BUSINESS LAWS

CH-1

INDIAN REGULATORY FRAMEWORK

1. Law - A set of obligations and duties imposed by the government.

2. Sources - Where laws come from such as constitution, statutes, precedents etc.

3. Constitution - The supreme law that provides framework for governance.

4. Statutes - Laws passed by parliament and state assemblies.

5. Precedents - Past judicial decisions that set principles for future.

6. Customs - Long established practices that have legal basis.

7. Parliament - Supreme legislative body that makes laws.

8. Bill - Draft of a proposed law presented in parliament.

9. Notification - Official publication of law once passed.

10. Act - Law passed by parliament that is notified and enforceable.

11. Central List - Matters on which centre can legislate exclusively.

12. State List - Matters on which states can legislate exclusively.

13. Joint List - Matters on which both centre and states can legislate.

14. Criminal Law - Deals with crimes and punishments.

15. Civil Law - Deals with private disputes between citizens.

16. Common Law - Laws derived from judicial precedents and interpretations.

17. Natural Justice - Fundamental principles of fairness and reasonableness.

18. Ministry - Government department handling specific functions.

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19. Finance - Ministry handling fiscal and economic matters.

20. Corporate Affairs - Ministry regulating companies and enterprises.

21. Home Affairs - Ministry handling internal security and domestic policy.

22. Law and Justice - Ministry managing legal framework and judiciary.

23. SEBI - Regulator of securities and commodity markets.

24. RBI - India's central bank and banking regulator.

25. IBBI - Regulator for insolvency and bankruptcy proceedings.

26. Supreme Court - Apex federal court of appeal.

27. High Court - Highest court of a state or territory.

28. District Court - Basic trial court for civil and criminal cases.

29. Judge - Judicial authority adjudicating cases in a court.

30. Jurisdiction - Territorial authority of a court over cases.

31. Plaintiff - Person or party filing and pursuing a lawsuit.

32. Defendant - Person or party against whom lawsuit is filed.

33. Appeal - Filing petition in higher court against lower court order.

34. Stay Order - Court direction suspending operation of its own/lower court order.

35. Interim Order - Temporary court direction valid until final judgement.

36. Exparte Order - Court order passed without hearing concerned party.

37. Review Petition - Reconsideration plea filed in same court.

38. Special Leave Petition (SLP) - Plea to obtain special permission to appeal in Supreme
Court.

39. Vakalatnama - Document authorizing a lawyer to represent a party.

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40. Caveat - Request to court not to pass order without hearing party filing it.

41. Execution Petition - Application for enforcing decree or court order.

42. Attachment Order - Direction to appropriate property towards satisfying decree.

43. Garnishee Order - Direction to third party holding funds of judgement debtor to deposit
in court.

44. Injunction Order - Court direction to do or refrain from doing certain acts.

45. Certiorari - Direction seeking records of proceedings for judicial review.

46. Mandamus - Writ seeking performance of a public duty.

47. Habeas Corpus - Seeking release from unlawful detention.

48. Quo Warranto - Seeking removal of illegal usurpation of public office.

49. Lok Adalat - Informal extra judicial dispute resolution forum.

50. Mediation - Non-binding negotiation process with neutral third party assistance.

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 BUSINESS LAWS

CH-2

THE INDIAN CONTRACT ACT, 1872

UNIT-1 NATURE OF CONTRACTS

1. Agreement - A promise or set of promises forming consideration for each other

2. Contract - An agreement enforceable by law

3. Offer - A proposal to do or abstain from doing something

4. Acceptance - Assent to an offer

5. Consideration - Something of value given in exchange for a promise

6. Consent - Free and voluntary assent by both parties

7. Promise - An accepted proposal

8. Promisor - Person making the proposal

9. Promisee - Person accepting the proposal

10. Proposal - Same as offer

UNIT-2 CONSIDERATION

11. Natural affection - Close familial relationship.

12. Registration - Recording a document with a government agency to make it legally valid.

13. Gratuitous - Something done voluntarily without payment or obligation.

14. Executed: A consideration which consists in performance of an act.

15. Executory: A consideration which consists in a promise.

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16. Privity: Private or joint knowledge of a private matter.

17. Covenant- A binding agreement made under seal.

18. Detriment- Legal damage, hurt, loss or harm.

19. Valid- Legally binding due to meeting legal requirements.

20. Void-Of no legal effect, null.

UNIT-3 OTHER ESSENTIAL ELEMENTS OF A CONTRACT

21. Contract - An agreement which is enforceable by law.

22. Capacity - Legal competence to enter into a valid contract.

23. Minor - A person below the age of 18 years.

24. Consent - Concurrence of the parties on the same thing in the same sense.

25. Free consent - Consent not caused by coercion, undue influence etc.

26. Coercion - Committing any act forbidden by IPC to induce consent.

27. Fraud - Intentional false representation to induce consent.

28. Misrepresentation - Unintentional false representation.

29. Undue influence - Unfair use of dominant position to dominate consent.

30. Unlawful - Forbidden by law or against public policy.

UNIT-4 PERFORMANCE OF CONTRACT

31. Performance - Fulfillment of obligations under a contract.

32. Actual performance - Actually doing what one has undertaken to do.

33. Tender - Offer to perform the obligation.

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34. Joint promisors - Two or more persons who have made a joint promise.

35. Contribution - Share of a joint promisor towards performance.

36. Appropriation - Application of payment towards a particular debt.

37. Novation - Substitution of new contract for an existing one.

38. Rescission - Cancellation of the contract by mutual consent.

39. Alteration - Change in one or more terms of the contract.

40. Remission - Acceptance of lesser performance than promised.

UNIT-5 BREACH OF CONTRACT AND ITS REMEDIES

41. Breach - Failure to perform contractual obligation.

42. Anticipatory breach - Breach before performance is due.

43. Actual breach - Breach on the date performance is due.

44. Damages - Monetary compensation for breach.

45. Ordinary damages - Damages arising naturally from the breach.

46. Special damages - Damages specifically communicated before the contract.

47. Exemplary damages - Damages to punish the guilty party.

48. Liquidated damages - Reasonable amount estimated as likely loss from breach.

49. Penalty - Unreasonable amount fixed to force performance.

50. Rescission - Termination of contract by the aggrieved party.

UNIT-6 CONTINGENT AND QUASI CONTRACTS

51. Contingent - Dependent on a future uncertain event.

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52. Collateral - Secondary, not directly connected.

53. Enforcement - Compelling the performance of obligations.

54. Impossibility - Inability to perform the contract.

55. Wager - Betting agreement based on uncertain event.

56. Quasi - Resembling but not actually being something.

57. Unjust enrichment - Unfair gain by one at the cost of another.

58. Necessaries - Goods essential for living suited to condition in life.

59. Reimburse - Repay a person who has spent money on another's behalf.

60. Obligation - Legal responsibility to perform.

UNIT-7 THE NEGOTIABLE INSTRUMENTS ACT, 1881

61. Negotiable instrument - A document that is freely transferable and the property passes
to a bonafide holder.

62. Promissory note - An unconditional written promise to pay a certain sum of money to a
specified person.

63. Bill of exchange - An unconditional written order to pay a specified sum to a specified
person signed by the maker.

64. Cheque - A bill of exchange drawn on a specified banker payable on demand.

65. Bearer instrument - A negotiable instrument payable to bearer or endorsed in blank.

66. Order instrument - A negotiable instrument payable to order.

67. Inland instrument - Drawn and payable in India or drawn on a person resident in India.

68. Foreign instrument - Not an inland instrument.

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69. Ambiguous instrument - Instrument which may be treated as a promissory note or bill
of exchange.

70. Negotiation - Transfer of a negotiable instrument to make the transferee its holder.

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 BUSINESS LAWS

CH-3

THE SALE OF GOODS ACT, 1930

UNIT-1 FORMATION OF THE CONTRACT OF SALE

1. Contract - An agreement between two or more parties to create legal obligations.

2. Sale - Transfer of ownership/property in goods for a price from seller to buyer.

3. Goods - Every kind of movable property except actionable claims and money.

4. Price - Monetary consideration for sale of goods.

5. Property - Ownership rights in the goods.

6. Buyer - Person who buys or agrees to buy goods.

7. Seller - Person who sells or agrees to sell goods.

8. Agreement to sell - Contract where property in goods is transferred at a future date.

9. Delivery - Voluntary transfer of possession from one person to another.

10. Actual delivery - Physical transfer of goods to the buyer.

11. Constructive delivery - Acknowledging possession of goods on behalf of buyer.

12. Symbolic delivery - Delivery of a token representing the goods.

13. Existing goods - Goods owned/possessed by seller at the time of contract.

14. Future goods - Goods to be manufactured or produced after contract.

15. Ascertained goods - Identified goods out of an ascertainable lot.

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 UNIT-2 CONDITIONS AND WARRIENTIES

16. Condition - A stipulation essential to the main purpose of the contract.

17. Warranty - A stipulation collateral to the main purpose of the contract.

18. Breach - Failure to perform the exact terms of a contract.

19. Repudiate - Reject or refuse to recognize the validity or existence of a contract.

20. Damages - Monetary compensation for loss or injury.

21. Stipulation - A condition, demand, or promise in a contract.

22. Essence - A vital or fundamental part of something.

23. Representation - A statement or account made to influence opinion or action.

24. Reliance - Dependence or trust by a person on something.

25. Defeat - Prevent from attaining an objective.

26. Collateral - Secondary to or complementary to the main purpose.

27. Construction - Interpretation of the terms of a contract.

28. Rescind - Cancel or annul a contract.

29. Aggrieved - Suffering from an infringement of legal rights.

30. Merchantable - Fit for ordinary commercial sale.

UNIT-3 TRANSFER OF OWNERSHIP AND DELIVERY OF GOODS

31. Property - Ownership of the goods.

32. Ascertained - Identified specific goods.

33. Intention - Purpose or objective in the contract.

34. Deliverable - Ready for delivery.

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35. Appropriation - Selecting goods for the contract.

36. Unascertained - Not identified or decided yet.

37. Transmission - Transfer from one to another.

38. Reservation - Retaining a right over something.

39. Possession - Occupation or control over something.

40. Voidable - Valid until annulled.

41. Repudiated - Rejected the validity of a contract.

42. Collateral - Secondary in importance.

43. Concurrent - Happening simultaneously.

44. Instalments - Partial deliveries over time.

45. Deterioration - Worsening in condition or quality.

UNIT-4 UNPAID SELLER

46. Seller - A person or entity offering goods for sale.

47. Buyer - A person who purchases goods.

48. Sale - A transaction involving transfer of goods for money or value.

49. Price - The amount paid by the buyer to purchase goods.

50. Delivery - The transfer of physical possession of goods from seller to buyer.

51. Shipment - The transportation of goods, usually by a carrier.

52. Ownership - Legal right to possess and use the goods sold.

53. Contract - An agreement between seller and buyer stipulating terms of sale.

54. Breach - Violation of a term or obligation under the sales contract.

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55. Damages - Monetary compensation for loss resulting from contract breach.

56. Lien - Right of seller to retain goods until paid.

57. Possession - Having physical control or custody of goods.

58. Insolvency - Inability of buyer to pay debts when they are due.

59. Transit - Goods in the course of transportation from seller to buyer.

60. Appropriation - Designating goods to fulfill the sales contract.

61. Perishable - Goods subject to decay or spoilage over time.

62. Auction - Public sale where goods go to highest bidder.

63. Tender - Formal offer to deliver goods or pay money.

64. Repudiate - Reject the validity or obligation of contract.

65. Rescind - Cancel or annul a contract.

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 BUSINESS LAWS

CH-4

THE INDIAN PARTNERSHIP ACT, 1932

UNIT-1 GENERAL NATURE OF PARTNERSHIP

1. Partnership - Relation between persons who agree to share profits of a business carried
on by all or any one of them acting for all.

2. Partner - A person who has entered into partnership with one or more persons.

3. Firm - Collective name of the partners who have entered into partnership with one
another.

4. Agreement - Voluntary arrangement between partners to carry on some business and

share its profits.

5. Business - Trade, occupation or profession carried on with a motive to earn profits.

6. Profit-sharing - Essential element of partnership where partners agree to divide profits

among themselves.

7. Mutual agency - Partners act as agents as well as principals of each other while carrying
out business of the firm.

8. Registration - Not compulsory for partnership firms in India.

9. Deed - Written legal document containing terms of partnership agreed among partners.

10. Capital contribution - Amount invested in firm by each partner.

11. Profit-sharing ratio - Pre-agreed ratio in which profits and losses will be divided among
partners.

12. Admission - Process of allowing a new partner into the partnership.

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13. Retirement - Voluntary withdrawal of a partner from the partnership.

14. Ostensible partner - Partner who actively participates in the conduct of the business.

15. Dormant partner - Partner who does not actively participate in the conduct of business.

16. Nominal partner - Partner who simply lends his name to the business.

17. Incoming partner - New partner admitted to an existing partnership.

18. Outgoing partner - Retiring or withdrawn partner.

19. Holding out - Falsely representing oneself as partner to third party.

20. Dissolution - Termination or break-up of existing partnership firm.

UNIT-2 RELATIONS OF PARTNERS

21. Solicit - Seek orders or business.

22. Sever - Cut off connection with firm.

23. Public notice - Notification to public.

24. Adjudication - Declaration by court that one is insolvent.

25. Agency - Partners act as agents as well as principals of each other while carrying out
business of the firm.

26. Liability - Legal responsibility of partners for debts and obligations of the firm.

27. Insolvency - Inability of a partner to pay debts as they become due.

28. Goodwill - Value of the reputation of a business house expected to generate higher
future profits.

29. Transfer - Assignment of a partner's interest to a third party.

30. Retirement - Voluntary withdrawal of a partner from the firm.

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31. Expulsion - Forced removal of a partner from the firm as per contract and in good faith.

32. Reconstitution - Change in the constitution of a firm due to admission, retirement,

death or insolvency of a partner.

33. Accounts - Financial statements showing assets, liabilities, income and expenses of the
firm.

34. Profits - Excess of revenues over related costs and operating expenses of the firm in an
accounting period.

35. Losses - Excess of costs and operating expenses over revenues of the firm in an
accounting period.

36. Capital - Amount invested in the firm by a partner.

37. Drawings - Amounts withdrawn from the firm by a partner for personal use.

38. Commission - Percentage of profits allowed to a partner for special services rendered.

39. Lien - Right of a creditor to retain possession of debtor's property until the debt is
repaid.

40. Guarantee - Promise to be liable for payment if another party defaults on an obligation.

UNIT-3 REGISTRATION AND DISSOLUTION

41. Deed - Written partnership agreement with terms and conditions.

42. Registration - Getting a firm registered with the Registrar of Firms

43. Application - Applying for registration by submitting prescribed form and fees

44. Statement - Details to be furnished in the application form for registration

45. Non-registration - Not getting a firm registered under the Act

46. Disabilities - Restrictions imposed on unregistered firms and partners

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47. Suit - Legal case filed in a civil court

48. Set-off - A counterclaim by the defendant against the plaintiff

49. Debts - Financial obligations that firm owes to outside parties

50. Property - Assets and property rights belonging to the partnership

51. Holding Out - Falsely representing oneself as a partner to third parties.

52. Retirement - Voluntary withdrawal of a partner from the firm.

53. Contingencies - Specific events that can trigger dissolution of a firm

54. Novation - Substitution of new contract for old one.

55. Agency - Partners acting as agents and principals of each other in firm.

56. Transfer - Assignment of a partner's rights/interests to a third party.

57. Estoppel - Bar preventing denial of assumed position regarding partnership.

58. Reconstitution - Change in partners upon admission, retirement, expulsion etc.

59. Severance - Partnership relation broken between outgoing partner and remaining
partners.

60. Deadlock - Situation where partners disagree and business decisions stall.

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 BUSINESS LAWS

CH-5

THE LIMITED LIABILITY PARTNERSHIP ACT, 2008

1. Partnership - Relation between people who agree to share profits of a business.

2. Partner - Person who has entered into a partnership.

3. Limited - Liability restricted to a fixed amount.

4. Liability - Legal responsibility for debts and obligations.

5. Capital - Amount invested by partners into the LLP.

6. Vehicle - Means for carrying out business activities.

7. Flexibility - Ability to structure internal governance through mutual agreement.

8. Hybrid - Mix of a partnership and a company.

9. Incorporation – The legal process of registering a new LLP.

10. Body corporate – Legal entity with rights and liabilities separate from partners.

11. Agreement - Mutually agreed upon governance terms between partners.

12. Management – Operation and oversight of the LLP’s business.

13. Designated - Specified partners legally responsible for duties and compliances.

14. Resident - Partner who has stayed in India for 120+ days in a year.

15. Contribution - What a partner invests in or commits to the LLP.

16. Seal - Official stamp used to authenticate documents.

17. Accounts - Financial statements of assets, liabilities, etc.

18. Profits - Business revenue minus expenses over a period.

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19. Losses – Business expenses exceeding revenue over a period.

20. Drawings - Sums of money taken out of the LLP by a partner.

21. Dissolution – Termination of the LLP Partnership.

22. Insolvency - Inability to pay debts/liabilities as they are due.

23. Entity – The LLP as a legal structure separate from its owners.

24. Transfer – Assignment of a partner’s rights/interest to a third party.

25. Goodwill - Expected higher future profits due to business reputation.

26. Guarantee - Promise making one liable for another's obligation default.

27. Registration – Official listing in the Register of LLPs.

28. Deed - Formal legal agreement spelling out LLP governance terms.

29. Novation - Replacement of one obligation by a new binding obligation.

30. Agency – Partners acting as agents and principals for each other.

31. Severance –Separation, especially a partner fully splitting from an LLP.

32. Deadlock - Stalled decision-making due to disagreement between partners.

33. Estoppel – Bar preventing denial of assumed position regarding the LLP.

34. Reconstitution – Change in partners due to admission, retirement, expulsion etc.

35. Retirement - Voluntary withdrawal of a partner from the LLP.

36. Expulsion - Forced removal of a partner from the LLP.

37. Admission - Acceptance of a new partner into the LLP.

38. Accounts - Financial statements showing assets, equity, profits and losses.

39. Winding up – Officially dissolving the LLP as a legal entity.

40. Certificate - Formal document certifying incorporation.

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41. Compliance - Conforming officially to rules and regulations.

42. Statement - Formal written assertion or declaration regarding the LLP.

43. Settlement - Resolution and adjustment of LLP accounts.

44. Incoming - Recently joined new partner.

45. Outgoing – Recently withdrawn former partner.

46. Holding out - Falsely representing oneself as a partner.

47. Damages - Monetary compensation for breach of obligations.

48. Dormant – Partner who does not actively participate in the LLP.

49. Arbitration - Referral of a dispute to an impartial third party.

50. Negligence - Carelessness leading to breach of duty owed.

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 BUSINESS LAWS

CH-6

THE COMPANIES ACT, 2013

1. Company - An artificial person created under the Companies Act.

2. Incorporation - Process of legally forming a company.

3. Registration - Formal completion to bring a company into existence.

4. Certificate - A documentary confirmation that the Registrar is satisfied with incorporation

formalities.

5. Liability - Legal responsibility.

6. Memo - Charter of a company defining scope of its activities

7. Articles - Rules and regulations for the company's internal management.

8. Directors - Persons appointed to direct company affairs.

9. Meetings - A coming together of company members to discuss matters.

10. Capital - Amount invested in a company by its members.

11. Promoter - A person who takes initiative in forming a company.

12. Shareholder - A member holding shares of the company's capital.

13. Entity - Separate legal existence.

14. Ultra Vires - Acts beyond power or authority.

15. Constructive - Deemed in eyes of law.

16. Management - Conduct of company's business and internal affairs.

17. Doctrine - Settled principle of law.

18. Indoor - Internal regulations and proceedings of company.

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19. Transferable - Capable of being transferred.

20. Statutory - Created or defined by a statute.

21. Body corporate - Company as a legal or juristic person.

22. Board - Company's board of directors.

23. Resolution - Formal decision by company members.

24. Share - Fractional interest in company's capital.

25. Equity - Ordinary share capital carrying voting rights.

26. Preference - Share Capital carrying preferential rights as to dividend or repayment.

27. Limited - Company where member liability is limited.

28. Unlimited - Company with no limit on member liability.

29. Guarantee - Company where member liability is limited to amount guaranteed.

30. Private - Company with restrictions on transfer and membership.

31. Public - Company without restrictions imposed on private company.

32. Listed - Company with shares listed on stock exchange.

33. Prospectus - A document inviting deposits from public or subscription to securities of

the company.

34. Accounting - System to record financial transactions and maintain books of accounts.

35. Auditing - Examination of company’s accounts.

36. Insolvent - Unable to pay debts.

37. Winding up - Process of bringing business activities to a closure.

38. Contributories - Persons liable to contribute to assets on winding up.

39. Official liquidator - Person appointed to conduct winding up.

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40. Corporate veil - Separate legal entity status.

41. Lifting of corporate veil - Disregarding separate legal entity status.

42. Perpetual succession - Uninterrupted existence until dissolution.

43. Alteration - Change in company rules or constitution.

44. Subsidiary - Company controlled by another company.

45. Fraud - Dishonest deception for unlawful gain.

46. Forgery - Making of false document to cheat.

47. Irregularity - Failure to observe requirements and procedures.

48. Good faith - Honesty in fact.

49. Majority - More than 50% of voting power.

50. Minority - Less than 50% voting power.

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 BUSINESS LAWS

CH-7

THE NEGOTIABLE INSTRUMENTS ACT, 1881

1. Negotiable instruments - Freely transferable financial instruments like cheques, bills of

exchange, promissory notes etc.

2. Promissory note - A written promise to unconditionally pay a fixed sum of money.

3. Bills of exchange - A written order by one party to another to pay a fixed sum.

4. Cheque - A bill of exchange drawn on a bank payable on demand.

5. Bearer instrument - A negotiable instrument payable to bearer.

6. Order instrument - A negotiable instrument payable to order.

7. Inland instrument - A negotiable instrument made and payable in India.

8. Foreign instrument - A negotiable instrument not made in India.

9. Inchoate instrument - An incomplete negotiable instrument.

10. Ambiguous instrument - An instrument that can be a bill or note.

11. Negotiation - Transfer of instrument to make transferee the holder.

12. Delivery - Transfer of possession of instrument.

13. Dishonor - Non-payment of negotiable instrument.

14. Acceptance - Assent to order contained in bill of exchange.

15. Presumption - Assumption unless rebutted.

16. Defence - Justification to avoid liability.

17. Presentment - Production of instrument for acceptance/payment.

18. Reasonable time - Sensible period for presentment.

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19. Maturity - Date of payment fixed in instrument.

20. Instalment - Part of total sum in instrument.

21. Banker - Institution dealing with money and bills.

22. Customer - Person having account with a bank.

23. Intentionally - Knowingly prevents presentment.

24. Engaged - Bound to pay even without presentment.

25. Waives - Surrenders some right.

26. Suffer damage - Incur loss.

27. Agent - Person working on behalf of another.

28. Legal representative - Heirs of deceased person.

29. Assignee - Person to whom property is transferred.

30. Circumstances - Situations or conditions.

31. Imputable - Ascribable or attributable.

32. Misconduct - Unacceptable behavior.

33. Bank note - Currency note issued by RBI.

34. Currency note - Paper money in circulation.

35. Hundis - Indian bill of exchange.

36. Debentures - Loan certificates bearing fixed interest.

37. Railway receipt - Acknowledgement for goods by railway.

38. Bill of lading - Acknowledgement for goods by ship.

39. Custom - Established practice or usage.

40. Merchant - Trader dealing with goods.

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41. Stamped - Bearing stamp required by law.

42. Consideration - Price paid by one party to another.

43. Moral obligation - Based on ethical grounds.

44. Illegal consideration - Consideration forbidden by law.

45. Estoppel - Bar to deny some fact earlier admitted.

46. Truncated cheque - Electronic image of cheque.

47. Clearing house - Institution for settlement of instruments.

48. Asymmetric crypto system - Encryption used in digital signature.

49. Electronic signature - Digital code to identify signer.

50. Holder - Person entitled to receive payment.

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