Business Law - Class Notes 1cy5q

BUSINESS LAW 1) Introduction & importance 2) Portion – a quick review 6 modules. 1. Indian contract act- created 1872. Legal obligation. Only covers obligation a. What should be the nature of an offer to make it legal & binding? Clear and accurate & conditions. b. Evocation of offer: till the offer of acceptance hasn’t reached the offerer, you can send notice of evocation. i. Offer + acceptance = agreement ii. Agreement + not enforceable by law = void agreement iii. Agreement + enforceable by law = contract iv. Agreement + enforceable at the option of one of the parties = voidable (by 1 party only) agreement (eg: pay money by certain date and time). c. What makes an agreement valid? 2. Sale of goods act: 1930. became essential as indian contract act couldn’t cover the selling; it was not specific. a. It has summary trial which ICA didn’t have. Pay up in a certain amount of days. Property of buyer is attached to the agreement in case if inability to pay. Person is liable to be arrested. 3. NI Act: 1881. negotiable instruments act. How to pay & receive money. NI are promissory note. There are 4 types of docs of payment – promissory note, bill of exchange, cheque, hundis. They are docs by which ownership is transferred from a person to another. They are equivalent to money. Explain the nature of NI. Bill of exchange – foreign & local. Dishonour of cheque – what to do and what not to do? 4. Indian companies act: sole owners, partnerships, company (diff types), govt company – adv & disadv. each ones legal implications. Type of biz depends upon resources reqd. (15 steps) how to form a company . amendment of 2013 – have to study the old & new law. Give 10 amendments given in the 2013 amendment of IC act. Articles of associations. Prospectus – invitation to subscribe to invest in the company. Memorandum & capital. Duties & liabilities of director. How to liquidate the company. 5. Partnership act: limited liability partnership. Rules governing them. When a partner can resign. How much goodwill does a partner have to bring. outgoing partner – his liabilities. t (all partners are liable) & several (1 partner contributes only a certain amount different from that of the other partners) liability. what conditions are required for a partner to retire. Rights & duties of partner. 6. IPR (intellectual property rights): novaritis’ blood cancer capsule was copied (Cipla) in mumbai for rs. 20 when sold by them for 20k. DOUBLE check this story. Registration of invention & books. 3) Books Some time/exam: rishabh publications, vipuls (basic), b.com, m.com – mercantile law, University book of solutions All the time/ love me long time/ramayana: N.D. Kapoor – mercantile law

4) Evaluation: 70/30 30: attendance (5), mid term (10), mcq (5), presentation (5), orals (5) – his minimum is 26 which means you are a LOSERRRR Final (70): HE WILL BE CHECKING NOTEBOOKS TO SEE IF WE HAVE ATYPE (25 QUES), B TYPE (10 QUEST), C TYPE (5 QUEST). 40 questions total. Handwritten only. Cant change the ink or handwriting O.o DON’T FUCK AROUND. HE MEANS BUSINESS!! CHUT IS C.A. AND C.S.!!!!!! He also looks at HANDWRITING A TYPE: 1 PAGE EACH B TYPE: 2 PAGES EACH C TYPE: 1 PAGE EACH

Chap 1: what is law? Features, sources, uses, limitations Parliament creates law. Explain voidable, void and valid contracts. Offer + acceptance = agreement Agreement + not enforceable by law = void agreement Agreement + enforceable by law = contract Agreement + enforceable at the option of one of the parties = voidable (by 1 party only) agreement (eg: pay money by certain date and time). All agreements are not contracts, but all contracts are agreements. Explain. (5 mks) Agreement + enforceability = contract If the person has been appointed a guardian, they become a major at 21 yrs.

There are 12 factors that make an agreement/contract enforceable. 1. Free consent agreement 2. An agreement in restraint of trade or vocation – grocer cant be lawyer 3. Consideration – what you get in return for services o Exceptions: gifts, charity 4. Capacity of the party: an agreement w/ a minor is void. But valid for food, shelter, clothing (supply of necessities of life) even if the minor agrees to pay a certain amount. Explain minors contract. Whether it is valid or void (10 mks) Breach of contract Remedies: need to add more 1) Remedy of performance: File a case against the person refusing to sell. 2) Specific performance: has to sell to that person only. Has to do it. 3) Injunction – cant sell to anyone else till the case is solved. Restraining. Stay order.

Make a new agreement What is unpaid seller? Remedies available to them. Caveat emptor. Buyer beware. Difference between agreement to sell and a sale.