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    ASSIGNMENT

    Name

    Roll No.

    Course MBA-Semester-3

    Subject Legal Aspects of Business

    Subject Code MB0035-Set-1

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    1.All contract are agreements, but all agreements are not contract-Discuss:

    A contract is an agreement between parties that is legally enforceable.

    A simple "agreement" is an arrangement between the parties which may or

    may not contain the necessary elements to be enforceable before a court of

    law.

    In Simple Words:

    A Contract is enforceable by law while an Agreement is not enforceable by

    law.

    A valid contract must contain the ten valid elements which are:

    Offer and Acceptance

    Intention to Create Legal Relations

    Lawful Consideration

    . Capacity of Parties

    Free Consent

    . Lawful Object

    Writing and Registration

    Certainty

    Possibility of Performance

    . Not Expressly Declared Void

    Agreement is emerged from willingness of both parties to do or not to do

    something. As no legal obligation is required here so just any two parties can

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    mutually dispute on any matter. Agreement is emerged this way.

    But all true contracts begin with an agreement.

    An agreement may be legal or illegal. As it is not bound by the law it needs

    not to follow the rules.

    On the other hand only legally enforceable agreement is contract. So it can

    never be illegal.

    Agreement may be against of human rights. It will create no problem

    because the parties will not seek help from the law.

    A contract can never be against of human rights.

    Purpose of an agreement can be illegal.

    But purpose of a contract can never be illegal.

    An agreement can be with an impossible matter. As it is not banded by the

    law people can make agreement on any matter.

    Contract cannot be with any impossible matter.

    Agreement between two parties does not create any legal obligation or

    relationship.

    As contract is enforceable by law its obvious purpose is to create a lawful

    relationship.

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    An agreement may be expressed or implied.

    But a contract must be expressed and clear that no ambiguity can occur.

    An agreement is not dependent on contract.

    But a contract is dependent on any agreement.

    There is no obligation to write or register an agreement.

    Each and every contract must be written and registered.

    Any two parties can make an agreement.

    But the parties of contract must be capable of contracting.

    Thus, All agreements are not contract and All contracts are agreement.

    2. Not all persons have the capacity to enter into a contract-Discussthe statement

    The legal ability of people or organizations to enter into a valid contract. A

    person entering into a contract will have full, limited, or no capacity to

    contract.

    Full capacity to contract:

    The unlimited ability of a person to enter into a contract that is legally

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    binding. Most adults, including those who are illiterate, have full capacity to

    contract and are said to be competent parties.

    Limited capacity to contract:

    The ability of a person to enter into a contract that is legally binding upon

    himself or herself only under certain circumstances. For example, minors

    have limited ability to contract, which means that the contract of a minor is

    valid only if the minor does not disaffirm a contract entered into during his or

    her minority or shortly after reaching majority. Contracts made by minors to

    obtain such necessities as food, clothing, and shelter, however, are not

    voidable by the minor and will be enforced against him or her.

    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

    Standardized classes of person have had their freedom restricted. These

    limitations are justified exceptions to the general policy of freedom of contract and the detailed human and civil rights that a person of ordinary

    capacity might enjoy.

    Infancy

    http://en.wikipedia.org/wiki/Lawhttp://en.wikipedia.org/wiki/Agreementhttp://en.wikipedia.org/wiki/Contracthttp://en.wikipedia.org/wiki/Freedom_of_contracthttp://en.wikipedia.org/wiki/Freedom_of_contracthttp://en.wikipedia.org/wiki/Human_rightshttp://en.wikipedia.org/wiki/Civil_rightshttp://en.wikipedia.org/wiki/Minor_(law)http://en.wikipedia.org/wiki/Lawhttp://en.wikipedia.org/wiki/Agreementhttp://en.wikipedia.org/wiki/Contracthttp://en.wikipedia.org/wiki/Freedom_of_contracthttp://en.wikipedia.org/wiki/Freedom_of_contracthttp://en.wikipedia.org/wiki/Human_rightshttp://en.wikipedia.org/wiki/Civil_rightshttp://en.wikipedia.org/wiki/Minor_(law)
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    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).

    In contracts between an adult and an infant, adults are bound but

    infants may escape contracts at their option (i.e. the contract is

    voidable). Infants may ratify a contract on reaching age of majority. In

    the case of executed contracts, when the infant has obtained some

    benefit under the contract, he/she cannot avoid obligations unless

    what was obtained was of no value. Upon repudiation of a contract,

    either party can apply to the court. The court may order restitution,

    damages, or discharge the contract. All contracts involving the transfer

    of real estate are considered valid until ruled otherwise.

    Minors and Contractual Capacity

    A minor (typically under 18) can disaffirm a contract made, no matter

    the case. However, the entire contract must be disaffirmed. The minor

    cannot keep any of the goods traded for. Also, barter transactions

    such as purchasing a retail item in exchange for a cash payment is

    generally recognized through a legal fiction to not be a contract due to

    the absence of promises of future action.

    Insanity , mental illness , or mental/medical condition

    Individuals may have an inherent physical condition which prevents

    them from achieving the normal levels of performance expected from

    persons of comparable age, or their inability to match current levels of

    performance may be caused by contracting an illness. Whatever the

    cause, if the resulting condition is such that individuals cannot care for

    http://en.wikipedia.org/wiki/Culturehttp://en.wikipedia.org/wiki/Prejudicehttp://en.wikipedia.org/wiki/Age_of_majorityhttp://en.wikipedia.org/wiki/Marriageable_agehttp://en.wikipedia.org/wiki/Marriageable_agehttp://en.wikipedia.org/wiki/Voting_agehttp://en.wikipedia.org/wiki/Jurisdiction_(area)http://en.wikipedia.org/wiki/Contracthttp://en.wikipedia.org/wiki/Medical_procedurehttp://en.wikipedia.org/wiki/Consenthttp://en.wikipedia.org/wiki/Legal_guardianhttp://en.wikipedia.org/wiki/Minor_(law)http://en.wikipedia.org/wiki/Barterhttp://en.wikipedia.org/wiki/Retailhttp://en.wikipedia.org/wiki/Legal_fictionhttp://en.wikipedia.org/wiki/Insanityhttp://en.wikipedia.org/wiki/Mental_disorderhttp://en.wikipedia.org/wiki/Culturehttp://en.wikipedia.org/wiki/Prejudicehttp://en.wikipedia.org/wiki/Age_of_majorityhttp://en.wikipedia.org/wiki/Marriageable_agehttp://en.wikipedia.org/wiki/Marriageable_agehttp://en.wikipedia.org/wiki/Voting_agehttp://en.wikipedia.org/wiki/Jurisdiction_(area)http://en.wikipedia.org/wiki/Contracthttp://en.wikipedia.org/wiki/Medical_procedurehttp://en.wikipedia.org/wiki/Consenthttp://en.wikipedia.org/wiki/Legal_guardianhttp://en.wikipedia.org/wiki/Minor_(law)http://en.wikipedia.org/wiki/Barterhttp://en.wikipedia.org/wiki/Retailhttp://en.wikipedia.org/wiki/Legal_fictionhttp://en.wikipedia.org/wiki/Insanityhttp://en.wikipedia.org/wiki/Mental_disorder
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    themselves, or may act in ways that are against their interests, those

    persons are vulnerable through dependency and deserve the

    protection of the state against the risks of abuse or exploitation.

    Hence, any agreements that were made are voidable, and a court may

    declare that person a ward of the state and grant power of attorney to

    an appointed legal guardian (in England and Wales, this is a specific

    function of the Court of Protection ).

    Drunkenness/drug abuse

    Although individuals may have consumed a sufficient quantity of

    intoxicant or drug to reduce or eliminate their ability to understand

    exactly what they are doing, such conditions are self-induced and sothe law does not generally allow any defense or excuse to be raised to

    any actions taken while incapacitated. The most generous states do

    permit individuals to repudiate agreements as soon as sober, but the

    conditions to exercising this right are strict.

    Bankruptcy

    If individuals find themselves in a situation where they can no longerpay their debts, they lose their status as creditworthy and become

    bankrupt.

    Enemy aliens and/or terrorists

    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.

    3.Discuss how a contract can be discharged by breach

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    Failure of a party (not having a legal excuse) to perform in accordance

    with a promise made is Breach of contract. Discharge of a valid contract

    involves the process under which the primary (performance) obligations

    come to an end. Discharge by breach will generally give rise to secondary

    obligations to pay damages.

    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 .

    In this situation, the non-breaching party may elect eithera) to affirm the contract, await the performance and then sue for breach, or

    b) treat the

    contract as immediately repudiated and himself as being discharged from his

    obligations:

    Breach of contract is where a party thereto breaks through the obligation

    which it imposes.

    The effect of a breach of contract is that -

    (a) It always gives the party injured a right of action.

    http://chestofbooks.com/business/law/Handbook-Law-Of-Contracts/Sources-Of-Obligation-21-Directly-From-Agreement.html#breach_of_contracthttp://chestofbooks.com/business/law/Handbook-Law-Of-Contracts/Obligation.htmlhttp://chestofbooks.com/business/law/Handbook-Law-Of-Contracts/Mental-Weakness-Continued.html#effecthttp://chestofbooks.com/business/law/Handbook-Law-Of-Contracts/The-Rights-And-Liabilities-Must-Be-Definite.htmlhttp://chestofbooks.com/business/law/Handbook-Law-Of-Contracts/Sources-Of-Obligation-21-Directly-From-Agreement.html#breach_of_contracthttp://chestofbooks.com/business/law/Handbook-Law-Of-Contracts/Obligation.htmlhttp://chestofbooks.com/business/law/Handbook-Law-Of-Contracts/Mental-Weakness-Continued.html#effecthttp://chestofbooks.com/business/law/Handbook-Law-Of-Contracts/The-Rights-And-Liabilities-Must-Be-Definite.html
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    (b) It often, but not always, discharges the contract . This depends upon

    circumstances to be presently discussed.

    If one of the parties to a contract breaks through the obligation which

    it imposes, a new obligation arises in every case - a right of action conferredupon the party injured by the breach. Besides this, there are circumstances

    under which the breach will discharge the injured party from such

    performance as may still be due from him. Every breach of contract confers

    the right of action upon the injured party, but every breach does not

    necessarily discharge him from doing what he has undertaken to do under

    the contract. The contract may be broken wholly or in part, and, if in part,

    the breach may or may not be sufficiently important to operate as a

    discharge; or, if it is of such importance, the injured party may choose not to

    regard it as a discharge, preferring to continue to carry out the contract,

    reserving to himself the right to sue for such damages as he may have

    sustained by the breach. It is often very difficult to determine whether or not

    a breach of one of the terms of a contract discharges the party injured.

    4. Discuss the essentials of contract of guarantee

    A contract of guarantee is a promise to answer for the debt, default or

    miscarriage of another. It is a collateral engagement by which a parson

    undertakes to be liable for the debt of another's default.

    Section 126 of Contract Act "A contract of guarantee is a contract to perform

    the promise or discharge the liability of a third person in case of his default".

    A person who gives the guarantee is called the Surety or Guarantor and theperson 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.

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    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.

    Essentials of this Contract:

    1. In a contract of guarantee there should be a consent and concurrence

    of the three parties namely the principal debtor, the creditor, and the

    surety.

    2. In this contract there must be a clear and distinct promise by the

    surety to answer for the debt, default or miscarriage of the principal

    debtor. A vague or ambiguous promise is no guarantee.3. The liability of the principal debtor must be one which is legally

    enforceable. i.e. it should not be time-barred, illegal etc. Where the

    liability is unenforceable, it does not exist. And where the liability does

    not exist, there cannot be a contract of guarantee.

    Continuing Guarantee:

    A guarantee which extends to a series of transactions is called a "continuing

    guarantee". In case of this kind of guarantee which extends, over two or

    more transactions, the liability the surety extends over the successive

    transactions which come within its scope.

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    Revocation of continuing Guarantee: Continuing guarantee can be

    revoked in the following ways.

    1. Notice: A continuing guarantee may at any time be revoked by the

    surety as to future transactions, by notice to the creditor.2. Death of the Surety: The estate of the surety is liable for all

    transactions entered into prior to the death of the surety unless there

    is a contract to the contrary. It is not necessary that the creditor

    should have notice of the death.

    Invalid Guarantees : A guarantee is invalid in case of an assent obtained by

    misrepresentation, of if some material fact is concealed. Where person gives

    a guarantee on the condition that the creditor shall act upon it until anotherperson has joined in it as a co-surety, the guarantee is invalid if the other

    person does not join.

    5.How can negotiable instruments be endorsed? Discuss in details

    A negotiable instrument is a specialized type of " contract " for the

    payment of money that is unconditional and capable of transfer by

    negotiation. As payment of money is promised later, the instrument itself can

    be used by the holder in due course frequently as money . Common examples

    include cheques , banknotes ( paper money ), and commercial paper

    A negotiable instrument can be endorsed on the following ways:

    1. Blank or general endorsement: If the endorser signs his name only

    and does not specify the name of the endorsee, the endorsement is

    said to be in bland. The effect of a blank endorsement is to convert

    the order instrument into bearer instrument which may be

    transferred merely by delivery.

    2. Endorsement in full or special endorsement: If the endorser, in

    addition to his signature, also adds a direction to pay the amount

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    mentioned in the instrument to , or to the order of, a specified

    person, the endorsement is said to be in full.

    3. Partial endorsement: Section 56 provides that a negotiable

    instrument cannot be endorsed for a part of the amount appearingto be due on the instrument. In other words, a partial endorsement

    which transfers the right to receive only a part payment of the

    amount due on the instrument is invalid.

    4. Restrictive endorsement: An endorsement which, by express

    words, prohibits the endorsee from further negotiating the

    instrument or restricts the endorsee to deal with the instrument as

    directed by the endorser is called restrictive endorsement. The

    endorsee under a restrictive endorsement gets all the rights of an

    endorser except the right of further negotiation.

    5. Conditional endorsement: if the endorser of a negotiable

    instrument, by express words in the endorsement, makes his

    liability, dependent on the happening of specified event. Although

    such event may never happen, such endorsement is called a

    conditional endorsement.

    In the case of a conditional endorsement the liability of the endorser

    would arise only upon the happening of the event specified. But the

    endorsee can sue other prior parties, e.g., the maker, acceptor etc., if

    the instrument is not duly met at maturity, even though the specified

    event did not happen.

    6.Why do you think an agreement to take a person to moon for aholiday cannot be a contract?

    A contract is an agreement between parties that is legally enforceable.

    A Contract is enforceable by law while an Agreement is not enforceable by

    law. In this case of taking a person to moon it cannot be enforced by law.

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    Its just a mutual agreement.

    A valid contract must contain the ten valid elements which is not possible in

    terms of taking a person to moon:

    Offer and Acceptance

    Intention to Create Legal Relations

    Lawful Consideration

    . Capacity of Parties

    Free Consent

    . Lawful Object

    Writing and Registration

    Certainty

    Possibility of Performance

    . Not Expressly Declared Void

    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.

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    1.What is the process for an enterprise to get incorporated as acompany?

    Name

    Course MBA-Semester-3

    SubjectLegal Aspects of

    Business

    Subject Code MB0035-Set-2

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    The term company implies an association of a number of persons for

    some common objective e.g. to carry on a business concern, to promote art,

    science or culture in the society, to run a sport club etc. Every association,

    however, may not be a company in the eyes of law as the legal import of the

    word company is different from its common parlance meaning. In legal

    terminology its use is restricted to imply an association of persons,

    registered as a company under the law of the land. The following are some

    of the definitions of company given by legal luminaries and scholars of law:

    Company means a company formed and registered under this Act or an

    existing company. Existing company means a company formed and

    registered under the previous company laws. Companies Act, 1956 Sec.

    3(i & ii)

    An enterprise can be incorporated as a company if it has:

    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 thats

    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.

    Execution: Satisfying a customer requires relentless attention to execution.

    Building a companys capability to deliver makes the difference between

    turning a great idea into a business or failure. But execution is not just about

    delivering a product. Its also about service. Over the years, I have observed

    that technology companies are particularly bad at recognizing and responding

    to the service needs of their customers. Counter intuitively, high-tech

    requires a lot of high-touch. Partsearch is a company that knows what its

    doing with customer service, helping customers find what they need in an

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    ocean of millions of parts and accessories for consumer electronic products.

    Partsearch has tamed chaos in its industry .

    Inspiration : Smart companies engage all of their associates in building the

    business, from idea creation though delivery. Ideas dont just come tops-down; they also come bottoms-up and from every other direction. Everyone

    in the company feels that they own a piece of the action and are accountable

    for how the company performs. The inspiration for a company starts at the

    top, but good leadership drives that inspiration deep into the company by

    engaging people broadly in decision-making. People are more than

    mechanical parts of the enterprise, and the more they are allowed to see

    customers, the better their business sensibilities.

    Above all, it should follow companies Act.

    2.Discuss in detail the clauses in the memorandum of association:

    A memorandum of association is a standard document that states the

    constitution of the company. Memorandum is one of the very essential paper

    processes to incorporate a limited company

    Clauses in the Memorandum:

    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.

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    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:

    The state, in which the registered office of company is to be situated, is

    mentioned in this clause. If it is not possible to state the exact location of the

    registered office, the company must state it provide the exact address either

    on the day on which commences to carry on its business or within 30 days

    from the date of incorporation of the company, whichever is earlier. Notice in

    Form no 18 must be given to the Registrar of Companies within 30 days of the date of incorporation of the company.

    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:

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    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:

    Main objects of the company to be pursued by the company on its

    incorporation;

    Objects incidental or ancillary to the attainment of the main objects;

    Any other objects.

    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.

    The objects clause may be amended by special resolution at a general

    meeting of members of the company.

    d. Liability clause:

    A declaration that the liability of the members is limited in case of thecompany, limited by the shares or guarantee, must be given. The

    Memorandum of a company, limited by guarantee, must also state that each

    member undertakes to contribute to the assets of the company such amount

    not exceeding specified amounts as may be required in the event of the

    liquidation of the company. A declaration that the liability of the members is

    unlimited in case of the unlimited companies must be given.

    e. Capital clause:

    The amount of share capital with which the company is to be registered,

    divided into shares must be specified, giving details of the number of shares

    and types of shares. A company cannot issue share capital, greater than the

    maximum amount of share capital, mentioned in this clause, without altering

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    the memorandum.

    f. Association clause:

    A declaration by the persons for subscribing to the Memorandum that theydesire to form into a company and an agreement to take the shares place

    against their respective name must be given by the promoters.

    3. Discuss the need for development of cyber laws:

    Cyber crime refers to all the activities done with criminal intent in

    cyberspace or using the medium of Internet. These could be either thecriminal 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.

    Because of the anonymous nature of Internet, it is possible to engage in a

    variety of criminal activities with impunity, and people with intelligence, have

    been grossly misusing this aspect of the Internet to commit criminal activities

    in cyberspace. The field of cyber crime is just emerging and new forms of

    criminal activities in cyberspace are coming to the forefront each day. For

    example, child pornography on Internet constitutes one serious cyber crime.

    Similarly, online pedophiles, using Internet to induce minor children into sex,

    are as much cyber crimes as any others.

    Categories of cyber crimes:

    Cyber crimes can be basically divided in to three major categories:

    1. Cyber crimes against persons;

    2. Cyber crimes against property; and

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    3. Cyber crimes against government.

    IMPORTANCE OF IT ACT :

    The Information Technology Act:

    Enables Legal recognition to Electronic Transaction / Record

    Facilitates Electronic Communication by means of reliable electronic

    record

    Provides for acceptance of contract expressed by electronic means

    Facilitates Electronic Commerce and Electronic Data interchange.

    Facilitates Electronic Governance.

    Facilitates electronic filing of documents.

    Enables retention of documents in electronic form.

    Where the law requires the signature, digital signature satisfies the

    requirement.

    Ensures uniformity of rules, regulations and standards regarding the

    authentication and integrity of electronic records or documents.

    Facilitates Publication of Official Gazette in the electronic form. Enables interception of any message transmitted in the electronic or

    encrypted form.

    Prevents Computer Crime, forged electronic records, international

    alteration of electronic records fraud, forgery or falsification in

    Electronic Commerce and electronic transaction .

    WHY THE NEED FOR CYBER LAW?

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    Flourishing of the Internet.

    Greatest cultural, economic, political and social transformation in the

    history of human society.

    Complex legal issues arising leading to the development of cyber law.

    Different approaches for controlling, regulating and facilitating electronic

    communication and commerce

    4.What do you mean by award with reference in arbitration:

    Award means an arbitral award. It is a final decision or judgment of

    the arbitral tribunal on all matters referred to it. An award in order to be

    valid must be final, certain and must decide all the matters referred to. An

    award by the arbitrator is as binding in its nature as the judgment of a court.

    Arbitral award includes an interim award

    There are two types of decisions to be made by the arbitral tribunal

    i.e. decision on the merits of the dispute is to be made by the majority of

    members of the arbitral tribunal but question of procedure can be decided by

    the presiding arbitrator, if authorized by the parties or all members of the

    arbitral tribunal. In the absence of such authorization by the parties or other

    members of the tribunal, the decision on question of procedure is also to bemade by majority of members of the arbitral tribunal. In the absence of such

    authorization by the parties or other members of the tribunal, the decision on

    question of procedure is also to be made by majority of members of the

    arbitral tribunal. The presiding arbitrator has not been given any special

    power and be acts like any other arbitrator. All arbitrators have been given

    equal power irrespective of mode of appointment.

    Essentials of an Arbitral Award

    Section 31 deals with the form and contents of the arbitral award. The

    provisions of Section 31 are discussed in the form of essentials which are as

    under:

    1. An arbitration agreement is required to be in writing. Similarly, a

    reference to arbitration and award is also required to be made in

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    writing. The arbitral ward is required to be made on stamp paper of

    prescribed value. An oral decision is not an award under the law.

    2. The award is to be signed by the members of the arbitral tribunal.

    However, the signatures of majority of all the members of all themembers of the tribunal are sufficient if the reason for any omitted

    signature is stated.

    3. Unless the agreement provides otherwise, the arbitrator must give

    reasons for the award. Thus, the making of an award is a rational

    process which is accentuated by recording the reasons. However,

    there are two exceptions where award without reasons is valid i.e.

    (a)Where the arbitration agreement expressly provides that no

    reasons are to be given, or

    (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.

    5. The arbitral tribunal shall state the place of arbitration 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.

    7. The award may also include decisions and directions of the

    arbitrator regarding the cost of the arbitration.

    8. After the award in made, a signed copy should be delivered to each

    party for appropriate action.

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    9. The arbitral tribune may, at any time during the arbitral

    proceeding, make an interim arbitral award on m=any matter with

    respect to which it may make a final arbitral award.

    Finality of Arbitral Awards (Section 35)

    An arbitral award shall be final and binding on the parties and persons

    claiming under them respectively. Now, under the new Act, by virtue of

    section 35 and the Act, the award made by the Arbitrator shall be fine and

    binding on the parties itself and shall be decree without being made decree

    by the court.

    5.How is consumer defined in the consumer protection act? Discuss

    Consumer protection laws are designed to ensure fair competition and

    the free flow of truthful information in the marketplace. The laws are

    designed to prevent businesses that engage in fraud or specified unfair

    practices from gaining an advantage over competitors and may provide

    additional protection for the weak and those unable to take care of

    themselves. Consumer Protection laws are a form of government regulation

    which protects the interests of consumers . For example, a government may

    require businesses to disclose detailed information about products

    particularly in areas where safety or public health is an issue, such as food.

    Consumer protection is linked to the idea of "consumer rights" (that

    consumers have various rights as consumers), and to the formation of

    consumer organizations which help consumers make better choices in the

    marketplace.

    Consumer is defined as someone who acquires goods or services for

    direct use or ownership rather than for resale or use in production and

    manufacturing.

    http://en.wikipedia.org/wiki/Regulationhttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Consumer_organizationhttp://en.wikipedia.org/wiki/Regulationhttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Consumer_organization
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    Consumer interests can also be protected by promoting competition in

    the markets which directly and indirectly serve consumers, consistent with

    economic efficiency, but this topic is treated in Competition law .

    Consumer protection can also be asserted via non-governmentorganizations and individuals as consumer activism .

    Consumer is a broad label for any individuals or households that use

    goods and services generated within the economy . The concept of a

    consumer occurs in different contexts, so that the usage and significance of

    the term may vary.

    In economics and marketing

    Typically when business people and economists talk of consumers they

    are talking about person as consumer, an aggregated commodity item with

    little individuality other than that expressed in the buy/not-buy decision.

    However there is a trend in marketing to individualize the concept. Instead of

    generating broad demographic profiles and psycho-graphic profiles of market

    segments , marketers have started to engage in personalized marketing ,

    permission marketing , and mass customization .

    There is increasing backlash from the public over use of the label

    "consumer" rather than "customer", with many finding it offensive and

    derogatory.

    In law and politics

    The law primarily uses the notion of "consumer" in relation to

    consumer protection laws, and the definition of consumer is often restricted

    to living persons (i.e. not corporations or businesses) and excludes

    commercial users. A typical legal rationale for protecting the consumer is

    based on the notion of policing market failures and inefficiencies, such as

    inequalities of bargaining power between a consumer and a business. As of

    http://en.wikipedia.org/wiki/Competition_lawhttp://en.wikipedia.org/wiki/Consumer_activismhttp://en.wikipedia.org/wiki/Householdhttp://en.wikipedia.org/wiki/Good_(economics)http://en.wikipedia.org/wiki/Economic_systemhttp://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Commodityhttp://en.wikipedia.org/wiki/Individualityhttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Demographic_profilehttp://en.wikipedia.org/wiki/Psychographichttp://en.wikipedia.org/wiki/Market_segmenthttp://en.wikipedia.org/wiki/Market_segmenthttp://en.wikipedia.org/wiki/Personalized_marketinghttp://en.wikipedia.org/wiki/Permission_marketinghttp://en.wikipedia.org/wiki/Mass_customizationhttp://en.wikipedia.org/wiki/Consumer_protectionhttp://en.wikipedia.org/wiki/Competition_lawhttp://en.wikipedia.org/wiki/Consumer_activismhttp://en.wikipedia.org/wiki/Householdhttp://en.wikipedia.org/wiki/Good_(economics)http://en.wikipedia.org/wiki/Economic_systemhttp://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Commodityhttp://en.wikipedia.org/wiki/Individualityhttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Demographic_profilehttp://en.wikipedia.org/wiki/Psychographichttp://en.wikipedia.org/wiki/Market_segmenthttp://en.wikipedia.org/wiki/Market_segmenthttp://en.wikipedia.org/wiki/Personalized_marketinghttp://en.wikipedia.org/wiki/Permission_marketinghttp://en.wikipedia.org/wiki/Mass_customizationhttp://en.wikipedia.org/wiki/Consumer_protection
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    all potential voters are also consumers, consumer protection takes on a clear

    political significance.

    Concern over the interests of consumers has also spawned much

    activism, as well as incorporation of consumer education into schoolcurricula. There are also various non-profit publications, such as Consumer

    Reports and Choice Magazine , dedicated to assist in consumer education and

    decision making, and Consumer Direct in the UK.

    In India, the Consumer Protection Act 1986 clearly differentiates a

    consumer as consuming a commodity or service either for his personal

    domestic use or to earn his livelihood. Only consumers are protected as per

    this act and any person, entity or organization purchasing a commodity forcommercial reasons are exempted from any benefits of this act.

    Furthermore, Indian case law has quite a few references on how to

    distinguish a consumer from a customer.

    In intelligence studies

    Within intelligence studies , the concept of "consumer" refers to the political

    staff consuming and requesting intelligence.

    6. Undertake a survey of 20 shops and write a report on the

    provisions being maintained in these shops as per the Shops and

    Establishment Act:

    On making a survey on 20 different shops coming under shops and

    establishments acts, the important findings are summarized:

    -To provide statutory obligation and rights to employees and employers in

    the un organised sector of employment, i.e., shops and establishments.

    Scope And Coverage

    - A state legislation; each state has framed its own rules for the Act.

    http://en.wikipedia.org/wiki/Consumer_Reportshttp://en.wikipedia.org/wiki/Consumer_Reportshttp://en.wikipedia.org/wiki/Choice_Magazinehttp://en.wikipedia.org/wiki/Consumer_Directhttp://en.wikipedia.org/wiki/Intelligence_studieshttp://en.wikipedia.org/wiki/Consumer_Reportshttp://en.wikipedia.org/wiki/Consumer_Reportshttp://en.wikipedia.org/wiki/Choice_Magazinehttp://en.wikipedia.org/wiki/Consumer_Directhttp://en.wikipedia.org/wiki/Intelligence_studies
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    - Applicable to all persons employed in an establishments with or without

    wages, except the members of the employer's family.

    - State government can exempt, either permanently or for a specified period,

    any establishments from all or any provisions of this Act.

    Main Provisions

    - Compulsory registration of shop/establishment within thirty days of

    commencement of work.

    - Communications of closure of the establishment within 15 days from the

    closing of the establishment.

    - Lays down the hours of work per day and week.

    - Lays down guidelines for spread-over, rest interval, opening and closing

    hours, closed days, national and religious holidays, overtime work.

    - Rules for employment of children, young persons and women

    - Rules for annual leave, maternity leave, sickness and casual leave, etc.

    - Rules for employment and termination of service.

    - Maintenance of registers and records and display of notices.

    - Obligations of employers.

    - Obligations of employees.

    When To Consult And Refer

    - At the time of start of an enterprise.

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    - When framing personnel policies and rules