BR Unit 1 Notes PDF

Business Regulation
Business Regulations
Study Material
Bcom 6th Semester

(As per Bangalore University)
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Punith Kumar H.S
Asst prof commerce & Management
Nagarjuna Degree College
Business Regulation
SYLLABUS
(As per Bengaluru University, according to study material)
UNIT 1: INTRODUCTION TO BUSINESS LAWS
Introduction, Nature of Law, Meaning and Definition of Business Laws, Scope and Sources of
Business Laws.
UNIT 2 (A): CONTRACT LAWS
Indian Contract Act, 1872: Definition of Contract, essentials of a valid contract, classification
of contracts, remedies for breach of contract.
UNIT 2 (B): INDIAN SALE OF GOODS ACT
Indian Sale of Goods Act, 1930: Definition of contract of sale, essentials of contract of sale,
conditions and warrantees, rights and duties of buyer, rights of an unpaid seller.
UNIT 3 ENVIRONMENT LAW
Environment Protection Act, 1986: Objects of the Act, definitions of important terms:
environment, environment pollutant, environment pollution, hazardous substance and occupier,
types of pollution, rules and powers of central government to protect environment in India.
UNIT 4: ECONOMIC LAW
Indian Patent Laws and WTO Patent Rules: Meaning of IPR, invention and non-invention,
procedure to get patent, restoration and surrender of lapsed patent, infringement of patent,
FEMA 1999: Objects of FEMA, salient features of FEMA, definition of important terms:
authorized person, currency, foreign currency, foreign exchange, foreign security, offences and
penalties.
UNIT 5 (A): COMPETITION AND CONSUMER LAWS:
The Competition Act, 2002: Objectives of Competition Act, Features of Competition Act,
CAT, offences and penalties under the Act, Competition Commission of India.
UNIT 5 (B): CONSUMER PROTECTION ACT,
Consumer Protection Act, 1986: Definition of the terms consumer, consumer dispute, defect,
deficiency, unfair trade practices and services. Rights of the consumer under the Act,
Consumer Redressal Agencies – District Forum, State Commission, National Commission.
Other Contents
• Case study for required topics
• Chapter wise Important Questions
• Previous year question papers
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UNIT 1: INTRODUCTION TO BUSINESS LAWS 06 Hrs

Introduction, Nature of Law, Meaning and Definition of Business Laws,
Scope and Sources of Business Laws.
Meaning and Definition of Business
Human beings are continuously engaged in some activity or other in order to satisfy their
unlimited wants. Every day we come across the word 'business' or 'businessman' directly or
indirectly. Business has become essential part of modern world.
Business is an economic activity, which is related with continuous and regular production and
distribution of goods and services for satisfying human wants.
Lewis Henry defines business as, "Human activity directed towards producing or acquiring
wealth through buying and selling of goods."
Meaning and Definition of Law
The law is a system of rules that a society or government develops in order to deal with crime,
business agreements, and social relationships.
Law is a system of rules that are created and enforced through social or governmental
institutions to regulate behaviour
Salmond defines law as the “body or principles recognised and applied by the state in the
administration of justice”.
According to Austin, “Law is a rule of conduct imposed and enforced by the state."
Nature of Law
Law is the result of continuous effort through a workable set of rules in the society. It is not
pure science based upon unchanging and universal truth. It affects every activity of the
individual. The nature of law are as follows:
1. Justice is an aim of Law- Justice is always provided through law. The law means to provide
justice to people.
2. Create a peaceful and harmonious relation between people living under society-Law is
made for keeping peace and harmonious relation by providing security.
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3. The law is pervasive (spreading or spread throughout)- Every person is presumed to know
it.
4. It regulates human activities- It regulates human behaviour in three ways: Prohibitor,

mandatory and permissive.
5. Ignorance of law is not excused.
6. It is a set of rules which is set by the state.
7. It regulates the human conduct.
8. It is created and maintained by the state.
9. It has the certain amount of stability, fixity and uniformity.
10. It ensures all the people have specific power and responsibilities.
11. Its violation leads to punishment.
Meaning and definition of “Business Laws”
Business law, also called commercial law or mercantile law, the body of rules,
Commercial law or business law is the body of law which governs business and commerce and
is often considered to be a branch of civil law and deals both with issues of private law and
public law. Commercial law regulates corporate contracts, hiring practices, and the manufacture
and sales of consumer goods.
Business law is also known as commercial law and is that branch of law that deals with the
legal rights, duties, liabilities of parties involved in any kind of business transactions related to
commerce, trade, sales and merchandising. It is a branch of civil law and includes public as well
as private law.
Commercial law or business law deals with legal aspects such as the laws of principal and agent,
carriage by sea or land, laws of indemnity and guarantee, laws of insurance (marine, fire, life,
accident insurance), laws of banking, partnership and much more. Business law is a very broad
term by itself and has many divisions and types of law to be studied under it.
Here are a few important features of business law –
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1. It is the law of commerce or commercial law as it deals with all the aspects of entering into
selling and purchasing agreements.
2. It includes the study of the law of contract which is important in agreements or contracts
that involve two or more parties buying and selling things in exchange for a consideration
or purchase price.
3. Business law clearly explains the rights, duties, liabilities and legal obligations of the parties
involved in a contract of sales, purchase or any other kind of contract or agreement entered
into in relation to any kind of business or commercial activity.
4. It includes intellectual property law (patents, trademarks, copyrights, etc.) and consumer
protection law.
5. Business law will also apply to anyone who plans on opening or starting a business of their
own.
6. Business law also deals with banking law, finance law and other important civil laws.
Scope of Business laws
The scope of business law is very wide and varied. It includes law relating to contracts,
partnership, sale of goods, negotiable instruments, companies, insolvency, insurance, carriage
of goods, etc.
Business law is concerned with the study of rights and obligations arising out of business
transactions between mercantile persons. business persons are persons who carry on commercial
transactions. They may be individuals, partnership concerns or joint stock companies.
Knowledge of business law is essential to merchants. It helps the merchants to avoid conflicts
with the persons with whom he comes into business contacts.
The Scope of Business Law can be broadly classified as:
1. Law of contract
Deals with any agreement which may be in particular or general with the individuals
belonging to the society and also of various commercial activities.
2. Law of sale of goods
Deals with the agreement between one trader to another trader with only commercial
transactions.
3. Economic and other Legislation
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These are termed as ‘General Law’, deals with both the business and society which sets the
rules towards rights, duties and obligations for any category of people in the society.
Sources of Business Law
Sources of law in its narrow sense means the origins of law, i.e. the binding rules governing
human conduct. More generally, it means any premises of a legal reasoning. [1] Such sources
may be international, national, regional or religious.
Major part of Indian Mercantile Law or Commercial Law is based on English Law
The main sources of Indian Mercantile Law are:
1. English Mercantile Law.
2. Statute Law.
3. Judicial Decisions.
4. Customs and Usage.
5. Expert opinions
6. Commercial treaty and agreements
1. English Mercantile Law
The English law is the most important source of Indian mercantile law. Many rules of English
law have been incorporated into Indian law through statutes and judicial decisions. The sources
of English law are:
a. Common Law
This law is known as judge made law. It is based upon customs and practices handed down
from generation to generation. It is the oldest unwritten law. The English Courts developed
these over centuries.
b. Equity
Equity is also unwritten law. It is based upon concepts of justice developed by the judges whose
decisions become precedents. It grew as a system of law supplementary to the common law and
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covered the deficiencies of the common law. Its rules were applied in cases where the rules of
common law were considered harsh and oppressive.
The Judicature Acts of 1873 and 1875 abolished the distinction between Common Law and
Equity so that they are now applied to all cases.
c. Case Law
This is also an important source of the English mercantile law. It is built upon the decisions of
the Judges. It is based on the principle that what has been decided in earlier case is binding in
similar future case also unless that there is a change in the circumstances of the case.
d. A Lex Mercatorian or Law Merchant
It is also one of the important sources of English mercantile law. A Lex Mercatorian or law
merchant consists of legal principles based on customs and usage. They developed first as a
separate system of law and subsequently became part of the common law.
2. Statute Law
A Bill passed by the parliament and signed by the President becomes a “Statute” or an Act.
Most of the Indian laws are embodied in the various Acts passed by the Central as well as State
legislators.
• The Indian contract act 1872

• The sale of goods act 1930
• The companies act 1956
• The Negotiable instrument act 1881
• The Indian partnership act 1932
3. Judicial Decisions
Judicial decisions are also called as case laws. They referred to as precedents and are binding
on all Courts having jurisdiction lower to that of the Court, which gave the judgement. The
Courts in deciding cases involving similar points of law also follow them.
4. Customs and Usage
Customs and usage plays an important role in regulating business transactions. A well-
recognized custom or usage can even override the statute law. Most of the business customs and
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usage have been already codified and given legal sanctions in India. Some of them have been
ratified by the decisions of the competent Courts of law.
5. Experts opinion
The experts can help us to make good business rules. Our law makers take opinion and
guidelines from the exports before making business rules. If we have good business rules our
businessman can managed, regulate and lead business organization successfully. The experts
are the manufactures helping WTO create good business environment in the business
community so experts are considered as a source of business law.
6. Commercial treaty and agreement: - WTO, etc.
Commercial treaty and agreement are business understanding and compromise between or
among the organization and countries. After making business agreement all the members of that
follow its provisions as its business rules. Commercial agreement is always made with a view
to develop and extend business relation between or among the business organization or
countries. The member countries or organization should make business rules according to
provisions of that agreement. For example, member countries of WTO etc. should follow its
rules as their business rule. Therefore, it is also considered is a source of business law.
Important Questions to be referred
1. Define Business Law?
2. Mention the Scope of Business Law?
3. Explain the sources of Business Law?
4. What is statue law?
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UNIT 2 (A): CONTRACT LAWS 9Hrs
Indian Contract Act, 1872: Definition of Contract, essentials of a valid

contract, classification of contracts, remedies for breach of contract.
Contract Meaning
A contract is a voluntary arrangement between two or more parties that is enforceable by law
as a binding legal agreement.
Contract law concerns the rights and duties that arise from agreements.
A contract is a legally enforceable agreement between two or more parties. It may be oral or
written. A contract is essentially a set of promises. Typically, each party promises to do
something for the other in exchange for a benefit.
Definition of contract
According to Sir John Salmond defines a contract as, “An agreement creating and defining
obligations between two parties.
According to Sir Fredirck Pollock defines, “Every agreement and promise enforceable at law
is a contract”.
The definition of Contract is given under S.2(h) of the Indian Contract Act, of 1872 which
provides ‘a contract is an agreement enforceable by law’. Thus, a contract is an agreement made
between two or more parties which the law will enforce.
According to above definitions it is clear that a contract should consist of two elements
a. Agreement
b. Legal obligation (enforceable by law)
a. Agreement
Agreement is considered to be prime element to form any contract. An agreement is defined
u/s 2 (e) as ‘every promise and every set of promises, forming consideration for each other.
When a proposal is accepted it becomes a promise. Thus, an agreement is an accepted
proposal. Therefore, in order to form an agreement there must be a proposal or an offer by
one party and its acceptance by other party. In short Agreement = Proposal + Acceptance.
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b. Legal obligation (enforceable by law)

An agreement to become a contract must give rise to legal obligation. The second part of
the definition deals with enforceability by law. An agreement is enforceable u/s 10 if it is
made by competent parties, out of their free consent and for lawful object and consideration.
Therefore, a Contract = Agreement + Enforceability. Thus, all contracts are agreements but
all agreements are not necessarily contracts.
Essentials elements of a valid Contract
1. Offer and Acceptance: Basically, a contract unfolds when an offer by one party is accepted
by the other party. The accepted offer should be without any qualification and be definite. An
offer needs to be clear, definite, complete and final. It should be communicated to the offeree.
A proposal when accepted becomes a promise or agreement. The offer and acceptance must be
‘consensus ad idem’ which means that both the parties must agree on the same thing in the same
sense i.e. identity of wills or uniformity of minds.
Example:
A say to B that he will sell his cycle to him for Rs.2000. This is an offer. If B
accepts this offer, there is an acceptance.
2. Intention to Create Legal Relationship: The intention of the parties to a contract must be
to create a legal relationship between them. Agreements of social nature, as they do not
contemplate legal relationship, are not contracts. For instance, if a father fails to give his
daughter the promised pocket money, the daughter cannot sue the father, because it was purely
a domestic arrangement. Thus, it is clear that all agreements, which do not result in legal
relations, are not contracts.
Example:
1. A father promises to pay his son Rs.500 every month as pocket money. Later,
he refuses to pay. The son cannot recover as it is a social agreement and does
not create legal relations.
2. A offers to sell his watch to B for Rs.200 and B agrees to buy it at the same
price, there is a contract as it creates legal-relationship between them.
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3. A husband promised to pay his wife a household allowance of 30 pounds

every month. Later, the parties separated and the husband failed to pay. The
wife used for allowance. Held that the wife was not entitled for the allowance
as the agreement was social and did not create any legal obligations.
3. Capacity to Contract: If an agreement is entered between parties who are competent enough
to contract, then the agreement becomes a contract.
Example:
1. M, a person of unsound mind, enters into an agreement with S to sell his

house for Rs.2 lac. It is not a valid contract because M is not competent to
contract.
2. A, aged 20 promises to sell his car to B for Rs.3 Lac. It is a valid contract
because A is competent to contract.
4. Genuine and Free Consent: Free consent is another essential element of a valid contract.
An agreement must have been made by free consent of the parties. The contract would be void
in case of mutual mistakes. When consent is obtained by unfair means, the contract would be
voidable.
Example:
1. A compels B to enter into a contract on the point of pistol. It is not a valid

contract as the consent of B is not free.
5. Lawful Object: Objectives of an agreement should be lawful. It must not be illegal or

immoral or opposed to public policy. It is lawful unless it is forbidden by law. When the object
of a contract is not lawful, the contract is void.
Example:
A promise to pay B Rs.5 thousand if B beats C. The agreement is illegal as its

object is unlawful.
6. Lawful Consideration: Something in return is Consideration. In every contract, agreement

must be supported by consideration. It must be lawful and real.
Example:
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1. A agrees to sell his house to B for Rs.10 Lac is the consideration for A’s
promise to sell the house, and A’s promise to sell the house is the consideration
for B’s promise to pay Rs.10 Lac. These are lawful considerations.
2. A promise to obtain for B employment in the public service, and B promise to

pay 10,000 rupees to A. the agreement is void, as the consideration for it is
unlawful.
7. Certainty and Possibility of Performance: The agreements, in which the meaning is

uncertain or if the agreement is not capable of being made certain, it is deemed void. T&C of
the contract should always be certain and cannot be vague. Any contract that are uncertain are
considered void. The terms of the agreement must also be capable of performance and should
not enforce impossible act.
Example:
1. A promised to sell 20 books to B. It is not clear which books A has promised

to sell. The agreement is void because the terms are not clear.
2. A agrees to sell B a hundred tons of oil. It is not clear what is the kind of oil.
The agreement is void because of it uncertainty.
3. O agreed to purchase a van from S on hire-purchase terms. The price was to

be paid over two years. Held there was no contract as the terms were not certain
about rate of interest and mode of payment.
Possibilities of performance
Example:
1. A agrees with B to discover treasure by magic, the agreement is not

enforceable.
2. A agrees with B to put life into B’s dead brother. The agreement is void as it
is impossible of performance
8. Legal Formalities: Legal formalities if any required for particular agreement such as
registration, writing, they must be followed. Writing is essential in order to affect a sale, lease,
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mortgage, gift of immovable property etc. Registration is required in such cases and legal
formalities in the relevant legislation should be strictly followed.
Example:
1. A Verbally promises to sell his book to y for Rs.200 it is a valid contract

because the law does not require it to be in writing.
2. A verbally promises to sell his house to B it is not a valid contract because the
law requires that the contract of immovable property must be in writing.
Classifications of Contract
1. Contracts on the basis of creation:
a) Express contract: Express contract is one which is made by words spoken or written.
Example No. 1: X says to Y, will you buy a car for ₹. 100000? Y says to X, I am
ready to buy your car for ₹. 100000. It is an express contract made rally.
Example No. 2: X writes a letter to Y, I offer to sell my car for ₹. 100000 to you.
Y send a letter to Y, I am ready to buy your car for ₹. 100000. It is an express
contract made in writing.
b) Implied contract: An implied contract is one which is made otherwise than by works
spoken or written. It is inferred from the conduct of a person or the circumstance of the particular
case.
Example: X, a coolie in uniform picks up the bag of Y to carry it from railway

platform to the ------ without being used by Y to do so and Y allow it. In this case
there is an implied offer by the coolie and an implied acceptance by the
passenger. Now, there is an implied contract between the coolie and the
passenger is bound to pay for the services of the coolie.
c) Quasi or constructive contract:
It is a contract in which there is no intention either side to make a contract, but the law imposes
contract. In such a contract eights and obligations arise not by any agreement between the
practice but by operation of law.
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e.g. where certain books are delivered to a wrong address the addresses is
under an obligation to either pay for them or return them.
2. Contracts on the basis of execution:
a) Executed contract: It is a contract where both the parties to the contract have fulfilled their
respective obligations under the contract.
Example: X offer to sell his car to Y for ₹. 1 lakh, Y accepts X offer. X delivers the
car to y and Y pays ₹. 1 lakh to X. it is an executed contract.
b) Executory contract: It is a contract where both the parties to the contract have still to
perform their respective obligations.
Example: X offers to sell his car to y for ₹ . 1 lakh. Y accepts X offer. It the car
has not yet been delivered by X and the price has not yet been paid by Y, it is
an Executory contract.
c) Partly executed and partly executory contract: It is a contract where one of the parties to
the contract has fulfilled his obligation and the other party has still to perform his obligation.
E.g. X offers to sell his car to y for ₹. 1 lakh on a credit of 1 month. Y accepts X
offer. X sells the car to Y. here the contract is executed as to X and Executory as
to Y.
3. Contracts on the basis of enforceability:
a) Valid contract: A contract which satisfies all the conditions prescribed by law is a valid
contract.
E.g. X offers to marry y. y accepts X offer. This is a valid contract.
b) Void Contract: the term void contract is described as under section 2(j) of I.CA, 1872, A
contract which cases to be enforceable by law becomes void when it ceases to be enforceable.
In other words, a void contract is a contract which is valid when entered into but which
subsequently became void due to impossibility of performance, change of law or some other
reason.
E.g. X offers to marry Y, Y accepts X offer. Later on, Y dies this contract was
valid at the time of its formation but became void at the death of Y.
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c) Void Agreement: According to Section 2(g), an agreement not enforceable by law is said
to be void. Such agreements are void- ab- initio which means that they are unenforceable right
from the time they are made.
E.g. in agreement with a minor or a person of unsound mind is void –ab-initio

because a minor or a person of unsound mind is incompetent to contract.
d) Voidable contract: According to section 2(i) of the Indian contract act, 1872, arrangement
which is enforceable by law at the option of one or more of the parties thereon but not at the
option of the other or other, is a voidable contract. In other words, A voidable contract is one
which can be set aside or avoided at the option of the aggrieved party. Until the contract is set
aside by the aggrieved party, it remains a valid contract. For e.g. a contract is treated as voidable
at the option of the party whose consent has been obtained under influence or fraud or
misinterpretation.
E.g. X threatens to kill Y, if the does not sell his house for ₹. 1 lakh to X. Y sells
his house to X and receives payment. Here, Y consent has been obtained by
coercion and hence this contract is void able at the option of Y the aggrieved
party. If Y decides to avoid the contract he will have to return ₹. 1 lakh which he
had received from X. If Y does not exercise his option to repudiate the contract
within a reasonable time and in the meantime Z purchases that house from X
for 1 lakh in good faith. Y cannot repudiate the contract.
e) Illegal Agreement: An illegal agreement is one the object of which is unlawful. Such an
agreement cannot be enforced bylaw. Thus, illegal agreements are always void – ab- initio (i.e.
void from the very beginning)
e.g. X agrees to y ₹. 1 lakh Y kills Z. Y kill and claims ₹. 1 lakh. Y cannot recover
from X because the agreement between X and Y is illegal and also its object is
unlawful.
f) Unenforceable contract: It is contract which is actually valid but cannot be enforced

because of some technical defect (such as not in writing, under stamped). Such contracts can be
enforced if the technical defect involved is removed.
4. Classification of Contracts according to performance
According to the extent of performance of contracts, contracts may be classified as

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1. Unilateral Contract
It is also called as one-sided contract. In a unilateral contract, only one party has to satisfy his
obligation at the time of the formation of it, the other party having fulfilled his obligation at the
time of the contract or before the contract comes into existence.
For example, A takes a public auto to go to Mount Road. A contract comes into
existence as soon as A was dropped in Mount Road. By that time, auto man has
fulfilled his obligation, only A has to fulfil his obligation i.e. paying the auto-
man.
2. Bilateral Contract
A contract is said to be a bilateral contract where the obligations of both the parties to the
contract are pending at the time of formation of the contract. In this type of contract, a promise
on one side is exchanged for a promise on the other.
For example, A promises to stitch a shirt and B promises to pay Rs.750. Here A
promises to stitch the Shirt and B promises to pay. Thus, each party is both a
promisor and a promisee.
Breach of contract
What do you mean by breach of contract?
When any party to a contract, whether oral or written, fails to perform any of the contract’s
terms, they may be found in breach of contract. While there are many ways to breach a contract,
common failures include failure to deliver goods or services, failure to fully complete the job,
failure to pay on time, or providing inferior goods or services. In other words, a breach of
contract is a broken promise to do or provide something. To explore this concept, consider the
following breach of contract definition.
Definition of Breach of Contract
1. An unjustifiable failure to perform terms of a contract.
2. A violation of contract through failure to perform, or through interference with the

performance of the contractual obligations.
Different ways to breach a contract
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Types of Breaches
There are four different types of breaches of contract:
1. Actual Breach
Most breaches of contracts are one of two types: actual or anticipatory. Actual breaches occur
when a party fails to fulfil her obligations on the date performance is due, or when a party
performs her obligations and the other party refuses to perform.
2. Anticipatory Breach
Anticipatory breach occurs when a party refuses to perform her obligations under the contract
before the due date of performance. For example, if a party agrees to sell her car to a buyer in
five days, but then reneges on day three, she is anticipatorily breaching the contract.
3. Minor Breach
A contract breach can either be minor or material. A minor breach, also known as a partial
breach, is a failure to complete a minor, non-essential part of a contract. Although it is
technically a breach, the contract can still be completed.
4. Material Breach
A material breach, on the other hand, is a substantial breach in contract terms usually excusing
the non-breaching party from performing and giving her the right to sue for damages. For
example, in a home purchase contract, a seller refusing to give the buyer the keys to the home
after the buyer has completed all contract terms is a material breach.
Remedies for breach of contract
1. Compensatory damages:
This is the most common breach of contract remedy. When compensatory damages are awarded,
a court orders the person that breached the contract to pay the other person enough money to
get what they were promised in the contract elsewhere.
For example, suppose you hire and pay someone to clean your house for $100,
but he is unable to do it. You search for a new cleaning service, and the cheapest
one you find will clean your house for $150. If this cost is found to be reasonable,
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your first cleaner would have to pay you $150 in compensatory damages,
allowing you to get your house professionally cleaned as the contract intended.
2. Restitution:
When a court orders restitution, they tell the person that breached the contract to pay the other
person back. In the example above, the court would order the first cleaner to pay you back $100,
since that's what you paid him to clean your house.
3. Punitive damages:
This is a sum of money intended to punish the breaching party, and is usually reserved for cases
in which something morally reprehensible happened, such as a manufacturer deliberately selling
a retailer unsafe or substandard goods.
4. Nominal damages:
A court awards nominal damages when there has been a breach of contract but no party to the
contract suffered any harm.
5. Liquidated damages:
These are damages that the parties agree to pay in the event a contract is breached.
6. Quantum Meruit:
A court can award one party payment for what they deserve for any work that she performed
before the other party breached the contract. For example, if the cleaner in the example above
had cleaned half the house, and then you decided you didn't want him to finish, he can demand
$50 as quantum meruit. Translated from Latin, the term means "as much as he deserved."
7. Remedies in Equity
A remedy in equity is when the court orders someone do something. This can also be called
"injunctive relief." In breach of contract cases, this can look like any of the following:
a. Cancellation: The court cancels the contract and decides that the parties are no longer
bound by it.
b. Specific Performance: This is when the court forces the breaching party to perform the
service or deliver the goods that they promised in the contract. This is typically reserved for
cases when the goods or services are unique and no other remedy will suffice.
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CASE STUDY ON BREACH OF CONTRACT
Nike Drags Virat Kohli To Court for Breach of Contract
Aug 21, 2013, 19:19 IST | Agencies
In Its Suit, The Sports Giant Has Claimed That Team India's Rising Star
Virat Kohli Breached Their Contract by Disagreeing to Continue as Its
Brand Ambassador Till 2014.
The Karnataka High Court on Wednesday ordered issuance of emergent notice

to cricketer Virat Kohli on a suit filed by sports giant Nike accusing him of
breach of an endorsement contract with it.
Justice Huluvadi G Ramesh directed Kohli to maintain status quo for the next
four weeks regarding endorsement deal signed with Nike and adjourned the
case.
In its suit filed on Tuesday, Nike claimed Kohli had breached the contract by
disagreeing to continue as its brand ambassador till 2014. The five-year
contract from 2008 was extendable by one year.
Virat Kohli in legal trouble.
And a media report says that Nike entered into a contract with Virat Kohli from
January 1, 2007 to December 31, 2007. The
deal was renewed for the period between
August 1, 2008 and July 31, 2013 for
exclusive endorsement rights.
According to The Hindu, Kohli was paid

Rs.1.42 crore for the contract that carried a
clause for extension for another year i.e. till 31
July, 2014 with certain conditions.
Nike, in its suit, has pleaded with the court to restrain Kohli from entering into
or negotiating any endorsement deal with any third party until the expiry of
the deal, company counsel Aditya Sondhi said.
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Important questions to be referred
2 Marks questions
1. Define contract?
2. What is agreement?
3. What is an implied contract?
4. What do you mean by breach of contract?
6 & 14 marks questions
1. What are the classification of Contract?
2. Explain the remedies for breach of contract?
UNIT 2 (B): CONTRACT LAWS
Indian Sale of Goods Act, 1930: Definition of contract of sale, essentials of contract of sale,
conditions and warrantees, rights and duties of buyer, rights of an unpaid seller.
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Sales of goods act 1930
Till 1930, transactions relating to sale and purchase of goods were regulated by the Indian
Contract Act,1872.
In 1930, Sections 76 to 123 of the Indian Contract Act, 1872 were repealed and a separate Act
called ‘The Indian Sale of Goods Act,1930 was passed.
It came into force on 1st July, 1930.With effect from 22ndSeptember,1963, the word ‘Indian ‘was
also removed. Now, the present Act is called ‘The sales of goods act,1930’. This Act extends
to the whole of India except the State of Jammu and Kashmir.
Scope of the Act
The sale of Goods Act deals with ‘Sale of Goods Act,1930,’contract of sale of goods is a
contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for
a price.” ‘Contract of sale’ is a generic term which includes both a sale as well as an agreement
to sell.
Meaning and Definition of contract of sale
What is Contract of Sale of goods?
Contract of sale of goods is a contract, whereby, the seller transfers or agrees to transfer the
property in goods to the buyer for a price. There can be a contract of sale between one part-
owner and another.
In other words, under a contract of sale, a seller (or vendor) in the capacity of the owner, or part-
owner of the goods, transfers or agrees to transfer the ownership in goods to the buyer (or
purchaser) for an agreed upon value in money (or money equivalent), called the price, paid or
the promise to pay same.
A contract of sale may be absolute or conditional depending upon the desire of contracting
parties.
Definition
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According to Section 4 of the Sale of Goods Act a contract of the sale of goods is a
contract whereby the seller transfers, or agrees to transfer, the property in (i.e., ownership of)
goods to the buyer for a price.
Essentials elements of a Contract of Sale
The following six features are essential elements of any contract of sale of goods.
▪ Goods
▪ Price
▪ Two parties
▪ Transfer of ownership
▪ All Essentials of a Valid Contract of Sale
▪ Includes both a ‘sale ‘and ‘an agreement to sell ‘
1. Two Parties:
A contract of sale of goods is bilateral in nature wherein property in the goods has to pass from
one party to another. One cannot buy one’s own goods.
For example, A is the owner of a grocery shop. If he supplies the goods (from the stock meant
for sale) to his family, it does not amount to a sale and there is no contract of sale. This is so
because the seller and buyer must be two different parties, as one person cannot be both a seller
as well as a buyer. However, there shall be a contract of sale between part owners.
Suppose A and B jointly own a television set, A may transfer his ownership in the television set
to B, thereby making B the sole owner of the goods. In the same way, a partner may buy goods
from the firm in which he is a partner, and vice-versa.
However, there is an exception against the general rule that no person can buy his own goods.
Where a Pawnee sells the goods pledged with him/her on non-payment of his/her money, the
pawnor may buy them in execution of a decree.
2. Goods:
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The subject matter of a contract of sale must be goods. Every kind of movable property except
actionable claims and money is regarded as ‘goods’. Contracts relating to services are not
considered as contract of sale. Immovable property is governed by a separate statute, ‘Transfer
of Property Act’.
3. Transfer of ownership:
Transfer of property in goods is also integral to a contract of sale. The term ‘property in goods’
means the ownership of the goods. In every contract of sale, there should be an agreement
between the buyer and the seller for transfer of ownership. Here property means the general
property in goods, and not merely a special property.
Thus, it is the general property, which is transferred under a contract of sale as distinguished
from special property, which is transferred in case of pledge of goods, i.e., possession of goods
is transferred to the pledgee or Pawnee while the ownership rights remain with the pledger.
Thus, in a contract of sale there must be an absolute transfer of the ownership. It must be noted
that the physical delivery of goods is not essential for transferring the ownership.
4. Price:
The buyer must pay some price for goods. The term ‘price’ is ‘the money consideration for a
sale of goods’. Accordingly, consideration in a contract of sale has necessarily to be in money.
Where goods are offered as consideration for goods, it will not amount to sale, but it will be
called barter or exchange, which was prevalent in ancient times.
Similarly, if a person offers the goods to somebody else without consideration, it amounts to a
gift or charity and not sale. In explicit terms, goods must be sold for a definite amount of money,
called the price. However, the consideration can be partly in money and partly in valued up
goods. Furthermore, payment is not necessary at the time of making the contract of sale.
5. All essentials of a Valid contract:
A contract of sale is a special type of contract, therefore, to be valid, it must have all the essential
elements of a valid contract, viz., free consent, consideration, competency of contracting parties,
lawful object, legal formalities to be completed, etc. A contract of sale will be invalid if
important elements are missing. For instance, if A agreed to sell his car to B because B forced
him to do so by means of undue influence, this contract of sale is not valid since there is no free
consent on the part of the transferor.
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6. Includes both a ‘Sale’ and ‘An Agreement to Sell’:
The ‘contract of sale’ is a generic term and includes both sale and an agreement to sell. The
sale is an executed or absolute contract whereas ‘an agreement to sell’ is an executory contract
and implies a conditional sale.
A contract of sale can be made merely by an offer, to buy or sell goods for a price, followed by
acceptance of such an offer. Interestingly, neither the payment of price nor the delivery of goods
is essential at the time of making the contract of sale unless otherwise agreed.
Subject to the provisions of the law for time being in force, a contract of sale may be made
either orally or in writing, or partly orally and partly in writing, or may even be implied from
the conduct of the parties.
Conditions & Warranty
Meaning of Conditions [Section 12(2)]
A condition is a stipulation
1. Which is essential to the main purpose of the contract
2. The breach of which gives the aggrieved party a right to terminate the contract.
Meaning of Warranty [Section 12(3)]

A warranty is a stipulation
1. Which is collateral to the main purpose of the contract
2. The breach of which gives the aggrieved party a right to claim damages but not a right
to reject goods and to terminate the contract.
Distinguish Between Conditions and Warranties
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Sl Basis Condition Warranty

no
1 Meaning A requirement or event that should A warranty is an assurance
be performed before the given by the seller to the buyer
completion of another action, is about the state of the product,
known as Condition. that the prescribed facts are
genuine.
2 In the case of The party can bring the contract to The party can only claim
Breach an end. damages.
Condition/Warranty
3 What is it? The party can only claim It is a subsidiary provision

damages. related to the object of the
contract.
4 Superiority of A condition has a direct link with A breach of warranty may not
Condition: the essential party of the contract. be treated as a breach of
condition.
5 Violation Violation of condition can be Violation of warranty does
regarded as a violation of the not affect the condition.
warranty.
6 Basic difference A breach of condition can also be A breach of warranty cannot

considered as a breach of be considered as a breach of
warranty. condition.
Types of Conditions and Warranties
1. Express Conditions & Warranties: -

Conditions and warranties are those which are included in clear words and all parties are agree
at the time of contract.
Example
These are expressly provided in the contract. For example, a buyer desires to buy a Sony TV
Model No. 2020.Here, model no. is an express condition. In an advertisement for Sony TV for
5 years is an express warranty.
2. Implied conditions: -
Those conditions are not included in the contract but the law presumes their existence in the
contract are called implied conditions.
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1. Condition as to title {sec. 14(a)} or Right to sell.

This right is considered as an implied condition in every sale contract. It is presumed that he
can sell the goods and he can enter in sale agreement.
2. Sale by Description {sec 15}

In this case implied condition is that goods shall the correspond with the description. A buyer
can reject if the goods if these are not according the description.
3. Sale by Sample {sec 17}

In this case goods must be supplied according the sample agreed upon condition.
i. The buyer may be able to compare the sample with the bulk.
ii. The goods should be free from any defect.
iii. The bulk should match with the quality of the sample.
4. Sale by Sample & Description {sec 15}

In this case goods supplied must correspond with sample and description both. So there is
implied condition in it that if bulk does not match with one even then buyer may reject the
goods.
5. Condition of Merchantable Quality {sec 16 (2)}

Merchantable quality means that the goods must be sale able in the market as goods of that
description are sold. In case of any defect a seller must inform the buyer. It is implied
condition.
6. Conditions as Quality to Fitness {16 (1)}

Sometimes buyer informs the seller that he wants to purchase the goods for particular purpose.
It is implied condition that goods shall serve the purpose of buyer. As the buyer relays on the
seller’s skill then seller should provide the goods according the description.
7. Wholesomeness Condition
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It means conductive to health. When someone makes a sale of contract about the eatable
goods this condition is applied. If someone supply the goods and it damages to health then
supplier will be liable for damages.
Example: - Sam’s Food Company supplied food on the marriage party of Mr. Vicky. After
eating the food people were infected and died. The company was held liable in damages.
8. Conditions implied by custom [Section 16(3)]

Condition as to quality or fitness for a particular purpose may be annexed by the usage of
trade.
2 (A) Implied warranties
1. Possession of Goods {sec 14(b)}

It is an implied warranty on the part of the seller that buyer shall enjoy the quiet possession of
goods sold to him without any disturbance. In case of any disturbance a buyer can claim the
damages from the seller.
2. Dangerous Nature Must Be Disclosed

It is necessary that seller should disclose the dangerous nature of the good sold to the buyer. If
he does not disclose then any type of loss suffered by the buyer will be compensated by the
seller.
Example: - Mr. Noor sold the camel to Mr. Naveed which is very dangerous. But he did not
tell about the nature of the camel. The camel killed to Mr. Baqir son of Mr. Naveed due to the
ignorance of the nature of camel Mr. Noor will be liable to compensate Mr. Naveed.
3. Burden on Property or Warranty of freedom from encumbrances [Section 14(c)]

Before selling the goods, it is necessary that these should be free from any charge or
encumbrance from any third party. If a seller does not tell about such burden on the goods to
the buyer and later on the buyer suffers a loss. The buyer can claim such damages from seller.
Example: - Mr. Khaliq the owner of a horse, pledges it with Mr. Karim. After a month, Mr.
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Khaliq obtains possession of the horse from Mr. Karim for some purpose and sells it to the
Mr. Jawad. Mr. Karim goes to Jawad and tells him the pledge story. Mr. Jawad has to make
the payment of pledged amount to Mr. Karim. In this case of breach of warranty and Mr.
Jawad is entitled to claim compensation from Mr. Khaliq.
Rights of an unpaid seller
What are the Rights of Unpaid Seller?

The seller who has not received price of goods sold or the seller who has got his negotiable
instrument dishonoured will become Unpaid Seller. Sale of goods act, 1930 Section 45 to 55
read about the rights of Unpaid Seller. Those rights can be classified into two groups. They are
as follows.
1. Rights of unpaid seller against Goods

2. Rights of unpaid seller against Buyer
1. What are the Rights of Unpaid Seller against Goods

When goods are in existence and title has not gone to buyer, Unpaid Seller can exercise the
rights against goods. These rights are categorized into three types. They are as follows.
a. Right of lien
b. Right of stoppage in transit
c. Right to Re-Sell
a. Right of lien
Right to retain goods by unpaid seller till amount is recovered is called right of lien. If unpaid
seller wants to exercise right of lien, he has to fulfil the following conditions.
• He must be unpaid seller
• There should be no credit terms in the Contract of Sale.
• After completion of credit period, right of lien can be exercised.
• The unpaid seller should have obtained those goods lawfully.
• Amount must be due on those goods only against which right of lien is decided.
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b. Right of stoppage in transit

Unpaid Seller has right to stop the goods in the transit itself. To exercise this right the
following conditions are to be fulfilled.
• He must be unpaid seller.
• Buyer must be insolvent.
• There should be no credit terms in the Contract of Sale. After expiry of Credit period, this
right can be exercised.
• Amount must be due on those goods only against which this right is desired.
At times the transport company may refuse to deliver the goods to buyer due to any reason.
Then the goods are said to be in transit. At times, the buyer may retain the goods at the
transport company. Then the goods are said to be not in transit.
c. Right to re-sale
The unpaid seller can re-sell the goods for non-payment of price by buyer. He can exercise
this right when the goods are of perishable nature while doing so it is beneficiary to the seller
to give a notice to buyer with regard to resale. If such notice is given seller can claim loss. If
any on resale from the buyer. On the other hand if there is profit on resale the former buyer
cannot claim that profit. If notice is not given the seller has to face adverse consequence. If
there is any loss on re-sale, that loss cannot be recovered from buyer. But in case of profit,
seller has responsibility to pay that amount of profit to buyer.
2. What are the Rights of Unpaid Seller against Buyer

At times it becomes inevitable choice to exercise rights on buyer for non-payment of price.
The unpaid seller can file suits against the buyer as explained below.
a. Right to sue for price

It is fundamental right of buyer to file a suit for recovery of unpaid price. In the case of sale.
Suit will be made for price balance, but not for compensation.
b. Right to sue to interest
If the buyer makes unreasonable delay for making payment, the seller has right to claim
interest also.
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c. Right to sue for compensation

When an agreement to sell is breached, the seller can see only for compensation for the breach
of Contract. Under such circumstances he cannot sue for price.
d. Right to Sue for anticipatory contract
When an agreement to sell is breached by buyer before date of performance. It is called
anticipatory breach. Then also seller can sue for compensation.
2 marks questions
1. Define contract of sales?
2. Give the meaning of conditions?
3. What is warranty?
6/14 marks questions

1. Explain the types of conditions and Warranties?
2. Difference between condition and Warranty?
3. Explain the rights and Duties of Buyer?
4. What are the rights of unpaid seller?
5. Brief the essentials elements of contract of sale?
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UNIT 3- ENVIRONMENTAL LAW

Environment Protection Act, 1986: Objects of the Act, definitions of important terms:
environment, environment pollutant, environment pollution, hazardous substance and occupier,
types of pollution, rules and powers of central government to protect environment in India.
Introduction
The Environment (Protection) Act was enacted in the year 1986. It was enacted with the main
objective to provide the protection and improvement of environment and for matters connected
therewith. The Act is one of the most comprehensive legislations with pretext to protection and
improvement of environment.
The Constitution of India also provides for the protection of the environment. Article 48A of
the Constitution specifies that the State shall endeavour to protect and improve the environment
and to safeguard the forests and wildlife of the country. Article 51 A further provides that every
citizen shall protect the environment.
Objectives of the Act

As mentioned earlier, the main objective of the Act was to provide the protection and
improvement of environment and for matters connected therewith. Other objectives of
implementation of the EPA are:
4. To enact a general law on the areas of environmental protection which were left uncovered
by existing laws. The existing laws were more specific in nature and concentrated on a more
specific type of pollution and specific categories of hazardous substances rather than on
general problems that chiefly caused major environmental hazards.
5. To co-ordinate activities of the various regulatory agencies under the existing laws
6. To provide for the creation of an authority or authorities for environmental protection
7. To provide a deterrent punishment to those who endanger human environment, safety and
health.
History of Act
This act was enacted by the Parliament of India in 1986. As the introduction says, "An Act to
provide for the protection and improvement of environment and for matters connected there
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with: WHEREAS the decisions were taken at the United Nations Conference on the Human
Environment held at Stockholm in June, 1972, in which India participated, to take appropriate
steps for the protection and improvement of human environment. AND WHEREAS it is
considered necessary further to implement the decisions aforesaid in so far as they relate to the
protection and improvement of environment and the prevention of hazards to human beings,
other living creatures, plants and property".[2] This was due to Bhopal Gas Tragedy which was
considered as the worst industrial tragedy in India.
SHORT TITLE, EXTEND AND COMMENCEMENT
(1) This Act may be called the Environment (Protection) Act, 1986.
(2) It extends to the whole of India.
(3) It shall come into force on such date as the Central Government may, by notification in the
Official Gazette, appoint and different dates may be appointed for different provisions of this
Act and for different areas.1
2.DEFINITIONS of Important Terms

(a) "environment" includes water, air and land and the inter- relationship which exists among
and between water, air and land, and human beings, other living creatures, plants, micro-
organism and property;
(b) "environmental pollutant" means any solid, liquid or gaseous substance present in such
concentration as may be, or tend to be, injurious to environment;
(c) "environmental pollution" means the presence in the environment of any environmental
pollutant;
(d) "handling", in relation to any substance, means the manufacture, processing, treatment,
package, storage, transportation, use, collection, destruction, conversion, offering for sale,
transfer or the like of such substance;
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(e) "hazardous substance" means any substance or preparation which, by reason of its
chemical or physio-chemical properties or handling, is liable to cause harm to human beings,
other living creatures, plant, micro-organism, property or the environment;
(f) "occupier", in relation to any factory or premises, means a person who has, control over
the affairs of the factory or the premises and includes in relation to any substance, the person
in possession of the substance;
(g) "prescribed" means prescribed by rules made under this Act.
Environmental Pollution and Types of pollution

Pollution is the introduction of contaminants into the natural environment that cause adverse
change. Pollution can take the form of chemical substances or energy, such as noise, heat or
light. Pollutants, the components of pollution, can be either foreign substances/energies or
naturally occurring contaminants.
Air pollution
Air pollution is the introduction of harmful substances in the air that results in detrimental
impacts to the environmental and humanity. Air pollution simply makes the air unclean or
contaminated. It occurs when harmful substances such as foreign gases, odours, dust, or fumes
are released in the air at levels that can harm the comfort or health of animals and humans, or
even destroy plant life.
Examples of air pollutants (substances that pollute the air) include hydrocarbons, organic
compounds, dust particles, carbon monoxide, sulfur oxides, and nitrogen oxides. Air pollution
results from both human and natural activities. Emissions from power plants present a perfect
example of human activities contributing to air pollution whereas volcanic eruptions and forest
fires are some of the natural aspects.
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Water pollution
Water pollution is the act of contaminating water bodies including rivers, oceans, lakes, streams,
aquifers, and groundwater. It occurs when foreign harmful materials like chemicals, waste
matter, or contaminated substances are directly or indirectly discharged into water bodies.
Land Pollution
Land pollution is the destruction or decline in quality of the earth’s land surfaces in term of use,
landscape and ability to support life forms. Many times, it is directly and indirectly caused by
human activities and abuse of land resources.
Land pollution takes place when waste and garbage is not disposed off in the right manner thus,
introducing toxins and chemicals on land. It also occurs when people dump chemical products
to soils in the form of herbicides, fertilizers, pesticides, or any other form of the consumer by-
products. Mineral exploitation equally leads to the decline in quality of the earth’s land surfaces.
As such, it has grave consequences for human health, plant life, and soil quality. Acid rain,
construction sites, solid waste, mineral exploitation, and agricultural chemicals are the primary
causes of land pollution.
Soil Pollution
Soil pollution takes place when chemical pollutants contaminate the soil or degraded by acts
such as mining, clearance of vegetation cover, or topsoil erosion. Usually, it happens when
human activities directly or indirectly introduce destructive chemicals, substances, or objects
into the soil in a way that causes damage to the immediate earthly environment.
As a consequence, soil losses its value of natural minerals and nutrients compositions. Soil
degradation also contributes to soil pollution, and it occurs as a result of over-grazing, over-
farming, or mining activities. The notable causes of soil pollution include agricultural farming
activities, waste dumping on land, industrial activities, mining, and acid rain.
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Noise Pollution
Noise pollution is mostly an undesirable sound or sound which generates horrible discomfort
on the ears. Noise pollution is defined as unpleasant and undesirable sound levels that cause
serious discomfort to all living things. It is measured in decibels (dB).
In the contemporary society, noise has become a permanent aspect owing to the daily activities
such as transportation, industrial manufacturing, and technology. In contrast to the other types
of pollution, noise pollution lacks the element of accumulation in the environment.
It merely occurs when sounds waves of intense pressure reach the human ears and may even
affect the body muscles due to sound vibrations. Noise pollution similarly affects marine and
wildlife animals in the same manner it affects humans, and can even cause their death.
Thermal Pollution
Thermal pollution occurs when water bodies are degraded in terms of altering their
temperatures. Commonly, it happens when people or industries undertake activities that
suddenly decrease or increase the temperature of a natural water body which may include lakes,
rivers, oceans or ponds.
In the current era, thermal pollution is a huge menace and is mainly influenced by power plants
and industrial manufacturers that use water as a coolant.
Therefore, thermal pollution is one aspect of the wider subject of water pollution. The alterations
of natural water resource temperatures can have dire consequences on aquatic life and the local
ecosystems.
Industrial Pollution
Industrial pollution is the release of wastes and pollutants generated by industrial activities into
the natural environment including air, water, and land. The pollutants and wastes from industries
encompass air emissions, deposit of used water into water resources, landfill disposal, and
injection of toxic materials underground. Industrial pollution can adversely damage plants, kill
animals, cause ecosystem imbalance, and degrade the quality of life.
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They release smoke, effluents, material wastes, toxic by-products, contaminated residues, and
chemical consumer products that eventually end up in the environment thereby causing
pollution.
Light Pollution
Light pollution occurs due to lengthened and excessive use of artificial lights, such that it results
in the brightening of the skies at night. As a consequence, it upsets the activities and natural
cycles of wildlife and also affects the welfare of humans. Whenever artificial lights are used
where they are not intended, it causes a nuisance.
Light pollution is also referred to as luminous pollution or photo pollution. The types of light
pollution include glare, light trespass, and sky glow.
POWER OF CENTRAL GOVERNMENT TO TAKE MEASURES TO PROTECT AND

IMPROVE ENVIRONMENT
(1) Subject to the provisions of this Act, the Central Government, shall have the power to take
all such measures as it deems necessary or expedient for the purpose of protecting and
improving the quality of the environment and preventing controlling and abating environmental
pollution.
(2) In particular, and without prejudice to the generality of the provisions of sub-section (1),
such measures may include measures with respect to all or any of the following matters, namely:
--
(i) co-ordination of actions by the State Governments, officers and other authorities--
(a) under this Act, or the rules made thereunder, or
(b) under any other law for the time being in force which is relatable to the objects of this Act;
(ii) planning and execution of a nation-wide programme for the prevention, control and
abatement of environmental pollution;
(iii) laying down standards for the quality of environment in its various aspects;
(iv) laying down standards for emission or discharge of environmental pollutants from various
sources whatsoever:
Provided that different standards for emission or discharge may be laid down under this clause
from different sources having regard to the quality or composition of the emission or discharge
of environmental pollutants from such sources;
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(v) restriction of areas in which any industries, operations or processes or class of industries,
operations or processes shall not be carried out or shall be carried out subject to certain
safeguards;
(vi) laying down procedures and safeguards for the prevention of accidents which may cause
environmental pollution and remedial measures for such accidents;
(vii) laying down procedures and safeguards for the handling of hazardous substances;
(viii) examination of such manufacturing processes, materials and substances as are likely to
cause environmental pollution;
(ix) carrying out and sponsoring investigations and research relating to problems of
environmental pollution;
(x) inspection of any premises, plant, equipment, machinery, manufacturing or other processes,
materials or substances and giving, by order, of such directions to such authorities, officers or
persons as it may consider necessary to take steps for the prevention, control and abatement of
environmental pollution;
(xi) establishment or recognition of environmental laboratories and institutes to carry out the
functions entrusted to such environmental laboratories and institutes under this Act;
(xii) collection and dissemination of information in respect of matters relating to environmental
pollution;
(xiii) preparation of manuals, codes or guides relating to the prevention, control and abatement
of environmental pollution;
2 marks questions
1. Define hazardous substance?
2. What is environmental pollution?
3. Define occupier?

1. Explain the types of pollution
2. Mention the government rules and powers to protect environment pollution
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UNIT – 4 ECONOMIC LAW

Indian Patent Laws and WTO Patent Rules: Meaning of IPR, invention and non-invention,
procedure to get patent, restoration and surrender of lapsed patent, infringement of patent,
FEMA 1999: Objects of FEMA, salient features of FEMA, definition of important terms:
authorized person, currency, foreign currency, foreign exchange, foreign security, offences and
penalties.
Introduction to Indian patent Laws

The Patents Act 1970, along with the Patents Rules 1972, came into force on 20th April 1972,
replacing the Indian Patents and Designs Act 1911. The Patents Act was largely based on the
recommendations of the Ayyangar Committee Report headed by Justice N. Rajagopala
Ayyangar. One of the recommendations was the allowance of only process patents with regard
to inventions relating to drugs, medicines, food and chemicals.
Later, India became signatory to many international arrangements with an objective of
strengthening its patent law and coming in league with the modern world. One of the significant
steps towards achieving this objective was becoming the member of the Trade Related
Intellectual Property Rights (TRIPS) system.
Meaning of Patent
Patent, is a legal document granted by the government giving an inventor the exclusive right to
make, use, and sell an invention for a specified number of years. Patents are also available for
significant improvements on previously invented items.
WTO Patent Rules

The areas of intellectual property that it covers are: copyright and related rights (i.e. the rights
of performers, producers of sound recordings and broadcasting organizations); trademarks
including service marks; geographical indications including appellations of origin; industrial
designs; patents including the protection of new varieties of plants; the layout-designs of
integrated circuits; and undisclosed information including trade secrets and test data.
The three main features of the Agreement are:
• Standards. In respect of each of the main areas of intellectual property covered by the
TRIPS Agreement, the Agreement sets out the minimum standards of protection to be
provided by each Member. Each of the main elements of protection is defined, namely the
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subject-matter to be protected, the rights to be conferred and permissible exceptions to those

rights, and the minimum duration of protection.
• Enforcement. The second main set of provisions deals with domestic procedures and
remedies for the enforcement of intellectual property rights. The Agreement lays down
certain general principles applicable to all IPR enforcement procedures. In addition, it
contains provisions on civil and administrative procedures and remedies, provisional
measures, special requirements related to border measures and criminal procedures, which
specify, in a certain amount of detail, the procedures and remedies that must be available so
that right holders can effectively enforce their rights.
• Dispute settlement. The Agreement makes disputes between WTO Members about the
respect of the TRIPS obligations subject to the WTO's dispute settlement procedures.
The obligations under the Agreement will apply equally to all Member countries, but
developing countries will have a longer period to phase them in. Special transition
arrangements operate in the situation where a developing country does not presently provide
product patent protection in the area of pharmaceuticals.
Meaning of IPR
Intellectual property rights refer to the general term for the assignment of property rights
through patents, copyrights and trademarks. These property rights allow the holder to
exercise a monopoly on the use of the item for a specified period.
The main purpose of intellectual property law is to encourage the creation of a large
variety of intellectual goods. To achieve this, the law gives people and businesses property
rights to the information and intellectual goods they create, usually for a limited period of
time. Because they can earn profit from them, this gives economic incentive for their
creation.
Meaning of Invention
Section 2(1)(j) of the Patent Act, 2005, defines the "invention" as a new product or as
process involving an inventive step and capable of industrial application.
Under the Act "New invention" is defined under section 2(1)(l) of the Patents Act
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"New invention" means any invention or technology which has not been anticipated by
publication in any document or used in the country or elsewhere in the world before the date
of filing of patent application with complete specification, i.e., the subject matter has not
fallen in public domain or that it does not form part of the state of the art.
Non-Invention
Section 3 of the (Indian) Patents Act, 1970
The following are not patentable in India:-
• An invention, that is frivolous or that claims anything obviously contrary to well
established natural laws;
• An invention, the primary or intended use of which would be contrary to law or morality
or injurious to public health;
• The mere discovery of a scientific principle or the formulation of an abstract theory;
• The mere discovery of any new property or new use for a known substance or of the
mere use of a known process, machine or apparatus unless such known process results
in a new product or employs at least one new reactant;
• A substance obtained by a mere admixture resulting only in the aggregation of the
properties of the components thereof or a process for producing such substance;
• The mere arrangement or rearrangement or duplication of known devices, each
functioning independently of one another in a known way;
• A method of agriculture or horticulture;
• Inventions relating to atomic energy.
• Any process for the medicinal, surgical, curative, prophylactic or other treatment of
human beings or animals.
• Plants and animals in whole or any part thereof other than microorganisms.
• Mathematical or business method or a computer program per se or algorithms.
• literary, dramatic, musical or artistic works, cinematographic works, television
productions and any other aesthetic creations.
• Mere scheme or rule or method of performing mental act or playing game.
• Presentation of information.
• Topography of integrated circuits.
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• An invention which in effect, is traditional knowledge or is based on the properties of

traditional knowledge.
Procedure to Get patent

A patent is a legal right that confers monopoly to a person for his/her invention.
According to the Patents Act, 1970, an ‘invention’ must fulfill three criteria: first, it must be a
new product or a process that did not previously exist; second, it must offer a new technical
improvement as simple changes to a previously known technique cannot be patented; third, the
proposed invention must be useful. For instance, a patent cannot be granted for inventions that
can only be used for an illegal or immoral purpose.
Once a product or process is patented, it cannot be commercially produced, distributed, used,

or sold without the consent of the patent owner.
India grants patent rights on a first-to-apply basis. The application for a patent can be made by
either: (i) the inventor or (ii) the assignee or legal representative of the inventor.
Patent application may also be made jointly by two or more corporations as assignees. A foreign
national resident can also apply and obtain a patent in India.
Patent registration procedure

• File the patent application and get it numbered.
• Request for publication by filing a form. If the request is not made, the patent specification will
be published in the official journal after 18 months from the application date. On the other hand,
by making request, patent specification can be published within one month from filing the form.
• Request for examination within 48 months from the date of filing of the patent application.
Request for expedited examination of patent application can be made by paying extra fee.
• Within 12 – 24 months of filing a request for examination, the first examination report is issued.
This report may raise substantive and procedural objections regarding the patent.
• If objections are raised, the patent applicant must comply with the statement of objections within
six months from the date of the report.
• If the official objections are met in due period, the patent is granted and presented for opposition.
• The patent is open for third party opposition, if any, for a period of one year from the date of
advertisement.
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A patent once granted is valid for 20 years, and requires renewal every year from the third year
of the date of application.
Restoration or Surrender of Lapsed patent
A patent is granted for term of twenty years from the date of filing of the patent. According to
section 53 of Indian Patent act, patentee has to pay renewal fee till the date of possession given
by the patent office. If renewal/maintenance fee not paid by the patent holder within prescribed
time given by the PTO, patent will be lapsed.
(1) Where any patent has ceased owing to the failure of the patentee to pay any prescribed fee
within the prescribed time, the patentee may apply to the Registrar in the prescribed manner for
an order for the restoration of the patent.
(2) Every such application shall contain a statement of the circumstances which have led to the
omission of the payment of the prescribed fee.
(3) If it appears from such statement that the omission was unintentional or unavoidable and
that no undue delay has occurred in the making of the application, the Registrar shall advertise
the application in the prescribed manner, and within such time as may be prescribed any person
may give notice of opposition at the Department of Patents, Designs and Trade Marks.
(4) Where such notice is given the Registrar shall notify the applicant thereof.
(5) After the expiration of the prescribed period the Registrar shall hear the case and, subject to
an appeal to the Government issue an order either restoring the patent subject to any conditions
and restrictions deemed to be advisable or dismissing the application:
Provided that in every order under this section restoring a patent such provisions as may be
prescribed shall be inserted for the protection of persons who may have availed themselves of
the subject-matter of the patent after the patent had ceased.
THE ESSENTIAL REQUIREMENTS TO RESTORE A PATENT:

1. Under Section 60 of the Patents Act 1970, an application for restoration of lapsed patent
should be made by patentee or his legal representative.
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2. Prescribed fee on Form 15

3. Proof to support that failure of the renewal/ maintenance was unintentional.
Although there is no additional fee for Patent of addition, but the patent holder or the patentee
has to submit each form individually for each additional patent with that of the parent restoration
application.
Infringement of Patent
Infringement is the unauthorized use of an invention claimed in a valid patent. Patent
infringement is an unauthorized act of selling, manufacturing, offering to sell, importing or
using in-force patented invention without the permission of a patented owner.
Types of Patent Infringement

• Direct infringement is, of course, making, using, offering to sell, selling or importing into
the US an infringing product during the life of the patent without a license from the patent
holder.
• Indirect patent infringement is the violation of a patent with or without the knowledge of
the infringer. A person or company obtains a patent to prevent other people from using an
idea or invention.
FEMA 1999 Introduction
The Foreign Exchange Management Act, 1999 (FEMA) has been in force from 2000, thus
replacing the old Foreign Exchange Regulation Act (FERA) 1973.
The preamble to FEMA lays down the purpose of the Act is to consolidate and amend the
law relating to foreign exchange with the objective of facilitating external trade and
payments and for promoting the orderly development and maintenance of foreign exchange
market in India.
Main objectives of FEMA
• To reduce restriction on Foreign Exchange

• To increase the flow of foreign exchange in India, under this law you can bring the
foreign exchange to country without any legal barrier
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Features of FEMA
• 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.
• Without general or specific permission of the MA 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 generally.
• Although selling or drawing of foreign exchange is done through an authorized person, the
RBI is empowered by this Act to subject the capital account transactions to a number of
restrictions.
• Residents of 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 by
him/her from someone living outside India.
Provisions/Rules/Regulation of FEMA
1. Provisions regarding dealings in Foreign exchange

According to section 3 of FEMA 2000 “only authorised person under the govt. terms can
deal in foreign exchange in India.
2. Provision regarding holding foreign exchange
According to section 4 of FEMA 2000 “All persons can hold or purchase foreign exchange
in India or outside India.
3. Provision regarding current account transaction
According to section 5 of FEMA 2000 “There is no restriction regarding sale or dealings in
foreign exchange, if it is a current account transaction.
4. Provision regarding Export of goods and services
According to section 7 of 2000 “it is a duty of exporter to declare the true and correct details
of goods which, he has to sell the market outside India must send complete report to RBI.
5. Provisions regarding authorised persons
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6. Provisions regarding contravene and penalties (section 13-15)
Definition of Important Terms
authorized person" means an authorized dealer, money changer, off-shore banking unit or
any other person for the time being authorized under sub-section (1) of section 10 to deal in
foreign exchange or foreign securities;
currency" includes all currency notes, postal notes, postal orders, money orders, cheques,
drafts, traveller’s cheques, letters of credit, bills of exchange and promissory notes, credit
cards or such other similar instruments, as may be notified by the Reserve Bank;
foreign currency" means any currency other than Indian currency;
foreign exchange means foreign currency and includes, -
1. deposits, credits and balances payable in any foreign currency,
2. drafts, traveller’s cheques, letters of credit or bills of exchange, expressed or drawn in

Indian currency but payable in any foreign currency,
3. drafts, traveller’s cheques, letters of credit or bills of exchange drawn by banks,

institutions or persons outside India, but payable in Indian currency;
foreign security" means any security, in the form of shares, stocks, bonds, debentures or
any other instrument denominated or expressed in foreign currency and includes securities
expressed in foreign currency, but where redemption or any form of return such as interest
or dividends is payable in Indian currency;
Offences and Penalties
If any person contravenes any provision of this Act, or contravenes any rule, regulation,
notification, direction or order issued in exercise of the powers under this Act, or
contravenes any condition subject to which an authorization s issued by the Reserve Bank,
he shall, upon adjudication, be liable to a penalty up to thrice the sum involved in such
contravention where such amount is quantifiable, or up to two lakh rupees where the amount
is not quantifiable, and where such contravention is a continuing one, further penalty which
may extend to five thousand rupees for every day after the first day during which the
contravention continues.
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2 marks questions
1. What is patent act?
2. Who is authorised person?
3. Define IPR?
4. Give the meaning of Foreign currency?
5. What is foreign security?
6. Mention the types of Infringement of Patent?
7. State the meaning of Infringement of patent
1. Explain Patent Procedure?
2. Explain the WTO Patent Rules?
3. State the criteria for restoration of Lapsed patent?
4. Mention the objectives and Features of FEMA 1999?
UNIT 4: COMPETITION AND CONSUMER LAWS: 10 Hrs
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The Competition Act, 2002: Objectives of Competition Act, Features of Competition Act, CAT,
offences and penalties under the Act, Competition Commission of India.
Introduction to The Competition Act 2002
An Act to provide, keeping in view of the economic development of the country, for the
establishment of a Commission to prevent practices having adverse effect on competition, to
promote and sustain competition in markets, to protect the interests of consumers and to ensure
freedom of trade carried on by other participants in markets, in India, and for matters connected
therewith or incidental thereto. The Monopolies and Restrictive Trade Practices Act, 1969
[MRTP Act] repealed and is replaced by the Competition Act, 2002, with effect from 01st
September, 2009
Objective of the act
• To ensure fair competition in India

• To prohibit Trade Practices Which causes adverse effect on Competition in markets within
India.
• To curb negative aspects of competition through the competition commissions of India
(CCI).
“Salient features” – of the Competition Act, 2002
• Prohibition of anti-competitive agreements;

• Prohibition of abuse of dominance;
• Regulation of Combinations (acquisitions, mergers and amalgamations of certain size);
• Establishment of Competition Commission of India (CCI);
• Functions and powers of CCI;
• Repeal of the MRTP Act, 1969 and dissolution of the MRTP Commission;
• Transfer of provisions relating to Unfair Trade Practices to Consumer Protection Act,
1986.
Competition Commission of India (CCI)

The Competition Act provides for an adjudicating relief machinery Competition
Commission of India is a statutory body of the Government of India responsible for
enforcing The Competition Act, 2002 throughout India and to prevent activities that have
an appreciable adverse effect on competition in India. It was established on 14 October
2003. It became fully functional in May 2009 with Dhanendra Kumar as its first Chairman.
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(The Commission comprises a Chairperson and six members. Devender Kumar Sikri is the
current Chairperson of the CCI.2018)
The following are the objectives of the Commission.
1. To prevent practices having adverse effect on competition.
2. To promote and sustain competition in markets.
3. To protect the interests of consumers and
4. To ensure freedom of trade
Offence and Penalties Under Competition act 2002
Under the section 43, 44, 45 & 46
Penalty for failure to comply with directions of Commission and Director General. —If any
person fails to comply with a direction given by—
(a) the Commission under sub-section (5) of section 36; or
(b) the Director General while exercising powers referred to in sub-section (2) of section 41, the
Commission shall impose on such person a penalty of rupees one lakh for each day during which
such failure continues.
43A Power to impose penalty for non-furnishing of information on combinations. —If any
person or enterprise who fails to give notice to the Commission under sub-section (2) of section
6, the Commission shall impose on such person or enterprise a penalty which may extend to one
per cent. of the total turnover or the assets, whichever is higher, of such a combination.]
44. Penalty for making false statement or omission to furnish material information. —If any
person, being a party to a combination, —
(a) makes a statement which is false in any material particular, or knowing it to be false; or
(b) omits to state any material particular knowing it to be material, such person shall be liable
to a penalty which shall not be less than rupees fifty lakh but which may extend to rupees one
crore, as may be determined by the Commission.
45. Penalty for offences in relation to furnishing of information. —
(1) Without prejudice to the provisions of section 44, if any person, who furnishes or is required
to furnish under this Act any particulars, documents or any information, —
(a) makes any statement or furnishes any document which he knows or has reason to believe to
be false in any material particular; or
(b) omits to state any material fact knowing it to be material; or
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(c) wilfully alters, suppresses or destroys any document which is required to be furnished as
aforesaid, the Commission shall impose on such person a penalty which may extend to rupees
ten lakh.
(2) Without prejudice to the provisions of sub-section (1), the Commission may also pass such
other order as it deems fit.
46. Power to impose lesser penalty.—The Commission may, if it is satisfied that any producer,
seller, distributor, trader or service provider included in any cartel, which is alleged to have
violated section 3, has made a full and true disclosure in respect of the alleged violations and
such disclosure is vital, impose upon such producer, seller, distributor, trader or service provider
a lesser penalty as it may deem fit, than leviable under this Act or the rules or the regulations:
Provided that lesser penalty shall not be imposed by the Commission in cases where proceedings
for the violation of any of the provisions of this Act or the rules or the regulations have been
instituted or any investigation has been directed to be made under section 26 before making of
such disclosure.
CASE STUDY
If the companies are found guilty, then the CCI has the right to impose a penalty on those
companies which are found guilty, based on the cases filed with the commission.
Competition Commission of India Fines Google Recently the Competition Commission of India
issued an order against search engine giant Google for search bias and imposed a hefty penalty.
According to the Competition Commission of India, it found that Google had abused its dominant
position in online general web search and web search advertising services in India. The order was
passed in response to information filed by Matrimony.com Limited and Consumer Unity & Trust
Society (CUTS) in 2012. The CCI in its orders noted that the allegations against Google in respect
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of search results primarily cantered around the design of Search Engine Result Page (SERP). Based
on the findings of contraventions against Google, CCI has imposed a penalty of Rs.135.86 crore
upon Google after taking into account its revenue from its India operations only.
2 marks questions
1. State the objective of Competition act 2002?

2. Why Penalty is imposed under sec 43?
3. What is CCI? Who is a present chairman of CCI?
1. Explain the concept CCI?

2. Explain the offence and penalty under competition act 2002?
3. Mention the salient features of Competition act?
UNIT 5 (B) CONSUMER PROTECTION ACT 1986
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Consumer Protection Act, 1986: Definition of the terms consumer, consumer dispute, defect,
deficiency, unfair trade practices and services. Rights of the consumer under the Act, Consumer
Redressal Agencies – District Forum, State Commission, National Commission.
Introduction
Introduction:
The Consumer Protection Act 1986 was passed by the Indian Parliament to protect consumer rights
and to redress consumer complaints and resolve consumer disputes.
Every individual is a consumer of goods and services and expects a fair deal against unfair
exploitation.
This Consumer Protection Act applies to the whole of India except the State of Jammu and Kashmir
and covers all goods and services purchased by the consumers and to all sectors — private, public
and cooperative. The objective of the Act is “to provide for better protection of the interests of
consumers and for that purpose to make provisions for the establishment of Consumer Councils and
other authorities for the settlement of consumer disputes and for matters connected therewith”. It
protects the consumers from unfair trading or unfair trade practices.
It is important to note that the Indian Consumer Protection Act is a social welfare legislation and
has been designed to avoid technicalities, procedural delays, procedural requirement, court fees and
costs.
Rights of Consumer Under the Act
The Consumer Protection Act, 1986 provides for the following rights to the consumers:
(a) Right to be heard and to be assured that consumers’ interests will receive due consideration at
appropriate forum;
(b) Right to seek redressal against unfair trade practices or unscrupulous exploitation of consumers;
and
(c) Right to consumer education.
The Consumer Protection (Amendment) Act 1993 adds the following consumer rights:
(d) The right to be assured wherever possible, access to a variety of goods and services at
competitive prices;
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(e) The right to be informed about the quality, potency, purity, standard and price of goods (or
services as the case may be) so as to protect the consumers against unfair trade practices; and
(f) The right to be protected against the marketing of goods (and services) which are hazardous to
life and property.
Consumer Redressal Agencies
Three Tier Consumer Grievances Machinery under the Consumer Protection Act!
1. District Forum:
District forum consists of a president and two other members. The president can be a retired or
working judge of District Court. They are appointed by state government. The complaints for goods
or services worth Rs 20 lakhs or less can be filed in this agency.
The agency sends the goods for testing in laboratory if required and gives decisions on the basis of
facts and laboratory report. If the aggrieved party is not satisfied by the jurisdiction of the district
forum then they can file an appeal against the judgment in State Commission within 30 days by
depositing Rs 25000 or 50% of the penalty amount whichever is less.
2. State Commission:
It consists of a president and two other members. The president must be a retired or working judge
of high court. They all are appointed by state government. The complaints for the goods worth more
than Rs 20 lakhs and less than Rs 1 crore can be filed in State Commission on receiving complaint
the State commission contacts the party against whom the complaint is filed and sends the goods
for testing in laboratory if required.
In case the aggrieved party is not satisfied with the judgment then they can file an appeal in National
Commission within 30 days by depositing Rs 3500 or 50% of penalty amount whichever is less.
3. National Commission:
The national commission consists of a president and four members one of whom shall be a woman.
They are appointed by Central Government. The complaint can be filed in National Commission if
the value of goods exceeds Rs 1 crore. On receiving the complaint the National Commission
informs the party against whom complaint is filed and sends the goods for testing if required and
gives judgment?
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If aggrieved party is not satisfied with the judgment then they can file a complaint in Supreme Court
within 30 days.
Definition of Important Terms
consumer" means any person who—
(i) buys any goods for a consideration which has been paid or promised or partly paid and partly
promised, or under any system of deferred payment and includes any user of such goods other than
the person who buys such goods for consideration paid or promised or partly paid or partly
promised, or under any system of deferred payment when such use is made with the approval of
such person, but does not include a person who obtains such goods for resale or for any commercial
purpose; or
(ii) hires or avails of any services for a consideration which has been paid or promised or partly
paid and partly promised, or under any system of deferred payment and includes any beneficiary of
such services other than the person who 'hires or avails of the services for consideration paid or
promised, or partly paid and partly promised, or under any system of deferred payment, when such
services are availed of with the approval of the first mentioned person but does not include a person
who avails of such services for any commercial purposes;
"consumer dispute" means a dispute where the person against whom a complaint has been made,
denies or disputes the allegations contained in the complaint.
"defect" means any fault, imperfection or shortcoming in the quality, quantity, potency, purity or
standard which is required to be maintained by or under any law for the time being in force under
any contract, express or implied or as is claimed by the trader in any manner whatsoever in relation
to any goods;
"deficiency" means any fault, imperfection, shortcoming or inadequacy in the quality, nature and
manner of performance which is required to be maintained by or under any law for the time being
in force or has been undertaken to be performed by a person in pursuance of a contract or otherwise
in relation to any service;
"unfair trade practice" means a trade practice which, for the purpose of promoting the sale, use
or supply of any goods or for the provision of any service, adopts any unfair method or unfair or
deceptive practice including any of the following practices, namely; —
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(i) falsely represents that the goods are of a particular standard, quality, quantity, grade,
composition, style or model;
(ii) falsely represents that the services are of a particular standard, quality or grade;
(iii) falsely represents any re-built, second-hand, renovated, reconditioned or old goods as new
goods;
(iv) represents that the goods or services have sponsorship, approval, performance, characteristics,
accessories, uses or benefits which such goods or services do not have;
(v) represents that the seller or the supplier has a sponsorship or approval or affiliation which such
seller or supplier does not have;
(vi) makes a false or misleading representation concerning the need for, or the usefulness of, any
goods or services;
(vii) gives to the public any warranty or guarantee of the performance, efficacy or length of life of
a product or of any goods that is not based on an adequate or proper test thereof;
2 marks questions
1. Define Consumer Dispute?

2. Who is a consumer?
3. What is Deficiency?
4. Define unfair trade practices under consumer protection act 1986?
1. Write a short note on consumer redressal agencies?

2. State the rights of consumer under consumer protection act 1986?
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Business Regulation

Bcom 6th Semester

UNIT 1: INTRODUCTION TO BUSINESS LAWS 06 Hrs

Meaning and Definition of Law

4. It regulates human activities- It regulates human behaviour in three ways: Prohibitor,

5. Ignorance of law is not excused.

6. It is a set of rules which is set by the state.

7. It regulates the human conduct.

8. It is created and maintained by the state.

9. It has the certain amount of stability, fixity and uniformity.

11. Its violation leads to punishment.

Meaning and definition of “Business Laws”

Here are a few important features of business law –

Scope of Business laws

The Scope of Business Law can be broadly classified as:

Sources of Business Law

The main sources of Indian Mercantile Law are:

1. English Mercantile Law.

4. Customs and Usage.

6. Commercial treaty and agreements

1. English Mercantile Law

d. A Lex Mercatorian or Law Merchant

• The Indian contract act 1872

4. Customs and Usage

UNIT 2 (A): CONTRACT LAWS 9Hrs

Indian Contract Act, 1872: Definition of Contract, essentials of a valid

b. Legal obligation (enforceable by law)

Essentials elements of a valid Contract

3. A husband promised to pay his wife a household allowance of 30 pounds

1. M, a person of unsound mind, enters into an agreement with S to sell his

1. A compels B to enter into a contract on the point of pistol. It is not a valid

5. Lawful Object: Objectives of an agreement should be lawful. It must not be illegal or

A promise to pay B Rs.5 thousand if B beats C. The agreement is illegal as its

6. Lawful Consideration: Something in return is Consideration. In every contract, agreement

2. A promise to obtain for B employment in the public service, and B promise to

7. Certainty and Possibility of Performance: The agreements, in which the meaning is

1. A promised to sell 20 books to B. It is not clear which books A has promised

3. O agreed to purchase a van from S on hire-purchase terms. The price was to

1. A agrees with B to discover treasure by magic, the agreement is not

1. A Verbally promises to sell his book to y for Rs.200 it is a valid contract

1. Contracts on the basis of creation:

Example: X, a coolie in uniform picks up the bag of Y to carry it from railway

c) Quasi or constructive contract:

2. Contracts on the basis of execution:

3. Contracts on the basis of enforceability:

E.g. X offers to marry y. y accepts X offer. This is a valid contract.

E.g. in agreement with a minor or a person of unsound mind is void –ab-initio

f) Unenforceable contract: It is contract which is actually valid but cannot be enforced

4. Classification of Contracts according to performance

According to the extent of performance of contracts, contracts may be classified as

What do you mean by breach of contract?

Definition of Breach of Contract

1. An unjustifiable failure to perform terms of a contract.

2. A violation of contract through failure to perform, or through interference with the

Different ways to breach a contract

There are four different types of breaches of contract:

Remedies for breach of contract

CASE STUDY ON BREACH OF CONTRACT

Nike Drags Virat Kohli To Court for Breach of Contract

Aug 21, 2013, 19:19 IST | Agencies

The Karnataka High Court on Wednesday ordered issuance of emergent notice

According to The Hindu, Kohli was paid