Legal Aspects of Business Summary Arun Kumar Rajendran (B36)   1) Indian Contract Act,

1800 WordsApr 23, 20198 Pages
Legal Aspects of Business Summary Arun Kumar Rajendran (B36) 1) Indian Contract Act, 1872 Contract Definition A Contract is an agreement enforceable by law. The definition of the term contract requires definition of 2 major terms namely “Agreement” and “Promise”. An “Agreement” is every promise or a set of promise that are forming a consideration. Elements of a Valid Contact: • Proper Offer and Proper Acceptance with Intention to Create Legal Relationship • Lawful Consideration and Lawful Object • Competent Parties • Consent Free • The Agreement should not be Declared Void • Certainty of Meaning • Possibility of Performance • Compliance of Necessary Legal Formalities Types of Contract: Validity: a. Valid Contract: An agreement…show more content…
b. Executory Contract: These are the contracts which are under the process of execution. In these contracts the legal obligation of both the parties are still live. c. Unilateral Contract: These are those contract in which there is only one person who is executing the contract while the others do not have any promise or obligation. d. Bilateral Contract: These are contracts in which the obligation of the contract is on both the parties. 2) Indian Partnership Act Meaning of Partnership: Association of two or more partners who have agreed to share the profits of a business carried on by all or one of them. Salient Features • Essentials of an Agreement: a. The major constituents of partnership are agreement, association of two or more partners, sharing of profits, business and relationship between partners. b. Partnership with more than 20 partners is invalid, partnership between kartha of Hindu Undivided Family (HUF) is considered invalid as the entire family’s consensus is required for the same. • Types of Partnership: a. Partnership at Will: The partnership in which there is no fixed term. There should be an express or implied agreement for the same. b. Particular Partnership: This is a partnership with a specific task to be accomplished. In the partnership a specific deadline is fixed for the project. • Kinds of Partners: a. Active Partners b. Sleeping Partner c. Nominal Partner d. Partner in

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