MB0035 - Legal Aspects of Business - 4 Credits
MB0035 - Legal Aspects of Business - 4 Credits
Q1. ‘All contracts are agreements but all agreements are not contracts.’ Discuss.
All contracts are agreements but all agreements need not be contracts.
The agreements that create legal obligations only are contracts. The
validity of an enforceable agreement depends upon whether the
agreement satisfies the essential requirements laid down in the Act.
Section 10 lays down that all the agreements are contracts if they are
made by the free consent of the parties competent to contract for a
lawful object and are not hereby expressly declared to be void.
Q2. ‘Not all persons have the capacity to enter into a contract.’ Discuss this statement.
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agreement. Law does not infringe his freedom of making an agreement
with anybody he likes. But by declaring certain classes of persons
having no contractual capacity, law seeks to protect their interests
from being exploited by unscrupulous persons.
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contract has refused to perform or disabled himself form performing,
his promise in its entirety, the promise may put an end to the
contract, unless he has signed, by words or conduct his acquiescence
in its continuance.
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contract with a minor in which the surety is liable not only as
surety but also as principal debtor. A person of unsound mind or
an undischarged insolvent cannot give a valid guarantee.
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at or after maturity if it has not been paid or satisfied. A payment
before maturity does not stop negotiability. The acceptor or maker who
receives the instrument after payment but before maturity may reissue
it.
Q6. Why do you think an agreement to take a person to moon for a holiday cannot be a
contract?
An agreement to take a person to moon for a holiday cannot be
contract. Because of acceptance whether a person is willing to accept
or not. According to Sec. 2(b) when the person to whom the proposal is
made signifies his willingness thereto the proposal is said to be
accepted. A proposal, when accepted, becomes a promise.
As in the above case, there is no willingness to accept the proposal.
Hence, there is no promise.
By accepting the offer, the acceptor expresses his willingness to be
bound by the terms and conditions of the offer. An acceptance turns
the offer into a binding obligation.
Spring 2010(Jan-June)
Master of Business Administration- MBA Semester 3
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Documents to be filed for registration: After ascertaining the
availability of name, the promoter should proceed to prepare the
following documents and file with the Registrar of companies.
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Q2. Describe in detail the clauses in the Memorandum of Association.
• The Capital Clause: It states the amount of the capital and the
way in which it is to be divided into shares.
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• Where the law requires the signature, digital signature satisfies
the requirement.
Consumer means any person who a) Buys any goods for a consideration
which has been paid or promised, or party paid and partly promised, or
under a system a system of deferred payment. B) Hires any services for
a consideration which has been paid or promised, or partly paid and
partly promised, or under a system of deferred payment ie. In respect
of hire-purchase, transactions.
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Consumer protection act, 1986 seeks to provide for better protection
of the interests of consumers. This act seeks, inter alia, to promote
and protect the basic rights of consumers such as:
• Opening and Closing Hours of Shops : No shops shall on any day be opened
earlier or closed later than such hours as fixed by the State
Government. Any customer who was being served or was waiting to
be served in any shop at the hour fixed for its closing may be
served during the quarter or an hour immediately following such
an hour.
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persons work for any period in excess of the time limit fixed, he
is entitled to overtime wages.
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