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1 CHAPTER 1 LAW AND ITS SOURCES
Introduction
Man is by nature a social being. He comes into contact with other individuals in different capacities. These contacts or associations are the inevitable consequence of modern civilization. In all these associations, he is expected to observe a Code of Conduct or a set of rules. The object of these set of rules is to make human associations possible; and ensure that members of the society may live ; and work together in an orderly and peaceful manner.
WHAT IS LAW
The word `law` is a general term and over a period of time attained different connotations to signify varied purposes.
DEFINITON OF `LAW` - ARTICLE 13 (3) OF CONSITTUTION OF INDIA

Clause 3 of Article 13 of the Constitution of India defines `law` as under (a) `law` includes any Ordinance, order, bye-law, rule, regulation, notification, custom or usage having the force of law; An amendment to an existing law is also law. `Law` in the context of the provisions of the Constitution of India may also be defined as It is an Act passed by the legislature and assented to by the President of India or Governor of a State. [Arts 111 and 200 of the Constitution of India]. Ìgnorntia juris non excusat` is a familiar maxim. This means ìgnorance of law is no excuse`. Although it is not possible for a layman to be aware of every branch lf law, yet he must acquaint himself with the general principals of the law of the country.
NEED FOR KNOWLEDGE OF `LAW`
EXTENT OF LAWS MADE BY LEGISLATIVE BODIES

Article 245 of the Constitution of India empowers the Parliament and the Legislature of a State to make laws for the country and the State respectively. Article 245, inter alia, stipulates as under: Article 245 Extent of laws made by Parliament and by the Legislatures of States The Parliament may make laws for the whole or any part of the territory of India, and The Legislature of a State may make laws for the whole or any part of the State. The law made by Parliament may have extra-territorial operation. The Constitution of India has put certain limitations on the legislative powers of the Parliament as well the State Assembly.
SUBJECT MATTER OF LAWS MADE BY LEGISLATIVE BODIES

Article 246 of the Constitution, inter alia, provides for the subject matter of laws to be made by Parliament and by the Legislatures of States. The subject matters have been specified in the Seventh Schedule to the Constitution. Parliament - Exclusive power relating to any of the matters enumerated in List I. ("Union List"contains 97 Entries). The State Legislature - Exclusive power relating any of the matters enumerated in List II. ('State List'contains 66 Entries). Parliament besides the State Legislature Empowered to make laws relating to matters enumerated in List III ("Concurrent List" contains 47 Entries). Parliament has power to make laws with respect to any matter for any part of the territory of India not included in a State notwithstanding that such matter is a matter enumerated in the State List.
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List I Union List. It has 97 entries. It contains those subjects which are of national interest or importance or which need national control and uniformity of policy throughout the country. Example: - Defence, Air Force, Atomic Energy, Foreign Affairs, Income Tax, CBI, Banking, Insurance, Reserve Bank of India, Incorporation, regulation and winding of up of corporations, Stock Exchange, Bills of exchange, Patents, Railways, Judges of Supreme Court and High Courts etc. List II State List. It has 66 entries. It contains such subjects, which are of local (State) interest and on which the local control is more expedient. Example: - Public Order, Police, local Government, public health and sanitation, trade and commerce within the State, fairs, betting and gambling etc. List III Concurrent List. It has 47 entries. It contains such subject, which though are of local importance yet need uniformity on national level or at least some parts of the country i.e. with respect to more than one State. Example: - Criminal Law, Education, Marriage and divorce, Transfer of Property, Contracts, Social Security etc.
Residuary Legislative Powers

Article 248 of the Constitution further empowers the Parliament with the residuary powers of legislation to make any law with respect to any matter not enumerated in the Concurrent List or State List. Such power shall include the power of making any law imposing a tax not mentioned in either of those Lists.
LECTURES BY PROF. S N GHOSH
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3 CHAPTER 01 INDIAN CONTRACT ACT 1872
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LAW & SOURCES
INTRODUCTION The Law of Contract deals with the law relating to the general principles of contract. It is the most important part of Mercantile Law. It affects every person in one way or the other, as all of us enter into some kind of contract everyday.
Since this law was not happily worded, two subsequent legislations namely Indian Sale of Goods Act Sections 76 to 123 of the Indian Contract Act 1872 were repealed; and Partnership Act was also enacted and Sections 239 to 266 of the Contract Act were also repealed.
What is `Contract`
The term `Contract` is defined in Section 2(h) of the Indian Contract Act, which reads as under An agreement enforceable by law is a contracts. The analysis of this definition shows that a contract must have the following two elements: 1. An agreement, and 2. The agreement must be enforceable by law. In other words: Contract = An Agreement + Enforceability (by law)
Agreement (Section 2(e)

Every promise and every set of promises forming the consideration for each other is an agreement. Promise (Section 2(b)) A proposal when accepted becomes a promise. Every agreement is not a contract. When an agreement creates some legal obligations and is enforceable by law, it is regarded as a contract.
1.1 ESSENTIAL ELEMENTS OF CONTRACT

1. 2. 3. 4. 5. 6. 7. 8. 9. Ex Agreement Intention to create legal relationship Free and genuine consent. Parties competent to contract. Lawful consideration. Lawful object. Agreement not declared void or illegal. Certainty of meaning. Possibility of performance.
Where 'A' who owns 2 cars x and y wishes to sell car 'x' for Rs. 30,000. 'B', an acquaintance of 'A' does not know that' A' owns car 'x' also. He thinks that' A' owns only car 'y' and is offering to sell the same for the stated price. He gives his acceptance to buy the same. There is no contract because the contracting parties have not agreed on the same thing at the same time, 'A' offering to sell his car 'x' and 'B' agreeing to buy car or'. There is no consensus-adidem.
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CLASSIFICATION OF CONTRACTS 1. Classification according to validity or enforceability.

a) b) c) d) e)
Valid Voidable Void contracts or agreements Illegal. Unenforceable
2. Classification according to Mode of formation

(i) Express contract (ii) Implied contract
3. Classification according to Performance

(i) (ii) (iii) (iv)
Executed contract Executory contract. Unilateral Contract Bilateral Contract
OFFER AND ACCEPTANCE [Sections 3-9] OFFER What is Òffer/Proposal`

A Proposal is defined as "when one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other to such act or abstinence, he is said to make a proposal." [Section 2(a)].
How an Offer is made?

An offer can be made by (a) any act or
(b) omission of the party proposing by which he intends to communicate such proposal or which has the effect of communicating it to the other (Section 3).
CASE EXAMPLE In Carbolic Smoke Ball Co. 's case, the patent-medicine company advertised that it would give a reward of 100 to anyone who contracted influenza after using the smoke balls of the company for a certain period according to the printed directions. Mrs. Carlill purchased the advertised smoke ball and contracted influenza in spite of using the smoke ball according to the printed instructions. She claimed the reward of 100. The claim was resisted by the company on the ground that offer was not made to her and that in any case she had not communicated her acceptance of the offer. She filed a suit for the recovery of the reward. Held: She could recover the reward as she had accepted the offer by complying with the terms of the offer.)
ESSENTIAL REQUIREMENTS OF A VALID OFFER

I. An offer must have certain essentials in order to constitute it a valid offer. These are: The offer must be made with a view to obtain acceptance.
2. The offer must be made with the intention of creating legal relations. [Balfour v. Balfour (1919) 2 K.B.57Il
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1. The terms of offer must be definite, unambiguous and certain or capable of being made certain. The terms of the offer must not be loose, vague or ambiguous.
4. An offer must be distinguished from (a) a mere declaration of intention or (b) an invitation to offer or to treat. An auctioneer, at the time of auction, invites offers from the would-be-bidders. He is not making a proposal. A display of goods with a price on them in a shop window is construed an invitation to offer and not an offer to sell. Offer vis-a-vis Invitation to offer An offer must be distinguished from invitation to offer. A prospectus issued by a company for subscription of its shares by the members of the public, is an invitation to offer. The Letter of Offer issued by a company to its existing shareholders is an offer. 5. The offer must be communicated to the offeree. An offer must be communicated to the offeree before it can be accepted. This is true of specific as sell as general offer. 6. The offer must not contain a term the non-compliance of which may be assumed to amount to acceptance.
Cross Offers
Where two parties make identical offers to each other, in ignorance of each other's offer, the offers are known as cross-offers and neither of the two can be called an acceptance of the other and, therefore, there is no contract.
TERMINATION OR LAPSE OF AN OFFER

An offer is made with a view to obtain assent thereto. As soon as the offer is accepted it becomes a contract. But before it is accepted, it may lapse, or may be revoked. Also, the offeree may reject the offer. In these cases, the offer will come to an end. 1) The offer lapses after stipulated or reasonable time 2) An offer lapses by the death or insanity of the offeror or the offeree before acceptance. 3) An offer terminates when rejected by the offeree. 4) An offer terminates when revoked by the offeror before acceptance. 5) An offer terminates by not being accepted in the mode prescribed, or if no mode is prescribed, in some usual and reasonable manner. 6) A conditional offer terminates when the condition is not accepted by the offeree. (7) Counter Offer
ACCEPTANCE
Acceptance has been defined as "When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted.
Acceptance how made

The offeree is deemed to have given his acceptance when he gives his assent to the proposal. The assent may be express or implied. It is express when the acceptance has been signified either in writing, or by word of mouth, or by performance of some required act. Ex- A enters into a bus for going to his destination and takes a seat. From the very nature, of the circumstance, the law will imply acceptance on the part of A.] In the case of a general offer, it can be accepted by anyone by complying with the terms of the offer.
ESSENTIALS OF A VALID ACCEPTANCE 1) Acceptance must be absolute and unqualified.

2) Acceptance must be communicated to the offeror. 3) Acceptance must be according to the mode prescribed. Ex- A sends an offer to B through post in the usual course. B should make the acceptance in the "usual and reasonable manner" as no mode of acceptance is prescribed. He may accept the offer by sending a letter, through post, in the ordinary course, within a reasonable time.
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6 COMMUNICATION OF OFFER, ACCEPTANCE AND REVOCATION

As mentioned earlier that in order to be a valid offer and acceptance. (i) the offer must be communicated to the offeree, and (ii) the acceptance must be communicated to the offeror. The communication of acceptance is complete:
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(i) as against the proposer, when it is put into a course of transmission to him, so as to be out of the power of the acceptor; (ii) as against the acceptor, when it comes to the knowledge of the proposer. ExA proposes, by letter, to sell a house to B at a certain price. B accepts A's proposal by a letter sent by post. The communication of acceptance is complete: (i) as against A, when the letter is posted by B; (ii) as against B, when the letter is received by A. The communication of a revocation (of an offer or an acceptance) is complete: (1) as against the person who makes it, when it is put into a course of transmission to the person to whom it is made, so as to be out of the power of the person who makes it. (2) as against the person to whom it is made when it comes to his knowledge. ExA revokes his proposal by telegram. The revocation is complete as against A, when the telegram is dispatched. It is complete as against B, when B receives it. Revocation of proposal and acceptance: A proposal may be revoked at any time before the communication of its acceptance is complete as against the proposer, but not afterwards. ExA proposes, by a letter sent by post, to sell his house to B. B accepts the proposal by a letter sent by post. A may revoke his proposal at any time before or at the moment when B posts his letter of acceptance, but not afterwards. B may revoke his acceptance at any time before or at the moment when the letter communicating it reaches A, but not afterwards.
CAPACITY TO CONTRACT (Sections 10-12) WHO ARE NOT COMPETENT TO CONTRACT

The following are considered as incompetent to contract, in the eye of law: -
(A) LIVING PERSON (1) Minor: (i) (ii) (iii) (iv) (v) A contract with or by a minor is void and a minor, therefore, cannot, bind himself by a contract. A minor's agreement cannot be ratified by the minor on his attaining majority. If a minor has received any benefit under a void contract, he cannot be asked to refund the same. A minor cannot be a partner in a partnership firm. A minor's estate is liable to a person who supplies necessaries of life to a minor.
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CASE EXAMPLE
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In 1903 the Privy Council in the leading case of Mohiri Bibi v. Dharmodas Ghose (190,30 Ca. 539) held that in India minor's contracts are absolutely void and not merely voidable. The facts of the case were:
Dharmodas Ghose, a minor, entered into a contract for borrowing a sum of Rs. 20,000 out of which the lender paid the minor a sum of Rs. 8,000. The minor executed mortgage of property in favour of the lender. Subsequently, the minor sued for setting aside the mortgage. The Privy Council had to ascertain the validity of the mortgage. Under Section 7 of the Transfer of Property Act, every person competent to contract is competent to mortgage. The Privy Council decided that Sections 10 and 11 of the Indian Contract Act make the minor's contract void. The mortgagee prayed for refund of Rs. 8,000 by the minor. The Privy Council further held that as a minor's contract is void, any money advanced to a minor cannot be recovered.
(2) Mental Incompetence

A person is said to be of unsound mind for the purpose of making a contract, if at the time when he makes it, he is incapable of understanding it, and of forming a rational judgement as to its effect upon his interests. A person, who is usually of unsound mind, but occasionally of sound mind, may make a contract when he is of sound mind. Ex- A patient, in a lunatic asylum, who is at intervals, of sound mind; may contract during those intervals.
A sane man, who is delirious from fever or who is so drunk that he cannot understand the terms of a contract or form a rational judgement as to its effect on his interest, cannot contract whilst such delirium or drunkenness lasts.
(3) Incompetence through Status

(i) Alien Enemy (Political Status) (ii) Foreign Sovereigns and Ambassadors (iii) Company under the Companies Act or Statutory Corporation by passing Special Act of Parliament (Corporate status) (iv) Insolvent Persons
(B) CORPORATE
When under liquidation (under the supervision of the Court/Tribunal)
FREE CONSENT (Sections 10; 13-22) What is the meaning of `CONSENT` (SECTION 13)
When two or more persons agree upon the same thing in the same sense, they are said to consent.
Ex-
A agrees to sell his Fiat Car 1983 model for Rs. 80,000. B agrees to buy the same. There is a valid contract since A and B have consented to the same subject matter. What is meant by `Free Consent`
Consent is said to be free when it is not caused by
Causes affecting contract 1. Coercion Consequences Contract voidable LECTURES BY PROF. S N GHOSH
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2. Undue influence 1. Fraud
4. Misrepresentation 5. Mistake (i) of fact (a) Bilateral (b) Unilateral (ii) of Fact Void Generally not invalid Void Contract voidable Contract voidable Contract voidable
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Ex (i) A railway company refuses to deliver certain goods to the consignee, except upon the payment of an illegal charge for carriage. The consignee pays the sum charged in order to obtain the goods. He is entitled to recover so much of the charge as was illegally excessive. (ii) The directors of a Tramway Co. issued a prospectus stating that they had the right to run tramcars with steam power instead of with horses as before. In fact, the Act incorporating the company provided that such power might be used with the sanction of the Board of Trade. But, the Board of Trade refused to give permission and the company had to be wound up. P, a shareholder sued the directors for damages for fraud. The House of Lords held that the directors were not liable in fraud because they honestly believed what they said in the prospectus to be true. [Derry v. Peek (1889) 14 A.C. 337].
CONSIDERATION [Sections 2(d), 10,23-25, 148, 185] Definition

Consideration is what a promisor demands as the price for his promise. In simple words, it means 'something in return.'
Consideration has been defined as

"When at the desire of the promisor, the promisee or any other person has done or abstained from doing, or does or abstains from doing, or promises to do or promises to abstain from doing something, such act or abstinence or promise is called a consideration for the promise."
IMPORTANCE OF CONSIDERATION
A promise without consideration is purely gratuitous and, however sacred and binding in honour it may be, cannot create a legal obligation. A person who makes a promise to do or abstain from doing something usually does so as a return or equivalent of some loss, damage, or inconvenience that may have been occasioned to the other party in respect of the promise. The benefit so received and the loss, damage or inconvenience so caused is regarded in law as the consideration for the promise.
KINDS OF CONSIDERATION
A consideration may be:
1. 2.
Executed or Present Executory or Future
LEGALITY OF OBJECT (Sections 23, 24)

An agreement will not be enforceable if its object or the consideration is unlawful. According to Section 23 of the Act, the consideration and the object of an agreement are unlawful in the following cases:
What consideration and objects are unlawful agreement VOID

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If it is forbidden by law
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1.
2. If it is of such a nature that if permitted, it would defeat the provisions of any law.
1. If it is fraudulent. An agreement with a view to defraud other is void. 4. If it involves or implies injury to the person or property of another. If the object of an agreement is to injure the person or property of another it is void. 5. If the Court regards it as immoral or opposed to public policy. An agreement, whose object or consideration is immoral or is opposed to the public policy, is void. ExA partnership entered into for the purpose of doing business in arrack (local alcoholic drink) on a licence granted only to one of the partners, is void ab-initio whether the partnership was entered into before the licence was granted or afterwards as it involved a transfer of licence, which is forbidden and penalised by the Akbari Act and the rules thereunder [Velu Payaychi v. Siva Sooriam, AIR (1950) Mad. 987].
VOID and VOIDABLE Agreements (Sections 26-30) Void agreement

1. The following are the additional grounds declaring agreements as void: (i) Agreements by person who are not competent to contract. (ii) Agreements under a mutual mistake of fact material to the agreement. (iii) Agreement with unlawful consideration. (iv) Agreement without consideration. (Exception if such an agreement is in writing and registered or for a past consideration) (v) Agreement in restraint of marriage. (vi) Agreement in (absolute) restraint of trade (vii) Agreements in restrain of legal proceedings, (viii) Agreements void for uncertainty (Agreements, the meaning of which is not certain, or capable of being made certain) (ix) Agreements by way of wager (a promise to give money or money's worth upon the determination or ascertainment of an uncertain event) (x) Agreements against Public Policy (xi) Agreements to do impossible act.
Voidable agreements
An agreement, which has been entered into by misrepresentation, fraud, coercion is voidable, at the option of the aggrieved party.
CONTINGENT CONTRACTS (SECTIONS 31-36)

A contingent contract is a contract to do or not to do something, if some event, collateral to such contract does or does not happen.
When a contingent contract may be enforced
Contingent contracts may be enforced when that uncertain future event has happened. If the event becomes impossible, such contracts become void.
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ESSENTIAL ELEMENTS OF A CONTINGENT CONTACT There must be a valid contract. The performance of the contract must be conditional. The even must be uncertain. The event must be collateral to the contact. The event must be an act of the party. The event should not be the discretion of the promisor.
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1. 2. 3. 4. 5. 6.
QUASI CONTRACTS [SECTIONS 68- 72]

The term `quasi contract` may be defined as a ` contract which resembles that created by a contract.` as a matter of fact, `quasi contract` is not a contract in the strict sense of the term, because there is no real contract in existence. Moreover, there is no intention of the parties to enter into a contract. It is an obligation, which the law creates in the absence of any agreement. CIRCUMSTANCES OF QUASI CONTRACTS Following are to be deemed Quasi-contracts. (i) Claim for Necessaries Supplied to a person incapable of Contracting or on his account. (ii) Reimbursement of person paying money due by another in payment of which he is interested. Obligation of a person enjoying benefits of non-gratuitous act. (iii) Responsibility of Finder of Goods (iv) Liability of person to whom money is paid, or thing delivered by mistake or under coercion Ex-
A, who supplies the wife and children of B, a lunatic, with necessaries suitable to their conditions in life, is entitled to be reimbursed from B's property. PERFORMANCE OF CONTRACTS [SECTIONS 37-67] Offer to perform or tender of performance
According to Section 38, if a valid offer/tender is made and is not accepted by the promisee, the promisor shall not be responsible for non-performance nor shall he lose his rights under the contract. A tender or offer of performance to be valid must satisfy the following conditions: 1. It must be unconditional. 2. It must be made at proper time and place, and performed in the agreed manner. WHO MUST PERFORM Promisor - The promise may be performed by promisor himself, or his agent or by his legal representative. Agent - the promisor may employ a competent person to perform it. Legal Representative - In case of death of the promisor, the Legal representative must perform the promise unless a contrary intention appears from the contract.
CONTRACTS, WHICH NEED NOT BE PERFORMED

I. If the parties mutually agree to substitute the original contract by a new one or to rescind or alter it
2. If the promisee dispenses with or remits, wholly or in part the performance of the promise made to him or extends the time for such performance or accepts any satisfaction for it. 1. If the person, at whose option the contract is voidable, rescinds it.
4. If the promisee neglects or refuses to afford the promisor reasonable facilities for the performance of his promise.
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DISCHARGE OF CONTRACTS [Sections 73-75]
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The cases in which a contract is discharged may be classified as follows: A. By performance or tender B.
By mutual consent A contract may terminate by mutual consent in any of the following ways: -
a. Novation (substitution) b. Recession (cancellation) c. Alteration

C. D. E. By subsequent impossibility By operation of law By breach
REMEDIES FOR BREACH OF CONTRACT (SECTIONS 73-75)

As soon as either party commits a breach of the contract, the other party becomes entitled to any of the following reliefs: a) Recession of the contract
b) Damages (monetary compensation)
c) Specific performance d) Injunction e) Quantum meruit Ex

A, a singer contracts with B, the manager of a theatre, to sing at his theatre for two nights in every week during the next two months, and B engages to pay her Rs. 100 for each nights performance. On the sixth night, A wilfully absents herself from the theatre and B in consequence, rescinds the contract. B is entitled to claim compensation for the damages for which he has sustained through the non-fulfilment of the contract.
CONTRACT OF AGENCY [SECTION 182 238]

Who is an Àgent` An agent is defined as a "person employed to do any act for another or to represent another in dealings with third person". In other words, an agent is a person who acts in place of another. The person for whom or on whose behalf he acts is called the Principal. Agency is therefore, a relation based upon an express or implied agreement whereby one person, the agent, is authorised to act for another, his principal, in transactions with third person. The function of an agent is to bring about contractual relations between the principal and third parties.
WHO CAN EMPLOY AN AGENT

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WHO MAY BE AN AGENT
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Any person, who is capable to contract may appoint as agent. Thus, a minor or lunatic cannot contract through an agent since they cannot contract themselves personally either.
In considering the contract of agency itself (i.e., the relation between principal and agent), the contractual capacity of the agent becomes important.
HOW AGENCY IS CREATED A contract of agency may be created by in any of the following three ways: (1) Express Agency (2) (3) (4) (5) (6) Implied Agency Agency by Estoppel Agency by Holding Out Agency of Necessity Agency By Ratification
DUTIES OF AGENT 1. To conduct the business of agency according to the principal's directions
2. The agent should conduct the business with the skill and diligence that is generally possessed by persons engaged in similar business, except where the principal knows that the agent is wanting in skill. 3. To render proper accounts. 4. To use all reasonable diligence, in communicating with his principal, and in seeking to obtain his instructions.
5. Not to make any secret profits

6. Not to deal on his own account 7. Agent not entitled to remuneration for business misconducted. 8. An agent should not disclose confidential information supplied to him by the principal [Weld Blundell v. Stephens (1920) AC. 1956]. 9. When an agency is terminated by the principal dying or becoming of unsound mind, the agent is bound to take on behalf of the representatives of his late principal, all reasonable steps for the protection and preservation of the interests entrusted to him.
RIGHTS OF AN AGENT
1. Right to remuneration 2. Right Of Retainer 1. Right of Lien 4. Right of Indemnification 5. Right to compensation for injury caused by principals neglect
PRINCIPAL'S DUTIES TO AGENT

A principal is:
(i) bound to indemnify the agent against the consequences of all lawful acts done by such agent in exercise of the authority conferred upon him;
(ii) liable to indemnify an agent against the consequences of an act done in good faith. (iii) The principal must make compensation to his agent in respect of injury caused to such agent by the principal's neglect or want of skill.
TERMINATION OF AGENCY
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1. By revocation by the Principal. 2. On the expiry of fixed period of time. 1. On the performance of the specific purpose. 4. Insanity or Death of the principal or Agent. 5. An agency shall also terminate in case subject matter is either destroyed or rendered unlawful. 6. Insolvency of the Principal. Insolvency of the principal, not of the agent, terminates the agency. 7. By renunciation of agency by the Agent.
CHAPTER 03 SALE OF GOODS ACT 1930

Originally, the law relating to sale of goods was contained in Chapter VII of the Indian Contract Act, 1872. The same was repealed and re-enacted by the Sale of Goods Act, III of 1930.
FORMATION OF THE CONTRACT OF SALE Definition (Section 4)

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 price".
ESSENTIALS OF CONTRACT OF SALE

From the above definition, the following essentials of a contract of sale may by noted: 1. There must be at least two parties 2. Transfer or Agreement to transfer the ownership of goods. 3. The subject matter of the contract must necessarily be 'goods'. 4. The consideration is Price. 3. A Contract of sale may be absolute or conditional 6. All other essentials of a valid contract must be present.
`SALE` AND 'AGREEMENT TO SELL' DISTINGUISHED

Sale: It is a contract where the ownership in the goods is transferred by seller to the buyer immediately at the conclusion contract. Thus, strictly speaking, sale takes place when there is a transfer of property in goods from the seller to the buyer. A sale is an executed contract. It must be noted here that the payment of price is immaterial to the transfer of property in goods. Ex LECTURES BY PROF. S N GHOSH
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A sells his Yamaha Motor Bicycle to B for Rs. 10,000. It is a sale since the ownership of the motorcycle has been transferred from A to B. Agreement to sell: It is a contract of sale where the transfer of property in goods is to take place at a future date or subject to some condition thereafter to be fulfilled. Ex-
(i) A agreed to buy from B a certain quantity of nitrate of soda. The ship carrying the nitrate of soda was yet to arrive. This is àn agreement to sale`. In this case, the ownership of nitrate of soda is to be to transferred to A on the arrival of the ship containing the specified goods (i.e. nitrate of soda) [Johnson V Mcdonald (1842) 9 M & W 600, 60 RR 838] (ii) On 1st March 1998, A agreed to sell his car to B for Rs. 80,000. It was agreed between themselves that the ownership of the car will transfer to B on 31st March 1998 when the car is got registered in B`s name. It is an agreement to sell and it will become sale on 31st March when the car is registered in the name of B.
Other points of distinction between a sale and an agreement to sell are: Sale 1. A sale is an executed contract. Agreement to sell 1. An Agreement to sell is an executory contract. 2. In an agreement to sell, in case of breach, the seller can only sue for damages, unless the price was payable at a stated date. 3. An agreement to sell creates a right in personam. 4. The loss in this case shall be borne by the seller, even though the goods are in the possession of the buyer.
2. In a sale, since the property has passed to the buyer, the seller can sue the buyer for the price of the goods.
3. A sale creates a right in rem. 4. In case of loss of goods, the loss will fall on the buyer, even though the goods are in the possession of the seller. It is because 'Risk' is associated with ownership.
5. In these circumstances, the buyer cannot claim the goods but only a rateable dividend for the money paid. 6. In these circumstances, the seller can refuse to deliver the goods to the Official Assignee or Receiver.
3. In case buyer pays the price and the seller thereafter becomes an insolvent, the buyer can claim the goods from the Official Receiver or Assignee.
6. If the buyer becomes an insolvent without paying the price, the ownership having passed to the buyer, the seller shall have to deliver the goods to the Official Assignee or Receiver except where he has a lien over the goods.
Sale and Hire Purchase Agreement Hire Purchase Agreement

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LAW & SOURCES
It is an agreement for hire, with an option to purchase. The hirer, under this agreement, is required to pay every month a particular sum of money, and if he pays in that way for a fixed number of months, the hirer will become the owner of the goods on the payment of the last instalment. But, if the hirer fails to pay any particular instalment, the owner can terminate the contract and take away the goods, because the ownership continues to remain in the owner. A "Hire-purchase agreement" is distinct from "Sale" in which price is payable by instalments A 'Hire-purchase agreement,' does not result in passing of the property unless the option to purchase is exercised, usually by payment of all the instalments. Till such time, it constitutes bailment.
Sale
ln case of sale, the property passes as soon as sale is made though price has not been fully paid. In determining as to whether a particular contract belongs to one type or the other, regard shall have to be paid to the fact whether the hirer has merely an option to purchase, or whether he has bought or agreed to buy the goods.
3.2 GOODS Definition of `GOODS` under the Act

'Goods' means every kind of moveable property and includes stock and shares, growing crops, grass, and things attached to or forming part of the land, which are agreed to be severed before sale or under the contract of sale. Thus, goods include every kind of moveable property other than actionable claim or money. Example goodwill, copyright, trademark, patents, water, gas, and electricity are all goods and may be the subject matter of a contract of sale. The TEST IS - if the property on shifting its situation, does not lose its character, the said property shall be movable and fall within the definition of `Goods`.
CLASSIFICATION OF GOODS
Goods may be classified into: 1. Existing Goods - Existing goods are those, which are owned or possessed by the seller at the time of the contract. Instances of sale of goods possessed but not owned by the sellers fire sales by agents and pledgees.
Existing goods may be either:

(a) Specific and Ascertained goods identified and agreed upon at the time a contract of sale is made; or
(b) Generic and Unascertained - goods arc goods indicated by description and not specifically identified. 2. Future Goods - Future goods" means goods to be manufactured or produced or acquired by the seller after making the contract of sale. 3. Contingent Goods - Contingent goods are the goods the acquisition of which by the seller depends upon a contingency which mayor may not happen. Contingent goods are a part of future goods.
3.3 PRICE
'Price' means the money consideration for sale of the goods. 'Price' is an integral part of a contract of sale. If it is not fixed or is not capable of being fixed, the whole contract is void ab-initio. The price may be fixed (I) by the contract or (II) may be agreed to be fixed in a manner provided by the contract, e.g., by a valuer, or (III) it may be determined by the course of dealings between the parties. (IV) in case, price is not capable of being fixed in any of the above ways, the buyer is bound to pay reasonable price. What is reasonable price will vary from case to case.
5.4 CONDITIONS AND WARRANTIES [Sections 11-17]

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In a contract of sale, parties make certain stipulations, i.e., agree to certain terms. Some of them may be intended by the parties to be of a fundamental nature, e.g., quality of the goods to be supplied. The stipulation essential to the main purpose of the contract, the breach of which gives rise to a right to treat the contract as repudiated. Such stipulations are known as `Conditions`. In contrast, some may be intended by the parties to be binding, but of a subsidiary or inferior character, e.g., time of payment. Thus, stipulation collateral to the main purpose of the contract, the breach of which gives rise to a claim for damages but not to a right to reject the goods. Here the stipulations are known as `warranties'.
DISTINCTION BETWEEN 'CONDITION' AND 'WARRANTY'

Condition 1. A condition is a stipulation (in a contract), which is essential to the main purpose of the contract. 2. A breach of condition gives the aggrieved party a right to sue for damages as well as the right to repudiate the contract. 3. A breach of condition may be treated as a breach of warranty in certain circumstances. Warranty 1. A warranty is a stipulation, which is only collateral or subsidiary to the main purpose of the contract. 2. A breach of warranty gives only the right to sue for damages. The contract cannot be repudiated. 3. A breach of warranty cannot be treated as a breach of condition.
ExA man buys a particular horse, which is warranted quiet to ride and drive. If the horse turns out to be vicious, the buyer's only remedy is to claim damages. But if instead of buying a particular horse, a man asks a dealer to supply him with a quiet horse and the horse turns out to be vicious, the stipulation is a condition and the buyer can reject the horse, or keep the horse and claim damages.
WHEN CONDITION TO BE TREATED AS WARRANTY [SECTION 13]

Under the following circumstances a breach of condition is to be treated as a breach of warranty, i.e., the right to repudiate the contract is deemed to have been lost: 1. Waiver of Condition 2. Compulsory treatment of breach of condition as breach of Warranty.
EXPRESS AND IMPLIED CONDITIONS AND WARRANTIES

Conditions and Warranties may be either express or implied. They are said to be "express" when the terms of the contract expressly provide for them. They are said to be 'implied' when the law deems their existence in the contract even without their actually having been put in the contract.
(A) IMPLIED CONDITIONS

The following are the implied conditions (1) Condition as to Title (2) Sale by Description (3) Condition as to Quality or Fitness (4) Merchantable Quality
Sale by sample - A contract of sale is a contract for sale by sample where there is a term in the contract, express
or implied, to that effect. In a sale by sample, the following are the implied conditions: 1. The bulk shall correspond with the sample in quality; 2. That the buyer shall have a reasonable opportunity of comparing the bulk with the sample; and
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3. That the goods shall be free from any defects rendering them unmerchantable, which would not be apparent on reasonable examination of the sample.
Ex(i) Certain shoes were sold by sample for the French Army. The shoes were found to contain paper not discoverable by ordinary inspection. Held, the buyer was entitled to the refund of price plus damages. (ii) In a contract for the sale of brandy by sample, the brandy that was supplied had been coloured with a dye. Held, the buyer was not bound by the contract, though the bulk corresponded with sample, since the defect could not have been located on reasonable examination of the sample [Mody v. Gregson (1868) L.R.4Ex. 49.].
(B) IMPLIED WARRANTIES

There are two implied warranties. These are: 1. Warranty of Quiet Possession 2. Warranty of Freedom from Encumbrances Ex A purchased a second hand typewriter from B. A used it for sometime and also spend some money on its repairs. The typewriter turned out to be stolen one and as such A had to return it to the true owner. It was held that A could recover damages from B amounting to the price paid and the cost of repair [Mason v. Burmingham (1949) 2 KB 545]
3.5 DOCTRINE OF CAVEAT EMPTOR

Caveat Emptor is a fundamental principle of the law of sale of goods. It means "Caution Buyer", i.e. "Let the buyer beware". In other words, it is not the duty of the seller's duty to point out defects of his own goods. The buyer must inspect the goods to find out if they will suit his purpose.
ExPigs were sold "subject to all faults", and these pigs, being infected, caused typhoid to other healthy pigs of the buyer, it was held that the seller was not bound to disclose that the pigs were unhealthy. The rule of the law being 'Caveat Emptor'. [Goddard v. Hobbs 1878, 4 App. Cas. 13].
Exceptions
1. Where the seller makes a false representation and buyer relies on that representation. The rule of "Caveat Emptor" will not apply and the buyer will be entitled to the goods according to that representation; 2. Where the seller actively conceals a defect in the goods, so that on a reasonable examination the same could not be discovered; 3. Where the buyer makes known to the seller the purpose for which he is buying the goods, and the seller happens to be a person whose business is to sell goods of that description, then there is an implied condition that the goods shall be reasonably fit for such purpose. The rule of Caveat Emptor will not apply; 4. In case of sale by description, there is implied condition as to their being of merchantable quality. However, if the buyer has examined the goods, this condition of "merchantability" extends only to hidden or latent defects. The defects, which such examination ought to have revealed, are not covered, i.e., the rule of Caveat Emptor will be applicable.
Ex In Donoghue v. Stevenson (the `snail in the ginger-beer `case) it was held that manufacturers owed a duty to the ultimate consumer to take care in making their goods where there is no likelihood of their being examined before they reach the ultimate consumer.
3.6 TRANSFER OF TITLE BY NON-OWNERS

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Ex-
The general rule is that only the owner of goods can transfer a good title. No one can give a better title than he himself has. This rule is expressed by the maxim "Nemo dat quod non habet" which means "that no one can give what he himself has not" If the seller, therefore, has no title, or a defective title, the buyer's title will be equally wanting or defective as the case may be, though he may be a purchaser - bonafide and for value.
A finds a ring of B and sells it to a third person who purchases it for value and in good faith. The true owner, i.e., B can recover from that person, for A having no title could pass none the better. [Faruquaharson v. King (1902) A.C. 323.). Exceptions to the Rule
1. Sale by Mercantile Agent 2. Sale by a Joint-owner 3. Sale by a Person in Possession under a Voidable Contract 4. Sale by the Seller in Possession of Goods after Sale 3. Sale by an unpaid DUTIES OF THE SELLER AND BUYER
Duty of the seller a) To deliver the goods, in accordance with the terms of the contract of sale. b) Delivery and payment of price are concurrent conditions. c) The seller of goods has the duty of giving delivery according to the terms of the contract. Duty of the buyer a) Pay for the goods; b) Accept delivery; and c) Pay compensation to the seller in case he wrongfully refuses to accept delivery.
DELIVERY
It has been defined as a voluntary transfer of possession from one person to another.. Delivery of the goods may, be: I. Physical or Actual Delivery 2. Symbolic Delivery - e.g., delivery of a railway receipt properly endorsed, or delivery of the key of a warehouse; 3. Constructive Delivery or Attornment - only an acknowledgement by the person in possession that he holds them on behalf of another.
3.7 UNPAID SELLER AND HIS RIGHTS

A contract is comprised of reciprocal promises, in a contract of sale, if seller is under an obligation to deliver goods; buyer has to pay for it. In case buyer fails or refuses to pay, the seller, as an unpaid seller, shall have certain rights.
Who is an unpaid seller An unpaid seller of goods is a person who has not been paid the whole of the price or to whom the whole of the price has not been tendered. The term "seller" includes an agent of the seller. The seller of goods is deemed to be an "unpaid seller" if:
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(a) the whole of the price, has not been paid or tendered; (b) when a bill of exchange or other negotiable instrument has been received as conditional payment, and the condition on which it was received has not been fulfilled by reason of the dishonour of the instrument or otherwise.
Rights of an unpaid seller

Rights of an unpaid seller may broadly be classified under two heads namely: 1. Rights against goods An unpaid seller has the following rights against the goods:
(a) Lien on the goods (b) A right of stoppage in transit (c) A right of re-sale
2. Rights Against the Buyer Personally An unpaid seller, besides his rights against goods, has the following rights against the buyer personally: (i) Right to sue for the price; and (ii) the right to sue the buyer for damages for non-acceptance.
CHAPTER 04
NEGOTIABLE INSUTRUMENTS ACT 1881

4.01 DEFINITION OF A NEGOTIABLE INSTRUMENT [SECTION 13]
The word 'negotiable' means transferable from one person to another, and the term 'instrument' means 'any written document by which a right is created in favour of some person.' Thus, the negotiable instrument is a document by which rights vested in a person can be transferred to another person in accordance with the provisions of the Negotiable Instruments Act, 1881. The term 'negotiable instrument' has been defined as - A 'negotiable instrument' means a promissory note, bill of exchange or cheque payable either to order or to bearer."
MAIN FEATURES OF A NEGOTIABLE INSTRUMENT

An instrument may be negotiable either by (1) Statute - Promissory notes, bills of exchange and cheques are negotiable instruments under the Negotiable Instruments Act, 1881; or (2) By usage - Bank notes, bank drafts, share warrants, bearer debentures, dividend warrants, scripts and treasury bills
An instrument is to be called 'negotiable' if it possesses the following characteristic features: 1) Freely transferable - Transferability may be by
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2)
3) 4) 5)
(a) delivery, or (b) by endorsement and delivery. Holder's title free from defects: The holder (of the negotiable instrument) in due course acquires a good title not withstanding any defect in a previous holder's title. A holder in due course is one who receives the instrument for value and without any notice as to the defect in title of the transferor. The Holder can sue in his own Name - Another characteristic feature of a negotiable instrument, is that its holder in due course, can sue on the instrument in his own name. A negotiable instrument can be transferred infinitum, i.e., can be transferred any number of times till its maturity. A negotiable instrument is subject to certain presumptions.
Presumptions as to negotiable instruments [Sections 118-119]

1) As to Consideration 2) As to date 3) As to Acceptance 4) As to Transfer 5) As to the order of 6) As to lost Instruments. 7) As to holder-in-due course 8) As to dishonour
4.02 PROMISSORY NOTE [Section 4] Definition

A promissory note is an instrument in writing (not being a bank note or a currency note) containing an unconditional undertaking, signed by the maker to pay a certain sum of money to, or to the order of, a certain person or to the bearer of the instrument
Examples of Promissory Notes

A signs instruments in the following terms: "I acknowledge myself to be indebted to 'B' in Rs. 1000, to be paid on demand, for value received." Followings are Not Promissory Notes. (i) "Mr. B, I.O.U. (I owe you) Rs. 1000." (ii) "I promise to pay B Rs. 1500 on D's death, provided he leaves me enough to pay that sum,"
(iii) "I promise to pay B Rs. 500 seven days after my marriage with C."
Parties to A Promissory Note

1. The Maker - the person who makes the note promising 'to pay the amount stated therein. 2. The Payee - the person to whom the amount of the note is payable. 3. The Holder - is either the original payee or any other person in whose favour the note been endorsed. 4. The Endorser - the person who indorses the note in favour of another person.
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4. The Endorsee - the person in whose favour the note is negotiated by indorsement.
Essentials or Characteristics of a Promissory Note

From the definition, it is clear that a promissory note must have the following essential elements. (1) In writing - A promissory note must be in writing. Writing includes print and typewriting. (2) Promise to pay - It must contain an undertaking or promise to pay. Thus, a mere acknowledgement of indebtedness is not sufficient. Note that the use of the word `promise' is not essential to constitute an instrument as promissory note. Unconditional - The promise to pay must not be conditional. Thus, instruments payable on performance or non-performance of a particular act or on the happening or non-happening of an event are not promissory notes.
(3)
(4) Signed by the Maker The promissory note must be signed by the maker, otherwise it is of no effect. (5) Certain Parties - The instrument must point out with certainty the maker and the payee of the promissory note. (6) (7) Certain sum of money - The sum payable must be certain or capable of being made certain. Promise to pay money only - If the instrument contains a promise to pay something in addition money, it cannot be a promissory note. Number, place, date etc - These are usually found in a promissory note but are not essential in law. If a promissory note does not bear a date, it is deemed to have been made when it was delivered. It may be payable in installments
(8)
(9)
(10) It may be payable on demand or after a definite period - Payable 'on demand' means payable immediately or any time till it becomes time-barred. A demand promissory note becomes time barred on expiry of 3 years from the date it bears. (11) It cannot be made payable to bearer on demand or even payable to bearer after a certain period (12) It must be duly stamped under the Indian Stamp Act - It means that the stamps of the requisite amount must have been affixed on the instrument and duly cancelled either before or at the time of its execution. A promissory note, which is not so stamped, is a nullity. 4.03 BILL OF EXCHANGE [Section 5] A 'bill of exchange' is defined by as an instrument in writing, containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to or to the order of, a certain person, or to the bearer of the instrument.
Characteristic Features of a Bill of Exchange

1. 2. 3. 4. 4. It must be in writing. It must contain an order to pay and not a promise or request. The order must be unconditional. There must be three parties, viz., drawer, drawee and payee. The parties must be certain.
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It must be signed by the drawer. The sum payable must be certain or capable of being made certain. The order must be to pay money and money alone. It must be duly stamped as per the Indian Stamp Act.
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4. 7. 8. 9.
10. Number, date and place are not essential.
Parties to a Bill of Exchange

1. 2. 3. 4. 5. 4. The Drawer - the person who draws or makes the bill. The Drawee - the person on whom the bill is drawn. The Payee - the person to whom the amount of the bill is payable. The Holder - is the original payee but where the bill has been endorsed, the endorsee. The endorser - is the person who endorses a bill. The endorsee - is the person to whom the bill is negotiated by endorsement.
ACCEPTANCE
The acceptance of a bill is the indication by the drawee of his assent to the order of the drawer. An acceptance to be valid must be (a) in writing, (b) signed by the drawee or his agent, (c) on bill of exchange, and (d) completed by delivery to the holder or by notice of acceptance to him or some person on his behalf [Jagjivan Mauji Vithlani v. M/s Ranchahodas Meghaji, 1945]
Acceptance for Honour

When a bill of exchange has been noted or protested for non-acceptance or for better security and any person accepts it supra protest for honour of the drawer or of anyone of the endorsers, such person is called an acceptor for honour. After acceptance of the bill by the acceptor for honour, the payee, at the due date, has to present the bill first to the drawee for payment and if it is also dishonoured for payment by the drawee and noted or protested as the case may be it should then be presented to the acceptor for honour for payment.
PRESENTMENT
Presentment of a negotiable instrument is made for two purposes.
1. 2.
Presentment for acceptance Presentment for payment
4.04 CHEQUE [Section 6] A cheque is defined as 'a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand. Thus, a cheque is a bill of exchange with two added features, viz.: (i) it is always drawn on a specified banker; and (ii) it is always payable on demand and not otherwise. A 'Cheque in the electronic form' means a Cheque, which contains the exact mirror image of a paper Cheque, and is generated, written and signed in a secure system ensuring the minimum safety standards with the use of digital signature (with or without biometrics signature) and asymmetric crypto system.
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A "truncated Cheque" means a Cheque which is truncated during the course of a clearing cycle, either by the clearing house or by the Bank whether paying or receiving payment, immediately on generation of an electronic image for transmission, substituting the further physical movement of the cheque in writing.
Features of a Cheque
A Cheque is a bill of exchange with following features, viz., (i) must be in writing; (ii) contain an unconditional order to pay (iii) drawn on a specified banker; (iv) for a certain sum of money; (v) the payee must be a definite person; (vi) amount must be written both in figures and words; (vii) it must be dated. (viii) it is always drawn on a specified banker; and (ix) it is always payable on demand and not otherwise.
Cheques in electronic form

In view of the banking transforming from traditional banking to e-banking, the electronic form or electronic image of a Cheque as a valid Cheque has also now been recognized [Negotiable Instruments (Amendment) Act, 2002].
Dating of cheques
The drawer of a Cheque is expected to date it before it leaves his hands. A cheque without a date is considered incomplete and is returned unpaid by the banks. A post-dated cheque is as much negotiable as a cheque for which payment is due, i.e., the transferee of a postdated cheque, like that of the cheque on which payment is due, acquires a better title than its transferor, if he is a holder in due course.
Crossing of cheques
Crossing is a unique feature associated with a cheque affecting to a certain extent the obligation of the paying banker and also its negotiable character. It is a peculiar method of modifying the instrument to the banker for payment of the cheque. Crossing on a cheque is a direction to the paying banker by the drawer that payment should not be made across the counter. The payment on a crossed cheque can be collected only through a banker. Crossing of a cheque is effected by drawing two parallel transverse lines with or without the words 'and company' or any abbreviation thereof. A cheque that is not crossed is called an òpen cheque`.
Significance of crossing
As payment cannot be claimed across the counter on a crossed cheque, crossing of cheques serves as a measure of safety against theft or loss of cheques in transit.
Types of crossing
Crossing may be either (1) General - to mean as where a cheque bears across its face an addition of the words 'and company' or any abbreviation thereof, between two parallel transverse lines or of two parallel transverse lines simply, either with or without the words 'not negotiable', that addition shall be deemed a crossing and the cheque shall be deemed to be crossed generally (2) Special - implies the specification of the name of the banker on the face of the cheque The object of special crossing is to direct the drawee banker to pay the cheque only if it is presented through the particular bank mentioned therein. Thus, it makes the cheque system still safer.
Account Payee Crossing (A/c Payee Crossing)

An A/c payee crossing signifies that the drawer intends the payment to be credited only to the payees account and in none else. The addition of 'A/c payee' to a crossing has no legal sanctity and the paying banker may ignore such a direction without being liable for any damages.
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Who can cross a cheque

A cheque may be crossed by any of the following: 1. The drawer of a cheque. 2. The holder of a cheque. 3. The Banker, in whose favour the cheque has been crossed specially.
Marking of cheques
Marking or certification is a method adopted when the paying banker verifies the customer's account and indicates thereon that there are enough funds in his account torn that cheque. [Sita Ram v. Bombay Bullion Association (1965)]. Marking only certifies the genuineness of the drawer's signature and the sufficiency of funds.
4.05 HOLDER AND HOLDER-IN-DUE-COURSE [Section 8 & 9] Holder of negotiable instrument

A holder of a negotiable instrument is a person entitled in his own name to the possession of that negotiable instrument and to receive or recover the amount due thereon from the parties thereto.
A 'holder in-due-course'
A 'holder in-doe-course', on the other hand, is a person who for consideration became the possessor of a negotiable instrument before the due date of payment of that instrument and without having sufficient cause to believe that any defect existed in the title of the person from whom he derived his title. Thus, where a person receives a negotiable instrument without consideration, he may be a holder but will not be called as a holder in due course.
4.06 CERTAIN IMPORTANT CONCEPTS AND EXPLANATIONS

Ambiguous Instrument (Section 17) - the holder may at his election treat it as either and the instrument shall be thenceforward treated accordingly. Where Amount is stated differently in Figures and Words (Section 18) - the amount stated in words shall be the amount undertaken or ordered to be paid. Inchoate Instruments (Section 20) - It means an instrument that is incomplete in certain respects. Where one person signs and delivers to another person a duly stamped negotiable instruments and however, that negotiable instrument is either wholly blank or having written thereon. Such an instrument is thus incomplete (inchoate). The maker of the instrument has thereby prima facie authorises the holder thereof to make or complete, for any amount therein but not exceeding the amount covered by the stamp. Lost or Stolen Instruments (Sec. 58) - In such instances, the possessor or endorsee who has found or had obtained the instrument by fraud shall not be entitled to receive the amount due thereon from such maker of the lost instrument. (Exception when the later (finder) person is holder in due course). (v) Forged Instruments - As a general rule, a forged signature does not confer a good title. Even a holder in due c
4.07 DISHONOUR OF A CHEQUE ON GROUNDS OF INSUFFICIENCY OF FUNDS [Sections 138 to 142]

Section 138 to 142 of the Negotiable Instruments Act provide for criminal penalties in the event of dishonour of cheques for insufficiency of funds. The drawer, under Sec. 138, may be punished with imprisonment upto 2
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years (earlier I year) or with a fine up to twice the amount of the cheque or with both. The enhancement in the penal provisions was made by Negotiable Instruments (Amendment) Act 2002 w.e.f. 4.2.2003. In order to attract the aforesaid penalties, following conditions must be satisfied:
(1). Insufficiency of funds
The Courts have held the following amounting to dishonour for insufficiency of funds: (i) Stop-payment instructions to the payee-bank [ET & TD Corpn. Ltd. v. Id Technologies & Engross P. Ltd. (1996)]. (ii) Request to the payee not to present the cheque till further information [Modi Cement Ltd. v. Kuchil Kumar Nandi (1998)].
(iii) Cheque received back from the payee-bank with the remarks 'Account Closed' [G.M. Mittal Stainless Steel vs. Nagarjuna Investments (1997) and N.E.P. C. Micon Ltd. vs. Magna Leasing Ltd. (1999)].
(2).Payment against an enforceable debt (3). Cheque should be presented to the paying bank within the validity period (generally 6 months from the date on
which it is drawn)
(4). Payee to serve Default Notice, demanding payment within 30 days (5). Drawer liable upon failure to pay within 30 days` Upon failure Complaint in writing; Offence triable by 1st Class Magistrate
The payee having failed to receive the payment within 30 days` of notice of dishonour of the cheuqe, shall have to make a police complaint in this regard. This is a cognizable offence and shall be tried by a Metropolitan Magistrate or a Judicial Magistrate of the First Class.
Offences by companies
A director, manager, secretary or other officer of the company shall be liable to be proceeded against and punished accordingly in case the offence has been committed with the consent or connivance, or is attributable to any neglect on his part in this regard. - Rajneesh Aggarwal v. Anil Bhalla (2001). However, a person will not be liable in a case. (i) where such person proves that the offence was committed without his knowledge, or (ii) where he had exercised all due diligence to prevent the commission of such offence; (iii) where he is nominated as a Director of a company by the Central Government or State Government or financial institutions.
POWER OF COURT TO TRY CASES SUMMARILY [SECTION 143]

This is a non-obstante clause. It overrides the provisions contained in the Code of Criminal Procedure, 1973. It has been now provided that offences for dishonour of cheques shall be tried by a Judicial magistrate of the first class or by a Metropolitan Magistrate. In the case of summary trial, the maximum sentence that may be passed by the Magistrate shall be imprisonment for a term not exceeding one year and an amount of fine not exceeding five thousand rupees. The trial shall, so far as practicable, consistent with the interests of justice, be continued from day to day. Further, every trial shall be conducted as expeditiously as possible and an endeavour shall be made to conclude the trial within six months from the date of filing of the complaint. Every offence punishable under Negotiable Instruments Act shall be compoundable (Section 147)
4.08 IMPORTANT DISTINCTIONS

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Cheque
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Bill of Exchange
1) It can be drawn on any person including a banker. 2) The amount may be payable on demand or after a. specified time. 3) A usance (time) bill is entitled to three days of grace. 4) A bill payable after sight must be accepted. 5) Crossing of a bill of exchange is not possible. 6) Notice of dishonour is necessary to hold the parties liable thereon. A party who does not receive a notice of dishonour can generally escape its liability thereon. 7) A bill is noted or protested to establish dishonour.
1) It must be drawn only on a banker. 2) The amount is always payable on demand.
3) The cheque is not entitled to days of grace.
4) Acceptance is not needed. 5) A cheque can be crossed 6) Notice of dishonour is not necessary. The parties thereon remain liable, even if no notice of dishonour is given.
7) A cheque is not to be noted or protested in case of dishonour. 8) The protection given to the paying banker in respect of crossed cheques is peculiar to this instrument. Promissory Note 1) There are only two parties the maker (debtor) and the payee (creditor).
8) No such protection is available in the case of bills.
Bill of Exchange 1) There are three parties the drawer, the drawee and the payee- although any two of these capacities may be filled by one and the same person. 2) It contains an unconditional order to the drawee to pay according to the drawer`s directors. 3) A bill payable àfter sight` must be accepted by the drawee or his agent before it is presented for payment. 4) The liability of the drawer is secondary and conditional upon non-payment by the drawee. 5) Notice of dishonour must be given by the holder to the drawer and the intermediate endorsers to hold them liable thereon. 6) The maker or drawer does not stand in immediate relation with the acceptor drawee.
2) A note contains an unconditional promise by the maker to pay the payee. 3) No prior acceptance is needed.
4) The liability of the maker or drawer is primary and absolute. 5) No notice of dishonour need be given.
6) The maker of the note stands in immediate relation with the payee.
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Transition from `Caveat emptor` to `Caveat vinditor`

A consumer is a user of goods and services. Any person paying for goods and services, which he uses, is entitled to expect that the goods and services are of a nature and quality promised to him by the seller. Only in 1932 it was firmly established by a House of Lords decision in Donoghue v. Stevenson (the `snail in the ginger-beer `case) that manufacturers owed a duty to the ultimate consumer to take care in making their goods where there is no likelihood of their being examined before they reach the ultimate consumer. The origin of this judicial principle lie in the fact that in today's mass production economy where there is little contact between the producer and consumer, often sellers make exaggerated claims and advertisements, which they do not intend to fulfill. This leaves the consumer in a difficult position with very few avenues for redressal. The onset on intense competition also made producers aware of the benefits of customer satisfaction and hence by and large, the principle of " consumer is king" is now accepted a transition from the principle of `Caveat emptor` to `Caveat vinditor`. The need to recognise and enforce the rights of consumers was recognised by the legislators for quite some time now. In India, we have the Indian Contract Act, the Sale of Goods Act, the Dangerous Drugs Act, the Agricultural Produce (Grading and Marketing) Act, the Indian Standards Institution (Certification Marks) Act, the Prevention of Food Adulteration Act, etc which to some extent protect consumer interests. However, these laws required the consumer to initiate action by way of a civil suit, which involved lengthy legal process proving, to be too expensive and time consuming for lay consumers. Therefore, the need for a more simpler and quicker access to redressal to consumer grievances was felt. On April 9, 1985 the UN General Assembly with due negotiations in the UN Economic and Social Council (ECOSOC), adopted by consensus a set of guidelines on Consumer Protection serving as a vital lobbying tool both nationally and internationally. India being a constituent member of United Nations enacted the Consumer rd Protection Act 1986 on 23 May 1986. The Act is in true essence public welfare legislation. The hall marks of that jurisdiction have rightly been highlighted as the simplicity and inexpensive nature thereof, the summary procedure provided for trials therein, and the expeditious disposal of the consumer dispute within a time bound frame.
Source of the Consumer Protection Act, 1986
SOME IMPORTANT DEFINITIONS [SECTION 2]

Complaint - any allegation in writing made by a complainant with a view to obtaining any relief provided by or under this Act. Nature of complaint (i) (ii) (iii) (iv) an unfair trade practice or a restrictive trade practice has been adopted by any trader or service provider the goods bought by complainant suffer from one or more defects; the services hired or availed of suffer from deficiency in any respect; a trader or the service provider, has charged for the goods or for the services a price in excess of the price (a) (b) (c) (d) (v) fixed by or under any law for the time being in force; (Ex telephony rates fixed by TRAI) displayed on the goods or any package containing such goods; displayed on the price list exhibited by him by (Ex Petrol, Diesel prices by Petrol pumps); agreed between the parties (contracted price) ;
goods or services which will be hazardous to life and safety are being offered for sale to the public,
Consumer - any person who (i) buys any goods for a consideration, or (ii) hires or avails of any services for a consideration;
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It must be noted that a person who buys goods or avails services for commercial purposes is not a consumer. However, where a person buys goods or avails services exclusively for the purposes of earning his livelihood by means of self-employment is a consumer. The Act has not confined itself to the original hirer alone, but equally extended it to the subsequent beneficiaries of the services as well. Defect - any fault, imperfection or shortcoming in the quality, quantity, potency, purity or standard, which is required under any law to be maintained by or under any contract, express or implied or as is claimed by the trader in any manner whatsoever in relation to any goods; Goods - goods as defined in the Sale of Goods Act, 1930.
CONSUMER PROTECTION COUNCILS

The objects of the Councils shall be to promote and protect the rights of the consumers including the right to consumer education.
of Central Consumer Protection Council [SECTION 4]
Central Government
Classification Council
Estab. Authority
State Consumer Protection Council [SECTION 7]
District Council [SECTION 8A]
State Government
State Govt.
Composition Chairman Minister in charge in the Cent. Govt. or (i) 8 M.P.5 from LS, 3 from RS. (ii) Secy.-National Comm. for SC & ST. (iii) 20 Repr. Of Cent. Govt.& Autonomous Org. with consumer interests (iv) Registrar, National Consumer Disputes Redressal Commission (v) 35 - Consumer Orgns. (vi) 10 Women (vii) 20 Trade & Industry (viii) 15 Persons for Consumer Interest Member-secretary -Secretary incharge of Consumer Affairs in the Central Government. 3 years Delhi At least one meeting every year Minister in charge in the State Govt. Collector of the district
Other official non-official members.
(i) (ii) (iii) (iv) (v)
8 5 MLA & 3MLC 10 State Govt. Repr. 5 Women Repr. 5 Trade & Farmers Repr. 1 Persons for Consumer Interest.
(As per respective State Rules)
Generally 3 years Term Place of Council State capital At least two meetings in a year
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Generally 3 years District HQ At least two meetings in a year.
CONSUMER DISPUTES REDRESSAL AGENCIES
Appellate Authority
National Consumer Disputes Redressal Commission [SECTION 20]
State Commission [SECTION 16]
District Forum [SECTION 10]
Composition
President Judge of the Supreme Court to be appointed by the Cent. Govt. in consultation with the Chief Justice of India. 4 (1 Woman) Appointed by Cent. Govt. on the recommendation of a selection committee. Judge of the High Court to be appointed by State Govt. in consultation with Chief Justice of High Court. 2 (1 Woman) Appointed by State Govt. on the recommendation of a selection committee District Judge to be appointed by the State Govt. in consultation with the Chief Justice of State High Court. 2 (1 Woman) Appointed by State Govt. on the recommendation of a selection committee 5 years or 65 years (whichever earlier). 5 years` or 70 years` (whichever earlier) (i) Complaints - value of the goods or services and compensation, if any, claimed exceeds Rs. One crore and (ii) Appeals against the orders of any State Commission. 5 years or 67 years (whichever earlier). Complaints - value of the goods or services and compensation, if any, claimed exceeds Rs. 20 lakhs upto Rs. One Crore. Complaints - value of the goods or services and compensation, if any, claimed upto Rs. 20 lakhs. The concerned State within which either of parties actually and voluntarily resides or carries on business or has a branch office or personally works for gain. Imprisonment up to 3 years` with or without fine upto Rs. 10,000 90 days` or 150 days` (in case of lab. Tests) Imprisonment up to 3 years` with or without fine upto Rs. 10,000 90 days` or 150 days` (in case of lab. Tests) Vested with powers of 1 Class Judicial Magistrate Enabled State Capital National Commission within 30 days` with 50% of award money or
st
Members
(persons of ability, integrity and standing and have adequate knowledge or experience)
Term
Jurisdiction
Penalty Time limit for completion of hearing Judicial Relief Powers/Interim
Imprisonment up to 3 years` with or without fine upto Rs. 10,000 90 days` or 150 days` (in case of lab. Tests) Vested with powers of 1 Class Judicial Magistrate Enabled; New Delhi; Circuit Bench Supreme Court within 30 days` with 50% of award money.
st
Vested with powers of 1st Class Judicial Magistrate Enabled District HQ State Commission within 30 days` with 50% of award money or Rs. 25,000 (whichever less).
Summary Trial Principal Bench Appellate Authority
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Rs. 35,000 (whichever less). State Capital; Circuit Bench at other cities.
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As arrears of Land & Revenue 2 years` from the cause of action
Enforcement power Limitation period
As arrears of Land & Revenue As arrears of Land & Revenue 2 years` from the cause of action. 2 years` from the cause of action
PROCEDURE OF FILLING COMPLAINT Who can file a complaint? (i) A Consumer. (ii) Any registered Voluntary Consumer Organization. (iii) The Central or State Government. (iv) One or more consumers on behalf of numerous consumers who are having the same interest. When a complaint can be filed?
A complaint can be filed in writing if: a. Consumer has suffered loss or damage as a result of any unfair Trade Practice. b. The goods purchased suffer from any defect; c. The trader has charged a price in excess of the price displayed or fixed by any law for the time being in force; d. The goods hazardous to life and safety are being offered for sale to public. e. The services hired or availed of, suffer from any deficiency.
Where a complaint can be filed?

If the cost of goods or service and compensation asked for is: up to Rs. 25.00 lakhs - District Forum. more than Rs. 25.00 lakhs and up to Rs. 1 crore - State Commission. more than Rs. 1 crore - National Commission. A model form has been provided for filing of the complaint for the convenience of the consumer. The complaint/reply should be supported with affidavit of party and witnesses, if any.
APPEAL/REVISION
Any party aggrieved form the final order of District Forum may appeal to State Commission within 30 days. Similarly, any party aggrieved from the final order passed in original complaint decided by the State Commission may appeal to National Commission within 30 days. Order passed by National Commission in complaint filed before it is appeal able in Supreme Court within 30 days. Appeal may be preferred as per model form along with certified copy of order. Any order, which is not final order, may be challenged in revision before higher respective Commission.
SOME CASE EXAMPLES
This Act is a one-way traffic. The consumer who purchase goods or hires services for consideration is entitled to seek redress before he Forums constituted under the Act and claim any of the reliefs mentioned in Section 14(1) of the Act, but the other side i.e. merchant or person, who render service is not entitled to seek recourse to this Forum for realizing the prices of the goods sold or charges for the services rendered, as the case may be. Their remedy is only in the ordinary court of civil jurisdiction (Tamil Nadu Housing Board Vs Tamil Nadu Housing Board Colony Maintenance and General Welfare Society) Privity of contract is not necessary. In this case, the complaint was lodged against anesthetists for negligence. The anesthetists was not employed directly by the patient, but was employed by the doctor who did the operation. It was held that the complaint is maintainable. [Mumbai Grahad Panchayat Vs Dr (Mrs.) Rashmi Feddaus] Stocks and shares are included in the definition of the goods. In these circumstances the complaint in regard to the shares lies before the District Forum. (LC Chandgotya V. Northern Leqsing and Industries Ltd.) In Harjot Ahluwalia (Minor), Spring Meadows Hospital an unqualified nurse gave wrong intravenous injection to a minor child, due to which the minor child suffered irreparable brain damage. The child now has to live
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vegetative and helpless life forever, requiring lifelong care and attention. The doctor as well as the nurse was found to be negligent and compensation of Rs 12.50 lakhs to the child, plus Rs 5.00 lakhs to the parent (for mental agony) were awarded. Parent who brings the child to hospital is 'consumer'. The child, who is beneficiary of the services is also a consumer While dispensing medicines the attendants in the Medical Stores have to be very vigilant in supplying the medicines strictly according to the prescription, and in default was liable to pay compensation. Therefore, in the circumstances of the case the compensation was awarded. (Medical Stores Vs R D Gupta) In Kalpavruksha Charitable Trust V Toshniwal Brothers it was held that a charitable trust is not a consumer, if it has purchased machinery for its diagnostic center, when only 10% patients are provided free service and changes are levied on remaining patients. Thus, the use is for `commercial purpose` and hence it is not a consumer. Thus a person buying one truck or tempo or sewing machine or one computer will be eligible under this section. However if a person buys two typewriters out of which one is used by a person employed by him, he will not be eligible under CPA as person buying goods for resale or commercial purposes is not a consumer. In Sarat Equipments v. Interuniversity Consortium, it was held that equipment bought by an educational institution for use by students cannot be said to be for commercial purpose even where certain amount of fees is charged to students for allowing use of equipment. Legal heirs of a deceased person are 'consumer' as the legal heir stands in the shoes of the deceased as his representative to enforce any cause of action. (Cosmopolitan Hospitals v. Smt Vasantha P Nair. Same view in Manjuben v. LlC. In Paschim Banga Khet Mazdoor Samity v. State of West Bengal, it was held that providing adequate medical facilities is an essential part of the obligations undertaken by Government in a welfare State. State cannot avoid the constitutional obligation on account of financial restraints. - . - . - In this case, a person who met with an accident was not given any treatment in a Government hospital as proper facilities were not available. Attitude of the staff was indifferent and callous. -. - Supreme Court held that there was breach of 'right of life' guaranteed under Article 21 of Constitution. - . - . - State cannot avoid its responsibility for denial of the constitutional right. - . - . - Hence, State was ordered to pay compensation. Supreme Court also issued guidelines for providing proper medical facilities. [Note: In this case, Supreme Court has not held that the Government hospitals provide any 'service' to the injured. Thus, this judgment will not be useful in getting relief from Consumer Courts. However, writ can be filed as High Courts can grant relief when there is violation of fundamental right].
GENERAL MANAGER, SOUTHERN RAILWAY V. MRS.A.SHAMIM; [(2003) 3 CLD (Consumer Law Decisions 583 (NCDRC)].
FACTS: It was the case of the complainant that she boarded an express train in a station in Kerala to go to Hyderabad on professional work. She was carrying, with her a suitcase in which there were some study material, 35 bibliographic cards and a sum of Rs. 5800 in her hand bag. Her complaint to the TIE that an a passenger without reservation had entered the compartment and despite protests from her and other co-passengers she continued to occupy the berth and the TIE did nothing to detrain her. When she woke up at about 2 a.m., to her dismay, she found that her suitcase was ransacked, papers were found strewn on the floor of the compartment and important documents and cash were missing. She further alleged that neither the TIE nor the Guard was willing to receive her complaint. Eventually she gave the first information to the police at Secunderabad, which was the destination station. The District Forum held that the railway was deficient in its service and awarded compensation of Rs. 20,000 and costs to the complainant. The State Commission, agreeing with the view of the District Forum dismissed the appeal filed by the railways. Rejecting the railway's claim that by virtue of section 100 of the Railways Act, the railway was responsible only in
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respect of luggage booked the National Commission held:
DECISION & REASONS: If the reserved compartment was not protected from intruders and if the alarum chain did not work when pulled by the passenger it was clearly a case of deficiency in service on the part of the railway. The TIE who was present in the compartment when the train started and a complaint was made to him about presence of an unauthorised passenger in the reserved compartment, ignored the pleas of passengers and did not offer any help to passenger in distress. This was nothing but deficiency in service and negligence envisaged by section 100. [Section 100 provides that the railway administration shall not be responsible for loss etc. unless it is proved that National Insurance Co. Ltd. V. Skygems [2002(1) SCALE 94]. Facts: The respondent, dealer in precious stones, had sent two parcels of emeralds by registered post duly insured to a consignee in London but the parcels did not reach their destination. The investigators appointed by the insurer confirmed that the parcels were either lost in transit or were stolen. The postal authorities admitted their liability and made payment of postal charges in respect of each parcel. The insured agreed to settle the claim. But the respondents insisted that the payment of the insured amount be made in Pound Sterling in London. The insurer denied its liability to pay the amount in Pounds sterling on the ground that the title in the goods had not passed to the consignee and that it (the respondent) continued to be the owner of the goods and so the payment could be made only in Indian Rupees. The National Consumers Disputes Redressal Commission held that as the insurance policies clearly stated that the claim was payable at London and the insured value was in terms of Pounds Sterling the insurer should pay the amount in Pounds Sterling. In appeal to the Supreme Court the respondent reiterated its claim that the insurance policy specifically stated that the amount was payable at London and that it should be paid only in Ponds Sterling at London and not in Indian rupees in India. Allowing the insurer's appeal, the Supreme Court held: Decision and Reasons: Having regard to the facts and circumstances the appellant could not be said to be liable to pay the insurance amount in Pounds Sterling. From the correspondence between the parties it was evident that the consignee did not pay the value of the missing parcels to the respondent nor was there any evidence to show that the documents were endorsed in favour of the consignee and transferred to them. The title to the goods had not clearly passed to the consignee and the respondent consignor continued to be the owner having insurable interest in the goods. The right of the buyer to claim the policy amount would arise when he obtained title to the property and produced the documents of transfer. This clearly showed that the title had not passed to the consignee in London. Under such circumstances the respondent was not entitled to receive the payment in Pounds Sterling. The National Commission erred in stating that the insurance amount was payable at London. the loss... was due to the negligence or misconduct on its part or on the part of its servants.
Complaint against Airlines, Airport authorities etc. The petitioner Common Cause, a registered consumer association had filed the petition through its Director on various grounds of grievance against the Indian Airlines, the International Airport Authority of India, the National Airport Authority of India and the Director General of Civil Aviation, relating to alleged lack of attention to the safety of aircraft and the passengers traveling by Indian Airlines, had alleged lack of proper facilities such as landing aids etc, in the various airfields in the country alleged inconvenience caused to passengers on account of the delay in operation of flights, omission to give timely information regarding delayed or cancelled fifths, delay in baggage clearance and unsatisfactory in-flight catering etc.
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The petitioner had also impleaded the State Governments and the local authorities that were statutorily obliged to take steps for avoidance of bird menace near the various airfields in the country. The Indian Airlines as well as International Airport Authority of India and the National Airport Authority of India had filed detailed statements setting out the various steps that they had already taken as well those which they propose to take in future for setting right whatever grievance that are actually found to exist in respect of the various matters pointed out by the Petitioner. The State Governments of West Bengal, Maharashtra and the Central Government had filed statements detailing the action that ha already been taken by them and the further chouse of action which would be adopted by them for eliminating, the maximum extent possible, the danger to aircraft from birds hovering near the airports. The New Delhi Municipal Committee and the Municipal Corporation of Pallavaram had also filed similar statement. The National Consumer Disputes recorded the assurances given to the Commission by the various authorities in their respective statements. In the light of the averments contain there detailing the steps already taken by the various authorities and the assurances contained in these statements. `S` appearing on behalf of the complainant society, very fairly had stated that steps already taken and the assurances, if duly carried out, would adequately go to rectify the grievances of the consumers and hence he did not wish to pursue that matter any further at this stage before the Commission. Therefore, the complaint petition was disposed of accordingly. The Act had been enacted to give redress to a consumer if there was a defect in the goods purchased or there was deficiency in the services hired, for consideration paid or promised to be paid. No passenger who had boarded the flight in question had come forward to make a complaint nor there was any allegation in the present complaint that any such passenger had authorised the complainant to file any complaint before the Commission. The Complainant had not even give out the name of any of the passengers of that flight. In fact the complainant did not appear to be having any personal knowledge about the details relating to the fifth in question. Tat fact was clear from the averment in the complaint that the flight in question was commencing from Calcutta while in fact it commenced from Delhi. The complaint was based upon a newspaper report which might or might not be correct. The complainant had not even filed an affidavit that the facts stated in the complaint were true to the personal knowledge of the complainant. It was held that no relief could be grant on such a complaint based upon the version of third peon appearing in newspapers. (Common Cause Vs Indian Airlines)
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Chapter 8 INTELLECTUAL PROPERTY LAWS

WHAT IS ÌNTELLECTUAL PROPERTY`
Companies use their assets as part of the operations of their business and, as such, they contribute to the development of the organisation as a whole. Managing and protecting assets is, therefore, a key operational and strategic function. Assets may be classified as: 1. Tangible (or physical) assets - land and building, plant and machinery and tools and equipment. 2. Intangible assets - goodwill, patents, designs, trademarks and copyrights -Intellectual property rights (IPRs)
Intellectual property, often known as IP, allows people to own their creativity and innovation in the same way that they can own physical property. The owner of IP can control and be rewarded for its use, and this encourages further innovation and creativity to the benefit of us all.
There are four main types of IPRs:1. Patents: registered rights protecting industrial invention, which last for upto 20 years. 2. Trademarks registered rights for brand identity, which can continue as long as the registration fees are paid. 3. Designs registered designs (which lasts upto 25 years) and unregistered design right protect the aesthetic appearance of articles. 4. Copyright unregistered protection for authors, artists and composers against the unauthorised copyin of their works, which lasts for the life of the author plus 70 years. The first three categories are known as registered or monopoly rights as the process of registration effectively prevents others from exploiting an invention, brand or design without the owners consent.
Types of Intellectual Property
TRADEMARKS ACT, 1999 What is `Trade Mark`

A `Trade Mark` is a distinguishing mark used in the course of trade of goods of one manufacturer or trader and, therefore, it seeks to protect the interest of the consumer as well as the trader. A trademark may consist of a device depicting the picture of animals, human beings, etc., words, letters numerals, signatures or any combination thereof.
Trademark Owner or Proprietor The person in whose name the Trade mark is registered and his name is so entered in the Register maintained by the Registrar Trademarks.
Registered users (Section 48)

A person other than the registered proprietor of a trademark may be registered in respect of any or all of the goods or services in respect of which the trademark is registered. (Ex HLL products manufactured by some other manufacturer)
Trademarks as a series Where the proprietor of a trademark claims to be entitled to the exclusive use of any part thereof separately, he may apply to register the whole and the part as separate trademarks. Each such separate trademark shall satisfy all the conditions applying to and have all the incidents of, an independent trademark. (Ex `Liberty` and `Ballerina` used for Ladies Sandals)
Limitation as to Colour
A trademark may be limited wholly or in part to any combination of colours. When a trademark is registered without limitation of colour, it shall be deemed to be registered for all colours. (Ex- Airtel in Red and White colours)
TYPES OF TRADEMARKS
Classification Description
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(A) Registered Mark
A trademark registered with the Registrar of Trade Marks in the name of a person. The owner of that mark is called Registered Owner or Proprietor.
(B) Certification mark
(C) Collective mark

(D) Well-known trademark
A mark used in commerce with the owners permission by someone other than its owner, to certify regional or other geographic origin, material, mode of manufacture, quality, accuracy, or that the work or labor on the goods or services was performed by members of a union. (Ex Woolmark; AGMARK) A trademark or service mark used in commerce, by all the members of a cooperative, an association etc. (Ex- Lijjat papad, FICCI) A mark, which has become so well known to the substantial segment of the public, that the use of same trademark is used in relation to other goods or services, in the same course of trade, would cause confusion in the minds of the users/beneficiaries of the goods or services. (Ex Raxona chappals) A mark used in the course of trade, to identify and distinguish the services of one provider from services provided by others, and to indicate the source of the services. (Ex- Hutch)
(E) Service mark
What can be registered as a trademark?

Trading names Signatures Newly invented words Geographical names Distinctive packaging Smells, sounds and colours Ex- Lal Quila Basmati Chawal (Rice) Ex - Cadburys bar of chocolate. Ex - ORTEM Ex Bikaneri bhujia Ex.- Radial Tyres Ex Zevit capsules from SKF Glaxo
REGISTRATION OF TRADEMARK [SECTION 3 TO 8]] Registrar of Trademark

The Central Government has appointed Controller-General of Patents, Designs and Trademarks. .
Trademarks Registry and offices thereof

The Trademarks Registry is located at Mumbai, Chennai, Delhi, Kolkata and Ahmedabad.
The Register of Trademarks

The Register of Trade mark shall be kept at the head office. In that Register all registered trade marks with the names, addresses and description of the proprietors, notifications of assignment and transmissions, the names, addresses and descriptions of registered users, conditions, limitations and such other matter relating to registered trademarks shall be entered. The Register may be kept wholly or partly in computer floppies diskettes or in any other electronic form subject to prescribed safeguards.
Classification of goods and services The Registrar shall classify goods and services, as far as may be, in accordance with the International classification of goods services for the purposes of registration of trademarks. The Registrar may publish in the prescribed manner an alphabetical classification of goods and services.
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Registration of Trademark Any person claiming to be the proprietor or a trademark used or proposed to used by him shall apply in writing to the Registrar in the prescribed manner for the registration of his trademark. A single application may be made for registration of a trademark for different classes of goods. After due compliance of related procedures, the Registrar may register with or without conditions.
Duration, renewal, removal and restoration of registration

The registration of a trademark shall be for a period of 10 years may be renewed for further period of 10 years from time to time.
Infringement of registered trademarks

When a person other than the registered proprietor of permitted user uses a mark in the course of trade for which original owner is registered, and such a mark is identical with, or deceptively similar to the registered trademark relation to goods or services in respect of which the trademark is registered and in such manner as to render the use of the mark likely to be taken as being used as a trademark. (Ex `Palmolive` (registered mark); `Pamolive`(infringement) It means when any person not authorised to use any registered trade uses the same in order to cause confusion or deception in the mind of the user or injure reputation of the registered owner. There shall be actual damage by such unauthorised use. It constitutes an infringement, when proved.
Passing Off
REDRESSAL MECHANISM [SECTIONS 83 TO 100]

The Central Government has notified the establishment of an Appellate Board known as the Intellectual Property Appellate Board to exercise the jurisdiction, powers and authority conferred on it. The Appellate Board shall consist of a Chairman, Vice-Chairman and other Members (Judicial and Technical).
Bar of jurisdiction of courts, etc.

No court or other authority shall have any jurisdiction, powers or authority in relation to the matters referred to in appeal.
OFFENCES AND PENALTIES [SECTIONS 103] Penalty for applying/selling false trademarks, trade descriptions, etc.
An imprisonment upto three years and fine upto Rs. 2 Lakhs may be imposed on violation of the Act.
TRADEMARK AGENTS Agents may present the applicant before Registrar (Section 145)
The Registrar may authroise the legal practioners or registered agents may be authorised to represent their principals.
PATENTS ACT, 1970 What is `Patent`

Patent is a monopoly granted to the original inventor of a product or process that is capable of commercial exploitation.
The benefits of patent protection

The patent gives the patent holder the right to stop others from using the invention concerned or to choose to let others use it under agreed terms. It also brings the right to take legal action against others who might be infringing the invention to claim damages. Patent right is assignable.
Patent Requirements
Be novel. Involve an inventive step Capable of Commercial Exploitation Be described.
TRIP AGREEMENT Compliance of the TRIP Agreements

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India is a signatory to the agreement establishing the World Trade Organization (WTO). The WTO Agreement, inter-alia, contains an agreement on intellectual property rights, namely, the Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPs). The TRIPs Agreement requires member countries to align their legislations on intellectual property in conformity with their obligations under the TRIPs Agreement . The Patent Act 1970 has been amended in 1999, 2002 and 2005 so as to make Indian Patent Act fully compliant of the TRIP Agreement.
INVENTIONS NOT PATENTABLE (SECTION 3 AND 4)

Frivolous or claims made are obvious or contrary to well established natural laws. Contrary to law or morality or injurious to public heath. (Ex.-Method for gambling) Mere discovery of a scientific principle or the formulation of an abstract theory. (Ex -Scientific theory is a statement about the natural world.) The mere discovery of any new property or its use or of the mere use of a known process, machine or apparatus. (Ex - Use of Aspirin for cardio-vascular disease) A substance obtained by a mere admixture resulting only in the aggregation of the properties of the components thereof (Ex Alloy) The mere arrangement or re-arrangement or duplication of known devices (Ex - Umbrella with fan) A method or a process for enhancing machine efficiency. (Ex - Process for testing of chlorine level in the water) A method of agriculture or horticulture (Ex - A method for cultivation of an algae) Any process for the medicinal, surgical, curative, prophylactic or other treatment of living animals to make them disease free. (Ex - treatment of malignant tumour cells) Inventions relating to Atomic energy [Section 4]
Who may apply for Patent

An application for a patent may be made by the first inventor, his assignee or legal representative or foreign national of a convention country on reciprocal basis.
Types of Patent Applications a. Patent applications under Patents Act 1970. b. International applications under PCT.
Secrecy direction of certain inventions

The Registrar while sealing a Patent may issue security directions for products or process for defence purposes.
Term of a patent
The term of every patent shall be 20 years from the date of filing application for patent. A patent may be revoked by the High Court on any of the specified grounds.
At any time after 3 years from the date of the sealing of a patent, any person including Central Government in the public interest may make an application to the Controller for grant of compulsory licence on patent on specified grounds. The Controller on being satisfied with the expediency and urgency and public interest, my grant compulsory licence.
Compulsory licences
Revocation of patents by the Controller for non-working

Where patented invention is not available to public at a reasonably affordable price, the Central Government has been empowered to apply to the Controller for revocation of compulsory licence after 2 years from the grant of licence.
REDRESSAL MECHANISM [SECTION 116] Appellate Board
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The Appellate Board established under the Trade Marks Act, 1999 shall be the Appellate Board for the Patent Act also.
INTERNATIONAL ARRANGEMENTS Notification as to convention countries (Section 133)

The Central Government may, declare and notify a country to be a convention country with a view to the fulfillment of a treaty, on reciprocal basis.
THE COPYRIGHT ACT 1957

What is copyright
Copyrights generally protect works of art including poetry, movies, video games, DVDs, paints, sculptures, literary, dramatic or musical work, musical works, photographs, or architectural designs, among others. To qualify for a copyright, the work must be fixed in a tangible medium of expression. A copyright does not cover an authors ideas which is why the work must be fixed in a tangible medium. In other words, the work must exist in some physical form, such as a tape recording, on film, on paper, or even in an email.
Copyright is a kind of intellectual property. Copyright is not a positive right but a negative right that is the right to stop others from exploiting the work without the copyright owners consent or license. Thus where, for instance, the work is derived from some other work in which copyright subsists as in the case of translation, adoption or abridgement of a literary work the author of such work can stop others from exploiting it but he cannot himself exploit that work without the consent or license of the original work from which the work has been derived. a) The work is first published in India. b) Where the work is first published outside India the author, at the date of publication must be a citizen of India. c) In the case of an architectural work of art, the work is located in India
Conditions for qualifying as copyright
COPYRIGHT BOARD, POWERS AND PROCEDURE [SECTIONS 11 TO 12] Constitution and composition of the Copyright Board
The Central Government has constituted a Copyright Board. The Copyright Board shall be deemed to be a civil court and all proceedings shall be deemed to be judicial proceedings.
Settlement of disputes with regard to copy right, infringement thereof, assignment, determination of royalties, compulsory licence in public interest, and other matters incidental thereto.
Functions of the copyright Board
Assignment of copyright
The owner of the copyright in an existing work may assign to any person the copyright either wholly or partially and either generally or subject to limitations and either for the whole term of the copyright or any part thereof. The assignment shall be in writing and for a consideration.
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TERM OF COPYRIGHT
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LAW & SOURCES
Published literary, dramatic, musical and artistic works etc. - Lifetime of the author upto 60 years from the beginning of the calendar year next following the year in which the author dies. The broadcast reproduction right - 25 years from the beginning of the calendar year next following the year in which the broadcast is made.
Performer's right - 50 years from the beginning of the calendar year next following the year in which the performance is made.
LICENCES (Section 30) Licences by owners of copyright
The owner of the copyright in any existing work or the prospective owner of the copyright in any future work may grant any interest in the right by licence in writing signed by him or by his duly authorised agent. Upon a complaint made to the Copyright Board and on being satisfied in the public interest, the Board may direct the Registrar to grant compulsory licence to the Complainant on such conditions as maybe prescribed.
STATUTORY EXCEPTIONS TO INFRINGEMENT (SECTION 52)
Some of the exceptions provided under the Act are as follows: a fair dealing with a literary, dramatic musical or artistic work; the making of copies or adaptation of a computer programme by the lawful possessor; the doing of any act necessary to obtain information essential for operating inter-operability of an independently created computer programme. the reproduction of a literary dramatic, musical or artistic work for the purpose of a judicial proceeding; the reading or recitation in public of any reasonable extract from a published literary or dramatic work;. the publication in a collection, mainly composed of non-copyright matter, bona fide intended for the use of educational institutions; the reproduction of a literary, dramatic musical or artistic work by a teacher or a pupil in the course of instruction; or as part of the question to be answered in an examination; or in answers to such questions; the making of sound recordings in respect of any literary, dramatic or musical work, if sound recordings of that work have been made by or with the licence or consent of the owner of the right in the work; the person making the sound recordings has given a notice of his intention to make the sound recordings, has provided copies of all covers or labels with which the sound recordings are to be sold, and has paid in the prescribed manner to the owner of rights in the work royalties in respect of all such sound recordings to be made by him, at the rate fixed by the Copyright Board in this behalf. the causing of a recording to be heard in public by utilising it in an enclosed room or hall. the making of not more than three copies of a book; the reproduction, for the purpose of research or private study;
Compulsory licence in works withheld from public
(i) (ii) (iii)
(iv) (v) (vi)
(vii)
(viii)
(x) (xi) (xv)
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CH. 1
LAW & SOURCES
PENALTIES FOR INFRINGEMENT OF COPYRIGHT (SECTIONS 54 62)

Imprisonment for a minimum period of 3 years and with fine upto Rs. 2 lakhs. For any second and subsequent convictions imprisonment up to three years and the fine upto Rs.2 lakhs.
COMPARITIVE ANALYSIS OF PATENT, COPYRIGHT AND TRADEMARK PATENT

Right Protected
COPYRIGHT
Original, literary, dramatic, musical and artistic works, cinematograph film and records.
TRADEMARK
To use a particular mark, which may be a symbol, word, device applied to articles of commerce to indicate the distinctiveness of goods.
A new invention to manufacture the product patented or use the process patented.
Time Period
20 years and in case of food and drugs 5 or 7 years.
Lifetime plus 60 years for literary, 7 years and may be renewed dramatic, musical and artistic from time to time. works. 50 years from year of publication for records. The author or publisher of, or owner of or other person interested in the copyright in any work. Proprietor of the trademark and application may be made in the name of an individual, partners of a Firm, Corporation, Government department or Trust. Licensing the right by registration of the licensee as a registered user.
Who Can Register
Actual inventor or an assignee of the right to make an application or legal representative of either.
Commercial Use
Assigning rights or licensing them to industrialists for a lump sum payment or royalty basis. Injunction, Damages, Accounts of profits.
By assigning or licensing the right to others on a royalty or lump sum basis.
Remedy For Infringement
Civil, Criminal, Administrative.
Injunction, Damages, Accounts of profits
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CHAPTER 7 ENVIRONMENTAL LAWS
CH. 1
LAW & SOURCES
Source of The Environment Protection Act, 1986

The United Nations Conference on the Human Environment held at Stockholm in June 1972, it was decided to take appropriate steps for the protection and improvement of human environment. India was a participant country. Thus for the purpose of implementing the said decision, the Environment Protection Act, 1986 was rd enacted on 23 May 1986. This Act is an umbrella Act. Environment has been defined to include water, air and land and the interrelationship, which exists among and between water, air and land, and human beings, other living creatures, plants, microorganism and property. Environmental pollution means the presence in the environment of any solid, liquid or gaseous substance in such concentration as may be, or tend to be, injurious to environment. The Central Govt. has been empowered to take following actions including issue of requisite Rules, Orders, Directions (i) co-ordination of actions by the State Governments, officers and other authorities. (ii) planning and execution of a nation-wide programme for the prevention, control and abatement of environmental pollution; (iii) laying down standards for emission or discharge of environmental pollutants from various sources whatsoever: (iv) restriction of areas in which any industries, operations or processes or class of industries, operations or processes shall not be carried out or shall be carried out subject to certain safeguards; (v) laying down procedures and safeguards for the handling of hazardous substances; (vi) examination of such manufacturing processes, materials and substances as are likely to cause environmental pollution; (vii) carrying out and sponsoring investigations and research relating to problems of environmental pollution; (viii) inspection of any premises, plant, equipment, machinery, manufacturing or other processes, materials or substances and giving, by order, of such directions to such authorities, officers or persons as it may consider necessary to take steps for the prevention, control and abatement of environmental pollution; (ix) establishment or recognition of environmental laboratories and institutes to carry out the functions entrusted to such environmental laboratories and institutes under this Act; (x) collection and dissemination of information in respect of matters relating to environmental pollution; (xi) preparation of manuals, codes or guides relating to the prevention, control and abatement of environmental pollution; (xii) such other matters as the Central Government deems necessary or expedient for the purpose of securing the effective implementation of the provisions of this Act. The Central Government may appoint appropriate number of officers and entrust them powers and duties for the purpose of this Act. Central Pollution Control Board; Environmental laboratories have been established under the Act to issue directions to any industry or any local or other authority and analysis of samples of air, water, soil or other substance respectively for the violation of the standards and rules relating to hazardous waste, bio-medical waste, hazardous chemicals, industrial solid waste, municipal solid waste including plastic waste etc. Imprisonment upto five years with or without fine upto Rs. One lakh For continuing contravention fine of Rs. 5,000 has been prescribed. The civil court shall not have jurisdiction to entertain any suit or proceeding in respect of anything done, action taken or order or direction issued by the Central Government under this Act. The provisions of this Act shall have an overriding in so far as other Acts affecting any factory is concerned. Pre- Environmental Clearance is mandatory for the expansion and modernization of any activity or new projects. Following Rules, Notifications, Orders, Directions have been issued by the Central Government
An umbrella Act

Power of Central Government to take measures to protect and improve environment [SECTION 3]
Establishment of Central Pollution Control Board; Environmental Laboratories
Penalty for contravention [SECTION 15]
Bar of jurisdiction [SECTION 22]
Environmental clearance a prerequisite

Other measures initiated by the Central Government
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CH. 1
LAW & SOURCES
(i) (ii) (iii) (iv)
State Coastal Zone Management Authority Eco-marks Scheme Eco-sensitive Zones Hazardous Substances Management batteries, Municipal waste, Recycle Plastic Manufacture and usage, Chemical accidents, Bio-medical waste etc. (v) Noise Pollution (vi) Animal Welfare (vii) Public liability Insurance
The National Environment Appellate Authority Act 1997

This Appellate Authority has been established to hear appeals with respect to restriction of areas in which any industries, operations or processes or class of industries, operations or processes shall not be carried out or shall be carried out subject to certain safeguards under the Environment (Protection) Act, 1986 and for matters connected therewith or incidental thereto. United Nations Conference on Environment and Development held at Rio de Janeiro in June 1992 decided that the member countries to develop national laws regarding liability and compensation for the victims of pollution and other environmental damages. Accordingly, the National Environment Tribunal Act 1995 was enacted.
The National Environment Tribunal Act 1995
Chapter 09
RIGHT TO INFORMATION ACT, 2005
HISTORICAL BACK GROUND

Disclosure of Government Information in India is governed by a law enacted during the British Rule. Over large parts of India, the Official Secrets Act of 1889 which was amended in 1923. This law secures information related to security of the State, sovereignty of the country and friendly relations with foreign states, and contains provisions which prohibit disclosure of non- classified information. Civil Service conduct rules and the Indian Evidence Act impose further restrictions on government officials' powers to disclose information to the public. In 1975, the Supreme Court delivered a landmark judgment on the citizen's Right to Know
PASSAGE OF A NATIONAL LEVEL LAW - FREEDOM OF INFORMATION ACT, 2002

Passage of a national level law, however, proved to be a difficult task. Given the experience of state governments in passing practicable legislation, the Central Government appointed a working group under H D Shourie and assigned it the task of drafting legislation. The Shourie draft, in an extremely diluted form, was the basis for the Freedom of Information Bill, 2000 which eventually became law under the Freedom of Information Act, 2002. This Act was severely criticised for permitting too many exemptions, not only under the standard grounds of national security and sovereignty, but also for requests that would involve "disproportionate diversion of the resources of a public authority". There was no upper limit on the charges that could be levied. There were no penalties for not complying with a request for information. The FoI Act, consequently, never came into effective force.
RIGHT TO INFORMATION ACT 2005

RTI Act 2005 - doomed FoI Act led to sustained pressure for a better National RTI, became effective from 13th Oct 2005
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CH. 1
LAW & SOURCES
Objective of the Act

Informed citizenry and transparency of information- vital to democracy, contain corruption and hold Governments and their instrumentalities accountable to the governed (citizen) Secure access to information under control of public authorities, Preservation of confidentiality of sensitive information Likely to conflict with other public interests; harmonise Penal provisions - failure to provide information Provisions to ensure -maximum disclosure and minimum exemptions, consistent with the constitutional provisions. Effective mechanism - access to information and disclosure by authorities To provide effective framework for effectuating right to information - recognized under Article 19 of the constitution of India.
Definition
Information meanso any material in any form, including o Records, documents, memos opinions, advices o e-mails o Reports, papers, samples, Models, o Press releases o Circulars, orders, logbooks, contracts o Information relating to any private body that may be accessed by Public Authority
Right to information includes the right too inspection of work, documents, records; o taking notes, extracts or certified copies of documents or records; taking certified copies, o samples of material; o obtaining information in electronic mode or through printouts
RESPONSIBILITIES OF PUBLIC AUTHORITY
Every public authority shall o maintain computerised records, catalogued and indexed; o connected through a network all over the country on different systems to facilitate access to records; publish within 120 days :o particulars of its organisation, o functions, powers, duties, of officers and employees, o decision making process, including channels of supervision and accountability, o statement of categories of documents held under its control, facilities available to citizens for obtaining information, including working hours of library or reading room, if any, o names, designations and particulars of Public Information Officers Information shall be disseminated o in cost effective, o local language, o most effective method of communication in that local area and the information o easily accessible
EXEMPTION FROM DISCLOSURE

Information, prejudicially affect the sovereignty and integrity of India, the security, strategic, scientific or economic" interests of the State, relation with foreign State or lead to incitement of an offence;
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CH. 1
LAW & SOURCES
expressly forbidden to be published by any court of law or tribunal or the disclosure of which may constitute contempt of court; cause a breach of privilege of Parliament or the State Legislature; commercial confidence, trade secrets or intellectual property, the disclosure of which would harm the competitive position of a third party, unless the competent authority is satisfied that larger public interest warrants the disclosure of such information; available to a person in his fiduciary relationship, unless the competent authority is satisfied that the larger public interest warrants the disclosure of such information; received in confidence from foreign Government; endanger the life or physical safety of any person or identify the source of information or assistance given in confidence for law enforcement or security purposes; impede the process of investigation or apprehension or prosecution of offenders; cabinet papers including records of deliberations of the Council of Ministers, Secretaries and other officers; personal information the disclosure of which has no relationship to any public activity or interest, or which would cause unwarranted invasion of the privacy of the individual (but it is also provided that the information which cannot be denied to the Parliament or a State Legislature shall not be denied by this exemption);
EXEMPTED PUBLIC AUTHORITY

Central Intelligence and Security agencies like IB, RAW, Central Bureau of Investigation (CBI), Directorate of Revenue Intelligence, Central Economic Intelligence Bureau, Directorate of Enforcement, Narcotics Control Bureau, Aviation Research Centre, Special Frontier Force, BSF, CRPF, ITBP, CISF, NSG, Assam Rifles, Special Service Bureau, Special Branch (CID), Andaman and Nicobar, The Crime Branch-CID-CB, Dadra and Nagar Haveli and Special Branch, Lakshadweep Police. The exclusion, is not absolute These organizations have an obligation to provide information pertaining to allegations of corruption and human rights violations. Information relating to allegations of human rights violation could be given but only with the approval of the Central or State Information Commission
PROCEDURE
Application o in writing or through electronic means in English or regional language along with prescribed fees to Public Information Officer o no fees from persons below poverty line o not required to give any reason for requesting information
TIME LIMIT FOR PROVIDING INFORMATION

If request made to PIO - 30 days of receipt. If the request made to an APIO - 35 days of receipt. If PIO transfers request to another public authority (better concerned with the information requested) - 30 days but computed from day after it is received by PIO of the transferee authority. Information concerning corruption and Human Rights violations - 45 days but with the prior approval of the Central Information Commission. Information concerning life or liberty of any person - PIO is expected to reply within 48 hours

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1 CHAPTER 1 LAW AND ITS SOURCES

DEFINITON OF `LAW` - ARTICLE 13 (3) OF CONSITTUTION OF INDIA

NEED FOR KNOWLEDGE OF `LAW`

EXTENT OF LAWS MADE BY LEGISLATIVE BODIES

SUBJECT MATTER OF LAWS MADE BY LEGISLATIVE BODIES

LAW & SOURCES

Residuary Legislative Powers

LECTURES BY PROF. S N GHOSH

3 CHAPTER 01 INDIAN CONTRACT ACT 1872

LAW & SOURCES

Agreement (Section 2(e)

1.1 ESSENTIAL ELEMENTS OF CONTRACT

LECTURES BY PROF. S N GHOSH

LAW & SOURCES

CLASSIFICATION OF CONTRACTS 1. Classification according to validity or enforceability.

Valid Voidable Void contracts or agreements Illegal. Unenforceable

2. Classification according to Mode of formation

3. Classification according to Performance

Executed contract Executory contract. Unilateral Contract Bilateral Contract

OFFER AND ACCEPTANCE [Sections 3-9] OFFER What is `Offer/Proposal`

How an Offer is made?

ESSENTIAL REQUIREMENTS OF A VALID OFFER

LAW & SOURCES

TERMINATION OR LAPSE OF AN OFFER

Acceptance how made

ESSENTIALS OF A VALID ACCEPTANCE 1) Acceptance must be absolute and unqualified.

6 COMMUNICATION OF OFFER, ACCEPTANCE AND REVOCATION

LAW & SOURCES

CAPACITY TO CONTRACT (Sections 10-12) WHO ARE NOT COMPETENT TO CONTRACT

LAW & SOURCES

(2) Mental Incompetence

(3) Incompetence through Status

LAW & SOURCES

CONSIDERATION [Sections 2(d), 10,23-25, 148, 185] Definition

Consideration has been defined as

Executed or Present Executory or Future

LEGALITY OF OBJECT (Sections 23, 24)

What consideration and objects are unlawful agreement VOID

LAW & SOURCES

VOID and VOIDABLE Agreements (Sections 26-30) Void agreement

CONTINGENT CONTRACTS (SECTIONS 31-36)

When a contingent contract may be enforced

LECTURES BY PROF. S N GHOSH

LAW & SOURCES

QUASI CONTRACTS [SECTIONS 68- 72]

CONTRACTS, WHICH NEED NOT BE PERFORMED

LAW & SOURCES

a. Novation (substitution) b. Recession (cancellation) c. Alteration

REMEDIES FOR BREACH OF CONTRACT (SECTIONS 73-75)

c) Specific performance d) Injunction e) Quantum meruit Ex

CONTRACT OF AGENCY [SECTION 182 238]

WHO CAN EMPLOY AN AGENT

LAW & SOURCES

5. Not to make any secret profits

PRINCIPAL'S DUTIES TO AGENT

LAW & SOURCES

CHAPTER 03 SALE OF GOODS ACT 1930

FORMATION OF THE CONTRACT OF SALE Definition (Section 4)

ESSENTIALS OF CONTRACT OF SALE

`SALE` AND 'AGREEMENT TO SELL' DISTINGUISHED

LAW & SOURCES

Sale and Hire Purchase Agreement Hire Purchase Agreement

LAW & SOURCES