Business law encompass all of the laws that state how to form and run a business. This includes all of the laws that manage how to start, buy, run and close or sell any type of business. Business laws start the rules that all businesses should follow. A businessperson will be generally familiar with business laws and know when to seek the advice of a licensed lawyer. Business law includes state as well as administrative regulations. Let’s take a look at some of the areas included under the business law.
Unit 1 Indian Contract Act, 1872 – Part I
The Indian Contract Act, 1872 is the most important branch of law. It talks about the creation of contracts in business and commercial transactions. It says that the promises made by the parties are legally binding on them. A contract creates rights and obligations-between the parties entering into a contract. A contract is the law of those agreements, which create obligations and those obligations, which have their sources in agreements. The Indian Contract Act of 1872 is the most important part of business or Mercantile Law because every business or commercial transaction basically starts from an agreement The Indian Contract Act of 1872 came into force from 1 st day of and it extends to the whole of India except the State of Jammu and Kashmir.
Unit 2 Indian Contract Act, 1872 – Part II
The first unit deals with the creation of a contract, its nature and classification. The second unit states that beside all essential elements, the object of the contract must be lawful. This unit speaks about agreements, which are not enforceable by law. Such agreements are called void agreements. Some agreements are dependent on the happening and not happening of an event. The second unit also covers termination of contract by performance and other ways.
Unit 3 Special Types of Contracts
Contract of Indemnity, Contract of Guarantee, Contract of Bailment, Contract of Pledge and Contract of Agency are considered as special contracts. Contract of indemnity is really a part of general class of contingent contracts. It is entered into with the object of protecting the promisee against anticipat loss. We must know that contract of guarantee have special significance in t business of banking as a means to ensure safety of the funds lent to the customers? Bailment means a legal relation that arises whenever one person delivers possession personal property to another person under an agreement by which the later is under an obligation to return the property to the former.
Unit 4 Partnership Act, 1932
The Indian Partnership Act, 1932 (Act IX of 1932) applies to partnership created by agreement between parties. The Act is not retrospective; it does m effect any right, title, interest, obligation or liability acquired or incurred before the Act came into operation in 1932 (Section 74). The Act is not exhaustive. does not apply to join Hindu Family Firms. In this unit, the Indian Partnership Act, 1932 is referred to as IPA.
Unit 5 Sale of Goods Act, 1930
The law relating to sale of movable goods is contained in the Sale Goods Act, 1930 (SAG). This Act extends to the whole of India except the s of Jammu and Kashmir. It was originally known as the Indian Sale of G Act, but the word ‘Indian’ was dropped in 1963 by amending the Act prop The law relating to the sale of goods is now enacted in a separate 1 but the general provisions of the Indian Contract Act of 1872 are applied contracts for the sales of goods so far as they are not inconsistent with express provision of the Sale of Goods Act of 1930. The sale of goods is the most common of all commercial contracts. It very essential for all classes of the society to have the basic knowledge or main principles and provisions of Sale of Goods Act.
Unit 6 The Negotiable Instruments Act, 1881
The law relating to negotiable instruments is the most important law in the mercantile world. The Negotiable Instruments Act, 1881 apply and extends to the whole of India. Nothing contained in the Act affects provisions of Section 31 of the Reserve Bank of India Act, 1934 (RBI). Act came into force on the first day of March 1882. The Act has been amend as many as twenty three times as per requirements since its enactment and t latest amendment was done in 2002. This Act as amended by “The Negotiable Instruments (Amendment and Miscellaneous Provisions) Act, 2002 has be made applicable with effect from 6th February, 2003. The Negotiable Instruments Act of 1881 deals with promissory no bills of exchange, cheques and hundreds unless a special local usage is set and proved. The Act is divided into three chapters. Part I is General, Part II de with penalties for dishonor of cheques Part III deals with Summary proceed on Negotiable Instruments.
Unit 7 The Consumer Protection Act, 1986
About two decades back, United Nations adopted important guideline for protection of consumer’s interest on 9th April, 1985 and all the country were expected to take suitable legislative measures. Accordingly, the In Legislature passed The Consumer Protection Bill, 1986 for better protection interest of consumers. The ‘Consumer Protection Act’ came into force in tl whole of India except in the State of Jammu and Kashmir on 15th April, 19 A consumer is one of the important components of an economy as exhibits his important role both on the demand as well as on the supply sir All economic activities are carried on because of the fundamental existential of consumer’s demands. Thus, consumers influence various economic by business activities through their consumption role. Therefore, a consumer considered as a king in today’s market. Many times consumers are cheated therefore they need some sort of legal protection. For that purpose, certain Ac have been passed and the Consumer Protection Act of 1986 is one of them.
Unit 8 Company Act, 1956
The law relating to businesses such as companies and partnerships regulates important areas of daily life, and allows you to see that there is a connection between the law and the way in which people think and behave when running a business. It allows you to consider the implications of creating a legal framework which regulates aspects of daily life, for example, questions may arise as to how far the law should regulate the way in which businesses operate, or whether the law in a particular area is adequate (e.g. does the present law on shareholders do enough to protect people who invest their money in companies in this way.
Summary in all units– Self-Assessment Questions in all units–Answers to Check your Progress in all units–Suggested Reading in all units, also include in BUSINESS LAW NOTES PGDBA program.