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Name
Roll No.
Course MBA-Semester-3
Legal Aspects of
Subject
Business
Subject Code MB0035-Set-1
1.All contract are agreements, but all agreements are not contract-
Discuss:
A valid contract must contain the ten valid elements which are:
· Lawful Consideration
. Capacity of Parties
· Free Consent
. Lawful Object
· Certainty
· Possibility of Performance
Agreement between two parties does not create any legal obligation or
relationship.
But a contract must be expressed and clear that no ambiguity can occur.
Thus, All agreements are not contract and All contracts are agreement.
No capacity to contract:
The inability of a person to enter into a valid contract under any
circumstances. Such inability can arise when a person has been adjudicated
insane or if he or she is an officer of a corporation who is not authorized to
execute a contract on behalf of the corporation. Lack of capacity would also
cover acts of a corporation beyond the powers as defined in the articles of
incorporation.
When the law limits or bars a person from engaging in specified activities,
any agreements or contracts to do so are either voidable or void for
incapacity. Sometimes such legal incapacity is referred to as incompetence.
Natural persons
• Infancy
The definition of an infant or minor varies, each state reflecting local
culture and prejudices in defining the age of majority, marriageable
age, voting age, etc. In many jurisdictions, legal contracts, in which
(at least) one of the contracting parties is a minor, are voidable by the
minor. For a minor to undergo medical procedure, consent is
determined by the minor's parent(s) or legal guardian(s).
• Drunkenness/drug abuse
• Bankruptcy
During times of war or civil strife, a state will limit the ability of its
citizens to offer help or assistance in any form to those who are acting
against the interests of the state. Hence, all commercial and other
contracts with the "enemy", including terrorists, would be considered
void or suspended until a cessation of hostilities is agreed.
The effect of a breach of contract (at least where the breach consists
of nonperformance or defective performance by the agreed time of
performance) depends upon the classification of the term which has been
breached as either a condition, warranty or in nominate. The right to
repudiate and treat the primary obligations as discharged arise in the case of
the conditions but not warranties, and may arise the case of in nominate
terms depending upon the seriousness of the breach.
In certain circumstances one party may indicate an intention not to perform
his obligations in advance of the time for performance. This has become
known as “ anticipatory breach” although it is more accurately described as “
breach by anticipatory repudiation”.
A person who gives the guarantee is called the Surety or Guarantor and the
person in respect to whose default the guarantee is given is called the
Creditor. The person to whom the guarantee is given is called the Creditor.
A guarantee may be either oral or written. Though consideration is essential
for a contract of guarantee, it is not necessary, that benefit should accrue to
the surety. It is sufficient if there is some benefit to the principal debtor.
Section 127 of the Act clearly states, anything done, or any promise made,
for the benefit of the principal debtor, may be sufficient consideration to the
surety for giving the guarantee.
Example: A and B visit a shop. C is the owner of the shop. B says to C that
let A have the goods on credit he does not pay I will. This is a contract of
guarantee. Here B is the surety, C is the creditor and A is the principal
debtor.
Continuing Guarantee:
A valid contract must contain the ten valid elements which is not possible in
terms of taking a person to moon:
· Lawful Consideration
. Capacity of Parties
· Free Consent
. Lawful Object
· Certainty
· Possibility of Performance
Moreover the company which agrees to take the person to moon, cannot
make it in a contract that they will take him on what specific date or method
or which space vehicle.
Name
Course MBA-Semester-3
Legal Aspects of
Subject
Business
Subject Code MB0035-Set-2
Focus: Good companies stay focused on what they know and can do well.
When companies search for new ideas, they often drift into unknown territory
and get in trouble. Good companies just keep growing and expanding into
familiar territory. Shutterfly is a wonderful example of a company that’s
growing, but it grows by expanding within the social expressions business,
helping communities of people share photographs in hundreds of ways.
Niches can be very large markets.
a. Name clause:
The name of the company is mentioned in the name clause. A public limited
company must end with the word 'Limited' and a private limited company
must end with the words 'Private Limited'. The company cannot have a
name, which in the opinion of the Central Government, is undesirable. A
name, which is identical with or nearly resembles the name of another
company in existence, will not be allowed. A company cannot use a name,
which is prohibited under the Names and Emblems (Prevention of Misuse Act,
1950 or use a name, suggestive of connection to government or State
patronage.
The name of a company may be altered on obtaining prior approval of the
Central Government for the altered name, passing a special resolution at a
general meeting of the company to that effect and obtaining a new certificate
of incorporation, signifying the name change.
b. Domicile clause:
Any change in the registered office must be intimated in Form No. 18 to the
Registrar of Companies within 30 days. The registered office of the company
is the official address of the company where the statutory books and records
must be normally kept. Every company must affix or paint its name and
address of its registered office on the outside of the every office or place at
which its activities are carried on. The name must be written in one of the
local languages and in English.
• Change of the registered office within the same city or village or town
may be done by a board resolution.
• Change of the registered office from one place to another place within
the same state may be done by special resolution and obtaining
approval of the Regional Director.
• Change of Registered Office from one place to another place in another
state may be done by special resolution and obtaining order of
Company Law Board on petition being made.
c. Objects clause:
This clause is the most important clause of the company. It specifies the
activities which a company can carry on and which activities it cannot carry
on. The company cannot carry on any activity, which is not authorized by its
MA. This clause must specify:
In case the companies, other than trading corporations whose objects are not
confined to one state, the states to whose territories the objects of the
company extend must be specified.
d. Liability clause:
e. Capital clause:
f. Association clause:
Cyber crime refers to all the activities done with criminal intent in
cyberspace or using the medium of Internet. These could be either the
criminal activities in the conventional sense or activities, newly evolved with
the growth of the new medium. Any activity, which basically offends human
sensibilities, can be included in the ambit of Cyber crimes.
IMPORTANCE OF IT ACT :
(b) Where has been under section 30 of the new Act i.e. where the
parties settled the dispute and the arbitral tribunal has recorded
the settlement in the form of an arbitral award on agreed terms.
4. The award should be dated i.e. the date of the making of the award
should be mentioned in the award.
6. The arbitral tribunal may include in the sum for which award is
made, interest up to the date of award and also a direction
regarding future interest. The rate of interest shall be eighteen per
cent.
There is increasing backlash from the public over use of the label
"consumer" rather than "customer", with many finding it offensive and
derogatory.
In intelligence studies
Main Provisions
- Compulsory registration of shop/establishment within thirty days of
commencement of work.
- Lays down guidelines for spread-over, rest interval, opening and closing
hours, closed days, national and religious holidays, overtime work.
- Rules for annual leave, maternity leave, sickness and casual leave, etc.
- Obligations of employers.
- Obligations of employees.