Business and

Industrial Law

Professor Dr. Afjal Hossain

Chairman
Department of Marketing, PSTU.

Text: Sen, A.K. & Mitra, J.K. Commercial Law and Industrial Law (Business Law)
 Law
• Law is the command of the Sovereign. It means-
– It has its source in sovereign authority,
– It is accompanied by sanctions, and
– The command to be a law should compel a course of
conduct.
• “Law is a rule of external human action enforced by
the sovereign political authority.”- Holland
• “Law is the body of principles recognized and
applied by the state in the administration of
justice.”- Salmond
 Society and Law
• Society is a community or a group of persons,
living in any region, who are united together
by some common bond.
– A common bond is formed when some uniformity
of factors like neatness, nature of the people,
habit, custom, inhibition, beliefs, culture, tradition
etc.
• Law unlike social rules, is enforced by the
state.
 Objectives of Law
• Bring order in the society
• According to Rosco Pound, Law is related to
the following three elements-
1. The legal structure of the society
2. Constitutional ideals and principles
3. Legal procedure
 Rule of Law
• The concept of equality of all persons before law
is the basis of what is called the rule of law.
• There are three rules of law-
1. No man is punishable or can be lawfully made to
suffer in body or goods except for a distinct breach
of law established in the ordinary legal manner
before the ordinary courts
2. No man is above law
3. The result of statutes and judicial decisions
determining the rights of private persons
 Criticism of Rule of Law
• The emergence of administrative law
• Economic inequalities
• The supremacy of the of the legislature
 Contract

• “Every agreement and promise enforceable at

law is contract.”- Pollack
• “A contract is an agreement creating and
defining obligations between the parties.”-
Salmond
• “An agreement enforceable by law is a
Contract.”-Indian Contract Act of 1872-2(h)
 Enforceability
An agreement is enforceable if it is recognized
by court. In order to be enforceable by law, the
agreement must create legal obligations
between the parties.
 Types of Agreement
• Social Agreement: Social agreement are not
enforceable because they do not create legal
obligations between the parties. Example:
invitation for dinner.
• Legal Agreement: Legal agreement are
enforceable because they create legal
obligations between the parties. Example: “A”
promise to sell his car to “B”.
 Contract Act
• Contract = Agreement + Enforceability
• Agreement = Offer + Acceptance
• Enforceability = Legal obligations b/w parties
 ESSENTIALS OF VALID CONTRACT
1. Offer and Acceptance
2. Legal Obligation
3. Lawful Consideration
4. Capacity of Parties
5. Free Consent
6. Lawful Object
7. Certainty of Terms
8. Possibility of Performance
9. Not expressly declared void
10. In Writing and Registration
 KINDS OF CONTRACT
There are four types of contracts.
1. According to Enforceability.
2. According to Formation.
3. According to Performance.
4. According to Parties.
 KINDS OF CONTRACT: Enforceability
According to enforceability, a contract can be
divided as under;
a: Valid Contract.
b: Void Contract.
c: Void Agreement.
d: Voidable contract.
e: Unenforceable contract.
f. Illegal Agreement.
 KINDS OF CONTRACT: Formation
According to Formation, a contract has the
following three kinds.
a) Express Contract.
b) Implied Contract.
c) Quasi Contract.
KINDS OF CONTRACT: Performance
According to performance, a contract is of
following two kinds.
a) Executed Contract
b) Executory Contract
 KINDS OF CONTRACT: Parties
According to parties, a contract may be of the
following two kinds.
a) Unilateral Contract
b) Bilateral Contract
 Discharge of a Contract
By Following modes in which a contract may be
discharged.
1. By Performance
2. By Mutual Agreement
3. By impossibility of Performance
4. By Operation of Law
5. By Breach
Any Query