Business Law

(1)

Business Law

(2)

II

ntroduction

What is business?

((BBuussiinneessss iiss aass oolldd aass cciivviilliizzaattiioonn.. OOvveerr tthhee p

peerriioodd ooff ttiimmee iitt hhaass ggaaiinneedd eennoorrmmoouuss ppoowweer r ove

overr customecustomers/employrs/employees/sharehoees/shareholders)lders)

Environment of Business

Factors Constituting the Business

Environment

(3)

M

eaning & Nature of Law

What is Law?

( Legally Accepted Ways)( Legally Accepted Ways)

Law to ; Law to ; a a)) A A CCiittiizzeenn b b)) A A LLaawwyyeer r c

c)) A A LLeeggiissllaattoor r d

d)) A A JJuuddggee

³

³AA sseett ooff rruulleess ddeerriivveedd bbyy tthhee SSttaattee ttoo rreegguullaattee tthhee ccoonndduucctt oof f iittss ppeeooppllee,, rreeccooggnniizzeedd bbyy tthhee SSttaattee aanndd eennffoorrcceedd bbyy iitt oonn iittss pe

peopopllee tteerrmmeedd aass LaLaw´w´ ³

³BBuussiinneessss LLaaww rreepprreesseennttss aallll tthhoossee lleeggaall rruulleess wwhhiicchh aarree co

connnnecectetedd wiwithth TrTradade,e, IIndndusustrtryy && CoCommmmerercece´´

N

Na

attu

urre

e o

off L

La

aw

w ----

ChChaangngiingng (N(Noonn StStaatiticc))

O

(4)

Characte

Characteristics

ristics of

of Law

Law

A body of rules A body of rules

For the guidance and conduct of persons For the guidance and conduct of persons

IImposedmposed

Enforced by the executive Enforced by the executive Presupposes a State

Presupposes a State

Contents are non-static Contents are non-static

Develop Social Order & Compel Social Develop Social Order & Compel Social

M

Member to remain in order ember to remain in order

Serves Social/Political/Economic purpose Serves Social/Political/Economic purpose Law &

Law & MMoralityorality

³ignorantia juris non excusat´ ³ignorantia juris non excusat´

(5)

Classifications of Law

Public Law / Private Law

Criminal Law / Civil Law

Substantive Law / Procedural Law

II

nternational Law /

MM

unicipal Law

Public

(6)

Sources of Business Law

English

MM

ercantile Law

Business Customs & Usages

Statute Law

Judicial Decisions of Higher Courts /

System of Precedents

(7)

Law

Law of

of Contract

Contract

³³

T

Th

he

e lla

aw

w o

off c

co

on

nttrra

ac

ctt iis

s tth

ha

att b

brra

an

nc

ch

h o

off lla

aw

w

wh

hiic

ch

h d

de

ette

errm

miin

ne

es

s tth

he

e c

ciirrc

cu

um

ms

stta

an

nc

ce

es

s iin

n

w

wh

hiic

ch

h p

prro

om

miis

se

es

s m

ma

ad

de

e b

by

y tth

he

e p

pa

arrttiie

es

s tto

o

a

a c

co

on

nttrra

ac

ctt s

sh

ha

allll b

be

e lle

eg

ga

alllly

y b

biin

nd

diin

ng

g o

on

n

them.

II

tts

s rru

ulle

es

s d

de

effiin

ne

e tth

he

e rre

em

me

ed

diie

es

s tth

ha

att

a

arre

e a

av

va

aiilla

ab

blle

e iin

n c

co

ou

urrtt o

off lla

aw

w a

ag

ga

aiin

ns

stt a

a

p

pe

errs

so

on

n w

wh

ho

o ffa

aiills

s tto

o p

pe

errffo

orrm

m h

hiis

s//h

he

er

r

c

co

on

nttrra

ac

ctt a

an

nd

d c

co

on

nd

diittiio

on

ns

s u

un

nd

de

err w

wh

hiic

ch

h

tth

he

e rre

em

me

edi

die

es

s a

arre

e a

av

va

aiilla

ab

ble

le´

´

(8)

Nature of

II

ndian

ndian Contract

Contract Act,

Act, 1872

1872

Provides for remedies against failure Provides for remedies against failure

The conditions under which remedies are The conditions under which remedies are available

available

Ensures realization of reasonable expectation of Ensures realization of reasonable expectation of the parties

the parties

Not as exhaustive act (deals with the general Not as exhaustive act (deals with the general principles of law of contract and some special principles of law of contract and some special contracts only)

contracts only)

Doesn¶t lay down limits &

Doesn¶t lay down limits & duties rather createduties rather create limiting principles

limiting principles The act is neither

The act is neither the whole law agreements nor the whole law agreements nor whole law of obligations

whole law of obligations

jus in rem v/s jus in personem (privity of jus in rem v/s jus in personem (privity of

contract) contract)

(9)

Agreement & Contract

³A contract is an agreement made

between two or parties which the law

will enforce´

-- Section 2 (h)Section 2 (h)

Agreement = Offer + Acceptance >>

Promise (Promisee & Promisor)

Consensus ad idem

Legal Obligation should be created

(10)

What is a Contract ?

An Agreement An Agreement Enforceable by law Enforceable by law M

Made between atleast two partiesade between atleast two parties

By which rights are acquired by one, & By which rights are acquired by one, & Obligations are created on the part of Obligations are created on the part of

another another

And on failure, the other party has a remedy. And on failure, the other party has a remedy.

(11)

AGREEMENT & ENFORCEABILITY

Every promise and Every promise and very set of promises very set of promises

forming forming consideration for consideration for each other. each other. Enforce by law Enforce by law

³All agreements are not ³All agreements are not

contracts, but all contracts, but all

contracts are contracts are agreements´ agreements´

(12)

Essential Elements of a Valid

Contract

Of

Offeferr && AAcccceepptatancncee

IInntteennttiioonn ttoo ccrreeaattee aa lleeggaall rreellaattiioonnsshhiipp L

Laawwffuull ccoonnssiiddeerraattiioonn ±± (advantage/benefits(advantage/benefits m

moovviinngg ttoo && ffrroomm -- bbeettwweeeenn tthhee ttwwoo ppaarrttiieess))

C

Caappaacciityty ((CCoommppeetteenncycy)) ooff PPaarrttiieess ±± (age/sound(age/sound mi

mindnd/n/notot didisqsquaualilififieded toto enenteter)r)

F

Frreeee && GGeennuuiinnee ccoonnsseenntt ooff tthhee ppaarrttiieess ±±

((uunndduuee iinnfflluueennccee,, ffrraauudd,, mmiissrreepprreesseennttaattiioonn mmaayy c

caauussee aabbsseennccee ooff ffrreeee ccoonnsseenntt))

La

Lawfuwfull ObObjejectctss

M

Muusstt nnoott hhaavvee bbeeeenn eexxpprreessssllyy ddeeccllaarreedd VVooiidd Ce

Cerrtatainintyty && popossssibibililitityy ofof peperfrforormmaancncee Leg

(13)

Classification of Contract

Classification as per Validity

(void/voidable/illegal/unforceable) (void/voidable/illegal/unforceable)

Void A

Void Agreement &

greement & Void Contract

Void Contract

Classification as per formation

(Express/

(Express/IImplied/Quasi)mplied/Quasi)

Classification as per performance

(Executed/Executory/Unilateral-Executed (Executed/Executory/Unilateral-Executed Cons

Considerideratioation /Biln /Bilaterateral ±al ± ExecExecutorutoryy Consideration)

(14)

Offer & Acceptance

³

³A

A p

pe

errs

so

on

n iis

s s

sa

aiid

d tto

o h

ha

av

ve

e m

ma

ad

de

e a

an

n

o

offffe

err//p

prro

op

po

os

sa

all,,

w

wh

he

en

n

h

he

e

³

³s

siig

gn

niiffiie

es

s

tto

o

a

an

no

otth

he

err h

hiis

s w

wiilllliin

ng

gn

ne

es

ss

s ³

³tto

o d

do

o´

´ o

orr ³

³n

no

ott tto

o

d

do

o´

´ ((ii..e

e.. a

ab

bs

stta

aiin

n ffrro

om

m d

do

oiin

ng

g)) a

an

ny

ytth

hiin

ng

g,,

w

wiitth

h a

a v

viie

ew

w tto

o o

ob

btta

aiin

niin

ng

g tth

he

e a

as

sc

ce

en

ntt o

off tth

ha

att

o

otth

he

err tto

o s

su

uc

ch

h a

ac

ctt o

orr a

ab

bs

sttiin

ne

en

nc

ce

e´

´

±

± S

Se

ec

cttiio

on

n 2

2 ((a

a))

Offerer/Proposer/Promisor

Offeree/Proposee/Promisee/Acceptor

(15)

Of

Offe

fer -

r - Le

Lega

gal

l Ru

Rule

les

s

O

Offffeerr mmuusstt bbee ssuucchh tthhaatt iiss ccaappaabbllee ttoo bbee a

acccceepptteedd iinn llaaww aanndd ggiivveess rriissee ttoo lleeggaall relationship

relationship T

Teerrmmss ooff ooffffeerr mmuusstt bbee ddeeffiinniittee,, uunnaammbbiigguuoouuss a

anndd nnoott lloooossee && vvaagguuee Of

Offeferr mmusustt bebe ccoommmmununicicaatetedd A

Ann ooffffeerr mmuusstt bbee ddiissttiinngguuiisshheedd ffrroomm ((ii)) aann iinnvviittaattiioonn ttoo mmaakkee aann ooffffeer r

((iiii)) ddeecclalarraattioionn ooff iinntteennttioionn ttoo ooffffeer r O

Offffeerr mmuusstt bbee mmaaddee wwiitthh aa vviieeww ttoo oobbttaaiinniinngg th

thee aasscceentnt O

Offffeerr sshhoouulldd nnoott ccoonnttaaiinn aa tteerrmm tthhee nnoon n--c

coommpplliiaannccee ooff wwhhiicchh mmaayy bbee aassssuummeedd ttoo am

(16)

Acceptance & Legal Rules

Acceptance is the act of assenting by the Acceptance is the act of assenting by the Offeree to the offeror

Offeree to the offeror

Acceptance may be express OR implied Acceptance may be express OR implied Who can accept? (only the Offeree)

Who can accept? (only the Offeree)

Acceptance must be legal & unqualified Acceptance must be legal & unqualified

IIt must be communicated to the offeror t must be communicated to the offeror

IIt must be according to the mode prescribedt must be according to the mode prescribed

IIt must be given wt must be given within a reasonable timeithin a reasonable time

Showing intention to fulfil the terms of promise Showing intention to fulfil the terms of promise

IIt cannot be implied by silence (mere mentalt cannot be implied by silence (mere mental acceptance is no acceptance)

acceptance is no acceptance)

M

(17)

Revocation or Lapse of Offer

By Communication of Revocation By Communication of Revocation

Death of insanity of either party before Death of insanity of either party before acceptance

acceptance

By lapse of time (if not accepted within the By lapse of time (if not accepted within the prescribed time)

prescribed time)

Non fulfillment of specific condition Non fulfillment of specific condition

IIf a counter offer is madef a counter offer is made

IIf the acceptance is not according to thef the acceptance is not according to the

prescribed mode and the Offeree is informed prescribed mode and the Offeree is informed Revocation & Rejection

(18)

Completion of Communication

Offer or

Offer or AcceptaAcceptancence OFFER :

OFFER : when it comes towhen it comes to the knowledge of the the knowledge of the Offeree Offeree ACCEPTANCE :

ACCEPTANCE : (i) As(i) As against the offeror : when against the offeror : when putted into course of putted into course of transmission (out of transmission (out of acceptors¶ power) acceptors¶ power) (ii) As against the acceptor : (ii) As against the acceptor : when it comes to the when it comes to the knowledge of the offeror knowledge of the offeror

Revocation of Offer or Revocation of Offer or

Acceptance Acceptance ((ii)) AAs s aaggaaiinnsst t tthhee

person who makes it person who makes it --

--when putted into course when putted into course of transmission. of transmission. ((iiii)) AAs s aaggaaiinnsst t tthhee person to whom it is person to whom it is made

made ---- when it comes towhen it comes to

his knowledge his knowledge

(19)

Consideration

When A promises to do µsomething¶ A must get When A promises to do µsomething¶ A must get µsom

µsomethiething¶ in retng¶ in return ±urn ± this sothis sometmething is knohing is known aswn as µconsideration¶

µconsideration¶ (Affirmative Act / Abstinence / Promise)(Affirmative Act / Abstinence / Promise)

IIt must move at the desire of the promisor t must move at the desire of the promisor

IIt may move from promisee or any other persont may move from promisee or any other person

IIt may be act, abstinence, forbearance or promiset may be act, abstinence, forbearance or promise

IIt may be past, present, futuret may be past, present, future Need not be adequate

Need not be adequate

IIt must be real and not illusoryt must be real and not illusory

IIt must not be something which the promisor ist must not be something which the promisor is not already bound to do

not already bound to do

IIt must not be illegal / immoralt must not be illegal / immoral Stranger to the Contract

(20)

Contract without Consideration

(Exceptions)

Love & Affection [Sec 25 (1)]

---- A registeredA registered

agreement between near relatives based on

agreement between near relatives based on naturalnatural love & affection is enforceable.

love & affection is enforceable.

Compensation for Voluntary Services [25

(2)]

Promise to pay a time barred debt

Promise to pay a time barred debt [25 (3)]

[25 (3)]

Completed gift [Expl. 1 to Sec. 25]

Agency [Sec. 185]

Charitable subscription

(21)

Capacity to Contract

A

As

s p

pe

err S

Se

ec

c.. 1

10 0 a

an

n a

ag

grre

ee

em

me

en

ntt b

be

ec

co

om

me

es

s a

a

c

co

on

nttrra

ac

ctt iiff iitt iis

s e

en

ntte

erre

ed

d iin

ntto

o b

be

ettw

we

ee

en

n tth

he

e

p

pa

arrttiie

es

s c

com

ompe

pette

en

ntt tto

o c

co

ont

ntrra

ac

ctt..

A

As

s S

Se

ec

c.. 1

11 1 d

de

ec

clla

arre

es

s ffo

ollllo

ow

wiin

ng

g p

pe

errs

so

on

ns

s tto

o

b

be

e in

inc

co

om

mp

pe

ette

en

ntt tto

o c

con

ontr

tra

ac

ctt;;

a)

MM

inors

b

b)) P

Pe

errs

so

on

ns

s o

off u

un

ns

so

ou

un

nd

d m

miin

nd

d

c

c))

P

Pe

errs

so

on

ns

s

d

diis

sq

qu

ua

alliiffiie

ed

d

b

by

y

ffrro

om

m

contracting

A

Alliie

en

n E

En

ne

em

miie

es

s // C

Co

orrp

po

orra

attiio

on

ns

s //

II

n

ns

so

ollv

ve

en

ntt //

Convicts

(22)

Free Consent

S

Se

ec

c.. 1

13 3 ³

³ttw

wo

o o

orr m

mo

orre

e p

pe

errs

so

on

ns

s a

arre

e s

sa

aiid

d

tto

o b

be

e c

co

on

ns

se

en

ntte

ed

d w

wh

he

en

n tth

he

ey

y a

ag

grre

ee

e u

up

po

on

n

tth

he

e s

sa

am

me

e tth

hiin

ng

g iin

n tth

he

e s

sa

am

me

e s

se

en

ns

se

e´

´

A

A c

co

on

ns

se

en

ntt iis

s s

sa

aiid

d tto

o b

be

e ffrre

ee

e w

wh

he

en

n iitt iis

s

n

no

ott c

ca

au

us

se

ed

d b

by

y;;

a

a)) c

co

oe

errc

ciio

on

n ±

± s

se

ec

c 1

15 5;;

b

b)) u

un

nd

du

ue

e iin

nffllu

ue

en

nc

ce

e ±

± s

se

ec

c 1

16 6;;

c

c)) ffrra

au

ud

d ±

± s

se

ec

c 1

17 7;;

d

d)) m

miis

srre

ep

prre

es

se

en

ntta

attiio

on

n ±

± s

se

ec

c 1

18 8;;

e

(23)

Legality of Object

Sec 23 declares that object & consideration

of a contract should be lawful

Consideration & object could be

unlawful:-a)

a)

II

f it is forbid

f it is forbidden by law

den by law

b)

II

f it is of such a nature that, if permitted, it

f it is of such a n

ature that, if permitted, it

would defeat the provisions of any law

c)

II

f it is fraudulent

d)

II

f it involves or implies injury to the

person or property of another

e)

II

f the court regards it

f the court regards it as immoral

as immoral

f)

(24)

Void Agreements

The following agreements have been expressly The following agreements have been expressly declared to be void by the Contract Act;

declared to be void by the Contract Act;

Agreements by incompetent parties-(Sec11) Agreements by incompetent parties-(Sec11) Agreements made under a mutual mistake of Agreements made under a mutual mistake of fact (Sec 20)

fact (Sec 20)

Agreements, the consideration or object of Agreements, the consideration or object of which is unlawful (Sec 24)

which is unlawful (Sec 24)

Agreements made without consideration (Sec Agreements made without consideration (Sec 25)

25)

Agreements, meaning of which is uncertain Agreements, meaning of which is uncertain (Sec 29)

(Sec 29)

Agreements to do impossible acts (Sec 56) Agreements to do impossible acts (Sec 56)

(25)

Contingent Contracts

Contract may be Absolute OR Contingent Contract may be Absolute OR Contingent

Absolute contract is one in which the promisor Absolute contract is one in which the promisor binds himself to performance in any event

binds himself to performance in any event unconditionally

unconditionally

A contingent contract is a contract to do or not A contingent contract is a contract to do or not to do something, if some event, collateral to

to do something, if some event, collateral to

such contract, does or does not happen (Sec 31) such contract, does or does not happen (Sec 31) 3 essential characteristics of Contingent.

3 essential characteristics of Contingent. Contract;

Contract;

i)

i) IIts performance depends upon happening or non-happening of ts performance depends upon happening or non-happening of some event in future

some event in future

iiii)) TThhe e eevveennt mt muusst bt be ue unncceerrttaaiinn iii

(26)

Performance of Contract

Sec 38 says if a promisor has made an

Sec 38 says if a promisor has made an offer tooffer to

perform as per the contract and the promisee does perform as per the contract and the promisee does not accept that, the promisor is not responsible for not accept that, the promisor is not responsible for non performance.

non performance.

By whom the contract must

By whom the contract must be performed;be performed; Promisor himself, Ag

Promisor himself, Agent, ent, Legal Rep., ThirdLegal Rep., Third Person, Joint Promisors.

Person, Joint Promisors.

Devolution of joint liabilities (Sec 42 to 44) (When 2 Devolution of joint liabilities (Sec 42 to 44) (When 2 or more Promisors have made the promise, they are or more Promisors have made the promise, they are known as the joint promisors)

known as the joint promisors)

All of them must fulfil the promise jointly (42), All of them must fulfil the promise jointly (42),

IIf not, 43 comes into effect thereby;f not, 43 comes into effect thereby;

liability of joint promisors is joint & several, a joint liability of joint promisors is joint & several, a joint promisor may claim contribution, sharing of loss promisor may claim contribution, sharing of loss arising from default of one (43 para 1,2,3)

(27)

Discharge of Contract

D

Diis

sc

ch

ha

arrg

ge

e

o

off

co

c

on

ntta

ac

ctt

m

me

ea

an

ns

s

tte

errm

miin

na

attiio

on

n

o

off

tth

he

e

c

co

on

nttrra

ac

cttu

ua

all

rre

ella

attiio

on

ns

sh

hiip

p b

be

ettw

we

ee

en

n tth

he

e p

pa

arrttiie

es

s.. A

A

c

co

on

nttrra

ac

ctt m

ma

ay

y b

be

e d

diis

sc

ch

ha

arrg

ge

ed

d b

by

y;;

a

a)) P

Pe

errffo

orrm

ma

an

nc

ce

e

b)

b) A

Agr

gre

eem

emen

ent o

t of

f C

Con

ons

sen

entt

c)

II

mpossibility

d

d)) L

La

ap

ps

se

e o

of

f ttiim

me

e

e)) O

Op

pe

erra

attiio

on

n o

of l

f la

aw

w

ff)) B

Brre

ea

ac

ch

h o

of

f c

co

on

nttrra

ac

ctt

(28)

Remedies for

Breach of Contract

A remedy is the means given by law for the A remedy is the means given by law for the enforcement of right

enforcement of right

When a there is breach of contract, the When a there is breach of contract, the injured party has one or more of the

injured party has one or more of the following

following remedieremedies;s; 1

1.. RReesscciissssiioon n oof f ccoonnttrraacctt 2

2.. SSuuiit t ffoor r ddaammaaggeess 3

3.. SSuuiit t uuppoon n qquuaannttuum m mmeerruuiitt 4.

4. SuSuit it fofor sr spepecicifific pc pererfoformrmanance ce of of ththee contract

contract 5

(29)

Quasi Contracts

Law

Law of Quasof Quasi Conti Contract ract ±± Law oLaw of Restf Restitutiitutionon

As a matter of fact Quasi Contract is not a As a matter of fact Quasi Contract is not a contract at all.

contract at all. IIt is rather created by Law.t is rather created by Law.

IIt is an obligation which the law creates in thet is an obligation which the law creates in the absence of any agreement.

absence of any agreement. Sec. 68 -72 deals w

Sec. 68 -72 deals with following kiith following kinds of nds of quasi- quasi-contractual obligations;

contractual obligations; 1

1.. SSuupppplly y oof f nneecceessssaarriieess 2.

2. PaPayymmenent bt by y an an ininteterereststed ed pepersrsonon 3.

3. ObObliligagatition on to to papay fy for or nonon-n-grgratatuiuitotousus 4.

4. ReRespspononsisibibililitities es of of fifindnder er of of gogoododss 5.

5. MMistake or Coersionistake or Coersion 6.

6. QuQuanantutum m memeruruit it >> >> µaµas ms mucuch ah as es ernrneded¶¶ 7.

7. CoCompmpenensasatition on fofor far faililurure to e to didiscschahargrge obe obliligagatitionon created by quasi contracts

(30)

Contracts of

II

ndemnity &

Guarantee

Chapter V

Chapter VIIIIII (s(secec. 12. 124-4- 14147) o7) of f IIndian Contract Actndian Contract Act 1872 covers these provisions

1872 covers these provisions

A contract by which one party promises to save A contract by which one party promises to save the other from loss caused to him by the conduct the other from loss caused to him by the conduct fo the promisor himself, or by the conduct of any fo the promisor himself, or by the conduct of any other person, is called a µcontract of indemnity¶. other person, is called a µcontract of indemnity¶. (sec 124)

(sec 124)

Promisor >> indemnifier & the promisee >> Promisor >> indemnifier & the promisee >> indemnity holder

indemnity holder

Rights of indemnity holder when sued (sec 125) Rights of indemnity holder when sued (sec 125) (all damages/all expenses-costs/all sums)

(all damages/all expenses-costs/all sums) Rights of indemnifier (the act is silent)

(31)

Guarantee

(Sec. 126) (Sec. 126)

A

A ccoonnttrraacctt ooff gguuaarraanntteeee ooff aa ccoonnttrraacctt ttoo ppeerrffoorrmm tthhee pprroommiissee oorr ddiisscchhaarrggee tthhee lliiaabbiilliittyy ooff aa tthhiirrdd p

peerrssoonn iinn ccaassee ooff hhiiss ddeeffaauulltt.. T

Thhee ppeerrssoonn whwhoo ggiivveess ±± µµssuurreettyy¶¶ Wh

Whoo ddeeffaauullttss ±± µµpprriinncciippaall ddeebbttoorr¶¶ T

Too wwhhoomm iitt iiss ggiivveenn ±± µµccrreeddiittoorr¶¶

IItt mmaayy bbee oorraall oorr wwrriitttteenn;; eexxpprreessss oorr iimmpplliieedd Ess

Essenentiatiall feafeaturtureses;; C

Coonnccuurrrreennccee//PPrriimmaarryy && SeSeccoonnddaarryy lliiaabbiilliittyy//EEsssseennttiiaallss ooff aa VVaalliidd CCoonnttrraacctt ((iinn ccaassee oof f p

prriinncciippaall ddeebbttoorr bbeeiinngg aa mmiinnoorr,, tthhee ssuurreettyy iiss re

(32)

Contract of

II

ndemnity

v/s

Contract of Guarantee

Co CoII >>>> CCooGG T

Twwo o ppaarrttiieess >>>> TThhrreee e PPaarrttiieess L

Liiaabbiilliitty y iis s PPrriimmaarryy >>>> LiiaL abbiilliitty y iis s SSeeccoonnddaarryy O

Onnlly y oonne e CCoonnttrraacctt >>>> TToottaal l tthhrreee e ccoonnttrraaccttss

IInnddeemmnniiffiieer r nnoot t ttoo >>>> SSuurreetty y tto o ggiivve e gguuaarraanntteeee Act

Act on on the the request request upon upon debtor¶s debtor¶s requestrequest Of

Of IIndemnifiedndemnified L

Liiaabbiilliitty y aarriissees s oonnllyy >>>> DDeebbtt//dduutty y aallrreeaaddy y eexxiisstts s tthhee

IIn n case case of of performance performance of of which which hashas C

Coonnttiiggeennccyy bbeeeen n gguuaarraanntteeeed d bby y tthhee surety

(33)

A few features

Nature of surety¶s liability

(coextensive/limitation)

K

Kiin

nd

ds

s o

off g

gu

ua

arra

an

ntte

ee

e ((s

sp

pe

ec

ciiffiic

c // c

co

on

nttiin

nu

uiin

ng

g))

R

Re

ev

vo

oc

ca

attiio

on

n

o

off

C

Co

on

nttiin

nu

uiin

ng

g

G

Gu

ua

arra

an

ntte

ee

e

(no

(noti

tice

ce/d

/dea

eath

th et

etc.

c.))

D

Diis

sc

ch

ha

arrg

ge

e o

off S

Su

urre

etty

y ((s

su

urre

etty

y¶¶s

s lliia

ab

biilliitty

y

ends)

(rev

(34)

Bailment

Ch.

Ch. IXIX (s(sec ec 14148 -8 - 18181) 1) of of IIndian Contracts Act 1872ndian Contracts Act 1872 µBailment¶ means µdelivery of goods¶ by one

µBailment¶ means µdelivery of goods¶ by one person to another for some purpose upon a person to another for some purpose upon a contract, that they shall, when the purpose is contract, that they shall, when the purpose is

accomplished be returned or disposed off as per accomplished be returned or disposed off as per the directions given by the person delivering

the directions given by the person delivering them. One who delivers called µBailor¶ and to them. One who delivers called µBailor¶ and to whom delivered called µBailee¶. >>> (sec. 148) whom delivered called µBailee¶. >>> (sec. 148)

Duties of Bailee (take care of bailed goods/not to Duties of Bailee (take care of bailed goods/not to make unauthorise use/exclusive benefits to the make unauthorise use/exclusive benefits to the bailee/n

bailee/not to mix ot to mix the bailed goods wthe bailed goods with his own/toith his own/to return the goods)

return the goods)

Duties of Bailor (disclose known faults/bear Duties of Bailor (disclose known faults/bear

extraordinary expenses of the bailee/receive back extraordinary expenses of the bailee/receive back the goods/indemnify bailee in case of premature the goods/indemnify bailee in case of premature termination)

(35)

Cntg. >>>

Law relating to lien;

L

Liie

en

n m

me

ea

an

ns

s rriig

gh

htt o

off a

a p

pe

errs

so

on

n tto

o rre

etta

aiin

n

p

po

os

ss

se

es

ss

siio

on

n o

off s

so

om

me

e g

go

oo

od

ds

s u

un

nttiill tth

he

e c

clla

aiim

ms

s

a

arre

e s

sa

attiis

sffiie

ed

d.. T

Th

he

es

se

e c

co

ou

ulld

d b

be

e o

off ttw

wo

o tty

yp

pe

es

s;;

i)

i) Particular

Particular Lien

Lien

&

ii) General

ii)

General Lien

Lien

((s

se

ec

c

1

17

70 0))

((s

se

ec

c

1

17

71 1))

O

On

nlly

y tth

ho

os

se

e g

go

oo

od

ds

s

Alll

A

l tth

he

e g

go

oo

od

ds

s w

wh

hiic

ch

h

A

Against

gainst which

which service

services

s

are

are in

in possession

possession

H

(36)

Pledge

Bailment of goods as

Bailment of goods as security for payment

security for payment

of a debt for

of a debt for performance of a promise is

performance of a promise is

called µpledge¶; in this case

The

The bailor

bailor is

is called

called >> pledger

>> pledger or

or pawnor

pawnor

The bailee is called >> pledgee or pawnee

(sec 172)

Pledge is bailment of good

Pledge is bailment of goods as security,

s as security,

bailment is for a purpose of any kind

II

n case of default, pawn

n case of default, pawnee may sell the

ee may sell the

pledged goods, bailee may either retain the

goods or sue for his charges

II

n case of pledge, the paw

n case of pledge, the pawnee cannot use

nee cannot use

the goods pledged, in case bailment bailee

may do so if

(37)

Contract of Agency

Ch.

Ch. XX (sec. 182-238) of (sec. 182-238) of IIndian Contract Act 1872ndian Contract Act 1872 An Agent is a person employed to do any act An Agent is a person employed to do any act for another, or to represent another in

for another, or to represent another in deal

dealings with ings with third pthird persoerson(s) ---n(s) --- [sec[sec. 182]. 182] Person who represent called ³Agent´

Person who represent called ³Agent´

Person who is represented called ³Principal´ Person who is represented called ³Principal´

Essentials of Agency Relationship; Essentials of Agency Relationship; 1.

1. AAgrgreeeemement bnt btntn. P. Pririncncipipal al anand td the he AAgegent (nt (nono consideration is necessary to create agency) consideration is necessary to create agency) &

& 2.

2. IIntention of the Agent to act on behalf of thentention of the Agent to act on behalf of the Principal

(38)

A few features

Creation of an

Creation of an A

Agency

gency

(Express Agreement/

(Express Agreement/IImpliedmplied Agreement/Ratification)

Agreement/Ratification)

Duties of Agent

(to carry out work undertaken as per (to carry out work undertaken as per instructions

instructions/to carry out /to carry out work with reasonablework with reasonable care,skill & dilligence/to render accounts to the care,skill & dilligence/to render accounts to the Principal/

Principal/not to deal on not to deal on his own account/to payhis own account/to pay sums received for the principal/to protect &

sums received for the principal/to protect &

preserve interest of the principal in case of his preserve interest of the principal in case of his death or insolvency/not to use the information death or insolvency/not to use the information obtained in the course of agency against the obtained in the course of agency against the principal/not to make secret/not to delegate principal/not to make secret/not to delegate authority

(39)

Sale

Sale of

of Goods

Goods Act

Act 1930

1930

Chapter V

Chapter VIIII of theof the IIndian Contracts Act 1872ndian Contracts Act 1872 (contained the provisions earlier)

(contained the provisions earlier)

Sale of goods is a contract whereby the seller Sale of goods is a contract whereby the seller transfers or agrees to transfer the property in transfers or agrees to transfer the property in goods to the buyer for a price.[sec. 4 (1)].

goods to the buyer for a price.[sec. 4 (1)]. Sale & Agreement to Sell

Sale & Agreement to Sell

Essentials of Contract of Sale (Two parties-Buyer Essentials of Contract of Sale (Two parties-Buyer & Seller, Goods, Price, Transfer of Property,

& Seller, Goods, Price, Transfer of Property, Essential elements of a valid contract)

Essential elements of a valid contract) Sale & Hire Purchase Agreement

Sale & Hire Purchase Agreement Sale & barter or exchange

Sale & barter or exchange Sale & bailment

Sale & bailment

Price here means the money consideration for a Price here means the money consideration for a sale of goods [sec 2 (10)]

sale of goods [sec 2 (10)]

Earnest (some tangible thing as a token) Earnest (some tangible thing as a token)

(40)

Negotiable

_II

nstrument Act 1881

A negotiable instrument means a promissory note, A negotiable instrument means a promissory note, bill

bill of of exchange or exchange or cheque paycheque payable able either to either to order order or to bearer. [sec 13]

or to bearer. [sec 13] A few Characteristics; A few Characteristics;

(freely transferable, title of holder free from all (freely transferable, title of holder free from all defects, recovery)

defects, recovery) Types;

Types;

i) negotiable by statute(promissory notes, bill of i) negotiable by statute(promissory notes, bill of exchange and cheques)

exchange and cheques)

ii)negotiable by custom or usage (Bankers draft or ii)negotiable by custom or usage (Bankers draft or pay order, hundis, delivery orders and railway

pay order, hundis, delivery orders and railway receipt for goods)

(41)

Notes, Bills and cheques

A

A pprroommiissssoorryy nnoottee iiss aann iinnssttrruummeenntt iinn wwrriittiinngg ((nnoott b

beeiinngg aa bbaannkk nnoottee oorr aa ccuurrrreennccyy nnoottee)) ccoonnttaaiinniinngg a

ann uunnccoonnddiittiioonnaall uunnddeerrttaakkiinngg,, ssiiggnneedd bbyy tthhee m

maakkeerr,, ttoo ppaayy aa cceerrttaaiinn ssuumm ooff mmoonneeyy nnllyy ttoo oorr ttoo tthhee oorrddeerr ooff cceerraaiinn ppeerrssoonn,, oorr ttoo tthhee bbeeaarreerr ooff tthhee iinnssttuurrmmeenntt [[sseecc 44]]

E

Elleemmeennttss ((WWrriittiinngg,, pprroommiissee ttoo ppaayy,, ddeeffiinniittee && u

unnccoonnddiittiioonnaall,, ssiiggnneedd bbyy tthhee mmaakkeerr,, ssiiggnneedd bbyy tthhee m

maakkeerr,, cceerrttaaiinn ppaarrttiieess,, cceerrttaaiinn ssuumm ooff mmoonneeyy,, p

prroommiissee ttoo ppaayy mmoonneeyy oonnllyy,, bbaannkk nnoottee oorr ccuurrrreennccyy n

noottee iiss nnoott aa pprroommiissssoorryy nnoottee--aass tthhoossee aarree mmoonneeyy iitstseellff,, ffoorrmmaalliittiieess lliikkee nnuummbbeerr,, ddaattee,, ppllaaccee eettcc..))

A

A bbiillll ooff eexxcchhaannggee iiss aann iinnssttrruummeenntt iinn wwrriittiinngg c

(42)

Contd«. Contd«.

m

ma

ak

ke

err,, d

diirre

ec

cttiin

ng

g a

a c

ce

errtta

aiin

n p

pe

errs

so

on

n tto

o p

pa

ay

y a

a

c

ce

errtta

aiin

n s

su

um

m o

off m

mo

on

ne

ey

y o

on

nlly

y tto

o,, o

orr tto

o tth

he

e

o

orrd

de

err o

off,, a

a c

ce

errtta

aiin

n p

pe

errs

so

on

n o

orr tto

o tth

he

e b

be

ea

arre

er

r

o

off tth

he

e iin

ns

sttrru

um

me

en

ntt [[s

se

ec

c 5

5]]

P

Pa

arrttiie

es

s tto

o tth

he

e b

biillll >

>>

> tth

hrre

ee

e ((d

drra

aw

we

err,,

dr

draw

awee

ee,, pa

pay

yee

ee))

E

Elle

em

me

en

ntts

s ((w

wrriittiin

ng

g,, c

co

on

ntta

aiin

n a

an

n o

orrd

de

err tto

o p

pa

ay

y,,

o

orrd

de

err

m

mu

us

stt

b

be

e

u

un

nd

diittiio

on

na

all,,

rre

eq

qu

uiirre

es

s

3

3 p

pa

arrttiie

es

s,, s

su

um

m p

pa

ay

ya

ab

blle

e m

mu

us

stt b

be

e c

ce

errtta

aiin

n))

A

A c

ch

he

eq

qu

ue

e iis

s a

a b

biillll o

off e

ex

xc

ch

ha

an

ng

ge

e d

drra

aw

wn

n u

up

po

on

n

a

a s

sp

pe

ec

ciiffiie

ed

d b

ba

an

nk

ke

err a

an

nd

d p

pa

ay

ya

ab

blle

e o

on

n d

de

em

ma

an

nd

d

[[s

se

ec

c 6

6]]

(43)

Dishonour of a Negotiable

II

nstrument

A

A bbiillll mmaayy ddiisshhoonnoouurreedd bbyy nnoonn--aacccceeppttaannccee((ssiinnccee o

onnllyy bbiillll rreeqquuiirreedd aacccceeppttaannccee)) oorr bbyy nnoonn ppaayymmeenntt.. A

A pprroommiissssoorryy nnoottee oorr aa cchheeqquuee aarree ddiisshhoonnoouurreedd b

byy nnoonn ppaayymmeenntt oonnllyy.. ((sseecc 9911 && 9922)) W

Whheenn aa nneeggoottiiaabbllee iinnssttrruummeenntt iiss ddiisshhoonnoouurreedd e

eiitthheerr bbyy nnoonn--aacccceeppttaannccee oorr nnoonn--ppaayymmeenntt,, tthhee h

hoollddeerr ooff tthhee iinnssttrruummeenntt mmuusstt ggiivvee nnoottiiccee ttoo aallll co

concencernerned.(d.(sesecc 9393)) N

Noottiiccee ooff ddiisshhoonnoouurr ccoouulldd bbee oorraall oorr wwrriitttteenn aanndd m

muusstt bbee sseenntt wiwitthhiinn aa rreeaassoonnaabbllee ttiimmee.. A

A ddrraawweerr ooff ddiisshhoonnoouurreedd cchheeqquuee sshhaallll bbee ddeeeemmeedd ttoo hhaavvee ccoommmmiitttteedd aann ooffffeennccee.. FFoorr wwhhiicchh wwiitthhoouutt p

prreejjuuddiiccee ttoo aannyy ootthheerr pprroovviissiioonn ooff tthhiiss aacctt,, bbee p

puunniisshheedd wwiitthh iimmpprriissoonnmmeenntt ffoorr aa tteerrmm wwhhiicchh mmaayy e

exxtteenndd ttoo oonnee yyeeaarr OORR wwiitthh aa ffiinnee wwhhiicchh eexxtteenndd ttoo ttwwiiccee tthhee aammoouunntt ooff tthhee cchheeqquuee OORR wwiitthh bbootthh

(44)

The Consumer Protection Act, 1986

The act seeks to provide better protection to The act seeks to provide better protection to consumers¶s rights. Such as rights to;

consumers¶s rights. Such as rights to; 1.

1. Be Be prprototececteted ad agagaininst mst mktktg. g. of of prprododucuctsts hazardous to life & property

hazardous to life & property 2.

2. Be Be ininfoformrmed ed ababouout tht the qe qltltyy, qty, qty, pte, ptencncyy, pur, puritityy,, standard and price of products against unfair standard and price of products against unfair trade practices

trade practices 3.

3. Be Be asassusurered ad accccesess to s to prprododucucts ts at cat comompepetitititivvee prices

prices 4.

4. Be Be hehearard ad and nd to to be be asassusurered thd that at ththe ce cononsusumemersrs¶¶ interest will receive due consideration

interest will receive due consideration 5.

5. SeSeek ek reredrdresessasal al agagaininst st ununfafair ir trtradade pe praractcticiceses 6

6.. CCoonnssuummeer er edduuccaattiioonn

The act provides for establishment of The act provides for establishment of

quasi- judicial machinery at district, state & centre level judicial machinery at district, state & centre level

for speedy & simple addressel. for speedy & simple addressel.

(45)

Disputes Redressal Agencies

Consumer Disputes Redressal Forum (The Consumer Disputes Redressal Forum (The Disc

Disctrictrict t ForuForum) m) --- [sec [sec 10 10 to to 15]15]

A person who is, or has been, or is qualified to be A person who is, or has been, or is qualified to be a District Judge, shall be its President

a District Judge, shall be its President

Two other members of proven track record (one of Two other members of proven track record (one of whom shall be woman)

whom shall be woman)

Term of office (5 yrs or 65 yrs of age whichever is Term of office (5 yrs or 65 yrs of age whichever is earlier)

earlier)

Jurisdiction : To entertain complaints where the Jurisdiction : To entertain complaints where the value of the products and the compensation, if value of the products and the compensation, if any, claimed do not exceed Rs.

(46)

500,000/-Consumer Disputes Redressal

Consumer Disputes Redressal

Commission

The State Commission [Sec 16 to 19]

A

A ppeerrssoonn wwhhoo iiss oorr hhaass bbeeeenn aa JJuuddggee ooff aa HHiigghh C

Coouurrtt,, sshhaallll bbee iittss PPrreessiiddeenntt >>>>SSttaattee GGoovvtt.. a

appppooiinnttss uunnddeerr ccoonnssuullttaattiioonn wiwitthh CCJJ ooff HHCC T

Teerrmm iiss 55 yyrrss oorr 6677 yyrrss ooff aaggee,, wwhhiicchheevveerr iiss eeaarrlliieer r J

Juurriissddiiccttiioonn:: 11.. >>55 llaacc bbuutt nnoott mmoorree tthhaann 2200 llaacc,, 2

2..AAppppeeaallss aaggaaiinnsstt tthhee oorrddeerr ooff DDiissttrriicctt FFoorruumm

N

Na

attiio

on

na

all C

Co

om

mm

miis

ss

siio

on

n [[S

Se

ec

c 2

20 0 tto

o 2

23 3]]

A

A ppeerrssoonn wwhhoo iiss oorr hhaass bbeeeenn aa JJuuddggee ooff SSuupprreemmee C

Coouurrtt,, sshhaallll bbee iittss PPrreessiiddeenntt>>>>CCeennttrraall GGoovvtt.. a

appppooiinnttss uunnddeerr ccoonnssuullttaattiioonn ooff CCJJ ooff SSCC T

Teerrmm 55 yyrrss oorr 7700 yyrrss ooff aaggee,, wwhhiicchheevveerr iiss eeaarrlliieer r A

Appppeeaall aaggaaiinnsstt NNaattiioonnaall CCoommmmiissssiioonn ccaann bbee ddoonnee iinn SSCC wwiitthhiinn 3300 ddaayyss

(47)

M

RTP Act 1969

The act aims at;

Preventing concentration of economic power Preventing concentration of economic power Prohibiting monopolistic trade practices

Prohibiting monopolistic trade practices

Prohibiting restrictive/unfair trade practices Prohibiting restrictive/unfair trade practices

Constitution of

MM

RTP Commission:

Sec 5 of the Act requires Central Govt. to Sec 5 of the Act requires Central Govt. to constitute a commission (

constitute a commission (MMRTPC) act mgmt.RTPC) act mgmt.

The commission will have a Chairman & min. 2 or The commission will have a Chairman & min. 2 or max. 8 members

max. 8 members

Term is 5 yrs, can be reappointed for 2

Term is 5 yrs, can be reappointed for 2ndnd term onlyterm only OR 65 yrs of age whichever is earlier

(48)

Powers of

_M

RTPC

Powers

Of a Civil Court

To enquiry and pass final order

To make enquiry & express opinion

To grant temporary injunction

To award compensation

To enforce orders of

MM

RTPC

To investigate whether the orders are being

implemented

To punish for contempt

To regulate the procedure

(49)

Foreign Exchange

_M

gmt. Act 1999

FE

FEMMA replaced FERA 1973 and came into being w.e.f.A replaced FERA 1973 and came into being w.e.f. June 1

June 1stst_{, 2000}_{, 2000}

A

Authorized

uthorized Person & its Duties:

Person & its Duties:

RB

RBII may, on an application made in thismay, on an application made in this

regard, authorize a person to deal in Forex regard, authorize a person to deal in Forex

Duties:

To comply with RB

To comply with RBII directiondirection To ensure compliance of FE

To ensure compliance of FEMMAA To produce books of accounts To produce books of accounts RB

RBII may issue instructions time to timemay issue instructions time to time RB

(50)

FE

_M

A

Contravention & Penalties:

Penalties Penalties

Enforcement of orders of Adjudicating Authority Enforcement of orders of Adjudicating Authority Power to compound contravention

Power to compound contravention

Adjudication & Appeal:

Adjudicating authority Adjudicating authority

Appeal to Special Director Appeal to Special Director Appeal to Appelate Tribunal Appeal to Appelate Tribunal

A

Appelate

ppelate Tribunal:

Tribunal:

Constitution/

Constitution/ChairpersChairperson on && MMembers/Termembers/Term (5yrs/65+62 yrs age bar respectively)

(51)

Powers of Tribunal and SD

Shall not be bound by the Code of Civil Shall not be bound by the Code of Civil Procedure

Procedure

They will have same powers as are vested in They will have same powers as are vested in a Civil Court

a Civil Court

Their order shall have same decree as that of Their order shall have same decree as that of a Civil Court

a Civil Court

All proceedings under these shall be deemed All proceedings under these shall be deemed to be judicial proceedings

to be judicial proceedings

Power to inter-bench transfer Power to inter-bench transfer

Appeal against their decision may be filed in Appeal against their decision may be filed in HC within 60 days of the receipt of such

HC within 60 days of the receipt of such decision.

(52)

II

nformation Technology Act, 2000

Digital Signature Digital Signature Electronic Governance Electronic Governance Certifying Authorities; Certifying Authorities; 1.

1. AAppppoiointntmement ont of Cf Conontrtrololleler & r & ototheher or offfficicererss 2

2.. FFuunnccttiioonns s oof f CCoonnttrroolllleer r 3

3.. CCoonnttrroolllleer r aas rs reeppoossiittoorryy 4.

4. LiLicecencnce e to to isissusue e didigigitatal l sisigngnataturure e cecertrtifificicatateses 5.

5. AApppplilicacatitionon/R/Renenewewalal/S/Sususpepensnsioion of Lin of Licecencncee 6

6.. PPowoweer r tto do deelelegagate te anand d ininvevesstitiggaatete

Penalties & Adjudication; Penalties & Adjudication;

1

1.. PPeennaalltty y ffoor r ddaammaaggee,, 2.

2. PePenanaltlty fy for or fafaililurure te to fo fururninish sh ininfoformrmatatioion,n, 3

3.. RReessiidduuaarry Py Peennaallttyy,, 4

(53)

Cy

Cyber

ber Regulations & Tribunal

Regulations & Tribunal

Establishment of tribunal (by center govt.) Establishment of tribunal (by center govt.)

Composition of tribunal (shall consist of only Composition of tribunal (shall consist of only one member termed as Presiding Officer)

one member termed as Presiding Officer)

Qualification & Terms of Presiding Officer (a HC Qualification & Terms of Presiding Officer (a HC Judge OR

Judge OR IIndian Legal Service Gradendian Legal Service Grade II officer officer for at least 3 yrs; term shall be for 5 yrs OR 65 for at least 3 yrs; term shall be for 5 yrs OR 65 yrs of age whichever is earlier)

yrs of age whichever is earlier) Resignation / Removal

Resignation / Removal

Procedure & Powers of the

Procedure & Powers of the TribunalTribunal

Civil Court not to have jurisdiction/Appeal to HC Civil Court not to have jurisdiction/Appeal to HC

(54)

The Patent Act 1957

((TThhee aacctt ddeessccrriibbeess tthhee pprroocceedduurree ffoorr ggrraanntt oof f p

paatteenntt aanndd pprrootteecctt hhiiss rriigghhttss aaggaaiinnsstt infringement)

infringement) A

Apppplilicacatitionon foforr PaPatetentnts:s: A

A ppaatteenntt aapppplliiccaattiioonn ccaann bbee mmaaddee bby

y--1

1.. AAnnyy ppeerrssoonn ccllaaiimmiinngg ttoo bbee tthhee ttrruuee aanndd ffiirrsstt iinnvveennttoorr ooff tthhee iinnvveennttiioonn 2

2.. AAnnyy ppeerrssoonn bbeeiinngg tthhee aassssiiggnneeee ooff tthhee aabboovvee ppeerrssoonn 3

3.. TThhee lleeggaall rreepp.. ooff aannyy ddeecceeaasseedd ppeerrssoonn,, wwhhoo iimmmmeeddiiaatteellyy bbeeffoorree hhiiss de

deaatthh wawass eennttiittlleedd ttoo mmaakkee ssucuchh aann aapppplliiccaattiionon

T

Thhee SSppeecciiffiiccaattiioonn [[sseecc 1100]]:: AA dedessccrriiptptiionon ofof tthehe iinnvveentntiionon iiss ca

calllleded ththee spespecicifificacatition.on.

Ex

Examamininatatioionn ofof AApppplilicacatitiononss Exclusive

Exclusive MMaarrkkeetitingng RiRighghtsts (A(Appppliliccaatitioonn && GrGraantnt)) O

Oppppoossiittiioonn ttoo GGrraanntt ooff PPaatteenntt ((wwiitthhiinn 44 mmnntthhss oof f ad)

ad) Wo

(55)

The Copyright Act, 1957

The govt. has established a copy right office under The govt. has established a copy right office under the control of Registrar of Copyrights.

the control of Registrar of Copyrights.

The govt. has also constituted a Copyright Board. The govt. has also constituted a Copyright Board. The registrar of copyrights is the Secretary of the The registrar of copyrights is the Secretary of the Board. The board shall be deemed to be a civil

Board. The board shall be deemed to be a civil court.

court. The

The board will board will have have a Chairman, a Chairman, who is who is or or hashas

been a Judge of a HC or is qualified to be a Judge been a Judge of a HC or is qualified to be a Judge of a HC.

of a HC.

The copyright subsists in; a)original, literary, The copyright subsists in; a)original, literary, dramatic, musical and artistic works;

dramatic, musical and artistic works;

b)cinematograph films and c) sound recordings b)cinematograph films and c) sound recordings

M

(56)

contg..>>> contg..>>>

Registration of Copyright [sec 44-50]

II

nfringement of Copyright [sec 51]

Civil Remedies for

(57)

The Companies Act, 1956

A

An artificial n artificial person person ±± has nhas no bodyo body, no soul, no soul A voluntary association of persons

A voluntary association of persons

IIt is not seen in physical form, but it exists and ist is not seen in physical form, but it exists and is not fictitious entity

not fictitious entity

A separate legal entity, a limited liability, can be A separate legal entity, a limited liability, can be created & put to an end only by law

created & put to an end only by law

IIt has its nationality and residence but is not at has its nationality and residence but is not a cityzen cityzen Company v/s Partnership Company v/s Partnership Chartered/Statutory/Registered Co. Chartered/Statutory/Registered Co. Private & Public Limited Cos.

Private & Public Limited Cos.

Formation of Co. (Name approval/submission of Formation of Co. (Name approval/submission of docs.)

docs.)

Certificati

Certification on of of IIncorporationncorporation The Promoter

(58)

M

emorandum

emorandum & Articles of

& Articles of Association

Association

M

Meemmoorreenndduumm ooff AAssssooiiccaattiioonn sshhaallll ccoonnssiissttss ooff;; 1

1.. NNaammee ooff tthhee CCoo.. 2

2.. SSttaattee iinn wwhhiicchh tthhee rreeggiisstteerreedd ooffffiiccee ooff tthhee ccoo.. iiss situated

situated 3

3.. OObbjjeecctt ooff tthhee CCoo.. wwiitthhiinn wwhhiicchh tthhee CCoo.. sshhaallll k

keeeepsps ititss bubussinineessss T

Thhee AArrttiicclleess ooff AAssssoocciiaattiioonn aarree tthhee rruulleess,, rreegguullaattiioonnss aanndd bbyyee--llaawwss ffoorr tthhee iinntteerrnnaall m

maannaaggeemmeenntt ooff tthhee aaffffaaiirrss ooff aa CCoo.. Di

Diststininctctioionn bebetwtweeeenn MMeemmoorraanndduumm && AArrttiicclleess oof f Association

Association D

Dooccttrriinnee ooff UUllttrraa VViirreess (Ult(Ultrara--BeBeyyoondnd && ViVireress ±± PoPowewer)r) A

A ccoo.. hhaass tthhee ppoowewerr ttoo aallll ssuucchh tthhiinnggss aass aarree::-- 11..aauutthhoorriizzeedd bbyy CCoo.. A

Actct.1.195956,6, 2.2. esessesenntitialal ttoo acachihievevee ititss obobjejectct ggivivenen ininMMememororanandudumm && 3.3. Re

Reasasononabablyly anandd ffaiairlrlyy ininciciddenentatall ttoo ititss oobjbjecectsts.. EvEvereryytthihinngg elelsese isis UlUltrtraa V

Viirreess tthhee CCoo.. TThhee ppuurrppoossee ooff tthhiiss ddooccttrriinnee iiss ttwowo ffoolldd;; 11.. TToo pprrootteecctt iinnvveessttoorrss iinn tthehe cocommpapannyy && 2.2. ToTo pprorotetectct crcrededititoorsrs ttoo enensusurere apapprprooprpriaiattioionn ofof fufunndsds..

(59)

II

P O

Prospectus

Prospectus ((IInvitation to public, nvitation to public, dating, registration)dating, registration)

Contents of Prospectus Contents of Prospectus ii)) GGeenneerraall IInformationnformation

iiii)) CCaappiittaal Sl Sttrruuccttuurree ii

iii)i) TeTermrms os of tf the he prpreesesent nt ofoffefer r (objects, project cost,(objects, project cost, means of financing (including contribution of

means of financing (including contribution of promoters)promoters)

iv

iv)) CCoo.., , mmggmmt & t & pprroojjeecctt v

v)) PaPartrticiculularars s in in reregagard rd to to ththe ce co. o. anand od othther er liliststeded companies under the same mgmt

companies under the same mgmt v

vi)i) OuOutststatanndidinng lig lititiggaatitioonn vii)

vii) MMgmt.¶s perception of risk factorsgmt.¶s perception of risk factors

Liabilities for mis-representation in prospectus Liabilities for mis-representation in prospectus

(against the co., directors, promoters &

(against the co., directors, promoters & experts)experts)

Underwriting Commission & Brokerage Underwriting Commission & Brokerage

(60)

Contg. >>> Contg. >>>

Register of

MM

embers

[sec 150] ([sec 150] (IIndex, Place of ndex, Place of keeping the register, Power to close)

keeping the register, Power to close)

Annual Return

(Every co. having sharing capital(Every co. having sharing capital shall file this within 60 days of AG

shall file this within 60 days of AGMM))

A

Authorized,

uthorized, Registered or Nominal Capital

Registered or Nominal Capital

II

ssued & Subscribed Capital

Called-up Capital

Paid-up Capital

Uncalled Capital

Reserve Capital

Reduction of Share Capital

(Under sec 100 a co.(Under sec 100 a co. may do so subject to confirmation by the court)

(61)

Procedure of reduction fo share capital; Procedure of reduction fo share capital;

1

1.. SSppeecciiaal l RReessoolluuttiioon n [[sseec 1c 10000]] 2

2.. AApppplliiccaattiioon tn to o tthhe e ccoouurrtt 3.

3. ReRegigiststraratition on of of cocoururt-t-orordeder wir with th ReRegigiststrarar r

Conversion of debentures or loan into shares Conversion of debentures or loan into shares Stock & Shares (Distinction)

Stock & Shares (Distinction)

Application & Allotment of Shares Application & Allotment of Shares Share Certificate

Share Certificate Share Warrant Share Warrant

Distinction between Share Warrant &

Distinction between Share Warrant & ShareShare Certificate

Certificate

Buy Back of Securities Buy Back of Securities Transfer of Shares

(62)

Surrender of Shares (Sec 77 prohibits) Surrender of Shares (Sec 77 prohibits) Forfeiture of Shares

Forfeiture of Shares

Purchase by Co. of its own shares Purchase by Co. of its own shares Dividends Dividends Debentures Debentures Appointment of Directors; Appointment of Directors; 1.

1. FiFirsrst Dt Dirirecectotorsrs, 2., 2.AAppppoiointntmement by nt by CoCo., ., 3.3.By By ththe Be Boaoardrd,, 4.By third parites, 5.By proportional representation, 6.By 4.By third parites, 5.By proportional representation, 6.By the Central Govt.

the Central Govt.

Removal of Directors; Removal of Directors;

1.

1. ShShararehehololdedersrs[2[28484], 2], 2.C.Cenentrtral al GoGovtvt., ., 3.3.CoCo. . LaLaw Bw Boaoardrd

Reconstruction & Amalgamation [394] Reconstruction & Amalgamation [394]