Business Legislation by Prof. S. Mitra

INTRODUCTION Meaning of Law: Rule 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 Sovereign Law originates from God Origin of Hindu Law Origin of Muslim Law Origin of Christian Law

Sources of Indian Law Primary Sources of law Customs, Legislature etc. Secondary sources of law Common law Law of Merchants

Mercantile or Business Law Rule relating to Industry, Trade and Commerce Includes 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 Suit for damage Suit upon Quantum Meruit

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 & b) Against the buyer personally

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 Disputes Settlement Councils Three-tier Quasi-Judicial Consumer Disputes Redressal 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 of Partnership Act, 1932 Formation of Partnership Partnership Deed Whether Registration of Partnership is mandatory? Rights & Liabilities of Partners 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.