Business Law - MMS - Consolidated - 1 Thru 6

8/3/2019 Business Law - MMS - Consolidated - 1 Thru 6

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MMS : Semester I

Session 1 & 2


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Marks Distribution

Term

ExamViva

50Marks10Marks

Project&

Presentation

40Marks


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Presentation

40 marks for each presentation 4 students in each group

Each group is suppose to make a One pager / handout about theresentation and ive out the same to the class before the

presentation starts Project will be on Re-do basis, if project / presentation is not up to

the mark, ZERO marks will be ive

Each presentation should be of 30 minutes


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,

Topic 1


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Agreement & Contract

Agreement Every promise and every set of promises, forming the

consideration for each other

Contract An agreement enforceable by law


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Essentials of a valid contact u/s 10

All agreements are contracts if

they are made by the free consent of parties

competent to contract,

or a aw u cons erat on an

with a lawful object,

and are not hereby expressly declared to be void.


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Competency to Contract u/s 11

Every person is competent to contract who is of the age of majorityaccording to the law to which he is subject, and who is sound mindand is not disqualified from contracting by any law to which he issubject.

Age of majority 18 years (21 years where there is a courtcustodian)


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Free Consent u/s 14

Consent is said to be free when it is not caused by :

coercion, as defined in section 15, or

undue influence, as defined in section 16, or

rau , as e ne n sect on , or

misrepresentation, as defined in section 18, or

mistake, subject to the provisions of section 20,21, and 22.


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Coercion

Coercion" is the committing, or threatening to commit :

any act forbidden by the Indian Penal Code, or

the unlawful detaining, or threatening to detain, any property, tothe prejudice of any person

whatever, with the intention of causing any person to enter into

an agreement.

It is immaterial whether the Indian Penal Code is or is not in force inthe place where the coercion is employed.


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Undue Influence

A contract is said to be induced by undue influence where therelations subsisting between the parties are such that :

one of the parties is in a position to dominate the will of theother

and uses that osition to obtain an unfair advanta e over theother.


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Fraud

"Fraud" means and includes any of the following acts committed bya party to a contract, or with his connivance, or by his agent, withintent to deceive another party thereto of his agent, or to induce himto enter into the contract:-

the suggestion, as a fact, of that which is not true, by one whodoes not believe it to be true ;

the active concealment of a fact by one having knowledge orbelief of the fact ;

a promise made without any intention of performing it

any other act fitted to deceive; any such act or omission as thelaw specially declares to be fraudulent.


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Misrepresentation

Misrepresentation, means and includes :

the positive assertion, in a manner not warranted by theinformation o the erson makin it, of that which is not true,though he believes it to be true

advantage to the person committing it, or any one claimingunder him, by misleading another to his prejudice or to the

re udice of an one claimin under him;

causing, however innocently, a party to an agreement to make a

the agreement.


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Illustrations

A, intending to deceive B, falsely represents that five hundred tonsof indigo are made annually at A's factory, and thereby induces B tobuy the factory. The contract is voidable at the option of B.

A fraudulently informs B that A's estate is free from incumbrance. Bthereupon buys the estate. The estate is subject to a mortgage. B mayeither avoid the contract, or may insist on its being carried out andthe mortgage debt redeemed.

B, havin discovered a vein of ore on the estate o A, ado ts meansto conceal, and does conceal, the existence of the ore from A.Through A's ignorance B is enabled to buy the estate at an under-value. The contract is voidable at the option of A.


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Void Agreements

A agrees to sell to B a specific cargo of goods supposed to be on itsway from England to Bombay. It turns out that, before the day ofthe bargain, the ship conveying the cargo had been cast away andthe goods lost. Neither party was aware of the facts. The agreements vo .

A agrees to buy from B a certain horse. It turns out that the horsewas dead at the time o the bargain, though neither party was awareof the fact. The agreement is void.

A, being entitled to an estate for the life of B, agrees to sell it to C. Bwas dead at the time of the agreement, but both parties wereignorant of the fact. The agreement is void.


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Consideration

When, at the desire of the promisor,

the promisee or any other person

has done or abstained from doing,

or oes or a sta ns rom o ng,

or promises to do or to abstain from doing,

something, such act or abstinence or promise is called aconsideration for the romise


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Illustration

A agrees to sell his house to B for 10,000 rupees. Here Bs promise topay the sum of 10,000 rupees is the consideration for As promise tosell the house, and A's promise to sell the house is the considerationfor B's promise to pay the 10,000 rupees. These are lawfulcons era ons.

A promises to pay B 1,000 rupees at the end of six months, if C, whoowes that sum to B, fails to pay it. B promises to grant time to Caccordingly. Here the promise-of each party is the consideration for

the promise of the other party and they are lawful considerations.

A promises, for a certain sum paid to him by B, to make good to Bthe value of his ship if it is wrecked on a certain voyage. Here A's

promise is the consideration for B's payment and B's payment is theconsideration for A's promise and these are lawful considerations.


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Void Agreements

Agreement void, if considerations and objects unlawful in part. Ifany part of a single consideration for one or more objects, or any oneor any part of any one of several considerations for a single object, isunlawful, the agreement is void.

A promises to superintend, on behalf of B, a legal manufacture ofindigo, and an illegal traffic in other articles. B promises to pay to Aa salary of 10,000 rupees a year. The agreement is void, the object ofA's promise, and the consideration for B's promise, being in part

unlawful.


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Illustration

A promises, for no consideration, to give to B Rs. 1,000. This is avoid agreement.

A, for natural love and affection, romises to ive his son, B, Rs.1,000. A puts his promise to B into writing and registers it. This is acontract.

A finds B's purse and gives it to him. B promises to give A Rs. 50.This is a contract.

A supports B's infant son. B promises to pay A's expenses in sodoing. This is a contract.

A owes B Rs. 1,000, but the debt is barred by the Limitation Act. Asigns a written promise to pay B Rs. 500 on account of the debt. This

.


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Illustrations

A agrees to sell a horse worth Rs. 1,000 for Rs. 10. As consent to theagreement was freely given. The agreement is a contractnotwithstanding the inadequacy of the consideration.

A agrees to sell a horse worth Rs. 1,000 for Rs. 10. A denies that hisconsent to the agreement was freely given. The inadequacy of theconsideration is a fact which the Court should take into account inconsidering whether or not A's consent was freely given.


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Void Agreements

Agreement in Restrain of Trade

Agreement in Restrain of Marriage

Agreement in Restrain of Legal Proceedings

greement y way o ager


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Contingent Contract

A "contingent contract" is a contract to do or not to do something, ifsome event, collateral to such contract, does or does not happen.

A contracts to a B Rs. 10,000 if B's house is burnt. This is acontingent contract.

.Contingent contracts to do or not to do anything if an uncertainfuture event happens cannot be enforced by law unless and untilthat event has ha ened.

If the event becomes impossible, such contracts become void.


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Illustration

A makes a contract with B to buy B's horse if A survives C. Thiscontract cannot be enforced by law unless and until C dies in Aslifetime.

A makes a contract with B to sell a horse to B at a specified price, ifC, to whom the horse has been offered, refuses to buy him. Thecontract cannot be enforced by law unless and until C refuses to buythe horse.

A contracts to a B a sum of mone when B marries C. C dieswithout being married to B. The contract becomes void.


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Contingent Contracts

Enforcement of contracts contingent on an event not happening.Contingent contracts to do or not to do anything if an uncertainfuture event does not happen can be enforced when the happeningof that event becomes impossible, and not before.

A agrees to pay B a sum of money if a certain ship does not return.The ship is sunk. The contract can be enforced when the ship sinks.


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Contingent Contracts

Agreement contingent on impossible events void. Contingentagreements to do or not to do anything, if an impossible eventhappens, are void, whether the impossibility of the event is knownor not to the parties to the agreement at the time when it is made.

A agrees to pay B 1,000 rupees if two straight lines should enclose aspace. The agreement is void.

A agrees to pay B 1,000 rupees if B will marry A's daughter C. C was

dead at the time of the a reement. The a reement is void.


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Performance of Contract

A, B and C jointly promise to pay D 3,000 rupees. D may compeleither A or B or C to pay him 3,000 rupees.

A, B and C ointl romise to a D the sum o 3,000 ru ees. C iscompelled to pay the whole. A is insolvent, but his assets aresufficient to pay one-half of his debts. C is entitled to receive 500rupees from A's estate, and 1,250 rupees from B.

A, B and C are under a joint promise to pay D 3,000 rupees. C is

unable to a an thin , and A is com elled to a the whole. A isentitled to receive 1,500 rupees from B.

being only sureties for C. C fails to pay. A and B are compelled topay the whole sum. They are entitled to recover it from C.


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Time of Performance

A promises to deliver goods at B's warehouse on the first January.On that day A brings the goods to B's warehouse, but after the usualhour for closing it, and they are not received. A has not performedhis promise.

Time and place for performance of promise, where time is specifiedand no application to be made. When promise is to be performed ona certain day, and the promisor has undertaken to perform itwithout application by the promisee, the promisor may perform it at

any time during the usual hours of business on such day and at thep ace a w c e prom se oug o e per orme .


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Performance of Contract

Performance in manner or at time prescribed or sanctioned bypromisee. The performance of any promise may be made in anymanner, or at any time which the promisee prescribes or sanctions.

B owes A 2,000 rupees. A desires B to pay the amount to As accountwith C, a banker. B, who also banks with C, orders the amount to betransferred from his account to A's credit, and this is done by C.Afterwards, and before A knows of the transfer, C fails. There hasbeen a good payment by B.

A and B are mutually indebted. A and B settle an account by settingoff one item against another, and B pays A the balance found to bedue from him


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Novation, Rescission, & Alteration of Contract

Effect of novation, rescission, and alteration of contract. If the partiesto a contract agree to substitute a new contract for it, or to rescind oralter it, the original contract need not be performed.

A owes money to B under a contract. It is agreed between A, B andC that B shall thenceforth accept C as his debtor, instead of A. Theold debt of A to B is at an end, and a new debt from C to B has beencontracted.

A owes B 10,000 ru ees. A enters into an arran ement with B, andgives B a mortgage of his (A's) estate for 5,000 rupees in place of thedebt of 10,000 rupees. This is a new contract and extinguishes theold.


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Consequences of rescission of voidable contract

When a person at whose option a contract is voidable rescinds it, theother party thereto need not perform any promise therein containedin which he is promisor. The party rescinding a voidable contractshall, if he have received any benefit thereunder from another partyo suc con rac , res ore suc ene , so ar as may e, o e person

from whom it was received

A pays B 1,000 rupees in consideration of B's promising to marry C,A's daughter. C is dead at the time of the promise. The agreement is

void, but B must repay A the 1,000 rupees.

A contracts to sing for B at a concert for 1,000 rupees, which are paidin advance. A is too ill to sing. A is not bound to make

compensation, to B for the loss o the profits which B would havemade if A had been able to sing, but must refund to B the 1,000rupees paid in advance.


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Contract for Necessities

Claim for necessaries supplied to person incapable of contracting, oron his account. If a person, incapable of entering into a contract, orany one whom he is legally bound to support, is supplied byanother, person with necessaries suited to his condition in life, theperson w o as urn s e suc supp es s en e o e re m urse

from the property of such incapable person

A supplies B, a lunatic, with necessaries suitable to his condition inlife. A is entitled to be reimbursed from B's property.

A supplies the wife and children of B, a lunatic, with necessariessuitable to their condition in life. A is entitled to be reimbursed fromB's property.


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Responsibility of finder of goods

Responsibility of finder of goods.-A person who finds goodsbelonging to another, and takes them into his custody, is subject tothe same responsibility as a bailee.

Illustration :

A and B jointly owe 100 rupees to C. A alone pays the amount to C,

and B, not knowing this fact, pays 100 rupees over again to C. C isoun to repay t e amount to B.


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Breach of Contact

Compensation for loss or damage caused by breach of contract.

en a contract as een ro en, t e party w o su ers y sucbreach is entitled to receive, from the party who has broken thecontract, compensation for any loss or damage caused to himthereb which naturall arose in the usual course o thin s fromsuch breach, or which the parties knew, when they made the

contract, to be likely to result from the breach of it.

Such compensation is not to be given for any remote and indirectloss or damage sustained by reason of the breach.

Compensation for failure to discharge obligation resembling thosecreated by contract. When an obligation resembling those created bycontract has been incurred and has not been discharged, any person

compensation from the party in default, as if such person hadcontracted to discharge it and had broken his contract.

Ill


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Illustration

A contracts to sell and deliver 50 Kgs of wheat to B, at a certain priceto be paid on delivery. A breaks his promise. B is entitled to receivefrom A, by way of compensation, the sum, if any, by which thecontract price falls short of the price for which B might haveo a ne gs o w ea o e qua y a e me w en e w ea

ought to have been delivered.

A hires B's ship to go to Bombay, and there take on board, on thefirst of January, a cargo which A is to provide and to bring it to

Calcutta, the freight to be paid when earned. B's ship does not go toom ay, u as oppor un es o procur ng su a e conveyancefor the cargo upon terms as advantageous as those on which he hadchartered the ship. A avails himself of those opportunities, but is

.compensation from B in respect of such trouble and expense.

Ill i


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Illustration

A sells certain merchandise to B, warranting it to be of a particularquality, and B, in reliance upon this warranty, sells it to C with asimilar warranty. The goods prove to be not according to thewarranty, and B becomes liable to pay C a sum of money by way ofcompensa on. s en e o e re m urse s sum y .

B h f C t t


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Breach of Contract

Compensation for breach of contract where penalty stipulated for :

When a contract has been broken, if a sum is named in thecontract as the amount to be aid in case of such breach, or if thecontract contains any other stipulation by way of penalty, the

party complaining of the breach is entitled, whether or not actualdamage or loss is proved to have been caused thereby, to receivefrom the party who has broken the contract reasonablecompensation not exceeding the amount so named or, as the

case may be, the penalty stipulated for.

A contracts with B to pay B Rs. 1,000, if he fails to pay B Rs. 500 on agiven day. A fails to pay B Rs. 500 on that day. B is entitled to

recover from A such compensation, not exceeding Rs. 1,000 as theCourt considers reasonable.

Ill t ti


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Illustration

A, a singer, contracts with B, the manager of a theatre, to sing at histheatre for two nights every week during the next two months, andB engages to pay her 100 rupees for each nights performance. Onthe sixth night, A wilfully absents herself from the theatre, and B, inconsequence, resc n s e con rac . s en e o c a m

compensation for the damage which he has sustained through thenon-fulfilment of the contract.

Indemnit


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Indemnity

"Contract of indemnity is a contract by which one party promisesto save the other from loss caused to him by the conduct of thepromisor himself, or by the conduct of any other person.

A contracts to indemnify B against the consequences of any

proceedings which C may take against B in respect of a certain sumof 200 rupees. This is a contract of indemnity.

Right of Indemnity Holder


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Right of Indemnity Holder

The promisee in a contract of indemnity, acting within the scope of

his authority, is entitled to recover from the promisor :

all damages which he may be compelled to pay in any suit inrespect of any matter to which the promise to indemnify applies

all costs which he may be compelled to pay in any such suit if, in

bringing or defending it, he did not contravene the orders of thepromisor, and acted as it would have been prudent for him toact in the absence of any contract of indemnity, or i thepromisor authorized him to bring or defend the suit ;

all sums which he may have paid under the terms of anycompromise of any such suit, if the compromise was notcontrary to the orders of the promisor, and was one which itwould have been prudent for the promisee to make in thea sence o any con rac o n emn y, or e prom sorauthorized him to compromise the suit.

Contract of Guarantee


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Contract of Guarantee

Contract of guarantee " is a contract to perform the promise, or

discharge the liability, of a third person in case of his default.

The erson who ives the uarantee is called the " suret ; theperson in respect of whose default the guarantee is given is called

the " principal debtor ", and the person to whom the guarantee isgiven is called the " creditor ". A guarantee may be either oral orwritten.

An thin done, or an romise made, for the benefit o theprincipal debtor, may be a sufficient consideration to the surety forgiving the guarantee.

Illustrations


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Illustrations

B requests A to sell and deliver to him goods on credit. A agrees to

do so, provided C will guarantee the payment of the price of thegoods. C promises to guarantee the payment in consideration of A'spromise to deliver the goods. This is a sufficient consideration for

s prom se.

A sells and delivers goods to B. C afterwards, withoutconsideration, agrees to pay for them in default of B. The agreementis void.

Suretys Liability


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Surety s Liability

The liability of the surety is coextensive with that of the principal

debtor, unless it is otherwise provided by the contract.

A uarantees to B the a ment of a bill of exchan e b C, theacceptor. The bill is dishonored by C. A is liable not only for the

amount of the bill but also for any interest and charges which mayhave become due on it.

Continuing guarantee


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Continuing guarantee

A guarantee which extends to a series of transactions is called a

cont nu ng guarantee

A guarantees payment to B of the price of five sacks of flour to bee vere y o an o e pa or n a mon . e vers ve

sacks to C. C pays for them. Afterwards B delivers four sacks to C,which C does riot pay for. The guarantee given by A was not acontinuin uarantee, and accordin l he is not liable for the riceof the four sacks.

A becomes surety to C for B's conduct as a manager in Cs bank.Afterwards B and C contract, without A's consent, that Bs salaryshall be raised, and that he shall become liable for one-fourth of thelosses on overdrafts. B allows a customer to overdraw, and the bank

.

variance made without his consent, and is not liable to make goodthis loss.

Bailment


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Bailment A " bailment " is the delivery of goods by one person to another for

some purpose, upon a con rac a ey s a , w en e purpose saccomplished, be returned or otherwise disposed of according to thedirections of the person delivering them. The person delivering thegoods is called the bailor. The person to whom they are delivered iscalled, the bailee.

A lends a horse, which he knows to be vicious, to B. He does notsc ose e ac a e orse s v c ous. e orse runs away. s

thrown and injured. A is responsible to B for damage sustained.

. ,it, and A is injured. B is responsible to A for the injury.

A bails 100 bales of cotton marked with a articular mark to B. B,

without A's consent, mixes the 100 bales with other bales of his own,bearing a different mark : A is entitled to have his 100 bales returned,and B is bound to bear all the expense incurred in the separation of the

Pledge


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Pledge

The bailment of goods as security for payment of a debt or

performance of a promise is called " pledge ".

The bailor is in this case called the awnor , the bailee is calledthe pawnee.

the debt or the performance of the promise, but for the interest ofthe debt, and all necessary expenses incurred by him in respect of

the ossession or for the reservation of the oods led ed.

Agency


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Agency

An "agent" is a person employed to do any act for another or to

represent another in dealings with third persons. The person forwhom such act is done, or who is so represented, is called the "principal.

No consideration is necessary to create an agency

A directs B, his solicitor, to sell his estate by auction, and to employan auctioneer for the purpose. B names C, an auctioneer, to conduct

the sale. C is not a sub-a ent, but is A's a ent for the conduct of thesale.


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Topic - 2

Goods


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Goods" means every kind of moveable property

other than actionable claims and money;

and includes stock and shares, growing crops, grass, and thingsattached to or forming part of the land

which are agreed to be severed before sale or under the contractof sale

Key Terms


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y

immoveable property does not include standing timber, growing

crops or grass

bu er means a erson who bu s or a rees to bu oods;

seller means a person who sells or agrees to sell goods

price means the money consideration for a sale of goods

delivery means voluntary transfer of possession from one personto another

specific goods means goods identified and agreed upon at thetime a contract of sale is made

Definitions outside Sale of Goods Act


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Actionable Claim is a plain unsecured debt which can be claimed

by a person against another person and which can be enforced incivil courts according to law. An Actionable Claim is transferableand inheritable and it is deemed to be a property in the hands of theperson w o as e c a m. (TOP Act)

"Immovable property" shall include land, benefits to arise out ofan , an ngs a ac e o e ear , or permanen y as ene o

anything attached to the earth (General Clauses Act)

Sale & Agreement to Sell


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A contract of sale of goods is a contract whereby the seller transfers

or agrees to transfer the property in goods to the buyer for a price.

A contract of sale ma be absolute or conditional.

Where under a contract of sale the property in the goods is.

where the transfer of the property in the goods is to take place at a,

contract is called an agreement to sell.

n agreemen o se ecomes a sa e w en e me e apses or econditions are fulfilled subject to which the property in the goods isto be transferred.

Illustration


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X agrees to sell and Y agrees to buy 100 Kg of Rice for Rs. 10,000. X

pays Y Rs. 10,000 and Y delivers 100 Kg of Rice, this is a SaleContract

A agrees to buys shares of XYZ Ltd from B if the market price of

shares of XYZ Ltd falls from Rs. 10 to Rs. 5. There is agreement tosale. Upon the market price of shares of XYZ Ltd getting to Rs. 5, theagreement to sale converts to Sale

Formalities of Contract


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A contract of sale is made by an offer to buy or sell goods for a price

and the acceptance of such offer.

The contract ma rovide for the immediate deliver of the oodsor immediate payment of the price or both, or for the delivery or

payment by installments, or that the delivery or payment or bothshall be postponed.

Subject to the provisions of any law for the time being in force, a

contract o sale ma be made in writin or b word of mouth, orpartly in writing and partly by word of mouth or may be impliedfrom the conduct of the parties.

Perishable Goods


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Where there is a contract for the sale of specific goods, the contract

is void if the goods without the knowledge of the seller

have, at the time when the contract was made,

description in the contract.

Price


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The price in a contract of sale may be fixed by the contract or may be

left to be fixed in a agreed manner or may be determined by thecourse of dealing between the parties.

Where the price is not determined, as above, the buyer shall pay the

seller a reasonable price.

What is a reasonable price is a question of fact dependent on thecircumstances of each particular case.

Sell at valuation


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Where there is an agreement to sell goods on the terms that the price

is to be fixed by the valuation of a third party and such third partycannot or does not make such valuation, the agreement is therebyavoided;

If the goods or any part thereof have been delivered to, andappropriated by, the buyer, he shall pay a reasonable price there for.

Where such third party is prevented from making the valuation by

the fault of the seller or bu er, the art not in fault ma maintain asuit for damages against the party in fault.

Conditions & Warranties


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A condition is a stipulation

essential to the main purpose of the contract,

the breach of which gives rise to a right to treat the contract asre udiated.

A warranty is a stipulation collateral to the main purpose of the

not to a right to reject the goods and treat the contract as repudiated.

case on the construction of the contract.

s pu a on may e a con on, oug ca e a warran y n e

contract.

When condition to be treated as warranty


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Where the buyer may waive the condition; he cannot insist on its

fulfillment. (Where is accepts defective goods)

A bu s a Car rom B. The car is delivered without a en ine and Aaccepts delivery of the car. Here A has waves the condition

.(Where he claims damages instead of repudiating the contract)

.accepts delivery of the car and claims damages from B for cost ofengine. Here A treats breach of condition as breach of warranty

Express Conditions & Warranties


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Where the buyer expressly specifies the good that he wants to buy,

it is called Express Condition / warranty

A informs B, the seller, that he intends to bu a Motor Car HondaCity Vxi model Silver Color. This is called express condition.

nd

floor of building # 2, this is express condition

Implied Conditions


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Seller has right to sell goods

Or will have right to sell the goods at thetime when the property is to pass

Implied Condition as toTitle

Goods supplied to be same as sample

Good shall correspond with descriptionSale by Description

Goods must corres ond with sam le ualit

Buyer must be given reasonable time tocorrespond with bulk

Goods must be free from defect

Sale by Sample

Implied Conditions


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Goods must correspond with sample qualityand description

Sale by Sample &Description

The ualit and condition of oods must besuch that a man of ordinary prudence wouldaccept them as goods of that description

Goods must be free from latent / hidden

Condition as toMerchantable Quality

Only in case of eatables / provisions / food Goods shall be fit for human consumptionCondition as toWholesomeness


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Caveat Emptor is let buyer be aware.

uyer must satis y imse a out t e qua ityas well the suitability of the goods

Caveat Emptor - exceptions

Wh th b l b i li ti k k t th


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Where the buyer, expressly or by implication, makes known to the

seller the particular purpose for which the goods are required, and thatthe buyer relies on the seller's skill or judgment, there is an impliedcondition that the goods shall be reasonably fit for such purpose

Where goods are bought by description from a seller who deals ingoods of that description, there is an implied condition that the goods

Where seller makes a misrepresentation and buyer relies of the

Where seller knowing conceals a defect which would not have

Where goods are sold by description/sample and the goods supplied

Transfer of property

Wh th i t t f th l f t i d d


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Where there is a contract for the sale of unascertained goods, no

property in the goods is transferred to the buyer unless and until thegoods are ascertained.

Where there is an unconditional contract for the sale of specific

goods in a deliverable state, the property in the goods passes to thebuyer when the contract is made, and it is immaterial whether thetime of payment of the price or the time of delivery of the goods, orboth, is postponed

goods are said to be in a "delivered state" when they are in such state that thebuyer would under the contract be bound to take delivery of them

Where there is a contract for the sale of specific goods and the seller is

bound to do something to the goods for the purpose of putting them into adeliverable state, the property does not pass until such thing is done and the

.

Transfer of property

Where there is a contract for the sale of specific goods in a


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Where there is a contract for the sale of specific goods in a

deliverable state, but the seller is bound to weigh, measure, test ordo some other act or thing with reference to the goods for thepurpose of ascertaining the price, the property does not pass untilsuc ac or ng s one an e uyer as no ce ereo .

Where there is a contract for the sale of unascertained or futuregoods by description and goods of that description and in adeliverable state are unconditionally appropriated to the contract,either by the seller with the assent of the buyer or by the buyer with

e assen o e se er, e proper y n e goo s ereupon passesto the buyer. Such assent may be expressed or implied, and may begiven either before or after the appropriation is made.

Reservation of right of disposal

Where there is a contract for the sale of specific goods or where


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Where there is a contract for the sale of specific goods or where

goods are subsequently appropriated to the contract, the seller may,reserve the right of disposal of the goods until certain conditions arefulfilled. In such case, the property in the goods does not pass to the

uyer un e con ons mpose y e se er are u e .

Risk prima facie passes with property

The goods remain at the seller's risk until the property therein is


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The goods remain at the seller s risk until the property therein is

transferred to the buyer, but when the property therein istransferred to the buyer, the goods are at the buyer's risk whetherdelivery has been made or not.

Exceptions : Where delivery has been delayed through the fault ofeither buyer or seller, the goods are at the risk of the party in fault asregards any loss which might not have occurred but for such fault

Seller or buyer in possession after sale

Where a person having sold goods continues or is in possession of


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Where a person, having sold goods continues or is in possession of

the goods or of the documents of title to the goods : the delivery or transfer by that person, to any person receiving

the same in good faith and without notice of the previous sale

shall have the same effect as if the person making the delivery or

transfer were expressly authorized by the owner of the goods tomake the same.

A sells 50 kg of wheat to B, however A still hold possession of the 50

k sack o wheat and B has not taken ossession o the same. Capproaches A for 50 kg of wheat and A sells the same sack of wheatset aside for delivery to B, to C. C did not have knowledge of thecontract of sale between A & B, and takes possession of the sack ofwheat.

Here it will be treated as if A was acting on Bs behalf to sell the 50kg of wheat to C


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-

Namo dat quod non habet

~ no one can give what he does not himself

The rule

Where goods are sold by a person who is not the owner of them and


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Where goods are sold by a person who is not the owner of them and

who sell them without any authority or consent of the owner, the buyer acquires no better title to the goods than the seller had

unless the owner of the oods is b his conduct disallowed fromdenying the seller's authority to sell

.at auction. Here Z obtained no title to the TV because X had no titleto it.

Exception to Rule

A ent much be in ossession of ood with the


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A ent much be in ossession of ood with the

consent of the ownerThe Agent must have sold good in ordinary course of

business and buyer must have acted in good faith

Buyer must not have knowledge of that the seller does

Sale by Mercantile Agent

not have authority

consent of co-owner

Buyer must have acted in good faith

Buyer must not have knowledge of that the seller does

not have authorit

Sale by Joint Owner

Seller must have possession of goods under a voidablecontract on grounds of coercion, undue influence,misrepresentation or fraud

Good must have to be sold before the contract isrescinded

Buyer must have acted in good faith without knowledge

a e y person in

possession undervoidable contract

Exception to Rule

Seller in possessions after sale - Seller should be in


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Seller in possessions after sale Seller should be in

possession of goods as seller and not bailee. Buyermust buy in good faith, without knowledge ofpervious sale

be found or if found, refuses to pay lawful chargesor if goods are perishable in nature

stoppage in transit

Delivery

Delivery means the voluntary transfer of possession from one


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y y p

person to another

Mode o deliver

By doing anything which the parties agrees shall be treated as

delivery

By doing anything which has the effect of putting the goods intothe buyers possession

Mode of Delivery


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Constructive

Where goods are Where some symbol

Delivery

Where person in

over to the buyer control is handedover to buyer

E.g. Home keys /

,acknowledges tohold goods onbehalf of the buyer

ar eys


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When the whole of the price has not been paid ortendered; or when a negotiable instrument has

,

same is dishonored

Right of unpaid seller

A lien on the goods for the price while he is in possession of them;


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In case of the insolvency of the buyer a right of stopping the goodsin transit after he has arted with the ossession of them;

Right of re-sale

Where the property in goods has not passed to the buyer, theunpaid seller has a right of withholding delivery and co-extensive

has passed to the buyer.

Seller's lien

The unpaid seller of goods who is in possession of them is entitled


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to retain possession of them until payment o the price in thefollowing cases -

where the goods have been sold without any agreement on

credit

where the goods have been sold on credit, but the term of credithas expired

where the buyer becomes insolvent

Suit for price

Where under a contract of sale the property in the goods has passed


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to the buyer and the buyer wrongfully neglects or refuses to pay forthe goods according to the terms of the contract, the seller may suehim for the price of the goods.

Where under a contract of sale the price is payable on a day certainirrespective of delivery and the buyer wrongfully neglects or refusesto pay such price, the seller may sue him for the price although theproperty in the goods has not passed and the goods have not beenappropriated to the contract.

Where the buyer wrongfully neglects or refuses to accept and payfor the goods, the seller may sue him for damages for non-acceptance

Specific performance

In any suit for breach of contract to deliver specific or ascertained


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goods, the court may, if it thinks fit, on the application of theplaintiff, by its decree direct that the contract shall be performedspecifically, without giving the defendant the option of retaining thegoo s on paymen o amages.

The decree may be unconditional, or upon such terms andconditions as to damages, payment of the price or otherwise, as thecourt may deem just, and the application of the plaintiff may bemade at any time before the decree.

Auction Sale

where goods are put up for sale in lots, each lot is prima facie deemed to be


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the subject of a separate contract of sale; the sale is complete when the auctioneer announces its completion by the

fall of the hammer or in other customary manner; and, until such,

a right to bid may be reserved expressly by or on behalf of the seller and,

where such right is expressly so reserved, but not otherwise, the seller oran one erson on his behalf ma , sub ect to the rovisions hereinaftercontained, bid at the auction;

where the sale is not notified to be subject to a right to bid on behalf of theseller, it shall not be lawful for the seller to bid himself or to employ any

person o a suc sa e, or or e auc oneer now ng y o a e anyfrom the seller or any such person; and any sale contravening this rule maybe treated as fraudulent by the buyer;

if the seller makes use of pretended bidding to raise the price, the sale isvoidable at the option of the buyer.


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Constitution of India

Certain key aspects of the Indian Constitution that weshould be aware of

PreambleWE, THE PEOPLE OF INDIA, having solemnly resolved to constitute India into a


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and to secure to all its citizens: JUSTICE, social, economic and political;

LIBERTYof thought, expression, belief, faith and worship;

EQUALITYof status and of opportunity;

and to promote among them all; FRATERNITYassuring the dignity of the individual andthe unity and integrity of the Nation;

IN OUR CONSTITUENT ASSEMBLY this twenty-sixth day of November, 1949, doHEREBY

ADOPT, ENACT AND GIVE TO OURSELVES THIS CONSTITUTION.

Meaning

sovereign means supreme or independent. India is internally and externally


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sovereign - externally free from the control of any foreign power andinternally, it has a free government which is directly elected by the peopleand makes laws that govern the people

Socialistmeans the absence of discrimination on the grounds only of caste,

color, creed, sex, religion, or language. Under social equality all are equalbefore law and has e ual status and o ortunities

Secularimplies separation of state and religion. It means the state will makelaws without regards to any religion. India, therefore does not have anofficial state religion. Every person has the right to preach, practice andpropagate any religion they choose. The government must not favor ordiscriminate against any religion. It must treat all religions equally. All

,

Meaning

Democracy means citizens elect their governments at all levels


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(Union, State and local) by a system of universal adult franchise;popularly known as 'One man one vote'. Every citizen, who is 18years of age and above and not otherwise debarred by law, isen e o vo e. very c zen en oys s r g w ou anydiscrimination on the basis of caste, creed, color, sex, religion or

education

Republic democratic republic is an entity in which the head of state iselected, directly or indirectly, for a fixed tenure. The President of

n a s e ec e y an e ec ora co ege or a erm o ve years. ePost of the President Of India is not hereditary. Every citizen ofIndia is eligible to become the President of the country

Six Fundamental Rights

Right to equality *


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Right to freedom *

Right against exploitation

g o ree om o re g on

Cultural and educational rights

Right to constitutional remedies

Right of Equality Equality Before Law - All citizens enjoy equality before law. All enjoy equal protection of law.

, , .


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It means equality or equality among the unequal. It means equality among the similarly placedpeople. It does not prohibit the classification of persons into different groups.

Prohibition o discrimination - It rohibits discrimination on rounds of reli ion race caste sexor place of birth. No person can, on any of any of these grounds, be denied access to shops, hotels,public restaurants and places of public entertainment or the use of wells, tanks, bathing Ghats,

and places of public resort.

Equality of Opportunity - this right provides equality of opportunity for all citizens in mattesrelating to employment or appointment to any office the state. However, qualifications can befixed for various jobs.

Abolition of Untouchables - For eradicating the evil practice of untouchables in India, theConstitution has abolished untouchable. Practice of untouchable in any form is an offencepublishable by law. All citizens of India now enjoy equal status.

o on o es - e ons u on pro s e s a e rom con err ng any e on c zens.However honors for military or academic distinctions can be given. This right does not preventthe grant of military decorations such as Parma Vir Chakra, Mahavir Chakra. Vir Chakra and AshokChakra.

Right of Freedom Fundamental Freedoms of Citizens - All citizens have the right to: (i) Freedom of speech and

. .

( ) F d id d l (VI) F d f f i i d


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movement (v) Freedom to reside and settle (VI) Freedom of profession, occupation, trade orbusiness.

The i ht to reedom - like the ri ht to e ualit is also not absolute. It is also sub ect toreasonable limitations. These freedoms have to be used without any violation of public order,public health, morality and security of state. Further, in respect of freedom of profession, trade,

and business, the state can prescribe professional or technical qualifications. The State can alsonationalize any industry or business.

Protection against Arbitrary conviction - No person can be punished except for a violation oflaw. No person can be subjected to a punishment greater than the one prescribed by law. For onecrime one punishment can be given. No person accused of any offence can be forced to give

.

Protection of Life and Liberty - It grants protection to the life and liberty of citizens as well asnon-citizens. It says, No person can be deprive of his life and liberty except according to the procedure

.

Protection against Arrest and Detention - The Constitution also provides protection againstarbitrary arrest and detention. Any person arrested by the police enjoys certain protections. Hehas a ri ht to be informed about the rounds of his arrest. He has the ri ht to consult his law er.He is to be produced before the nearest magistrate within a period of 24 hours of his arrest

Fundamental Duties To respect and incorporate the ideals which were the very base of our national struggle

or ree om


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To follow the Constitution and respect its institutions, the National Flag and theNational Anthem

irrespective of linguistic, religious and regional or sectional diversities

To discontinue practices pertaining to the impairment of the dignity of women To protect and promote the sovereignty, unity and integrity of India

To protect public property and to avoid violence

To respect and preserve the rich heritage of Indian culture

To contribute towards making improvements in all spheres of individual and collective

functions to take the nation to new heights of achievement

To develop the spirit of inquiry and reform, a scientific temper and sense of humanism

To provide defense and national service when called upon to the country during hours of

To preserve the natural environment of India like the forests, lakes, rivers and wild lifeand to have a compassionate outlook towards the living creatures


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MMS : Semester I

Session 4


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Topic - 3

Organization Structures

Sole Trader


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Partnership Firms

Co-operative Society

ompany

Companies formed under a special law of Parliament

Introduction to Companies Act, 1956

Com = Together + pains = bread


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Com = Together + pains = bread

Act is applicable to whole of India

658 Section 15 Schedules

Features of a Company

Association of Persons


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Separate Legal Entity

Limited Liability

Perpetual Succession

Separate Property

Common Seal

Transferabilit of Shares

Number of members

Illegal Associations

No company, association or partnership consisting of more than tenpersons s a e orme or t e purpose o carry ng on t e us nessof banking unless it is registered as a company under this Act


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of banking, unless it is registered as a company under this Act

o company, assoc a on or par ners p cons s ng o more antwenty persons shall be formed for the purpose of carrying on any

other business that has for its object the acquisition of gain by thecom an , association or artnershi , or b the individual membersthereof, unless it is registered as a company under this Act

Every member of a company, association or partnership carrying onbusiness in contravention of this section shall be personally liablefor all liabilities incurred in such business.

Type of Companies

Private Companies


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Public Companies

Government Companies

ect on ompan es ot or ro t ompan es

Further bifurcation of com anies

Companies Limited by Shares

Companies Limited by Guarantee

Company, Private Limited Company

"company" means a company formed and registered under this Act


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"private company" means a company which has a minimum paid-u ca ital of one lakh ru ees or such hi her aid-u ca ital as mabe prescribed, and by its articles :

b) limits the number of its members to fifty;

c) Prohibits any invitation to the public to subscribe for any shares

, ,d) Prohibits any invitation or acceptance of deposits from persons

other than its members, directors or their relatives;

Public Company

"public company" means a company which


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a) is not a private company;

-higher paid-up capital, as may be prescribed;

c) is a private company which is a subsidiary of a company which

Holding & Subsidiary Company A Company shall be deemed to be a subsidiary of another if

a) that other controls the composition of its Board of directors; or


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a) that other controls the composition of its Board of directors; or

i. where the holders of preference shares issued before the

commencement of this Act have the same voting rights inall respects as the holders of equity shares, exercises orcontro s more t an a o t e tota voting power o succompany;

-. ,holds more than half in nominal value of its equity sharecapital; or

c e rs -men one company s a su s ary o any company

which is that others subsidiary

Procedure for Formation of Company Promoter

Selection of type of Company Private or Public


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Selection of type of Company Private or Public

Approva o Name o t e Company Form 1A

Drafting key document emoran um o ssoc at on

Articles of Association

er ca e o ncorpora on

Drafting Prospectus or Statement in Lieu of Prospectus

Dating and Filing of Prospectus with the ROC

Flow Chart


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Memorandum of Association

Name Clause

Registered Office Clause


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Registered Office Clause

Objects Clause

Main Object

Objects incidental or ancillary to attainment o main object

Other object

Liabilit Clause

Limited Liability

Unlimited Liability

Capital Clause

Authorized Capital

Articles of Association

Schedule I Part A

Areas Covered in AoA


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Areas Covered in AoA

Issue, Forfeiture

Members oar o rectors

Manager & Secretary

Common Seal

Dividend and Reserve

Accounts

Ultra Virus & Indoor Management

ultra virus is Beyond the Powers

ultra virus in relation with MoA and AoA


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ultra virus in relation with MoA and AoA

Public documents

n oor anagement o

Investors Rights : General Meetings

Type of Meetings

Statutory Meeting Only once in the life time of the Company


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y p y

To be held within 6 months of incorporation (not earlier than1 month from incorporation)

Annual General Meeting

Once every year

Two Conditions to be satisfied :

Once in every calendar year

Gap between two AGMs not more than 15 months

Extra-Ordinary General Meeting

Any number of times

For special reasons where matter cannot be delayed tillnext AGM

Board of Directors Board is the Governing body of the Company

Directors are members of the Company and NOT employees


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Directors are appointed by members thru election

Directors are NOT owners of the Company

Maximum number of directorship that could be held by a person - 15Companies

Minimum number of directors :

Private Company 2 Directors

Public Company 3 Directors

Maximum number of directors : 12 Directors (both Private and Public Cos)

.

Type of Directors

Additional Director

Director in Casual Vacancy


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Director in Casual Vacancy

Alternate Director

anag ng rector

Method of appointment

Appointment & Retirement of Director


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Disqualification of Directors he has been found to be of unsound

he is an un-discharged insolvent or he has applied to be adjudicated asi l t d hi li ti i di


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an insolvent and his application is pending;

he has been convicted by a Court of any offence involving moral

turpitude and sentenced in respect thereof to imprisonment for not lessto six months, and a eriod of five ears has not ela sed from the dateof expiry of the sentence;

he has not paid any call in respect of shares of the company held by

m, w et er a one or o nt y w t ot ers, an s x mont s ave e apsefrom the last day fixed for the payment of the call; or

passed by a Court in pursuance of section 203 and is in force, unless the

leave of the Court has been obtained for his appointment in pursuanceof that section.

Vacation of Office he fails to obtain within the time specified qualification shares, if any, required

he is found to be of unsound mind or he applies to be adjudicated an insolvent


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pp jor he is adjudged an insolvent;

he is convicted by a Court of any offence involving moral turpitude and

sentenced in respect thereof to imprisonment for not less than six months;

he fails to pay any call in respect of shares of the company held by him, whetheralone or jointly with others, within six months from the last date fixed for thepayment of the call

he absents himself from three consecutive meetings of the Board of directors, orfrom all meetings of the Board for a continuous period of three months,whichever is longer, without obtaining leave of absence from the Board;

he is a partner or any private company of which he is a director, accepts a loan,or any guarantee or security for a loan, from the company in contravention ofsection 295


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MMS : Semester I

Session 5


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Constitution of India

Topic - 4

PreambleWE, THE PEOPLE OF INDIA, having solemnly resolved to constitute India into a

and to secure to all its citizens: JUSTICE, social, economic and political;


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J p

LIBERTYof thought, expression, belief, faith and worship;

EQUALITYof status and of opportunity;

and to promote among them all; FRATERNITYassuring the dignity of the individual andthe unity and integrity of the Nation;

IN OUR CONSTITUENT ASSEMBLY this twenty-sixth day of November, 1949, doHEREBY

ADOPT, ENACT AND GIVE TO OURSELVES THIS CONSTITUTION.

Meaning

sovereign means supreme or independent. India is internally and externallysovereign - externally free from the control of any foreign power and

internally, it has a free government which is directly elected by the peopleand makes laws that govern the people


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g p p

Socialistmeans the absence of discrimination on the grounds only of caste,

color, creed, sex, religion, or language. Under social equality all are equalbefore law and has e ual status and o ortunities

Secularimplies separation of state and religion. It means the state will makelaws without regards to any religion. India, therefore does not have an

official state religion. Every person has the right to preach, practice andpropagate any religion they choose. The government must not favor ordiscriminate against any religion. It must treat all religions equally. All

,

Meaning

Democracy means citizens elect their governments at all levels(Union, State and local) by a system of universal adult franchise;popularly known as 'One man one vote'. Every citizen, who is 18years of age and above and not otherwise debarred by law is


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years of age and above and not otherwise debarred by law, isen e o vo e. very c zen en oys s r g w ou anydiscrimination on the basis of caste, creed, color, sex, religion or

education

Republic democratic republic is an entity in which the head of state iselected, directly or indirectly, for a fixed tenure. The President of

n a s e ec e y an e ec ora co ege or a erm o ve years. ePost of the President Of India is not hereditary. Every citizen ofIndia is eligible to become the President of the country

Six Fundamental Rights

Right to equality *

Right to freedom *


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Right against exploitation

g o ree om o re g on

Cultural and educational rights

Right to constitutional remedies

Right of Equality Equality Before Law - All citizens enjoy equality before law. All enjoy equal protection of law.

, , .It means equality or equality among the unequal. It means equality among the similarly placedpeople. It does not prohibit the classification of persons into different groups.


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Prohibition o discrimination - It rohibits discrimination on rounds of reli ion race caste sexor place of birth. No person can, on any of any of these grounds, be denied access to shops, hotels,public restaurants and places of public entertainment or the use of wells, tanks, bathing Ghats,and places of public resort.

Equality of Opportunity - this right provides equality of opportunity for all citizens in mattesrelating to employment or appointment to any office the state. However, qualifications can befixed for various jobs.

Abolition of Untouchables - For eradicating the evil practice of untouchables in India, theConstitution has abolished untouchable. Practice of untouchable in any form is an offencepublishable by law. All citizens of India now enjoy equal status.

o on o es - e ons u on pro s e s a e rom con err ng any e on c zens.However honors for military or academic distinctions can be given. This right does not prevent

the grant of military decorations such as Parma Vir Chakra, Mahavir Chakra. Vir Chakra and AshokChakra.

Right of Freedom Fundamental Freedoms of Citizens - All citizens have the right to: (i) Freedom of speech and

. .movement (v) Freedom to reside and settle (VI) Freedom of profession, occupation, trade orbusiness.


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The i ht to reedom - like the ri ht to e ualit is also not absolute. It is also sub ect toreasonable limitations. These freedoms have to be used without any violation of public order,public health, morality and security of state. Further, in respect of freedom of profession, trade,and business, the state can prescribe professional or technical qualifications. The State can alsonationalize any industry or business.

Protection against Arbitrary conviction - No person can be punished except for a violation oflaw. No person can be subjected to a punishment greater than the one prescribed by law. For onecrime one punishment can be given. No person accused of any offence can be forced to give

.

Protection of Life and Liberty - It grants protection to the life and liberty of citizens as well asnon-citizens. It says, No person can be deprive of his life and liberty except according to the procedure

.

Protection against Arrest and Detention - The Constitution also provides protection againstarbitrary arrest and detention. Any person arrested by the police enjoys certain protections. Hehas a ri ht to be informed about the rounds of his arrest. He has the ri ht to consult his law er.He is to be produced before the nearest magistrate within a period of 24 hours of his arrest

Fundamental Duties To respect and incorporate the ideals which were the very base of our national struggle

or ree om

To follow the Constitution and respect its institutions, the National Flag and theNational Anthem


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irrespective of linguistic, religious and regional or sectional diversities

To discontinue practices pertaining to the impairment of the dignity of women

To protect and promote the sovereignty, unity and integrity of India

To protect public property and to avoid violence

To respect and preserve the rich heritage of Indian culture

To contribute towards making improvements in all spheres of individual and collective

functions to take the nation to new heights of achievement To develop the spirit of inquiry and reform, a scientific temper and sense of humanism

To provide defense and national service when called upon to the country during hours of

To preserve the natural environment of India like the forests, lakes, rivers and wild life

and to have a compassionate outlook towards the living creatures


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Topic - 5

Some hard facts

Results of Survey Conducted by the American Society for IndustrialSecurity ( ASIS )

an97 - an 98 : Fortune 1000 Com anies sustained losses of


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an 97 - an 98 : Fortune 1000 Com anies sustained losses ofmore than $ 45 billion from proprietary information thefts

$900 million

, ,to incidents of industrial espionage and 550 to suspectedincidents of espionage.

The White House Office of Science & Tech. Estimates that since1990, six million jobs have been lost as a result of trade secret

Types of IPR

Copyright

Trademarks


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Patents

Industrial Designs

Geographic Indicators

Undisclosed Information

What is IPR

Property created as a result of intellectual creative effort orcommercial reputation and goodwill.

Basic Features of IPR:


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Basic Features of IPR:

Intangible

Territorial

Governed by Law of Land

Nature of intellectual property

IP is an intangible property

IP holder has following rights:


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Right to prevent others

Rights encapsulated in a time frame g t to ass gn, to cense

Inheritable

Trademark

A mark used or ro osed to be used in relation to oods

for the purpose of indicating a connection in the course


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of trade between

mark

Trademarks


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Trade & Service Mark

Mark includes :

Device Brand


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Ticket Name

Signature Word

Letter Numerical

Function of Trademark

distin uish the roducts of one manufacturer from

those of another indicate the source or origin of the goods

t th d ill f th f t


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represent the goodwill of the manufacturer

guarantee of quality

create a feeling of trust

Essentials of a good trademark

Eas to ronounce

Easy to remember


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Easy to spell and write

Should not be descriptive

Should be short

Appeal to EYE & EAR

Satisfy statutory requirements

Statutory requirement to registration

Mark must be distinctive

Adapted to distinguish


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Must not conflict

Must not deceive

Not contrary to aw

Must not hurt religious sentiments

Registration Process

Selection of mark

Search Preliminary advice

A li i


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Application

Examination jection

Advertisement

Accept / reject

Proceeds to re istration

Right of a trade mark owner

Ri ht to use

Right to prevent others from using similar or deceptivelysimilar marks


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similar marks

TM

Similar Packaging


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Infringement of TM

Falsif in the mark

Falsely applying the mark Making / possessing instrument of falsification

Falsely representing a TM as registered


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Falsely representing a TM as registered

Selling goods falsely marked

Breach of Trademark

In unction

Damages / account of profits


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Handing over possession of copies

mprisonment ine

Confiscation/ delivery of goods

Search & seizure of infringing goods

Service Marks

Marks Which Are Capable Of Distinguishing Services

Insurance


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Hotels

Laundry ucat on

Transport

Research Laboratories

Copyright

Ri ht To

reproduce the work ( incl. Storing ) issue copies of the work

perform work in public


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perform work in public

communicate the work to the publicma e trans ation

make adaptation

Scope

Co ri ht subsists in ori inal

literary, dramatic, musical & artistic works


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cinematographic films

sound recordings

which are first published in India

Range of Copyright Protection

Product Packaging

Scenic Arrangement

Paintings

D i ( )


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Drawings ( maps,..)

Engravings otograp s

Architectural Works

Computer Software

Research Papers Computer databases

Basic Rules

No Co ri ht in ideas, themes, rinci les

Creation must be independent

Term of the Copyright : Life + 60 years


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Term of the Copyright : Life 60 years

Registration Of Copyright not a pre-requisite

Assignment of Copyright

Owner or prospective owner(future work) may assign copyright toany person wholly/ partially & either generally or subject to

limitations and either for the whole term of copyright or any partthereof

It must be in writing, signed by the assignor or by his duly


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It must be in writing, signed by the assignor or by his dulyauthorized agent.

specify rights assigned & duration and territorial extent of suchassignment, Royalty payable

Patent

A ri ht bestowed b the state, and which ri ht vests in

an invention. a right to prevent others from making useof an invention


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Reward the inventor

-

Technical advancement

Encoura e investment in infrastructure

Increase employment opportunities

Encourage Research & Development

Patent protection emphatically stated in US Constitution

Fundamental Principal

Patent Ri ht subsists in an INVENTION

INVENTION must be

New (novel)


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( )

Useful (utility) on-o vious

What are not inventions

Frivolous Inventions Contrary To Natural Laws

Contrary To Laws Of Morality Discovery


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Co t a y o aws O Mo a ty scove y

Method Of Agriculture

Beings

Mere Admixture Mere Arrangement

Scheme, Plan Or System Computer Program

Term of Patent

A rocess of manufacture of Five ears rom sealin orsubstance used as food / seven years from date of


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medicine / drug patent whichever is shorter

Any other invention Fourteen years from date ofpatent

Design Act

A registered design includes - features of shape, configuration,Pattern, ornament or composition of lines or colors,

A lied to an article either in two or three dimensions or in bothforms by any industrial process which in the finished article appeal

d d d b h


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to and are judged by the eye.

Term : Protection for 15 years ( renewable )

Geographic Indicators

Protection ive to

indications which identify goodsas originating from/manufactured in

a particular territory


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where a given quality, reputation orot er c aracteristics o t e goo s

is essentially attributable to that region


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MMS : Semester I

Session 6


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Consumer Protection Act

Topic - 6

Consumer Rights

Right to be protected against the marketing of goods and serviceswhich are hazardous to life and property

Right to be informed about the quality, quantity, potency, purity,standard and price of goods or services so as to protect theconsumer against unfair trade practices

Right to be assured wherever possible access to a variety of


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Right to be assured , wherever possible , access to a variety of

goods and services at competitive prices Right to be heard and to be assured that consumers' interests will

receive due consideration at appropriate forums

Ri ht to seek redressal a ainst unfair trade ractices and

unscrupulous exploitation of consumers Right to consumer education

Consumer

buys any goods for a consideration (paid or promised)

includes any user of such goods other than the person who buys

such goods for consideration (paid or promised), when such use ismade with the approval of such person,

does not include a person who obtains such goods for resale or for anycommercial purpose;


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commercial purpose;

hires or avails of any services for a consideration (paid or promised)

includes any beneficiary of such services other than the person who'

does not include a person who avails of such services for any commercialpurposes;

commercial purpose does not include use by a person of goods bought and used

by him and services availed by him exclusively for the purposes of earning hislivelihood b means o sel -em lo ment

Goods

Goods" means every kind of moveable property

other than actionable claims and money;

and includes stock and shares, growing crops, grass, and thingsh d f f h l d


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attached to or forming part of the land

which are agreed to be severed before sale or under the contractof sale

Service

Service means, service of any description which is made available topotential users and includes, but not limited to, the provision

of facilities in connection with banking, financing insurance,transport, processing, supply of electrical or other energy, board oro g ng or o , ous ng cons ruc on, en er a nmen , amusemen or

the purveying of news or other information,


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but does not include the rendering o any service free o charge orunder a contract of personal service;

Commercial Purpose

A tractor purchased primarily to till the land of the purchaser andlet out on hire during the idle time to till the land of others does not

amount to commercial use

To determine weather the goods are purchased for commercialpurpose or not has to be decided on weather goods were to be used


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purpose or not has to be decided on weather goods were to be used

for profit making activities on large scale or for use in smallventures in order to make a living.

Who is a consumer

Widow of a deceased policy holder is a consumer. Consumerincludes any beneficiary of service

Consumer also includes a famil member. A minor was wron ldiagnosed and the National Commission awarded compensation toboth Minor and his parents separately


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both Minor and his parents separately

Under the act, a transaction of sale and purchase of goods shouldhave already taken place and complaint must relate either to anydefect in the oods or char in excessive rice b trader of oods

Passengers travelling by trains on payment of stipulated fare

by rail provided by railway administration is service

Who is a consumer

University in conducting examination, evaluating answer sheetsand publishing the results was not performing any service for

consideration and a candidate who appears for the examinationcannot be regarded as a Consumer Alex Rebello v/s Vice Chancellor,

anga ore n vers y


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Consumer needs protection against

Unfair trade practice

estr ct ve tra e pract ce


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Deficiencies

Restrictive Trade Practice

Manipulation of price or its conditions of delivery or to affect flowof supplies in market relating to goods or services in a manner as to

impose on consumer unjustified costs or restrictions

Collusive tendering; market fixing territorially among competing

suppliers, depriving consumers of free choice, fair competition.


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pp , p g , p

Supplying only to particular distributors or on condition of sale only

within a territory.

Delaying in supplying goods/services leading to rise in price.

Requiring a consumer to buy/hire any goods or services as a pre-

condition for buying/hiring other goods or services.

Unfair Trade Practices

Ado tin unfair methods or dece tion to romote sale, use or

supply of goods or services e.g.

Misleading public about price (e.g. bargain price when it is not so).


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Charging above MRP printed.

Mis ea ing pu ic a out anot er s goo s or services.

a se y c a m ng a sponsors p, approva or a a on.

Defects & Deficiency

De ects

Any fault, imperfection or shortcoming in the quality, quantity,potency, purity or standard which is required to be maintained

y or un er any aw or e me e ng n orce or un er any

contract express or implied or as is claimed by the trader in any


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manner whatsoever in relation to any goods.

Deficiency

, ,

quality, nature and manner of performance which is required to

be maintained by or under any law for the time being in force or

as een un erta en to e per orme y a person in pursuance

of a contract or otherwise in relation to any service.

Case Studies

Ornaments kept in the bank locker were found lost, though thecertificate by custodian of the bank stated that all lockers operated

have been checked and found properly locked. The bank was heldguilty of negligence and therefore liable to make good the loss.

un a a ona an v s . . e y


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Cancellation of train service by railways due to disturbanceinvolving violence so as to safeguard the passengers as well as itsown property does not constitute deficiency in service (Dainik RailYatri Sangh v/s General Manager, Northern Railway)

Non-delivery of a video cassette by a courier service companyresulting in complainant losing admission to the desired college was

e as e c ency n serv ce . was rea e as neg ec an a ureon the part of the courier to deliver the article entrusted to them for

carriage (Skypack Courier v/s Ms. Anupama Bagla)

Consumer Redressal Forum

mount ofCompensation You Court President

District ConsumerMust be qualified to be a


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Up to Rs. 20 Lakh Disputes RedressalMust be qualified to be a

Forum.

State Consumer Must be a erson who is

s. a o s.

Crore Disputes RedressalCommission or has been a Judge of aHigh Court.

Higher than Rs. 1

Crore

National ConsumerDisputes Redressal

Commission

Must be a person who isor has been a Judge of the

Supreme Court


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Topic 7

What is Money Laundering ?

Money laundering is the practice of disguising illegally obtainedfunds so that they seem legal. It is a crime in many jurisdictions

with varying definitions. It is a key operation of the undergroundeconomy.

Terrorism, illegal arms sales, financial crimes, smuggling andactivities of organized crime, including drug trafficking and


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prostitution rings, generate huge funds. When a criminal activitygenerates su stant a pro ts, t e n v ua or group nvo ve nsuch activity routes the funds to safe heavens by disguising thesources, changing the form, or moving funds to a place where they

.

Money Laundering Process

Placement Stage Layering Stage Integration Stage

Cash paid into bank

(sometimes with staffcomplicity or mixed with

Wire transfers abroad

(often using shellcompanies or funds

False loan repayments or

forged invoices used ascover for laundered

business).

legitimate business)..

Cash exported. Cash deposited in Complex web of transfers

Business Law - MMS - Consolidated - 1 Thru 6

Documents

Transcript of Business Law - MMS - Consolidated - 1 Thru 6