Bachelor of Commerce Semester-5 CC505: Business Laws By: Prof. Peena B. Chauhan, Associate Professor, Tolani Commerce College, Adipur, Kachchh, GJ- 370205. Prepared by- Prof. Peena Chauhan, Asso. Prof., TCC, Adipur

Prepared by- Prof. Peena Chauhan, Asso. Prof., TCC, Adipur Modules: Indian Contract Act- 1872 (1) Indian Contract Act- 1872 (2) Indirect Taxes The sales of Goods Act- 1930 Prepared by- Prof. Peena Chauhan, Asso. Prof., TCC, Adipur

Indian Contract Act- 1872 (1) Definition & Essentials of Contract Types of Contract Competent Party Free Consent Prepared by- Prof. Peena Chauhan, Asso. Prof., TCC, Adipur

Indian Contract Act- 1872 (2) Consideration Performance of Contract Discharge of Contract & Rules for Compensation Contingent Contract & Quasi Contract Prepared by- Prof. Peena Chauhan, Asso. Prof., TCC, Adipur

Definition & Essentials of Contract The Indian Contract Act, 1872 prescribes the law relating to contracts in India. The Act was passed by British India and is based on the principles of English Common Law. The Act as enacted originally had 266 Sections, it had wide scope and included; General Principles of Law of Contract- Sections 01 to 75 Contract relating to Sale of Goods- Sections 76 to 123 Special Contracts- Indemnity, Guarantee, Bailment & Pledge- Sections 124 to 238 Contracts relating to Partnership- Sections 239 to 266 Prepared by- Prof. Peena Chauhan, Asso. Prof., TCC, Adipur

Prepared by- Prof. Peena Chauhan, Asso. Prof., TCC, Adipur Types of Contract The six types of contracts are: Lump sum contract Item rate contract/unit price contract Lump sum and scheduled contract Cost plus fixed fee contract Cost plus percentage of cost contract Special contracts Prepared by- Prof. Peena Chauhan, Asso. Prof., TCC, Adipur

Prepared by- Prof. Peena Chauhan, Asso. Prof., TCC, Adipur Contd.… Special contracts are further classified into five types: Turn key contract Negotiated contract Package contract Continuing contract Running contract Prepared by- Prof. Peena Chauhan, Asso. Prof., TCC, Adipur

Prepared by- Prof. Peena Chauhan, Asso. Prof., TCC, Adipur Competent Party Section 11 of The Indian Contract Act specifies that every person is competent to contract provided: He should not be a minor i.e. an individual who has not attained the age of majority i.e. 18 years in normal case and 21 years if guardian is appointed by the Court. He should be of sound mind while making a contract. A person who is usually of unsound mind, but occasionally of sound mind, can make a contract when he is of sound mind. Similarly if a person is usually of sound mind, but occasionally of unsound mind, may not make a valid contract when he is of unsound mind. He is not disqualified from contracting by any other law to which he is subject. Prepared by- Prof. Peena Chauhan, Asso. Prof., TCC, Adipur

Prepared by- Prof. Peena Chauhan, Asso. Prof., TCC, Adipur Free Consent According to Section 13, " two or more persons are said to be consented when they agree upon the same thing in the same sense (Consensus-ad-idem). According to Section 14, Consent is said to be free when it is not caused by coercion or undue influence or fraud or misrepresentation or mistake. Prepared by- Prof. Peena Chauhan, Asso. Prof., TCC, Adipur

Prepared by- Prof. Peena Chauhan, Asso. Prof., TCC, Adipur Consideration According to Section 2(d), Consideration is defined as: "When at the desire of the promisor, the promisee or any other person has done or abstained from doing, or does or abstains from doing, or promises to do or abstain from doing something, such act or abstinence or promise is called consideration for the promise". In short, Consideration means something in return. Prepared by- Prof. Peena Chauhan, Asso. Prof., TCC, Adipur

Prepared by- Prof. Peena Chauhan, Asso. Prof., TCC, Adipur Indirect Taxes An indirect tax (such as sales tax, per unit tax, value added tax (VAT), or goods and services tax (GST)) is a tax collected by an intermediary (such as a retail store) from the person who bears the ultimate economic burden of the tax (such as the consumer). The intermediary later files a tax return and forwards the tax proceeds to government with the return. In this sense, the term indirect tax is contrasted with a direct tax, which is collected directly by government from the persons (legal or natural) on whom it is imposed. Some commentators have argued that "a direct tax is one that cannot be charged by the taxpayer to someone else, whereas an indirect tax can be." Prepared by- Prof. Peena Chauhan, Asso. Prof., TCC, Adipur

Prepared by- Prof. Peena Chauhan, Asso. Prof., TCC, Adipur The Sale of Goods Act- 1930 Indian Sale of Goods Act 1930 is a Mercantile Law. The Sale of Goods Act is a kind of Indian Contract Act. It came into existence on 1 July 1930. It is a contract whereby the seller transfers or agrees to transfer the title (ownership) in the goods to the buyer for consideration. It is applicable all over India, except Jammu and Kashmir. The goods are sold from owner to buyer for a certain price and at a given period of time. The name Indian is removed from the act with effect from 23 September 1963 hence the act name is now Sale of Goods act 1930. Prepared by- Prof. Peena Chauhan, Asso. Prof., TCC, Adipur

Prepared by- Prof. Peena Chauhan, Asso. Prof., TCC, Adipur Definition According to section 6 of the Indian sales of goods act, a contract of sales means “such contract by which the seller transfer the title or ownership of the goods to the buyer or makes an agreement to transfer it against a fixed price " 1. Buyer- A person who buys or agrees to buy goods. 2. Seller- A person who sells or agrees to sell goods. 3. Goods Every kind of movable property other than actionable things and money. 4. Existing goods- Goods which are in existence at the time of contract of sale. 5. Future goods- Goods which are to be manufactured /produced by seller after making contract of sale. 6. Specific goods- Goods which are identified & agreed upon at the time of contract of sale has been made. Prepared by- Prof. Peena Chauhan, Asso. Prof., TCC, Adipur

Prepared by- Prof. Peena Chauhan, Asso. Prof., TCC, Adipur Any Question?? Thank you… Prepared by- Prof. Peena Chauhan, Asso. Prof., TCC, Adipur