1) Who is an Unpaid Seller? What are his rights against the goods?

Ans =

His rights against the goods are:

a) Rights against the goods

b) Rights against Buyer
2) No Consideration, No Contract. Explain with Exception?
Ans =
3) Features of Negotiable Instrument?

Ans = Negotiable Instruments, in law, a written contract or other instrument whose

benefit can be passed on from the original holder to new holders. The original
holder (the transferor) must countersign the instrument (as in the case of a
cheque) or merely deliver it (as in the case of a bank note) to the new holder;
the new holder is then entitled to the benefit of the instrument (in the case of
a cheque, to the money from the bank; in the case of the bank note, to the sum
promised on the note).

According to section 13 of the Negotiable Instruments Act, 1881, a negotiable

instrument means “Promissory note, bill of exchange, or cheque, payable
either to order or to bearer”.

Major features of negotiable instruments are;

 Easy Transferability- A negotiable instrument is freely transferable.

Usually, when we transfer any property to somebody, we are required to make
a transfer deed, get it registered, pay stamp duty, etc. But, such formalities are
not required while transferring a negotiable instrument. The ownership is
changed by mere delivery (when payable to the bearer) or by valid
endorsement and delivery (when payable to order). Further, while transferring
it is also not required to give a notice to the previous holder.
 Title- Negotiability confers absolute and good title on the transferee. It means
that a person who receives a negotiable instrument has a clear and
undisputable title to the instrument. However, the title of the receiver will be
absolute, only if he has got the instrument in good faith and for a
consideration. Also the receiver should have no knowledge of the previous
holder having any defect in his title. Such a person is known as holder in due
course.
 Must be in writing- A negotiable instrument must be in writing. This includes
handwriting, typing, computer print out and engraving, etc.
 Unconditional Order- In every negotiable instrument there must be an
unconditional order or promise for payment.
 Payment- The instrument must involve payment of a certain sum of money
only and nothing else. For example, one cannot make a promissory note on
assets, securities, or goods.
 The time of payment must be certain- It means that the instrument must be
payable at a time which is certain to arrive. If the time is mentioned as ‘when
convenient’ it is not a negotiable instrument. However, if the time of payment
 is linked to the death of a person, it is nevertheless a negotiable instrument as
death is certain, though the time thereof is not.
 The payee must be a certain person- It means that the person in whose favor
the instrument is made must be named or described with reasonable certainty.
The term ‘person’ includes individual, body corporate, trade unions, even
secretary, director or chairman of an institution. The payee can also be more
than one person.
 Signature- A negotiable instrument must bear the signature of its maker.
Without the signature of the drawer or the maker, the instrument shall not be
a valid one.
 Delivery- Delivery of the instrument is essential. Any negotiable instrument
like a cheque or a promissory note is not complete till it is delivered to its
payee. For example, you may issue a cheque in your brother’s name but it is
not a negotiable instrument till it is given to your brother.
 Stamping- Stamping of Bills of Exchange and Promissory Notes is
mandatory. This is required as per the Indian Stamp Act, 1899. The value of
stamp depends upon the value of the pronote or bill and the time of their
payment.
 Right ot file suit- The transferee of a negotiable instrument is entitled to file
a suit in his own name for enforcing any right or claim on the basis of the
instrument.
 Notice of transfer- It is not necessary to give notice of transfer of a negotiable
instrument to the party liable to pay.
 Presumptions- Certain presumptions apply to all negotiable instruments, for
example consideration is presumed to have passed between the transferor and
the transferee.
 Procedure for suits- In India a special procedure is provided for suits on
promissory notes and bills of exchange.
 Number of transfer- These instruments can be transferred indefinitely till
they are at maturity.
 Rule of evidence- These instruments are in writing and signed by the parties,
they are used as evidence of the fact of indebtness because they have special
rules of evidence.
 Exchange- These instruments relate to payment of certain money in legal
tender, they are considered as substitutes for money and are accepted in
exchange off goods because cash can be obtained at any moment by paying a
small commission.
4) What is Mercantile Law? What are the sources?
Ans = Mercantile law is a body of law or a legal code that deals with international
commerce, business transactions and operations like agreements, contracts,
copyrights, franchising, insurance, licensing, patents, shipping, transport,
trademarks, etc.
Mercantile Law

Mercantile law is a very general term which encompasses the whole collection
of business laws. The most important aspect of any business transaction is the
agreement between the two parties, which is either implied or expressed.

Mercantile Law are:

Partnership Act 1932

Negotiable Instrument Act 1881
Contract Act 1872
Company Act 2013

The Mercantile Law in India developed with the enactment of the Indian
Contract Act, 1872. Before this, all the commercials transactions were
governed by the personal laws of the party to contract. For example Hindu
Law, Mohammedan Law, etc. The first attempt to codify Mercantile Law in
India was made by the Britishers in 1872 by the enactment of Indian Contract
Act. Since then, numerous laws have been enacted in India to regulate
commercial transactions, such as Partnership Act, Negotiable Instruments
Act, etc.

Sources of Mercantile Law

 Common Law: Common law consists of a body of rules, which have

been defined by customs, judicial decisions and old scholarly works in
the law. It is the unwritten law of English which applies to everyone in
the country. Common law, in this case, refers to the principles of law
that have been evolved by judges through their case judgments.
 Statute Law: Statute law is that law that has been created by the
legislation. A statute is a formal act of the legislature in written
form. It has also become an important source of Mercantile law.
  Judicial Decisions : In terms of business law, judicial decisions or
precedents are past decisions of the court that are used to solve cases
with similar characteristics, where there is a conflict of interest and no
clear judgment can be made.

Thus, judicial decisions or precedents often become new rules or laws.

The judicial decisions are universally considered as a source of law.

 Customs and Trade Usages : A very large part of Indian Law has
finally been codified. However, many Indian statutes make special
provisions. Thus, the effect of rules laid down in a particular act is
conditional to any special custom or usage of trade.

Let’s try and understand this with an example. Section 1 of the

Negotiable Instruments Act, 1881 says this. ‘Nothing herein
contained…affects any local usage relating to any instrument in any
local language’.

 Personal Law : Personal law is defined as a law that applies to a certain

class or group of people or a particular person, based on the religions,
faith, and culture. In India, everyone belongs to different caste, religion
and have their own faith and belief. Their belief is decided by the sets
of laws. And these laws are made by considering different customs
followed by that religion. Indians are following these laws since the
colonial period. In this chapter, we will learn about the personal laws
of Hindu, Muslims and the Christain community.

5) Elements Of Valid Contract?

Ans = “Contract is something more than an agreement”. Therefore, it is said that
“all contracts are agreements, but all agreements are not contracts”. To
constitute a contract, the following conditions are to be satisfied:
a. Offer and Acceptance
Basically, a contract unfolds when an offer by one party is accepted by
the other party . The accepted offer should be without any qualification
and be definite. An offer needs to be clear, definite, complete and final.
It should be communicated to the offeree. A proposal when accepted
becomes a promise or agreement. The offer and acceptance must be
‘consensus ad idem’ which means that both the parties must agree on
 the same thing in the same sense i.e. identity of wills or uniformity of
minds.

b. Intention to Create Legal Relationship

The intention of the parties to a contract must be to create a legal

relationship between them. Agreements of social nature, as they do not
contemplate legal relationship, are not contracts. For instance, if a
father fails to give his daughter the promised pocket money, the
daughter cannot sue the father, because it was purely a domestic
arrangement. Thus, it is clear that all agreements, which do not result
in legal relations, are not contracts.

c. Capacity to Contract

If an agreement is entered between parties who are competent enough

to contract, then the agreement becomes a contract.

d. Genuine and Free Consent

Free consent is another essential element of a valid contract. An

agreement must have been made by free consent of the parties. The
contract would be void in case of mutual mistakes. When consent is
obtained by unfair means, the contract would be voidable.

e. Lawful Object

Objectives of an agreement should be lawful. It must not be illegal or

immoral or opposed to public policy. It is lawful unless it is forbidden
by law. When the object of a contract is not lawful, the contract is void.

f. Lawful Consideration

Something in return is Consideration. In every contract, agreement

must be supported by consideration. It must be lawful and real.

g. Certainty and Possibility of Performance

The agreements, in which the meaning is uncertain or if the agreement

is not capable of being made certain, it is deemed void. T&C of the
 contract should always be certain and cannot be vague. Any contract
that are uncertain are considered void. The terms of the agreement must
also be capable of performance and should not enforce impossible act.

h. Legal Formalities

Legal formalities if any required for particular agreement such as

registration, writing, they must be followed. Writing is essential in
order to effect a sale, lease, mortgage, gift of immovable property etc.
Registration is required in such cases and legal formalities in the
relevant legislation should be strictly followed.

6) Essential Elements Of A Contract Of Sale?

Ans =
7) Short notes on Consumer Rights?
Ans =

8) Why do we cross a Cheque?

Ans = In India, a cheque is part of the active financial system which makes it an
important tool to send/receive money without any physical transfer of cash. How
useful is a cheque? In simple terms, a cheque is tagged as an important document
that can be used by an individual, organization or government for the transaction of
different fund values.

For making a successful cheque transfer, it is important for the issuer to maintain an
account, either savings account or current, within a specific bank branch. This would
ensure a trouble-free fund transfer procedure. Although electronic modes of fund
transfer have grown quite popular in today’s time, cheque transaction is still marked
as a secure way of money dealing with businesses across the country.

What is a Cross Cheque?

A crossed cheque is basically any cheque which is crossed with two parallel lines.
The lines can be drawn either across the whole cheque or through the top left-hand
corner. What does it signify? It simply means that the specific cheque can only be
deposited straightway into a bank account and cannot be instantly cashed by a bank
or any credit institution. This ensures a level of security to the payer since it requires
the funds to be handled through a collecting bank.

A crossed cheque is a cheque that has been marked to specify an instruction about
the way it is to be redeemed. A common instruction is to specify that it must be
deposited directly into an account with a bank and not immediately cashed by a
bank over the counter. The format and wording varies between countries, but
generally two parallel lines may be placed either vertically across the cheque or
in the top left hand corner. By using crossed cheques, cheque writers can
effectively protect the cheques they write from being stolen and cashed.

Crossed cheque is a cheque that is payable only through a collecting banker

and not directly at the counter of the bank.

When two parallel transverse lines, with or without any words, are drawn
generally, on the left hand top corner of the cheque.
Different Ways to Cross a Cheque

Cross cheque focuses on the instruction given by the drawer (maker) of the particular
cheque to the drawee bank. This instruction demands to pay the cheque at the counter
of the bank, but with a strict direction to pay it to a person who offers it through a
banker. What is the purpose of crossing? Crossing makes it possible to trace the
person to whom the amount/payment has been made. In India, there are various
crossing tools to safeguard cheque payments such as:

General Crossing

This type of cheque crossing requires two parallel transverse lines. There isn’t any
restriction to put these parallel lines on a specific area on the cheque, but they can
be drawn anywhere. Usually, it is advisable to put it on top left corner of the cheque.
The usefulness or significance of this crossing is that the cheque should essentially
be paid only to the banker.

Special Crossing

Special Crossing cheque does require the name of the banker. The effect of this type
of crossing is that the cheque should be funded only to the banker to whom it is
crossed. It is a reminder to all the people that a special crossing cannot be changed
into the general crossing.

Account Payee Crossing

Account payee crossing is also called as restrictive crossing. This type of cheque
needs to comprise the words ‘account payee’ or ‘account payee only’. Further, the
cheque must be crossed either generally or specially. The significance of this type
of crossing highlights that the cheque isn’t negotiable anymore.

Not Negotiable Crossing

In this type of cheque crossing variety, the paper document needs to contain the
words ‘not negotiable’. Moreover, the cheque can be crossed specially or
generally. What is the effect of this crossing? The cheque remains non-negotiable
(transferrable) as well as the title of the transferre will not be better than the title of
the transferor.
9) Different modes of Termination Of Contract?

Ans = A contract is legally binding agreement. Contracts may be written or oral, but
many important contracts are often written and signed by both parties.
Examples of contracts include sales agreements, real estate purchase
contracts, employment contracts, finder’s agreements, or insurance contracts,
to name a few.

Termination of contract is an act that may occur wherein a contract can be

legally terminated before the contractual duties have been fulfilled. Parties
may choose to terminate contracts for a variety of reasons, but not all
terminations of contracts will allow them to escape liability.

i. Impossibility of Performance

A contract typically requires one or more parties to do something, which is

called performance. For example, a company may hire and sign a contract to
have a public speaker talk at a company event. Once the public speaker
fulfills his duties agreed upon in the contract, it is called performance. If for
some reason it is impossible for the public speaker to fulfill his duties, it is
called impossibility of performance or sometimes "frustration."

For example, if the speaker weer seriously injured and no one could replace
him, that would be impossibility of performance. The company has the right
to terminate the contract in this scenario.

ii. Breach of Contract

When a contract is intentionally not honored by one party, it is called a breach

of contract and is grounds for contract termination. A breach of contract may
exist because one party failed to meet his obligations at all or did not meet his
obligations fully. For example, if you purchased a product that did not arrive
until a day after the agreed upon delivery date, that is an immaterial breach of
contract. However, if your order did not come until two weeks after the
delivery date and it affected your business, then that is a material breach of
contract.

Generally, with a material breach of contract, the injured party has the right
to seek monetary damages for his losses as well as cancel the agreement.
iii. Termination By Prior Agreement

You may terminate a contract if you and the other party have a prior written
agreement that calls for a contract termination because of a specific reason.
The usual name for this type of provision is a break clause. The agreement
must give the details of what qualifies as a reason for contract termination. It
should also state what actions need to take place for one of the parties to
terminate the contract. In most cases, one party must submit a written notice
to the other party to terminate the contract.

iv. Rescission of the Contract

A rescission of a contract is when a contract is terminated because an

individual misrepresented themselves, acted illegally – fraud, for example –
or made a mistake. For example, if you bought a house but after further
inspection you discover that the seller intentionally hid the poor physical
condition of the home, you may possibly rescind the contract. A contract
rescission may take place if one party is not old enough to enter a contract or
if a elderly person is not able to make legal decisions because of incapacity.

v. Completion of the Contract

A contract is essentially terminated once the obligations outlined in the

contract are completed. Parties should keep documentation showing that they
fulfilled their contract duties. Documentation is helpful if the other party tries
to later dispute the fulfillment of your contract obligations. A court of law will
require proof of contract fulfillment if a dispute occurs.
 END TERM

1) Short notes on Consumer Rights?

Or Right To Consumer

Ans =
2) Write in brief about Digital Signature under the I.T. Act?

Ans =
3) Crossing a Cheque?

Ans = The process referred to as Crossing of Cheques specifies a general instruction

to a cheque which is about to be deposited to a bank account. According to Section
123 of the Negotiable Instruments Act, 1881 about Crossing of Cheques, the
instruction stated above defines that the amount specified in the cheque will be
deposited directly unto the account of the Cheque holder and will not be immediately
delivered as cash to the holder over the bank counter. In this article, we look at cross
cheques in detail.

Reasons to Cross Cheque

 Crossing a Cheque provides precise instructions to a financial organisation

regarding the handling of funds.
 Crossed cheques are usually identified by drawing either two parallel
transverse lines either vertically across the cheque or on the top left-hand
corner of the cheque.
 Two or more words like ‘and company’ or ‘not negotiable’ may be placed
between the lines. While just drawing the lines with no words also would not
alter the purpose of the crossed cheque.
 With Crossed cheques, the cheque writers may protect the amount transferred
from being cashed by the unauthorized person or from being stolen.
 This format for Crossed cheques may differ between various countries in the
nature of its format or statements.
 Since the Crossed Cheques can only be paid through a bank account, the
beneficiaries transaction record may be traced later for further queries and
clarifications.

Different Ways to Cross a Cheque

Cross cheque focuses on the instruction given by the drawer (maker) of the particular
cheque to the drawee bank. This instruction demands to pay the cheque at the counter
of the bank, but with a strict direction to pay it to a person who offers it through a
banker. What is the purpose of crossing? Crossing makes it possible to trace the
person to whom the amount/payment has been made. In India, there are various
crossing tools to safeguard cheque payments such as:

General Crossing

This type of cheque crossing requires two parallel transverse lines. There isn’t any
restriction to put these parallel lines on a specific area on the cheque, but they can
be drawn anywhere. Usually, it is advisable to put it on top left corner of the cheque.
The usefulness or significance of this crossing is that the cheque should essentially
be paid only to the banker.
Special or Restricted Crossing

Special Crossing cheque does require the name of the banker. The effect of this type
of crossing is that the cheque should be funded only to the banker to whom it is
crossed. It is a reminder to all the people that a special crossing cannot be changed
into the general crossing.

Not Negotiable Crossing

In this type of cheque crossing variety, the paper document needs to contain the
words ‘not negotiable’. Moreover, the cheque can be crossed specially or
generally. What is the effect of this crossing? The cheque remains non-negotiable
(transferrable) as well as the title of the transferre will not be better than the title of
the transferor.
Account Payee Crossing

Account payee crossing is also called as restrictive crossing. This type of cheque
needs to comprise the words ‘account payee’ or ‘account payee only’. Further, the
cheque must be crossed either generally or specially. The significance of this type
of crossing highlights that the cheque isn’t negotiable anymore.

NOTE: In certain payments such as treasury payments and Income Tax refund
orders there prevails a requirement of acknowledging for the receipt of the amount
and the necessary stamp is also required behind the refund order. Whereas, in the
case of Crossing Cheque, no official stamp registered under the Stamp Act is
required.
Cheque Validity

The validity of a cheque is estimated to be within a period of three months from the
date on which it is drawn. After this period, it becomes stale, and it may result in the
drawee bank refusing to pay the amount. However, if the cheque has become
obsolete due to the expiry of the period of validity, then it can be re-validated by the
drawer.

4) Powers of SEBI (Securities and Exchange Board of India)?

Ans =
5) Corporate Governance?

Ans =

Corporate Governance Law describes ways in which a company is managed and

regulated. Corporate governance aims to keep corporations, financial institutions,
and markets honest and reputable, in order to protect social and economic
development.

Corporate Governance

Corporate governance is the term used to describe the systems, policies, and
processes that allows for a company to run their business in an ethical manner.
Corporate governance is based upon the principles of responsibility, transparency,
fairness, leadership and accountability. Corporate governance focuses on how a
corporation is operated and covers every part of the company organization,
including:

 How a company resolves issues and makes decisions.

 The involvement, contribution, and communication between management,
shareholders, and workers.
 The ways in which rights and responsibilities are shared between the
company's workers, management, and shareholders.
 Policies and procedures for decision making on company affairs.
 Checks and balances designed to eliminate wholesale fraud or abuse of the
office.
 Policies that try to reduce or eliminate the principal–agent problems.
 The relationship between the company and its shareholders.
 Business decisions, ideally made with everyone's best interest in mind, such
as:
o Mergers and acquisitions.
o Litigation.
o Intellectual property.
o Other key decisions made by the corporation.

Corporate Governance Benefits on a Company Level

Corporate executives benefit from corporate governance and keep themselves out of
legal problems by following simple business practices like:
  Appointing strong leaders.
 Making sure the company has enough information and time it needs to make
proper decisions.
 Offering support and resources to management.
 Engaging in crisis management when necessary.

6) CSR (Corporate Social Responsibility)?

Ans = Corporate Social Responsibility (also known as CSR, corporate conscience,

and corporate citizenship) is the integration of socially beneficial programs and
practices into a corporation's business model and culture. CSR aims to increase long-
term profits for online and offline businesses by enabling them to become more
efficient and attract positive attention for their efforts.

Benefits Does CSR Offer to Businesses

Both ecommerce and brick-and-mortar businesses stand to benefit from the

implementation of CSR strategies. Some activities that fall under the umbrella of
CSR, with their corresponding benefits, include:

 Prevent financial ramifications: Compliance with the spirit and letter of the
law — both nationally and internationally — through self-regulatory
processes will prevent fines, put your business "low on regulators' radar
screens," and lower legal expenses.
 Increase employee loyalty: Treating your employees fairly and generously
is a part of corporate social responsibility. By providing good jobs and
encouraging high professional and moral standards, you increase employee
loyalty, and by procuring only those overseas products produced at factories
where workers were treated ethically, you gain support among "Fair Trade"
advocates.
 Maintain a positive reputation: Demonstrated consciousness in a variety of
areas can garner publicity and give a business tangible proof of their conduct,
which can be proudly displayed on a company website. These include:
o Environmental consciousness: Reducing waste, recycling,
minimizing carbon footprint, and other best practices can . Using or
producing only sustainable products, lowering energy usage, and
 supporting environmental causes will boost a business's "green
reputation" among environmentally concerned clients.
o Social Concern: Donating to humanitarian causes that fight persistent
poverty, help the victims of epidemics like AIDS or Ebola, or assist
those displaced by hurricanes or earthquakes shows concern for issues
that consumers are more and more aware of in our modern,
interconnected world.
o Local Community: Involvement in local community projects, either
through financial donations, employee participation, connecting your
customers with project leaders, or promotion of the project through
advertising and fundraising enhances your CSR credentials with clients
in the given location.

NEED OF CSR

CSR is responsible for generating a lot of goodwill to companies either directly or

indirectly. These include-

 Making employees more loyal and help companies retain them in the long
run.
 Make companies more legitimate and help them in accessing a greater market
share.
 Since companies act ethically, they face less legal hurdles.
 Bolster the goodwill of companies amongst the general public and help in
strengthening their “brand value”.
 Help in the stabilization of stock markets in both the short and long run
 Help in limiting state’s involvement in corporate affairs as companies self-
regulate and act as most ethical.

FEATURES OF CSR LAWS

The broad and important features of the CSR laws are as follows:

 Quantum of money utilized for CSR purposes are to be compulsorily included

in the annual profit-loss report released by the company.
 The CSR rules came into force on 1st April 2014 and will include subsidiary
companies, holdings and other foreign corporate organizations which are
involved in business activities in India.
  CSR has been defined in a rather broad manner in Schedule VII of Companies
Act, 2013. The definition is exhaustive as it includes those specific CSR
activities listed in Schedule VII and other social programmes not listed in
schedule VII, whose inclusion as a CSR activity is left to the company’s
discretion.

7) Cyber Crime?

Ans =

Cyber crimes are criminal offenses committed via the Internet or otherwise aided by
various forms of computer technology, such as the use of online social networks to
bully others or sending sexually explicit digital photos with a smart phone. But while
cyber crime is a relatively new phenomenon, many of the same offenses that can be
committed with a computer or smart phone, including theft or child pornography,
were committed in person prior to the computer age. This sub-section includes
articles on cyber bullying, sexting, and a whole host of other crimes commonly
committed online or with the help of computer networking technology.

OR
Cybercrime is defined as a crime where a computer is the object of the crime or is
used as a tool to commit an offense. A cybercriminal may use a device to access a
user’s personal information, confidential business information, government
information, or disable a device. It is also a cybercrime to sell or elicit the above
information online.

Types Of Cyber Crime

Man in the Middle

A man-in-the-middle (MITM) attack is a form of eavesdropping where

communication between two users is monitored and modified by an unauthorized
party. Generally, the attacker actively eavesdrops by intercepting a public key
message exchange and retransmits the message while replacing the requested key
with his own.

In the process, the two original parties appear to communicate normally. The
message sender does not recognize that the receiver is an unknown attacker trying
to access or modify the message before retransmitting to the receiver. Thus, the
attacker controls the entire communication.

Drive By Downloads

A drive-by download refers to the unintentional download of a virus or malicious

software (malware) onto your computer or mobile device. A drive-by download will
usually take advantage of (or “exploit”) a browser, app, or operating system that is
out of date and has a security flaw.

Maladvertising
Malvertising (a portmanteau of "malicious advertising") is the use of online
advertising to spread malware. It typically involves injecting malicious or malware-
laden advertisements into legitimate online advertising networks and webpages.

Rogue Software
Rogue software or rogue is phony software that uses malware to advertise or install
itself or to force computer users to pay for removal of nonexistent malware or
technical issues.
DDos
DDoS is short for Distributed Denial of Service. DDoS is a type of DOS attack where
multiple compromised systems, which are often infected with a Trojan, are used to
target a single system causing a Denial of Service (DoS) attack.

Password Attacks
A password cracker is an application program that is used to identify an unknown
or forgotten password to a computer or network resources. It can also be used to
help a human cracker obtain unauthorized access to resources.
Phishing
Phishing is a cybercrime in which a target or targets are contacted by email,
telephone or text message by someone posing as a legitimate institution to lure
individuals into providing sensitive data such as personally identifiable information,
banking and credit card details, and passwords.

Malware
Malware, or malicious software, is any program or file that is harmful to a computer
user. Types of malware can include computer viruses, worms, Trojan horses and
spyware.
8) Who is an Unpaid Seller? What are his rights against the goods?
Ans =
His rights against the goods are:

a) Rights against the goods

b) Rights against Buyer
9) Elements Of Valid Contract?
Ans =
“Contract is something more than an agreement”. Therefore, it is said that “all
contracts are agreements, but all agreements are not contracts”. To constitute
a contract, the following conditions are to be satisfied:
a) Offer and Acceptance
Basically, a contract unfolds when an offer by one party is accepted by
the other party . The accepted offer should be without any qualification
and be definite. An offer needs to be clear, definite, complete and final.
It should be communicated to the offeree. A proposal when accepted
becomes a promise or agreement. The offer and acceptance must be
‘consensus ad idem’ which means that both the parties must agree on
the same thing in the same sense i.e. identity of wills or uniformity of
minds.

b) Intention to Create Legal Relationship

The intention of the parties to a contract must be to create a legal

relationship between them. Agreements of social nature, as they do not
contemplate legal relationship, are not contracts. For instance, if a
father fails to give his daughter the promised pocket money, the
daughter cannot sue the father, because it was purely a domestic
arrangement. Thus, it is clear that all agreements, which do not result
in legal relations, are not contracts.

c) Capacity to Contract

If an agreement is entered between parties who are competent enough

to contract, then the agreement becomes a contract.

d) Genuine and Free Consent

Free consent is another essential element of a valid contract. An

agreement must have been made by free consent of the parties. The
contract would be void in case of mutual mistakes. When consent is
obtained by unfair means, the contract would be voidable.
e) Lawful Object

Objectives of an agreement should be lawful. It must not be illegal or

immoral or opposed to public policy. It is lawful unless it is forbidden
by law. When the object of a contract is not lawful, the contract is void.

f) Lawful Consideration

Something in return is Consideration. In every contract, agreement

must be supported by consideration. It must be lawful and real.

g) Certainty and Possibility of Performance

The agreements, in which the meaning is uncertain or if the agreement

is not capable of being made certain, it is deemed void. T&C of the
contract should always be certain and cannot be vague. Any contract
that are uncertain are considered void. The terms of the agreement must
also be capable of performance and should not enforce impossible act.

h) Legal Formalities

Legal formalities if any required for particular agreement such as

registration, writing, they must be followed. Writing is essential in
order to effect a sale, lease, mortgage, gift of immovable property etc.
Registration is required in such cases and legal formalities in the
relevant legislation should be strictly followed.
10) Independent Director?

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11) Short note on “Appreciable Adverse on Competition or not”?
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12) Anti-Competetive Agreements?

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13) Public and Private Limited Company?

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14) Sale & Agreement to Sell?

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15) Fera and Fema?

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Questions Left
 Features of Registered Company
 Consumer Dispute redressal Authority