A

Report
On
“A Study on Practical Task for the Sugar Cosmetics”
(In partial fulfilment of Business Law Subject under MBA program of GLS
University)
Subject: Business Law
Submission Date: 20th February, 2023
Submitted to: Dr. Isha Dave
Submitted by:
Simran Gopwani - 202100620010016
Priyal Kotecha – 202100620010027
Lavina Manwani - 202100620010029
Shivani Shishangiya - 202100620010063
Mansi Vyas - 202100620010070
Shristi Bothra – 202100620010118
Ruchi Kariya - 202100620010159
Foram Modi – 202100620010343

HR Semester IV
Faculty of Management
GLS University

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 PREFACE

As a part of the MBA and in order to gain practical knowledge the field of
Business Law, we are required to make a report on “A Study on Practical Task
for the Sugar Cosmetics” The basic objective behind doing this project is to get
knowledge. Doing this project report helped us to enhance our knowledge
regarding all the Practical Task for the Sugar Cosmetics.

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 AKNOWLEDGEMENT

We would like to express our special thanks of gratitude to the institution and
our professor Dr. Isha Dave and our Director Dr. Hitesh Ruparel who gave us
the golden opportunity to do this wonderful project in the subject of So, which
also helped us in doing a lot of Research and we came to know about so many
new things we are really thankful to them.

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 TABLE OF CONTENT

Title of the Report

I Preface

II Acknowledgement

III Table of Content

CHAPTER1 About the Company.

CHAPTER2 Practical transactions of your companies’ transactions

that explain the Essential Elements of Contract

CHAPTER3 Offer Letter

CHAPTER4 Digital Signature Used In Sugar Cosmetics

CHAPTER 5 IPR Registered

CHAPTER 6 Consumer Complaints And Its Resolution

CHAPTER 7 Warranties And Guaranties Offered By Sugar Cosmetics

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 Chapter 1: About the Company

Established in 2015, Sugar

Cosmetics came up with just two
products, namely, a black matte
eyeliner and a black kohl pencil.
Since then, the company has
grown to 450 Warehouses.

The company began as an online

supplier of natural, paraben-free
cosmetics and has since grown in
popularity not just in India but
throughout the world. Due to the
usage of the black and white color
combination, the visual identity of
an Indian cosmetic business is beautiful and refined while also seeming bold and confident.
The company's logo is made up of a wordmark with an emblem on the left, which serves as the
brand's signifier and appears on all of the company's cosmetics.

Sugar Cosmetics' mission

statement says, "We believe in
every interpretation of beauty.
Bold to subdued, quirky to crazy,
every day to glam goddess! We
aim to celebrate every aspect of
you, no matter what your style is.
So, go ahead and pick your
faves."

Sugar Cosmetics' slogan says,

“Rule The World, One Look At A
Time!!!”

Sugar Cosmetics is one of India's

fastest-growing premium cosmetic

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companies, with a cult following among millennials. Thanks to its clutter-breaking attitude,
unique low-poly packaging, and chart-topping products, it has become the first choice of many
Indian women. The brand's bestselling goods in the Lips, Eyes, Face, Nails & Skin categories
are sent all over the world from state-of-the-art facilities in Germany, Italy, India, the United
States, and Korea.

The brand is devoted to producing products that are a great fit for every Indian skin tone
throughout seasons and across the calendar, with a cruelty-free line that is high on design and
high on performance. Sugar Cosmetics is aggressively expanding its strong existence with over
35,000 outlets across 550 cities. It is backed by the faith of marquee investors and the passion
of millions of beauty aficionados.

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 Chapter 2: Practical transactions of your companies’ transactions that
explain the Essential Elements of Contract
A contract is a legally binding agreement between two or more parties. Having a contract in
place is important because it sets out the terms of the agreement between the parties involved.
This clarity is essential in ensuring that all parties know what is expected of them and can help
to avoid any misunderstandings down the line.

The contract provides assurance that the parties will perform the roles and responsibilities as
intended, and provides some protection in the event that things do go wrong.

For a contract to be valid and recognized by the common law, it must include certain
elements— offer, acceptance, consideration, intention to create legal relations, authority
and capacity, and certainty. Without these elements, a contract is not legally binding and may
not be enforced by the courts.

However, it is important to note that not all legal contracts need to be in writing in order to be
valid. For example, an oral contract between two parties is still legally binding as long as all of
the required elements are present. Whether written contract or verbal contract, all bilateral
contracts must include the essential elements to be valid and enforceable by contract law. Keep
reading to learn more!

1. Offer:
For there to be a contract, there must first be an offer by one party and an acceptance by the
other. An offer is a key element because without it, there can be no contract. It is a promise by
one party to enter into a bargain contingent on the performance of another party. It involves
someone who desires certain goods, services, or other performance and someone who can fulfil
the responsibility of providing it.

The offer must be clear and definite, and it must be communicated to the other party. The
offeree must then accept the contract terms of the offer, which can be done explicitly or
implicitly. If the offeree accepts the offer, a binding contract exists, and that contract will be
enforced by common law.

An offer is a definite statement of the terms of an agreement that the offeror is willing to be
bound by. It must be unambiguous and made to create a legally binding contract. To illustrate,
an offer to sell a car for $500 is an offer that, if accepted, will create a binding contract.

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The offeror can make the offer to the offeree directly or indirectly. An offer made indirectly,
such as an advertisement, is known as an “invitation to treat.” This type of offer is not legally
binding because the advertisement is not a definite offer to sell the car for $500, but rather an
invitation for the offeree to make an offer.

For there to be a binding contract, the offeree must accept the offer. An invitation to treat, on
the other hand, is not an offer. It is simply an invitation to negotiate and is not legally binding.
An offer exists when it reaches the requesting party, and it can be revoked, altered, or
terminated before acceptance. For example, a for sale sign in a shop window advertising an
expensive watch for $1 does not become a binding contract if a customer walks into the store
and says, I accept the watch for $1.

Sugar Cosmetics makes an offer to the other party, which outlines the terms and conditions of
the agreement. For example, Sugar Cosmetics may offer to purchase a certain quantity of
products from a supplier or provide a certain service to a customer.

2. Acceptance:
Acceptance is the agreement to the specific conditions of an offer. It must be unequivocal and
must correspond with the contract terms of the offer, denoting that the offeree cannot change
the terms of the offer. The offeree can either accept the offer explicitly or implicitly.

Communication with the offeror should always be maintained, and it is important to know that
a counteroffer might be recognized as a termination of an offer, or in other words, if an offer
is modified, it is no longer the same offer. For example, if someone offers to sell you a car for
$500 and you counteroffer with $600, the original offer is no longer valid.

An acceptance can be expressed or implied. An express acceptance is an affirmative statement

by the offeree that they accept the terms of the offer. An implied acceptance is when the offeree
takes some action that indicates their acceptance of the offer.

Words or actions can be used to accept an offer. It can be done in different possible forms:
conditional acceptance (if the offeree accepts the offer subject to certain conditions, which must
be fulfilled before the bilateral contract is formed), acceptance by action (by performing the
actions specified in the offer), and option agreement (when the offeree pays for the offeror to
keep the offer open for a certain time).

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The other party accepts Sugar cosmetic’s offer, indicating their agreement to the terms and
conditions outlined in the contract. Acceptance can be indicated through a signature on a
physical document, an electronic signature, or other methods.

3. Consideration:
Consideration is what each party to the contract gives up, or promises to do, to form the
contract. It can be something of value, such as money, goods, services, or property. For
instance, consider an employment contract between an employer (promisor) and employee
(promisee). The employer offers the employee a job, and the employee accepts the offer. In
this case, the employer's consideration is the job (and paying the employee), and the employee's
consideration is their promise to work for the employer.

But it can also be something detrimental to the promisee, such as a forbearance from doing
something they have a right to do. For example, if someone stops you from smoking in your
own home, that is a consideration.

Consideration does not have to be a financial investment. In most cases, the courts will not
assess the adequacy of the consideration. The parties are free to enter into a bad bargain.
Classically, the courts have rules that a “mere peppercorn” can count as consideration. An
exception is sometimes made, however, in the case of employee non-compete agreements,
where the courts may consider the adequacy of the consideration.

In the case of Sugar Cosmetics, it involves the payment of money in exchange for goods or
services.

4. Intention to create legal relations:

To be legally binding, a contract must show an intention to create legal relations. This can be
shown by the use of formal language, such as “I agree to…” or “This contract is binding on the
parties.” However, intent need not be formalized. It can be inferred from the conduct of the
parties. The reason why intent is important is because it demonstrates the seriousness of the
parties’ intention to accept both the benefits and the obligations of the agreement.

If one side does not agree to every condition, there is no binding agreement, which is to say
that an agreement should be accepted as a whole, considering every specific term. To give an
example, if you sign a contract to buy a house and the seller does not agree to one of the terms,
there is no contract. The lack of this element might result in the contract being voided. A

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standard entire agreement clause states that a written contract contains the complete terms, and
any prior statements, written or oral, are superseded.

The contract must be legal and enforceable under the applicable laws and regulations. Sugar
Cosmetics ensures that the terms of the contract comply with all applicable laws and
regulations.

5. Authority and capacity

Contract law judges the circumstances for a party to contract. Each party to the contract must
have the legal capacity to enter into the mutual assent. This indicates that they must be of legal
age and have the mental capacity to understand the terms of the contract. If one party does not
have the capacity to enter into the contract, the legal document may be void.

A contract is only valid if all of these elements of a valid contract are present. If one element
is missing, the contract may be void or unenforceable.

Both parties must have the capacity to enter into a contract. For example, Sugar Cosmetics
ensures that the other party has the legal authority to enter into the agreement, such as being of
legal age or having the necessary corporate authority.

6. Certainty
To be enforceable, a contract must include certain terms, and the ability to fulfill the essential
terms of an agreement must be guaranteed. These terms must be clear and unambiguous.

There are two essential terms in any agreement: the first one is consideration or price to a
bargain (something of value given in exchange for something else of value), and price to be
paid for the promised obligation (the service to be delivered, the product to be sold, and so on).

If any of these terms are missing, the contract may be void. For example, if you agree to buy a
car for $500, but there is no mention of what kind of car it is, the contract is void because the
essential terms are missing. The same goes if you agree to sell your car for $500, but there is
no mention of what kind of car it is.

The courts may not enforce a contract if the terms are too vague or uncertain. To give you an
idea, if the contract is for the sale of goods, but the parties do not agree on what “goods” are,
then the contract is too uncertain to be enforced.

To sum up, it is important to know these seven elements of a contract because they determine
whether or not a contract is legally binding. If one or more of these elements is missing, then

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the contract may be void or unenforceable. This suggests that the parties to the contract will
not be held responsible for fulfilling their obligations under the agreement. Also, knowing the
seven elements of a contract can help you avoid entering into agreements that are not legally
binding.

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 Chapter 3: Offer Letter

Date : DD/MM/YY

Subject : Offer Letter

To

Mr./Mrs./Ms. [Name]

Congratulations,

We are pleased to offer you position of _______[Job title]_______ at Sugar Cosmetics, subject

to your acknowledgement and acceptance of the terms set forth below.

The details of your offer are;

1. Your place of reporting would be _____________

2. Your date of joining is _________

3. Your total Cost to Company would be __________. Details of the same are given in Annexure

4. Shift Timing – ____ Am to ____ Pm

5. Working Days - Monday to _________

You are also requested to bring photocopy of all the following documents at the time of joining.

• Educational Certificates (10th & 12th Mark sheet, Graduation Mark sheet, Post-Graduation

Mark sheet)

• Address Proof – Aadhar Card and Driving Licence

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• Photo ID Proof – PAN Card

• 3 Passport Size Photos

• Past Employment Documents (Appointment Letter, Relieving Letter, Past 3 months of Salary

slip) (If Applicable)

• The Company will provide you Appointment Letter at the time of joining.

• Your probation period will be of _____ Months and will be starting from your date of joining.

If you resign before completion of your probation period you would be liable to pay training

cost, as per Company policy. This training cost will be comprised of salary received during

your employment tenure and training expenses borne by the company.

• Based on your performance and as per the Company policy, your salary will be reviewed in

_________

• All compensation affiliated information pertaining to your employment with us is

confidential.

• Please note that the Company may carry out background check from your former employer.

The Company may also verify educational qualification details, etc. It is important to note

that failure to provide correct information or providing misrepresentation may affect in

termination of services.

• You are expected to perform your duties diligently and faithfully as per instructions provided

to you time to time by your manager.

• May we take this opportunity to welcome you to be part of our dynamic team and thank you

in anticipation of your loyal endeavour ahead.

Regards,

______________

HR Manager

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 ANNEXURE

Salary Head Per Month Per Year

Reimbursements

Basic XXXXX XXXXXX

HRA

Other

Special Pay

Bonus

Cost of company XXXXX XXXXXX

Deduction

Professional Tax XXX XXXX

Retention XXXX XXXXX

Sub total XXXXX XXXXXX

Net take home XXXXX XXXXXX

Note :

• The tax liability, if any, including income tax, arising on your compensation will be your

personal liability and will be governed by the tax laws of the country wherein your services

are provided. The Compensation mentioned in the breakup spread sheet is provided for

understanding only. The company reserves the right to deduct tax at source from any

component of your compensation and take such other actions as required by applicable law.

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 You are expected to declare and then submit proof of tax savings to ensure proper TDS is

deducted.

• Your remuneration is subject to statutory deductions as and when applicable as per legal rule

and norms.

• Your net pay is subject to Retention as mentioned above

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 Chapter 4: Digital Signature Used in Sugar Cosmetics
Use of Digital Signature in the Industry of Sugar Cosmetics:

Sugar Cosmetics uses digital signatures in several areas, including sales and distribution. One
example is the use of digital signatures to verify the authenticity of the product at the time of
delivery. The customer has to provide a digital signature to confirm the receipt of the product.
This ensures that the product has been delivered to the right person and at the right address.

One use of digital signature in the Sugar Cosmetics is for signing and submitting important
legal documents, such as contracts, bills of sale, and other agreements. With the increasing use
of technology and internet in the Beauty Industry, many companies are adopting digital
signature solutions to streamline their operations and improve efficiency.

Using a digital signature allows parties to sign a document electronically, rather than having to
physically sign and exchange paper documents. This can save time and reduce the risk of errors
or lost documents. Digital signatures can also provide greater security and authentication,
helping to prevent fraud and ensure the integrity of the signed document.

For example, Sugar Cosmetic may use digital signature software to allow customers to sign
and submit important documents, such as purchase agreements, electronically. This can help
to simplify the buying process and reduce the time and effort required for both parties.
Similarly, Sugar may use digital signature solutions to sign and manage contracts with
suppliers and manufacturers, helping to ensure timely and accurate delivery of materials and
components.

What is a digital signature?

A digital signature is an electronic equivalent of a handwritten signature. It is used to

authenticate the identity of the sender of a document and to ensure that the document has not
been tampered with.

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How do digital signatures work?

Digital signatures use cryptographic algorithms to generate a unique code that is tied to the
content of the document. This code is then used to verify the authenticity of the document.

What are the benefits of using digital signatures?

There are many benefits to using digital signatures, including:

Speed: Digital signatures can be used to sign documents quickly and easily. This can speed up
the approval process and reduce paper waste.

Security: Digital signatures are more secure than traditional signatures. They can be used to
verify the identity of the sender and to ensure that the document has not been tampered with.

Cost savings: Digital signatures can help to reduce the cost of printing and shipping
documents.

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 Chapter 5: IPR Registered

By registering these IPRs, Sugar can prevent other businesses from infringing on its trademarks
or patents, and ensure that its ideas and products are protected. This helps to safeguard the
company's competitive advantage, as well as its reputation and brand image.

The below are the two registered IPRs of Sugar Cosmetics

1. Trademark:
The brand name Sugar Cosmetics is applied by Vellvette Lifestyles Pvt. Ltd. on 13th of
April 2015. The company has trademarked its name and logo which are used to distinguish
its products from those of its competitors.

2. Patent:
Sugar has also registered patents for its innovations, such as the method used to produce
their cosmetics products. These patents give the company exclusive rights to manufacture,
use, and sell the patented products or processes, and prevent others from using the same or
similar technology.

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 Chapter 6: Consumer Complaints and Its Resolution
1. Complaint:
Recently I purchased a black kajal from sugar. I odeared it online. In the initial uses it was
perfect but from last 2 to 3 times they have been causing itching in my eyes which lead me
my eyes watering and now my eyes are facing redness too.
Resolution:
Thank you for your feedback.
We are sorry for your inconvinience. We will look into the matter and we assure you that
we will definitely not repeat this. We shall resolbe this soon.

2. Complaint:
A friend of mine recommended me sugar products. I have heard only good about sugar so
I thought to give it a shot. I have been trying to order the products from the website but the
order always gets delivered to a different address. I have made a complain several times
but they barely consider it and also they there as been no refund provided. Highly
dissapointed from Sugar.
Resolution:
Thank you for your feedback.
We are sorry for your inconvinience. We appologive you for not being there fot you to
register your complaints. We will be more careful while delivering the products now
onwards and we will also make sure that you get all of your refund by a week. We are also
willing send you the products you ordered from us and it will be from our side. Looking
forward for your review to the products.

3. Complaint:
It’s been a month since I have ordered from sugar, yet I have not received either the
conformation mail or the order number. I tried contacting the customer care several time
and have even mailed them but the answer is always that they need some time and they will
look into the matter. I have always been patient with them. But now its been a month and
still I don’t have any response from their side. Thank god I chose cash on delivery as
payment option. This was definitely not expected from a prosperous brand like this.

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Resolution:

Thank you for your feedback.

We are sorry for your inconvinience. We assure you that by the tomorrow you will get you
order number and the comformation code. We are also willing to send you some
suppliments with the order you placed because of the inconvinience caused to you from our
end. We also assure yiu that your order will be delivered in next 7 days. We will make sure
that this does not happen again with anybody. Thank you chosing us.

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 Chapter 7: Warranties and Guaranties Offered by Sugar Cosmetics

➢ What is warranty?

A warranty is an assurance usually given in a written format, and it can hold the manufacturer
of the product responsible for repairing or replacing a defective product or its parts.

In layman’s terms, a warranty specifies that a specific product, such as machines or electronic
equipment, meets the standard, i.e., quality, fitness, and performance. And if the product fails
to meet the established standards, the manufacturer will repair or replace the defective part. In
warranty, you do not get a refund.

➢ Types of Warranties

There are two general types of warranties, expressed and implied. Each category has different
sub-types of warranties, with terms, conditions, and guarantees.

1. Express Warranty
As its name suggests, an express warranty is an expressed guarantee from a seller or
manufacturer to a buyer that the purchased product performs according to certain
specifications. If defects are present, the seller agrees to repair or replace the defective product.
The warranty can be expressed in writing or verbally in advertising, on the product, or through
other means.

All expressed guarantees are not warranties. For example, if a Sugar Cosmetics claims that its
lipsticks will give you the "Matte and Creamy Look," they are not issuing a guarantee that it
will deliver upon that statement. It is puffery—exaggerated language used to advertise a
product and attract customers. It can be reasonably assumed that this claim is based only on
the opinion of the person making the statement in an attempt to promote the product.

In sugar cosmetics they advertise and say about their product for example “sukhar hai sugar
hai” this is expression so it said that it is a express warranty.

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 2. Implied Warranty
An implied warranty, or implied warranty of merchantability, is a guarantee that the purchased
product functions in the manner designed. It need not be expressed to be valid. This guarantee
is implied unless it is explicitly excluded—typical of "as is" sales.

Implied warranties also apply when sellers present and sell a product fit to fulfil a specific
purpose. The buyer relies on the seller's expertise to purchase the product. Any statements
made by the seller regarding the product can be considered assurances.

Any statement given by the retailers that shows the implied warranty, in Sugar cosmetics shop
you can see that when you go for shopping, they will suggest you and advise you about the
product and their expiration and quality so this shows the Implied Warranty.

➢ What is guarantee?

A guarantee is a promise made by the manufacturer to the consumer that if the product is of
poor quality or fails to meet the requirements promised, then the consumer can get the product
repaired, replaced, or refunded.

In layman’s terms, a guarantee is a promise about the quality of a product. Guarantees are less
likely to be written and are frequently not as well defined as warranties. Many businesses
verbally “guarantee” their customers’ satisfaction, with unhappy customers receiving full or
partial refunds.

1. Specific Guarantee

a particular guarantee is for one debt or any specific dealings. It involves associates finishing
once such debt has been paid.

A guarantee specifically given for any product that they firmly say like Sugar cosmetics are
well known for its lipsticks so they give specific guarantees such as they give guarantee for the
long-lasting lipstick if it does not work as said guarantee then they do follow return or refund
policies.

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 2. Continuing Guarantee

Act in 1872 defines Continuing Guarantee- A continuing guarantee is a form of assurance that
covers many transactions. Until the surety revokes it, it applies to all transactions engaged into
by the principal debtor. As a result, bankers prefer a continuing guarantee because the
guarantor's duty is not limited to the original advances and extends to all subsequent defaults.

A continuing guarantee's most crucial feature is that it applies to a succession of separate,

independent transactions (series of transactions). As a result, a promise for the full
consideration cannot be considered a continuing guarantee.

A continuing guarantee applies to any or all the transactions entered into by the principal mortal
till it is revoked by the surety. a seamless guarantee may be revoked anytime by the surety for
future transactions by giving notice to the creditors. However, the liability of a surety is not
reduced for transactions entered into before such revocation of guarantee.

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