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BCA 3 rd Sem Subject: Business Laws - I Unit Number Unit points Page Number Unit 1 • Indian Contract Act 1872: Meaning and Definition of Agreement and Contract, Features of Contract Act, Types of Contract, Essentials of valid contract, Offer and Acceptance, Breach of Contract Unit-II Sell of Goods Act 1930: Meaning and Important Definition - Sell of Goods Act, Agreement to sell vs. Contract of sell, Essentials of valid contract of sell, Condition and Warranty, Sell by Auction and Hire Purchase Agreement, Buyers and Sellers Rights and Duties. 2 to 9 Unit 2 • Sell of Goods Act 1930: Meaning and Important Definition - Sell of Goods Act, Agreement to sell vs. Contract of sell, Essentials of valid contract of sell, Condition and Warranty, Sell by Auction and Hire Purchase Agreement, Buyers and Sellers Rights and Duties. 10 to 14 Unit 3 (^) • Negotiable Instrument Act 1881 : Concept and Important definition of Act, Promissory Note and Cheque, Characteristics of the Act, Dishonor of Negotiable Instrument, Discharge of Negotiable Instrument, Bills of Exchange. 15 to 2 1 Unit 4 (^) • Consumer Protection Act (Amended Act 2002): Meaning and Important Definition Of Act, Significance of Consumer Protection, Objectives of the Act, Working of Consumer Protection Council, Composition of consumer disputes redressal agencies. 22 to 25 Unit 5 (^) • Cyber and IT Act 2000: Important Definition - IT Act 2000, Cyber Fraud and Cyber Cheating. Copy right - Meaning and Definition, License of the Copy Right, Digital Signature, Digital Signature. Certificate 26 to 30
Unit 1
Indian Contract Act 1872:
The Indian Contract Act, 1872 is an act that governs the laws relating to contracts in India. A contract is an agreement between two or more parties that creates legal obligations between them. In this unit, we will discuss the meaning and definition of agreement and contract, the features of the Contract Act, types of contracts, essentials of a valid contract, offer and acceptance, and breach of contract.
- Meaning and Definition of Agreement and Contract: An agreement is a meeting of the minds between two or more parties, resulting in mutual understanding or consent on the same thing or subject. A contract is a legally binding agreement between two or more parties, where they promise to do or refrain from doing a specific act.
- Types of Contracts: There are several types of contracts, including: a. Express contract: A contract where the terms are explicitly stated and agreed upon by both parties. b. Implied contract: A contract that is not explicitly stated but is implied by the conduct of the parties. c. Void contract: A contract that is not enforceable by law and has no legal effect. d. Voidable contract: A contract that is enforceable but can be voided by one of the parties due to a defect in the formation of the contract. e. Unilateral contract: A contract where one party promises to do something in exchange for the other party's performance. f. Bilateral contract: A contract where both parties promise to perform certain acts.
- Essentials of Valid Contract: For a contract to be valid, it must have the following essentials: a. Offer and acceptance: There must be a valid offer and acceptance. b. Legal capacity: The parties must have the legal capacity to enter into the agreement. c. Free consent: The parties must give their consent freely and without coercion. d. Lawful object: The object of the contract must be lawful. e. Consideration: There must be a valid exchange of something of value between the parties. f. Certainty and possibility of performance: The terms of the contract must be certain, and the performance of the contract must be possible.
unilateral, and bilateral contracts. Here's a more detailed look at each type:
- Express Contract: An express contract is a type of contract in which the terms of the agreement are explicitly stated and agreed upon by both parties. This can be done in writing, orally, or through conduct. For example, if you hire a contractor to do some work for you, and you agree on the price and scope of the work, you have entered into an express contract.
- Implied Contract: An implied contract is a type of contract that is not explicitly stated but is inferred by the conduct of the parties involved. This can happen when one party provides goods or services to another party, and the other party accepts them without any explicit agreement. For example, if you go to a restaurant and order food, an implied contract is created between you and
the restaurant owner that you will pay for the food that you ordered.
- Void Contract: A void contract is a type of contract that is not enforceable by law, and it has no legal effect. A contract can be void for several reasons, such as being contrary to public policy, involving illegal activities, or being entered into by parties who lack the legal capacity to enter into a contract. For example, a contract to commit a crime is void because it is against public policy.
- Voidable Contract: A voidable contract is a type of contract that is enforceable, but it can be voided by one of the parties due to a defect in the formation of the contract. This can happen when one party was induced to enter into the contract due to fraud, undue influence, or coercion. For example, if a person signs a contract under duress, they can later claim that the contract is voidable.
- Unilateral Contract: A unilateral contract is a type of contract where one party promises
Unit 2
Sale of Goods Act, 1930:
- Meaning and important definitions: The Sale of Goods Act, 1930 is a comprehensive legislation that governs the sale of goods in India. The Act defines goods as every kind of movable property other than actionable claims and money. It also defines a seller as a person who sells or agrees to sell goods, and a buyer as a person who buys or agrees to buy goods. Additionally, the Act defines important terms such as price, delivery, and transfer of property in order to provide a clear understanding of the provisions of the Act.
- Agreement to sell vs. Contract of sale: An agreement to sell is a preliminary stage in the formation of a contract of sale. It refers to a situation where the parties have agreed on the terms of the sale, but the transfer of ownership has not yet taken place. A
contract of sale, on the other hand, is a contract where the transfer of ownership of the goods from the seller to the buyer takes place. This distinction is important because the rights and obligations of the parties differ depending on whether there is an agreement to sell or a contract of sale.
- Essentials of a valid contract of sale: The Sale of Goods Act lays down certain essentials that must be present in a valid contract of sale. These essentials include mutual agreement between the parties, transfer of ownership, price, and delivery. Mutual agreement refers to a situation where both the buyer and seller have agreed on the terms of the sale. Transfer of ownership means that the seller must transfer the ownership of the goods to the buyer. The price must be agreed upon by the parties, and delivery must be made in accordance with the terms of the contract.
of the goods being sold, and the highest bidder is usually required to pay a deposit to secure the sale.
- Hire purchase agreement: A hire purchase agreement is a type of agreement where the buyer hires goods from the seller, with an option to purchase the goods at the end of the hire period. The Sale of Goods Act contains specific provisions relating to hire purchase agreements, such as the requirement for a written agreement and the right of the buyer to terminate the agreement. Additionally, the seller must provide clear information regarding the goods being hired and the terms of the agreement.
- Buyers and sellers' rights and duties: The Sale of Goods Act lays down the rights and duties of both buyers and sellers. For example, the seller has a duty to deliver the goods and a right to receive payment for the goods. The buyer has a right to receive
the goods and a duty to accept and pay for them. Additionally, the Act provides remedies for breaches of contract, such as the right to claim damages or to terminate the contract.
- Holder in Due Course: A person who has acquired a negotiable instrument for value and without notice of any defect in title.
- Negotiability: The characteristic of a negotiable instrument that allows it to be transferred from one person to another by endorsement or delivery. II. Promissory Note and Cheque A. Promissory Note
- A promissory note is a written promise to pay a certain sum of money to a specified person or to the bearer of the note.
- It is a negotiable instrument because it can be transferred by endorsement or delivery. B. Cheque
- A cheque is a written order to a bank to pay a certain sum of money to a specified person or to the bearer of the cheque.
- It is also a negotiable instrument and can be transferred by endorsement or delivery.
III. Characteristics of the Act A. Based on the Principle of Negotiability
- The Act is based on the principle of negotiability, which means that a negotiable instrument can be transferred from one person to another.
- This principle facilitates the free flow of credit and commerce. B. Provides for Rights and Obligations
- The Act provides for the rights and obligations of parties involved in the transfer of negotiable instruments, such as the holder and the holder in due course.
- This ensures that the rights of the parties are protected and that there is clarity in the transfer process. C. Provides for Consequences of Dishonor
- The Act provides for the consequences of dishonor of a negotiable instrument, such as liability for damages.
V. Discharge of Negotiable Instrument A. Definition
- Discharge of a negotiable instrument refers to the release of the parties from their obligations under the instrument.
- It can occur through payment, cancellation, or release of the instrument. B. Rules Governing Discharge
- The Negotiable Instrument Act provides for the rules governing discharge of a negotiable instrument, such as the effect of payment or cancellation on the liability of the parties involved.
- These rules ensure that the discharge of a negotiable instrument is carried out in a legally valid manner. VI. Bills of Exchange A. Definition
- A bill of exchange is a written order from one person to another, directing the latter
to pay a certain sum of money to a third person.
- It is a negotiable instrument that can be transferred by endorsement or delivery. B. Essentials of a Bill of Exchange
- The Act provides for the essentials of a bill of exchange, such as the need for a certain sum of money to be paid, the presence of an unconditional order to pay, and the inclusion of the name of the payee.
- These essentials ensure that the bill of exchange is legally valid and enforceable. C. Rights and Obligations of Parties
- The Act provides for the rights and obligations of parties involved in a bill of exchange, such as the drawer, drawee, and payee.
- This ensures that the transfer of the bill of exchange is carried out in a legally valid manner and that the rights of the parties are protected.
