24Oct 2018 by Reese Bannister

11 Essential Elements of a “Promissory Note” (With Specimen)

Currency
“A promissory note is an instrument in writing (not being a bank note or a currency note) containing an unconditional undertaking signed by the maker, to pay a certain sum of money only to, or to order of a certain person, or to the bearer of the instrument.”The person who makes the promise to pay is called the Maker. He is the debtor and must sign the instrument. The person who will get the money (the creditor) is called Payee. Image Source: 2.bp.blogspot.com Essential Elements: ADVERTISEMENTS: From the definition given in the Act it is apparent that the following essential requirements must be fulfilled by an instrument intended to be a promissory note:1. The instrument must be in writing.2. The instrument must be signed by the maker of it. A…
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24Oct 2018 by Reese Bannister

9 Essential Elements of a Bill of Exchange (With Specimens)

Currency
“A Bill of Exchange is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of a certain person or to the bearer of the instrument.” The maker of a bill of exchange is called the Drawer. The person who is directed to pay is called the Drawee. The person who will receive the money is called the Payee. When the payee has custody of the bill, he is called the Holder. It is the holder’s duty to present the bill to the drawee for his acceptance. The drawee signifies his acceptance by signing on the bill. After such signature the drawee becomes the Acceptor.In a bill of exchange sometimes the…
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24Oct 2018 by Reese Bannister

What is the difference between “Open Cheques” and “Closed Cheques”

Fashion
There are two types of cheques: Open Cheques and Crossed Cheques.An open cheque is one which is payable in cash across the counter of the bank.A crossed cheque is one which has two short parallel lines marked across its face. ADVERTISEMENTS: A cheque marked in this fashion can be paid only to another banker. Naturally it will not be paid at the counter. The system of crossing cheque arose by mercantile usage and was later on sanctioned by law.The advantage of crossing is that it reduces the danger of unauthorised persons getting possession of a cheque and cashing it. A crossed cheque can only be cashed through a bank of which the payee of the cheque is a customer. Image Source: freestockimgs.comThere are different modes of crossing a cheque. The…
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24Oct 2018 by Reese Bannister

7 Most Important Silent Features of the Consumer Protection Act, 1986 (India)

Trade
Important Salient Features of the Consumer Protection Act, 1986 are given below:1. The Act provides speedy redressal to consumer complainants. The Bill provides for setting up of a Consumer Redressal Forum in every district, a commission at the state level and the National Commission at the Centre. The Forum in the District will have original jurisdiction to redress complaints up to claim of Rs. 1 lakh (after amendment up to 10 lakhs).The State Commission will be original jurisdiction to settle claims up to the amount Rs. 10 lakhs (after amendment 20 lakhs). The National Commission can entertain any claim for damages above Rs. 10 lakhs (after amendment above 20 lakhs). The State Commission will be vested with appropriate Appellate and Revisional powers. ADVERTISEMENTS: 2. To promote voluntary consumer movement and…
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24Oct 2018 by Reese Bannister

Brief Notes on “Breach of a Condition”, “Implied Condition” and “Warranties”?

Trade
1. Condition is a term which is essential to the main purpose of the contract. Warranty is only a collateral term. It is subsidiary to the main purpose of the contract.2. Breach of a condition gives the aggrieved party a right to repudiate the contract. It also creates a right to get damages. Breach of warranty entitles the aggrieved party to claim damages only.3. A breach of condition may under certain circumstances, be treated as a warranty. But a warranty cannot become a condition. Image Source: alarabrecruiting.com Implied Condition and Warranties: ADVERTISEMENTS: A stipulation (or term) in a contract of sale of goods may be express or implied. Express terms are those which have been expressly agreed upon by the parties. Implied terms are those which have been enacted in…
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24Oct 2018 by Reese Bannister

9 Essential Features of Negotiable Instruments (Negotiable Instruments Act, 1881)

Essays
Essential Features of Negotiable Instruments are given below: 1. Writing and Signature: Negotiable Instruments must be written and signed by the parties according to the rules relating to Promissory Notes, Bills of Exchange and Cheques. Demand Drafts are also construel as Negotiable Instruments in the limiting case as they have the same property as N.I. Instrumes. 2. Money: ADVERTISEMENTS: Negotiable instruments are payable by legal tender money of India. The liabilities of the parties of Negotiable Instruments are fixed and determined in terms of legal tender money. 3. Negotiability: Negotiable Instruments can be transferred from one person to another by a simple process. In the case of bearer instruments, delivery to the transferee is sufficient. In the case of order instruments two things are required for a valid transfer: endorsement…
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24Oct 2018 by Reese Bannister

Objectives, Composition and Functions of the Central and State Consumers Protection Council (India)

Marketing
The Consumer Protection Act, 1986 sought to provide better protection to the interests of the consumers and for that purpose made provisions for the establishment of Consumer Protection Councils and other authorities for resolving consumers’ disputes. The Consumer Protection Councils would be set up at national and state levels (Section 6 of Consumer Protection Act)The objects of the Central Consumers Protection Council and State Consumers Protection Councils are to promote and protect the rights of the consumers, such as: (a) The right to be protected against marketing of goods and services which are hazardous to life and property. ADVERTISEMENTS: (b) The right to be informed about the quality, quantity, potency, purity, standard and price of goods or services as the case may be so as to protect the consumer against…
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24Oct 2018 by Reese Bannister

5 Main Criticisms of Malthusian Theory of Population

Industry
The theory of Malthus produced a great controversy. Most of the leading economists of his times accepted it. But there were critics who thought that the theory was too pessimistic.Nowadays it is believed that the theory contains elements of the truth but that it is an oversimplification of the problem of population growth.The main criticisms levelled against the theory are summarised below: 1. Growth formulas not correct and oversimplified: ADVERTISEMENTS: The mathematical formulas regarding food supply and population growth are not correct. This criticism is beside the point because Malthus used the formulae only as examples to illustrate the dissimilar and unrelated nature of the growth of population and food supply. 2. The effects of additional population: Malthus failed to consider that the additional increments of population are also capable…
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24Oct 2018 by Reese Bannister

4 Stages of Demographic Transition Theory – Explained!

Traditions
Four stages of the Demographic Transition Theory: 1. High Birth Rate of High Death Rate, 2. Rapidly Falling Death Rate & High Birth Rate, 3. Sharply Falling Birth Rate and Low Death Rate, 4. Low Birth Rate and Low Death Rate. 1. High Stationary: High Birth Rate of High Death Rate: The first stage is characterised by high birth rate & high death rate, giving a low growth rate of population. This stage is associated with undeveloped, low output and agricultural dominated conditions.Death rate is high during this stage for a number of reasons. Firstly, people are poor and they cannot afford adequate and balanced diet with the result that they have poor health and they are more prone to diseases. Secondly, living conditions of the people are miserable sanction…
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24Oct 2018 by Reese Bannister

14 Main Disadvantages of “Market Mechanism”

Investment
Disadvantages of Market Mechanism are given below:(i) There is as much evidence of market failure as there is of failure in state intervention. Both market and government are imperfect alternatives. ADVERTISEMENTS: (ii) Market can only serve those who are part of the market system. It is a good servant but a bad master.(iii) Market forces lead to sometimes misallocation of present and future resources or at least to one which may not be in the best long-run social interest, as the process fails to take care of priorities. Image Source: omahainsurancesolutions.com(iv) Market mechanism fails to provide a proper guideline for using appropriate material for selecting project. It diverts investment to those directions in which profits are high, neglecting socially desirable low profit ventures.(v) Do not bring competition in fullest sense.…
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