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

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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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
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

13. 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

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