NAME - RAJAN KUMAR

ROLL NU. – 2214501673

PROGRAMME – BBA

SEMESTER - 3

COURSE NAME-LEGAL & REGULATORY

FRAMEWORK
CODE - DBB2101
 SET-1

Que.1 Who is agent? Describe the rights of an agent against his principal.
Ans. The word ‘agency’ literally means doing something, providing a service or dealing with
third persons on behalf of another person, group of persons or organisation. The entity on whose
behalf the work is done, is called the ‘Principal’ and the entity that represents the ‘Principal’ is
called an ‘Agent’. The law of Agency deals with all aspects of agency - how an agency is formed
and terminated, the relationships between the principal and an agent as well as their powers and
duties.

Both the Agent and the Principal enjoy certain powers and rights under a legally formed agency.
An Agent duly authorised by the Principal derives his authority from the extent to which he can
bind his Principal to the acts he carries out on his behalf. The extent of such authority may vary
under normal or emergency circumstances. Under normal circumstances, an Agent who has the
authority to do an act on behalf of his Principal has the authority to do every lawful thing
necessary to carry out such an act. In an emergency, the Agent has the authority to do all such
acts as are necessary to protect the interest of his Principal and to save him from loss.

Rights and Duties of Agent Rights of an Agent

1. Right of Retainer: An Agent has the right to retain all money due to him in respect of
remuneration, advances made, expenses incurred in performing the act, out of any sum received
on account of the principal for doing so.

2. Right to receive remuneration: The Agent has the right to receive agreed remuneration on
completion of work. He is not entitled to any remuneration for partial completion of act or
transaction.

3. Right of Lien: An Agent has the right to retain the goods, paper and property, whether movable
or immovable, until the amount due to him for commission, expenses etc. has been paid.

4. Right to be indemnified against consequences of lawful acts: The Principal is bound to

indemnify his Agent against the consequences of all lawful acts done by such Agent in carrying
out the authorised act.

5. Right to be indemnified against consequences of acts done in good faith: When an Agent
carries out an authorised task in good faith, the Principal is liable to indemnify him against the
consequences of that act, even if it causes injury to the rights of third person. This provision
cannot be invoked in case of an act of criminal nature.

6. Right to receive compensation for injury caused by the Principal’s neglect: The Principal is
liable to compensate his Agent in case an injury is caused to such Agent by the Principal’s
neglect.

Que.2 All contracts are agreements, but all agreements are not contracts.” Discuss the statement
explaining the essential elements of a valid contract.
Ans. All contracts are agreement but all agreements are not contracts: According to section 2 of
the Indian Contract act an agreement enforceable by law is a contract. That is all agreement are
not contract. An agreement in order to become a contract must satisfy certain conditions which
are the essential essential elements of a contracts. For example, if an agreement is not indented to
create legal relationship, agreement not made with the free consent of the parties, agreement not
made for a lawful object etc. These agreements are not valid contracts. An agreement which does
not create legal obligation is also not a contract. Thus all contracts are agreements but all
agreements are not contracts.

For a contract to be valid and recognized by the common law, it must be include certain
elements- offer, acceptance, 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
contracts 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.

Que.3 Is Memorandum of Association a charter of a company? What are the contents of the
Memorandum of Association?
Ans. A Memorandum of Association or MOA is a legal document that a company prepares
during registration and formation. It is a company’s basic charter; it defines the organization’s
relationship with shareholders and specifies the business’s objectives. Companies can only
conduct activities mentioned in this document.
MOA consists of all rules and regulations governing a company’s relationship with
its shareholders, creditors, and any other person dealing with the business. Having this document
is mandatory for any company. Once prepared, an organization’s actions cannot go beyond the
scope of operations mentioned in it. Prospective shareholders check the contents of the
memorandum of the association before investing in a company.

The memorandum of association meaning refers to a document that defines a company’s

objectives and scope of operations. It serves as a company’s constitution and governs its external
affairs. Typically, companies need to prepare an MOA during the registration process.

There are various advantages of a memorandum of association. For instance, it helps prospective
investors decide whether investing in the company is right. Moreover, it defines a company’s
rights and limitations.

Companies cannot alter their capital clause without getting written consent from every member.

The contents of an MOA include name, registered office, object, liability, and association
clauses.

SET-2

Que.4 What are the powers and functions of the Competition Commission?
Ans. The post-liberalization competition and its effects were felt across the geographical
boundaries of countries. Technological growth also added new dimensions to competition issues.
India too witnessed these new developments in market competition and it became quite evident
that the MRTP Act was no longer adequate to address all the issues related to business and
market competition. There was a dire need to shift the focus from curbing monopolies to
promoting competition. Accordingly, a new law, the Competition Act, was passed by the
Parliament in 2002. It received the President’s assent on January 13, 2003. It was subsequently
amended by the Competition (Amendment) Act, 2007. In accordance with the provisions of the
The Act was further amended in 2009 and the provisions relating to anti- competitive agreements and
abuse of dominant position were notified on May 20, 2009. On 28th August, 2009, The Ministry of
Corporate Affairs, Government of India issued a notification whereby by the MRTP Act stood
repealed and was fully replaced by the Competition Act, 2002 with effect from September 1,
2009. Amendment Act, the Competition Commission of India and the Competition Appellate
Tribunal were established.

The Act provides for the establishment of the Competition Commission of India (CCI) to
implement the provisions of the Act. Consequently, the government established the CCI which is
the apex body under the Competition Act with effect from October 14, 2003.The CCI is selected
by a collegium or a search committee unlike the MRTP Commission which was appointed by the
government. CCI is a quasi-judicial adjudicator as well as a regulator on issues relating to
competition matters and policy. It has been vested with the responsibility of eliminating practices
having adverse effect on competition, promoting and sustaining competition, protecting the
interest of the consumers and ensuring freedom of trade carried on by other participants in India.
CCI is the successor to the MRTP Commission. It is headed by a Chairman who is assisted by a
minimum of two and a maximum of six other members who are appointed by the Central
Government. The CCI is not merely a law enforcement agency, but is also actively involved in
the formulation of the country’s economic policies. It advises the government on competition
policy, takes suitable measures for the promotion of competition advocacy and tries to create
awareness and imparts training about competition issues. Thus, the goals of CCI are to

Prevent practices having adverse effect on competition.

Promote and sustain competition in the market.

Protect the interests of consumers.

Ensure freedom of trade carried on by participants in markets.

For achieving the abovementioned goals, the Competition Act prohibits anti-competitive
agreements and abuse of dominant position. It also aims to regulate combinations and to
advocate competition.

Extra-territorial jurisdiction of CCI: The mandate of the Competition Commission extends

beyond the boundaries of India. The CCI has the power to inquire into such agreement or
dominant position or combination if it has or is likely to have an appreciable adverse effect on
competition in the relevant market in India. Thus, it also has jurisdiction over the following:

i) Any agreement that has been entered outside India and is anti- competitive in terms of
the provisions of the Act.
ii) Any agreement, combination or abuse of dominant position which has or is likely to
have an adverse effect on competition in the Indian market.
iii) Any enterprise abusing the dominant position, even if it is outside India.
iv) A combination that has taken place outside India.
v) Any other matter or practice or action arising out of such agreement or dominant
position or combination even if it is outside India.

Que.5 Write a detailed note on Copyright and major classes of it work.

Ans. Copyright refers to the legal right of the owner of intellectual property. In simpler terms,
copyright is the right to copy. This means that the original creators of products and anyone they
give authorization to are the only ones with the exclusive right to reproduce the work.

Copyright law gives creators of original material the exclusive right to further use and duplicate
that material for a given amount of time. Once a copyright expires, the copyrighted item
becomes public domain.

When someone creates a product that is viewed as original and that required significant mental
activity to create, this product becomes an intellectual property that must be protected from
unauthorized duplication. Examples of unique creations include:

• Novels
• Art
• Poetry
• Musical lyrics and compositions
• Computer software
• Graphic designs,
• Film
• Original architectural designs
• Website content

One safeguard that can be used to legally protect an original creation is copyright.1 Under
copyright law, a work is considered original if the author created it from independent thinking
void of duplication. This type of work is known as an Original Work of Authorship (OWA).

Anyone with an original work of authorship automatically has the copyright to that work,
preventing anyone else from using or replicating it. The copyright can be registered voluntarily
by the original owner if they would like to get an upper hand in the legal system in the event
that the need arises.
The copyright to your original work belongs to you even if you don't register it with the
government. However, you will need a registered copyright if you are bringing legal action for
infringement.

Not all types of work can be copyrighted. A copyright does not protect ideas, discoveries,
concepts, or theories. Brand names, logos, slogans, domain names, and titles also cannot be
protected under copyright law. For an original work to be copyrighted, it has to be in tangible
form. This means that any speech, discoveries, musical scores, or ideas have to be written down
in physical form in order to be protected by copyright.

In the U.S., original owners are protected by copyright laws all of their lives until 70 years after
their death. If the original author of the copyrighted material is a corporation, the copyright
protection period is 95 years from the date of publication or 120 years, whichever expires first.

Que.6 The Competition Act, 2002 is an improvement on the MRTP Act, 1969. Critically analyse
and differentiate among them.

Ans. The first legislation introduced in India in order to regulate competition was the
Monopolies and Restrictive Trade PracticesAct, 1969 (MRTP Act). The objective of the Act was
to control monopolies, i.e., avoid the concentration of power in the hands of a few people/
market players.

• In the year 2002, the Competition Act was introduced by replacing the MRTP Act. This act
along with a host of corresponding legislations intends to prevent market distortion caused by
anti-competitive practices.

• The Competition Act, 2002 (Act) established the Competition Commission of India (CCI) in
order to prevent anti-competitive practices and, promote and sustain competition in India.

Why Competition Law?

Highest economic penalties.

Individual penalties.

Manage disgruntled employees/partners.

Competition law compliance makes good business sense - keeps you ahead of the game.

“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll
do things differently.” – Warren Buffe