This document contains a syllabus for the course MSC3101: Introduction to Business Law. It lists several Acts that will be covered, including the Indian Contract Act, 1872, Indian Partnership Act, Limited Liability Partnership Act, and The Information Technology Act. It then provides a hypothetical scenario where Aman is unable to pay Dilip for taxi services or provide a donation to his brother Sahil due to unexpected financial losses. It analyzes this scenario in terms of contract law and the essential elements of a valid contract.

1. BBA – FS, SEM V
FACULTY: DR. MADHAVI KARANAM

2. MSC3101: INTRODUCTION TO BUSINESS LAW -SYLLABUS
INDIAN CONTRACT ACT
INDIAN PARTNERSHIP ACT
THE COMPANY ACT
LIMITED LIABILITY PARTNERSHIP ACT
THE INFORMATION TECHNOLOGY ACT

3. INDIAN
CONTRACT
ACT - 1872
BBA – FS, SEM V, MODULE 1
FACULTY: DR. MADHAI KARANAM

4. • Aman has two visitors at his home, Dilip and
Sahil.
• Aman had hired a taxi from Dilip the previous
week, for 5 days, at the rate of Rs 1800 per
day.
• Dilip has now come to collect Rs. 9000/- for
providing the taxi service.
• Sahil, Aman's youngest brother is jobless.
• He has come to solicit a donation from his
brother to start out a small business.• Aman had earlier said that he would give him Rs. 50,000. Sahil had thanked him
and was waiting to receive the amount from him.
• Just then, Aman got a phone call from his stockbroker, informing him that he had
lost Rs 10 lakhs in a sale of shares entrusted to the stockbroker.
• Aman will have to sell off his car and belongings to pay the money to the
stockbroker.

5. • Aman told both, Dilip and Sahil,
that he could not afford to give
them money and they should not
come back again for the money.
What is your interpretation of the
above case?

6.  Law of contract deals with such
promises which creates legal
obligations
 Excludes obligation which are not
contractual in nature
 Law of Contact deals with the
promises given for some value.
 This value is called consideration

7. • Contract:
• Sec 2(h) of the Indian
contract act, 1872 defines a
contract as an agreement
enforceable by law.
Contract=Agreement+Enforceability

8. Agreement= Offer + Acceptance
Agreement:
Sec 2(e) defines agreement
as “ every promise and
every set of promises
forming consideration for
each other”.

9. ELEMENTS OF CONTRACT
An Agreement
Legal Obligation (Enforceability By
Law)
Elements of Agreement:
 Offer/Proposal
 Acceptance of the offer

10. START TIMER
TIME’S UP!
TIME LIMIT:
2 minutes
• Situation 1:
Som says, “I want a Philip CD player.
The price quoted in the company's
advertisements is Rs. 4000/-. Will you
sell me one for this price?”
Arvind Replies, “Yes sir, I will.”

11. START TIMER
TIME’S UP!
TIME LIMIT:
2 minutes
• Situation 2:
• Som Says, “I want to buy a
Philips CD player,” Arvind
replies,” It will be Rs.4000/-, sir”.
• Som says, “fine , Give me one.”

12. START TIMER
TIME’S UP!
TIME LIMIT:
2 minutes
• Situation 3:
• Arvind Says, Philips is a good make.
I recommend it to you. It is priced at
Rs 4200/-.”
• Som says, I can pay Rs.3500/-.”
• Arvind responds, “ We do not
bargain.”
• Som says, “But still , give me some
discount.”
• Arvind Says, “I will give it to you for
Rs. 4000/-.”
• Som replies, “All right, I will buy

13. PROPOSAL / OFFER
•Def: Sec 2(a) of the act defines a
Proposal as:
•“When one person signifies to another his
willingness to do or to abstain from doing
anything, with a view to obtaining the assent
of that other to such act or abstinence he is
said to make a ‘Proposal’.”

14. ACCEPTANCE
•Definition:
•“When the person to whom a proposal is
made signifies his assent thereto, the
proposal is said to be accepted. A
proposal when accepted becomes a
promise.”

15. PROMISE
•Sec 2(b) defines promise in these words: “
When the person to whom the proposal is made
signifies his assent thereto, the proposal is said
to be accepted.
•A proposal when accepted becomes a
promise.”

16.  Electric Iron in a Showcase:
 A person sees an electric iron in the
showcase of a shop.
 The label below the iron mentioned the
price as Rs.600.
 He had been looking for that model of
electric iron for a long time. He
approaches the shop to buy one such
iron.
• However, he is told that the shop does
not have that model in stock. The
person insists that he has a right to
buy the one keep in the showcase.

17.  CDs in a Self Service Store
 AMPM is a self-service superstore. Ravi comes across blank
CDs of a reputed company being sold at a very cheap price.
 A box containing 10 CDs is priced at Rs.150 while its price was
Rs.250 in other shops. Ravi is a music artist and uses 2 boxes
every month for storing music.
 This is a very good deal for him. He pics up all the boxes that
are displayed on the self, and puts them in his shopping
trolley.
 At the cash counter, the boxes are counted and found to be
100 in number.
 The girl at the cash counter tells him that he could take only 5
boxes.

18.  An argument developed. The manager of the store is
called.
 He explains that AMPM came up with such discounts
from time to time to attract customers.
 If one customer were to go away with the entire lot,
the very purpose of putting the goods on discount
would be lost.
 Ravi is insistent that he had the right to take all the
boxes.
 Is the display of goods on the shelves an implied offer?
 Is the act of putting the goods in the trolley an implied
acceptance or an offer?
 When and where does the sale take place, at the cashier's
desk or when the customer selects an item from the shelf
and puts it in his trolley?

19.  Sourabh had booked to buy a car
with a motar agency.
 If it took more than two weeks for the
agency to deliver the car to him, he
would have to pay an additional
Rs.25,000 in increased price of the car
and taxes.
 The agency had said they would try
to get it for him within two weeks.
 The car was delivered after the two
weeks. He had to pay Rs.25,000 more
for it.

20.  A motor car agency agreed to supply a car of a certain
make to Gaurav in a week. The firm finally supplied him the
car five months later.
 In the process, Gaurav was required to pay Rs. 45,000 more
as the price of the car had increased.

21. • Aman has two visitors at his home, Dilip and
Sahil.
• Aman had hired a taxi from Dilip the previous
week, for 5 days, at the rate of Rs 1800 per
day.
• Dilip has now come to collect Rs. 9000/- for
providing the taxi service.
• Sahil, Aman's youngest brother is jobless.
• He has come to solicit a donation from his
brother to start out a small business.• Aman had earlier said that he would give him Rs. 50,000. Sahil had thanked him
and was waiting to receive the amount from him.
• Just then, Aman got a phone call from his stockbroker, informing him that he had
lost Rs 10 lakhs in a sale of shares entrusted to the stockbroker.
• Aman will have to sell off his car and belongings to pay the money to the
stockbroker.

22. • Aman has two visitors at his home, Dilip and
Sahil.
• Aman had hired a taxi from Dilip the previous
week, for 5 days, at the rate of Rs 1800 per
day.
• Dilip has now come to collect Rs. 9000/- for
providing the taxi service.
• Sahil, Aman's youngest brother is jobless.
• He has come to solicit a donation from his
brother to start out a small business.• Aman had earlier said that he would give him Rs. 50,000. Sahil had thanked him
and was waiting to receive the amount from him.
• Just then, Aman got a phone call from his stockbroker, informing him that he had
lost Rs 10 lakhs in a sale of shares entrusted to the stockbroker.
• Aman will have to sell off his car and belongings to pay the money to the
stockbroker.

23.  Must be made with a view to obtain
acceptance
 Must be made with the intention of
creating legal relations
 Terms of offer must be definite
 It must be distinguished from mere
declaration of intention or an invitation
to offer.
 It must be communicated to the
offeree.
ESSENTIALS OF A VALID OFFER

24.  The Offer Must not contain a term the
noncompliance of which may be assumed to
amount to acceptance.
 A tender is an offer as it is in response to an
invitation to Offer.
 The Special Terms, forming part of the offer, must
be duly brought to the notice of the offer at the
time the offer is made.
 Two identical cross-offers do not make a contract.

25.  Acceptance must be absolute and unqualified
 It must be communicated
 It must be according to the mode prescribed
 It must be given within the time specified or within
reasonable time
 It must be in response to Offer
ESSENTIALS OF A
VALID ACCEPTANCE
 Acceptance must be absolute and
unqualified
 It must be communicated
 It must be according to the mode
prescribed
 It must be given within the time specified or
within reasonable time
 It must be in response to Offer

26. AGREEMENT AND CONTRACT
• Agreement
• Offer+ Agreement
• May not create legal obligation
• All agreements are not contracts
• Agreement is a wider concept
• Agreement is not a concluded or a
binding contract
• Contract
• Agreement+Enforceability
• Necessarily creates legal
obligation
• All Contracts are agreement
• Contract is a specie of an
agreement
• Contract is Concluding and binding

27. LAW OF CONTRACT CREATES
• Right in Personam :
• Right against a particular person
• Right in Rem :
• Right against the whole world

28. ESSENTIALS
OF A
VALID CONTRACT
 Agreement = Proposal +
Acceptance
 Consideration
 Capacities of Parties to a
contract
 Free Consent
 An agreement must not be
expressly declared to be a
void.
 Writing and
Registration
 Legal Relationship
 Certainty
 Possibility of
Performance
 Enforceable by law

29.  Consideration is the cause of the promise.
 Def.
 “ When, at the desire of the promiser, the promisee or
any other person has
 done or abstained from doing or
 does or abstains from doing something or
 promises to do or to abstain form doing something,
 such act or abstinence or promise is called consideration
for the promise.

30. EXAMPLES:
COERCION
 A Young girl of 13 yrs was
forced to adopt a boy to her
husband who had just died ,
by the relatives of the
husband , who prevented the
removal of his body for
cremation until she
consented.
 An agent refused to hand
over the account books
of a business to the new
agent unless the principal
released him from all
liabilities. The Principal
has to give release deed
as, demanded.

31. EXAMPLES: UNDUE
INFLUENCE
 Father and Son
 Guardian and Ward
 Husband and Wife
 Doctor and Patient
 Solicitor and Client
 Parda Nashin women
 Trustee and Beneficiary
 Patient and Medical Adviser
 A, a man enfeeble by
disease or age, is induced
by B's influence over him
as his medical attendant,
to agree to pay to B an
unreasonable sum for his
professional services.

32. EXAMPLES: UNDUE
INFLUENCE
 A poor Hindu widow was
persuaded by a money-
lender to agree to pay 100 %
rate of Interest on money lent
by him to her. She needed
the money to establish her
right to maintenance.
 A Spiritual guru induced
his devotee to gift to him
the whole of his property
in return of a promise of
salvation of the devotee

33. QUASI
CONTRACTS• “Certain relations
resembling those created by
contracts”
– Quasi Contract rests on
the ground of equity
that a person shall not
be allowed to enrich
himself unjustly at the
expense of another.
 A Spiritual guru induced
his devotee to gift to him
the whole of his property
in return of a promise of
salvation of the devotee

34. KINDS OF QUASI
CONTRACTS
• Supply of Necessaries(sec 69)
• Payment by an interested person (sec. 69)
• Obligation to pay for non-gratuitious acts (sec
70)
• Responsibility of finder of Goods (Sec 71)
• Mistake or Coercion (sec 72)
• Quantum Meruit

35. • Ravi Holds land in Bengal, on lease granted by
Sourabh, the zamindar. The revenue payable by
Sourabh to the Government being in Arrears, his
land is advertised for sale by the Government. Under
the revenue law, the consequences of such sale will
be annulment of Ravi's Lease. Ravi to prevent the
sale and the consequent annulment of his own lease
, pays to the government the sum due from Sourabh.

36. – Sourabh is bound to make good to Ravi ,
the amount so Paid.
• Why So ?: Legal
• Payment by an interested
person (Sec 69)
• A person who is interested in the
payment of money which
another is bound by the law to
pay, and who therefore pays it, is
entitled to be reimbursed by the

37. • A Canal Company owned a canal and was under a
statutory duty to keep the bridge on the canal under
repair.
• The bridge fell into disrepair and the plaintiffs, the
highway authority, called upon the canal company
repair it.
• When the canal company failed to do so, the
themselves repaired the bridge and brought an

38. • The Plaintiffs could not recover as they acted as
mere volunteers.
– (Macclesfield Corporation Vs Great Central
Rail) (1911)
Legal Reasoning/Implications
1. The payment made should be for the
protection of one's interest.
2. The Payment should not be a voluntary one
(Canal
Company)
3. The payment must be such as the other party
was
bound by the law to pay.

43. TYPES
OF
CONTRACT
From the point of view
of :
 Enforceability
 Mode of Formation
 Performance

44. From the point of view
of Enforceability:
1.Valid contract
2. Void contract
3. Voidable contracts
4. Illegal Contracts
5. Unenforceable contract
From the point of
view of Formation
1. Express contract
2. Implied contract
3. Quasi Contracts From the point of
view of
Performance
1. Executed
2. Executory
3. Uni-lateral
4. Bi - lateral