AN

INTRODUCTION
TO LAW
 I hereby give and convey to you all and singular, my estate and interests, rights,
claim, title and advantages of and in said orange, together with all its juice, pulp and
seeds, and all rights and advantages with full power to bite, cut freeze, juice and
otherwise eat or consume the same, or give the same away with and without pulp,
juice and seeds, anything herein before or herein after or in any deed or deeds or
instruments of whatever nature or kind whatsoever to the contrary in anywise
notwithstanding….
 The law affects of our lives; it governs our conduct.
 From cradle to grave we are bound by law.
 Law is indispensable vehicle to conserve and transform society.
 Your job, your home, your relationship, your life – and your death all – and more are managed,
controlled and directed by law.
 The law lies at the heart of any society, protecting rights, imposing duties, and establishing a
framework for the conduct of almost every social, political and economic activity.
 Punishing the offenders, compensating the injured and enforcing agreements are merely some
of the tasks of the law. In addition it endeavours to achieve justice, promote freedom, uphold
the rule of law and provide security.
 The principles of law provide uniformity and certainty to the administration of
justice.
 The existence of fixed principles of law avoids the danger of arbitrary, biased
and dishonest decisions.
 The fixed principles of law protect the administration of justice from the errors
of individual judgement.
 It is more reliable than the individual judgement.
 The law facilitates, often even encourages, certain social and economic
arrangements. It provides the rules to enable parties to enter into the contract of
marriage or employment or purchase and sale.

 Company law, inheritance law, property law all furnish the means by which we
are able to pursue the countless activities that constitute social life.

 The main goal of law is justice. Law is effective instrument for securing justice
because it has the sanction of the state power behind it.
 Any commercial transaction requires a clear understanding among the people
concerned.
 While discharging their duties individuals come across legal issues and it is not
feasible to engage a lawyer if the issue is small.
 Even if this issue requires engagement of a lawyer, a well prepared manager can
always brief the lawyer better.
 It is necessary for business owners, managers, and other professionals to have
basic understanding of business law to help them to make better decision.
 Being aware of legal issues will help in making better decisions and know
when to seek legal help.

 You will at some point of your career, encounter issues that pertain to
Intellectual Property; transnational corporations or those involved in
international trade may need to be aware of and adhere to several different tax
laws. A person who knows law will have a competitive advantage in the
corporate world..
 To understand and appreciate the role of law in business formation,
development and corporate management

 To get familiarity with the selected business and economic laws and the
regulations

 To get an exposure to the current legal and regulatory issues in national and
international business through assignment
 To develop abilities to:
 Communicate and work effectively with legal professionals
 Handle with confidence the legal and regulatory issues of national and
international business and its management
Contract Law & Management
CONTRACT
LAW
 The law of contract is one of the basic and fundamental branches of the
discipline called ‘law’.
 It is of utmost relevance to companies, governments, businessmen and to
everyone of us as we, in the course of our life enter into innumerable contracts
with a variety of persons.
 Contract is an aspect of law that affects our day to day lives. It is hard to go
through a day without entering into a contract.
 The study of contract law is important to not only for lawyer but it is of
relevance to people in general.
 Contract law is said to be a part of
Private Law because it does not involve
or bind the State or persons that are not
parties to the contract.

 The contract becoming binding upon

them as a sort of private and self
imposed law. Thus contracts are
voluntary and require an ‘exercise of the
will of the parties’.
ONLINE PORTAL LIKE AMAZON, FLIPKART
DIGILANDMALL.COM LTD is a Singapore based company.

Involved in the business of selling Information Technology products over the internet.

For that purpose it has its own website – http://digilandmall.com

One of the product which Digiland advertised for sale was a HP laser
printer priced at $3,854 on 8th January 2003.
On 8th January 2003, sometime in afternoon, through an error on the part
of one employee of the company the price of the printer was accidentally
altered to $ 66.
One Mr. A was informed of this most extraordinary low price at 1.17 am on
13th January 2003. And he, in turn informed to his friends about it.
It was only on the same day (13th January 2003) when Mr X checked with an employee of the
company whether the posted price of $66 for the printer was correct, that the error was
discovered.

Immediately, steps were taken to remove the printer from the websites. And on 14th January
Mr A and his friends were informed via email that it would not honour the orders.
Consequently the suit was instituted by Mr A to enforce the contracts made pursuant to the
purchase orders placed by them through the internet.
784 persons made total of 1008 purchase orders for 4086 printers
Mr A and his 6 friends made order of 3500 printers out of total order (4086)
Mr A and his friends were graduates, conversant with the usage of internet and its practice and
has a good knowledge of business and commerce.

Decision of the Court ------------------------

 Promises are what contracts are all about.

 A contract is made up of a promise of one person to do a certain thing in

exchange for a promise from another person to do another thing.

 Contract law exists to make sure that people keep their promises and that if
they do not, the law will enforce it upon them.

 Thus, a contract requires an agreement between them.

 Two basic requirements of a contract are:

1. An agreement
2. Legal enforceability
 An agreement comes into being only when
one party makes a proposal or offer to the
other party and that other party signifies his
assent thereto.

 Agreement is an offer coupled with

acceptance.

 There emerges 2 essentials of an agreement

which are:
I. Plurality of persons
II. Consenus ad idem
 Balfour v. Balfour
 Breaking promises is almost
always regarded as immoral, yet
it results in legal consequences
only where certain requirements
are satisfied.
court
 all agreements are contracts if they are made by the free consent of the parties competent of contract for a lawful consideration
and with a lawful object, and are not hereby expressly declared to be void.
 The contract may be in writing if any law specifically provided it to be in writing, executed and registered.
 The following are the essential elements of a valid contract:
 Competent Parties
 Offer and Acceptance
 Free Consent
 Consideration
 Lawful of object
 Certainty and possibility of performance
 Terms of contract should be clear
 Agreement must not be declared void
 Legal formalities
 An agreement made by a person of
unsound mind is considered and
treated on the same lines as in the
case of minor’s agreement.

 The person must be capable of

understanding the business contracts
or business concerned and its
implication.

 A person who is not of a sound mind

is considered to be of unsound mind.
Such person include an idiot, lunatic,
insane or drunk person.
 Certain classes of persons may
be disqualified under certain
enactments from entering into
contracts in respect of matter
specified in those enactments.
 For example- -insolvents,
convicts, alien enemy.
 An agreement to be a contract requires an offer
and acceptance.

 An offer is the first step in the formation of a

contract.

 Proposal – when one person signifies to another

his willingness to do or to abstain from doing
anything with a view to obtaining the assent of
that other to such act or abstinence, he is said to
make a proposal.