand the legal framework of protecting data and the relevant international trends in this regard.
The document discusses various taxation issues related to entrepreneurs in India such as taxation of salary, perquisites, capital vs revenue receipts, date and place of receipt of income, and income deemed to arise in India. It provides answers to several questions on these topics with explanations.
The document provides an overview of the Indian legal system for entrepreneurs, covering topics such as the types of presumptions in law, evidence in legal cases, arbitration and conciliation processes, injunctions, contracts, property law concepts, criminal law procedures, and registration requirements. It defines key legal terms and concepts and compares different legal classifications and processes.
The document discusses key aspects of the Indian Partnership Act for entrepreneurs, including definitions of partnership, requirements for partnership agreements and registration, rights and duties of partners, dissolution of partnerships and firms, and related topics. It provides answers to frequently asked questions about partnerships under Indian law to simplify an otherwise complex topic for ordinary entrepreneurs.
Overview and importance of accounting, legal and tax aspects for startups - S...SS Industries
- The document discusses key regulatory, legal, tax and accounting considerations for startups in India, including the Startup India Action Plan.
- It covers topics like the definition of a startup, choice of entity structure, headquarters location, overseas investments, and recent developments in the startup ecosystem in India.
- Recent updates include over 500 applications received for startup benefits, 12 approved so far based on the April 1, 2016 incorporation date cutoff, and initiatives like a Rs. 2,000 crore fund of funds for startups managed by SIDBI.
Legal issues are important for entrepreneurs to consider when starting a business. Key issues include intellectual property like patents, trademarks, and copyrights. Patents protect inventions and have different types governed by the Patents Act of 1970. The patent process involves filing an application, examination, possible opposition from others, and ultimately the grant or sealing of a patent. Infringement of patents occurs when an invention is used without a license and can result in injunction or penalties. Other legal matters entrepreneurs should be aware of include business methods, trademarks, copyrights, trade secrets, licensing, product safety and liability, insurance, and contracts. While not needing expertise in all areas of law, entrepreneurs benefit from a basic understanding of relevant legal issues and consulting with
The document discusses several important laws and regulations relating to businesses and industries in India. It notes that legal aspects are an indispensable part of business and reflect the governmental framework of a country. The most important law is the Companies Act of 1956, which regulates the formation, financing, and functioning of companies. Other major laws discussed include those relating to industries, contracts, trade unions, intellectual property rights, foreign exchange, and labor. Compliance with these laws is necessary for efficient operation of organizations in India.
entrepreneurship and small business management unit iiiPENDYSINGH
This document outlines the contents of four units related to entrepreneurship and small business management. Unit III discusses small-scale enterprises and the formalities for launching an enterprise. It defines small-scale industries and outlines the registration process, which requires obtaining necessary permits from pollution control boards. It also discusses preparing a project report, which is important for understanding project viability, and using project planning techniques like PERT and CPM.
The document provides an overview of the Indian legal system, including its history and sources of law. Some key points:
- Indian law is largely based on English common law and retains many Acts introduced during British rule.
- The primary sources of law are enactments passed by Parliament and state legislatures. Secondary sources include Supreme Court and High Court judgments.
- The Indian Constitution establishes a democratic republic and guarantees fundamental rights and duties. It contains 395 articles and is the world's longest written constitution.
- The legal system includes criminal and civil codes. It has a three-tiered structure of Supreme Court, High Courts, and subordinate courts. Recent trends focus on alternative dispute resolution and improving judicial efficiency.
Environment Of Entrepreneurship Developmentk.shofiq
The document summarizes the business environment for entrepreneurship development in Bangladesh. It identifies several factors that make up the economic, political, legal, socio-cultural, technological, and natural environments. These include the availability of capital, labor, raw materials, technology, and markets. It also discusses how the environment influences entrepreneurship and economic growth. Government policies and stability are important for promoting entrepreneurship in the country.
This powerpoint presentation defines entrepreneurship and discusses its history and modern applications. It begins by defining an entrepreneur as someone who organizes and manages a business while taking on financial risk. It notes that agricultural students have been involved in entrepreneurship since the early 20th century through programs like raising livestock and growing crops. Today, agricultural entrepreneurship can involve many diverse activities beyond farming like custom harvesting or operating a small engine repair service. The presentation concludes by discussing characteristics of successful entrepreneurs and different types like social and lifestyle entrepreneurs.
This document provides an introduction and overview of business law for entrepreneurs in India. It discusses how the Indian legal system and taxation system are complex and divert creativity and talent. The author wishes these systems could be simplified to help ordinary entrepreneurs understand them without expert help. Download links are provided for basic business law preparation materials, including the Indian Contract Act, Sale of Goods Act, Negotiable Instruments Act, and Company Law. Sample questions are included to test understanding of business law concepts.
A L L A B O U T S H A R E S & H O W T O I S S U E A N D B U Y B A C K...Dr. Trilok Kumar Jain
This document provides an introduction and overview of business law for entrepreneurs in India. It discusses how the Indian legal system and taxation system are complex and divert creativity and talent. The author wishes these systems could be simplified to help ordinary entrepreneurs understand them without expert help. Download links are provided for basic business law preparation materials, including the Indian Contract Act, Sale of Goods Act, Negotiable Instruments Act, and Company Law. Sample questions are included to test understanding of business law concepts.
This document discusses partnerships under Indian law. It defines a partnership as an agreement between two or more persons to share profits from a business carried on by them. Key characteristics of a partnership include a business purpose, profit sharing, and mutual agency between partners. The document contrasts partnerships with co-ownership arrangements and joint Hindu family businesses. It also covers registration of partnerships, types of partners, and a minor's position as a partner.
This document provides an overview of contract law in India, including the essential elements of a valid contract, types of contracts, and agency law. It discusses the key requirements for a valid contract such as offer and acceptance, lawful object and consideration, capacity to contract, and free consent. It also defines contracts of indemnity and guarantee, contingent contracts, quasi contracts, discharge of a contract, and breach of contract. Finally, it addresses agency relationships, noting an agent must act within the scope of authority conferred by the principal.
Contents are listed in the 1st page
P/S : Hi, I am sharing my personal notes of law-related subjects. Some parts of them are explained in a very informal-relaxed way and mix of languages (BM and English). Secondly, as law revolves every day, there will be outdated parts in my notes. Two ways of handling it.. (1) double check with the latest law and keep it to yourself (2) same with No. 1 coupled with your generosity to share with us, the LinkedIn users (hiks ^_^). Till then, have a nice day!
Company Law and Partnership - Partners and Outsiders (Notes)surrenderyourthrone
This document discusses the liability of partners and partnerships under Malaysian partnership law. It covers several key topics:
1) The authority of partners to bind the firm through actual, usual or apparent authority based on their actions and representations. A partner's actions will bind the firm if they are within the scope of the partnership business, carrying on business in the usual way, or done in their capacity as a partner.
2) The liability of the firm for the actions of partners, including torts, equitable wrongs, and criminal acts committed in the ordinary course of business. The firm is also liable if a partner misapplies money or property received by or in the custody of the firm.
3) Partners have
The document discusses various aspects of contract law in India including what constitutes a valid contract, void contract, and voidable contract. It provides examples and definitions for each contract type. It also discusses topics like burden of proof, unenforceable contracts, and securitization of infrastructure assets. Securitization involves pooling contractual debt obligations and selling them as securities. This allows originators to offload assets and access alternative financing while investors get matched risk-return investments. Infrastructure asset securitization could help Indian banks meet capital requirements and improve project financing.
This document provides an overview of key concepts in business law in India including definitions of law, the need for business laws, sources of business law, the Indian Contract Act of 1872, essential elements of a valid contract, and classifications of contracts. It defines law, discusses the objectives of business law and contract law, and provides examples to illustrate concepts like void, voidable, and valid contracts.
After midsem-slides-1224252673846877-9 niravniravjingar
This document provides an overview of key concepts in business law in India including definitions of law, the need for business laws, sources of business law, the Indian Contract Act of 1872, essential elements of a valid contract, and classifications of contracts. It defines law, discusses the objectives of business law and contract law, and outlines essential elements for a valid contract such as offer and acceptance, lawful consideration, capacity and consent of parties. It also classifies contracts based on validity, formation, and performance.
Assignment #12 -hajer al rubaiai ( business) (1)projectname
This document provides an overview of business contracts and torts under Omani law. It analyzes two legal cases. The first case involves a singer, Mr. Badar, who failed to attend required rehearsals for a musical performance due to illness. The event organizer, Mr. Yosuf, terminated their contract. Analyzing Omani contract law, the termination was likely valid as Mr. Badar broke a key term of the agreement. The second case involves a construction dispute that raises issues of negligence and liability. The document provides advice to each party based on the relevant Omani laws.
This document discusses the key elements of a valid contract under Indian law. It defines a contract and outlines the essential elements, including offer and acceptance, consideration, capacity of parties, free consent, and lawful object. It also classifies different types of contracts such as valid/invalid, express/implied, executed/executory, unilateral/bilateral contracts. The document provides examples and explanations of concepts like offer, acceptance, consideration and rules regarding their validity. Overall, it serves as a comprehensive overview of the fundamentals of contract law in India.
This document discusses breach of contract under Indian law. It defines different types of breaches, including minor, material, actual, and anticipatory breaches. Remedies for breach are also outlined, such as rescission of contract, suing for damages or specific performance, and quantum merit. The document then introduces quasi contracts, which are implied promises treated like contracts when basic elements like offer/acceptance are missing. Circumstances giving rise to quasi contracts involve necessaries supplied to incapable persons, payments by interested persons, benefits received from non-gratuitous acts, finder of goods responsibilities, and money received by mistake or coercion.
There are three main types of contracts discussed in the document:
1. Contract of indemnity - This is a contract between two parties where one party promises to compensate the other for any losses.
2. Contract of guarantee - This involves three parties, where a surety guarantees to a creditor that a principal debtor will fulfill their obligations.
3. Pledge - This is a type of bailment contract where goods are delivered as security for a debt, with the pawnee retaining the goods until payment is made.
The document discusses the key elements of a valid contract according to commercial law. It defines a contract as an agreement that is enforceable by law, requiring offer and acceptance, consideration, lawful object and intent to create legal relations. It provides exceptions to the consideration requirement, such as agreements on account of natural love/affection. The document also discusses concepts like capacity of parties, free consent, certainty and legality that make an agreement legally enforceable. It classifies contracts based on method of formation, time of performance, parties involved and validity.
The document discusses various concepts related to contracts including the definition of a contract, essential elements of a valid contract, classification of contracts, joint ventures, and complex contract terminology. It provides details on the Indian Contract Act of 1872, general principles of contracts in India, tendering processes, and requests for proposals. Key points covered include the history and objectives of the Contract Act, types of contracts based on validity and performance, advantages of joint ventures, and considerations for negotiating complex contracts.
This document provides an overview of Indian contract law under the Indian Contract Act of 1872. It defines key terms like what constitutes a contract, agreement, and consideration. The essential elements of a valid contract are also outlined, including offer and acceptance, intention to create a legal relationship, lawful consideration, capacity of parties, free consent, lawful object, certainty of meaning, possibility of performance, and compliance with required legal formalities. Contracts are also classified based on their validity, formation, performance obligations, and other attributes as defined by the Act.
The document discusses the definition and essential elements of a valid contract according to Indian law. It defines a contract as an agreement that is enforceable by law. The key elements discussed include offer and acceptance, lawful consideration, intention to create legal relations, capacity of parties, lawful object, certainty of terms, and consent free from misrepresentation. It provides examples to illustrate these elements and explains exceptions where agreements may not amount to legally binding contracts, such as social agreements between family members.
Consideration is a vital element of contract law. It refers to something of value that is exchanged between parties, such as goods, services, or promises. Consideration must motivate the parties to enter into the contract. It can be in the form of an act, abstinence from an act, or a return promise. Consideration ensures parties fulfill their contractual promises. While consideration is generally required for a valid contract, there are some exceptions such as natural love and affection between relatives, compensation for voluntary past services, and promise to repay a time-barred debt. The consideration must also be legal and not against public policy.
Business law deals with the formation and management of businesses, commercial transactions, and protects the rights of shareholders, directors, employees, and consumers. It includes issues related to real estate, taxation, and the environment. Business law encompasses many aspects such as contracts, insurance, corporate regulations, employment, manufacturing, and consumer goods. It is important for business owners and managers to understand business law to operate legally and avoid issues stemming from ignorance of the law. Minors generally do not have the legal capacity to enter into contracts as they are not considered competent to make binding agreements.
Similar to Essential business law for entrepreneurs (20)
Examination reforms are essential to transform the education system according to the document. The current examination system focuses only on rote memorization but needs to evaluate creativity and problem-solving. The document outlines steps to reform examinations including setting goals based on program and course objectives, evaluating whether objectives are achieved through direct and indirect methods, using continuous evaluations, and adopting open book exams and multiple evaluation methods.
1. ESSENTIAL BUSINESS LAW FOR ENTREPRENEURS by : DR. T.K. JAIN AFTERSCHO ☺ OL centre for social entrepreneurship sivakamu veterinary hospital road bikaner 334001 rajasthan, india FOR – PGPSE PARTICIPANTS mobile : 91+9414430763
2. My words.... Ours is a great country with immense entrepreneurial potential. However, our legal system and taxation system is so cumbersome that our creativity and talent is wasted / unnecessarily diverted in these sectors. I wish that these are simplified so that an ordinary entrepreneur can understand these without help from any expert. I wish that more people should become entrepreneurs, rather than becoming an expert in avoiding taxation. Let us wish that some likeminded person is able to reach policy making level and is able to change these. I have tried to simplify Indian legal system and taxation system for Indian entrepreneurs – but it is so complicated that even if you simplify it, it will remain complicated. An ordinary Indian entrepreneur wishes to remain an honest entrepreneur and contribute to the development of nation, but our systems and processes force him to adopt unfair means ...
3. How does Indian Partnership Act 1932 defines partnership? According to Section 4 “Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all”.
4. A and B buy 100 bales of cotton agreeing to divide these between them. Are They partners No it doesnt fulfill essential conditions of partnership
5. A and B buy 100 bales of cotton, which they agree to sell for their joint account, each party sharing profits and bearing losses equally. Are they partners ? Yes they are partners
6. “ A” a trader, owed money to XY&Z. He agreed to pay XY&Z out of the profits of his business (run under the supervision of X, Y and Z). Are they partners ? No XYZ are not partners of A
7. Is mutual agency necessary for partnership ? Yes Mutual agency is the foundation of partner’s liability. Each partner is both an agent and principal for himself and others;
8. Is it necessary to have an agreement between partners ? Yes there must be an agreement between the partners of a partnership firm.
9. Can there be partnership just for a particular event ? Yes “ A person may become a partner with another person in a particular adventure or undertaking”. - Sec. 8 of India partnership act
10. How can partnership at will be dissolved ? “ Where the partnership is at will, the firm may be dissolved by any partner giving notice in writing to all the other partners of his intention to dissolve the firm. (sec. 7 )
11. Who is a sub-partner ? Where a partner agrees to share his profits in the firm with a third person, that third person is called a sub-partner. Such a sub-partner has no rights or duties towards the firm and does not carry any liability for the debts of the firm. Also he cannot bind the firm or other partners by his acts.
12. What is partnership by holding out ? If the behaviour of a person creates misunderstanding that he is a partner in a firm (when actually he is not), such a person is estopped from later on denying the liabilities for the acts of the firm. Such person is called partner by estoppel and is liable to all third parties. It is also called partnership by estoppel
13. What are the cases where partnership by holding out does not apply ? 1. for cases relating to tort 2. for the case where the person holding out is a minor 3. partnership by holding out does not extend to estate of a deceased person
14. What are the rights of a minor in a partnership ? He is entitled to his agreed share and can inspect books of account of the firm [Section 30(2)]. He can bring a suit for account and his share when he intends to sever his connections with the firm, but not otherwise. [Section 30(4)] when he becomes a major (18 years of age), he will become a normal partner after 6 months (unless he gives a notice and elects out of the partnership).
15. What are the rights of a partner ? 1. he can take part in business 2 right of free access to all records, books and accounts of the business and also to examine and copy them. [Section 12(d)] 3 right of free access to all records, books and accounts of the business and also to examine and copy them. [Section 12(d)]
19. Which of these is/are contracts ? When you invite B to your home for dinner and B accepts your invitation. = NO When you board a public bus. = yes When you call a taxi on the telephone = yes. When you put a one rupee coin in the slot of a weighing machine. = no When you eat a meal at a restaurant. = yes
20. Situation of a minor A, a minor, enters, into the following contracts. Is he and the other party bound by any of them? A contracts to marry B, aged 19 years. A boards a bus. = yes A lends Rs. 500 to B, aged 25 years. = yes A becomes an apprentice in an industrial concern. = yes A buys a TV set on credit.= no
21. SOLUTON Minor can make other person binding on his interest – but no person can make minor responsible for something. In the case the minor picks up a bus or gives loan, the minor can make other person to fulfill the commitment. But minor cannot be forced.
22. Distinguish between innocent misrepresentation and fraud and mistake. In case of mistake the contract is Void. In the case of misrepresentation, and fraud, the contract is voidable. Misrepresentation is covered in sec. 18, fraud in sec. 17, mistake in sec. 21 and 22. Damages can be claimed in fraud. Fraud has following components : false representation of facts so that the other person acts upon it.
23. A procured B a second wife on B’s promise to pay him Rs. 500. can the contract be enforced No – as it is not a legal contract
24. Enumerate the different modes of discharge of a contract. Lapse of time refusal to perform by both the parties by operation of law (when it becomes impossible) ' performance breach of contract mutual consent
25. Liquidated and unliquidated damages; -- - differentiate these When the amount of damages can be ascertained in advance, the parties may fix this amount in advance and therefore it is called liquidated damage. But when the amount of damage cannot be ascertained in advance, it is called unliquidated damage. Liquidated damanges are decided in advance.
26. Indemnity and Guarantee; Differentiate them There are two parties in idemnity, but 3 parties in guarantee. In indemnity, there is a promise to indemnify in case of loss by a person. Let us X and Y make a contract, X makes a mistake and he indemnifies to Y as per contract. This is indemnity. But instead of X, if Z indemnifies, it is guarantee by third party.
27. How will you enforce these contracts : B has promised to pay A Rs. 1,000 for his horse which had died before the contract - it is a void contract – as it is a mistake relating to fact of contract. (sec. 21,22) B, a minor, promised to pay A Rs. 10,000 for his car. = (contract with minor is void as it cannot be enforced against minor).
28. Reciprocal promises. - are they contracts No – they are not contracts Suppose Goti promises to give Pankaj rs 500 for his bike and Pankaj also promises to sell his bike to Goti for Rs. 500, still it is not a contract, it is only reciprocal promise.
29. Surety enjoys a right of subrogation. Do you agree Surety has the right to collect damages from the party in default. Suborgation means the surety gets the right to claims, once it has performed its role. For example, A and B has made a contract and C is surety for B. Due to a mistake by D, B fails to perform his part. C pays the damages (being surety). Now C can sue D for damages and collect the money to recover the damages paid. If C receives excess amount, it will go to B.
30. Failure to sue the principal debtor within time, discharges the surety. - do you agree Yes – law of limitation applies here. Suppose A promised to pay Rs 100 to B and C is surety for A. B didnt ask A to pay and now the amount is time barred. Thus C is free from his liability.
31. Money deposited in fixed deposit with a bank is bailment. - do you agree No – bailment is used with regards to goods or things which are delivered by one person to another for a specific purpose. It is defined as : Bailment is a voluntary delivery of goods for a temporary purpose on the understanding that they are to be returned in specie in the same or altered form. The ownership of the goods remains with the bailor,
32. What is gratuitous bailment? It is not for charge. Suppose I put my Car with Ravi for 2 days – and Ravi provides this facility to me not for charge – it is gratuitous bailment. Similarly : where you lend your book to a friend of yours for a week. (not for charge).
33. What is meant by ratification? It means approval. When a party approves the act of another party, it is ratification Ratification is not possible for ultra vires acts. Ratification is required when a person does something, which he / she was not allowed to do. For example A sells B's bike to C. now B has to ratify it then only this contract can be enforceable.
34. Distinguish between particular lien and general lien? General lien is towards all the property, but particular lien is towards only a specific property. Suppose Sachin buys a charter plane on credit with specific lien, then the creditor can only sell the plane if Sachin doesnt pay his liability. However, if it is general lien, the creditor can recover from any property of sachin.
35. A on board an English ship on the high seas, causes B to enter into an agreement by an act amounting to criminal intimidation under the Indian Penal Code. A afterwards sues B for breach of contract at Calcutta. Has A employed any coercion? Yes
36. A agrees to buy from B a certain horse. It turns out that the horse was dead at the time of the bargain, though neither party was aware of the fact. Is the agreement valid? The agreement is VOID – as it is a contract based on mistake of fact. (sec. 21,22)
37. X having advanced money to his son Y, during the minority, upon Y’s becoming major obtains by misuse of parental influence a bond from Y for a greater amount than the sum due in respect of the advances. Has X employed undue influence? Yes
38. A sells by auction, to B a horse which A knows to be unsound. A says nothing to B about the horses unsoundness. Is A guilty of fraud. No – it is the duty of B to inquire about the horse..
39. A and B are traders and enter into some contract. A has private information of a change in price which would effect B’s willingness to proceed with the contract. Is A bound to inform B. No
40. A intending to deceive B falsely represents that five hundred paunds of indigo are made annually at A’s factory and thereby induces B to buy the factory. What is the remedy available to B. It is a contract based on fraud. So B can sue A for damages and rescind the contract. (sec. 17)
41. A’s son has forged B’s name to a promissory note. B, under threat of prosecuting A’s son obtains a bond from A for the amount of the forged note. Can B sue on this bond. No – as it is also based on coersion (Sec. 15) A's son has committed a crime. Reply to a crime should not be a crime.
42. “ Mere silence may amount to fraud”. COMMENT This is applicable in the case of contract of uberrmae fedei . Uberrmae Fedei means contract of utmost faith. Following are contracts of uberrmae fedei : 1. prospectus by company, 2. sale of land 3. family arrangement 4. insurance contracts. Thus in these cases mere silence may amount to fraud. In other cases, mere silence is not a fraud.
43. “ The legal effect of a contract is confined to the contracting parties”. Comment The legal effect of contract is binding on both the parties to the contract, but sometimes, it may be related to third parties also. Quasi contracts are such examples where a party which has not signed the contract is also bound by the contract. Quasi contract is an obligation created by law (not by agreement). For example finder of lost goods has the responsibility to return the goods.
44. “ The essence of every agreement is that there ought be free consent on both the sides”. As per section 10 free consent is essential for a contract. Further, consent based on coercion, misrepresentation (sec. 8) , fraud (sec. 17) ,are not allowed. All these contracs will be voidable. Contracts based on mistakes (sec. 20,21) will be void
45. X entrusts Y with a negotiable instrument endorsed in blank. Y makes over the instrument to C in violation of the private orders of X. Is it a valid act? Yes – it is a negotiable instrument, and a holder in due course gets good right to the instrument and also the rifht to endorse it to others.
46. A enters into a contract with B to sell him 100 bales of cotton and afterwards discovers that B was acting as agent for C. Whom can A sue? A can sue either of B or C.
47. A employs B to beat C and agrees to indemnify him against all consequences. B beats C and had to pay damages to C. Is A bound to indemnify B? No – it is an illegal contract and has no validity
48. X directs Y his agent to buy a certain house for him. Y tells X that it cannot be bought but buys the house himself later. Can X on discovering this compel Y to sell it to him? Yes – as Y was working as the agent of X and has misused his position.
49. A has authority from his principal B to sell goods on credit. A sells goods on credit to C without making the proper and usual enquiries as to C’s solvency. C at the time of such sale was insolvent. Should A compensate B? Yes as per sec. 212, agent is bound to act diligently
50. A authorises B to let A’s house. Afterwards A lets it himself. Is the authority of B revoked? Yes – here the principal has revoked the authority of B (sec. 207)
51. X gives authority to Y to sell X’s land, to pay himself out of the proceeds the debts due to him. Can X revoke this authority? No – as X has liability to Y and the authority is given in relation to that liability : Sec. 202 (it is not simple agency, but it is agency with interest)
52. A holds a lease from B terminable on 3 months notice. C an unauthorised person gives notice of termination to A. Can the notice be ratified by B? Here lease is given by B so notice should also be given by B. Therefore the answer is NO (sec. 200)
53. A without authority buys goods for B. Afterwards B sell them to C on his own account. Does he ratify the act of A? Yes now B has ratified the act of A. Sec. 197 .
54. A has an agent at Calcutta namely B to whom he sends certain goods with directions to send them immediately to Lucknow. But B finds that the goods may not stand the journey to Lucknow and sells them at Calcutta itself. Is he justified in doing so? Yes in order to protect the interest of principal, the agent can take such measures. Sec. 189 : an agent may do all things which may be necessary to protect the principal
55. A delivers his two wrist watches for repair to B. B keeps both the watches duly repaired. A is prepared to take back one of the watches on payment of the charge for repairing it but B refuses ans wants to deliver both the watches. Is B justified?
56. Solution No B is not justified B has lien on the other watch, and can keep it till he receives the payment sec. : 170 : particularlien
57. A leaves a cow in the custody of B to be taken care of. The cow begets a calf. Is B bound to redeliver the calf also. Yes – B has to deliver calf also. Sec. : 163 : it is a case of bailment
58. A lends his car to B on the express understanding that only B should drive it. But B’s son drives the car. In spite of all his diligence the car meets with an accident and is severely damaged? Is B liable for damage? Yes
59. A lends a cycle which he knows is defective to B. B is injured while driving. Is A liable for injuries sustained? Yes A should have told B about it earlier Sec. 150 :
60. A, B and C as sureties for D enter into several bonds each in a different penalty namely, A in the penalty of Rs. 10,000, B in that of Rs. 20,000 and C in that of Rs. 40,000 conditioned for D’s duty accounting to E. D makes a default to the extent of Rs. 30,000. How much A, B and C are liable to pay?
62. X guarantees to Z payment for iron to be supplied by him to Y to the extent of 20,000 tonnes. Y and Z have privately agreed that Y should pay five rupees per ton beyond the market price, such excess to be applied in liquidation of old debt. This agreement is concealed from X. Is X liable. No - the surety is not responsible if there is a private secret agreement (sec. 143)
63. A owes money to B which has been guaranteed by C. The debt becomes due, but B does not sue A for a year thereafter. Is C discharged from liability? No : the surety is not discharged unless there is some agreement to the contrary Sec. 137
64. A agrees to appoint B as salesman in his office at a monthly salary of Rs. 300 upon C becoming a surety for B’s duty accounting of the monies received by him. Afterwards without C’s knowledge or consent, A agreed to pay B commission on the collections instead of monthly salary. Is C liable for any subsequent misconduct of B? No (sec. 133, the terms cant be changed without the consent of surety)
65. A guarantees to B to the extent of Rs. 1,000 that C shall pay all the bills that B shall draw upon him. B draws upon C. C accepts the bill. A gives a notice of revocation. Is A liable if C dishonours the bill at maturity?
66. Solution Yes – sec. 130 revocation was done after the deal. `this revocation will apply on future transactions only
67. A guarantees to B the payment of a bill of exchange by C, the acceptor. The bill is dishonoured by C. Is A liable for the interest on the amount of the bill due.
68. Solution Sec. 128 : the liability of surety is equal to that of principal debtor, so the surety is liable for interest also
69. What is the difference between a bailment and pledge? Bailment (sec. 148), here goods / any assets are transferred for some purpose. It may be against payment / without payment. Pledge ( Sec. 172 ) : here goods / articles are given by the debtor as security for performance of loan taken by the debtor. This is kept by the creditor / lender till the repayment of loan. It is also called pawn.
70. What are the various bodies in contracts of pledge, bills and bailment In pledge the parties are : Pawner : the person who gives the article. Pawnee – the person who keeps the security in bailment : bailor and bailee just like pawner and pawnee. In bills we have : 1. drawer, drawee, and holder. Drawer prepares bill and gives to holder to collect payment on due date from drawee.
71. Pawan delivered some jewellery to Amir for his approval. Amir pledged the same with Pankaj, Pawan wants to get back the jewellary from Pankaj. Would he succeed? The jewellery was given by Amir to Pankaj, so only Amir can collect it back from Pankaj. Since the jewellery was given by Amir to Pankaj, it is assumed that Amir has accepted the jewellery and thus there is a sale between Pawan and Amir, thus Pawan should collect payment from Amir. So answer : NO
72. A contracts to sell and deliver 25,000 tonnes of certain raw material to B on a fixed day. A knows nothing of B’s mode of conducting his business. A breaks his promise and B having no raw material is obliged to close his factory. Is B entitled to recover the loss caused by such closure?
73. Solution .. No – the buyer should have clarified the terms and made a provision for such compensation (sec. 73)
74. A contracts to buy B’s scooter for Rs. 7,800, but breaks his promise. B could obtain another scooter immediately after the breach for Rs. 8,500. Can B recover the excess of Rs. 700.
76. X and Y jointly owe Rs. 1,000 to Z. X of his own pays the whole amount to Z and Y not knowing this also pays the amount to Z. Can Y subsequently recover the amount from Z.
78. X, a trader leaves goods at Y’s house by mistake. Y treats the goods as his own. What is remedy available to X. X can recover damages or goods (if they are intact) sec. 70
79. X owes money to Y under a contract. It is agreed between X, Y and Z that Y will accept Z as his debtor instead of X. Is the old debt extinguished? Yes : as per sec. 62
80. P contracts with Q to execute some construction work for a fixed price, Q supplying the scaffolding and timber necessary for the work. Q fails to supply the necessary scaffolding and timber. Can P refuse to execute the construction work? Can P claim damages for loss arising for Qs non-performance.
82. X promises to build a stable for Y’s horse and Y promises to pay X on completion of the work. Half-way during construction X demands money from Y. Can Y refuses to pay? Yes – he will pay after complete construction as per contract sec. 52
83. X undertakes to deliver 100 bags of wheat to Y on an appointed day. Is X bound to fix the place of delivery? Yes Sec. 49
84. A promises to deliver 50 rice bags at B’s warehouse on 1st January. A brings the goods as promised but after the usual business hours. Has A performed his promise? No Sec. 47
85. A, B and C jointly promise to pay D a sum of Rs. 1,500. C is compelled to pay the whole amount. A is insolvent but his assets are sufficient to pay one half of his debts. How much C is entitled to recover from A and B’s estates. 250 from A and 625 from B. (sec. 43 )
86. A, a singer enters into a contract with B, the manager of a theatre, to sing at this theatre two nights in every week during the next two months and is engaged to pay her Rs. 100 for each night’s performance. On the sixth night, A wilfully absents herself from the theatre. Can B put an end the contract. Yes : Sec. 39
87. A promises to paint a picture for B within a month for a price. A dies shortly thereafter. Can B enforce the contract against the legal representatives of A. No sec. 37
88. A agrees to pay B a sum of money if B marries C. C married D. What is the consequence? The contract is now void Sec. 36
89. A makes a contract with B to buy B’s car if A survives C. Can contract be enforced before C dies? No Sec. 32
90. C contracts to pay A Rs. 10,000 if his car is destroyed. What is the nature of his contract? Contingency contract Sec. 31
91. A agrees to sell B all the rice in his godown. Is it a valid agreement? Yes there is certainity
92. A is dealer in different kinds of oil. He agrees to sell B “a hundred tonnes of oil. “Is there any agreement”? No Sec. 29 it is a mistake
93. A owes to B Rs. 1,000 but the debt is barred by the Limitation Act. A orally promises to pay the debt. Can B recover the money from A. No it requires written consent now
94. X promises to superintend on behalf of Y a legal manufacturer of indigo and illegal traffic in cosmetic. Y promises to pay to X Rs. 20,000 a year for this. Is the agreement valid? No it is invalid Sec. 24
95. A’s estate is sold for arrears of revenue under the provisions of an Act of legislature by which the defaulter is prohibited from purchasing the estate. B, upon an understanding with A, becomes the purchaser and agrees to convey the estate to A upon receiving from him the price which B has paid. Is the agreement valid.
96. Solution ... This agreement will defeat the purpose of law. If it is noticed later, it will be invalid.
97. A promises to obtain for B an employment in the public service and B promises to pay Rs. 1,000 to A. Is this valid contract. No Sec. 23
98. A agrees to buy from B a certain horse. It turns out that the horse was dead at the time of the bargain, though neither party was aware of the fact. Is the agreement valid? No Sec. 20 (mistake of facts)
99. distinguish between a condition and a warranty. Condition is essential, if it is broken, the contract of sale is broken. Warranty is collateral to the main purpose of ( second part of a) contract, if it is broken damages can be claimed. Read sec. 10 to 17 of Sale of goods act for detail. Condition is more important and binding than warranty.
100. DISTINGUISH Sale and Hire Purchase Agreement There is immediate transfer of property in case of sale. In hire purchase, the property transfers at the end of the period (when all the instalments are paid). If you buy a car from a showroom on hire purchase, you will be its true owner only when you payback all the instalments and thus hire purchase doesnt give the buyer complete powers. The hire purchase agreement only gives an option to buy the goods to the buyer, but there is a clear agreement in the case of sale.
101. Can you sell future goods? Yes – as per sec. 2(6) : these goods must be specific, identifiable and certain. If they are not certain, you cannot sell them. Example : In your factory you make bisxuits. You make a contract to supply 1000 kg of biscuits to a buyer on certain price and the goods will be manufactured in next 1 month.
102. What is the Doctrine of ‘Nemo dat quod non habet’. It is related to transfer of ownership. It means : no one can pass a better title than he himself has. You cant sell a property, which doesnt belong to you. If you are owner of something then only you can sell it. If you are not owner, how can you sell something?
103. Discuss the rights of an unpaid seller. The unpaid seller can take possession of the goods, he can stop the goods in transit (which are going to the buyer) or can sell these goods to some other person. (sec.,50,52, 54 of sale of goods act) He has right to lien on the goods He can withhold delivery of goods (if the goods are with him). (sec. 55 of sale of goods act)
104. WHAT IS THE Doctrine of Caveat Emptor Sec 16 : the buyer should satisfy himself about the goods before buying. Thus buyer should be alert and careful while buying the goods.
105. A and B are co-owners of a T.V. while the T.V. is in possession of B. A's secretary takes it away and sells it to C, a bonafide purchaser for value. As per sec. 14(a) and rule of Nemo Dat Quod Non-Habet the secretary of A cant sell the TV to C. C will have to return the TV back to A & B. However, C can recover his money from secretary of A.
106. X by way of undue influence buys a car from Y at a very low price and sells it to Z, an innocent purchaser. Here this is a case of voidable contract between X and Y. However, Z purchased from X without any knowledge of this. As per sec. 27 of Sale of Goods act, the buyer gets a good title, if he buys innocently and after fulfilling regular checkups. Thus Z cant be forced to return car. X can recover his remaining money from Y.
107. Why it is important to know the time of passing of property? If the goods are damaged after that time, the responsibility is that of buyer, if the goods are destroyed before that time, the responsibility will be that of the seller. The time is important, as if there is some special circumstances, it may lead the contract to a null / void contract.
108. What are implied conditions and warranties? These conditions are assumed to be there in every sale contract. 1. condition to the title of the goods : it is assumed that the seller has title to the goods. 2. quite possession / freedom from encumbrances (nobody should disturb the enjoyment of the goods). 3. in case of sale by description, the goods must be similar to description, and in case of sale by sample, the goods should be similar to the sample 4. quality / fitness : the goods must be fit for use for the purpose for which they have been bought. 5. the seller has to disclose dangerous nature of goods. 6. as per business practices. ... ..
109. Define negotiable instrument. Negotiable instrument is one instrument which can be transferred by one person. Thus ownership is transferable in the case of negotiable instrument. It is of two types : 1. bearer 2. order bearer instrument doesnt require any endorsement – transfer is by only delivery. In case of order instrument, the owner has to endorse it in favour of transferee.
110. contd... Sec. 13(1) : negotiable instrument means – a promissory note – a bill of exchange – a cheque payable to order or bearer promissory note is a promise to pay certain amount to the bearer of the instrument or to order on specified date
111. What is the difference between a bill and promissory note? Promissory note is a promise to pay, it is prepared by the debtor himself and it is given to creditor. A bill is an order to a party to pay some amount. Thus it is prepared by creditor on a debtor. A bill has to be accepted by the debtor (that the debtor will pay on specified date / on demand).
112. What is dishonour of a bill ? When the debtor (drawee) is not able to pay a bill on due date, it is called dishonour of a bill. It is the inability of the debtor to pay the bill on due date. When there is dishonour of bill, the holder of the bill will give a notice to the drawee. This notice must be noted with notary. Read sec. 91 to 99 of negotiable instrument act.
113. Do you think : Forgery of drawers’ signatures protects the paying bank. No. Forgery is a crime. The bank has to recover the amount from the person who is doing forgery.
114. What is the difference between holder and holder in due course ? Holder means the bearer of an instrument. Holder in due course means a person who has acquired instrument properly through proper legal procedure and therefore that person has proper legal right on the instrument. A holder in due course is a person, who gets full right to the instrument.
115. Some furniture was delivered by X to A on hire purchase basis so that he could become owner after the payment of the last instalment. A sold the furniture to B even before such payment. A failed to make the last payment. X wanted to recover the furniture from B. Would he succeed? A is not the owner of the property, so he cant sell the property, so the property belongs to X. If B is able to proove that he had some criteria to believe that A was owner, then he may be able to retain the property. In that case X should get damages from A.
116. In a contact through sea, where the seller has to put the goods on board ship at his own expenses, the contract is known as : There is are three popular types : .1 FOB 2 CIF 3. EX-FACTORY this is the case of FOB – free on board – because here the seller is responsible to put the goods on board. In the case of CIF, the seller bears carriage, insurance and freight (all the three expenses). In ex-factor or ex-godown, the seller gives the delivery of goods at factory and is not responsible thereafter.
117. What is Stale cheque. A cheque which is out of date is called stale cheque. A chaque has life of 6 months from the date which it bears. In some cases, the life of cheque is only 3 months. (for example in the cae of banker's cheque)
118. What is banker's cheque? A cheque drawn by one bank on another bank. It is used for transfer of money to another person within the same city. It is similar to bank draft.
119. What is hundi? It is a traditional financial instrument, which has been in use for hundreds of years. It was used by Marwari traders to undertake financial transactions. Suppose Y is your debtor (you have sold him some goods on credit) by Rs. 3000 and you have to pay Rs. 3000 to Z. You can draw a hundi on Y payable to Z. Thus on due date, Z will collect Rs. 3000 from Y on your behalf and thus your account will be settled. It is like bill of exchange.
120. What is an Accommodation Bill It is a means of financing. Example : I need Rs. 9 Lakh urgently urgently. I draw a bill on you for 6 months and get the bill accepted by you for Rs. 9 lakhs. I go to the bank and get the bill discounted. The bank gives me some 8.9 lakhs. On due date (after 6 months), the bank will collect Rs. 9 lakhs from you. (by that time I will also give you Rs. 9 lakhs, so that you may pay to the bank).
121. Who is a Holder-in-due course As per sec. 9 of Negotiable Instrument : A holder in due course is a person who obtains possession of a negotiable instrument for consideration and without any cause to believe that any defect exists in the title of the person from whom he derives his title. The instrument must be obtained before the date of expiry of the instrument and with proper endorsement (in case of to order instrument). Sometimes, holder in due course gets better title than a holder.
122. A draws a bill payable three months after sight on B. It passes several hands before X becomes its holder. On presentation by X, B refuses to accept the bill. Discuss the rights of X.
123. Solution ... X has right to collect payment from B or from the person who gave this instrument to X. The concerned person will than collect throug the chain, ultimately, A will be responsible, who will finally collect payment from B. X will have to give a notice of dishonour to B and then he will be able to recover money from the person who passed him this bill.
124. What is Endorsement. If I have some bill / cheque / promisory note (a negotiable instrument – of any type), and I want to give it to someone else, I can give it by delivery (in case of bearer instrument) or by endorsement (in case the instrument is to order). Thus endorsement is required when the instrument is to order. It enables a person to transfer ownership of the negotiable instrument. Here the endorser rights at the back of the instrument the name of the endorsee, and the details.
125. Example of endorsement I T.K. Jain give the right of this cheque to Mr M. K. Jain for money and consideration received. Signature.
126. What is a valid endorsement It must be made before the instrument expires it must be made by a holder in due course it must be made by a person who has clear title to the instrument. It must be against consideration. (read Sec. 15 and 16 of Negotiable instrument act for detail) Sec. 52 : endorser may exclude his own ultimate liability in some cases.
127. Describe legal presumption in case of negotiable instruments. Negotiable instruments are transferable by the holder in due course. It is assumed that the negotiable instrument was prepared for consideration. It was transferred before its maturity date. It was duely signed / stamped as per legal requirements. The holder of the instrument is assumed to be the holder in due course. (read sec. 118 and 119 of N.I. Act 1881)
128. Discuss the penal provisions in case of dishonour of cheque? Dishonour means payment is not made by the banker against the cheque. The banker may refuse payment when – 1. there is insufficient balance 2. there is signature mismatch 3. when there is stop payment instruction by the drawer 4. other reasons approved by law. 138-142 say : Imprisonment upto 2 years / fine upto twice the amount of cheque (or both) penaly if there is dishonour due to lack of funds. (proper procedure regarding notice must be followed). (case: G.M. Mittal Stainless Steel v/s Nagarjun Investments 1997)
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