ASSIGNMENT MB-0051

Q1. What are the sources of Indian law? Discuss any one important source of law and justify why it is important? ANS. The main sources of modern Indian law may be divided into two broad categories. 1. Primary sources. 2. Secondary sources.

Primary sources-:
The primary sources of Indian law are: Custom Judicial precedent Statute Personal law

Secondary sources-:
The secondary sources of Indian law are: 1. English law a. Common law b. Equity c. Law merchant d. Statute law 2. Justice, equity, and good conscience

Custom-:
Custom have played an important role in making law and therefore are also known as customary laws. In other words of Keaton, customary law may be defined as those rule of human action, established by usage and regarded as legally binding by those to whom the rules are applicable, which are adopt by the courts and applied as sources of law because they are generally followed by the political society as a whole or by some part of it. In simple words, it is generally observed course of conduct by people on a particular matter. When a particular course of conduct is followed again and again, it becomes a custom. Q2. What is a contract? Which test would you apply to ascertain whether an agreement is a contract?

ANS.

Contract-:

According to section 2 (h) of the Indian contract Act, 1872, a contract is an agreement enforceable by law made between at least two parties as per which rights and obligations are mutually created for both parties. If the party who had agreed to do something fails to do that, then the other party has a remedy in law. Eg-: D Airlines sells a ticket on 1 January to X for the journey from Mumbai to Bangalore on 10 January. In case the airlines fail to fulfil its promise, X has the right to sue the airlines for breach of contract.

Agreement-:
1. Section 2 (e) of the contracts Act defines an agreement as every promise and every set of promises forming a consideration for each other. For an agreement, a promise becomes essential. 2. The agreement must be enforceable by law to become a contract. Thus, there are certain agreements that do not become contract as the element of enforceability by law is absent.

Essential for contract-:

1. Section 10 of the contracts Act provides that all agreements are contracts if they are made by free consent of parties competent to contract for a lawful consideration with a lawful object and are not expressly declared by a law to be void. 2. To constitute a contract, there must be an agreement between two or more parties. One cannot enter into a contract with oneself. An agreement is composed of two element Offer or proposal by one party. Acceptance thereof by the other party. If one or more essentials of a valid contract are missing, then the contract may be voidable, void , illegal or non-enforceable. Q3. Write short notes on: a. Agent and agency. b. Bailor and bailee ANS

Agent and agency-:

According to section 182, an agent is defined as a person employed to do any act for another or to represent another in dealings with a third person. Thus 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.

For example, Anil appoints Bharat, a broker, to sell his Maruti car on his behalf. Anil is the principal and Bharat is his agent. The relationship between Anil and Bharat is called as agency and is based on an agreement whereby one person acts for another in transaction with a third person. Agent is a person employed to do any act for another or to represent another in dealing with the third persons is called as agent. An agency by express agreement is created when by spoken or written words an express authority is given to an agent.

Bailor and bailee-:

1. Duties of a bailor-:
To disclose known faults in goods (section 150). To bear liability for breach of warranty as to little. To bear expenses in case of gratuitous bailment. To bear expenses in case of non-gratuitous bailment. The bailor can enforce, by suit, all duties or liabilities of the bailee. In case of gratuitous bailment, the bailor can demand their return whenever he pleases, even though he lent it for a specific time or purpose. To take care of goods bailed (section 151). Not to make unauthorized use of goods (section 154). Not to mix bailors goods with his own (section 155). To return goods bailed without demand (section 160). To return any accretion to goods bailed (section 163). Claiming for compensation. Right of lien (section 170-171). Right against wrongful deprivation (section 180-181).

2. Rights of bailor-:

3. Duties of a Bailee-:

4. Rights of a Bailee-:

Q4 What is the meaning of dissolution of firm? Is it different from dissolution of partnership? ANS.

Dissolution of firm- :
Section 39 provides that the dissolution of partnership between all the partners of a firm is called the dissolution of the firm. When the relationship between all the partners of the firm comes to an end it is called dissolution of the firm. It naturally involves closing down the business. There is no question of reconstituted firm in such a case. A firm may be dissolved in any of the following ways:

 By mutual consent-:
Section 40 provides that a firm may, at any time, be dissolved with the consent of all the partners. This applies to all cases whether the firm is for a fixed period or otherwise.

By agreement-:
Section 40 also provides for the dissolution of a firm in accordance with a contract between the partners. The contract providing for dissolution may have been incorporated in the partnership deed itself or in a separate agreement.

By the insolvency of all the partners but one-:

If all the partners or the entire partners but one become insolvent. It leads to dissolution of the firm. Section 41 calls this as compulsory dissolution.

By business becoming illegal-:

Section 41 provides that a firm is dissolved by the happening of any event that makes it unlawful for the business of the firm to be carried on or for the partner to carry it on in partnership.

Partners becoming alien enemies-:

Section 41 also covers cases of partnership between persons who become alien enemies by a subsequent declaration of a war. In such a case, the partnership is dissolved because trading with an alien enemy is against public policy.

Dissolution of firm is different from dissolution of partnership. It follows that if the dissolution of partnership is not between all the partners, it would not amount to dissolution of firm, but it would nevertheless be dissolution of partnership. Thus, dissolution of firm always implies dissolution of firm. Dissolution of partnership may involve merely a change in the relation of the partners and not the dissolution of the firm. Q5. What do you mean by negotiable instruments? Explain the difference between bill of exchange and promissory note? ANS.

Negotiable instrument-:
1. The term negotiable instrument refers to a written document transferable by mere delivery or by endorsement and delivery to enable the transferee to get a title in the instrument. 2. An instrument may possess the characteristics of negotiability either by statue or usage. 3. Laws relating to negotiable instrument are contained in the negotiable instrument Act 1881.This act deals exclusively with promissory notes, cheques and bills of exchange, as defined under section 13.

4. There are certain instruments that are recognised as negotiable instrument by usage. Thus bank notes, bank draft, share warrants, bearer debentures, dividend warrants, scripts and treasury bills are negotiable by usage. 5. An instrument is called negotiable if it posses the following features: a. Freely transferable. b. Holders title free from defect. c. Holder can sue in own name. d. Transfer infinitum. e. Presumption.

Difference between bill of exchange and promissory notes-:

A promissory note is an instrument in writing containing an unconditional undertaking, signed by the maker to pay a certain sum of money to a specified person or to his order. It does not include a bank or currency note. A bill of exchange is an instrument in writing containing an unconditional to the order of certain person or to the bearer of the instrument.

Parties to a promissory note-:

a) The maker- The person who makes the promising to pay the amount seated therein. b) The payee- The person to whom the amount of the note is payable. c) The holder- Holder is either the original payee or any other person in whose favour the note has been endorsed. d) The endorser- The person who endorses the note in favour of another person. e) The endorsee- The person in whose favour the note is negotiated by the endorsement.

Parties to a bill of exchange-:

a) b) c) d) The drawer- The person to whom the amount of the bill is payable. The drawee- The person on whom the bill is drawn. The payee- The person to whom amount of the bill is payable. The holder- It is the original payee but where the bill has been endorsed, the endorsee. In case of the bearer bill, the bearer or processor is the holder. e) The endorser- It is the person to whom the bill is negotiated by endorsement. f) Drawee in case of need. g) Acceptor for honour. Q6. Discuss the provisions of right to information Act, 2005 and information technology Act 2000? ANS.

Right to information Act, 2005-:

Right to information is a part of fundamental rights of an Indian citizen under Article 19 (1) of the constitution. Article 19 (1) states that every citizen has freedom of speech and expression. Until 1976, the supreme court ruled the people cannot express themselves unless they know. India is a democratic country where people are the masters have a right to know the method of functioning of the government of India, which is meant to serve them. RTI Act, 2005, was implemented in our country on 15 June 2005 and became operational on 12 October 2005.

Rights under RTI Act, 2005-:

Pose any question to the government or seek any information. Obtain copies of any government document. Inspect any government documents. Inspect any government works. Take sample of materials of any government work.

Coverage of the Act-:

All level of government-centre, state, district, and local self governing bodies like panchayat and municipal bodies. NGOs that are financed substantially with public funds provided by government.

Benefits of the RTI-:

Enhancement of transparency, credibility, and legitimacy of public authority. Increase of efficiency, vitality, alertness which are the major ingredients for smooth and effective functioning of public authority. Effective flow of information helps citizen secure their right and entitlement. Free flow of information can tackle any disaster there by enables sustained development and growth. Reminding public authorities their power and duty including channels of supervision and accountability. Encouragement of public authority to be sensible and to make optimum use of limited fiscal resources.

Information technology Act, 2000-:

1. Preamble of the Act-:
At the height of the dotcom boom, India enacted the information technology Act, 2000, in May 2000 and became part of select group of countries to have cyber laws.

This act was enacted so as to provide legal infrastructure for e-commerce and alternatives to paper-based method of information storage and communication. This Act aims to provide legal sanctity to all electronic record and was instrumental in pioneering corresponding changes in other legislations such as the Indian penal code, Indian evidence Act, bankers, book evidence Act and reserve bank of India Act. To provide legal recognition for transaction carry out by mean of electronic data interchange and other means of electronic communication, commonly referred to as electronic commerce, which involve the use of alternatives to paper-based methods of communication and storage and information. To facilitate electronic filing of documents with the government agencies. To facilitate electronic storage of data in place of paper-based methods of storage of data. To amend the Indian penal code, the Indian evidence Act, 1872, the bankers books evidence Act, 1891, and the reserve bank of India Act, 1934. To provide for matters connected there with or incidental there to.

2. Objective of the Act-: