4 July Business Law Ii
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BUSINESS LAW Dr. T.K. Jain. AFTERSCHOOOL Centre for social entrepreneurship Bikaner M: 9414430763 [email protected] www.afterschool.tk www.afterschoool.tk www.afterschoool.tk
WHAT IS A CONTRACT?
AN AGREEMENT ENFORCEABLE BY LAW (SECTION 2 (H) CONTRACT ACT 1872.
www.afterschoool.tk
If I ask my student to sell me his car at Rs. 50000 (when I know that it is worth Rs. 500000), what is it? Undue Influence
www.afterschoool.tk
If a police executive uses his power and forces a person to sell his house for Rs. 50000. What is it? Coercion (use of force to get some results. ).
www.afterschoool.tk
ESSENTIAL ELEMENTS OF A CONTRACT?
LAWFUL CONSIDERATION FREE CONSENT LAWFUL AGREEMENT OFFER & ACCEPTANCE
www.afterschoool.tk
VOID CONTRACT?
AN AGREEMENT WHICH CEASES TO BE ENFORCEABLE BY LAW SECTION 2 (J)
www.afterschoool.tk
WHICH ARE VOID CONTRACT?
Mistake of facts – sec. 20 Unlawful object sec 23 Agreement without consideration sec. 25 Agreement in restraint of marriage sec. 26 Agreement in restraint of trade sec. 27 Wager agreement sec. 30 Agreement against legal proceeding: sec 28.
www.afterschoool.tk
VOIDABLE CONTRACT?
AN AGREEMENT WHICH IS ENFORCEABLE AT THE OPTION OF ONE OR MORE PARTIES BUT NOT AT THE OPTION OF OTHER PARTY IS CALLED VOIDABLE CONTRACT. SEC. 2 (I)
www.afterschoool.tk
WHICH ARE VOIDABLE CONTRACTS?
CONTRACTS MADE UNDER COERCION, UNDUE INFLUENCE, FRAUD, MISREPRESENTATION ETC.
www.afterschoool.tk
IS VOID CONTRACT SAME AS ILLEGAL CONTRACT?
NO ALL ILLEGAL CONTRACTS ARE VOID CONTRACTS BUT ALL VOID CONTRACTS ARE NOT ILLEGAL CONTRACTS.
www.afterschoool.tk
HOW MANY TYPES OF OFFERS CAN YOU MENTION?
GENERAL OFFER SPECIAL OFFER CROSS OFFER COUNTER OFFER STANDING OFFER
www.afterschoool.tk
I MAKE AN OFFER TO RAM TO BUY HIS HOUSE IN RS. 5 LAKH, HE MAKES ANOTHER OFFER TO SELL THE HOUSE AT RS. 6 LAKH. WHAT IS HIS IS IT CROSS OFFER = NO OFFER?
IT IS COUNTER OFFER
www.afterschoool.tk
I MAKE AN OFFER TO RAM TO SELL MY HOUSE AT RS. 5 LAKH, RAM ALSO MAKES AN OFFER TO BUY MY HOUSE AT RS. 5 LAKH. I SEND MY OFFER BY POST, HE SENDS HIS OFFER BY EMAIL. WHAT OFFERS ARE THESE? CROSS OFFER.
www.afterschoool.tk
I TELL RAM THAT HE MAY BUY MY HOUSE AT ANY TIME IN FUTURE AT RS. 5 LAKH. WHAT TYPE OF OFFER IS IT?
STANDING OFFER
www.afterschoool.tk
ESSENTIAL CHARACTERISTICS OF AN OFFER? DEFINITE
EXPRESSED OR IMPLIED OFFER IS NOT INVITATION TO OFFER CERTAIN INTENED TO CREATE LEGAL RELATIONSHIP OFFER MUST BE COMMUNICATED MUST NOT CONTAIN A TERM – THE NON COMPLIANCE OF WHICH WILL AMOUNT TO AGREEMENT www.afterschoool.tk
I GIVE AN ADVERTISEMENT : “ I HAVE A COMPUTER TO SELL” IS IT AN OFFER?
NO IT IS AN INVITATION TO OFFER
www.afterschoool.tk
I MAKE AN OFFER: “IF YOU DON’T REPLY, I SHALL ASSUME THAT YOU WILL BUY MY HOUSE IN RS. 5 LAKH” IS IT AN OFFER?
NO
www.afterschoool.tk
I MAKE AN ADVERTISEMENT THAT I SHALL SELL MY HOUSE FOR RS. 5 LAKH, TO THE PERSON WHO HELPS ME IN MY LEGAL DISPUTE. IS IT AN YESOFFER. – OFFER CAN BE CONDITIONAL ALSO.
www.afterschoool.tk
I MAKE AN OFFER – “I WANT TO SELL MY HOUSE AT RS. 5 LAKH. IN CASE ANY PERSON IS INTERESTED, HE SHOULD SEND THE REPLY BY EMAIL.” MOHAN REPLIES BY POST. IS IT VALID ACCEPTANCE?
NO – THE ACCEPTANCE HAD TO BE THROUGH EMAIL ONLY (IT WAS CONDITIONAL OFFER). www.afterschoool.tk
WHAT IS ACCEPTANCE?
WHEN A PERSON CONVEYS HIS WILLINGNESS / ASSENT TO OTHER PERSONS’S OFFER (SEC. 2 (B))
www.afterschoool.tk
ELEMENTS OF ACCEPTANCE?
MUST BE ABSOLUTE AND UNQUALIFIED MUST BE COMMUNICATED MUST BE MADE IN PRESCRIBED MANNER MUST BE WITHIN TIME MAY BE DONE BY CONDUCT ALSO
www.afterschoool.tk
RAM SENDS ME AN OFFER REQUESTING TO SELL GOODS OF RS. 5000. I DON’T SEND ACCEPTANCE. I SEND THE GOODS. IS IT VALID ACCEPTANCE?
YES – ACCEPTANCE CAN BE BY CONDUCT ALSO.
www.afterschoool.tk
I SEND AN OFFER TO JITENDRA BY POST. I SEND IT ON 1 JULY BUT JITENDRA RECEIVES IT ON 10 JULY. WHEN DID I MAKE AN OFFER?
10 JULY
www.afterschoool.tk
IN THE PREVIOUS QUESTION, WHEN CAN I WITHDRAW MY OFFER AND HOW?
BEFORE 10 JULY – MY WIDHDRAWAL MUST REACH BEFORE MY OFFER – BY ANY MEANS
www.afterschoool.tk
WHAT IS CONSIDERATION?
AT THE DESIRE OF PROMISOR, THE PROMISEE OR ANY OTHER PERSON HAS DONE SOMETHING OR ABSTAIN FROM DOING OR DOES OR ABSTAINS FROM DOING OR PROMISES TO DO OR ABSTAIN FROM DOING SOMETHING – SUCH ACT / ABSTINANCE IS CALLED CONSIDERATION FOR PROMISE SEC. 2 (D) www.afterschoool.tk
ELEMENTS OF CONSIDERATION?
Must be at the desire of promisor May be present future or past Need not be adequate. Must be real May be for doing something or for not doing something
www.afterschoool.tk
If I tell a police officer to protect me and in exchange to that I offer to pay him Rs. 5000. Is it valid It is the duty of police officer to protect. consideration? Therefore such consideration is not valid.
www.afterschoool.tk
I tell Jitendra to give me his house and in return I promise to show him an elephant with horns. Is it a valid consideration? No – we know that elephent with horn is not possible – so this is not a valid consideration.
www.afterschoool.tk
Which are the agreements, which are valid without consideration? Based on natural love
Based on past voluntary services Time barred debt Gifts (In other cases, agreement without consideration is void as per section 25).
www.afterschoool.tk
A husband promises to give his car to his wife without consideration. Is this agreement valid? Yes – based on natural love
www.afterschoool.tk
There was an agreement between Ram and Shyam, can Hari go to court to enforce this agreement? In some cases third party can also go to the court to enforce the agreement. These are the matters where third party is involved in the matter as beneficiary.
www.afterschoool.tk
When can third party sue for agrement?
Beneficiary in the case of trust A female member in the case of HUF agremeents for provision of marriange expenses In cse of estoppel by acknowledgement Where benefit from contract have been assigned to some other person
www.afterschoool.tk
ABOUT AFTERSCHOOOL Afterschoool conducts three year integrated PGPSE (after class 12th along with IAS / CA / CS) and 18 month PGPSE (Post Graduate Programme in Social Entrepreneurship) along with preparation for CS / CFP / CFA /CMA / FRM. This course is also available online also. It also conducts workshops on social entrepreneurship in schools and colleges all over India – start social entrepreneurship club in your institution today with the help from afterschoool and help us in developing society.
www.afterschoool.tk
Why such a programme?
To promote people to take up entrepreneurship and help develop the society To enable people to take up franchising and other such options to start a business / social development project To enable people to take up social development as their mission To enable people to promote spirituality and positive thinking in the world
www.afterschoool.tk
Who are our supporters?
Afterschoolians, our past beneficiaries, entrepreneurs and social entrepreneurs are supporting us. You can also support us – not necessarily by money – but by being promotor of our concept and our ideas.
www.afterschoool.tk
About AFTERSCHOOOL PGPSE – the best programme for developing great entrepreneurs
Most flexible, adaptive but rigorous programme Available in distance learning mode Case study focused- latest cases Industry oriented practical curriculum Designed to make you entrepreneurs – not just an employee Option to take up part time job – so earn while you learn The only absolutely free course on internet www.afterschoool.tk
Workshops from AFTERSCHOOOL
IIF, Delhi CIPS, Jaipur ICSI Hyderabad Branch Gyan Vihar, Jaipur Apex Institute of Management, Jaipur Aravali Institute of Management, Jodhpur Xavier Institute of Management, Bhubaneshwar Pacific Institute, Udaipur Engineering College, Hyderabad
www.afterschoool.tk
Flexible Specialisations:
Spiritualising business and society Rural development and transformation HRD and Education, Social Development NGO and voluntary work Investment analysis,microfinance and inclusion Retail sector, BPO, KPO Accounting & Information system (with CA / CS /CMA) Hospital management and Health care Hospitality sector and culture and heritage Other sectors of high growth, high technology and social relevance
www.afterschoool.tk
Salient features:
The only programme of its kind (in the whole world) No publicity and low profile course For those who want to achieve success in life – not just a degree Indepth knowledge and expertise Professional approac: World class approach Strong intellectual and business capabilities Flexible – you may stay for a month and continue the rest of the education by distance mode. / you may attend weekend classes Scholarships for those from poor economic background Latest and constantly changing curriculum – keeping pace with the time Placement for those who are interested Admissions open throughout the year Latest and most advanced technologies, books and study material
www.afterschoool.tk
Components
Pedagogy curriculum and approach based on IIM Ahmedabad and ISB Hyderabad (the founder is alumnus from IIMA & ISB Hyderabad) Meditation, spiritualisation, and self development Essential softwares for business Business plan, Research projects Participation in conferences / seminars Workshops on leadership, team building etc. Written submissions of research projects/articles / papers Interview of entrepreneurs, writing biographies of entrepreneurs Editing of journals / newsletters Consultancy / research projects Assignments, communication skill workshops Participation in conferences and seminars Group discussions, mock interviews, self development diaryng Mind Power Training & writing workshop (by Dr. T.K.Jain)
www.afterschoool.tk
Pedagogy
Case analysis, Articles from Harvard Business Review Quiz, seminars, workshops, games, Visits to entrepreneurs and industrial visits Presentations, Latest audio-visuals Group discussions and group projects Periodic self assessment Mentoring and counselling Study exchange programme (with institutions out of India) Rural development / Social welfare projects
www.afterschoool.tk
Branches
AFTERSCHOOOL will shortly open its branches in important cities in India including Delhi, Kota, Mumbai, Gurgaon and other important cities. Afterschooolians will be responsible for managing and developing these branches – and for promoting social entrepreneurs.
www.afterschoool.tk
Case Studies
We want to write case studies on social entrepreneurs, first generation entrepreneurs, ethical entrepreneurs. Please help us in this process. Help us to be in touch with entrepreneurs, so that we may develop entrepreneurs.
www.afterschoool.tk
Basic values at afterschoool
Share to learn more Interact to develop yourself Fear is your worst enemy Make mistakes to learn Study & discuss in a group Criticism is the healthy route to mutual support and help Ask fundamental questions : why, when, how & where? Embrace change – and compete with yourself only
www.afterschoool.tk
www.afterschoool.tk social entrepreneurship for better society
www.afterschoool.tk
WHAT IS A CONTRACT?
AN AGREEMENT ENFORCEABLE BY LAW (SECTION 2 (H) CONTRACT ACT 1872.
www.afterschoool.tk
If I ask my student to sell me his car at Rs. 50000 (when I know that it is worth Rs. 500000), what is it? Undue Influence
www.afterschoool.tk
If a police executive uses his power and forces a person to sell his house for Rs. 50000. What is it? Coercion (use of force to get some results. ).
www.afterschoool.tk
ESSENTIAL ELEMENTS OF A CONTRACT?
LAWFUL CONSIDERATION FREE CONSENT LAWFUL AGREEMENT OFFER & ACCEPTANCE
www.afterschoool.tk
VOID CONTRACT?
AN AGREEMENT WHICH CEASES TO BE ENFORCEABLE BY LAW SECTION 2 (J)
www.afterschoool.tk
WHICH ARE VOID CONTRACT?
Mistake of facts – sec. 20 Unlawful object sec 23 Agreement without consideration sec. 25 Agreement in restraint of marriage sec. 26 Agreement in restraint of trade sec. 27 Wager agreement sec. 30 Agreement against legal proceeding: sec 28.
www.afterschoool.tk
VOIDABLE CONTRACT?
AN AGREEMENT WHICH IS ENFORCEABLE AT THE OPTION OF ONE OR MORE PARTIES BUT NOT AT THE OPTION OF OTHER PARTY IS CALLED VOIDABLE CONTRACT. SEC. 2 (I)
www.afterschoool.tk
WHICH ARE VOIDABLE CONTRACTS?
CONTRACTS MADE UNDER COERCION, UNDUE INFLUENCE, FRAUD, MISREPRESENTATION ETC.
www.afterschoool.tk
IS VOID CONTRACT SAME AS ILLEGAL CONTRACT?
NO ALL ILLEGAL CONTRACTS ARE VOID CONTRACTS BUT ALL VOID CONTRACTS ARE NOT ILLEGAL CONTRACTS.
www.afterschoool.tk
HOW MANY TYPES OF OFFERS CAN YOU MENTION?
GENERAL OFFER SPECIAL OFFER CROSS OFFER COUNTER OFFER STANDING OFFER
www.afterschoool.tk
I MAKE AN OFFER TO RAM TO BUY HIS HOUSE IN RS. 5 LAKH, HE MAKES ANOTHER OFFER TO SELL THE HOUSE AT RS. 6 LAKH. WHAT IS HIS IS IT CROSS OFFER = NO OFFER?
IT IS COUNTER OFFER
www.afterschoool.tk
I MAKE AN OFFER TO RAM TO SELL MY HOUSE AT RS. 5 LAKH, RAM ALSO MAKES AN OFFER TO BUY MY HOUSE AT RS. 5 LAKH. I SEND MY OFFER BY POST, HE SENDS HIS OFFER BY EMAIL. WHAT OFFERS ARE THESE? CROSS OFFER.
www.afterschoool.tk
I TELL RAM THAT HE MAY BUY MY HOUSE AT ANY TIME IN FUTURE AT RS. 5 LAKH. WHAT TYPE OF OFFER IS IT?
STANDING OFFER
www.afterschoool.tk
ESSENTIAL CHARACTERISTICS OF AN OFFER? DEFINITE
EXPRESSED OR IMPLIED OFFER IS NOT INVITATION TO OFFER CERTAIN INTENED TO CREATE LEGAL RELATIONSHIP OFFER MUST BE COMMUNICATED MUST NOT CONTAIN A TERM – THE NON COMPLIANCE OF WHICH WILL AMOUNT TO AGREEMENT www.afterschoool.tk
I GIVE AN ADVERTISEMENT : “ I HAVE A COMPUTER TO SELL” IS IT AN OFFER?
NO IT IS AN INVITATION TO OFFER
www.afterschoool.tk
I MAKE AN OFFER: “IF YOU DON’T REPLY, I SHALL ASSUME THAT YOU WILL BUY MY HOUSE IN RS. 5 LAKH” IS IT AN OFFER?
NO
www.afterschoool.tk
I MAKE AN ADVERTISEMENT THAT I SHALL SELL MY HOUSE FOR RS. 5 LAKH, TO THE PERSON WHO HELPS ME IN MY LEGAL DISPUTE. IS IT AN YESOFFER. – OFFER CAN BE CONDITIONAL ALSO.
www.afterschoool.tk
I MAKE AN OFFER – “I WANT TO SELL MY HOUSE AT RS. 5 LAKH. IN CASE ANY PERSON IS INTERESTED, HE SHOULD SEND THE REPLY BY EMAIL.” MOHAN REPLIES BY POST. IS IT VALID ACCEPTANCE?
NO – THE ACCEPTANCE HAD TO BE THROUGH EMAIL ONLY (IT WAS CONDITIONAL OFFER). www.afterschoool.tk
WHAT IS ACCEPTANCE?
WHEN A PERSON CONVEYS HIS WILLINGNESS / ASSENT TO OTHER PERSONS’S OFFER (SEC. 2 (B))
www.afterschoool.tk
ELEMENTS OF ACCEPTANCE?
MUST BE ABSOLUTE AND UNQUALIFIED MUST BE COMMUNICATED MUST BE MADE IN PRESCRIBED MANNER MUST BE WITHIN TIME MAY BE DONE BY CONDUCT ALSO
www.afterschoool.tk
RAM SENDS ME AN OFFER REQUESTING TO SELL GOODS OF RS. 5000. I DON’T SEND ACCEPTANCE. I SEND THE GOODS. IS IT VALID ACCEPTANCE?
YES – ACCEPTANCE CAN BE BY CONDUCT ALSO.
www.afterschoool.tk
I SEND AN OFFER TO JITENDRA BY POST. I SEND IT ON 1 JULY BUT JITENDRA RECEIVES IT ON 10 JULY. WHEN DID I MAKE AN OFFER?
10 JULY
www.afterschoool.tk
IN THE PREVIOUS QUESTION, WHEN CAN I WITHDRAW MY OFFER AND HOW?
BEFORE 10 JULY – MY WIDHDRAWAL MUST REACH BEFORE MY OFFER – BY ANY MEANS
www.afterschoool.tk
WHAT IS CONSIDERATION?
AT THE DESIRE OF PROMISOR, THE PROMISEE OR ANY OTHER PERSON HAS DONE SOMETHING OR ABSTAIN FROM DOING OR DOES OR ABSTAINS FROM DOING OR PROMISES TO DO OR ABSTAIN FROM DOING SOMETHING – SUCH ACT / ABSTINANCE IS CALLED CONSIDERATION FOR PROMISE SEC. 2 (D) www.afterschoool.tk
ELEMENTS OF CONSIDERATION?
Must be at the desire of promisor May be present future or past Need not be adequate. Must be real May be for doing something or for not doing something
www.afterschoool.tk
If I tell a police officer to protect me and in exchange to that I offer to pay him Rs. 5000. Is it valid It is the duty of police officer to protect. consideration? Therefore such consideration is not valid.
www.afterschoool.tk
I tell Jitendra to give me his house and in return I promise to show him an elephant with horns. Is it a valid consideration? No – we know that elephent with horn is not possible – so this is not a valid consideration.
www.afterschoool.tk
Which are the agreements, which are valid without consideration? Based on natural love
Based on past voluntary services Time barred debt Gifts (In other cases, agreement without consideration is void as per section 25).
www.afterschoool.tk
A husband promises to give his car to his wife without consideration. Is this agreement valid? Yes – based on natural love
www.afterschoool.tk
There was an agreement between Ram and Shyam, can Hari go to court to enforce this agreement? In some cases third party can also go to the court to enforce the agreement. These are the matters where third party is involved in the matter as beneficiary.
www.afterschoool.tk
When can third party sue for agrement?
Beneficiary in the case of trust A female member in the case of HUF agremeents for provision of marriange expenses In cse of estoppel by acknowledgement Where benefit from contract have been assigned to some other person
www.afterschoool.tk
ABOUT AFTERSCHOOOL Afterschoool conducts three year integrated PGPSE (after class 12th along with IAS / CA / CS) and 18 month PGPSE (Post Graduate Programme in Social Entrepreneurship) along with preparation for CS / CFP / CFA /CMA / FRM. This course is also available online also. It also conducts workshops on social entrepreneurship in schools and colleges all over India – start social entrepreneurship club in your institution today with the help from afterschoool and help us in developing society.
www.afterschoool.tk
Why such a programme?
To promote people to take up entrepreneurship and help develop the society To enable people to take up franchising and other such options to start a business / social development project To enable people to take up social development as their mission To enable people to promote spirituality and positive thinking in the world
www.afterschoool.tk
Who are our supporters?
Afterschoolians, our past beneficiaries, entrepreneurs and social entrepreneurs are supporting us. You can also support us – not necessarily by money – but by being promotor of our concept and our ideas.
www.afterschoool.tk
About AFTERSCHOOOL PGPSE – the best programme for developing great entrepreneurs
Most flexible, adaptive but rigorous programme Available in distance learning mode Case study focused- latest cases Industry oriented practical curriculum Designed to make you entrepreneurs – not just an employee Option to take up part time job – so earn while you learn The only absolutely free course on internet www.afterschoool.tk
Workshops from AFTERSCHOOOL
IIF, Delhi CIPS, Jaipur ICSI Hyderabad Branch Gyan Vihar, Jaipur Apex Institute of Management, Jaipur Aravali Institute of Management, Jodhpur Xavier Institute of Management, Bhubaneshwar Pacific Institute, Udaipur Engineering College, Hyderabad
www.afterschoool.tk
Flexible Specialisations:
Spiritualising business and society Rural development and transformation HRD and Education, Social Development NGO and voluntary work Investment analysis,microfinance and inclusion Retail sector, BPO, KPO Accounting & Information system (with CA / CS /CMA) Hospital management and Health care Hospitality sector and culture and heritage Other sectors of high growth, high technology and social relevance
www.afterschoool.tk
Salient features:
The only programme of its kind (in the whole world) No publicity and low profile course For those who want to achieve success in life – not just a degree Indepth knowledge and expertise Professional approac: World class approach Strong intellectual and business capabilities Flexible – you may stay for a month and continue the rest of the education by distance mode. / you may attend weekend classes Scholarships for those from poor economic background Latest and constantly changing curriculum – keeping pace with the time Placement for those who are interested Admissions open throughout the year Latest and most advanced technologies, books and study material
www.afterschoool.tk
Components
Pedagogy curriculum and approach based on IIM Ahmedabad and ISB Hyderabad (the founder is alumnus from IIMA & ISB Hyderabad) Meditation, spiritualisation, and self development Essential softwares for business Business plan, Research projects Participation in conferences / seminars Workshops on leadership, team building etc. Written submissions of research projects/articles / papers Interview of entrepreneurs, writing biographies of entrepreneurs Editing of journals / newsletters Consultancy / research projects Assignments, communication skill workshops Participation in conferences and seminars Group discussions, mock interviews, self development diaryng Mind Power Training & writing workshop (by Dr. T.K.Jain)
www.afterschoool.tk
Pedagogy
Case analysis, Articles from Harvard Business Review Quiz, seminars, workshops, games, Visits to entrepreneurs and industrial visits Presentations, Latest audio-visuals Group discussions and group projects Periodic self assessment Mentoring and counselling Study exchange programme (with institutions out of India) Rural development / Social welfare projects
www.afterschoool.tk
Branches
AFTERSCHOOOL will shortly open its branches in important cities in India including Delhi, Kota, Mumbai, Gurgaon and other important cities. Afterschooolians will be responsible for managing and developing these branches – and for promoting social entrepreneurs.
www.afterschoool.tk
Case Studies
We want to write case studies on social entrepreneurs, first generation entrepreneurs, ethical entrepreneurs. Please help us in this process. Help us to be in touch with entrepreneurs, so that we may develop entrepreneurs.
www.afterschoool.tk
Basic values at afterschoool
Share to learn more Interact to develop yourself Fear is your worst enemy Make mistakes to learn Study & discuss in a group Criticism is the healthy route to mutual support and help Ask fundamental questions : why, when, how & where? Embrace change – and compete with yourself only
www.afterschoool.tk
www.afterschoool.tk social entrepreneurship for better society
www.afterschoool.tk
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