Business_Law_Assignment_Sep_2022

Q1. Arun is protesting the enforcement of a contract executed for the sale of his
flat. He claims that this is a voidable contract. Please explain under which
instances Arun can protest the agreement as a voidable agreement. (10 Marks)

A1.

Under certain legal situations, a voidable contract gives the aggrieved party an option to
either adopt or rescind the transaction. Since not all contracts are voidable; a law-breaking
precedent must be compelled to exist to discharge an obligation. A rescindable contract
seems lawful and enforceable at first glance, but one party might reject it if flaws are
determined. If a party with authority to reject the contract, decides not to reject it despite
the fault, the agreement remains criminal and enforceable. In addition, the affected party
may also suffer huge penalties. Committing to a voidable agreement sometimes harms
one of the events because of that character fails to understand the other's dishonesty or
fraud.

Concept and application

Times of a voidable contract

Voidable agreements are represented as ones that can be legal if one or each party may
choose to void their agreement. Maximum voidable contract disputes contain a scenario
within which one in every of the events failed to consent. As a result, if one party accepts
the contract's phrases, the deal remains legal; if the alternative party does no longer, the
contract is voided. Coercion, fraud, undue have a bearing, and other elements all play a
role in establishing whether a contract could be canceled at each parties' discretion.

Absence of free consent (Sections 19 and 19-A): According to these provisions, any
contract in which a party's consent is not freely granted is voidable at the discretion of
that party. In such instances, consent gained via pressure, deception, or undue influence
is illegal and prohibited.

Preventing the other party from performing (Section 53): While the opposite party
prevents the other from fulfilling their responsibilities beneath a contract primarily based
altogether on a reciprocal promise, the agreement will become voidable at the discretion
of the party prevented from satisfying their promise. Failure to complete a contract within
a specific time restriction (section 55): There are a few contracts in which time is vital,
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and they must be compelled to be finished within that point variety. While if a contract is
not finished on time, the aggrieved party may declare the deal null and void.

Rescinding a contract (section 64) has the later effects: Once an individual whose
discretion makes the contract voidable rescinds it, the opposite party is relieved of all
contractual duties. At an equal time, the individual that terminated the settlement is
answerable for any benefits received.

Coercion: "Coercion" is outlined as "committing, or threatening to dedicate, any act

prohibited by victimization of the Indian Penal Code, 1860, or unlawfully detaining, or
threatening to detain, any assets, to the bias of any character in any respect, with the
motive of inflicting a person to agree," as in step with section 15. It makes no distinction
whether the Indian Penal Code, 1860, is in effect or not within the place where the
compulsion is employed.

Undue influence: The following elements are needed for undue impact beneath section
16 of the Indian contract Act of 1872:

• The parties' interactions are such that they probably exert management over the will of
the opposite. Control may be established within the following approaches:
• While one aspect has real or perceived electricity over the opposite party.
• A fiduciary entreaty exists among the parties. An example is a solicitor and his client, a
trustee and his acceptance as accurate, a non secular counselor and devotee, and a clinical
attendant and his patient.
• Such an individual exploits their dominant role to urge an unfair gain over others.
An agreement vitiated by a disproportionate impact is voidable at the choice of the party
whose consent turned into acquired utilizing influencing them, in step with section 19A of
the Indian contract Act, 1872. Such agreements can be prevented completely or based on
a fixed terms and conditions.

Fraud: A false declaration, spirited concealment, a promise made without the intent to
fulfill, a deceiving act, or any act considered fraudulent are all listed as behaviors that
establish fraud below segment 17 of the Indian contract Act, 1872. Albeit the permission
was noninheritable through deception, consisting of falsehood or silence, as specified via
segment 17, the contract is legitimate if the person who gave consent had the opportunity
to acknowledge the facts with regular attempts.
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Misrepresentation: When one party (or their agent) offers misguided information to the
alternative party prior to the agreement is established to stimulate the opposite party to
interact within the agreement, this is known as misrepresentation underneath phase 18 of
the Indian contract Act, 1872. If an individual is duped into moving into a settlement and
suffers a loss; as a result, they will either cancel the settlement or sue for damages.

Conclusion:

It’s way self-obvious that the concept of a voidable contract respects the contracting
parties' liberty by underlining the events' preference to enter into the settlement. Section
75 of the Indian contract Act, 1872, curiously, helps this idea, mentioning that events
legally rescinding a contract are entitled to compensation for the damage incurred due to
the contract's non-fulfillment. This underlying notion of voidable agreement similarly
highlights the importance of 'unfastened consent in agreement law jurisprudence.

2. Please give two (2) real-life instances where individuals or entities are
prosecuted for violating the Information Technology Act, 2000. (10 Marks)
A2.

The Information Technology Act, 2000 comprise of a total 13 chapters and 90 provisions
in the act. Sections 91 to 94 deals with the revisions to the IPC 1860, the IEA 1872, and
the Bankers' Books evidence Act 1891, and the Reserve bank of India Act 1934. The act
additionally includes the chapters on electronic record authentication, digital signatures,
and other relevant matters.

There are underlying procedures for the certifying authorities and electronic signatures.
The IT Act, 2000 has been made to incorporate and outline the civil offense of robbery
and the assessment and appeals methods. The act then defines and describes a number
of the foremost well-known cybercrimes and also the penalties associated with such
activities. The concept of due diligence, the role of intermediaries, and a few other clauses
were then talked about.

Concept and application

Two real-life instances
Following are the two actual-life examples where people were prosecuted for violation of
the IT Act, 2000:
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1. Avnish Bajaj v. State of Delhi, (2008) 150 DLT 769
The criminal prosecution launched against the managing director of a company/website
(baazee.com) below segment 292 of the IPC and section 67 of the IT Act, 2000 was
challenged on this petition filed beneath section 482, CrPC. The website served as a virtual
marketplace within which consumers and sellers ought to speak. The petitioner
aforementioned that as a result of the website organization not being named as a
defendant within the case, he could not be made accountable under the section 85 of the
IT Act. Section 85 states that when a person violates any provision of this act or any rule,
path, or order issued there under beneath, every person who, at the time the violation
becomes committed, becomes in charge of the corporation and responsible for the
behavior of the company's business as well as the company, will be guilty of the violation
and liable to be prosecuted and reprimanded by the regulation. Segment 67 states
intermediary shall keep and keep such facts as can be specified for such period, in such
means and layout as result of the critical authorities may additionally specify, and any
intermediary who willfully or knowingly contravenes are reprimanded by way of
imprisonment for a term up to a few number of years and a high-quality.

Then again, the respondent-state maintained that the petitioner couldn't avoid legal
consequences because he failed to establish an enough clear out on its internet site for
obscene data. Additionally, it is argued that the offense becomes severe enough that it
should not move unadmonished attributable to technicalities. The court mentioned that
the IPC no longer understands the idea of a director's automatic criminal culpability while
the company could be litigant. As a result, the petitioner was cleared of all charges beneath
the IPC. However, the court mentioned that the petitioner's duty below section 67 of the
IT Act acknowledges the deemed crook guilt of the directors notwithstanding that the
company is not named as a defendant in a case. As a result, the petitioner's prosecution
below section 67 examines phase 85 of the IT Act is upheld.

2. Nasscom v. Ajay Sood and Ors. [119 (2005) DLT 596]

The case involved cheating with the aid of personation while utilizing a computer resource,
as defined using phase 66D of the records technology Act of 2000. The section reads that
whoever cheats using personating using any communication tool or pc resource shall be
penalised by imprisonment of both descriptions for a period of up to 3 years and a
satisfactory up to at least one lakh rupees.

In this example, the petitioner sought a permanent order against the defendant,
prohibiting him from sending "fraudulent Emails" using the petitioner's trademark
"NASSCOM." The defendants have been accused of impersonating NASSCOM to gather
personal statistics from multiple addresses to conduct headhunting. Later, the parties
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reached an agreement, and a consent decree changed into signed. This is a huge decision
because the courtroom known internet "phishing" as an illegal act for which an "injunction"
can be imposed, and damages will be paid. According to the courtroom, phishing is a form
of internet fraud wherein a person impersonates a real party (along with a bank or an
insurance company) to get a person's facts. It additionally mentioned that there's no
specific legislation in India dealing with phishing.

Conclusion:

Various courts across the country have interpreted the IT Act 2000. The rules announced
with the aid of the authorities, further to the provisions of the IT Act, play an essential role
in governing the virtual realm. These regulations ought to hold to adapt to stay up with
the current innovations in statistics technology. Cyber laws are becoming more and more
relevant as technology advances at a unsafe pace.

3. Namesh wants to obtain the details of regulatory approvals and other

formulation details of a cosmetic product manufactured by an FMCG company in
India. These approvals and details were filed with the Indian government by the
FMCG Company at the time of the cosmetic product launch. The details provided
to the Indian government gave the FMCG Company a competitive position in the
market. Please advise Namesh on the requisition of the information from the
government:

a. Under which law can Namesh obtain the details and information of the
regulatory approval and formulation of the said cosmetic product? (5 Marks)

A3(a).

Citizens of India can get secure access to information which is under the control of public
authorities to promote transparency and accountability in the working of every public
authority. But, to ascertain a realistic framework for guaranteeing records security and
openness, the Indian Parliament mounted the proper information Act, 2005, that gave
Indian residents a powerful weapon to obtain information from the government often. The
Right to Information Act of 2005 is a comprehensive law that encompasses nearly all
components of the presidency. It has the broadest possible application, as it applies to all
stages of the presidency.
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Concept and application

Statistics, files, notes, emails, opinions, suggestions, and records material maintained in
any electronic shape are all considered information under the said act. It additionally
encompasses facts about any private corporate obtained through the government under
any law presently in effect.

The method for obtaining information consists of four key steps:

Application: The request for factual information should be made in writing or via the
digital method in English, Hindi, or the area's authentic language. There is no particular
format prescribed for such request. The statistics sought should be honestly cited within
the request. The cause for the request for facts should no longer be said while using. The
prescribed charge for receiving the facts must be paid.

Time limit: The subsequent is the time restriction for acquiring statistics:

• The information must be furnished within 30 days. The data concerns someone's
lifestyle or liberty and should be added within 48 hours.
• If the cloth is to be supplied via the Assistant Public records Officer, an extra five
days should be allowed.
• If a third party's hobby is concerned, an additional ten days must be provided for
40 days.
• If the subsequent deadlines are not met, the public records officer must provide
the material free of charge.

Fees: The following is a list of the many expenses that can be charged:

The application rate must be affordable and mentioned in a notification issued on occasion.
If the public information Officer do not offer statistics during the particular time, they shall
be supplied for free. People on the verge of becoming impoverished should not be charged.

Reasons for refusal to provide information: The following are the reasons for
rejection:

If a non-disclosure exemption protects the facts under Section 8. If the information

infringes on someone's copyright, who isn't the country as per Section 9.

Conclusion:

Therefore, Naresh can obtain the info and information on the regulatory approval and
formulation of the said beauty product underneath the Right to Information Act 2005.
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b. Can Namesh’s request be declined? If yes, please give reasons? (5 Marks)

A3(b).

The RTI Act of 2005 is a comprehensive law that protects the fundamental rights of
freedom of expression and speech; it is an implied fundamental right. It additionally
encompasses practically all components of government and facts about any non-public
body acquired via the authorities beneath any regulation now in impact. Disclosure of
information in India had traditionally been restricted under Official Secrets Act 1923 and
various other special laws, which has been now overridden by the RTI Act, but is
counteracted by Whistle Blowers Protection Act of 2011.

Concept and application

Facts, documents, notes, emails, critiques, pointers, and data cloth maintained in any
digital form are all considered statistics under the said act.

Grounds for exemption

The RTI Act exempts the following types of information from being made available to the
public:

• Information that could jeopardize India's sovereignty and integrity, the country's
security, strategic, medical, or financial interests, relations with foreign countries,
or reason for the occurring of an offense;
• Disclosure of information that would cause breach of privilege of Parliament or
State legislature.
• Facts that have been sincerely dictated not to be published by way of any courtroom
of law or tribunal or whose disclosure should represent contempt of court docket;
• Records that could jeopardize the country's protection, strategic, scientific, or
economic interests, or purpose the take the place of an offense;
• Statistics which include business confidence, trade secrets, or intellectual property
that might jeopardize a 3rd party's competitive position except where the
applicable authority determines that the revelation of such records is in the public
interest;
• Except the relevant authority is happy that the broader public interest requires the
revelation of such information, facts available to a person in his fiduciary function;
• Statistics from foreign authorities obtained in confidence;
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• Information that could jeopardize a person's life or physical safety or reveal the
source of confidential statistics or assistance provided for law enforcement or safety
purposes;
• Statistics that might impede the research, apprehension, or prosecution of
criminals; cabinet papers, including facts of Council of Ministers, Secretaries, and
other officers' debates;
• Information referring to non-public records whose publication is unrelated to any
public activity or interest or could bring about an unjustified invasion of the
individual's privacy;
• A public body may also offer access to fabric despite any of the exclusions above if
the public interest in revelation is far extra than the damage to included interests.

Conclusion:

Namesh’s request can be declined, citing that the statistics asked for offers a competitive
role to the corporation and falls under the legislation of industrial confidence.