BUSINESS LAW

UNDERSTANDING THE BASICS OF BUSINESS LAW

Submitted By:KIRAN KUMAR JENA

SUBMITTED TO:Asset. Prof. Smita Ray

  Month of submission;Jan 2021

             ASSIGNMENT  :-1

1. What is business Law?

ANS:- Business law encompasses all of the laws that dictate how to form and run a business. This includes all of the laws that govern how to start, buy, manage and close or sell and any type of business.

2. Define the term (i) Agreement (ii) Contract.

ANS:- In an agreement, one person offers or proposes something to another person, who in turn accepts the same. In other words, offer plus  acceptance amounts to the agreement, or we can say that an accepted proposal is an agreement.

 Contract Act is one of the central laws that regulate and oversee all the business wherever there is a case of a deal or an agreement. The following section will tell us what a contract is.

3. Write note on : (a) Valid Contract (b) Void Agreement (c) Illegal Agreement.

ANS:- (a) Valid Contract:

A contract which satisfies all the conditions prescribed by law is a valid contract.

(b) Void Agreement:

A contract which cases to be enforceable by law becomes void when it ceases to be enforceable, OR a void contract is a contract which is valid when entered into but which subsequently became void due to impossibility of performance, change of law or some other reason.

• 1] 1] Agreement in Restraint of Marriage. Any agreement that restrains the marriage of a major (adult) is a void agreement. ... 2] Agreement in Restraint of Trade. ... 3] Agreement in Restraint of Legal Proceedings. ... 4] An Agreement Whose Meaning is Uncertain. ... 5] Wagering Agreement.

(c) Contract:

Contract Act is one of the central laws that regulate and oversee all the business wherever there is a case of a deal or an agreement. The following section will tell us what a contract is.

 

4. Distinguish between an offer and an invitation offer.

ANS:- An offer is made when a person shows a willingness to enter into a legally binding contract. An invitation to treat (I.T.T) is merely a supply of information to tempt a person into making an offer. However the distinction between the two can often be misleading and ultimately misinterpreted.

5. What is an offer? State the essential of valid offer.

ANS:-Offer and acceptance are generally recognised as essential requirements for the formation of a contract, and analysis of their operation is a traditional approach in contract law. 

An offer is a conditional proposal made by a buyer or seller to buy or sell an asset, which becomes legally binding if accepted. 

Essential of a valid offer:-

• Offer must be communicated :-

Communication of offer is the most primary thing which is to be done for a valid offer. The offeror must communicate offer to the offeree. The communication can be either in oral or written form.

• Must create legal relationship:-

A valid offer creates a legal relationship which means there must be an intention of the offeror to work under legal obligation or to be legally bounded by law not under social obligation.

• It may be general or specific in nature:-

The offer can be given to public at large in general by advertisement in newspaper etc. or it can be given specific person too.

6. What are salient feature of a company?

ANS:- 

• Class action suits for Shareholders

• Cross Border Mergers

• Increase in number of Shareholder

• More power for Shareholders

• Women empowerment in the corporate sector

• Corporate social  responsibility

• National company law tribunal

• Fast track mergers

• Limit on maximum partners

• One person company

• Electronic mode

7. State the differences between a partnership firm and a company.

ANS:-  (A) A partnership is created by the express or implied agreement of the parties, and requires no formalities, through it is common to have a written agreement. A company can be created only by certain prescribed methods- most commonly by registration under the Companies Act 1985.

(B) Although in scotland a partnership has a separate legal personality by virtue of s.4(2) of the Partnership Act 1890, this is much more limited than the personality conferred on companies. A company is an artificial legal person distinct from its members.

(C) A partnership must have at least two members and has an upper limit of 20. A company can have as little as one member and there is no upper limit on membership.

(D) A partner cannot transfer his share of the partnership without the consent of all the other partners. Shares in a company are normally transferable.

8. Discuss the relationship between the Article and the Memorandum of Association of a company. 

ANS:-  Memorandum is the charter of the company. It describes the constitution of the company and defines the scope of its activities and powers. Articles lay down the rules and regulations to manage its affairs. Articles of a company are subordinate to the provisions of the Memorandum.

Memorandum contains the area beyond which company cannot go; within that area the shareholders may make such regulations for their internal working as they think fit. Articles can be used to explain the objects laid down by the Memorandum, but never to extend them. They cannot modify the provisions of the Memorandum.

 1. Both these documents are subordinate to the Companies Act.

2. Both these documents are public

c documents. Members of the company and outsiders can inspect them and can purchase a copy of them by playing the prescribed fee in the office of the Registrar.

3.The Memorandum can modify the terms of the Articles.