Business Law-1

BUSINESS LAWS
PROF: BENNY PAPPACHEN

BSC.PGDBA.LLM-Business laws
PGD-Cyber Law & Forensics
1st Semester
Business Laws-Prof.Benny Pappachen
What is Law?????
Law is that portion of established habit and thought

of mankind which has gained distinct and formal
recognition in the shape of uniform rules backed by
the authority and power of Government.

Before learning the meaning of the term 'Law'
you must
know as to why we need law
No civilized society can exist without law. It is required

for the preservation of peace and orderliness in every
society.
Without law, no person will care for others and their
dealings may not materialize.
With the growth of society and the concept of welfare
state, it became necessary to regulate the conduct of
People and protect their property and contractual
rights.
Hence, each country enacted laws suited to its various
needs and the value system it cherished.
LAW
Includes all the rules and principles which
regulate our relations with other individuals and
with the state.
Rules of conduct, if recognized by the state and

enforced by it on people are termed as law.

OBJECT OF LAW
To establish socio-economic justice and

remove the existing imbalance in the
socio-economic structure.
.

Presumption of Law
Every person is presumed to know the law.
“Ignorantia juris non-excusat”

Ignorance of law is no excuse.

Law is different to different people
CITIZEN set of rules
LEGISLATOR something created by him.
JUDGE guiding principles to be applied in
making decisions.
Therefore, its difficult to give a single, accurate
definition of law.
Code of conduct / Set of rule

ACCORDING TO SALMOND
(Legal scholar)
“ law is the body of principles recognized and

applied by the state in the administration of
justice.”
Law is not static.

Law changes to fit the requirements of the
society.
ELEMENTS OR
CHARACTERISTICS OF LAW
Law is a body of rules.

Law is for the guidance or conduct of persons-
both human and artificial.
Law is imposed on the members.
Law is enforced by punishment
Law is not static

CLASSIFICATION OF LAW
1. Public Law
2. Private Law/Civil Law

PUBLIC LAW
1. Constitutional Law– determines the nature of

state and structure of the government
2. International Law
3. Administrative Law– functions, powers of the
organs of the government.
4. Criminal Law – deals with various offences &
punishment and their prevention ways
5.Municipal Law– relationship between individual
and their organisation within a state.
PRIVATE LAW / CIVIL LAW
1. Law of contract
2. Law of tort
3. Law of property– legal right to use, possess,
enjoy & dispose of a thing
4. Family law
5. Mercantile law

INDIAN CONSTITUTION
The constitution of India is the supreme law of India.
It lays down the framework defining fundamental political principles, establishes the structure,
procedures, powers and duties of citizens.
The nation is governed on the basis of this constitution.
The constitution was adopted by the constituent assembly on 26 November, 1949 and came into
effect on 26 January, 1950.
The Constitution is a set of laws and rules that sets up the machinery of the Government of a state,
which defines and determines the relations between the different institutions and components of
the government, the executives, the legislature, the judiciary, the central, and the local government.

Preamble of Constitution
The Indian Constitution starts with a

preamble, which outlines the main objectives
of the Constitution.
It serves as a key to the Constitution.
Whenever the judiciary is in doubt about any
particular provision of the Constitution it
refers to the preamble to find out the real
intentions of the framers of the Constitution.
PREAMBLE OF INDIAN CONSTITUTION
• We, the people of India, having solemnly resolved to
constitute India into a SOVEREIGN, SOCIALIST,
SECULAR,DEMOCRATIC, REPUBLIC and to secure to all of its
citizens;
• JUSTICE social, economic and political;
• LIBERTY of thought, expression, belief, faith and worship;
• EQUALITY of status and of opportunity ; and to promote
among them all;
• FRATERNITY assuring the dignity of the individual and the
unity and integrity of the nation;
• In our Constituent Assembly, this 26th day of November,
1949, do HEREBY ADOPT, ENACT AND GIVE TO OURSELVES
THIS CONSTITUTION.

Fundamental Rights
The Indian Constitution incorporates a list of
Fundamental Rights and guarantees their
inviolability by executive and legislative
authorities.
Part III (Articles 12-35) deals with the
Fundamental Rights granted to individuals.
There are six types of fundamental rights in
the constitution.

6 Fundamental Rights
• Right to Equality
• Right to Freedom
• Right against Exploitation
• Right to Freedom of Religion
• Cultural and Educational Rights
• Right to Constitutional Remedies

Directive Principles of State Policy
• The phrase ‘Directive Principles of State Policy’ means
the principles which the states should keep in mind
while framing the laws and formulating policy.
• Articles 39 to 51 contain the various directive
principles. These principles are amalgamation of
socialistic, Gandhian and liberal principles.
• The Directive Principles of State Policy which have
been enshrined in Part IV of the Constitution aim at
realizing the high ideals of justice, liberty, equality and
fraternity as outlined in the preamble to the
constitution.

ECONOMIC IMPLICATIONS OF
THE INDIAN CONSTITUTION
The Constitution
of India is
There are certain
comprehensive
economic
and consists of
implications of
various
the Indian
provisions that
constitution.
affect every
citizen of India.

Constitutional provisions dealing with the
property, contracts, rights, liabilities,
obligations and suits of the centre and the
states.(Part X11)
Part XII is a compilation of laws pertaining to

the constitution of India as a country and the
union of states that it is made of. This part of
the constitution consists of Articles on
Finance, Property, Contracts and Suits
Articles 264 to 300

Constitutional Provisions Regarding Trade, Commerce
and Intercourse within the Territory of India(PART
X111)
Articles 301 to 307 of Constitution of India
deals with the constitutional provisions
regarding Trade and Commerce.
The framers of the Indian Constitution were
fully conscious of the importance of
maintaining the economic unity of the Union
of India. Free movement and exchange of
goods throughout the territory of India was
essential for the Economic Unity of the
country which alone could sustain the
progress of the country.
Conclusion
The Legal aspect of business empowers the

government to intervene in business activities.
The basic purpose of this intervention is to protect
the interest of workers employed in the
industries and other similar institutions.
Fundamental rights and directive principles of
state policies as given in the Indian constitution
expect that the government should take
initiatives to safeguard the interest of labour

THE END

THE INDIAN CONTRACT ACT
1872
PROF: BENNY PAPPACHEN
BSC.PGDBA.LLM-Business laws
PGD-Cyber Law & Forensics

INDIAN CONTRACT ACT -1872
The law related to contracts in India is
contained in the Indian contract act
1872
The act came in to force with effect
from Sep 1 1872

THE ACT HAS 266 SECTIONS DIVIDED
IN TO FOLLOWING GROUPS
✓ General principles of law of contract -
• 1to75.
✓ Contracts related to sale of goods -76 to
124.
✓ Special kind of contracts (indemnity,
guarantee, bailment etc ) -125 to 238.
✓ Contracts relating to partnership -239 to
266.
RIGHTS AVAILABLE TO PARTIES
Jus in Personam: A Right against a Person
Jus in Rem: A Right against the entire world
Ex: ‘A’ owes `5000 to ‘B’. The ‘B’ has a right to get
back `5000 only from ‘A’.
This right of ‘B’ is called as Jus in Personam
Jus in Rem: The right against a Thing
Ex: ‘X’ owns a house.
‘X’ has a right of its possession and enjoy his
living in the society.
Every member in the society/state are under
the obligations to not to disturb ‘X’.
This right of ‘X’ is called as Jus in Rem

Contract
Contract is the Legal Agreement between the
parties (buyer and seller), which is enforceable
(compelling or actionable) by law..
According to Sec 2(h) of Indian Contract Act,
Contract is the Legal Agreement
between the parties, protected by Law.
Ex: An Contractor has agreed to build a house
for Shyam in 6 months, with 20% of construction
cost as his remuneration. (Is there a contract.?)
Proposal/Offer-Sec 2(a)
When one person signifies to another his
willingness to do or abstain from doing anything
with a view to obtain his assent on such act or
abstinence, he is making PROPOSAL
EX.. A goes to hotel and orders tea. He is making

a proposal

Acceptance- Sec 2(b)
When one person signifies his assent thereto on

the assent he is said to accept the proposal
EX.. When A orders tea (proposal) B supplies tea

it is understood that the proposal made by A is
accepted by B

Promise
When a person to whom the proposal is made
signifies his assent, the proposal is said to be
accepted.
An accepted proposal is known as a Promise
Ex… when A asks B to lend him a book and B gives

his assent to lend him the book.. This is promise.
Proposal by A to lend the book. Acceptance by B
lending the book

Considerations
An agreement made without consideration is

nudum pactum (a nude contract) and is VOID.
Consideration is the technical term used in sense of
quid pro quo (something in return). This something in
return is Considerations.
Ex: ‘A’ offers to sell his car to ‘B’ for ` 100000.
For ‘A’ the consideration is to received ` 100000 from ‘B’
For ‘B’ the consideration is to get the car from ‘A’

Agreement -Sec-2(e)
Agreement is a Mutual acceptance of offer

between the involved Parties..
Agreement = Proposal (offer) + Consent of Acceptance
Ex: Sujay Promises to sell his goods to Vijay and
Vijay Promises to Pay Specific amount to Sujay
Sujay Promises to Sell his Goods: Proposal/Offer
Vijay Promises to Purchase and Pay: Acceptance
Thus Agreement is an Accepted Proposals

Consensus ad idem..
An agreement must ensure that the minds of

both the parties, must be agreed to each other
(mutual understanding with clarity).
This is called as Consensus ad idem.
Ex: Abhi has 2 horses, Hansraj and Rajhans.
- Abhi agreed to sell Rajhans to Sunil at `100000
- Sunil thinks that he will be purchasing Hansraj
- This shows that there is no Consensus ad idem,
hence there is no Contract
To make a Clear Contract
1) There must be a language used for offer and

acceptance, known to both the parties and
clearly defined.
2) The value of exchange (money), which is to
be exchanged must be clearly agreed ( `/$)
Ex: Abhi Offers to sell his Black colour Horse
Rajhans to Sunil for `100000 and Sunil says Yes
(accepts) with clear words.
Enforceability
An Agreement to become a Contract must

result in Obligations.
Obligation is a Legal Binding that Ties both the
parties to perform their actions.
An Agreement that gives rise to a Social
Obligation is not a Contract.
Ex: ‘A’ agrees to sell his car at `100000 to ‘B’. Now
‘A’ has a legal obligation to sell it and ‘B’ has
legal obligations to pay `100000
“ All Contracts are agreements but all
agreements are not Contracts”
Agreements of moral, religious or social nature are

not contracts
• They are not likely to create a duty enforceable by
law
• Parties never intended to create a legal obligation

Social Agreement/Obligations
Ex: Amit invites Deep for Dinner and Deep Accepts it.
- It becomes a Social Obligations on Amit to keep
ready food and on Deep to attend the Dinner.
- It is not the contractual obligations, hence if Deep
fails to attend the dinner, it can not be enforced by
Law
A father promises to pay his daughter 5000 rs as

pocket money when the college starts but refuses to
Pay… can the daughter go to the court to claim ???
Case Law
Balfour Vs Balfour-1919
• A husband promised to pay his wife a £30
per month allowance. The wife sued her
husband to enforce the promise.
Agreements between husband and wife to provide monies are
generally not contracts because the “parties do not intend that
they should be bound by legal obligations.”
The agreement was purely social and domestic in nature and
characteristic and therefore it was presumed that the
parties did not intend to be legally bound.

CONTRACT
Proposal(offer) + Acceptance= Promise

Promise + Consideration = Agreement
Agreement + Enforceability = CONTRACT

Essential Elements of a Valid Contract
1) Agreement:
- There must be two parties
- There must be an Offer and an Acceptance
- It should also include defined terms and
conditions and accepted by both the parties
- There has to be a proper and clear
communication b/n both the parties

b/n: Between
Offer and Acceptance
If there has to be an Agreement, it must have;

1) Two parties
2) One Offer and One Acceptance
Offer: it is the proposal by one party to the
other party to enter in to legally binding
agreement b/n them
Acceptance: It is the act of Assenting (Confirm)
by the other party to the offer given.
Offer
An offer can be made by

- spoken, written or expressed words.
Ex: Abhi says to Balu, will you buy my car for
` 100000
- In this example, Abhi has an offer (proposal) for
Balu, which signifies his willingness to sell his car
to Balu and there is intention of Abhi to get
confirmation (assent) from Balu to buy it.
Offer
When an Offer is made to a specific person, it is

called as Specific Offer
When an Offer is made to public (open world) it is

called as General Offer.

What Constitutes an Offer
Not every proposal can be legally regarded as

offer.
1) There must have a party, having an offer and
which should signify his willingness
Ex: Sunil jokingly offers to Manoj to purchase his mobile
phone at ` 10. Here Sunil is not willing to sell and hence
Manoj will not accept his offer.
2) The offeror must obtained the assent from other

party and the offer must be definite
3) A clear communication of offer and no hidden
clause Business Laws-Prof.Benny Pappachen
OFFER and INVITATION TO OFFER
An invitation to offer will turn into a contract
only when an offer is made by the seller to the
buyer. The difference, therefore, lies in the
word “invitation”. It is an invitation to any
potential buyer to make an offer on the goods
to be sold. There are several examples of an
invitation to offer: auctioneering, display of
goods in a shop, an invitation to tender, display
of the menu of a restaurant, advertisements in
a newspaper, an invitation to see an apartment
for sale/rent, recruitment offers, request for
proposals, etc
Acceptance
A contract begins with the acceptance of the

offer by the other party.
Acceptance is simply Assenting (confirming)
Here, the Acceptance shows the willingness of
the other party (offeree) to follow the terms and
conditions of the offer.
The acceptance may be Express or Implied

Express & Implied Acceptance
Express Acceptance: It is when the offeree the other

party) communicates the Acceptance by
means of spoken or written words.
Implied Acceptance: It can be understood
from the surrounding circumstances or conduct
of the offeree (other party)
Ex: At an auction sale, Sudha is highest bidder.
The auctioner accepts the offer by striking the
hammer on table. (Implied Acceptance)
Identify the modalities of offer and acceptance in the
following situations
Situation 1:
Gyan says to the shopkeeper “will u sell me this soap for
Rs 10?” The shopkeeper nods.
Situation 2:
In a hostel canteen ,diff food items are kept in bowls. Students
Can pick up and eat what they like .An attendant writes the food
items picked by a student against his name in a register .The amt
for the item picked up is deducted from the “ADVANCE MESS CHARGE”
paid by the student at the beginning of the term.
Situation 3
Ajay puts Rs 5 to get a cup of coffee from a coffee vending machine.
2) Legal Relationships
- To make it enforceable by Law, the Agreement
must have legal relationships
- Ex: An agreement between 2 friends for Movie
don’t have a legal relationship, hence can not
be enforced by law.
- Ex: A Job offered by a company to ‘A’ under
certain terms and conditions (offer letter),
accepted and signed by ‘A’ is legal relationship
contd….
3) Lawful Considerations:
- The agreement b/n both the parties must include
lawful considerations
- Consideration- to give something in return of
Ex: ‘X’ offers to sell his car to ‘Q’ for ` 90000
For ‘X’ the consideration is ‘Q’ will give ` 90000
For ‘Q’, the consideration is ‘X’ will deliver the Car
Thus in any agreement, there must be
considerations accepted by both the parties
Need for Considerations
The consideration ensures a valid offer, valid

acceptance and thus a valid contract.
Only valid contracts are enforceable by law
The contract is unforceable, if the offer is made
for nothing and accepted for nothing
Ex: ‘A’ promised to give ` 1000 to ‘B’ for nothing.
‘B’ has not promised to do anything to
compensate to ‘A’.
This transaction is unenforceable by law
contd….
4) Free and Genuine Consent:
- The consent of acceptance (agreement) by
the party must be free and genuine, i.e. the
consent should not be forceful or under any
pressure.
- The Contract must have Consensus ad idem
-

Free Consent-contd….
Consent is act of assenting an offer.

2 or more parties are said to consent, when they
agree upon same thing with same sense. Sec 13
Sec 14:Free consent is when, it is not caused by;
1)Coercion
2)Undue influence
3)Fraud
4)Misrepresentation
5)Mistake

Free Consent –contd….
Coercion: when a person is compelled to enter into

contract with fear, physical compulsion and
menace (threat)
Ex: Ajay Contracts to paint his house on gun point
to Murali at ` 500 as labour charge. This is coercion
Undue Influence: An agreement b/n two parties

can be said to under undue influence, when it is
the result of unfair persuasion by other party
Ex: Master & his Servant, Father & Son, Spiritual Guru
and the devotee etc.
Difference Between Coercion and Undue
Influence
1.Mode of Obtaining Consent
- In Coercion ,Consent obtained by threatening to
act.
- In U.I. , Consent obtained by using dominating
power.
2. Type of Force
-In Coercion, physical force is exercised.
- In U.I. , Moral forced is used.
3. Existence of Relationship
-relationship between the promisor and the
promisee is not necessary.
-Some sort of relationship MUST exist between the
two parties to the contract.
Free Consent-contd…
Misinterpretation:
Misrepresentation is a false representation made
innocently without any intention of deceiving the
other party. It may include two things:
(a) Wrong statement of a material facts not known to
be false
(b) Non-disclosure of the facts where there is a large
duty to disclose without any intention to
deceive.

Free Consent –contd…
Fraud
Fraud means method of misleading a person
- deliberately to cause in him a wrong
- understanding of so as to obtaining that’s
- person’s consent for a contact.
Ex: 1) Amit is selling his motor bike to Hemant asserting

that it is in good condition and gives a mileage of
90km/lit.
2) Investors are encouraged to invest in company,
which is showing a constant growth, but actually the
company is at loss Business Laws-Prof.Benny Pappachen
Diff. between Fraud and Misrepresentation
1. Intention:
- In fraud, there is intention to deceive (mislead to
somebody). It is delibrate or wilful
-In Mis. , there is no intention to deceive. It is
innocent.
2. Consequence:
-In Fraud, damage can be available to the affected
party for the loss suffered and can rescind also
-In Mis. , no such damage are available. But can rescind
or sue for restitution
3. Defense:
-In Fraud, the guilty party does not have any defense in
its favor.
In Mis. , the guilty party have defense in its favor.
MISTAKE
A mistake means an error in understanding the
fact relevant for formation of a contract.
Mistake is of two major kinds: Mistake of Law
Mistake of Fact
1. Mistake of law:
a. mistake as to Indian law
sec 21 says that “a contract cannot be said to be voidable
because it was caused by a mistake of the parties in
understanding of any law in force in India”. Hence the parties
cannot claim relief on the grounds they were unaware of the
Indian law
b. mistake as to foreign law
mistake as to of a foreign country vitiates the contract and
renders it void. have the
Business samePappachen
Laws-Prof.Benny effect as a mistake of fact”
2.Mistake of fact:
a. Bilateral mistake
“Acc to sec 20 where both the parties to an
agreement are under a mistake as to a matter of fact,
essential to the agreement shall be void.”
Therefore a bilateral mistake has two elements.
(1) there must be a common or mutual mistake ,
i.e mistake shared by both or all parties.
(2) the mistake must be related to a matter of fact
essential to the agreement.
b. unilateral mistake
Acc to sec 22 a contract is not voidable merely because
it was caused by one of the parties to it being under a
mistake as to a matter of fact.
Contd…..
5) Capacities of both the parties:
- Both the parties engaging in contract must be
capable of;
1) Understanding the Contract and its terms
2) Capable of fulfilling the Consideration
- Following category of people are legally not capable
a) A Minor (age below 18 years in India)
b) A person of unsound mind (psycho)
c) A person, who is disqualified by Law
Capacity to Contract
Capacity means Competence to fulfill the terms

of contract and to make the contract Valid.
As per sec-11, every person is competent to do
contract who is;
1) A major of age as per law

2) Of sound mind
3) Not disqualified by law
Ex: a 17 year old Mohan agreed to purchase a second
hand scooter for ` 30000 from Sushil. Mohan paid ` 5000
as advance and agreed to pay balance on the day of
delivery of scooter (legally not a contract)
Contd…..
6) Lawful Object:
- The object of the agreement must be lawful;
The object must not be….
1) Illegal
2) Immoral
3) Against Public policy or safety
Otherwise, it will not be enforceable by law

LEGALITY OF OBJECT AND
CONSIDERATION
For a valid contract , both the consideration and object must

be lawful.
Object may defined as purpose or design of the contract.
Acc to sec 23 ,the object and consideration of an
agreement shall be unlawful if:

Legality of Object
1.it is forbidden by law.
1)
Ex: Ashok promises to Chetan to pay ` 100000 for
getting a job in public sector. This is bribe and is
forbidden in law

Legality of Object
2) It is of such nature if permitted ,it

would defeat the provisions of law
Ex: Ram was licensed under excise act to run a

liquor shop. This license Ram can not sale or rent
or lease or partner to anyone else.If Ram invites Rahul
as his partner, in the same liquor shop, then the
agreement b/n Ram and Rahul will be void.

Legality of Object
3) If it is Fraudulent:
If the agreement made is with
the intention of fraud to the other party, then it is
Void.
Ex: Kailash is the land lord to whom Amol is
working as his agent. Without notification to
Kailash, if Amol provides the house on rent or
lease anyone else, then this agreement is void.

Legality of Object
4) If it involves and implies injury to the person or

property of another:
Ex: If a newspaper owner promises to the team
working in printing department to indemnify
(insurance against legal responsibility) the latter
against any consequences arising from Libels (the
crime of publishing a false statement that harms
any person’s reputation). This is a void agreement.

5.the court regards it as immoral and
opposed to public policy
An agreement ,the consideration or object of which is
Immoral . ex an agreement between Husband and wife
for future separation
An agreement is said to be opposed to public policy when

it is harmful to public welfare

Agreement opposed to Public Policy
1) Agreement of Trading with Enemy:-
2) Agreement to commit a crime (You cannot

convert crime into source of profit)
3) Agreement in the Nature of Maintenance:-

( one party having no interest in suit, Public Litigation)
4) Agreement for the sale/Transfer of Public Office and Titles :- (transfer of

public offices or to obtain public titles are illegal on the ground of public
policy)

5) Agreement Creating Interest against Professional Duty:- ( any agreement
by him , which goes against his duty and brings some personal gain to
him, is Void)
6) Agreement in Restraint of Parental Right:- (agreement which prevent

apparent to exercise his right of guardianship is Void)
7) Agreement is Restraint of Personal Liberty :- ( personal freedom to the

citizen)
8) Agreement in restraint of trade-
9) Agreement Interfering with course of Justice:-
10) Marriage Brokerage Contract :-

Contd…..
7) Agreement not declared as Illegal or Void:
- Any agreement, that contains invalid elements
by law, it can not be a valid agreement
Ex: Offensive products like Drugs, Explosives etc.
are the invalid elements.
An agreement b/n a drug dealer and a buyer is
void.
An agreement made with a person who is missing
for more than 7 years
Void Agreement
The last essential of a valid contract as declared by Section 10 is that it
must not be one which is ‘expressly declared’ to be void by the Act. The
following agreements have been ‘expressly declared’, to be void by
Indian Contract Act:
Agreements by incompetent parties :Sec 11
Agreements made under a mutual mistake of fact :Sec 20
Agreements the consideration or object which is unlawful : Sec 23
Agreements without consideration : Sec25
Agreements in restraint of marriage:Sec 26.
Agreements in restraint of trade: Sec 27.
Agreements in restraint of legal proceedings:Sec 28.
Agreements by way of wager: Sec 30
Agreements contingent on impossible events.Sec 36
Agreements to do impossible acts :Sec 56
Wagering Agreement-Wager
A wager is an agreement b/n two parties by

which one party promises to pay money or
money’s worth on happening of uncertain event,
which is in consideration that the other party will
also pay, even if the event doesn’t happen.
Ex: ‘A’ agrees to pay ` 5000 to ‘B’, if it rains on
Monday and ‘B’ also promises to pay ` 5000, if it
doesn’t rain on Monday. This is wagering contract as
the event is uncertain and to be happen in future.
It can be also true for the event, which happened in
past
A Contract can be;
1) Absolute Contract
2) Contingent Contract
An Absolute contract is one, where the promisor
binds himself to perform his obligations without
any conditions
A Contingent contract is one, where the
obligation performance depends upon
something else (subject to chance)

Contd….
8) Certainty and Possibility of Performance:
- The terms and conditions of an agreement
must be certain and possible to be performed
by both the parties.
Ex: If a person promises (offers) to produce gold
from household materials, for which he is
demanding ` 50000 to ‘B’. This is not a lawful
agreement, as producing gold from household
materials is not possible
Contd….
9) Legal formalities:
- The contract b/n two parties can be by
1) Word of mouth
2) With written words
As there is no difference in these two
- But for the interest of both the parties and to
protect it legally, one must have written contract
- Other than this, the other legal formalities are…
1) The contract must be legally stamped and signed

2) It must be registered
3) It must be signed by witnesses

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BUSINESS LAWS

PROF: BENNY PAPPACHEN

Law is that portion of established habit and thought

Business Laws-Prof.Benny Pappachen

No civilized society can exist without law. It is required

Rules of conduct, if recognized by the state and

Business Laws-Prof.Benny Pappachen

To establish socio-economic justice and

Business Laws-Prof.Benny Pappachen

Every person is presumed to know the law.

“Ignorantia juris non-excusat”

Business Laws-Prof.Benny Pappachen

Business Laws-Prof.Benny Pappachen

“ law is the body of principles recognized and

Law is not static.

Law is a body of rules.

Law is enforced by punishment

Law is not static

2. Private Law/Civil Law

Business Laws-Prof.Benny Pappachen

1. Constitutional Law– determines the nature of

Business Laws-Prof.Benny Pappachen

The nation is governed on the basis of this constitution.

Business Laws-Prof.Benny Pappachen

The Indian Constitution starts with a

Business Laws-Prof.Benny Pappachen

Business Laws-Prof.Benny Pappachen

Business Laws-Prof.Benny Pappachen

Business Laws-Prof.Benny Pappachen

Business Laws-Prof.Benny Pappachen

Part XII is a compilation of laws pertaining to

Business Laws-Prof.Benny Pappachen

The Legal aspect of business empowers the

Business Laws-Prof.Benny Pappachen

Business Laws-Prof.Benny Pappachen

Business Laws-Prof.Benny Pappachen

Business Laws-Prof.Benny Pappachen

Jus in Personam: A Right against a Person

Jus in Rem: A Right against the entire world

Business Laws-Prof.Benny Pappachen

EX.. A goes to hotel and orders tea. He is making

Business Laws-Prof.Benny Pappachen

When one person signifies his assent thereto on

EX.. When A orders tea (proposal) B supplies tea

Business Laws-Prof.Benny Pappachen

Ex… when A asks B to lend him a book and B gives

Business Laws-Prof.Benny Pappachen

An agreement made without consideration is

Business Laws-Prof.Benny Pappachen

Agreement is a Mutual acceptance of offer

Business Laws-Prof.Benny Pappachen

An agreement must ensure that the minds of

1) There must be a language used for offer and

An Agreement to become a Contract must

Agreements of moral, religious or social nature are

Business Laws-Prof.Benny Pappachen

A father promises to pay his daughter 5000 rs as

Business Laws-Prof.Benny Pappachen

Proposal(offer) + Acceptance= Promise

Business Laws-Prof.Benny Pappachen

Business Laws-Prof.Benny Pappachen

If there has to be an Agreement, it must have;

An offer can be made by