Business
Legislation
by Prof. S. Mitra
INTRODUCTION
Meaning of Law:
 Law is the command of the Sovereign
 There are three essential features of law
Rule of Law:
 Equality of all person before law
Sources of Law
 Law originates from Sovereign
 Law originates from God
 Origin of Hindu Law
 Origin of Muslim Law
 Origin of Christian Law
Sources of Indian Law
1. Primary Sources of law
Customs, Legislature etc.
1. Secondary sources of law
Common law
Law of Merchants
Mercantile or Business
Law
Rule relating to Industry, Trade
and Commerce
Includes laws like Partnership,
Negotiable Instruments etc.
SOURCES OF BUSINESS LAW:
English Mercantile law
Judicial decisions etc.
LAW OF CONTRACT
 Meaning of the term contract
 Essential elements of contract
 Offer, Acceptance, Consideration, Lawful
object, Certainty, Possibility to perform,
Free consent, Capacity to contract etc.
 Different types of Contract – Valid, Void,
Voidable etc.
 Difference between Agreement & Contract
Termination or
Discharge of Contract
Methods of termination of contract
By performance
By mutual consent
By lapse of time
By breach of contract
Breach of Contract
•Meaning of breach of contract and
the types of breach of contract
•Remedies for breach of contract
o Suit for damage
o Suit upon Quantum Meruit
o Suit for damage
Contract of Indemnity
 This is a special type of contract
 Section 124 defines the term
“Contract of Indemnity”
 Two parties are: Indemnifier &
Indemnified
 Akin to to contract of Insurance
Contract of Guarantee
 Section 126 of the Indian Contract Act,
1872 defines the term “Contract of
Guarantee”
 Three parties are Creditor, Principal
Debtor & Surety
 Difference between Contract of
Indemnity & Contract of Guarantee
Sale of Goods Act, 1930
• Essential elements of the Contract
of Sale : Price, Goods, Two parties,
Transfer of ownership, Elements
of valid contract
• Difference between
Agreement to Sale
Sale
&
Conditions & Warranties
 Section 12(2) and Section 12(3) of Sale
of Goods Act defines the terms
Conditions & Warranties
 Features of Implied conditions &
Implied warranties
 Concepts of a) Passing of property in
the goods, b) Caveat Emptor, c) Nemo
dat quod non habet
Unpaid Seller
 Section 54(3) of Sale of Goods Act
defines the term “Unpaid Seller”
 The rights of Unpaid Seller are :
a) Against the goods &
b) Against the buyer personally
Negotiable Instruments
Act
 Negotiable means “transferable” and
Instrument means “written document”
 Essentials of NI are: Freely
transferable, Presumption, Title of
holder in due course free from all
defects etc.
 Parties to NI (Cheque, Bill of Exchange
& Promissory Notes)
Cheque
 Meaning of cheque,
 Parties to Cheque,
 Crossing of Cheque,
 Dishonor of cheque and its
consequences,
 Relation between Banker &
Customer
Consumer Protection
Act(CPA)
 Objects of the Act
 Rights of the Consumers
 Important definitions like
Consumer, Complaint,
Complainant, Defect in goods,
Deficiency in service etc.
Authorities under the
CPA
 Central & State Consumer
Disputes Settlement Councils
 Three-tier Quasi-Judicial
Consumer Disputes Redressal
Agencies (CDRA)
CPA
 Composition, Jurisdiction of
District Forum, State Commission
& National Commission
 Appeal & Penalties under the Act
LAW OF PARTNERSHIP
• Definition of Partnership U/s 4 of
Partnership Act, 1932
• Formation of Partnership
• Partnership Deed
• Whether Registration of Partnership is
mandatory?
• Rights & Liabilities of Partners
• Dissolution of partnership
Information
Technology Act 2000
• The objectives of the Act:
 to provide legal recognition for transactions
 to facilitate electronic filing of documents
• Important definitions:
Digital signature, Digital Signature Certificate,
Electronic records, Information, E-governance
• Acknowledgement and dispatch of electronic
records
• Duties of Subscribers
• Cyber crimes (Offences) & penalties thereof
Intellectual Property
Rights (IPRs)
 IPRs include: Patents; Trademarks & Copyrights.
 Patents – means the exclusive privilege granted by
the sovereign authority to an inventor with
respect to his invention – The Act provides
specified remedies for infringement in the form of
injunction.
 Trademarks – A trademark is a visual symbol in
the form of a word, device or a label and that is
applied to article of commerce for distinction
purpose
IPRs
Copyright: It is a property right
which exists in certain specified
types of work
 It protects original or creative works
like poetry, video games, paintings,
recorded music performances,
choreography, designs
The Shops and
Establishment Act
 It is a State legislation and each
state can frame its own rules.
 The object of this Act is to provide
statutory obligations and rights to
employees and employers of
Shops & establishments.
Fair Trade Practices
 Every aspects of business is guided by
certain trade practice norms;
 If these norms are complied with by the
business people, the benefit would not
only accrue to them but also to the
community at large.
 This has got a relevancy with the term
Unfair Trade Practices as defined U/s 36A
of MRTP Act 1969.