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It is important for any person to know law as ignorance of law is no excuse.

Modern Indian law has been derived from some sources. Discuss the primary and secondary sources of Indian law.

The main sources of modern Indian Law, as administered by Indian courts, may be divided into two broad categories: (i) Primary sources and, (ii) Secondary sources. Primary sources of Indian Law The primary sources of Indian Law are:

Custom Judicial precedent (stare decisis) Statute Personal 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 orcustom. In such cases, courts are required to apply the personal law of the parties. Secondary sources of Indian law The secondary sources of Indian Law are English Law and Justice, Equity and Good Conscience. English law the chief sources of English Law are:

(i) The Common Law (ii) Equity, (iii) The law Merchant and (iv) The Statute Law.

We all enter into many contracts in a day knowingly or unknowingly. Explain the definition of a valid contract. How are contracts classified?

uite simply, Contract or an Agreement is: 1. An agreement, based on an intent, between two parties whereby Party 1 supplies goods, performs works or provides services (known as Consideration) to Party 2 with obligations clearly stated; and 2. Party 2 agrees to pay (known also as Consideration) Part y 1 for the goods, works or services that it receives, with obligations clearly stated. 3. Obligations of Party 1 and Part 2 are clearly stated. 4. This agreement has to be recognized by law or else there will be no Contract or the contract will be null and void. (For example a Contract to cause physical/bodily harm to a person or contract to sell illicit drugs are not recognised by law.) 5. Parties must have the capacity to contract (defined by countries civil code). 6. Individuals entrusted with the responsibility of entering into a Contract from the Client as well as the Contractor must be authorised to do so on behalf of their respective companies. (It thus is important to verify capacity of individuals acting on behalf of companies such as Power of Attorneys.) 7. Party/parties should not have entered into a Contract under duress or undue influence. When the above conditions are satisfied, there is said to be a binding (enforceable in law) Contract in existence between the Parties. Internationally this form of Contract is binding on both parties for a certain period of time e.g. six (6) years following completion. There is another form of Contract known as Seal or Deed where the Contract is binding on both parties for a period of twelve (12) years following completion in some countries. A Contract under seal (like the seal of a Notary) is considered a

more formal Contract. Generally, valuable consideration is necessary to make an enforceable Contract but for a Contract under seal, no consideration is necessary. During the early and mid 1900s and earlier, a seal on a Contract or promise amounted to good consideration for that promise, despite the fact that the promisor puts the seal on the Contract. However in todays evolved legal environment, intention of the parties is given more importance when it comes to deliberating upon disputes and it makes little if any difference if a Contract was under seal or not. This information is provided for academic interest only as, the laws of the country where a Contract operates should be examined for a fuller understanding. The Contract or Agreement comes into existence as an end product of the process of Tendering, concluded formally or informally, orally or in writing. The primary objective in the process of Tendering for Works and Services is to get the best value for money from the overall cost to company point of view. The overall cost could include technical capabilities on offer, completion duration, life cycle cost, commercial/ contractual terms and conditions and any other considerations. Considering these issues, selection of the Contractor should thus be on the basis of technically capable, contractually compliant and lowest quoted price Tender/offer. In our daily lives, all of us deal with Contracts day-in-day-out, knowingly or unknowingly, formally or informally. However the key to a smooth or successful Contract conclusion and completion is in dealing with issues leading upto its conclusion based on the above principle of best value for money. In the absence of doing so we sometimes might tend to mis-emphasise and mis-construe its so called core principles, with a short term commercial decision or without a holistic approach. For example how many times have we awarded a Contract for house construction to the cheapest one instead of to the one who completes it on time however little expensive it might apparently look, in comparison or not awarding to the one who uses good quality products. These are some of the very issues that should merit consideration in the best value for money approach. Contracts can be classified on a number of basis: 1. Classification on the basis of creation or formation: A contract may be created - (i) expressly, (ii) impliedly. (i) Express Contract: An express contract may be created orally, i.e., by words spoken or written. When one party makes the offer by words spoken or written and the other party accepts the same accordingly, there is an express contract created. (ii) Implied Contract:

An implied contract is created by the conduct of acts of the parties and not by words spoken or written. For example, A boards a public bus, say a D.T.C. bus in Delhi or a M.E.S.T. bus in Mumbai. (iii) Quasi-Contracts: Indian Contract Act has named such contracts as "Certain relations resembling those created by contracts." Such contracts are not created expressly or impliedly by the parties but are created by law on the equitable principle that a person shall not be allowed to become rich at the expense of the other. For example, A, a trader, leaves certain goods by mistake at B's house. B must either return the goods or pay the price. (iv) Unenforceable Contracts: The term 'Unenforceable Contract' is used for those contracts which are perfectly valid but cannot be enforced due to certain technical defects such as under stamping. These types of contracts cannot be placed in the category of void or illegal agreement. Hence the new term "Unenforceable Contract" is justified. If the defect can be removed, these contracts can be enforced. For example, if the requisite stamp is affixed, the Court may enforce such a contract. 2. Classification on the basis of Execution: (i) Executed Contract: Where a contract has been performed by both the parties, it is called an executed contract. For example, A agrees to sell a sofa set to B. A has delivered the sofa set and B has paid the price. (ii) Executory Contracts: A contract where both the parties have not yet performed their obligation, the contract is called executory contract. If in the above example, both have to perform their obligations, it will be an executory contract. (iii) Partly executed and executory contract: Where only one of the parties to the contract has performed its obligation, the contract is called partly executed and executory. For example, in the above case if A delivered the sofa set, but B has not made the payment, it will be a partly executed and executory contract. (iv) Bilateral Contracts: Executed and executory contracts are also called bilateral contracts as both the parties have either performed or have to perform their obligation. (v) Unilateral Contracts:

A partly executed contract is also called unilateral contract as the contract is to be performed by only one of the parties i.e., unilaterally. 3. Classification on the basis of Formality: (i) Formal Contracts: A formal contract is one which is entered into in a particular or prescribed form. It is in writing and is to be signed, sealed and delivered by the parties. In addition witness and attestation may also be necessary. Formal contracts can be sub-divided into: (a) Contracts of record which may take the form of a judgement of a court or recognizance. A court judgement on being recorded is called a contract of record. Recognizance is a written acknowledgement of debt due to the Crown or the State. (b) Contracts under seal are written documents signed, sealed and delivered by the parties. Such a contract is based on form alone. No consideration is necessary in such contract. (ii) Simple Contract: All contracts which are not formal contracts, i.e., which are not made under seal are simple contracts. These can be made orally or in writing and must be supported by consideration.

The parties to bailment have certain rights and duties. Discuss the duties of both parties i.e. the bailor and bailee.

1. To take reasonable care of the goods bailed: It is the duty of the bailee to take reasonable care of the goods bailed as a man of ordinary prudence would, under similar circumstance, take care of his own goods of the same bulk, quality and value as the goods bailed. It should be noted that the degree of care will be the same whether the bailment is gratuitous or non- gratuitous, i.e., for reward or not for reward. If he has taken reasonable care, he is no more liable (Sees. 151 and 152). Examples: (1) Some cattle belonging to A were left in the custody of B. One day the cattle were stolen without B's negligence. B did not inform either the owner or the police, under the impression that it will be of no use. Held, B was liable for the loss unless he could prove that in spite of the report, the cattle could not have been recovered. [Coldman v. Hill]

(2) A customer entered a restaurant for dining: His coat was taken over by a waiter. He hung it on a hook behind A. The coat was stolen. Held, the proprietor of the restaurant became bailee of the coat and as such, was liable for the loss. [Ultzen v. Nicols], It should be noted that the amount of care required by Sec. 151 of the Contract Act is irreducible by any contract between the parties. [Central Bank of India v. Grains and Gunny Agencies]. Clause 9 of the agreement read. "That during the continuance of this Agreement, the Bank shall not be responsible notwithstanding anything to the contrary in Sec. 152 of the Contract Act, for any loss or deterioration of or damage to the said goods whether caused by theft, fire, rain, flood, earthquake, lighting or any other cause whatsoever." The Court recorded its view that the clause does not exonerate the Bank on account of the negligence of its servants. 2. Not to make any unauthorized use of goods bailed: A bailee is under a duty to use the goods according to the terms of the agreement. In case he makes unauthorized use of the goods, he will be liable to make good the loss. (Sec. 154). It should be noted that if the bailee makes unauthorized use of the goods his liability is absolute. He will be liable even if he is not guilty of negligence or even if the loss is the result of an accident or act of God (Sec. 154). Example: A lends his horse to B for his own riding. B allows his son C to ride the horse. C rises the horse with care but the horse accidentally falls and is injured. B is liable to A for the injury caused to the horse. 3. Not to mix the goods with his own goods: The bailee should not mix the goods bailed with his own goods. He should keep these goods separately. If he mixes the goods: (a) With the consent of the bailor: In this case, the bailor and bailee shall have proportionate interest in the mixture i.e., the goods mixed. (b) Without the consent of the bailor. (i) When the goods can be separated: The bailee is bound to bear the expenses of separation and any loss or damage arising from the mixture. (ii) When the goods cannot be separated: The bailee will have to bear the loss (Sec. 157). Example:

A delivers 10 kg pure ghee to B. B, without A's consent, mixes the ghee with his Dalda ghee (vegetable I oil). It is not possible to separate pure ghee from Dalda ghee. Hence B must compensate A for the loss. (c) In case the goods get mixed due to an accident or by an act of God, or by mistake of the bailee or any third party, the bailee shall bear the loss and expense incurred for separation of goods. In case the goods cannot be separated, the bailee will have to bear the whole loss. 4. Not to set up an adverse title: The bailee holds the goods on behalf of the bailor. He is not entitled to deny the title of the bailor or set up an adverse title. However, in case any third party proves a better title than that of the bailor, the bailee may deliver the goods to that third party. 5. To return the goods bailed: A bailee is under a duty to return or dispose of the goods bailed according to the directions of the bailor as soon as, after the purpose is over or the time for) which they were deposited, has expired (Sec. 160). Further, in case he fails to return the goods, he will be responsible to the bailor for any loss, destruction or deterioration of the goods thereafter, even if he exercises reasonable care on his part (Sec. 161). Example: A left his car at B's workshop for repair. B delays the car unreasonably. Thereafter, the car was| destroyed in an accidental fire. B is liable to make good the loss, although B is not negligent. The bailee, whether the bailment is gratuitous or for reward, is bound to take the same care of the property entrusted to him as a reasonably prudent and careful man may fairly be expected to take care of his own property of the like description. If the property is not delivered to the true owner, the bailee cannot avoid his liability in conversion. Where the bank (bailee) delivers the goods to the wrong person, the liability of the bank is absolute, though there is no element of negligence as the delivery was obtained by means of an artfully forged order [UCO Bank v. Hem Chandra Sarkar]. Where the goods have been bailed by more than one joint owner, the bailee may return the goods to any of them. Consent of all the joint owners is not necessary. Again, in case of gratuitous bailment, the bailor may at any time terminate the bailment even if the goods were bailed for a specified time or purpose. But in such a case, if the bailee suffers a loss in excess of the benefit derived, the bailor will have to make good the loss. (Sec. 159). 6. To return any accretion to the goods:

In the absence of a contract to the contrary, a bailee is bound to return any increase or accretion to the goods bailed. Example: A leaves his cow with B. The cow gives birth to a calf. A is entitled to both the cow and the calf.

A contract comprises of reciprocal promises. In a contract of sale who is an unpaid seller? Discuss the remedies for breach of contract under Sale of Goods Act, 1930.

1. The contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price. There may be a contract of sale between one part owner and another. 2. A contract of sale may be absolute or conditional. 3. Where under a contract of sale the property in the goods is transferred from the seller to the buyer, the contract is called a sale, but where the transfer of property in the goods is to take place at a future time or subject to some conditions thereafter to be fulfilled, the contract is called an agreement to sell. 4. An agreement to sell becomes a sale when the time elapses; all the conditions are fulfilled subject to which the property in the goods is to be transferred. 5. Examples: 6. The Section may be illustrated by the following examples: 7. A agrees to buy a haystack from B on Bs land with liberty to come on Bs land to take it away. This is a sale and B cannot revoke the licence given to A to woo on his land. (Wood Vs Manley 1839) 8. Agreement by A to buy 20 tonnes of oil from the sellers cisterns. The seller has many cisterns, with more than 20 tonnes in them. This is merely an agreement to sale. (White Vs Wilks, 1813) 9. Agreement for sale of a quantity of nitrate of soda to arrive at a certain ship. This is an agreement to sell at a future date subject to the double condition of the arrival of the ship with the specified cargo on board. (Johnson Vs Macdonald 1842) 10. A customer who picks up goods in a self-service shop is merely offering to buy them and the sale is not complete until they are paid for. (Pharmaceutical Society Vs Boots, 1952) 11. A statement or conduct inviting the making of an offer such as by display of goods in a shop does not buy itself bind the shopkeeper to accept the customers offer even at the price displayed or advertised. Such invitation to treat therefore differs from an offer, which is intended to be binding on the person making it and is capable of being accepted without any further negotiation. Where, however, the accessibility to goods in intended to an offer capable of acceptance by customers act such as filling the petrol tank of a car from a self service pump or choosing items in a self service shop or taking goods intended for sale for an automatic vending machine the question of obtaining sellers assent does not arise.

12. Sub-section 1 emphasis the consensual nature of a contract of sale; the parties may agree to such terms as they think fit. A sale can be complete even without effecting immediate delivery and immediate payment. In a contract of sale, the title in goods passes immediately on the payment of price while in an agreement to sale the title in goods passes at a future time subject to conditions to be fulfilled thereafter however, when the goods are accepted by the buyer and the price is received by the seller the sale is deemed to be complete. 13. Sec. 11 - Stipulation as to time Unless a different intention appears from the terms of the contract, stipulation as to time of payment are not deemed to be of the essence of a contract of sale. Whether any other stipulation as to time is of the essence of the contract or not depends on the terms of the contract. Examples: The section may be illustrated by the following examples 1) Sale of some stacks of oak on the sellers ground, upon the terms that they might remain there for four months and the buyer should pay within 12 weeks of the contract. The seller on the expiration of 12 weeks demanded the price which the buyer failed to pay. Later the buyer asked for further time which the seller refused to give, and said that as the buyer had not paid he should not have the stacks. The buyer later tendered the price, but the seller refused to accept it and subsequently resold the stacks. The Buyer was held entitled to recover in an action of trover. ( Martin Dale V/s. Smith 1841) 2) Sale of goods to be shipped and bill of lading to be dated December January. Goods were shipped on 30th January but the bill of lading was dated 2nd February the buyer was held entitled to reject. Goods must be ascertained: where there is contract for the sale of unascertained goods, no property in the goods is transferred to the buyer unless and until the goods are ascertained Synopsis 1. 2. 3. 4. 5. 6. Transfer of property Property cannot pass until the goods are identified Part of a specific whole Property and risk Identification of goods

The Companies Act, 1956 deals with the formation and transaction of business of a company. Discuss the features of a company. Also explain the process of formation of a company

1. Registration: A company is to be compulsorily registered under the Companies Act.

2. Artificial Person: A company is an artificial person. Company is an artificial person, invisible, intangible and existing only in the eyes of law. It is created under the law, not itself a human being. It is called a person as it is clothed with certain rights and obligations. 3. Separate Legal Entity: A company can enter into contracts with its directors, its shareholders and outsiders. It functions through its board of directors. A company is a distinct person, with its own independent identity. One Man Company: When a single person holds almost all the shares of the company, it is called One Man Company. Such a company has a legal personality, if it complies with the necessary requirements of registration (Solomon Vs A. Solomon & Co. Ltd.). Such companies may be public or private companies. Usually, they are private companies Solomon Vs A. Solomon & Co. Ltd.: In Solomon Vs A. Solomon & Co. Ltd. (1897) AC 22,

it has been held that in common law, a company is a legal person or has a legal entity separate from its members and is capable of surviving beyond the lives of its members. In this case, one Solomon was a shoe manufacturer. He incorporated a company name olomon and Co. Ltd. He took over the entire business of a running concern. Solomon and theeven subscribers to the memorandum were he and his family members. Solomon and his two sons were the Directors of the Company. The business of the company was transferred for 30,000. Solomon took 20,000 share of 1 each and debentures worth 10,000 in consideration. The Company went into liquidation, within a year. On winding up, the unsecured creditors contended that the company was not having independent existence as Solomon was the Managing Director of the company and the entire company was under his control. They further contended that Solomon was holding majority of the shares and therefore, the company was merely a sham. Their contention was that the limited firm was only a guise to conceal the real identity of the persons who own. However, it was

held that Solomon and Co. Ltd. fulfilled all the requirements of the legislature. Further, it was held that the company cannot be equated with the members comprising it. The company was not the agent of Solomon. It was therefore, treated as a company, distinct and independent corp orporate Veil: On incorporation, a company assumes a separate personality of its own, called the Corporate veil. On incorporation, the veil is drawn between the company and its members. The advantages of the incorporation separate entity were allowed only to those who make an honest use of the company. Lifting Corporate Veil: There may be circumstances in which the privileges of separate entity, may be misused. In such cases, the court, may disregard the corporate veil. Ignoring separate entity or overlooking corporate personality is known as the phenomenon of lifting corporate veil . Lifting corporate veil is an exception to the decision in Solomons case.

In the case of dishonest and fraudulent use of the facility of corporation, the law lifts the corporate veil and identifies the persons who are behind the scene and responsible for the perpetration of the fraud. (Life Insurance Corporation of India Vs. Escorts Ltd. (1986). Overlooking the corporate personality or separate entity is known as the phenomenon of lifting the corporate veil. 4. Common Seal: Common seal is the signature of the company. As company is an artificial person, it is not bestowed with the body of a human being. The company has a separate legal existence through its common seal. The use of common seal is provided in the articles of association of the company. 5. Separate Property: A company can open a bank account in its name. It can exercise the entire powers incidental to the attainment of the objects of the company. A company can enter into contracts, through its board of directors. Shareholders are not, in the eyes of the law, part owners of the company.

6. Company to Sue and be Sued: A company can sue and be sued in its name. The companys right to sue arises as and when some loss is caused to the company. In case of breach of erformance by any third party, the company can sue the third party in its namhe following are the steps for the incorporation of a company: 1. Application for Availability of Name: A company cannot be registered in the name of an existing company. It also cannot be registered in a name, which is undesirable in the opinion of the Central Government. Therefore, it is necessary for the promoters to find out the availability of the name of the company from the Registrar of Companies. The first step in the formation of a company is the approval of the name by the Registrar of Companies (ROC) in the State/Union Territory in which the company is to be registered. This approval is provided subject to certain conditions. For instance, there should not be an existing company by the same name. Further, the last words in the name are required to be Private Ltd. in the case of a private company and Limited in the case of a Public Company.

Finalisation of name: The application for approval of name should mention at least four suitable names of the proposed company, in order of preference. The ROC, generally, informs the applicant within seven days from the date of submission of the application, whether or not any of the names applied for is available. Once a name is approved, it is valid for a period of six months, within which time Memorandum of Association and Articles of Association together with miscellaneous documents should be filed. If one is unable to do so, an application may be made for renewal of name, by paying additional fees. After obtaining the name approval, it normally takes approximately two to three weeks to incorporate a company, depending on where the company is registered. 2. Filing of Documents: The following three documents are required to be filed with the Registrar of Companies of the State in which the registered office of the company is to be situated: (i) Memorandum of Association, (ii) Articles of Association, and

(iii) Agreement with the company for the proposed appointment of the managing director, whole-time director or manager. The above documents (i) and (ii) are required to be signed by the seven persons in the case of the public company and two persons in the case of private company. 3. Payment of Stamp Duty and Filing Fee: The company has to pay the necessary stamp duty and filing fee, according to the authorized share capital of the company. 4. Declaration of Compliance of Act and Rules: A declaration that the requirements of the Act and the rules framed there under have been complied. This declaration is to be signed by an advocate of the Supreme Court or High Court or attorney or a pleader having the right to appear before High Court. Alternatively, this declaration can be signed by a Company Secretary or Chartered Accountant in whole timepractice, who is engaged in the formation of a company or a person named in the articles as a director. This declaration is also to be filed with the Registrar of Companies, where the registered office of the company woul

5. Additional Requirement, in Case of a Public Company: The following further requirements are to be complied with: (i) A list of persons who have consented to act as directors. (ii) W ritten consent of the directors to act in that capacity. (iii) An undertaking by the directors to take up and pay for the qualification shares. 6. Certificate of Incorporation or Registration: If the Registrar is satisfied that the requirements under the Act for the purpose of registration of a company have been complied with, he shall register the company and issue a certification of incorporation, under his hand and sea
With Information Technology Act, 2000, India has a set of cyber laws to provide legal infrastructure for e commerce. Discuss the objectives and limitations of this Act

In May 2000, both the houses of the Indian Parliament passed the Information Technology Bill. The Bill received the assent of the President in August 2000 and came to be known as the Information Technology Act, 2000. Cyber laws are contained in the IT Act, 2000. This Act aims to provide the legal infrastructure for e-commerce in India. And the cyber laws have a major impact for e-businesses and the new economy in India. So, it is important to understand what are the various perspectives of the IT Act, 2000 and what it offers. The Information Technology Act, 2000 also aims to provide for the legal framework so that legal sanctity is accorded to all electronic records and other activities carried out by electronic means. The Act states that unless otherwise agreed, an acceptance of contract may be expressed by electronic means of communication and the same shall have legal validity and enforceability. Some highlights of the Act are listed below:

Chapter-II of the Act specifically stipulates that any subscriber may authenticate an electronic record by affixing his digital signature. It further states that any person can verify an electronic record by use of a public key of the subscriber. Chapter-III of the Act details about Electronic Governance and provides inter alia amongst others that where any law provides that information or any other matter shall be in writing or in the typewritten or printed form, then, notwithstanding anything contained in such law, such requirement shall be deemed to have been satisfied if such information or matter is rendered or made available in an electronic form; and accessible so as to be usable for a subsequent reference. The said chapter also details the legal recognition of Digital Signatures. Chapter-IV of the said Act gives a scheme for Regulation of Certifying Authorities. The Act envisages a Controller of Certifying Authorities who shall perform the function of exercising supervision over the activities of the Certifying Authorities as also laying down standards and conditions governing the Certifying Authorities as also specifying the various forms and content of Digital Signature Certificates. The Act recognizes the need for recognizing foreign Certifying Authorities and it further details the various provisions for the issue of license to issue Digital Signature Certificates. Chapter-VII of the Act details about the scheme of things relating to Digital Signature Certificates. The duties of subscribers are also enshrined in the said Act. Chapter-IX of the said Act talks about penalties and adjudication for various offences. The penalties for damage to computer, computer systems etc. has been fixed as damages by way of compensation not exceeding Rs. 1,00,00,000 to affected persons. The Act talks of appointment of any officers not below the rank of a Director to the Government of India or an equivalent officer of state government as an Adjudicating Officer who shall adjudicate whether any person has made a contravention of any of the provisions of the said Act or rules framed there under. The said Adjudicating Officer has been given the powers of a Civil Court. Chapter-X of the Act talks of the establishment of the Cyber Regulations Appellate Tribunal, which shall be an appellate body where appeals against the orders passed by the Adjudicating Officers, shall be preferred. Chapter-XI of the Act talks about various offences and the said offences shall be investigated only by a Police Officer not below the rank of the Deputy Superintendent of Police. These offences include tampering with computer source documents, publishing of information, which is obscene in electronic form, and hacking. The Act also provides for the constitution of the Cyber Regulations Advisory Committee, which shall advice the government as regards any rules, or for any other purpose connected with the said act. The said Act also proposes to amend the Indian Penal Code, 1860, the Indian Evidence Act, 1872, The Bankers' Books Evidence Act, 1891, The Reserve Bank of India Act, 1934 to make them in tune with the provisions of the IT Act.

Advantages of Cyber Laws The IT Act 2000 attempts to change outdated laws and provides ways to deal with cyber crimes. We need such laws so that people can perform purchase transactions over the Net through credit cards without fear of misuse. The Act offers the much-needed legal framework so that information is not denied legal effect, validity or enforceability, solely on the ground that it is in the form of electronic records. In view of the growth in transactions and communications carried out through electronic records, the Act seeks to empower government departments to accept filing, creating and retention of official documents in the digital format. The Act has also proposed a legal framework for the authentication and origin of electronic records / communications through digital signature. From the perspective of e-commerce in India, the IT Act 2000 and its provisions contain many positive aspects. Firstly, the implications of these provisions for the e-businesses would be that email would now be a valid and legal form of communication in our country that can be duly produced and approved in a court of law. Companies shall now be able to carry out electronic commerce using the legal infrastructure provided by the Act. Digital signatures have been given legal validity and sanction in the Act. The Act throws open the doors for the entry of corporate companies in the business of being Certifying Authorities for issuing Digital Signatures Certificates. The Act now allows Government to issue notification on the web thus heralding e-governance. The Act enables the companies to file any form, application or any other document with any office, authority, body or agency owned or controlled by the appropriate Government in electronic form by means of such electronic form as may be prescribed by the appropriate Government. The IT Act also addresses the important issues of security, which are so critical to the success of electronic transactions. The Act has given a legal definition to the concept of secure digital signatures that would be required to have been passed through a system of a security procedure, as stipulated by the Government at a later date. Under the IT Act, 2000, it shall now be possible for corporates to have a statutory remedy in case if anyone breaks into their computer systems or network and causes damages or copies data. The remedy provided by the Act is in the form of monetary damages, not exceeding Rs. 1 crore.

Limitations

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