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Q.1 what are the sources of Indian law?

Discuss any one important source of law and justify why it is important. Ans.1. The main sources of modern Indian law may be divided into two broad categories: 1. Primary sources of Indian Law The primary sources of Indian Law are:  Custom   Judicial precedent (stare decisis) Statute

 Personal law 2 .Secondary sources of Indian law The secondary sources of Indian Law are English Law and principles of Justice, Equity and Good Conscience. A. English Law The chief sources of English law are:  Common law   Equity Law merchant

 Statute law B. principles of Justice, Equity and Good Conscience 1 .Primary sources of Indian Law: Custom Customs have played an important role in making law and therefore are also known as customary laws. In the words of Keeton, customary law may be defined as “those rules of human action, established by usage and regarded as legally binding by those to whom the rules are applicable, which are adopted by the courts and applied as sources of law because they are generally followed by the political society as a whole or by some part of it”. In simple words, it is a generally observed course of conduct by people on a particular matter. When a particular course of conduct is followed again and again, it becomes a custom. Judicial precedent Judicial precedent is another important source of laws. It is based on the principle that a rule of law that has been settled by a series of decisions generally should be binding in court and followed in similar cases. Only those rules that lay down some new rules or principles are treated as judicial precedents. Thus, where there is a settled rule of law, it is the duty of the judges to follow the same; they cannot substitute their opinion for the established rule of law. This is known as the doctrine of „stare decisis‟. The literal meaning of this phrase is “standing by the decision”. Statute Statutory law or legislation is the main source of law. This law is created by legislation of bodies such as the Parliament. It is called statute law because it is the writ of the state and is in written form ( jus scriptum). In India, the Constitution empowers the Parliament and state legislatures to promulgate law for the guidance or conduct of people to whom the statute is made applicable, either expressly or by implication. It is sometimes called enacted law because it is brought into existence by passing acts in the legislative body. Personal Law Many times, a point of issue between the parties to a dispute is not covered by any statute or custom. In such cases, courts are required to apply the personal law of the parties. Thus, in certain matters, we follow the personal laws of Hindus, Mohammedans and Christians.


Effect of absence of one or more essential elements of a valid contract: If one or more essentials of a valid contract are missing. Anil appoints Bharat. void. may employ agent (Section 183). the proposal is said to be accepted. Agent and Agency b. The airline is under an obligation or duty to take X from Mumbai to Bangalore on 10 January. Contract: According to Section 2 (h) of the Indian Contracts Act. Thus. To constitute a contract. There is no bar to the appointment of a minor as agent.Q.2 what is a contract? Which test would you apply to ascertain whether an agreement is a contract? Ans. a broker. 2 . For example. For an agreement. Enforceability by law: The agreement must be enforceable by law to become a contract. a contract is an agreement enforceable by law made between at least two parties as per which rights and obligations are mutually created for both parties. A proposal. an agent is defined as “a person employed to do any act for another or to represent another in dealings with a third person”. an agent is a person who acts in place of another. Write short notes on: a. then the other party has a remedy in law. a promise becomes essential. there must be an agreement between two or more parties. it is immaterial whether or not the agent is legally competent to contract. 1872.2 A. then the contract may be voidable. The relationship between Anil and Bharat is called an agency and is based on an agreement whereby one person acts for another in transaction with a third person. No qualifications as such are prescribed for a person to appoint an agent. Thus. In a contract. Essentials of a contract Section 10 of the Contracts Act provides that all agreements are contracts if they are made by free consent of parties competent to contract for a lawful consideration with a lawful object and are not expressly declared by law to be void. Who may be an agent? Since an agent is a mere connecting link or a „conduit pipe‟ between the principal and the third party.3. when accepted. there are certain agreements that do not become contracts as the element of enforceability by law is absent. When the person to whom the proposal is made provides his/her assent. Bailor and Bailee Ans. If the party who had agreed to do something fails to do that. 1 . there are at least two parties. The person for whom or on whose behalf he acts is called the principal. Anil is the principal and Bharat is his agent. An agreement is composed of two elements – offer or proposal by one party and acceptance thereof by the other party. 3. B. The word promise is defined by Section 2 (b) of the Contracts Act.A) Agent and Agency: According to Section 182. Agreement : Section 2 (e) of the Contracts Act defines an agreement as every promise and every set of promises forming a consideration for each other”. X has the right to sue the airlines for breach of contract. illegal or non-enforceable. One cannot enter into a contract with oneself. One of them makes a proposal (or offer) to the other to do something with a view of getting approval of the other to such an act. In case the airline fails to fulfill its promise. Q. becomes a promise according to Section 2 (b). 2.Who can employ an agent? Any person who is attained majority according to the law to which he is subject and who is of sound mind. except that he has attained majority and is of sound mind. Example: D Airlines sells a ticket on 1 January to X for the journey from Mumbai to Bangalore on 10 January. to sell his Maruti car on his behalf.

since Kiran is a minor and a contract with a minor is void ab initio. Not to mix bailor’s goods with his own (Sections 155-157) – If the bailee without the consent of the bailor mixes the goods of the bailor with his own and the goods cannot be separated or divided. Section 158 provides that in the absence of a contract to the contrary. Kiran sells it for Rs. the bailee shall bear the expenses of separation or division and any damages arising from the mixture To return goods bailed without demand (Section 160) – It is the duty of the bailee to return.4.000. take of his own goods of the same bulk. all faults in goods bailed. of which he/she is aware of. any increase or profit that may have accrued from the goods bailed. the bailor is responsible for bearing only extraordinary expenses. to sell his car for not less than Rs. To bear expenses in case of gratuitous bailment – Regarding bailment under which the bailee is to receive no remuneration. or according to his/her directions. This applies to all cases whether the firm is for a fixed period or otherwise.e. uses them in a way not warranted by the terms of bailment. be dissolved with the consent of all the partners. or deliver according to the bailor‟s directions. the bailee is bound to take care of the goods bailed to him as a man of ordinary prudence would. 80. B) 4. as soon as the time for which they were bailed has expired. To bear expenses in case of non-gratuitous bailment – In case of non-gratuitous bailments. or the purpose for which they were bailed has been accomplished.4 Dissolution of firm: When the relationship between all the partners of the firm comes to an end.3. 3.1 Duties of a bailor To disclose known faults in goods (Section 150) – The bailor is bound to disclose to the bailee. 4. he is liable to make compensation to the bailor for any damages arising to the goods from or during such use of them.2 Duties of a bailee To take care of goods bailed (Section 151) – In all cases of bailment. There is no question of „reconstituted firm‟ in such a case.Example: Rahim appoints Kiran. i. . 90. or to receive goods or give directions respecting them (Section 164).3. the goods bailed without demand. A firm may be dissolved in any of the following ways: By mutual consent – Section 40 provides that a firm may. . it is called dissolution of the firm. what is the meaning of dissolution of firm? Is it different from dissolution of partnership? Ans. To return any accretion to goods bailed (Section 163) – In the absence of any contract to the contrary. a minor. under similar circumstances. To bear liability for breach of warranty as to title – The bailor is responsible to the bailee for any loss that the bailee may sustain by reason that the bailor was not entitled to make the bailment. the bailee is bound to deliver to the bailor. Not to make unauthorized use of goods (Section 154) – In case the bailee makes unauthorized use of goods. Rahim will be held bound by the transaction and further shall have no rights against Kiran for claiming the compensation for having not obeyed instructions. at any time. quality and value as the goods bailed. 3 . It naturally involves closing down the business. Q. the bailor must repay to the bailee all necessary expenses incurred by him for the bailment.000.

Promissory notes 4 . Holder can sue in own name – Another feature of a negotiable instrument is that its holder in due course can sue on the instrument in his/her own name and he/she need not give any notice to the transferor or third party liable for payment. it would not amount to “dissolution of firm”. Dissolution of firms and partnerships Section 39 provides that the dissolution of partnership between all the partners of a firm is called the “dissolution of the firm”.. if they satisfy certain conditions. if the partnership relates to more than one adventure. the illegality of one or more of them does not prevent the lawful adventure from being carried on by the firm. Partners’ becoming alien enemies – Section 41 also covers cases of partnership between persons who become alien enemies by a subsequent declaration of war..e. Transfer infinitum – A negotiable instrument can be transferred infinitum. The term “negotiable instrument” refers to a written document transferable by mere delivery or by indorsement and delivery to enable the transferee to get a title in the instrument. Laws relating to negotiable instruments are contained in the Negotiable Instruments Act. It follows that if the dissolution of partnership is not between all the partners. An instrument is called „negotiable‟ if it possesses the following features: Freely transferable – Transferability may be by either by delivery. The contract providing for dissolution may have been incorporated in the partnership deed itself or in a separate agreement.5 what do you mean by negotiable instruments? Explain the difference between bill of exchange and promissory note. In such a case. but it would nevertheless be “dissolution of partnership”. it leads to dissolution of the firm. i. but that its holder in due course or a bonafide transferee is not affected by defect in title. Thus. the partnership is dissolved because trading with an alien enemy is against public policy. Q. it can be transferred any number of times till its maturity. Presumptions – A negotiable instrument is subject to certain presumptions in law. However. but dissolution of partnership need not lead to dissolution of firm. An instrument may possess the characteristics of negotiability either by statute or usage.5 Negotiable Instruments: Documents that are freely used in commercial transactions and monetary dealings are known as negotiable instruments. Dissolution of partnership may involve merely a change in the relation of the partners and not the dissolution of the firm. By business becoming illegal – Section 41 provides that a firm is dissolved by the happening of any event that makes it unlawful for the business of the firm to be carried on or for the partners to carry it on in partnership. By the insolvency of all the partners but one – If all the partners or all the partners but one become insolvent.By agreement – Section 40 also provides for the dissolution of a firm in accordance with a contract between the partners. Section 41 calls this as compulsory dissolution. either of the transferor or any prior party. or endorsement and delivery. dissolution of firm always implies dissolution of partnership. Holder’s title free from defects – The term „negotiability‟ means that not only is the instrument transferable by endorsement and/or delivery. 1881. Ans.

It may be the drawer himself or any other person. a stranger may accept the bill on behalf of the drawee. The endorsee – the person in whose favour the note is negotiated by indorsement. Parties to a bill of exchange The parties of bill of exchange are: The drawer: The person to whom the amount of the bill is payable. The endorsee: It is the person to whom the bill is negotiated by endorsement. Rights under RTI Act.6 Discuss the provisions of Right to information act. directing a certain person to pay a certain sum of money only to or to the order of. Parties to a promissory note The maker – the person who makes the note promising to pay the amount stated therein.2000. The drawee: The person on whom the bill is drawn. the bearer or possessor is the holder. 2005. In case of a bearer bill. the endorsee. The endorser: It is the person who endorses a bill. signed by the maker. 2005 Right to Information Act. It does not include a bank or currency note. The Act extends to the whole of India except the State of Jammu and Kashmir. however. In certain cases. 2005. was implemented in our country on 15 June 2005 and became operational on 12 October 2005. containing an unconditional order. Bill of exchange A „bill of exchange‟ is defined by Section 5 as „an instrument in writing. or to the bearer of the instrument‟. signed by the maker to pay a certain sum of money to a specified person or to his order (Section 4).A promissory note is an instrument in writing containing an unconditional undertaking. The payee – the person to whom the amount of the note is payable. The holder – is either the original payee or any other person in whose favour the note has been endorsed. 2005 and information technology act. The endorser – the person who endorses the note in favour of another person. Drawee in case of need. Thus. Q. Ans. The payee: The person to whom amount of the bill is payable.6 RTI Act. a certain person. the drawee is the person responsible for acceptance and payment of the bill. Acceptor for honour. The holder: It is the original payee but where the bill has been endorsed. empowers every citizen to:  Pose any questions to the Government or seek any information     Obtain copies of any Government documents Inspect any Government‟s documents Inspect any Government‟s works Take samples of materials of any Government work 5 .

2000: Objectives of the act The objectives of the Act as reflected in the preamble to the Act are:  To provide legal recognition for transactions carried out by means of electronic data interchange and other means of electronic communication. 14. and To provide for matters connected therewith or incidental thereto.2 Commencement and Application It extends to the whole of India and saves as otherwise provided in this Act.Coverage of the Act: The RTI Act covers:  All levels of the Government – Centre. 1882 A will as defined in Section 2 (h) of the Indian Succession Act. Applicability of the Act This Act is not applicable to the following:  A negotiable instrument (other than a cheque) as defined in Section13 of the Negotiable Instruments Act.  NGOs that are financed substantially with public funds provided by Government. 1881      A power-of-attorney as defined in Section 1A of the Power of Attorney Act. including any other testamentary disposition by whatever name called Any contract for the sale or conveyance of immovable property or any interest in such property. commonly referred to as “electronic commerce”. Information Technology Act. which involves the use of alternatives to paper-based methods of communication and storage of information     To facilitate electronic filing of documents with the government agencies To facilitate electronic storage of data in place of paper-based methods of storage of data To amend the Indian Penal Code. State. and Any such class of documents or transactions as may be notified by the Central Government in the Official Gazette. 6 . 1925. 1872. the Indian Evidence Act. the Banker‟s Books Evidence Act. District and Local Self Governing Bodies like Panchayat and Municipal bodies.3. 1891. Moreover. it applies to any offence or contravention there under committed outside India by any person. 1882 A trust as defined in Section 3 of the Indian Trust Act. and the Reserve Bank of India Act. 1934.