1 “All agreements are not contracts, but all contracts are agreements”. Comment.

It is a valid and true statement. Before we can critically examine the statement, it is necessary to understand the meaning of agreement and contract. According to section 2(a) "every promise on every set of promises forming the consideration for each other an agreement. It is fact an agreement is a proposal and its acceptance, by which two or more person or parties promises to do abstain from doing an act. But a contract according to section 2(h) of the Indian Contract Act, "An agreement enforceable by law is a contract. It is clear these definitions that the there elements of a contract ore (a) Agreement Contractual Obligation (b) Enforceability by Law. For Example: X invites his friend to tea and the latter accepts the invitation. This is a social agreement not a contract because it does not imply any legal obligation. We can say that (a) All contracts are agreements, (b) But all agreements are not contracts. (A) All Contracts are Agreements For a Contract to be there an agreement is essential; without an agreement, there can be no contract. As the saying goes, "where there is smoke, there is fire; for without fire, there can be no smoke". It could will be said, "where there is contract, there is agreement without an agreement there can be no contract". Just as a fire gives birth to smoke, in the same way, an agreement gives birth to a contract. Another essential element of a contract is the legal obligation for the parties to the contract, there are many agreements that do not entail any legal obligations. As such, these agreements cannot be called contracts. For Example: A gives his car to B for repair and B asks for Rs. 200 for the repair works. A agrees to pay the price and B agrees to repair the car. The agreement imposes an obligation on both. The third element of a contract is that the agreement must be enforceable by Law. If one party fails to keep his promise, the other has the right to go the court and force the defaulter to keep his promises. There are other elements are: 1. Offer and acceptance, 2. Legal obligation,

3. Lawful consideration, 4. Valid object, 5. Agreement not being declared void by Law, 6. Free consent, 7. Agreement being written and registered, 8. Capacity to contract, 9. Possibility of performance from what has been discussed. It is clear that all contracts are agreements. All Agreements are not Contracts : An agreement is termed a contract only when it is enforceable by law. All agreements are not necessarily legally enforceable. It can rightly be said that an agreement has a much wider scope than a contract. For example that agreements are not legally binding are an invitation to dinner or to go for a walk and its acceptance. These are agreements not contracts. An agreement does not necessarily imply a legal obligation on the parties to the agreement. It is import here to clarify what exactly is an obligation. Obligation is a legal tie which imposes upon a person or persons the necessity of doing or abstaining from doing definite act or acts. An agreement need not necessarily be within the framework of law and be legally enforceable. If it is, then it is a contract. A promises B to do physical harm to C whom, the latter does not like and B promises to pay A Rs. 1000 to do that, it cannot be termed as a contract because such an act would be against the law. Any agreement of which the object or consideration is unlawful is void and cannot be called a contract. It would be clear from what has been said so far that an agreement has a much wider scope than a contract. An Agreement implies fulfilling some agreed condition. It does not necessarily imply that the stipulated conditions conform to the law and are enforceable by it. It may be said that an agreement is the genus of which contract is the species. It also makes it clear that all agreements are not contracts but all contracts are agreements.

2. What are the essentials of a contract of sale under the sale of Goods Act, 1930?
Sec.4 defines a contract of sale as 'a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price'. From the definition, the following essentials of the contract emerge: 1. There must be at least two parties. A sale has to be bilateral because the property in goods has

to pass from one person to another. The seller and the buyer must be different persons. A person cannot buy his own goods. However, a part-owner may sell to another part-owner. Examples: A partnership firm was dissolved and the surplus assets, including some goods, were divided among the partners in specie. The sales-tax officer sought to tax this transaction. Held, this transaction did not amount to sale. The partners were themselves the joint owners of the goods and they could not be both sellers and buyers. Moreover, no money consideration was promised or paid by any partner to the firm as consideration for the goods allotted to him. 2. Transfer or agreement to transfer the ownership of goods. In a contract of sale, it is the ownership that is transferred (in the case of sale), or agreed to be transferred (in the case of agreement to sell), as against transfer of mere possession or limited interest (as in the case of bailment or pledge). 3. The subject matter of the contract must necessarily be goods. The sale of immovable property is not covered under Sale of Goods Act. The expression 'goods' is defined in Sec.2(7). 4. Price is the consideration of the contract of sale. The consideration in a contract of sale has necessarily to be 'money', (i.e., the legal tender money). If for instance, goods are offered as the consideration for goods, it will not amount to sale. It will be called a 'barter'.

3. Describe the main features of Consumer Protection Act 1986.
In 1986, the consumer protection act bill was forwarded in the Lok Sabha by Mr. H.K.L Bhagat. The main aim of the bill was to make provisions for the establishment of consumer protection councils at the districts, states and national levels. But, in order, to get benefited with this act, as a consumer, you first need to understand who a consumer is.

Who is a consumer?
Generally, when you purchase something you become a buyer or a consumer. But, according to the consumer protection act, you can only be termed a consumer when you buy goods or services for the purpose of consumption. It is important to mention here, that, if you purchase any goods or services for resale you cannot be termed a consumer. For the sake of your understanding let us consider an example. Suppose, if you purchase a four wheeler motor car for doing some businesses like sending children to school and in turn charge some monthly fees for giving the service then you will not be turned as a consumer. Why? Because you have purchased the motor car for doing business. In contrast to this, if you purchase the four wheeler motor car for your self use or for your family and not for doing any business then you will legally be termed a consumer.

Features of consumer protection act
In India, the consumer protection act of 1986 was passed to protect the interest of consumers throughout the country. Here, I am going to discuss some of the main aims of the consumer protection act of 1986.

1. Formation of consumer protection councils at the district, state and national levels. These bodies will carry out the function of protecting consumer rights. 2. Besides, there are other rights which are conserved for the consumers. For instance, stopping the sale of those products and services which are harmful to the life, health and property of the consumers in general.

3. To protect and raise awareness among consumers against any kind of fraud and malpractice during the purchase of any goods and services. 4. To raise awareness among the consumers about their health benefits available from the consumption of different kinds of goods and services. 5. To educate the consumers about the consumer protection act and consumer protection methods. This education will help the consumers in such a way so that they are not cheated by the different kinds of sellers in the market. 6. To establish courts of justice (Quasi-judicial) institutes at district, state and national levels. If any seller breaks the laws and does not adhere to the laws of the court then he/she will be prosecuted and punished under the law.


What are the duties and powers of an „authorised person‟ under FEMA, 1999?

FEMA permits only authorised person to deal in foreign exchange or foreign security. Such an authorised person, under the Act, means authorised dealer,money changer, off-shore banking unit or any other person for the time being authorised by Reserve Bank. The Act thus prohibits any person who:-

   

Deal in or transfer any foreign exchange or foreign security to any person not being an authorized person; Make any payment to or for the credit of any person resident outside India in any manner; Receive otherwise through an authorized person, any payment by order or on behalf of any person resident outside India in any manner; Enter into any financial transaction in India as consideration for or in association with acquisition or creation or transfer of a right to acquire, any asset outside India by any person is resident in India which acquire, hold, own, possess or transfer any foreign exchange, foreign security or any immovable property situated outside India.

Reserve Bank's powers to issue directions to authorised person : (1) The reserve Bank may, for the purpose of securing compliance with the provisions of this Act and of any rules, regulations, notifications or directions made thereunder, give to the authorised persons any direction in regard to making of payment or the doing or desist from doing any act relating to foreign exchange or foreign security. (2) The Reserve Bank may, for the purpose of ensuring the compliance with the provisions of this Act or of any rule, regulation, notification, direction or order made thereunder, direct any authorised person to furnish such information, in such manner, as it deems fit. (3) Where any authorised person contravenes any direction given by the Reserve Bank under this Act or fails to file any return as directed by the Reserve Bank, the Reserve Bank may, after giving reasonable opportunity of being heard, impose on the authorised person a penalty which may extend to ten thousand rupees and in the case of continuing contravention with an additional penalty which may extend to two thousand rupees for every day during which such contravention continues.

5 What do you mean by Memorandum of Association ? What does it contain?

Memorandum of association is one of the documents which has to filed with the registrar of companies at the time of incorporation of a company. Section 2(28)defines a memorandum to mean “the memorandum of association of a company as originally framed or as altered from time to time in pursuance of any previous company law or of this act.” The definition, however, either does not give us any idea as to what a memorandum of association really is nor does it point out the role which it plays in the affairs of the company. The memorandum of association is an extremely important document in relation to the affairs of the company. It is a document which sets out the constitution of the company and is really the foundation on which the structure of the company is based. It contains the fundamental conditions upon which alone the company is allowed to be incorporated. A company may pursue only such objects and exercise only such powers as are conferred expressly in the memorandum or by implication therefore i.e. such powers as are incidental to the attainment of the objects. A company cannot depart from the provisions contained in its memorandum, however, great the necessity may be. If it does, it defines its relation with the outside world and the scope of its activities. The purpose of the memorandum is to enable shareholders, creditors and those who deal with the company to know what is the permitted range of the enterprise. It defines as well as confines the powers of the company; it not only shows the object of its formation, but also the utmost possible scope of its operation beyond which its action cannot go. Lord Cairns in Ashbury Railway Carriage Co. V. Riche pointed out,” The memorandum is as it were, the area beyond which the action of the company cannot go; inside that area the shareholders may make such regulations for their own government as they think fit.” Purpose of memorandum: The purpose of the memorandum is two fold. 1. The intending share holder who contemplates the investment of his capital shall know within what field it is to be put at risk. 2. Anyone who shall deal with the company shall know without reasonable doubt whether the contractual relation into which he contemplates entering with the company is one relating to a matter within its corporate objects. At least seven persons in the case of public company and at least two in the case of a private company must subscribe to the memorandum. The memorandum shall be printed, divided into consecutively numbered paragraphs, and shall be signed by each subscriber, with his address, description and occupation added, the presence of at least one witness who will attest the same. Contents of Memorandum: According to section 13, the memorandum of association of every company must contain the following clauses: 1. The name of the company with „limited‟ as the last word of the name in the case of a public limited company and with „private limited‟ as the last word in the case of a private limited company. 2. The state in which the registered office of the company is to be situated. 3. The objects of the company to be classified as: a. The main objects of the company to be pursued by the company on its incorporation and objects incidental to the attainments of the main objects, and b. Other objects not included above

4. In the case of companies with object not confined to one state, the states to whose territories the objects extend. 5. The liability of members is limited if the company is limited by shares or by guarantee. 6. In the case of a company having a share capital, the amount of share capital with which the company proposes to be registered and its division into shares of a fixed amount. An unlimited company need not include items 5 and 6 in its memorandum. In the case of a company limited by guarantee, its memorandum of association shall state that each member undertakes to contribute to the assets of the company, in the event of its being wound up while he is a member or within or year after wards for the payment of the debts and liabilities of the company. Every subscriber to the memorandum shall take at least one share and shall write opposite to his name the number of shares taken by him.

6 Write a note on the following: a. Copy Right Act b. Pledge

Copyright is a form of intellectual property protection granted under Indian law to the creators of original works of authorship such as literary works (including computer programs, tables and compilations including computer databases which may be expressed in words, codes, schemes or in any other form, including a machine readable medium), dramatic, musical and artistic works, cinematographic films and sound recordings. Copyright law protects expressions of ideas rather than the ideas themselves. Under section 13 of the Copyright Act 1957, copyright protection is conferred on literary works, dramatic works, musical works, artistic works, cinematograph films and sound recording. For example, books, computer programs are protected under the Act as literary works. Copyright refers to a bundle of exclusive rights vested in the owner of copyright by virtue of Section 14 of the Act. These rights can be exercised only by the owner of copyright or by any other person who is duly licensed in this regard by the owner of copyright. These rights include the right of adaptation, right of reproduction, right of publication, right to make translations, communication to public etc. Copyright protection is conferred on all Original literary, artistic, musical or dramatic, cinematograph and sound recording works. Original means, that the work has not been copied from any other source. Copyright protection commences the moment a work is created, and its registration is optional. However it is always advisable to obtain a registration for a better protection. Copyright registration

does not confer any rights and is merely a prima facie proof of an entry in respect of the work in the Copyright Register maintained by the Registrar of Copyrights. As per Section 17 of the Act, the author or creator of the work is the first owner of copyright. An exception to this rule is that, the employer becomes the owner of copyright in circumstances where the employee creates a work in the course of and scope of employment. Copyright registration is invaluable to a copyright holder who wishes to take a civil or criminal action against the infringer. Registration formalities are simple and the paperwork is least. In case, the work has been created by a person other than employee, it would be necessary to file with the application, a copy of the assignment deed. One of the supreme advantages of copyright protection is that protection is available in several countries across the world, although the work is first published in India by reason of India being a member of Berne Convention. Protection is given to works first published in India, in respect of all countries that are member states to treaties and conventions to which India is a member. Thus, without formally applying for protection, copyright protection is available to works first published in India, across several countries. Also, the government of India has by virtue of the International Copyright Order, 1999, extended copyright protection to works first published outside India. Indian perspective on copyright protection: The Copyright Act, 1957 provides copyright protection in India. It confers copyright protection in the following two forms: (A) Economic rights of the author, and (B) Moral Rights of the author. (A) Economic Rights: The copyright subsists in original literary, dramatic, musical and artistic works; cinematographs films and sound recordings. The authors of copyright in the aforesaid works enjoy economic rights u/s 14 of the Act. The rights are mainly, in respect of literary, dramatic and musical, other than computer program, to reproduce the work in any material form including the storing of it in any medium by electronic means, to issue copies of the work to the public, to perform the work in public or communicating it to the public, to make any cinematograph film or sound recording in respect of the work, and to make any translation or adaptation of the work. In the case of computer program, the author enjoys in addition to the aforesaid rights, the right to sell or give on hire, or offer for sale or hire any copy of the computer program regardless whether such copy has been sold or given on hire on earlier occasions. In the case of an artistic work, the rights available to an author include the right to reproduce the work in any material form, including depiction in three dimensions of a two dimensional work or in two dimensions of a three dimensional work, to communicate or issues copies of the work to the public, to include the work in any cinematograph work, and to make any adaptation of the work. In the case of cinematograph film, the author enjoys the right to make a copy of the film including a photograph of any image forming part thereof, to sell or give on hire or offer for sale or hire, any copy of the film, and to communicate the film to the public. These rights are similarly available to the author of sound recording. In addition to the aforesaid rights, the author of a painting, sculpture, drawing or of a

manuscript of a literary, dramatic or musical work, if he was the first owner of the copyright, shall be entitled to have a right to share in the resale price of such original copy provided that the resale price exceeds rupees ten thousand. (B) Moral Rights: Section 57 of the Act defines the two basic “moral rights” of an author. These are: (i) Right of paternity, and (ii) Right of integrity. The right of paternity refers to a right of an author to claim authorship of work and a right to prevent all others from claiming authorship of his work. Right of integrity empowers the author to prevent distortion, mutilation or other alterations of his work, or any other action in relation to said work, which would be prejudicial to his honour or reputation. The proviso to section 57(1) provides that the author shall not have any right to restrain or claim damages in respect of any adaptation of a computer program to which section 52 (1)(aa) applies (i.e. reverse engineering of the same). It must be noted that failure to display a work or to display it to the satisfaction of the author shall not be deemed to be an infringement of the rights conferred by this section. The legal representatives of the author may exercise the rights conferred upon an author of a work by section 57(1), other than the right to claim authorship of the work Indian Judiciary Response: The response of Indian judiciary regarding copyright protection can be grouped under the following headings: (1) Ownership of copyright, (2) Jurisdictional aspect, (3) Cognizance taken by the court, (4) Infringement of copyright, (5) Availability of alternative remedy, and (6) Rectification of copyright. (1) Ownership of copyright: The ownership in copyright may vest in different persons under different circumstances.

SET – 2

1) “Freedom to contract is a myth or an illusion”. Discuss
Freedom to contract is a myth or an illusion The freedom of the parties is limited by two factors. There are certain laws for the protection of the employees, and an employer cannot, therefore, induce his employees to enter into any contract favourable to the employer. What is a standard form contract? A standard form contract is a document which is generally printed, containing terms and conditions, with certain blanks to be filled in. It is prepared by the business people. The customer has only to sign it. Therefore, from his standpoint, the freedom to contract is restricted. Many of the contracts now being entered into by consumers are not the result of individual negotiations; rather they are one-sided contracts. The law of contract in India is contained in the Indian Contract Act, 1872. This Act is based mainly on English common law, which is to a large extent made up of judicial precedents. (there being a separate contract act in England). It extends to the whole of India except the state of Jammu and Kashmir and came into force on the first day of September 1872 (Sec.1 Indian Contract Act, 1872). The act is not exhaustive.

Essentials of a contract Sec.10 provides that all agreements are contracts, if they are made by free consent of parties, competent to contract, for a lawful consideration, and with a lawful object, and are not expressly declared by law to be void. To constitute a contract, there must be an agreement between two or more than two parties. No one can enter into a contract with himself. An agreement is composed of two elements – offer or proposal by one party and acceptance thereof by the other party. Effect of absence of one or more essential elements of a valid contract: If one or more essentials of a valid contract are missing, then the contract may be either voidable, void, illegal or unenforceable.

2 Distinguish between a contract of guarantee and a contract of indemnity.
Contracts of Indemnity

Simply put, a contract of indemnity is any agreement whereby one party agrees to indemnify, or pay, the other party for certain types of loss. Depending on the contract, those losses could be caused by the party promising to pay or by any other individual. The most common type of

contracts of indemnity are insurance contracts. For instance, in an automobile insurance contract, the insurance company promises to indemnify (or pay) the insured for any losses he suffers as a result of automobile accidents. Contracts of Guarantee

In a contract of guarantee, or contract of guaranty, one party agrees to act on behalf of another should that second party default. In plain terms, this means that if an individual fails to pay her guaranteed debt or to perform some other duty or obligation, the guarantor -- the party who has agreed to act on behalf of another -- will step in to pay or perform the obligation. Common contracts of guarantee include a loan with a co-signer and a student loan, where the government guarantees payment if the student should default.

3) What is Partnership? Briefly state special features of a partnership on the basis of which its existence can be determined under the Indian Partnership Act?

Definitions of Partnership. A partnership is an association of two at more persons to carry on as co owners of a business and to share its profits and losses. Section 4 of the Partnership Act defines partnership as “the relation between persons who have agreed to share the profits of a business carried on by all or any one of them acting for all.” „Persons who have entered into partnership with one another are called individual partners and collectively a firm and the name under which their business is carried on is called the firm name”. Chief Features of a Firm. The salient features of partnership are as under 1. Formation According to the Partnership Act of 1932, there is no special mode for the creation of a partnership. If persons between 2 and 20 enter Into agreement oral or verbal for carrying on a business, with a private gain, then partnership is formed (10 in case of banking business). To avoid misunderstanding, it is desirable that the articles of partnership be prepared in writing with legal assistance. The articles of partnership should cover the rights, duties, obligations and the arrangements which the parties have mutually agreed upon. t is not binding for partnership to be register However, if a 1km remains unregistered, it has to face certain disabilities or disadvantages. 2. Financing The capital is made available to the firm by the partners as per terms of the agreement. It is not necessary that all the partners should contribute equally to the partnership. A person who has special skill or ability can be admitted to the partnership without any capita contribution.

3. Management In a partnership business, every partner has a right to take part in its management. The important business decisions are taken with the consent of all other partners. 4. Restriction on Transfer of Interest No partner can transfer h share to any other person without the prior consent or willingness of all other partners. 5. Unlimited Liability of Partners The liability of the partners of a firm is unlimited. If the business suffers losses end the assets of the partnership are not sufficient to meet its obligations, then the creditors may those to sue any one or all of the partners to satisfy the debt. This poses a serious handicap for the individual partners with large personal assets. He may be compelled to pay the entire debt of the partnership from his personal assets. 6. Duration The partnership is a temporary form of business ownership. It operates at the pleasure of the partners. The partnership can come to an end, if a partners leaves, dies, declared bankrupt or insane it is also dissolved by the partners by obtaining a degree from the court. 7. Taxation . If a firm is registered under the Income Tax Act, the profit of the firm is first divided among the partners and then assessed separately. In case, it is not registered within the meaning of Income Tax Act, the firm will be assessed on total profit. 8. Implied Authority Each partner is an agent of the other partners and at the same time of the firm. This is an implied authority the moment the agreement is entered into between the partners, this authority automatically comes to each of the partners. The regular acts of business such as buying, selling of goods, hiring of employees etc. by a partner is considered the act of the firm or the act of all the partners. Each partner thus is both an agent and a principal. As agents he has the capacity to bind other partners by his acts done. Each partner is principal in the sense that he is bound by the acts of other partners.

4 Distinguish between condition and warranty. State the circumstance under which a condition can be waived and treated as a warranty.

Conditions and Warranties: A stipulation in a contract of sale with reference to goods may be a condition or a warranty [Sec. 12(1)].

Condition: A condition is a stipulation which is essential to the main purpose of the contract, the breach of which gives rise to a right to treat the contract as repudiated [Sec. 12(2)]. Thus, a condition is regarded as the very basis or foundation of the contract. If there is a breach of a condition, the contract will fail and it will entitle the aggrieved party to put an end to the contract. Example: B asked a car dealer to suggest him a suitable car for touring purposes. The dealer suggested to buy a "Buggatti" car. B accordingly purchased the car but found it unfit for the purpose. Held, the suitability of the car for touring purposes was so important that its non-fulfdment defeated the very purpose. Hence B could return the car and get back the price [Baldry v. Marshal. Warranty: A warranty is a stipulation collateral to the main purpose of the contract. The breach of which gives rise to a claim for damages but not a right to reject the goods and treat the contract as repudiated [Sec. 12(3)]. A warranty is not regarded as the very basis of a contract or its foundation. Hence a breach of warranty does not give the aggrieved party, a right to reject the goods and repudiate the contract. The party will have to accept the goods but can claim damages for breach of warranty. It should be noted that whether a stipulation in a contract of sale is a condition or a warranty depends in each case on the construction of the contract. A stipulation may be a condition, though called a warranty in the contract and vice-versa [Sec. 12(4)]. When a breach of condition is to be treated as a breach of warranty? The law has provided two cases, one optional and the other compulsory. (i) Optional or Voluntary Waiver: When a contract of sale is subject to any condition to be fulfilled by the seller, the buyer has the option to treat the breach of condition as a breach of warranty. In such a case, he may (a) waive the condition altogether, or (b) treat the breach of the condition as a breach of warranty and claim damages [Sec. 13(1)]. It should be noted that this option once exercised becomes final and the party later on cannot insist on the fulfillment of the condition. (ii) Compulsory treatment of breach of condition as a breach of warranty [Sec. 13(2)]: Where a contract of sale is not severable and the buyer has accepted the goods or a part thereof, the breach of condition can only be treated as a breach of warranty and the goods cannot be rejected unless there is a term of the contract, express or implied, to that effect. The buyer cannot reject the goods but can only claim damages. Here law compulsorily treats a breach of condition as a branch of warranty. Example: Certain goods were sold by sample by A to B, who in turn sold them by sample to C. The goods were not found according to the sample. C rejected the goods and gave a notice to B. B sued A. Held, C could reject the goods but not B, as B had accepted the goods by selling them to C. Hence C can get the price back but B cannot get the refund. B can claim damages for a breach of condition as a breach of warranty [Hardy & Co. v. Hillerns and Fowler],

5) “A cheque is a bill of exchange drawn on a banker”. Comment.
A cheque is a Bill of Exchange drawn on a specified banker and not expressed to be payable otherwise than on demand. The maker of a cheque is called the 'drawer', and the person directed to pay is the 'drawee'. The person named in the instrument, to whom or to whose order the money is, by the instrument directed, to be paid, is called the 'payee'. A cheque is a Negotiable Instrument, which can be further negotiated by means of endorsement and is payable on demand. A cheque payable to bearer is negotiable by the delivery thereof, and when it is payable to order is negotiable by the holder by endorsement and delivery thereof. A cheque has to be presented for payment by the payee or holder to the acceptor, maker or drawer. A cheque payment is a debit transaction as the transaction regarding the payment of a cheque is initiated by the payee or beneficiary. . A cheque is not cash, as it does not assume the finality of payment. The funds may not be available with the drawer or the drawer may have withdrawn funds from his bank account in the interim leading to the possibility of the cheque being dishonoured on presentation. In addition, the banks levy a collection charge based on postal costs as well as the value of the cheque in case of outstation cheques. It takes time to realise the proceeds of a cheque payment, especially if the cheque is an outstation one. For these reasons, the cheque is not always acceptable in several business transactions particularly where the drawer and the payee are notknown to each other. In many commercial transactions, the sellers of goods and services prefer to have a payment instrument where the sum of money payable to the payee is guaranteed. The demand draft is one such instrument.

6) Write short note on a. Digital signature b. Prospectus

Digital signature
A digital signature authenticates electronic documents in a similar manner a handwritten signature authenticates printed documents. This signature cannot be forged and it asserts that a named person wrote or otherwise agreed to the document to which the signature is attached. The recipient of a digitally signed message can verify that the message originated from the person whose signature is attached to the document and that the message has not been altered either intentionally or accidentally since it was signed. Also, the signer of a document cannot later disown it by claiming that the signature was forged. In other words, digital signatures enable the “authentication” and “nonrepudiation” of digital messages, assuring the recipient of a digital message of both the identity of the sender and the integrity of the message. A digital signature is issued by a Certification Authority (CA) and is signed with the CA’s private key. A digital signature typically contains the: Owner’s public key, the Owner’s name, Expiration date of the public key, the Name of the issuer (the CA that issued the Digital ID), Serial number of the digital signature, and the digital signature of the issuer. Digital signatures deploy the Public Key Infrastructure (PKI) technology. If you file electronically using digital signature you do not have to submit a physical copy of the return. Even if you do not have a digital signature, you can still e-File the returns. However, you must also physically submit the printed copy of the filled up Form along with the copy of the Provisional Acknowledgement Number of your e-Return.

India is one of the select band of nations that has the Digital Signature Legislation in place. This Act grants digital signatures that have been issued by a licensed Certifying Authority in India the same status as a physical signature. Digital signatures deploy the Public Key Infrastructure (PKI) technology

After the receipt of certificate of incorporation, if the promoters of a public limited company wishes to issue shares to the public, he will issue a document called prospectus. It is an invitation to the public to subscribe to the share capital of the company. The companies Act, 1956 defines prospectus as any document described or issued as a prospectus and include any notice, circular, advertisement or other documents inviting deposits from the public or inviting offer from the public for the subscription of shares. It is circulated among the public in printed pamphlets. It gives all necessary information about the company so that the prospective shareholders may fully understand the objectives and the plans of the company. Objectives: Prospectus is issued with the following broad objectives:
    

It informs the company about the formation of a new company. It serves as a written evidence about the terms and conditions of issue of shares or debentures of a company. It induces the investors to invest in the shares and debentures of the company. It describes the nature, extent and future prospectus of the company. It maintains all authentic records on the issue and make the directors liable for the misstatement in the prospectus. Contents: The following important matter are included in the prospectus:

          

The prospectus contains the main objectives of the company, the name and addresses of the signatories of the memorandum of association and the number of shares held by them. The name, addresses and occupation of directors and managing directors. The number and classes of shares and debentures issued. The qualification share of directors and the interest of directors for the promotion of company. The number, description and the document of shares or debentures which within the two preceding years have been agreed to be issed other than cash. The name and addresses of the vendors of any property acquired by the company and the amount paid or to be paid. particulars about the directors, secretaries and the treasures and their remuneration. The amount for the minimum subscription. If the company carrying on business, the length of time of such businesses. The estimated amount of preliminary expenses. Name and address of the auditors, bankers and solicitors of the company.

  

Time and place where copies of balance sheets, profits and loss account and the auditors report may be inspected. The auditor's report so submitted must deal with the profit and loss of the company for each year of five financial years immediately preceding the issue of prospectus. If any profit or reserve has been capitalized, the particulars of such capitalization will be stated in the prospectus.

Sign up to vote on this title
UsefulNot useful