Introduction to Business Law &

Business Environment (legal)

1
 What is Business?
Business is an enterprise
which provides the things
society needs in order to
survive, enjoy and improve
material and social well being.
It undertakes the productive
utilization of the resources of
society.
It leads to innovation and
improvement in production
processes.

2
 Business and Its Environment
Business is an open system.
Business shares a symbiotic relationship with its
environment.
The business environment is divided into different
segments.

3
Various segments of Environment

4
 What Is Law?
Law means any rule of conduct,
standard or pattern, to which
actions are required to confirm
and if we talk of law of state,
“ it is the body of rules whether
proceeding from formal
enactment or from customs,
which a particular state
recognizes as binding on its
subjects and members.

5
Business Laws
Business law is also termed as commercial Law
and mercantile law.
Business law is generally used to denote that
portion of law which deals with rights and
obligations arising out of transactions between
mercantile persons.

6
Cont…..
The term appears to be a convenient way of
grouping together the laws that should be regarded
important for men in business.
It includes following laws:
 Law of contracts

 Sales of goods act

 Partnership act

 Company law

 Negotiable instrument act

 Insurance act

7
 Functions of Law
Keeping the peace
Shaping moral standards
Promoting social justice
Maintaining the status quo
Facilitating orderly change
Providing a basis for compromise
Maximizing individual freedom

8
 Introduction To
Contract Act 1972
9
Contract Act 1972
What is contract?
Sec 2(h) of the act defines the contract as:
“A contract is an agreement, creating and defining
the obligations between parties”.
“Every agreement and promise enforceable by law
is a contract”

Contract= Agreement+ Enforceability

10
What is an Agreement?
Agreement= Offer+ Acceptance
 An agreement takes place when an offer is made by
one person is accepted by the other.
All agreements are not contracts but all contracts are
agreements. (Balfour v/s Balfour)
Agreement

Enforceable at Law Unenforceable at Law

Contracts Not Contracts

11
Essentials of a contract
Offer and Acceptance
Intention to create a legal relation.
Consensus ad idems.
Lawful consideration
Competency of parties.
Free consent
Lawful object
Agreement not declared as void
Possibility of performance
Completion of legal formalities

12
 Classification of Contracts

Validity or
Formation Performance
Enforceability

Valid Contracts
Executed Contracts
Void Contracts
Express Contracts Executory Contracts
Void Agreement
Implied Contracts Bilateral Contracts
Voidable Contracts
Quasi contracts Unilateral Contracts
Unforceable Contracts

13