Indian Contract Act 1872 The law relating to contracts in India is contained in Indian Contract Act, 1872. The Act was passed by British India and is based on the principles of English Common Law. It is applicable to the All the States of India except the State of Jammu & Kashmir. It determines the circumstances in which promise made by the parties to a contract shall be legally binding on them. All of us enter into a number of contracts everyday knowingly or unknowingly. Each contract creates some right and duties upon the contracting parties.
Indian contract deals with the enforcement of these rights and duties upon the parties in India. ————————————————- Definition Section 2(h) of the Act defines the term contract as “any agreement enforceable by law”. There are two essentials of this act, agreement and enforceability. Section 2(e) defines agreement as “every promise and every set of promises, forming the consideration for each other. ” Again Section 2(b) defines promise in these words: “when the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted.
Proposal when accepted, becomes a promise. ” And other words Say Agreement is Sum of all contract are agreement, but all agreement are not contract.. CONTRACT=AGREEMENT+ENFORCEABLE BY LAW( LAW) ————————————————- Essential Elements of a Valid Contract According to Section 10, “All agreements are contracts, if they are made by the free consent of the parties, competent to contract, for a lawful consideration with a lawful object, and not hereby expressly to be void. ” Essential Elements of a Valid Contract are: . Proper offer and proper acceptance. there must be an agreement based on a lawful offer made by person to another and lawful acceptance of that offer made by the latter. section 3 to 9 of the contract act, 1872 lay down the rules for making valid acceptance 2. Lawful consideration: An agreement to form a valid contract should be supported by consideration. Consideration means “something in return” (quid pro quo). It can be cash, kind, an act or abstinence. It can be past, present or future. However, consideration should be real and lawful. . Competent to contract or capacity: In order to make a valid contract the parties to it must be competent to be contracted. According to section 11 of the Contract Act, a person is considered to be competent to contract if he satisfies the following criterion: * The person has reached the age of maturity. * The person is of sound mind. * The person is not disqualified from contracting by any law. 4. Free Consent: To constitute a valid contract there must be free and genuine consent of the parties to the contract.
It should not be obtained by misrepresentation, fraud, coercion, undue influence or mistake. 5. Lawful Object and Agreement: The object of the agreement must not be illegal or unlawful. 6. Agreement not declared void or illegal: Agreements which have been expressly declared void or illegal by law are not enforceable at law; hence they do not constitute a valid contract. 7. Intention To Create Legal Relationships:- when the two parties enter in to an agreement,there must be intention to create a legal relationship between them … if there is no such intention on the part of the parties .. here is no contract between them .. agreements of a social or domestic nature do not contemplate legal relationship;as such they are not contracts. 8. Certainty, Possibility Of Performance 9. Legal Formalities 10. by surity ————————————————- Types of contracts On the basis of validity: 1. Valid contract: An agreement which has all the essential elements of a contract is called a valid contract. A valid contract can be enforced by law. 2. Void contract[Section 2(g)]: A void contract is a contract which ceases to be enforceable by law.
A contract when originally entered into may be valid and binding on the parties. It may subsequently become void. — There are many judgments which have stated that where any crime has been converted into a “Source of Profit” or if any act to be done under any contract is opposed to “Public Policy” under any contract—than that contract itself cannot be enforced under the law- 3. Voidable contract[Section 2(i)]: An agreement which is enforceable by law at the option of one or more of the parties thereto, but not at the option of other or others, is a voidable contract.
If the essential element of free consent is missing in a contract, the law confers right on the aggrieved party either to reject the contract or to accept it. However, the contract continues to be good and enforceable unless it is repudiated by the aggrieved party. 4. Illegal contract: A contract is illegal if it is forbidden by law; or is of such nature that, if permitted, would defeat the provisions of any law or is fraudulent; or involves or implies injury to a person or property of another, or court regards it as immoral or opposed to public policy.
These agreements are punishable by law. These are void-ab-initio. “All illegal agreements are void agreements but all void agreements are not illegal. ” 5. Unenforceable contract: Where a contract is good in substance but because of some technical defect cannot be enforced by law is called unenforceable contract. These contracts are neither void nor voidable. On the basis of formation: 1. Express contract: Where the terms of the contract are expressly agreed upon in words (written or spoken) at the time of formation, the contract is said to be express contract. . Implied contract: An implied contract is one which is inferred from the acts or conduct of the parties or from the circumstances of the cases. Where a proposal or acceptance is made otherwise than in words, promise is said to be implied. 3. Quasi contract: A quasi contract is created by law. Thus, quasi contracts are strictly not contracts as there is no intention of parties to enter into a contract. It is legal obligation which is imposed on a party who is required to perform it.
A quasi contract is based on the principle that a person shall not be allowed to enrich himself at the expense of another. On the basis of performance: 1. Executed contract: An executed contract is one in which both the parties have performed their respective obligation. 2. Executory contract: An executory contract is one where one or both the parties to the contract have still to perform their obligations in future. Thus, a contract which is partially performed or wholly unperformed is termed as executory contract. . Unilateral contract: A unilateral contract is one in which only one party has to perform his obligation at the time of the formation of the contract, the other party having fulfilled his obligation at the time of the contract or before the contract comes into existence. 4. Bilateral contract: A bilateral contract is one in which the obligation on both the parties to the contract is outstanding at the time of the formation of the contract. Bilateral contracts are also known as contracts with executory consideration. ———————————————— Negotiable Instruments Act, 1881 Negotiable Instruments Act, 1881 was passed by British India and for over 130 years and except for amendments, the question of revising the act as a whole never been raised. According to Section of the Negotiable Instruments Act means “A negotiable instrument means a promissory note, bill of exchange or cheque payable either to order or to bearer. ‘But in Section 1, it is also described that Local extent, Saving of usage relating to hundis, etc. , Commencement. It extends to the whole of India but nothing herein contained affects the Indian Paper Currency Act, 1871, Section 2, or affects any local usage relating to any instrument in an oriental language. Provided that such usages may be excluded by any words in the body of the instrument, which indicate and intention that the legal relations of the parties thereto shall be governed by this Act; and it shall come into force on the first day of March, 1882.  ————————————————- Modern era and Negotiable Instruments prefer to carry a small piece of paper known as Cheque rather than carrying the currency worth the value of the Cheque. Before 1988 there being no provision to restrain the person issuing the Cheque without having sufficient funds in his account. Of course on Dishonoured cheque there is a civil liability accrued. However in reality it takes a long time to recover the money. In order to ensure promptitude and remedy against the defaulters of the Negotiable Instrument a criminal remedy of penalty was inserted in Negotiable Instruments Act, 1881 by amending it with Negotiable Instruments Act, 1988. 3] With the insertion of these provisions in the Act the situation certainly improved and the instances of dishonour have relatively come down but on account of application of different interpretative techniques by different High Courts on different provisions of the Act it further compounded and complicated the situation although on dishonour of cheques the trends of the verdicts of the Supreme Court of India unequivocally demonstrate that there is subconscious judicial pressure in the mind of the Judges which leans heavily in favour of the holder of the cheque. ————————————————-
The sales of goods act 1930 — Presentation Transcript * 1. The sales of goods act 1930 Meaning of sale and goods Conditions and warranties Transfer of property Rights of an unpaid seller * 2. The law of sale of goods was contained in chapter VII of the Indian contract Act. 1872 Contracts for the sale of goods are subject to the general legal principles applicable to all contracts, such as offer and its acceptance or other essential elements of a contract. * 3. Contract of sale of goods A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property in goods to buyer for a price.
The term “ contract of sale” is a generic term and includes both a sale and an agreement to sell. * 4. Sale and agreement to sell Where under a contract of sale, the property in the goods is transferred from the seller to the buyer, the contract is called a “sale” but where the transfer of the property in the goods is to take place at a future time or subject to some conditions thereafter to be fulfilled. The contract is called “agreement to sell “. An agreement to sell becomes a sale when the time elapses or the conditions, subject to which the property in the goods is to be transferred are fullfilled. 5. Essentials of a contract of sale Two parties: there must be two distinct parties i. e a buyer and the seller, to effect a contract of sale and they must be competent to enter into a contract. Goods: there must be some goods the property in which is or is to be transferred from the seller to the buyer. The goods which form the subject matter of the contract of sale must be movable. Transfer of immovable property is not regulated by the sale of goods Act. Price: the consideration for the contract of sale, called price, must be money. When goods are exchanged for goods, if is not a sale but a barter.
Partly in money and kind is a contract of sale. All the essential elements of a valid contract. * 6. Distinction between sale and an agreement to sell In a sale the property in the goods passes from the seller to the buyer immediately so that the seller is no more the owner of the goods sold. A sale can only be in case of existing and specific goods only. In an agreement to sell the transfer of property in the goods is to take place at a future time or subject to certain conditions to be fulfilled. It is mostly in case of future and contingent goods . * 7.
Risk of loss falls on the buyer even though they are in the possession of seller. Seller can sue for price in case of breach, possession may be with seller. Risk of loss is with seller even though goods are in the possession of buyer. Seller can only sue for damages though goods may be in the possession of the buyer. * 8. Conditions and warranties A stipulation in a contract of sale with reference to goods which are the subject thereof may be a condition or a warranty ( sec 12(1). Condition: a condition is a stipulation which is essential to the main purpose of the contract.
It goes to the root of the contract, its non fulfillment upsets the very basis of the contract. If there is a breach of a condition, the aggrieved party can treat the contract as repudiated. Ex: truck which is now in Bombay should proceed! * 9. warranty Sec 12(3) a warranty is a stipulation which is collateral to the main purpose of the contract. It is not of such vital importance as condition is. If there is a breach of a warranty, the aggrieved party can only claim damages and it has no right to treat the contract as repudiated. * 10.
Whether a stipulation in a contract of sale is a condition or a warranty depends in each case on the construction of the contract as a whole. The court is not guided by the terminology used by the parties to the contract. A stipulation may be a condition though called a warranty in the contract. ( sec 12(4)). * 11. Difference between condition and warranty Condition Stipulation essential to the main purpose Breach of condition, contract can be repudiated A breach of condition may be treated as breach of warranty. Warranty Stipulation collateral to the main urpose of the contract Breach of warranty the aggrieved party can claim damages only A breach of warranty, cannot be treated as a breach of a condition. * 12. When conditions to be treated as warranty Voluntary waiver of condition: where a contract of sale is subject to any condition to be fulfilled by the seller, the buyer may (a) waive the condition or (b) elect to treat the breach of the condition as a breach of warranty. If the buyer once decides to waive the condition he cannot afterwards insists on its fulfillment. * 13. 2. cceptance of goods by buyer: where a contract of sale is not severable and the buyer has accepted the goods or part thereof, the breach of any condition to be fulfilled by the seller can only be treated as a breach of warranty. Unless there is an agreement to the contrary. * 14. Express and implied conditions and warranties Implied conditions Condition as to title: (a) in the case of a sale, he has a right to sell the goods and (b) in the case of an agreement to sell he will have a right to sell the goods at the time when the property is to pass.
Sale by description: where there is a contract for the sale of goods by description, there is an implied condition that the goods shall correspond, there is an implied condition that the goods shall correspond with the description. * 15. Condition as to quality or fitness: the condition as to quality or fitness is implied where (a) the goods sold are such as the seller deals in the ordinary course of his business (b) the buyer relies on the seller’s skill or judgment as to the fitness of the goods for any particular purpose (C) the buyer expressly or impliedly makes known to the seller that he wants the goods for that particular purpose.
Condition as to merchantability: where goods are bought by description from a seller who deals in goods of that description , it means goods should be such as commercially saleable under the description by which they are known in the market at their full value. * 16.
Condition implied by custom: an implied condition as to the quality or fitness for a particular purpose may be annexed by usage of trade Sale by sample: implied condition that the bulk shall correspond with the sample in quality, that the buyer shall have a reasonable opportunity of comparing the bulk with the sample, that the goods shall be free from any defect, rendering them un-merchantable. Condition as to wholesomeness; in the case of eatables and provisions, in addition to merchantability, there is another implied condition that the goods shall by wholesome. * 17.
Implied warranties Warranty of quiet possession: if the buyer is any way disturbed in the enjoyment of the goods in consequence of the seller’s defective title to sell, he can claim damages from the seller. Warranty of freedom from encumbrances; the goods are free from any charge or encumbrance in favor of any third party. Warranty as to quality or fitness by usage of trade. Warranty to disclose dangerous nature of goods * 18. Caveat emptor “ Let the buyer beware” In a contract of sale of goods the seller is under no duty to reveal unflattering truths about the goods sold.
Therefore when a person buys some goods, he must examine them thoroughly. If the goods turn out to be defective or do not suit his purpose or he depends upon his own skill or judgment and makes a bad selection, he cannot blame anybody excepting himself. * 19. Exceptions Fitness for buyer’s purpose Sale under a patent or trade name Merchantable quality Usage of trade Consent by fraud ————————————————- General Agreement on Tariffs and Trade The General Agreement on Tariffs and Trade (GATT) was a multilateral agreement regulating international trade.
According to its preamble, its purpose was the “substantial reduction of tariffs and other trade barriers and the elimination of preferences, on a reciprocal and mutually advantageous basis. ” It was negotiated during the UN Conference on Trade and Employment and was the outcome of the failure of negotiating governments to create the International Trade Organization (ITO). GATT was signed in 1948 and lasted until 1993, when it was replaced by the World Trade Organization in 1995. The original GATT text (GATT 1958) is still in effect under the WTO framework, subject to the modifications of GATT 1994. 1] ————————————————- The Companies Act, 1956 The Companies Act 1956 is an Act of the Parliament of India, enacted in 1956, which enabled companies to be formed by registration, and set out the responsibilities of companies, their directors and secretaries.  The Companies Act 1956 is administered by the Government of India through the Ministry of Corporate Affairs and the Offices of Registrar of Companies, Official Liquidators, Public Trustee, Company Law Board, Director of Inspection, etc.
The Registrar of Companies (ROC) handles incorporation of new companies and the administration of running companies. Since its commencement, it has been amended many times, in which amendment of 1988, 1990, 1996, 2000 and 2011 are notable. ————————————————- Provisions of the Act The Act is 658 sections long. It contains provisions about Companies, directors of the companies, memorandum and articles of associations, etc. This act states and discusses every single provision requires or may need to govern a company. ———————————————— Intellectual property From Wikipedia, the free encyclopedia This article isIntellectual Property (film) | | * | | * | | * | * | Intellectual property (IP) is a juridical concept which refers to creations of the mind for which exclusive rights are recognized.  Under intellectual property law, owners are granted certain exclusive rights to a variety of intangible assets, such as musical, literary, and artistic works; discoveries and inventions; and words, phrases, symbols, and designs.
Common types of intellectual property rights include copyright, trademarks, patents, industrial design rights and in some jurisdictions trade secrets. Although many of the legal principles governing intellectual property rights have evolved over centuries, it was not until the 19th century that the term intellectual property began to be used, and not until the late 20th century that it became commonplace in the majority of the world.  The British Statute of Anne 1710 and the Statute of Monopolies 1623 are now seen as the origins of copyright and patent law respectively.  ———————————————— Objectives The stated objective of most intellectual property law (with the exception of trademarks) is to “Promote progress. “ By exchanging limited exclusive rights for disclosure of inventions and creative works, society and the patentee/copyright owner mutually benefit, and an incentive is created for inventors and authors to create and disclose their work. Some commentators have noted that the objective of intellectual property legislators and those who support its implementation appears to be “absolute protection. “If some intellectual property is desirable because it encourages innovation, they reason, more is better. The thinking is that creators will not have sufficient incentive to invent unless they are legally entitled to capture the full social value of their inventions. ”  This absolute protection or full value view treats intellectual property as another type of ‘real’ property, typically adopting its law and rhetoric. Other recent developments in intellectual property law, such as the America Invents Act, stress international harmonization.
Trademark law is not based in the intellectual property clause of the U. S. Constitution, and has distinct policy objectives which are not discussed here. Financial incentive Economic growth Morality ————————————————- Foreign Exchange Management Act From Wikipedia, the free encyclopedia | | | | | | | | | | | | | The Foreign Exchange Management Act (FEMA) was an act passed in the winter session of Parliament in 1999 which replacedForeign Exchange Regulation Act. This act seeks to make offenses related to foreign exchange civil offenses. It extends to the whole ofIndia. 1] FEMA, which replaced Foreign Exchange Regulation Act(FERA), had become the need of the hour since FERA had become incompatible with the pro-liberalisation policies of the Government of India. FEMA has brought a new management regime of Foreign Exchange consistent with the emerging framework of the World Trade Organisation (WTO). It is another matter that the enactment of FEMA also brought with it the Prevention of Money Laundering Act 2002, which came into effect from 1 July 2005. Unlike other laws where everything is permitted unless specifically prohibited, under this act everything was prohibited unless specifically permitted.
Hence the tenor and tone of the Act was very drastic. It required imprisonment even for minor offences. Under FERA a person was presumed guilty unless he proved himself innocent, whereas under other laws a person is presumed innocent unless he is proven guilty. Contents [hide] * 1 Switch from FERA * 2 Need for its management * 3 Main Features * 4 References * 5 External links| ————————————————- Switch from FERA The done in 1974, a period when India’s foreign exchange reserve position wasn’t at its best. A new control in place to improve this position was the need of the hour.
FERA did not succeed in restricting activities, especially the expansion of TNCs (Transnational Corporations). The concessions made to FERA in 1991-1993 showed that FERA was on the verge of becoming redundant.  After the amendment of FERA in 1993, it was decided that the act would become the FEMA. This was done in order to relax the controls on foreign exchange in India, as a result of economic liberalization. FEMA served to make transactions for external trade (exports andimports) easier – transactions involving current account for external trade no longer required RBI’s permission.
The deals in Foreign Exchange were to be ‘managed’ instead of ‘regulated’. The switch to FEMA shows the change on the part of the government in terms of foreign capital.  ————————————————- Need for its management The buying and selling of foreign currency and other debt instruments by businesses, individuals and governments happens in the foreign exchange market. Apart from being very competitive, this market is also the largest and most liquid market in the world as well as in India. 4] It constantly undergoes changes and innovations, which can either be beneficial to a country or expose them to greater risks. The management of foreign exchange market becomes necessary in order to mitigate and avoid the risks. Central banks would work towards an orderly functioning of the transactions which can also develop their foreign exchange market.  Whether under FERA or FEMA’s control, the need for the management of foreign exchange is important. It is necessary to keep adequate amount of foreign exchange reserves, especially when India has to go in for imports of certain goods.
By maintaining sufficient reserves, India’s foreign exchange policy marked a shift from Import Substitution to Export Promotion.  ————————————————- Main Features – Activities such as payments made to any person outside India or receipts from them, along with the deals in foreign exchange and foreign security is restricted. It is FEMA that gives the central government the power to impose the restrictions. – Restrictions are imposed on people living in India who carry out transactions in foreign exchange, foreign security or who own or hold immovable property abroad. Without general or specific permission of the Reserve Bank of India, FEMA restricts the transactions involving foreign exchange or foreign security and payments from outside the country to India – the transactions should be made only through an authorised person. – Deals in foreign exchange under the current account by an authorised person can be restricted by the Central Government, based on public interest. – Although selling or drawing of foreign exchange is done through an authorised person, the RBI is empowered by this Act to subject the capital account transactions to a number of restrictions. People living in India will be permitted to carry out transactions in foreign exchange, foreign security or to own or hold immovable property abroad if the currency, security or property was owned or acquired when he/she was living outside India, or when it was inherited to him/her by someone living outside India. – Exporters are needed to furnish their export details to RBI. To ensure that the transactions are carried out properly, RBI may ask the exporters to comply to its necessary requirements.