legal aspects of business mini project

7/21/2019 Legal Aspects of Business Mini Project

http://slidepdf.com/reader/full/legal-aspects-of-business-mini-project 1/14

Legal Aspects of Business

Mini Project

- Done By

Geetha. G( RA1452001010577)

Jegadesh.A ( RA1452001010572)

Sundara rajan. R (RA1452001010565)

Manoj.R (RA1452001010576)

Mohamed Isma! (RA1452001010575)

"th#a.R (RA14520010105$0)

%austa& 'rotm %aush (RA14520010105$4)

1



INDEX

S. NO OPI! Page No

1 ar&e# *s +a,e# -

2 a!man Shu!a &. Gaur /att 5

- Fisher Vs Bell

4 /,nson & /odds $

5 Raj!uh# /aee *s. hootnath

Moerjee

11

6 *od *s *oda!e 3ontra,t 12

2



"# $ar%ey %s &acey

-1$- A.3. 552. ('r&# 3oun,! o Jama,a)

&acts of t'e case#

+a,e# as n negotatons th the Ma#or and 3oun,! o %ngston

regardng the sa!e o hs store. ar&e# sent +a,e# a te!egram statng8 9()ill

you sell us Bu*per $all Pen+ elegrap' lo,est cas' price-ans,er pai(.

+a,e# re:!ed on the same da#8 (Lo,est price for Bu*per $all Pen /00.(

ar&e# then re:!ed n the o!!ong ords. ()e agree to 1uy Bu*per $all

Pen for t'e su* of nine 'unre pouns as2e 1y you. Please sen us your

title ee in orer t'at ,e *ay get early possession.(

+a,e#; hoe&er reused to se!! at that :r,e; at h,h ar&e# sued. +a,e#

su,,essu!!# deended hs a,ton at tra!; ut ar&e# a::ea!ed to the 3ourt o

A::ea!; h,h re&ersed the tra! ,ourt de,son.

Issue#

Is a statement o the mnmum :r,e at h,h a se!!er ou!d se!! an

offer?

$oling an 3ule#

"o. A mere statement o the mnmum se!!ng :r,e s an n&taton to

treat and not an oer to se!!.

<he a::e!!ants otaned !ea&e rom the Su:reme 3ourt o Jud,ature o

Jama,a to a::ea! to the =ueen n 3oun,! (.e. the 'r&# 3oun,!). <he 'r&#

3

http://en.wikipedia.org/wiki/Queen-in-Council

http://en.wikipedia.org/wiki/Queen-in-Council



3oun,! re&ersed the Su:reme 3ourt>s o:non; renstatng the tra! ,ourt>s

de,son and statng the reason or ts a,ton.

<he 'r&# 3oun,! ad&sed that no ,ontra,t e?sted eteen the to :artes. <he rst te!egram as sm:!# a re@uest or normaton; so at no stage

dd the deendant mae a dente oer that ,ou!d e a,,e:ted. ord Morrs 3

ga&e the o!!ong judgment.

In the &e ther ordsh:s tae o ths ,ase t e,omes unne,essar# to

,onsder se&era! o the deen,es :ut orard on the :art o the res:ondents; as

ther ordsh:s ,on,ur n the judgment o Mr. Just,e 3urran that there as no

,on,!uded ,ontra,t eteen the a::e!!ants and . M. +a,e# to e ,o!!e,ted rom

the aoresad te!egrams. <he rst te!egram ass to @uestons. <he rst @ueston

s as to the !!ngness o . M. +a,e# to se!! to the a::e!!antsB the se,ond

@ueston ass the !oest :r,e; and the ord 9<e!egra:hC s n ts ,o!!o,aton

addressed to that se,ond @ueston on!#. . M. +a,e# re:!ed to the se,ond

@ueston on!#; and g&es hs !oest :r,e. <he thrd te!egram rom the a::e!!ants

treats the anser o . M. +a,e# statng hs !oest :r,e as an un,ondtona!

oer to se!! to them at the :r,e named. <her ordsh:s ,annot treat the

te!egram rom . M. +a,e# as ndng hm n an# res:e,t; e?,e:t to the e?tent t

does # ts terms; &D.; the !oest :r,e. E&er#thng e!se s !et o:en; and the

re:!# te!egram rom the a::e!!ants ,annot e treated as an a,,e:tan,e o an oer

to se!! to themB t s an oer that re@ured to e a,,e:ted # . M. +a,e#. <he

,ontra,t ,ou!d on!# e ,om:!eted . M. +a,e# had a,,e:ted the a::e!!ant>s

!ast te!egram. It has een ,ontended or the a::e!!ants that . M. +a,e#>s

te!egram shou!d e read as sa#ng 9#esC to the rst @ueston :ut n the

a::e!!ants> te!egram; ut there s nothng to su::ort that ,ontenton. . M.

+a,e#>s te!egram g&es a :re,se anser to a :re,se @ueston; &D.; the :r,e.

<he ,ontra,t must a::ear # the te!egrams; hereas the a::e!!ants are o!gedto ,ontend that an a,,e:tan,e o the rst @ueston s to e m:!ed. <her

4



ordsh:s are o o:non that the mere statement o the !oest :r,e at h,h the

&endor ou!d se!! ,ontans no m:!ed ,ontra,t to se!! at that :r,e to the :ersons

mang the n@ur#. <her ordsh:s !! thereore hum!# ad&se er Majest#

that the judgment o the Su:reme 3ourt shou!d e re&ersed and the judgment o

3urran; J.; restored. <he a::e!!ants must :a# to the res:ondents the ,osts o the

a::ea! to the Su:reme 3ourt and o ths a::ea!.

!o**ents#

In the ao&e mentoned ,ase;

+rom ar&e# 1st @ueston as !!ngness to se!!; 2nd @ueston

ass the !oest :r,e.

+a,e# on!# re:!ed to the se,ond @ueston n regards to the :r,e.

ar&e# treated hs res:onse as an un,ondtona! oer to se!! them

the :r,e named. Fn!# ndng as:e,t s the !oest :r,e n regards

to a ,ontra,t eng ormed.

+a,e#>s re:!# to the te!egram as just an n&taton to trade and not an

oer.

Agreement ,ou!d ha&e F" een !egt +a,e# res:onded to the

thrd te!egram rom ar&e#.

4# Lal*an S'u2la %. 5auri Datt

H A!!ahaad gh 3ourt (1$1-) 11 AJ 4$

&acts of t'e !ase#

5



In Januar# !ast; the ne:he o Mrs. Gaur /utt as,onded rom home and

no tra,e o hm as ound. Mrs. Gaur /utt sent her ser&ants to derent :!a,es

n sear,h o the o# and among them as a!man Shu!a ho as the munm

o her rm. e as sent to ardar and mone# as g&en to hm or hs

ra!a# are and other e?:enses. Ater ths Mrs. Gaur /utt ssued hand!!s

oerng a reard o Rs. 150 to an#one ho mght nd out the o#. a!man

Shu!a tra,ed the o# to Rshesh and ound hm there. e red to Mrs. Gaur

/utt ho ent to ardar and rought the o# a, to 3an:ore. e ga&e to

a!man Shu!a a reard o to so&eregns and aterards on hs return to

3an:ore ga&e Rs. 20 more. a!man Shu!a dd not as or an# urther

:a#ment and ,ontnued n Gaur /utts ser&,e or aout s? months hen he

as dsmssed. e then rought ths sut; out o h,h ths a::!,aton arses;

,!amng Rs. 4$$ out o the amount o the reard oered # Mrs. Gaur /utt

under the hand!!s ssued # hm. <he re,ord shos that the hand!!s ere

ssued suse@uent!# to a!man Shu!as de:arture or ardar. It a::ears;

hoe&er; that some o the hand!!s ere sent to hm there.

<he ,ourt e!o ha&ng dsmssed the ,!am; ths a::!,aton or re&son has

een made # a!man Shu!a and t s ,!amed on hs eha! that as he tra,ed

out the o# he s entt!ed to the reard oered # Gaur /utt.

Mrs. Gaur /utt ,ontends that a!man Shu!a ,!am ,an on!# e mantaned on

the ass o a ,ontra,t; that there must ha&e een an a,,e:tan,e o the oer and

an assent to t; that there as no ,ontra,t eteen the :artes n ths ,ase and

that n an# ,ase a!man Shu!a as a!read# under an o!gaton to do hat he

dd and as; thereore; not entt!ed to re,o&er. Fn the other hand; t s ,ontended

on eha! o a!man Shu!a; that a :r&t# o ,ontra,t as unne,essar# and

nether mot&e nor no!edge as essenta!.

Issue#

6



1. Is t a 3ontra,t

2. Is a!man Shu!a !a!e to get the reard mone# rom Mrs. Gaur /utt

$oling an 3ule#

1. "o t s not a 3ontra,t. An agreement enor,ea!e # !a s a ,ontra,tB

Offer6 Acceptance7 Agree*ent

Agree*ent6 Enforcea1le 1y La,7 !ontract

2.A,,ordng to Indan 3ontra,t A,t 172; a!man Shu!a s not !a!e to get

aard mone# e,ause; oer g&en # Gaur dutt as not a,,e:ted # a!man

Shu!a; So Gaur /utt ound to reuse the ,!am made # a!man Shu!a

In an# o:non a sut !e the :resent one ,an on!# e ounded on a ,ontra,t. In

order to ,onsttute a ,ontra,t there must e an a,,e:tan,e o the oer and there

,an e no a,,e:tan,e un!ess there s no!edge o the oer. Mot&e s not

essenta! ut no!edge and ntenton are. In the ,ase o a :u!, ad&ertsement

oerng a reard; the :erorman,e o the a,t rases an neren,e o a,,e:tan,e.

<hs s manest rom S. o the 3ontra,t A,t; h,h :ro&des that

9'erorman,e o the ,ondtons o a :ro:osa! s an a,,e:tan,e o the :ro:osa!.C

In the :resent ,ase the ,!am ,annot e regarded as one on the ass o a

,ontra,t. a!man Shu!a as n the ser&,e o Gaur /utt. As su,h ser&ant he

as sent to sear,h or the mssng o#. It s true that t as not thn the

ordnar# s,o:e o hs dutes as a mnm to sear,h or a mssng re!at&e o hs

master ut he agreed to go to ardar n sear,h o the o# and he undertoo

that :art,u!ar dut#. eng under that o!gaton; h,h he had n,urred eore

the reard n @ueston as oered; he ,annot; n m# o:non; ,!am the reard.

<here as a!read# a susstng o!gaton and thereore; the :erorman,e o the

a,t ,annot e regarded as a ,onsderaton or Gaur /utts :romse. +or the

7



ao&e reasons ho!d that the de,son o the 3ourt e!o s rght and I dsmss

the a::!,aton th ,ost.

!o**ents#

In the ao&e mentoned ,ase;

a!man Shu!a had no no!edge aout the reard oered.

Fer and a,,e:tan,e are ,rt,a! :arts o 3ontra,ts A,t.

An a,ton thout the no!edge o the :ro:osa! s no a,,e:tan,e.

<hs !andmar ,ase s ased on the ru!e that the oer s not non at a!!

then no a,,e:tan,e to the oer s made; hen,e the oer s n&a!d and no

,om:ensaton ,an e ,!amed or the same.

3: Fisher Vs Bell

H 1$61 1 = -$4

&acts of t'e !ase#

e!! ds:!a#ed a !, ne n the ndo o hs sho: ne?t to a t,et

earng the ords Eje,tor ne K 4s. e as ,harged th oerng t or sa!e;

an oen,e under the A,t. Lnder the Restr,ton o Fens&e ea:ons A,t 1$5$;

se,ton 1(1); t as !!ega! to manua,ture; se!!; hre; or !end to an# other :erson;

amongst other thngs; an# ne h,h has a !ade h,h o:ens automat,a!!#

# hand :ressure a::!ed to a utton; s:rng or other de&,e n or atta,hed to the

hand!e o the ne. Fn 14 /e,emer 1$5$; the 3!amant; a ,he ns:e,tor o

:o!,e or,e; rought orard normaton aganst the /eendant a!!egng the

/eendant has ,ontra&ened se,ton 1(1) # oerng the !, ne or sa!e. <hs

!oo:ho!e as ,!osed # Restr,ton o Fens&e ea:ons A,t 1$61 an on

+!, %n&es8 h,h nserted ater the ords 9oers or sa!e or hreC the ords 9

or e?:oses or has n hs :ossesson or the :ur:ose o sa!e or hreC.<he ords

8

http://en.wikipedia.org/wiki/Flick_knife

http://en.wikipedia.org/w/index.php?title=Restriction_of_Offensive_Weapons_Act_1961&action=edit&redlink=1

http://en.wikipedia.org/wiki/Flick_knife

http://en.wikipedia.org/w/index.php?title=Restriction_of_Offensive_Weapons_Act_1961&action=edit&redlink=1



Noer or sa!e ere not dened n the A,t; and thereore the magstrates

,onstrued them as under the genera! !a o ,ontra,t; n h,h ,ase the

sho:ee:er had mere!# ssued an n&taton to treat.

<he ds:!a# o the ne n the ndo as ndeed on!# an n&taton to

treat; and the ne had not een oered or sa!e. <he a::ea! as dsmssed.

Issue#

1.Is the +!, ne oered or sa!e an oen,e under the A,t

$oling an 3ule#

A,,ordng to the !a o ,ontra,t the ds:!a# o an art,!e th a :r,e on t

n a sho: ndo s mere!# an n&taton to treat. It s n no sense an oer or

sa!e the a,,e:tan,e o h,h ,onsttutes a ,ontra,t.

!o**ents#

# ds:!a#ng the ne n the ndo o the sho:; t as an oer or the

:eo:!e to u#.

ut; a,,ordng to the Restr,ton o Fens&e ea:ons A,t 1$5$; t as

!!ega! to se!! a ea:on.

<he ords Noer or sa!e ere not dened n the A,t.

Fn!# the A,,e:tan,e o Sa!e as an Fen,e under the Restr,ton o

Fens&e ea:ons A,t.

<hereore Mr e!! s not gu!t# o Fen,e.

8# Dic2inson 9s Dos

9



H 176 2 3h / 46-

&acts of t'e !ase#

Fn ednesda#; June 10; 174 /odds (/) sent /,nson (') a memorandum n

h,h he agreed to se!! a s:e,ed :e,e o !and or 00 :ounds th the oer

he!d o:en unt! $AM the o!!ong +rda#. /,nson a!!eged that he had

de,ded to a,,e:t /odds oer on <hursda# mornng ut dd not ,onta,t hm

mmedate!# e,ause he thought he had unt! +rda# mornng to a,,e:t. Fn

<hursda# aternoon /,nson !earned that /odds had oered or agreed to se!!

the !and to a thrd :art#. /,nson rote a note a,,e:tng the oer and

de!&ered t to hs home; !ea&ng t th hs motherHnH!a ho neg!e,ted to g&e

the note to /odds. Fn +rda# mornng eore the orgna! dead!ne to a,,e:t the

oer; oth /,nson and hs agent ga&e /odds a rtten a,,e:tan,e o the

oer. /odds stated that he had a!read# so!d the !and to another :art# the

:re&ous da#.

/,nson sued or s:e,, :erorman,e. <he tra! ,ourt ound n

/,nsons a&or and ordered that /odds ,on&e# the :ro:ert# to hm and

/odds a::ea!ed.

Issue#

1. hether a :romse to ho!d an oer o:en s ndng here the other

:art# does not a,,e:t unt! ater he !earns that the oeror has a!read#

,on&e#ed the :ro:ert#.

$oling an 3ule#

• "o. An o:en oer to se!! termnates hen the oeree !earns that the

oeror has a!read# agreed to se!! to someone e!se.

10



<he ,ourt stated that sn,e /,nson ne that /odds oer had een

m:!,t!# thdran hen he !earned that he had so!d the :ro:ert# to someone

e!se; there as no meetng o the mnds at the tme a,,e:tan,e as made and

thereore a ndng ,ontra,t as not ormed.

!o**ents#

<he oer eteen /,nson and /odds as o:en unt! $AM the ne?t

da#.

/,nson dnt orma!!# a,,e:t the oer and ,ame to no that

/odds had agreed to se!! the !and to a thrd 'art#

<he o:en oer s termnated # the tme /,nson !earnt that the

oerer has a!read# ,on&e#ed the :ro:ert#.

:# 3ajlu2'y Da1ee 9s. B'ootnat' Mo2erjee

H AIR 1$00 3a! 3

&acts of t'e !ase#

A ndu husand hootnath Moerjee :romsed to :a# hs e Raj!uh#

/aee a ?ed sum o mone# e&er# month or her se:arate resden,e and

mantenan,e. <he agreement as ,ontaned n a regstered do,ument h,h

mentoned @uarre!s and dsagreements eteen the to.ater on he ,hanged hs

mnd and he reused to g&e her mone#. <he e !ed a ,ase aganst the

husand and ,!amed the mantenan,e amount.

Issue#

11



1. hat s the remed# a&a!a!e or the e

$oling an 3ule#

<he 3a! 3 reused to regard the agreement as one ,o&ered under the

e?,e:tons to Se,ton 25(1). <he agreement as he!d &od or ant o

,onsderaton e,ause the essenta! re@urement o natura! !o&e and

ae,ton as mssng.

It shou!d; hoe&er; e noted that mere e?sten,e o a near re!aton

eteen the :artes does not ne,essar!# m:ort natura! !o&e andae,ton. <hus here a ndu husand; ater reerrng to @uarre!s and

dsagreement eteen hm and hs e; e?e,uted a regstered do,ument

n a&our o hs e; agreeng to :a# or se:arate resden,e and

mantenan,e; t as he!d that the agreement as &od or ant o

,onsderaton e,ause t as not mere!# out o natura! !o&e; and ae,ton.

!o**ents#

<he agreement as &od or ant o ,onsderaton. e,ause at that tme

there as no :resen,e o !o&e and ae,ton to mae the ,ontra,t

ee,t&e.

;. 9oi 9s 9oia1le !ontracts

9oi !ontract#

A ,ontra,t that s &od ,annot e enor,ed # ether :art#.; <he !a

treats a &od ,ontra,t as t had ne&er een ormed. A ,ontra,t !! e

,onsdered &od; or e?am:!e; hen t re@ures one :art# to :erorm an a,t that

s m:oss!e or !!ega!.

12



9oia1le !ontract#

A &oda!e ,ontra,t; on the other hand; s a &a!d ,ontra,t and ,an e

enor,ed. Lsua!!# on!# one :art# s ound to the ,ontra,t terms n a &oda!e

,ontra,t. <he unound :art# s a!!oed to ,an,e! the ,ontra,t; h,h maes the

,ontra,t &od.

<he man deren,e eteen the to s that a &od ,ontra,t ,annot e

:erormed under the !a; h!e a &oda!e ,ontra,t ,an st!! e :erormed;

a!though the unound :art# to the ,ontra,t ,an ,hoose to &od t eore the other

:art# :erorms.

E<a*ples of 9oi an 9oia1le !ontracts+

9oi ,ontra,ts are unenor,ea!e # !a. E&en one :art# rea,hes the

agreement; #ou ,annot re,o&er an#thng e,ause essenta!!# there as no &a!d

,ontra,t. Some e?am:!es o &od ,ontra,ts n,!ude8

3ontra,ts n&o!&ng an !!ega! suje,t matter su,h as gam!ng;

:rosttuton; or ,ommttng a ,rme.

3ontra,ts entered nto # someone not menta!!# ,om:etent (menta!

!!ness or mnors).

3ontra,ts that re@ure :erormng somethng m:oss!e or de:ends on an

m:oss!e e&ent ha::enng.

3ontra,ts that are aganst :u!, :o!,# e,ause the# are too unar.

13

http://www.legalmatch.com/law-library/article/public-policy-lawyers.html

http://www.legalmatch.com/law-library/article/public-policy-lawyers.html



3ontra,ts that restran ,ertan a,t&tes (rght to ,hoose ho to marr#;

restranng !ega! :ro,eedngs; the rght to or or a !&ng; et,.).

9oia1le ,ontra,ts are &a!d agreements; ut one or oth o the :artes to

the ,ontra,t ,an &od the ,ontra,t at an# tme. As a resu!t; #ou ma# not e a!e

to enor,e a &oda!e ,ontra,t8

3ontra,ts entered nto hen one :art# as a mnor. (<he !a oten treats

mnors as though the# do not ha&e the ,a:a,t# to enter a ,ontra,t. As a

resu!t; a mnor ,an a! aa# rom a ,ontra,t at an# tme.)

3ontra,ts here one :art# as or,ed or tr,ed nto enterng t.

3ontra,ts entered hen one :art# as n,a:a,tated (drun; nsane;

de!usona!).

14

legal aspects of business mini project

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