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Eastern University

Business Law (BUS 301)

Final Assignment

Prepared For
Ms. Farhana Khan
Associate Professor
Eastern University

Prepared By
MD. Mahtabul Islam
ID: 192200011
Program: BBA
Answer to the question no. 1

Capacity of parties is one of the five elements required of


all legally enforceable contracts alongside:

1. Agreement.
2. Genuine intentions.
3. Consideration.
4. Legality of object.
Without all five elements being present in a contract, it
may not be legally enforceable and could be considered
null and void if challenged in court. F
Capacity of parties refers to each party who is entering a
contract. Each is required by law to have the mental and
mental capacity to get it the terms of the contract and to
form the choice to enter it. Subsequently, individuals such
as minors, those of decreased mental sharpness, and
individuals beneath the impact of drugs or liquor would
not legitimately meet the capacity required to enter into
an protections contract. From section 11 it follows that a
person is incapable of entering into contract under the
following circumstances:
i. If he has not attained the age of majority according to
the law which he is subject.
ii. If he is not of sound mind (i.e. if he is a lunatic or an
idiot or suffering from a similar disability); and
iii. If he is disqualified from contracting by any law to
which he is subject.

Cases of incapacity are discussed below-

Minority

According to the Indian Majority Act, 1875, the age


of majority is defined as 18 years. For the purpose of
entering into a contract, even a day less than this age
disqualifies the person from being a party to the
contract. Any person, domiciled, who has not
attained the age of 18 years is termed as a minor.
Example, Peter is 17 years and 6 months old. He
needs some money to go on vacation with his friends.
He approached a moneylender and borrows Rs
25,000. As security, he signs some papers
mortgaging his laptop and motorcycle. Six months
later, when he attains the age of majority, he files a
suit declaring that the mortgage executed by him
when he was a minor is void and should be cancelled.
The Court agrees and relieves Peter of all liability to
repay the loan.
So, a person becomes major after completing his 18th
years of life. To this rule there are two exceptions.
They are-
i. When a guardian of the minor’s person or property is
appointed by a court of law and
ii. When a minor’s property is taken over by the Court
of Wards.

Rules relating to Agreement with Minor Parties


Although, as a general rule, a contract with minors is
void, we must keep in mind the following rules as well:

1) A contract with a minor is void and, hence, no


obligations can ever arise on him thereunder.

2) The minor party cannot ratify the contract upon


attaining majority unless a law specifically allows this.

3) No court can allow specific performance of a contract


with minors because it is void altogether.
4) The Partnership Act also prohibits minors from
becoming partners in a firm. They can, however, receive
the benefits of partnership and ratify the same upon
attaining majority.

5) The rule of estoppel under evidence law does not apply


to minors under contractual obligations. In other words,
even if a minor form a contract claiming majority age,
legal obligations cannot arise against him.

6) Parents or guardians of minors can name them in


contracts only if it benefits them. But even in this case,
the minor cannot be personally liable.

PERSONS OF UNSOUND MIND

According to Section 11 of the Indian Contract Act 1872,


Persons of unsound mind are not competent to Contract.
It is said in Section 12 of the Indian Contract Act 1872, "a
person is said to be of sound mind for the propose of
making a contract, if, at the time when he makes it, he is
capable of understanding it and of forming a rational
judgment as to its effect upon his interest.
Unsoundness of mind is another circumstance which
renders a contract void. To constitute a valid and binding
contract, a party contracting is provided for in section 12
of the Indian Contract Act a person is said to be of sound
mind for the purpose of making a contract if at the time of
making it, he is capable of understanding it and of
forming a rational judgment as to its effect upon his
interests.

Idiocy
The term idiot is applied to a person whose mental power
is completely absent. Idiocy is the congenital defect
caused by lack of development of the brain.

Lunacy or insanity
This is the disease of the brain. A lunatic is one whose
mental powers are deranged so that he cannot form a
rational judgement on any subject. Lunacy can be cured
Sometimes but idiocy is incurable.
Drunkenness
Drunkenness produces temporary incapacity. The mental
faculties are clouded for a time, so that no rational
judgement can be formed.
Disqualified persons

Aliens
An alien means a citizen a foreign state. Contracts with
aliens are valid. An alien living in India is free to enter
into contracts with citizen of India. But the state may
impose restrictions. Certain types of transactions with
aliens may be prohibited.

Foreign Sovereign
Foreign sovereigns or government can not be used unless
they voluntarily submit to the jurisdiction of the local
court.
Foreign sovereigns and government can enter into
contracts though agents residing in India. In such cases
the agents become personally responsible for the
performance of the contracts.

Women
In India there's no contrast between men and women as
respects legally binding capacity, An woman (hitched or
single) can enter into contracts and bargain with her
properties in any like she likes provided she could be a
major and does not endure from any inability like insanity
or ineptitude.
Answer to the question no. 2

Free consent: There need to be two parties to a contract,


who eagerly and intentionally enter into an agreement.
But how does the law determine in case the parties are
both these things? This is often where the concept of free
assent comes in. Let us learn more around free assent and
the components vitiating free assent.
In the Indian Contract Act, the definition of Consent is
given in Section 13, which states that “it is when two or
more persons agree upon the same thing and in the same
sense”. So, the two people must agree to something in the
same sense as well. Let’s say for example A agrees to sell
his car to B. A owns three cars and wants to sell the
Maruti. B thinks he is buying his Honda. Here A and B
have not agreed upon the same thing in the same sense.
Hence there is no consent and subsequently no contract.
Now Free Consent has been defined in Section 14 of the
Act. The section says that consent is considered free
consent when it is not caused or affected by the following,

1. Coercion
2. Undue Influence
3. Fraud
4. Misrepresentation
5. Mistake

Elements Vitiating Free Consent

Let us take a look at these elements individually that


impair the free consent of either party.

1] Coercion (Section 15)


Coercion means using force to compel a person to enter
into a contract. So, force or threats are used to obtain the
consent of the party under coercion, i.e it is not free
consent. Section 15 of the Act describes coercion as
committing or threatening to commit any act forbidden by
the law in the IPC unlawfully detaining or threatening to
detain any property with the intention of causing any
person to enter into a contract.
For example, A threatens to hurt B if he does not sell his
house to A for 5 lakh rupees. Here even if B sells the
house to A, it will not be a valid contract since B’s
consent was obtained by coercion.

Now the effect of coercion is that it makes the contract


voidable. This means the contract is voidable at the option
of the party whose consent was not free. So, the
aggravated party will decide whether to perform the
contract or to void the contract. So, in the above example,
if B still wishes, the contract can go ahead.

Also, if any monies have been paid or goods delivered


under coercion must be repaid or returned once the
contract is void. And the burden of proof proving
coercion will be on the party who wants to avoid the
contract. So, the aggravated party will have to prove the
coercion, i.e. prove that his consent was not freely given.
Who Performs the Contract?

2] Undue Influence (Section 16)


Section 16 of the Act contains the definition of undue
influence. It states that when the relations between the
two parties are such that one party is in a position to
dominate the other party, and uses such influence to
obtain an unfair advantage of the other party it will be
undue influence.

The section also further describes how the person can


abuse his authority in the following two ways,

When a person holds real or even apparent authority over


the other person. Or if he is in a fiduciary relationship
with the other person.
He makes a contract with a person whose mental capacity
is affected by age, illness or distress. The unsoundness of
mind can be temporary or permanent.
Say for example A sold his gold watch for only Rs 500/-
to his teacher B after his teacher promised him good
grades. Here the consent of A (adult) is not freely given,
he was under the influence of his teacher.
Now undue influence to be evident the dominant party
must have the objective to take advantage of the other
party. If influence is wielded to benefit the other party it
will not be undue influence. But if consent is not free due
to undue influence, the contract becomes voidable at the
option of the aggravated party. And the burden of proof
will be on the dominant party to prove the absence of
influence.

Legality of Object and Consideration

3] Fraud (Section 17): Fraud means deceit by one of the


parties, i.e. when one of the parties deliberately makes
false statements. So, the misrepresentation is done with
full knowledge that it is not true, or recklessly without
checking for the trueness, this is said to be fraudulent. It
absolutely impairs free consent.
So according to Section 17, a fraud is when a party
convinces another to enter into an agreement by making
statements that are suggesting a fact that is not true, and
he does not believe it to be true. The active concealment
of facts a promise made without any intention of
performing it any other such act fitted to deceive.
Let us take a look at an example. A bought a horse from
B. B claims the horse can be used on the farm. Turns out
the horse is lame and A cannot use him on his farm. Here
B knowingly deceived A and this will amount to fraud.

One factor to consider is that the aggravated party should


suffer from some actual loss due to the fraud. There is no
fraud without damages. Also, the false statement must be
a fact, not an opinion. In the above example if B had said
his horse is better than C’s this would be an opinion, not a
fact. And it would not amount to fraud.

Performance of Reciprocal Promise

4] Misrepresentation (Section 18): Misrepresentation is


also when a party makes a representation that is false,
inaccurate, incorrect, etc. The difference here is the
misrepresentation is innocent, i.e. not intentional. The
party making the statement believes it to be true.
Misrepresentation can be of three types.

A person makes a positive assertion believing it to be


true. Any breach of duty gives the person committing it
an advantage by misleading another. But the breach of
duty is without any intent to deceive when one party
causes the other party to make a mistake as to the subject
matter of the contract. But this is done innocently and not
intentionally.

Answer to the question no 4

Termination of Contract.

To terminate a contract at common law, there must have


been a breach of an essential term, a sufficiently serious
breach of a non-essential term or a repudiation of the
contract by the other party. Terminations one of the most
dreaded words, be it in context of any aspect of our life. It
is almost rare that Termination does not leave behind scar.
In Construction Law, particularly the process of
termination requires to be handled delicately and its
consequences need be understood clearly. It is double
edged sword and the user also gets hurt to some extent.
Termination of ‘Offer’
‘Offer’ by itself is not Contract unless it is unilateral
contract. Once ‘Offer’ is accepted it cannot be
‘Terminated’, except by process of Law and ‘Terms of
Contract’. ‘Absolute acceptance’ ‘transforms ‘Offer’ into
‘Contract’. Though ‘Offer’ is revocable anytime before
‘Acceptance’, it is not so in case of ‘Option Contract’. In
‘Option Contract’, offer is required to be kept valid for
agreed time failing which Earnest Money Bond/ Deposit
could be forfeited. Thus, even before ‘termination of
contract’, you run the risk of losing money as
consequence of termination of offer. ‘Offer ‘dies on its
rejection or expiry of its validity period or by ‘Counter
Offer’. If no time of validity of Offer is stipulated, Courts
may decide by appreciating surrounding facts as to what
should be Reasonable Time for considering the Offer as
valid. Change in law subsequently, if distorts the ‘bid
parameter’ it results in contract becoming unenforceable.
‘Offer’ gets ‘Terminated’ on death of offeror or
frustration of subject matter. Once ‘Offer’ gets
transformed into ‘Contract’, the contract dictates process
of termination –i.e. as per provisions in the contract.
Contract usually contains fairly well drafted mechanism
of termination listing, notice of intentions to terminate as
an important and mandatory provision. It may list events
of conditions precedent to termination. The law also
provides automatic termination on the other party
repudiating the contract, abandoning the performance.

Ways of termination of Contract


There are five ways in which Contract gets terminated.
1. Impossibility of Performance (Frustration)
2. Breach of condition of Contract
3. Foreclosure by agreement
4. Rescission
5. Completion of Contract

Interest in Contract
All contracts are entered into to have three principle
interests.
1. Interest of Expectation of profit
2. Interest of Reliance
3. Interest of Restitution
1. While entering into a contract, a party has interest to
expect reasonable gain. Employer gets the project
envisaged and contract expects profit. If contractor
abandons the project/job, Employer earns right to get
executed at the Risk and Cost of the contractor.
2. As per trade practice, Contractor reasonably expects
10% to 15% of cost of work as legitimated profit. In event
of unlawful Termination, the contractor expects and is
compensated 10% to 15% of profit out of balance work;
he is deprived off [AIR 1984 SC 1703, A.T. Brij Paul
Singh vs. Vs. State of Gujarat.]
3. Placing reliance on promise made by Employer,
Contractor on getting contract starts investing on
following heads and therefore, the losses for the
Contractor include-

 Mobilization of Resources
 Providing of necessary infrastructure and enabling
works
 Finance Arrangements Contracts with vendors / Sub
Contractors
 Types of Termination
The termination of contract, unless frustrated is of two
types:
1. Termination for convenience: is also known as ‘no
default termination’. It allows a party at anytime for its
convenience to terminate contract by a notice with or
without indication of a particular clause in the contract.
The Contractor will have right to receive cost incurred up
to termination and recover damage resulting from such
termination. There is a growing trend of Termination for
Convenience by Employer. If this is envisaged, fair
compensation need be paid. Modern, construction
contracts provide for clause for ‘Termination’. The cause
of failures due to Employer as enumerated in contract
may be
•Failure to provide adequate work fronts
•Failure to issue Drawings, Instructions, and Materials
promised in timely manner
•Failure to make timely payments
•Failure to correct situation of suspension of work within
Reasonable period (say three months)
•Failure to provide reasonable facilities to perform
contractual obligations.
In case of frustration or for whatever reason, parties may
desire to foreclose or annul a contract, they may do so on
terms they may agree upon. A Contract perfectly legal
and valid may become unenforceable due to change in
law or public policy.
2. Termination for default -In performance of the contract,
either of party finds that the other party is not
reciprocating its obligations or unilaterally is in default of
its own obligations, in such event the party perceiving
fault of the other may terminate the contract serving the
notice to suspend all further performance and come
forward for final settlement, either on amicable terms or
may lead to disputes to be adjudicated as per contract /
law. The alternative in such case may be to extend time
for performance either with or without intention to
recover pre-decided damages. Before the termination of
default is decided, it is important to consider following
facts:
•The terms of contract as provided in termination clause
•The circumstances leading to shortfall / backlog of
performance
•Defaulters explanation for the defaults
•Weight age of timely performance
•Consequences of such termination
This is the most common form of Termination. One of the
parties makes it impossible for the other to discharge its
obligation by unilaterally committing those actions of
breach of conditions which make performance
impossible. Law stipulates principles on which
compensation is payable. Till early 18thCentury, there
were awards of compensation based on individual
perceptions of hardships to which aggrieved party was
put. However, beginning with Hadley v/s Baxendale,
there has been almost certainty on principle of
compensation.

Termination Notice
Wherever Notice of Termination is required to be served
as per contract, it is mandatory to serve the notice to the
authorized agency, providing for a Cure Period to
improve the performance, failing which there could be an
automatic termination. The notice must include briefly
narrated events of defaults which has prompted the issue
of termination notice. In Construction contracts, one or
the other parties may more often lose patience with Time
and / or Money being invested. If ‘Time’ is the cause,
most often Employer desires to replace agency expecting
acceleration in performance and opts for Termination of
contract. In such a case Employer’s can terminate because
of fault of Contractor on various grounds.
Grounds for termination
From purely whimsical act -to termination without any
legal ground-to circumstances of duress, there are number
of grounds for termination and they could be many not
limited to following only.
•Defaults in Contracts
•Lack Resources to cope up with agreed program
•Object of Contract is lost
•No skill to perform work to required workmanship and
specification
•Lack of willingness to abide by instructions of Engineer-
in-charge / Employer
•Inability to make up loss of time
•No will and Resource to amend Breach of terms of
contract
•Breach of terms of contract –Time at large

Termination Clause
All works contract contains ‘Termination Clause’
providing circumstances or events which may trigger the
clause leading to Termination. Terminating strictly in
compliance of conditions enumerated is called Legitimate
Termination or Contemplated Termination. Such
Termination being provided for the consequence or relief
is as per provision and nothing more. The termination
clause unless un-conscionable authenticates relief or
compensation. Termination without justified ground is
‘illegal Termination’ or ‘Termination Bad in Law’.

Termination bad in law


Any termination of contract violating the terms of
contract, or against the provision of substantive law or
public policy could be considered as ‘termination bad in
law.’ This shall deprive the terminating agency any
protection or privilege arising out of law and should be
faithfully avoided.

Consequences of illegal Termination


As and when a party illegally terminates a contract, the
aggrieved party is entitled to compensation under section
73 of Indian Contract Act. In construction, damage
naturally arising out of Breach (illegal Termination) is as
below.
For Contractor
a. Profit on balance work due to harm to interest of
expectation.
b. Untimely demobilization of Resources.
c. Partial utilization of infrastructure created.
d. Consequences of failure of vendor’s contract.
e. Loss due to distress sale of balance of material at site
f. Compensatory Retrenchment cost for Resources hired
and employed to complete the works.
On Contract failing to take off or at any stage of illegal
termination of performances, Employer needs to
compensate Contractor for reliance so placed and
investment made there on.

For the Employer include,


• Extra cost of getting balance work executed
• Damage due to delay in having return on investment
• Extra Overheads for getting balance work done
• Cost of shifting “Defect Liability” to substituted
Agency.
• Compensation for getting Performance Bond released
• Extra cost for unobstructed site as result of unpaid
laborers is sub-contractors not being paid.
• Cost of updating final unfinished work measured and
accounted for.
In short, while final account is being settled as
consequence of just and legal Termination, Employer
need be placed back in position, had the contract not
being terminated. It should be remembered that to recover
claims it requires acceptable evidence of loss incurred or
most likely to have been incurred. Parties need be posted
with contemporaneous record of expenses so far possible
and should afford to the other party opportunity, for
verification of cost incurred and being incurred. All
expenses and costs incurred to protect interest and to
perform obligations need be restituted /reimbursed on
contract being terminated.

Rescission of Contract
The Concept is clearly mixed up with Termination as is
the work “Term: is not distinguished from “Condition”.
While one terminates a Contract for a cause, Convenience
or default or forecloses by agreement or abandons as one
cannot manage performance or suffers frustration due to
impracticability of a contract to perform, one may opt to
rescind which is found void ab-initio but may discover at
point during or before performance. Here Rescission is to
nullify a Contract, relieving parties to return to a position
ante the contract. In fact voidable contracts could be
performed or be rescinded. It is a slip to put an end to
further performance. An accurate legal perception of “ab
initio voidable” is actually a “void” contract. A void
contract is illegal from beginning while a contract capable
of being avoided may be contaminated by fraud, coercion,
misrepresentation or mistake. The voidable contract is
amenable to rescission. On Rescission, parties are
relieved of further performance, parties do not liquidate
their rights accrued in course of performance till the point
of opting to rescind the contract. In fact none of the
parties keep an unearned advantage. However,
circumstances leading to rescission are consciously
ignored by Parties to continue performance, it acts as
waiver and the voidability is given up.

Repudiation of a Contract
Repudiation of a Contract is an act of indicating
categorically that the obligations of the contract will not
be performed by the party repudiating the contract.
Anticipatory repudiation is similar to anticipatory breach
of contract as both occur before the time of performance
arises. It is debatable whether action can be brought for
repudiation unless the time for performance has arrived.

Frustration of Contract

With all will and effort to discharge obligations, parties


may get incapacitate by flux of compelling events or
operation of law to perform contract. This is not the same
as void contract or impossible contract or contingent
contract. Due to change of circumstances, the substance
and essence of contract becomes unachievable. It need be
appreciated that innocent misrepresentation or mistake
need be distinguished from frustrating force. If the
circumstances which could be existing at the time one
enters the contract and has no knowledge, the contract
suffers from mistake, it becomes voidable. If new set of
circumstances do come up subsequently, it is a case of
frustration. If and when a contract gets frustrated, the
recovery of work done is on basis of quoted rates and
extras / additional on basis of quantum merit as no term of
contract survives frustration except mutual agreement at
settlement, if any.
Risk & Cost Recovery Valid on termination
For successful claim for `Risk’ and ‘Cost’, following case
need be taken by Employer.
•Termination must be legal for default of Contractor and
with due “Notice” to party named in Contract
•The Notice must mention briefly the faults and evidence
to neglect to correct the faults / defects / deficiency on
part of contractor.
•Notice may mention clause under which Termination is
intended to be affected and number of days given to
Contractor to cure the default.
•Intention to debit extra cost for getting performance may
be expressed in Notice.
•Legal controversy is avoided by using the phrase
“Withdrawal of work” rather than “Termination” as some
jurisdiction does not allow clauses of contract to be
operated on Termination.
•The Contractor must be invited / permitted to create
record of the status of works at the time of taking over on
withdrawal.
•Joint measurements of works need be taken
•Alternately, if Contractor does not co-operate, third party
presence is preferred or else Contractor need be posted
status of work done and a notice period to verify
Employer’s statement, if unilaterally taken. In short,
maintaining the Evidence of work done helps to avoid
legal complication.
•It is advised to main video graphic record of work done
holding tapes at some vital locations.
•Evidence of date of videos is appreciated if combined
work including day’s News paper headlines.
•The Record of minutes be bound and concluded by
affidavit or signature of persons concerned.
•Copy of such statement of minutes, inventory of
material, plant equipment need be posted to Contractor
and persons concerned.
•To avoid job of record of inventories adequate Notice
asking Contractor to remove his material and resources
need be given, unless confiscation clause is intended to be
operated or ‘Advance’ payment if given is outstanding.
•Caution, Employer should carefully consider
consequences of confiscation / Forfeiture in case of Bank
Bonds, Materials, tools, plant.
•Finally record of infrastructure / enabling works need be
maintained for settlement of dispute of claims resulting
from withdrawal of work.

Care to be taken for Termination.


In case, it is intention of Contractor to stop and terminate
Performance or abandon the job, following need be
complied.
•Notice of intention must mention period of correction,
reference to clause / circumstances need be given to
Employer or party named.
•Final Bill is prepared based on final measurements of
work done as per contract works, varied / altered and
extra indicating approved / disputed rate / intention to
charge. Rate in dispute / or intention to charge need be
accompanied by appropriate Rate analysis.
•Record of inventory of Tools, Plants, Materials,
Equipments, need be furnished to Employer and copies of
`Gate-passes’ are supplied.
•Alternately, clear record of un-uselessness of Employer
to permit need be maintained.
•In all events, Employer need be posted with records of
unused materials. Tools, plants, infrastructure created.
In short, Employer and Contractors who may take
initiative to end contractual relations need to demonstrate
correct procedure and produce evidence of fairness.

Conclusion
In all cases, ‘Termination’ should be the last option for
Employer and Contractor. Experience has shown that
party which terminated contract as soft solution to
contract administration has not favored a repeat
experiment of Termination. Admittedly even at high price
termination is the last and only resort.

Answer to the question no. 5

Consumer rights in Bangladesh

Consumer is the king of market. Though Bangladesh is


small country she contains a large number of consumers.
But it’s the matter of sorrow that everyday every sector
consumer right is violated. We have law but there is no
strong enforcement. The education of consumer and skills
of sellers affects to get the rights of consumer. A lot of
organization works here for monitoring human rights
situations but none are eager for protecting consumer
rights and that’s why consumer rights situation is not paid
enough importance here. For this reason, first of all the
government should take proper step to improve the
condition of consumer rights.
Consumer is a person who purchases goods and services
for individual use.
“Consumer” means any individual who in relation to a
commercial practice is acting for purposes which are
outside his business.8
Section 2(19) of the Consumer Rights Protection Act
2009 in Bangladesh has define consumer.
The rights are mentioning bellow:
1) Right to life
(2) Right to be informed
(3) Right to choose
(4) Right to be heard

UNGCP extend this into 8 rights and consumers


international adopt these -
(5) Right to satisfaction on basic of needs
(6) Right to redress
(7) Right to education
(8) Right to a healthy environment
Together these eight rights form the basis for current
consumers’ movement worldwide.”
In Bangladesh around 61 laws are prevailing on consumer
rights.
According to Section 2 (20) of the Consumer Rights
Protection Act, 2009 states that “Acts against consumer
rights”
There are three aspects of consumer rights protection,
which must consider by every country –
First, the aspect of ‘voluntary protection’
This means that consumers will set up a society or
organization to voluntarily defend their own rights and
interests. These organizations generally work on this
issue. Consumers Association of Bangladesh (CAB) was
established in Bangladesh in 1972.9

Second, the aspect of ‘Institutional Protection’


This aspect can be ensured by protecting consumers by
setting up national institutions for the protection and
development of citizens.
For example, the director general of the State of the
United Kingdom establishes; The Federal Trade
Commission in 1914, the Food and Drug Administration
in 1927 and the National High Traffic Administration in
the United States in the year 1970; National Consumer
Protection Council of India, various State Consumer
Protection Councils, National Commissioners have
established the controversial commission with the State
Commission and District Forum;
Sweden Consumer Agency Keviv and Consumer
Ombudsman; Pakistan has formed the Consumer
Protection Council of Islamabad.10

Third, aspect of ‘Statutory Protection’


Ensuring relevant laws to protect consumers' rights and
interests, this can be ensured. Many countries in the world
have comprehensive legislation on this matter.
For example, the Consumer Protection Act 1986 in Japan,
Consumer Protection Fundamental Law in Japan, 1968,
Thailand and Sri Lanka both Consumer Protection Act,
1979, Philippine Consumer Protection Act 1990,
Indonesia Consumer Protection Act in 1999, Islamabad
Consumer Protection Act, Nepal Consumer The
Protection Act of 1998 and the 1999 Consumer Protection
Act in Malaysia It was said.
 Defect of Act
1. In Bangladesh there is no mechanism through which
the provision of the laws, made to safeguard the rights
and interest of the consumers, can be placed and
explained to them in a simple and impressive manner.
2. The government machineries from implementing point
of view are very weak.
3. There is no political commitment and program as
regards the protection of the consumers.

4. The provision of penalty under the current law is so


negligible.

5. Nobody cares to abide laws.

6. No person file suit directly under this law.

7. Finally, the laws are not effectively enforced.


 Findings problems
1. Lack of Legal Knowledge
2. Lack of Monitoring Systems
3. Legal flaws
4. Procedural Complexity
5. Proper education and information
6. High Price
7. Using formalin on food product
8. Artificial apparel color on food
9. Expired product sell
10. Lack of camping

 Procedure for filing complaints


According to Article 76 (1) of the Consumer Rights
Protection Act, 2009,26 Any person, who is, generally, be
a consumer or likely be consumer, under the Ordinance,
may file, the written complaint, informing the Director
General of the anti-consumer rights act or the person in
charge of this direction.
 How to file a complaint

1. The complaint must be filed in written.
2. through fax, email, website, etc.
3. Any other legal way
4. The receipt of the purchase of goods or services should
be attached with the complaint.
5. The complainant must mention his full name, father
and mother's name, address, phone, fax and e-mail
number (if any) and occupation.

 Vokta Odhikar Songrokhon Odhidoptor


It was established in 24 June 2009. After passing
Consumer Rights Protection Act, 2009. Its Head office
located in Dhaka.
Aim
To protect consumers rights under Consumer rights
protection Act, 2009. People can submit their complaint
on its office. The officers will take action against the
respondent party on behalf of complaint.

 Mobile Court
Under section 352 of code of criminal procedure, 1898
the criminal court shall be deemed to be an open court for
the purpose of inquiring into or trying any criminal
matter. Bangladesh pure Food Ordinance provides for the
establishment of Mobile Court.
Under mobile court he/ she may be punished with- 3 years
of imprisonment or fine not exceeding taka 3 lacs.

 CAB
The full form of CAB is Consumer’s Association of
Bangladesh. It established in 28 February 1978. It is the
1st non-governmental voluntary organization to
protection of consumer rights. After 5 years CAB got
government recognition in 1983.
Mission
Its mission is to empower consumers with the knowledge
and skills for the effective protection of their rights and
interests.27
How CAB helps consumer
1. CAB has its own complaint cell. An aggrieved
consumer, whose right has been violated, may submit a
complaint via post, email or in person. After receiving the
complaint, CAB investigates the matter and provides
redress in the form of settlement through negotiation and
mediations between the parties. Legal assistance is
sometimes provided to the aggrieved consumers.
2. CAB monitors prices of essential goods in the market
on regular basis and publishes the price list through media
for convenience and knowledge of the consumers.

 Recommendation
My recommendation mentioning below:
1. The government should provide strong, continuous
leadership to develop a board national consensus on
improving the quality of consumer rights.
2. National aims for improvement of consumer rights
should be established, accompanied by appropriate,
specific objectives for improvement.
3. An annual award for excellence in trade quality should
be established.
4. Communication quality needs to develop to meet the
needs of consumers.
5. Planning of a consumer education programmed.
6. Protection against improper marketing measures and
inadequate information.
7. Establishing a legal framework for the achievement
fair, accessible, efficient, sustainable benefit for
consumers generally.
8. Consumer should know the law and proper apply.
9. Developing education system.
10. Law should be strong and strict.
11. Need more voluntary organization.
 Conclusion
In conclusion, we are in opinion that, the consumers of
Bangladesh are mostly honest & simple and they critically
need a broad of consumer protection legislation. We need
to remember that efficient consumer protection legislation
protects and promotes the happiness of consumers. It also
enhances socio-economic targets of its macro economy.
Modernized consumer rights protection law and proper
execution of such law only the way to uphold the dignity
and safety of Bangladeshi consumers.

THE END

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