02-03-2013, 12:47 PM
BUSINESS LAW
BUSINESS LAW[.ppt (Size: 231 KB / Downloads: 37)
Introduction
Law is set of rules
Legislator creates rules
Judge takes the decisions basing on the guiding principles
Law includes all the rules and principles which regulate relations with other individuals and with the state.
Law is a rule of human conduct and acts in society through the medium of social change.
Need
Ignorantia juris non-excusat
Ignorance of law is not excusable
Knowledge relating to law avoids conflicts
No businessmen can solve his legal problems without the expert legal advice
Characteristics
Social engineering
Habit and thought of mankind
Distant formal regulation
Uniform rules
Authority and power
Not static
Capacity of the parties
Sec 11 of Indian Contract Act, 1872 says, ‘every person is competent to contract who is of the age of majority according to the law to which he is subject and who is of sound mind and is not disqualified from contracting by any law.
Position of agreements by a minor
Minor agreements are invalid abiinitio
He always pleads minority
In case of fraudulent representation compensation will be arranged
It can not be ratified on attaining majority
Agreement of minor jointly with major: Major has to fulfill the contract,
Minor can not be a partner
Minor can act as an agent
The person dominates other when
Where he holds a real or apparent authority over the other or where he stands relation with other
Where he makes a contract with a person whose mental capacity is temporarily or permanently affected by reason of age, illness or mental or bodily distress.
Misrepresentation
It is a positive assertion, in a manner not warranted by the information of the person making it, though he beliefs it to be true.
There is no intention to deceive
Mere expression of opinion doesn’t amount to misrepresentation
Misstatement made negligently or recklessly
Misrepresentation may not direct. It is made to third person also.
Mode of performance
The promiser himself perform the contract
The death or insanity may terminate the contract
The promises may pass on to the legal representative in case of death
Personal cause of action dies with the death of person.
Promisee may however accept performance by a third party by assignment