Mba Bl Jollysarkar Lect 1

Definition and scope of Business Law: The term ‘Business Law’ may be defined as that branch of law which comprises law concerning trade, industry and commerce, i.e., it deals with contractual situations and the right and obligations arising out of mercantile transactions between mercantile persons.

BL

Lect 1

JollySarkar

Introduction to Contract Act • Contracts are the basis of many daily activities. • Contract law is based on the principle expressed in the Latin phrase pacta sunt servanta • They provide the means for individuals and businesses to sell and otherwise transfer property, services, and other rights. • Without enforceable contracts, commerce would collapse.

BL

Lect 1

JollySarkar

Indian Contract Act, 1872 • The Law of contract is that branch of law

which determines the circumstances in which promises made by the parties to a contract shall be legally binding on them. • It is the most important branch of business law. BL

Lect 1

JollySarkar

Definition of Contract According to Sec.2(h) of the Indian Contract Act: “An agreement enforceable by law is a contract.” Contract consists of two elements:4) An agreement 5) Legal Obligations • Agreement + enforceability by law = contract. • Agreement must create a legal obligation or duty. BL

Lect 1

JollySarkar

1. Agreement • Acc. To Sec. 2(e), “Every promise and every set of promises, forming consideration for each other, is an agreement.”

Promise • Acc. To Sec.2(b), “When a 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.” •Agreement = Offer + Acceptance. BL

Lect 1

JollySarkar

2. LEGAL OBLIGATION Social agreements Legal agreements

“Legal agreements are contracts.” Thus an agreement is a wider term than a contract.

“All contracts are agreements but all agreements are not contracts”. BL

Lect 1

JollySarkar