[Short Answer Type]
1. Sources of Business Law
Business law is a body of law that governs commercial and business activities. The main sources of business law are:
- Statute Law (Legislation): These are laws enacted by the legislature. They are the most significant source of business law and cover areas such as company law, contract law, intellectual property, and labor law. An example is the Indian Contract Act, 1872, which governs contracts and agreements in business.
- Common Law (Case Law): Decisions made by courts in previous cases set precedents that guide future cases. Courts often apply these legal principles to new business-related disputes.
- Customary Law: These are practices and norms that have developed over time in business practices, recognized by courts if they are not inconsistent with statutory law.
- International Law and Treaties: As businesses often operate across borders, international laws and agreements between nations (e.g., trade treaties) also influence business laws.
- Administrative Regulations: Various government agencies create rules that affect business operations. For instance, the Securities and Exchange Commission (SEC) regulates businesses in financial markets.
2. Wagering Agreement
A wagering agreement is an agreement in which two parties agree that one will win or lose based on the outcome of a future event, with no intention of creating a legal relationship or exchange of goods or services.
- Legal Status: Wagering agreements are void and unenforceable under Section 30 of the Indian Contract Act, 1872, meaning that they are not recognized by law. For example, betting on a sports event where no real contract or exchange of value takes place.
- Example: If person A bets person B that a certain horse will win a race, and person A loses the bet, the contract is void in legal terms, and person A cannot seek legal remedies to recover the wagered amount.
3. Goods Sent on Sale or Return
When goods are sent on sale or return basis, the ownership of goods is transferred to the buyer only after the buyer decides to accept the goods. The goods are sent with the agreement that they may be returned within a specified time if the buyer does not wish to purchase them.
- Legal Implications: According to Section 24 of the Sale of Goods Act, 1930, the sale is not completed until the buyer either accepts the goods or does not return them within the agreed time.
- Example: A furniture shop might send a batch of chairs to a retailer on sale or return, and the retailer may choose to return the chairs if they do not sell them, without the transaction being completed.
4. Geographical Indicator (GI)
A Geographical Indicator (GI) is a name or sign used on products that correspond to a specific geographical location or origin. GIs serve as a certification that the product has unique qualities or enjoys a certain reputation due to its geographical origin.
- Examples of GIs: Darjeeling Tea, Kashmir Pashmina, and Basmati Rice are some examples of products protected by geographical indications.
- Legal Protection: Under the Geographical Indications of Goods (Registration and Protection) Act, 1999, products with GI tags are legally protected, preventing unauthorized use of the product names.
5. E-Governance
E-Governance refers to the use of information and communication technology (ICT) to deliver government services and interact with citizens, businesses, and other stakeholders.
- Key Features:
- Transparency: E-governance systems help reduce corruption by promoting transparency.
- Efficiency: Online applications and services speed up government processes and make them more accessible.
- Accessibility: Citizens can access services from their homes, such as filing taxes, applying for permits, or accessing social security.
- Example: In India, initiatives like the Digital India campaign promote e-governance, such as e-filing of income tax returns, e-passports, and other digital services.
6. Lapse of an Offer
An offer lapses (or becomes void) when certain conditions are not met within a specified time frame. The conditions under which an offer can lapse include:
- Rejection: If the offeree rejects the offer, it cannot be accepted later.
- Revocation: The offeror can withdraw the offer before it is accepted.
- Expiry of Time: If the offer is made for a specific time period, and that period passes without acceptance, the offer lapses.
- Death or Insanity: If either the offeror or offeree dies or becomes mentally unsound, the offer automatically lapses.
- Example: If A offers to sell a car to B for $10,000, and B does not respond for two weeks, the offer lapses after the time period expires.
7. Void Agreement
A void agreement is an agreement that is not enforceable by law because it lacks one or more essential elements required for a valid contract.
- Examples of Void Agreements:
- Agreement with a Minor: A contract entered into by a minor is void.
- Agreement for Illegal Activities: A contract to commit a crime, like a contract to smuggle goods, is void.
- Agreement with Unlawful Consideration: Contracts that involve unlawful objectives (such as a contract for gambling or illegal trade) are void.
- Legal Implication: A void agreement has no legal effect, and neither party can claim damages for breach.
8. Cyber Crime
Cyber crime refers to illegal activities that are conducted using computers or the internet. It involves the misuse of technology to commit various offenses, such as hacking, identity theft, or online fraud.
- Examples:
- Phishing: Fraudulent attempts to obtain sensitive information like usernames, passwords, or credit card details.
- Cyberbullying: Using digital platforms to harass or intimidate someone.
- Data Breach: Unauthorized access or disclosure of confidential information from a system or network.
- Legal Framework: In India, cyber crimes are governed under the Information Technology Act, 2000, which defines and penalizes offenses like hacking, identity theft, and cyberstalking.
[Essay Answer Type]
9 a) i) “Acceptance is to Offer is what a lighted match is to a train of Gunpowder” – Comment.
This famous analogy highlights the significance of acceptance in a contract. Just as a lighted match will ignite a train of gunpowder, acceptance of an offer will activate or “ignite” the creation of a contract. In other words, an offer, when accepted, leads to the formation of a binding agreement. Without acceptance, there is no contract, just like a match without being lit will not cause an explosion. Acceptance is the crucial step in transitioning from an offer to an enforceable contract.
9 a) ii) Mr. D started “Cash and Carry system” in his shop. Mrs. S entered the shop, took a basket, and after taking articles of her choice into the basket, reached the cashier for payments. The cashier refused to accept the price. Decide.
In the “Cash and Carry” system, goods are offered for sale, and the transaction is completed only when payment is made at the counter. This is a typical example of an invitation to treat rather than an offer. Mrs. S, by selecting the items, is making an offer to purchase. The cashier is not obliged to accept the offer; they can refuse the sale. Under contract law, the agreement is formed when the offer is accepted by the seller, and if the cashier refuses payment, no contract is formed.
9 b) i) Define the term “Consideration”. State the Exceptions to the rule “No Consideration – Not Contract”.
Consideration refers to something of value that is exchanged between parties in a contract. It can be in the form of money, services, goods, or promises. It is one of the essential elements required for a contract to be legally binding.
Exceptions to the Rule “No Consideration – No Contract”:
- Natural Love and Affection (Section 25): A gift made out of natural love and affection between close relatives is enforceable even without consideration.
- Contract for Past Consideration: A promise made after the performance of an act that was not initially undertaken for a contract (like a promise to pay for a past service) can be enforceable in some cases.
- Charitable Subscriptions: Promises made to contribute to a charity are enforceable even without consideration.
- Completed Gifts: If a gift is completed, the donor cannot revoke it, even without consideration.
9 b) ii) An employee was induced by his employer to sell his Bike to the latter at less than the purchase price to provide an incentive in lieu of his effort. Accordingly, the Bike was sold. Can the father of the employee sue the employer?
Since the transaction was between the employee and the employer, the employer’s offer of an incentive (reduced price for the bike) was directed toward the employee. The employee voluntarily accepted the offer, and the transaction was completed. The father of the employee cannot sue the employer as the contract was between the employer and the employee. The father has no direct involvement in the contract. Any legal rights arising from the transaction belong to the employee, not his father.
10 a) i) Define Contingent Contract. What are the rules relating to Contingent Contract?
A Contingent Contract is a contract whose performance depends on the happening of a specific event in the future. The contract is not binding unless the event happens.
Rules of Contingent Contracts (Section 31 of the Indian Contract Act):
- The contract must be contingent upon an uncertain event, i.e., the event is not yet decided.
- The event must be lawful, meaning it cannot involve illegal activities.
- If the event is impossible or illegal, the contract becomes void.
- The event must be future-oriented; the event has not yet occurred at the time of forming the contract.
10 a) ii) Kishore promised to pay a certain sum of money to Mahesh on the return of a specified ship within a year. The ship sank into the sea. Kishore wants to set aside the promise to pay. Can he succeed?
Kishore’s promise to pay Mahesh is contingent on the specific event—the return of the ship. Since the ship has sunk and the event (the return of the ship) has become impossible, the contract becomes void under Section 56 of the Indian Contract Act, 1872. Therefore, Kishore can successfully set aside the promise to pay as the performance of the contract is no longer possible due to the destruction of the subject matter (the ship).
10 b) i) What do you understand by Discharge of a Contract? What are the various modes of Discharge of Contract?
Discharge of a Contract refers to the termination of the contractual obligations, releasing the parties from further performance.
Modes of Discharge of Contract:
- Performance: Fulfillment of the terms of the contract by both parties.
- Agreement: Parties may mutually agree to discharge a contract, even before its performance (e.g., by cancellation or novation).
- Breach of Contract: When one party fails to perform, the other party is entitled to terminate the contract.
- Frustration/Impossibility: A contract is discharged when the performance becomes impossible or illegal due to unforeseen circumstances.
- Operation of Law: This includes discharge by insolvency, merger, or death of a party (if personal).
- Novation: Substitution of a new contract in place of an old one.
10 b) ii) A, B, and C jointly borrowed a sum of money from ‘X’. ‘A’ suddenly dies, whether his legal representative ‘L’ would be liable to repay along with ‘B’ and ‘C’ or not?
Since the loan was taken jointly by A, B, and C, the liability of repayment is joint and several. The death of one party (A) does not absolve the legal representative of the deceased (L) from liability. The legal representative of A, L, will be liable to repay the debt along with B and C, but they can seek a proportionate contribution from the estate of the deceased borrower (A).
11 a) i) What is Contract of Sale? Distinguish between Sale and Agreement to Sell.
A Contract of Sale is an agreement where the ownership of goods is transferred from the seller to the buyer for a price.
Difference between Sale and Agreement to Sell:
- Sale: The transfer of ownership of goods takes place immediately. Once the contract is concluded, the risk passes to the buyer.
- Agreement to Sell: The transfer of ownership will take place in the future, subject to the fulfillment of certain conditions. The ownership and risk do not pass until the conditions are met.
11 a) ii) ‘P’ contracts to sell to ‘A’ a piece of cotton, P thinks that it is Indian Cotton. P knows that Q thinks so, but knows that it is not Indian Cotton. Q discovers that it is not Indian Cotton. Can he repudiate the Contract?
Yes, Q can repudiate the contract. This constitutes fraud, as P deliberately misled Q into thinking the cotton was of a particular origin. Under the Indian Contract Act, 1872, a contract entered into under fraud or misrepresentation is voidable. Q has the right to cancel the contract and seek a remedy for the misrepresentation.
11 b) i) Who is not a Consumer? What are the Redressal Agencies of Consumer Protection Act?
Not a Consumer: A person is not considered a consumer if the goods or services are purchased for resale or for commercial purposes. A person buying goods for personal use is a consumer, but if the goods are bought for business or resale, they are not a consumer under the Consumer Protection Act, 2019.
Redressal Agencies:
- District Consumer Disputes Redressal Commission (District Forum)
- State Consumer Disputes Redressal Commission (State Forum)
- National Consumer Disputes Redressal Commission (National Forum)
11 b) ii) ‘A’ wanted to watch a movie in a Multiplex, left his car in the “GHMC Parking” after having paid Rs. 50 and got a ‘car park ticket’. Later he found that the car had been stolen by someone. Can he claim the loss from GHMC?
Yes, A can claim the loss. The GHMC parking facility is considered a service provider, and by issuing a parking ticket, they are responsible for ensuring the security of the vehicle. Since the vehicle was stolen from their premises, GHMC is liable for the loss under the Consumer Protection Act, unless they can prove that they took reasonable measures to ensure the safety of the vehicle.
12 a) What is Trademark? How Trademark can be Protected?
A Trademark is a sign capable of distinguishing the goods or services of one enterprise from those of other enterprises. It can be a word, name, symbol, logo, or other distinctive features.
Protection of Trademarks:
- Registration: The trademark must be registered under the Trade Marks Act, 1999 to gain protection.
- Use: Trademarks that are used continuously and consistently in the marketplace are protected.
- Legal Action: If infringement occurs, the trademark holder can take legal action through civil and criminal courts.
12 b) What is Patent? What are different kinds of Patents? Explain.
A Patent is a form of intellectual property that grants exclusive rights to an inventor for a specific period, usually 20 years, for their invention.
Types of Patents:
- Utility Patents: Protect inventions of new processes, machines, or compositions of matter.
- Design Patents: Protect new, original, and ornamental designs for articles of manufacture.
- Plant Patents: Protect new varieties of plants that have been asexually reproduced.
13 a) What are the Objectives of the Information Technology Act? Explain the Penalties and Adjudication of Violation of the provisions of Information Technology Act.
Objectives of the Information Technology Act, 2000:
- To provide legal recognition to electronic records and digital signatures.
- To facilitate e-commerce and e-governance by providing a legal framework.
- To address cybercrimes and related offenses.
- To promote the safe use of information technology.
Penalties and Adjudication:
- Penalties: Penalties include fines and imprisonment for offenses like hacking, identity theft, and data breaches.
- Adjudication: The Act provides for adjudicating officers and Cyber Appellate Tribunals to resolve disputes and penalize violators.
13 b) What is the Scope of Environmental Protection Act? What are the General Powers of the Central Government?
The Environmental Protection Act, 1986, aims to protect and improve the environment by controlling pollution and promoting sustainable development.
Scope:
- Regulates industrial emissions and discharges.
- Provides for environmental standards for air, water, and soil.
- Empowers the government to take action on environmental issues.
General Powers of the Central Government:
- Issue environmental protection guidelines.
- Establish standards for environmental quality.
- Take action against polluting industries or activities.
- Prevent environmental damage caused by hazardous substances.