Business Legislation by Prof. S. Mitra

INTRODUCTION

Meaning of Law:Meaning of Law: Law is the command of the Sovereign There are three essential features of law

Rule of Law: Equality of all person before law

Sources of Law

Law originates from Law originates from

SovereignSovereign

Law originates from GodLaw originates from God

Origin of Hindu LawOrigin of Hindu Law

Origin of Muslim LawOrigin of Muslim Law

Origin of Christian LawOrigin of Christian Law

Sources of Indian Law

1.1. Primary Sources of Primary Sources of

law law

Customs, Legislature Customs, Legislature

etc.etc.

1.1. Secondary sources of Secondary sources of

lawlaw

Common lawCommon law

Law of MerchantsLaw of Merchants

Mercantile or Business Law

Rule relating to Industry, Trade and CommerceIncludes laws like Partnership, Negotiable Instruments etc.SOURCES OF BUSINESS LAW: English Mercantile law Judicial decisions etc.

LAW OF CONTRACT

Meaning of the term contract Essential elements of contract

Offer, Acceptance, Consideration, Lawful object, Certainty, Possibility to perform, Free consent, Capacity to contract etc.

Different types of Contract – Valid, Void, Voidable etc. Difference between Agreement & Contract

Termination or Discharge of Contract

Methods of termination of contract

By performance

By mutual consent

By lapse of time

By breach of contract

Breach of Contract

•Meaning of breach of contract and the types of breach of contract•Remedies for breach of contract

o Suit for damageo Suit upon Quantum Meruito Suit for damage

Contract of Indemnity

This is a special type of contract Section 124 defines the term “Contract of Indemnity” Two parties are: Indemnifier & Indemnified Akin to to contract of Insurance

Contract of Guarantee

Section 126 of the Indian Contract Act, 1872 defines the term “Contract of Guarantee” Three parties are Creditor, Principal Debtor & Surety Difference between Contract of Indemnity & Contract of Guarantee

Sale of Goods Act, 1930

• Essential elements of the Contract of Sale : Price, Goods, Two parties, Transfer of ownership, Elements of valid contract

• Difference between Sale & Agreement to Sale

Conditions & Warranties

Section 12(2) and Section 12(3) of Sale of Goods Act defines the terms Conditions & Warranties Features of Implied conditions & Implied warranties Concepts of a) Passing of property in the goods, b) Caveat Emptor, c) Nemo dat quod non habet

Unpaid Seller

Section 54(3) of Sale of

Goods Act defines the term

“Unpaid Seller”

The rights of Unpaid Seller

are :

a) Against the goods &a) Against the goods &

b) Against the buyer b) Against the buyer

personallypersonally

Negotiable Instruments Act

Negotiable means “transferable” and Instrument means “written document” Essentials of NI are: Freely transferable, Presumption, Title of holder in due course free from all defects etc. Parties to NI (Cheque, Bill of Exchange & Promissory Notes)

Cheque

Meaning of cheque, Parties to Cheque, Crossing of Cheque, Dishonor of cheque and its consequences, Relation between Banker & Customer

Consumer Protection Act(CPA)

Objects of the Act

Rights of the Consumers

Important definitions like Consumer, Complaint, Complainant, Defect in goods, Deficiency in service etc.

Authorities under the CPA

Central & State Consumer Central & State Consumer

Disputes Settlement Disputes Settlement

CouncilsCouncils

Three-tier Quasi-Judicial Three-tier Quasi-Judicial

Consumer Disputes Redressal Consumer Disputes Redressal

Agencies (CDRA)Agencies (CDRA)

CPA

Composition, Jurisdiction

of District Forum, State

Commission & National

Commission

Appeal & Penalties under

the Act

LAW OF PARTNERSHIP

• Definition of Partnership U/s 4 Definition of Partnership U/s 4 of of Partnership Act, 1932Partnership Act, 1932• Formation of PartnershipFormation of Partnership• Partnership DeedPartnership Deed• Whether Registration of Whether Registration of Partnership is Partnership is mandatory? mandatory? • Rights & Liabilities of Partners Rights & Liabilities of Partners • Dissolution of partnership Dissolution of partnership

Information Technology Act 2000

• The objectives of the Act: to provide legal recognition for transactions to facilitate electronic filing of documents

• Important definitions: Digital signature, Digital Signature Certificate, Electronic records, Information, E-governance• Acknowledgement and dispatch of electronic records• Duties of Subscribers• Cyber crimes (Offences) & penalties thereof

Intellectual Property Rights (IPRs)

IPRs include: Patents; Trademarks & Copyrights. Patents – means the exclusive privilege granted by the sovereign authority to an inventor with respect to his invention – The Act provides specified remedies for infringement in the form of injunction. Trademarks – A trademark is a visual symbol in the form of a word, device or a label and that is applied to article of commerce for distinction purpose

IPRs

Copyright: It is a property right which exists in certain specified types of work

It protects original or creative works like poetry, video games, paintings, recorded music performances, choreography, designs

The Shops and Establishment Act

It is a State legislation and each state can frame its own rules.

The object of this Act is to provide statutory obligations and rights to employees and

employers of Shops & establishments.

Fair Trade Practices

Every aspects of business is guided by certain trade practice norms; If these norms are complied with by the business people, the benefit would not only accrue to them but also to the community at large. This has got a relevancy with the term Unfair Trade Practices as defined U/s 36A of MRTP Act 1969.