1. 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.”
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Class of PGDM II

2. 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.
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Class of PGDM II

3. 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
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Production, Promotion, Financing
Class of PGDM II

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

5. 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.
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Class of PGDM II

6. Social System Politico legal System BUSINESS Science & Technology
Economic
System
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Class of PGDM II

7. 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
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Class of PGDM II

8. 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.
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Class of PGDM II

9. 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.
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Class of PGDM II

10. 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
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Class of PGDM II

11. 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
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Class of PGDM II

12. 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.
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Class of PGDM II

13. 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
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Class of PGDM II

14. 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
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Class of PGDM II

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