business regulatorY frame work - University of Calicut

1 business regulatorYframe workB Com/BBA2011 Admission onwardsIII SemesterCORE COURSEUNIVERSITY OF CALICUTSCHOOL OF DISTANCE EDUCATIONCALICUT , MALAPPURAM,KERALA,INDIA 673 635308business regulatorYframe workB Com/BBA2011 Admission onwardsIII SemesterCORE COURSEUNIVERSITY OF CALICUTSCHOOL OF DISTANCE EDUCATIONCALICUT , MALAPPURAM,KERALA,INDIA 673 635308business regulatorYframe workB Com/BBA2011 Admission onwardsIII SemesterCORE COURSEUNIVERSITY OF CALICUTSCHOOL OF DISTANCE EDUCATIONCALICUT , MALAPPURAM,KERALA,INDIA 673 635308 School of Distance EducationBusiness regulatorY frame WorkPage2 University OF CALICUTSCHOOL OF DISTANCE EDUCATIONSTUDY MATERIALB Com/BBAIII SemesterCORE COURSEBUSINESS regulatorY frame WORKP repared ,Assistant Professor of Commerce,Govt College ,Associate Professor,Dept.

2 Of Commerce,Govt. College MadappallyLayout & SettingsComputer Section, SDE ReservedSchool of Distance EducationBusiness regulatorY frame WorkPage3 CONTENTSMODULE IINDIAN CONTRACT ACT 187205-29 MODULE IISPECIAL CONTRACTS30-46 MODULE IIISALE OF GOODS ACT 193047-57 MODULE IVCONSUMER PROTECTION ACT 198658 64 MODULE VCYBER LAWS IN INDIA65-75 School of Distance EducationBusiness regulatorY frame WorkPage4 School of Distance EducationBusiness regulatorY frame WorkPage5 MODULE IINDIAN CONTRACT ACT 1872 Introduction: Law is a basic necessity ofevery is the bundle of rules andprinciples to be followed by the members of the society.

3 Whenthere isa law in a country, itbrings uniformity and balance in human actions, andprovidesjustice to the aggrieved to Holland, Law is a rule of external human action enforced by the sovereignpolitical authority. In the words ofBlackstone, Law is a rule of civil conduct, prescribed by the supremepowerof state, commanding what is right and prohibiting what is wrong. INDIAN CONTRACT ACT 1872 The law relatingcontract in India iscontained in the Indian contract Act, which came in toforce on the first day of Sept 1872. The act is extended to the whole of India except the state ofJammu and Kashmir.

4 The act as it now stands contains the general principles of contract, contractof indemnity,surety ship,Bailment,and Agency. The law of contract deals with thosetransactions or promises which create legal rights and obligations. In case of non performance ofthe promise by one party, it also provides legal remedies to an aggrieved DefinitionGenerally contract may be defined as an agreement which creates rights and obligationsbetween the parties. These obligations and right s must be of such a nature that these can beclaimed in the court of to Salmond, A contract is an agreement creating and defining obligationbetween the parties.

5 Section 8(h) of the Indian Contract Act defines contract as an agreementwhich is enforceable by the above definitions of contract it is clear that a contract essentially consistsof , : Anagreement involves a valid offer by one partya valid acceptance by theother : It means contract must be legal in natureand whichcan be claimed in thecourt of example,X invitesY to a party and Y accepts the invitation, then it is only a socialagreement and not a contract. On the other hand A agrees to sell his house to B for Rs. 5, 00, is a OF CONTRACTAn agreement to be enforced in the court has to satisfy certain conditions.

6 On satisfyingthese, theagreements becomea contract, andthose conditions becomeessentials of a validcontract. The essential elements of a contractare contained in the definition of contract given insec. 10 of the contract Act. According to this Act, all agreements are contracts if they are madeby free consent of parties competent to contract for a lawful consideration and with a lawful objectand are not hereby expressly declared to be void. The essentialelements of a contract include:School of Distance EducationBusiness regulatorY frame :-There must be an agreement between the parties of a contract.

7 It involves avalid offer by one party and a valid acceptance by the other is created byoffer and acceptance. Therefore an agreement is = offer +acceptance. It is only by anagreement a contractual relation is established between the parties. For example, A sendsa proposal to B to purchase aproperty forRs. 10 lakhs and B accept the same,then thisresult into an consideration: Consideration means something in return. An agreement is legallyenforceable only when each of the parties to it give something and gets something. It maybepast,presentor future and must be real and lawful.

8 A contract without consideration isnot a contract at consideration must be legal, moral and not against public of parties: The parties to an agreement must be capable of enteringinto a validcontract. According to sec. 11, the following persons are not competent to enter in to acontract.(a)Persons of unsoundmind (Idiots, lunaticperson etc.)(b)Persons disqualified by law to which they are subject.(c )Minors(Not completedthe age of 18) consent:For the formation of a contract one person must give his consent to consent thus obtained must be a free consent. A consent is said to be free if itis not caused by coercion, undue influence,fraud,misrepresentation or mistake.

9 If theconsent is obtained by unfair means, thecontract wouldbe ad idem: It means the two parties of the contract must agree upon the subjectmatter of the contract in the same mannerand inthe same is theremust beidentity of minds among the parties regarding the subject matter of the example, A has two houses one at Calicut and another at Palakkad. He has offeredTo sellone house to B. Baccepts the offer thinking topurchase the house at Palakkad, while A, whenheoffers;he has his mind to sell the house at Calicut . So there is no consensus ad object: The object of an agreement must be lawful.

10 It must not be illegal orimmoral or opposed to public it is unlawful, the agreement becomes declared to be void: There are certain agreements which have beenexpresslydeclared void by the law. It includes:(a)Wagering agreement(b) Agreement in restraint to marriage(c )Agreement inrestraint of trade an agreement made by parties should not fall in the above and possibility of performance:-The terms of the contract must be preciseand certain. They should not be vague. The terms of agreement must becapable ofperformance. For example A agrees to sell one of his houses.