legal enviorment of business

7/30/2019 Legal Enviorment of Business

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1. Proposal

2. Promise

3. Agreement

4. Consent

5. Consensus idem

6. Communication

7. Competancy

8. Lawful consideration

9. Lawful object

10. Law should not prohibit such contract



OPERATION PORTION

• Consideration how much? How to be paid? Where? To

whom?• Default – effect viz. majeure force majeure

• Penalty

• Form for redress

• Arbitration clause

• Duties and taxes

• Guarantee & warranty

• Speed discount

• After sales services

• Any other conditions



RECITAL PORTION

• Date of execution

• Place of execution

• Names of the parties

• Their address

• Offeror and acceptor

• Nominee details

• Attesting witness

• Verification clause



1. Right to sell or transfer

2. Right of possession and delivery

3. Exclusive use and enjoyment

4. Right to create a pledge

5. Right to create a charge

6. Right to hypothecate7. Right to give license to others to use

8. Right to gift



DOCUMENTS FOR HYPOTHECATION

Borrower to give to the lender

1. Tom give properties as securities (without

possession)

2. To assign the right to sell in favour of the lender

3. Promisory note

4. Affidavit cum indemnity binding the L.R. too

5. Post dated cheques

6. Insurance policy to be taken for the advanced

amount

7. If necessary a letter of undertaking.



Parties Individual Firm Company

II Competency Partnershipdeed

Memorandumarticle

Solvency Registered

partners

details

Board resolution

Surety Implied

authority

Surety

Post datedcheque

Post datedcheque

Post dated cheque

Insurance Insurance

surety

Insurance



COMPONENTS OF A CONTRACT

CONTRACT

Agreements

Whichsurrender rights

Which assignrights

whichcreate,define,protect,and preserve right

and obligations(contract act)

Obligation

Social TortiousCompromise

decreeQuasi

contract

legal

obligation



DRAFT AGREEMANT

1. In a non – judicial stamp paper

2. Written after the date of purchase of stamps papers



CLASSIFICATION OF CONTRACT

CONTRACT

Validity

1.Valid contract 2(h)

2.Void agreement 2 (g)

3.Voidable contract 2 (i)4.Void contract 2 (j)

5.Unenforceable agreement

6. Unlawful agreement7.Illegal agreement

Formation

Express: oral or written tacit

Implied

Performance

1.Executedcontract

2.Executorycontract

3.Unilateralcontract.

4. Bilateralcontract



CLASSIFICATION OF LAW

LAW

Substantive law

Private

law

Contractact

Sales of goods act

Transfer of property

act

Public lawconstitutio

n

Personallaw

Christianmuslim

andhindulaw

Adjectival (or)

Procedural law

civil procedure

Criminal procedure

evidence



THANK YOU

legal enviorment of business

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