Business laws

Table of content

Introduction

Need, Purpose, and Significance of Law

The Importance of Business Laws

PART I The Indian Contract Act, 1872

1 Establishing Contractual Relationships

Contract Defined 6 Contract, Agreement, Promise, and Offer

Essential Elements of Establishing a Valid Contract

Types of Contracts

Offer and Acceptance

Acceptance

Communication of Offer, Acceptance, and Their Revocation

2 Consideration and Legality of Object

Consideration Defined

Rules Governing Consideration

Stranger to a Contract’ and ‘Stranger to Consideration’

Contracts Without Consideration

Legality of Object

What is a Lawful Object?

When the Object or Consideration is Deemed to be Unlawful?

Effect of Partial Illegality

3 Competency of Parties

Competency to Contract

Minor

Persons of Unsound Mind

Persons Disqualified by Law

4 Free Consent

Consent Defined

Coercion

What Amounts to Inducing Coercion?

Undue Influence

Misrepresentation

Fraud

Loss of Right to Rescind a Contract

Mistake

5 Void Agreements and Contingent Contracts

Void Agreement Versus Void Contract

Void Agreement Versus Illegal Agreement

Agreements Expressly Declared Void

Restitution of Benefits Received Under a Void Agreement

Contingent Contracts

6 Performance and Discharge of Contract

Performance (of a Contract) Defined

Types of Performance

Essentials of a Valid Tender

By Whom Can a Contract Be Performed?

Who Can Demand Performance?

Time and Place for Performance

Performance of Reciprocal Promises

Discharge of a Contract

Assignment of a Contract

7 Remedies for Breach of Contract

Remedies Available to an Aggrieved Party

Rescission

Damages

Specific Performance

Injunction

Quantum Meruit

8 Special Contracts

Contracts of Indemnity and Guarantee

Contract of Indemnity

Contract of Guarantee

Contract of Indemnity and Contract of Guarantee Distinguished

Extent of Surety’s Liability

Kinds of Guarantee

Rights of Surety

Discharge of Surety

Contracts of Bailment and Pledge

Bailment

Termination of a Bailment

Lien

Finder of Lost Goods

Pledge

Rights and Duties of the Pawnee

Rights and Duties of the Pawnor

Contract of Agency

Scope and Extent of an Agent’s Authority

Rights of Agent

Duties of an Agent

Personal Liability of Agent to Third Party

Principal’s Liability for Agent’s Acts

Termination of Agency

Irrevocable Agency

PART II The Sale of Goods Act, 1930

9 Contract of Sale of Goods

Contract of Sale of Goods

Contract of Sale Defined

Goods: Meaning and Classification

Price

Conditions and Warranties

Conditions

Warranties

Condition and Warranty Distinguished

Doctrine of Caveat Emptor

Doctrine of Caveat Venditor

Transfer of Ownership and Delivery

Significance of Transfer of Ownership

Rules Regarding Transfer of Property

Rule Regarding Transfer of Title on Sale

Delivery of Goods

Unpaid Seller and his Rights

Rights of an Unpaid Seller

Auction Sale

PART III The Negotiable Instruments Act, 1881

10 Negotiable Instruments: An Introduction

Negotiable Instrument: Meaning and Definition

Kinds of Negotiable Instruments

Payment-in-Due-Course

Payment of Interest

Negotiable Instruments: Special Rules of Evidence

Negotiable Instruments: Rules of International Law

Holder and Holder-in-Due-Course

11 Negotiation and Assignment

Negotiation

Assignment

Negotiation and Assignment Distinguished

Modes of Negotiation

Negotiation Back

12 Presentment of Negotiable Instruments

Presentment for Acceptance

Presentment for Payment

13 Dishonour and Discharge of Negotiable Instruments

Dishonour by Non-acceptance

Dishonour by Non-payment

Dishonour of Cheque for Insufficiency of Funds in the Account: Consequence

Notice of Dishonour

Dishonoured Instrument: Noting and Protest

Discharge of a Negotiable Instrument

Discharge of Parties to an Instrument

Material Alteration

PART IV Other Business Legislations

14 The Limited Liability Partnership Act, 2008

Limited Liability Partnership: An Introduction

Genesis and Foundation of LLP in India

What is Limited Liability Partnership?

Rationale Behind Introduction of LLP in India

Structure of an LLP

Procedure of Formation of Limited Liability Partnership in India

LLP Versus Sole Proprietorship

LLP Versus Conventional Partnership

LLP Versus Joint Stock Company

LLP: Gateway to Greater FDI

Liabilities of ‘Designated Partners’

Admission of New Partner

Rights and Duties of Partners

Whistleblowing

Winding Up and Dissolution of a Limited Liability Partnership

Annual Filing

15 The Information Technology Act, 2000

IT Act: Aim and Objectives

Scope of the Act

Major Concepts

Important Provisions

Attribution, Acknowledgment, and Despatch of Electronic Records

Secure Electronic Records and Secure Digital Signatures

Regulation of Certifying Authorities: Appointment of Controller and Other Officers

Digital Signature Certificates

Duties of Subscribers

Penalties and Adjudication

The Cyber Regulations Appellate Tribunal

Offences

Network Service Providers Not to Be Liable in Certain Cases

Miscellaneous Provisions

Appendix: Example Cases

Index

Business Laws is a comprehensive text on the subject to meet the venerable needs of B.Com. and BBA programmes offered by various universities and institutes across the country. The text has been tailored to match UGC-mandated CBCS curriculum of Business Laws of University of Delhi and Jamia Millia Islamia—a Central University by an Act of Parliament, two of the leading central universities of the country based in the national capital. The book aims to acquaint the readers with some key business legislations that govern business activities so as to facilitate them to take decisions in their working or professional lives that do not fail the test of the law of land. The legislations covered in this volume are: The Indian Contract Act, 1872; The Sale of Goods Act, 1930; The Negotiable Instruments Act, 1881; The Limited Liability Partnership Act, 2008; and The Information Technology Act, 2000.

The book has been written from an Indian perspective to elaborate on the core concepts of business laws in a logical, concise, and yet illustrative manner. Landmark legal cases supplement and illustrate technical aspects of the subject matter. Pedagogical features such as learning objectives, side-bars defining key terms, end-of-chapter summary, objective-type questions, caselets, review questions in addition to a comprehensive set of case studies make the teaching and learning of business laws engaging and enriching.