Category: Trade

Essential elements of a valid contract in business law are explained below:According to Sec. 10, “All agreements are contract if they are made by the free consent of parties competent to contract for a lawful consideration and with a lawful object and are not expressly declared to be void.”Thus, Sections 2(h) and 10 of the Act state that there are some essential elements of a valid contract. If any of these elements is not satisfied by an agreement, it will affect the validity and will not form a valid contract. Image Source: 185.26.182.219 ADVERTISEMENTS: On analysing the contents of Sec. 10. It is revealed that the following are the essentials of a valid contract:-1. Offer and acceptance.2. Legal relationship. ADVERTISEMENTS: 3. Consensus-ad-idem.4. Competency of parties.5. Free consent.6. Lawful consideration. ADVERTISEMENTS:…

Some of the agreements which are opposed to public policy are as given ahead:- Agreements 1. Agreements trading with enemy: An agreement made with an alien enemy in times of war, if it helps or aids the economy of the enemy country will be opposed to public policy and so unlawful. The contracts which have been entered into before the outbreak of war are either suspended or dissolved. Image Source: delawareemploymentlawblog.com 2. Agreements interfering with course of justice: Use of improper influence of any kind on the judges or officers of justice is unlawful. 3. Agreements in restraints of legal proceedings: Under Section 23, “If a party to an agreement is restricted absolutely from enforcing his rights or in respect of any contract, by the usual legal proceedings in the…

Important rules relating to time, place and manner of performance are given below:So far as the time and place of performance of a contract is concerned, it must be agreed upon by the parties to the contract themselves. Sections 46 to 50 lay down rules in this regard. Rules 1. Performance within a reasonable time (Sec. 46): Sec. 46 states that “Whereby the contract, a promisor is to perform his promise without application by the promisee and no time for performance is specified, the engagement must be performed within a reasonable time.”What is a “reasonable time?” is a question of fact. It depends upon the circumstances of the case, the usage of trade or the intention of the parties at the time of entering into the contract. Image Source: anizaima.files.wordpress.comExample:Supply…

1. Named principal:When the agent contracts as agent for a name principal, the principal is:(a) Bound by all the acts of the agent. ADVERTISEMENTS: (b) Liable when the agent exceeds his authority(c) Bound by the notice. Image Source: southingtonschools.org 2. Unnamed principal: In this case the principal will be liable for the contract made by the agent unless there is a trade custom making the agents personally liable. 3. Undisclosed principal: The agent become personally liable and can be sue and be sued in his own name. Personal Liability of Agent: The general rule is that an agent cannot be made personally liable for the contracts entered into by him on behalf of his principal; neither is he personally bound by them.The circumstances under which an agent is personally liable…

Parts of Letter 1. Heading: The heading which is also known as ‘head address’ or ‘letter head’ contains information relating to the name of the organisation and its address. It is usually given at the top centre or top right side of the paper. Following information are provided in the heading. Image Source: images.slideplayer.comThe firm’s name, addresses, trade mark, telephone number, telex number E-mail address, date etc. 2. Reference number: He number which the receiver refers in all future correspondence is called Reference Number. It is usually printed below the date line or on the same line where the date is written to the right margin. ADVERTISEMENTS: The purpose of reference number is to enable replies to be linked with (he previous correspondence and to send replies to these letters…

The modern age has provided us with many wonderful inventions and discoveries of science. The world has changed tremendously by its contributions in every walk of life. It has increased the comforts and made domestic life easy giving men more time for leisure.Industries are giving finer and greater number of outputs in lesser time. It has also helped in boosting the agricultural yields and preserving the same over a longer period of time. With the use of various machines, equipments and gadgets, trade and business has accelerated.Electricity in itself is a great wonder of science. It is the essence of mechanical functioning. Communication is made quick and easy by various instruments and travelling has become comfortable by the use of variety of vehicles on land and seas as well as…

Responsibilities of a Businessman 1. The Iron Law of Responsibility: The institution of business exists only because it performs invaluable services for society. Society gives business its charter to exist and the charter can be amended or revoked at any time if it fails to live upto society’s expectations.Therefore, if business intends to retain its existing social role and social power, it must respond to society’s needs constructively.This is called the Iron Law of Responsibility which is that in the long run, those who do not use power in a manner which society considers responsible will tend to lose it. Image Source: romanpichler.com ADVERTISEMENTS: Though the long-run may require decades or even centuries in some instances, history seems to confirm that society ultimately acts to reduce the power of those…

500 words essay on Monsoon, Blizzard and Earthquake. We talk of wind, monsoon, blizzard, earthquake etc. But we do not know how they are caused.There are different kinds of wind. There are regular trade winds. They are the steady currents of air blowing towards the equator from the northeast and the southwest. The trade winds are of great help to the sailing ships which trade between one country and another. There are periodical winds blowing at certain seasons e.g. monsoon in summer. Due to the high temperature over the land masses the pressure is low and thus wind blows from the sea to the land, bringing much rain. Then there are cyclones and other local winds. ADVERTISEMENTS: A blizzard is a blinding storm of snow and wind which is common…

Games and sports are an important part of education. In the past there was no provision for them in Indian schools and colleges.But now no educational institution is complete without some arrangement for different games and sports.Games and sports have many advantages. They improve health and help in building up a good body. As games are played in the open air, the body gets plenty of sunshine and fresh air. ADVERTISEMENTS: The value of good health is well expressed in the proverb-“A sound mind in a sound body”. Hockey, football and other games provide better health than walks can Games have another advantage.They develop a spirit of comrade­ship. Students do not play for themselves only but for the team as a whole. Thus a sportsman develops a broad outlook and…

Press (newspaper) occupies an important place in our society. It plays a significant role in making the destiny of a nation.A newspaper in the present time makes us familiar with the up-date current events of our nation. It also brings news of the world and the news of the masses to us. It tells us the general opinion of the public through Readers’ Col­umns, articles and suggestions.Press enjoys great powers in the society. Press comments and criticizes the laws and working of the Government’s affairs. It also sug­gests important amendments. Image Source: fttoolkit.co.uk ADVERTISEMENTS: Press educates the people’s mind on legal, educational, historical, economic, political and social topics. It makes democracy a true success by rightly directing the public.Press is one of the important means of communication and a channel…