Unit 1 Law Presentation

Corporate and Business Laws UNIT-I Presentation By •Foundation of Business LawPawan (Till Free Consent and Agency) and Manish (Indemnity,Guarantee and Bailment) •The Negotiable Instruments ActAmisha •Sale Of Goods ActRatika

Before Starting…What is LAW ? For Judge it is nothing but a set of guiding principles to be applied in deciding the cases  For Common man-it is set of rules he has to obey  For Lawyer-May think of law as vocation However… Merely Rules or Sets of rules doesn't mean Law But… They must be enforced by the Sovereign State and must receive due recognition 

Thus Law is the command of Sovereign (the power of Country to control its own

Why to Study-Business Law in MBA 

In Business Laws we have-

Indian Contract Act,1872 The Sale of Goods Act,1930 The Indian Partnership Act,1932 The Negotiable Instrument Act,1881

Why to StudyIntend to make Student aware of the Legal Background and simple problems on merchantile,banking,labour and cooperative societies and the after that company law 

Now Coming to the 1st PointIndian Contract Act Need due to Increasing Complexities of Business Environment  Most Usual Method of Give and Take  Prescribe so many rights and duties for Parties So, They Can desire any rules according to subject matter and their needs unless they are not legally prohibited. 

What is Contract???? Sec 2(h)Contract-Agreement + Enforceability by law Sec 2(e)Agreement-Every promise or set of promises, forming consideration for each other Important:-Law of Contracts is not the whole law of agreements nor the whole law of Obligations(Torts or civil worng,Decrees by Courts)

Its Essentials…          

Offer and Acceptance Enforceability by Law Lawful Consideration Capacity of Parties Free Consent Lawful Object Certainty of Meaning (It should not be vague) Possibility of Performance Not Declared to be void or Illegal Legal Formalities

Types of Contracts…  Valid,Void,Unenforcable,Illegal  Express, Implied(smelled out of Surrounding

Circumstances) Quasi(No Intention of Any Party to create it but Law Imposes It) (E.g.-Finder of Lost Goods)  Executed and Executory(Uni ‘n’ Bi Lateral)

Now your Turn…Just Simple Ans 

A and B agrees to go for Hunting

A

takes food in a restaurant

A

takes seat in local Bus

A

and B agrees to marry each other

Offer and Acceptance Offer-Willingness to do or abstain from doing (Offer or Proposal are Synonymous)  An offer must be distinguished from1-A mere statement of Intention (Auction to Held) 2-An Invitation to offer (Window Shopping) 3-Casual Enquiry(Do you want to sell your computer) 4-A mere Communication of Information (Answer made to any Question) 5-Prospectus(Inviting public to subscribe Shares) 6-Advertisment(Tender Notices) 

Revocation of offer and Acceptance 1-On Notice 2-Lapse of time, Subsequent Illegality 3-Non fulfillment of condition Precedent 4-Death or insanity, Counter offer Acceptance can be revoked anytime before the communication of Acceptance is Complete

One more Time to Ans…  What can’t be conditional-Offer or Acceptance  Acceptance cannot be implied from silence (Yes or No)

Consideration-Price for which the Promise of Other is Bought Essentials-(1)Must move at desire of Promisor(2)must be past,present or future (3)Lawful(4)Real(5)Need not be Adequate 

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Exceptions-(1)Natural Love and Affection (2)Compensation for services rendered (3)Time barred debts(4)Agency (5)Completed

Capacity of Parties-Minor, Unsound Mind, Person Disqualified by Law Contract with Minor-Void ab initio,No Ratification, No Specific Peroformance,No Estoppel,Can be Agent Imp-Liable for Torts and necssaries,No estoppels for Misrepresentation of facts and Figures Unsound mind-Cant make Rational Judgement (can arise due to Drunkness,Lunatic,hypnotism) Disqualified-Alien Enemies,Convict,Corporations

Question for you… 

A minor can always plead Minority… Comment?????

Free Consent-Same thing Same Sense 

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Coercion(threat or force to compel to enter) Undue Influence(Dominating the will of another) Fraud(Intention to deceive) Misrepresentation(false Representation made innocently with honestly belief Mistake(Erroneous Belief Concerning Something)

Effects in All cases  In first Four the Contract is Voidable and in

Mistake it is void even it is general law, foreign law, Mistake of Fact-subject matter,title,identity,quality,quantity Question for you-Mere Silence is not fraud??

Legality of object and Consideration Acc to Sec 23-An agreement of which the object and consideration is unlawful is void.  Consideration or object is UNLAWFUL… (1)If it is forbidden by law,(2)If defeat the Provisions of law,(3) If it is Fraudlent,(4)If it involves injury to another,(5) If immoral (6)If the court regards it as being opposed to public policy 

Agency-Principal and Agent Relation Appointment of agent by Principal(Express or Implied)  Authority Confer,No Consideration Necessary Principal:-Any Except Minor Agent:-Any but Not Minor,Not Unsound Minor Question for you:-Agent v/s Servant… Any Difference???? 

Kinds of Agent,Creation of Agency Kinds:-Express or Implied, General or Special or Universal, Sub Agent Merchantile Agents:-Factor(Consignor), Broker, Commission Agent, Auctioneer Creation by-(1)Agency by Express Agreement (2)Agency by Implication(Estoppel,Holding out, Necessity) (3)Agency By Ratification

Question for you…?????? Agent’s Duty…and Rights…     

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to act according to principal to render accounts,not to delegate not to set up adverse title Not to deal with his own account To communicate,Touse skill and diligence To be remunerated, To retain, To lien To be indemnified against loss for acts done on good faiths

Termination of Agency…  By Act of PARTIES:-

1-agreement between the Parties 2-revocation of Authority by Principal 3-renunciation by the agent  By Operation of LAW:1-Completion of Business 2-Death 3-Destruction of Subject matter 4-Lapse of time 5-Insolvency of the Principal 6-By Dissloution 7-By subsequent event rendering the agency unlawful

With the Termination of Agency…My Presentation too terminates… ………..THANKYOU… ………