PREAMBLE “We the people of India having solemnly resolved to constitute India into a sovereign, socialist, secular, democratic republic and to secure to all its citizens.” 4/28/2019 Class of PGDM II

JUSTICE social, economic and political; LIBERTY of thought, expression, belief, faith and warship; EQUALITY of status and of opportunity and to promote among them all; FRATERNITY assuring the dignity of the individual and the unity and integrity of the nation; In our Constituent Assembly this 26th day of November, 1949 we do hereby adopt, enact and give to ourselves this Constitution. 4/28/2019 Class of PGDM II

Goods/Services Consumers Distribution, Transportation Enter- prise LEGAL FRAMEWORK Enter- prise E A R N P O F I T Organized Effort Retailing Wholesalling Goods/Services Consumers 4/28/2019 Production, Promotion, Financing Class of PGDM II

ENTERPRISE It is a unique institution which converts idea into sellable product. Greatest thing in the world. Today business enterprise dominates our lives. 4/28/2019 Class of PGDM II

Environment of Business: I/P [MMMM] ENVIRONMENT BUSINESS ENVIRONMENT ENVIRONMENT ENVIRONMENT O/P [Goods/Service] BE: Sum of all External forces & Conditions that Influence business & potentially affects its performance. 4/28/2019 Class of PGDM II

Social System Politico legal System BUSINESS Science & Technology Economic System 4/28/2019 Class of PGDM II

Legal Environment of Business: Law is almost a universal human need. It provides firmness to our mutual relations and certainty to our relationship. Law & business are closely related discipline. Law seeks to control concentration of Economic Power: MRTP Act, 1969. Law provides a mechanism by which disputes b/w parties are settled. CASE: Kentucky fried chicken 4/28/2019 Class of PGDM II

LAW “Any rule of conduct, standard or pattern, to which actions are required to confirm, if not confirmed, sanctions are imposed.” “Refers to the principles & regulations established by a Government & applicable to the people wheather in the form of legislation or of customs & policies recognised & enforced by judicial decisions.” Law is a social science that grows with the growth & development of society. 4/28/2019 Class of PGDM II

Business Law (Mercantile or Commercial Law) LEGAL SYSTEM Business Law Business law establishes a set of rules & prescribes conduct that enable us to avoid misunderstanding & injury in our business relationship. 4/28/2019 Class of PGDM II

Origin of Business Law: Sources of business Law: Scope of Business Law: License, Monopolies, Issue of Securities, Foreign Exchanges, Partnership, Companies, Contract, Bailment, Consumer Interest, Pollution Control, Business Crimes etc. Origin of Business Law: Sources of business Law: Legislation iv) Custom Case Law v) Natural Law English Law vi) Dharma 4/28/2019 Class of PGDM II

CONTRACT (1872) Sec 2(h): “An agreement enforceable by law” AGREEMENT : Sec 2(e) PROMISE : Sec 2(b) Agreement (Accepted Proposal) Acceptance of that Offer Offer/ Proposal 4/28/2019 Class of PGDM II

What Agreement are Contract? Legal Obligation Agreement CONTRACT Contract Act is the law of those agreement which create legal obligation. Some agreement are not Enforceable. What obligations are Contractual in nature. Agreement to do unlawful, immoral or illegal Act. Agreement is broader term than Contract. Law of contract creats rights in personum. 4/28/2019 Class of PGDM II

Essential Elements of a valid Contract (Sec 10) Agreement (Consensus-ad-idem) Intention to create legal relationship Free & Genuine Consent Parties competent to contract Lawful Consideration Lawful object Agreement not declared illegal or void Certainty of meaning Possibility of Performance Necessary legal formalities 4/28/2019 Class of PGDM II

Classification of Contract According to validity of Enforceability a) Valid contract b) Voidable contract c) Void contract d) Illegal contract e) Unenforceable contract 2. According to mode of Formation a) Express contract b) Implied contract c) Quasi contract 4/28/2019 Class of PGDM II

Classification of Contract (Cont’d) According to Performance a) Executed contract b) Executory contract c) Unilateral contract d) Bilateral contract IGNORATIA “Non Juris Execusat” 4/28/2019 Class of PGDM II