Business Law

BBM - 302

Law
Means Rules & it is very wide term includes
different sets of rules regulating external
human action & Conduct of individuals in
their dealing with other individuals & with the
government.
The primary objective of law is to regulate
human relation with other individuals & with
the state.

What is business law?

Business law is a branch of general law. It

relates to industry, trade & Commerce. It
includes law relating to Contracts, sale of
Goods, partnership, Negotiable instrument,
Companies, Co-Operative Societies etc.

Sources of Indian Law

English Law (Principle source of Indian law)
Rules of Equity
Indian Statutes or Act enacted by Indian
Legislature
Judicial Decisions Or Leading Cases
Custom or Trade Usage

Historical Background of the law of

Contracts in India.

Prior to the enactment of Indian Contract Act 1872 there was no uniform law
of Contract applicable to whole India.
Decision Of Court were guided by The Principles of Justice & Equity.
During British Regime The English Law was referred to settle the disputes.
In1781 The supreme Court of Calcutta & in 1797 The supreme Court of
Bombay & madras was Empowered to Supersede English Common Law.
If the parties of Disputes were Mohammedans then Mohammedans Law & if
the Parties of Disputes Were Hindu Then Hindu law is referred.
If the parties are different then Defendant law is applied.
The Indian Contract Act was passed in parliament on 25 April 1872 & come
into force on 1 Sep 1872. It applies to whole of India Except Jammu &
Kashmir.

The act Contained 11 Chapter & 266

Section Divided as follows:

Section 1 to 75 General principles of Law contract.

Section 76 to 124 Contract relating to Sale of goods .
Section 125 to 147Contract Of Guarantee, Indemnity.
Section 148 to 181 Contract of Bailment & Pledge.
Section 182 to 238 Contract of Agency.
Section 239 to 266 Contract Related to Partnership.

Features of Indian Contract Act

Enforcement Of the act

Extent Of the act
Applicability of the act
The act is not Complete & Exhaustive
The act Lays Down the principle, not the Rights
& duties of the parties.
Law of contract creates jus in personam as
distinguished From Jus in rem

Contract
Meaning and Classification

Meaning
An Agreement enforceable by law is a
contract.
Agreement means Promise. Its is created
when a person makes an offer to another
person & other person accept it.
Enforceability refers to the permission of
laws of the country on any agreement.

Contract
Contract = Agreement + Acceptance.
Agreement = Offer + Acceptance.

Therefore
Contract = Offer + Acceptance+ Enforceability

Some Important Comparison

Agreement Vs Contract

Formation
Effect

Void Agreement Vs Illegal Agreement

Void agreement is not enforceable by law, whereas Illegal

agreement is contrary to the provision of the contract act.

Void And Voidable Contract

A void contract cannot create any legal rights. but, a voidable

contract takes its full and proper legal effect unless it is disputed.

Classification
On the Basis of Legality or Enforceability or
Validity.

Valid Contract
Void Agreement
Void Contract
Voidable Contract

On the basis of Mode of Formation.

Express Contract
Implied Contract
Quasi Contract

Classification.
On the basis of Performance

Executed Contract
Executory Contract
Bilateral Contract
Unilateral Contract

Classification

Valid Contracts Contain all the essential of the valid Contract

discussed u/s 2(h) & section 10 of the Indian contract act 1872.

Void Agreement u/s 2(g) an agreement not enforceable by law is

said to be void. Ex- agreement with minor.
Void Contract: U/s 2(j) when agreement is valid & Enforceable but
due to change in circumstances, it becomes enforceable. It is called
void agreement.
Illegal Agreement - an agreement which is expressly or impliedly
prohibited by law is an illegal agreement.
Unenforceable Contract a Contract which is nt supported by law
due to some technical defects.

Classification

Express Contract When Contract is made in a Spoken words or

Written, it is Express Contract.
Implied Contract When Contract is made otherwise then words ie
by act or conduct of the parties it is said implied Contract.
Quasi contract It is Contract Imposed By Law & not a result of
agreement.
Executed Contract When both the parties have completely
performed their obligation it is said to be executed contract.
Executory Contract When The parties to the contract have still to
perform their obligation. It can be of two types:
Bilateral Contract
Unilateral Contract

Essentials of a valid Contract

Plurality Of parties
Agreement
Intention to create legal relationship
Competency of Parties
Free Consent
Lawful Consideration
Lawful Object
Certainty
Possibility Of performance