Indian Business Law Essentials: Contracts, Sales, Partnerships, Companies
Law of Contract: Core Principles and Remedies
Definition of Contract (Section 2(h))
A contract is an agreement enforceable by law.
Essential Features of a Valid Contract (Section 10)
- Offer and Acceptance – Must be lawful and absolute.
- Intention to Create Legal Relationship – Parties must intend legal consequences.
- Lawful Consideration – Something in return must be legal.
- Capacity of Parties – Parties must be competent (age, sound mind, not disqualified).
- Free Consent – Consent must be given freely
Land Freight Contract: Parties, Terms, and Liabilities
Land Freight Transport Contract
A land freight transport contract is an agreement where one party (the carrier) undertakes, in exchange for a fee paid by the shipper, to transfer goods from one place to another and make them available to the person designated in the contract (the consignee).
Contract Elements
Parties Involved
- Carrier: Assumes the obligation to perform the transport in their own name, using their own transport facilities or those of others. There may be multiple carriers involved.
- Shipper
Understanding Partnership Essentials: Types, Dissolution, and LLP Act
Essentials of Partnership
Meaning and Definition: Section 4 of the Partnership Act 1932 defines partnership as “the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all.”
Key Elements of a Partnership
- Two or More Persons: There must be at least two persons to form a partnership. A person cannot enter into partnership with themselves. The maximum number of persons in a partnership should not exceed 10 in the case of banking business
Understanding Different Types of Business Partnerships
Soc Collective
A Soc Collective is a type of partnership where the partners have unlimited liability and are severally liable for the obligations of the society. The main features are:
- The directors of the company are all the partners, one or more of them, or a delegated third party.
- The name is formed by the name of all partners or any of them followed by the word “and Company.”
- The responsibility that affects the partners is unlimited. The partners are accountable for the obligations of the society
Understanding Partnerships, Limited Partnerships, and Corporations
Partnerships, Limited Partnerships, and Corporations
General Partnership
A general partnership operates under a collective name, with all partners bearing joint and several unlimited liability for the partnership’s obligations.
Key Features:
- Character Personality: Membership is not transferable without the consent of all other partners.
- Title: The partnership name will include the names of all, some, or one of the partners. In the latter two cases, “& Company” must be added, along with the abbreviations
Endorsement vs. Assignment of Credit: Key Differences Explained
Endorsement vs. Assignment of Credit: Key Differences
Autonomy and Abstraction
Assignment of Credit
- As a rule, is “pro solute” but not “pro solver.”
- The originating lender is accountable to the new lender for the existence of credit.
- Enforceability exceptions are personal.
Endorsements
- Is “pro solute” and also “pro solver.”
- The originating lender responds to the endorsee for solvency.
- Unavailability of personal exceptions.