Business law (also known as commercial law) are the law that deal with the business and commercial transactions. It encompasses the formation of business management, commerce and consumer transaction. It mainly protects the right of business enterprises, together with shareholders, directors , employees, and the consumer.

Business law is the general field of law relating to business organizations, business structures, and business transactions. Also included in the business law field are issues related to real-estate, tax, and the environment.

Business law as a whole covers a lot of aspects in the business world. The following are some of the articles included under the commercial law:

It entails all the rules of carriage both by land and sea. It covers marine, fire, life and accident insurance. It defines bills of exchange and partnership. It gives out rules for corporate or legal contracts. It sets out the guidelines in hiring individuals or employees. It regulates the manufacturing and selling of consumer goods.

It is essential to know about business law before starting a business, as it will help you operate your business without the hindrances of ignorance.

It helps the management professionals in realizing the business ethics,

The business law studies are necessary forever management graduate whether he want to setup a proper business, or willing to join a service as a manager.

Business laws specify how different business can be set up, how taxes apply to them, registrations, documentations and requirements

It has been proven, that most clients are comfortable in doing businesses.

Its gives immense confidence in handling day to day business requirements to those who know the legal aspect of business.

They makes business case laws studies very important.

Doing a proper business with an authenticated business license and registration gives confidence.

Government & Business relationship in India

The evidence shows that both macroeconomic stabilization and structural reformscontribute to growth, and that the more structural reform that has taken place,the more rapidly the economy grows.3

improved investment climate

Contractual Capacity is the legal ability to enter into a conract. Minors have particular rights and obligations established by the court when it comes to contracts. Once a person reaches age 18, they are considered a legal adult in every state in the nation. In adittion to minors, other persons are able to aviod contracts.

Every person is not competent to enter into any contract unless he fulfills the conditions laid down in the contract act. According to the contract act every person is competent to contract.

1. Who is an adult.

2. Who is of sound minded.

3. Who is not disqualified.

Person Not Competent To Contract :-Following persons are not competent to enter into a contract or we may say that they have no contractualcapacity.

1. Minor :-According to contract act a person below than 18 years is a minor and cannot enter into any contract. A contract made by the minor is void.

2. Mentally Deficient :-Mentally deficient person cannot make a valid contract.

3. Person Disqualified By Law :-If any person is disqualified by the law enforceable law of the country cannot enter into valid contract.

4. Joint Stock Company :-Joint stock company is a person in the eye of law but the capacity of the company to enter into contract is limited by law. Company has no physical existence. It has an artificial personality. So it can not make the contract personally. It will do the contract through agent according the law. Otherwise it will be void contract.

6. Imprisoned Person :-If some person is imprisoned by the court of law, he cannot enter into contract during the period of sentence. But as the sentence expires this disability also comes to an end.

5. Foreigner :-A foreigner cannot do any contract. Any type of contract which is made without the permission of the government is void and illegal.

7. Diplomat or Ambassador :-The diplomats are in privilege position and they cannot be sued without the permission of the govt. So they are considered incompetent to contract.

8. Insolvent :-In case of property a solvent can not enter into contract which is under the control of official receiver. He can enter into contract after the issuance of discharge order.

Any person who has not attained the age of eighteen years, is minor in the eye of law.

A minor has no capacity to enter into contract. His agreement is absolutely void. The contract act very clearly says that the parties to a contract must be competent to contract. A person is a competent who is of the age of majority. An agreement entered into by a minor is not enforceable at law.

REASON :-Law is a guardian and it protects the minor against his own in-experience and improper acts made in the early years of life. A minor is supposed to be incapable of judging what is good and what is bad for him.

1. Minor and Equitable Consideration :-A minor is not liable to perform what he has promised to do under the agreement not to repay the money that he has received under it. According to the law a minor can not be compelled to compensate for any benefit received by him under his agreement which is void.

2. Estoppel Case :-Estoppel means when someone makes an other person to believe that a particular thing or fact is true. Then later on he can not be allowed to deny the truth of that thing.

3. Rules About Partnership :-A minor cannot become a partner, but with the consent of all other partners, he can be admitted in the benefits of the partnership. He is not liable only up to his shares in the firm.

4. Rules About Favorable Agreement :-A minor can take benefit of that agreement which is made for his benefit.

6. Minors Surety :-In case of contract guarantee an adult stands surely for minor. In this case minor is not awarded but adults is liable under the contract.

9. Case Of Insolvency :-In this case minor cannot be declared insolvent. If he has no property then payment cannot be recovered.

8.Minor & Negotiable Instruments :-A minor can draw and deliver the negotiable instruments. He is not liable but all the other parties to the instruments are liable.

7. Parents Position :-The parents of minor are not liable for agreements made by their minor. The parents can be held responsible of the minor acts as their agent.

12. Necessaries of Minor :-A person who provides the necessaries to the minor is entitled to recover from the property of the minor. If the minor is not liable personally.

11. Company Shares :-A minor cannot become the share holder of the company. But in case of fully paid up shares a minor can become a shareholder of the company.

10. Adult and Minor Agreement :-If the above two enter in to the agreement with the third party, the adult will be liable but minor will be not responsible.