PART I INDIAN CONTRACT ACT, 1872

Transcription

1 CONTENTS Foreword I-7 Message I-5 Preface to First Edition I-9 About the book I-11 About the authors I-13 B.Com. (General, Computers and Vocational) (III Year) I-17 Contents I-21 PART I INDIAN CONTRACT ACT, BASICS 1.1 Introduction and Definitions of Law Characteristics of law The maxim Ignorantia Juris Not Excusat Business Law as a Branch of Law Contract and Indian Contract Act The Indian Contract Act, Definition of Contract Nature of Law of Contract 8 I-23

2 I-24 CONTENTS 1.6 Glossary Chapter end questions 9 2 ESSENTIAL ELEMENTS OF A VALID CONTRACT 2.1 Introduction to and Definition of a valid contract Introduction to Essential Elements of a Valid Contract Essential Elements of a Valid Contract Types of contracts Agreement v. Contract Role Play Glossary Summary Cases with Solutions Cases for practice Chapter end questions 31 Questions from previous exams Exercises 32 3 ESSENTIALS OF A VALID OFFER 3.1 Introduction Tests to be applied in respect of a valid offer Kinds of offer Essentials of a valid offer Cross Offers and Counter Offer Lapse of Offer Special terms in a contract Role Play Glossary Summary Cases with Solutions Practical cases for practice 45

3 CONTENTS I Chapter end questions 46 Questions from previous exams Exercises 47 4 ESSENTIALS OF A VALID ACCEPTANCE 4.1 Introduction Kinds of acceptance Essentials of a valid acceptance/legal rules as to acceptance Two important points to ponder Communication of Offer, Acceptance and Revocation Role play Glossary Summary Cases with Solutions Cases for practice Chapter end Questions 60 Questions from previous exams Exercises 61 5 ESSENTIALS OF A VALID CONSIDERATION 5.1 Introduction Definitions Essentials of a valid consideration The Two Important Doctrines and their Exceptions Doctrine of Stranger to Contract Doctrine of privity of contract Doctrine of no consideration no contract (ex nudo pacto non oritur actio) Role play: The role play is designed to explain certain elements of consideration Glossary 72

4 I-26 CONTENTS 5.6 Summary Cases with Solutions Cases for practice Chapter end questions 75 Questions from previous exams Exercises 76 6 CAPACITY TO CONTRACT 6.1 Introduction Capacity of Parties Special Rules regarding Minor s Agreements Role play Glossary Summary Cases with Solutions Cases for Practice Chapter end questions 90 Questions from previous exams Exercises 91 7 FREE CONSENT 7.1 Introduction Consent and free consent Flaw in consent Introduction to flaws in consent Coercion and undue influence Coercion Undue influence Pardanashin Women An Unconscionable Bargain 100

5 CONTENTS I Distinction between coercion and undue influence Effect of undue influence Fraud and misrepresentation Fraud Misrepresentation Mistake Role play Glossary Summary Cases with Solutions Cases for Practice Chapter end questions 112 Questions from previous exams Exercises 113 PART II DISCHARGE OF A CONTRACT 1 LEGALITY OF OBJECT AND CONSIDERATION 1.1 Introduction Unlawful consideration and object Agreements, the object or consideration of which is unlawful in part Role Play Glossary Summary Cases with Solutions Cases for Practice Chapter end Questions 125 Questions from previous exams Practical Exercise 125

6 I-28 CONTENTS 2 EXPRESSLY DECLARED VOID AGREEMENTS 2.1 Introduction Agreements declared void Contingent contract Role Play Glossary of terms Summary Cases with Solutions Cases for practice Chapter end questions 134 Questions from previous exams Exercise DISCHARGE OF CONTRACT 3.0 Introduction Discharge by mutual agreement Discharge by operation of law Material alteration Performance of a contract/discharge by performance Discharge by breach Actual breach Anticipatory breach Discharge by lapse of time Discharge by impossibility Effect of impossibility Doctrine of Frustration Appropriation of payments and reciprocal promises Appropriation of payments Reciprocal promises Role Play Glossary 150

7 CONTENTS I Summary Cases with Solutions Cases for practice Chapter end questions 152 Questions from previous exams Exercise REMEDIES FOR BREACH OF CONTRACT 4.0 Breach of contract Remedies Damages Distinction between special damages and ordinary damages Award of Cost of Decree Role play Glossary Summary Cases with Solutions Cases for practice Chapter end questions 163 Questions from previous exams Exercise 164 PART III SALE OF GOODS ACT 1 THE SALE OF GOODS ACT 1.0 Introduction Salient features of contract of sale of goods Distinction between sale and agreement to sell Three points to ponder 171

8 I-30 CONTENTS Subject matter of contract of sale Performance of a contract of sale of goods Television - Role play Glossary Summary Case with Solution Cases for practice Chapter end questions 179 Questions from previous exams Exercises RIGHTS OF UNPAID SELLER 2.1 Introduction Unpaid seller Rights of a seller Rights of an unpaid seller Role Play Glossary Summary Case with Solution Case for practice Chapter end questions 190 Questions from previous exams Exercise CONDITIONS AND WARRANTIES 3.1 Introduction The significance of distinguishing the stipulations into conditions and warranties Distinction between a condition and a warranty 193

9 CONTENTS I Types of conditions and warranties A brief account of implied conditions and warranties Implied conditions and warranties in detail Caveat emptor and exceptions to the doctrine of caveat emptor A truck and the deal struck - A role play Glossary Summary Practical cases with Solutions Cases for practice Chapter end questions 202 Questions from previous exams Exercises SALE BY NON-OWNERS AND AUCTION SALE 4.1 Sale by non-owners Exceptions to the rule Auction Sale Rules of Auction Sale [Section 64] Liabilities of an auctioneer Role Play Glossary Summary Case with Solution Cases for practice Chapter end questions 211 Questions from previous exams Exercise 212

10 I-32 CONTENTS PART IV CONSUMER PROTECTION ACT AND INTELLECTUAL PROPERTY RIGHTS 1 THE CONSUMER PROTECTION ACT, Introduction A brief Introduction to Consumer Protection Act, Amendments Terminology Defect and deficiency Rights of consumer Consumer Protection Councils Central Consumer Protection Council (CCPC) State Consumer Protection Council (SCPC) Consumer Redressal Agencies District Forum State Commission National Commission Penalties Leading Cases The Redressal Forum - A role play Glossary Summary Case with Solution Cases for practice Chapter end questions 231 Questions from previous exams Exercises INTELLECTUAL PROPERTY RIGHTS 2.1 Introduction 234

11 CONTENTS I Laws in force and Laws in the offing Objectives of Protecting Intellectual Property Copyright as Intellectual Property Assignment and Licensing of copyrights Infringement of copyrights Trademarks as intellectual property The Trademark Act empowers the following Features of a Trademark Procedure for obtaining Trademarks Patent as an Intellectual Property Definitions Procedure for obtaining a patent Industrial Design Trade secrets Geographical Indications (Source: Intellectually Yours - A role play Glossary Summary Case with Solution Chapter end questions 248 Questions from previous exams Exercises INFORMATION TECHNOLOGY ACT, Introduction Information Technology Act, Scope of the Act Aims and objectives Meanings of certain terms Cyber crimes Punishments for the offenders 256

12 I-34 CONTENTS 3.5 Role play Glossary Summary Case with solution Cases for practice Chapter end questions 264 Questions from previous exams Exercise 264 PART V COMPANY LAW 1 FUNDAMENTALS OF COMPANY LAW 1.1 Introduction Prospectus Memorandum of Association Articles of Association The Three Doctrines Doctrine of ultra vires Doctrine of Constructive Notice of Memorandum and Articles Doctrine of Indoor Management Company secretary Knowledge sans Wisdom - A role play Glossary Summary Case with solution Cases with hints Chapter end questions 286 Questions from previous exams Exercises 287

13 CONTENTS I-35 2 COMPANY MANAGEMENT 2.1 Introduction Minimum Number of Directors Who can be appointed as a Director Appointment of Directors Removal of Directors Qualifications for Directors Disqualification of directors Rights of Directors Duties of Directors The Post Exam Fever - A Role Play Glossary Summary Case with solution Cases for practice Chapter end questions 300 Questions from previous exams Exercise MEETINGS AND RESOLUTIONS 3.1 Introduction Terminology Board Meetings or Directors Meeting Shareholders Meeting Statutory Meeting Annual General Meeting Extraordinary General Meeting (EGM) Essentials of a valid meeting 309

14 I-36 CONTENTS 3.5 Resolutions Ordinary resolution Special resolution Resolution requiring special notice Motion v. Resolution Role play Glossary Summary Case with Solution Cases for practice Chapter end questions 319 Questions from previous exams Exercises WINDING UP 4.1 Introduction Modes of Winding up Winding up by court or compulsory winding up Voluntary Winding up Winding up under the Supervision of the Court Official Liquidator (Source and adopted from Role Play Glossary Summary Case with solution Cases for practice Chapter end questions 339 Questions from previous exams Exercise 340

15 CONTENTS I-37 PART VI MISCELLANEOUS 1 INDEMNITY AND GUARANTEE 1.0 Introduction Contract of Indemnity Rights of Indemnity-holder, when sued Contract of guarantee Kinds of Guarantee Distinction between a contract of indemnity and a contract of guarantee Role play Glossary Summary Cases with solutions Cases with hints Chapter end questions 353 Questions from previous exams Exercise BAILMENT 2.1 Introduction Kinds of bailments Duties and rights of bailor and bailee Duties of Bailor Duties of bailee Rights of bailor Rights of bailee Rights of bailor and bailee against a wrong-doer Termination of bailment Pledge 364

16 I-38 CONTENTS 2.6 Role play Glossary Summary Cases with solutions Cases with Hints Chapter end questions 367 Questions from previous exams Exercises QUASI CONTRACTS 3.1 Introduction Types of quasi contracts Leading Cases Role play Glossary Summary Cases with solutions Cases for Practice Chapter end questions 376 Questions from previous exams Exercise 377 ANNEXURE ANNEX A1 : ADDITIONAL PRACTICAL CASES 381 ANNEX A2 : CHARTS AND TABLES FOR RECAPITULATION 394 ANNEX A3 : IMPORTANT CASE STUDIES 412 ANNEX A4 : IMPORTANT SECTIONS UNDER DIFFERENT ACTS 415