Tag: #indiancontractact

It is stated that accepting an offer is like lighting a match to a barrel of dynamite. For a contract to be successful, a genuine offer must be followed by acceptance of the offer. Let’s look at what defines genuine acceptance in more detail.

Acceptance

“The offer is considered to be accepted when the person to whom the proposition has been made gives his approval thereto,” reads Section 2 (b) of the Indian Contract Act 1872. As a result, the plan becomes a promise once it is authorized. Acceptance happens when the offeree to whom the proposition is made unconditionally accepts the offer, as indicated in the definition. When an offer like this is accepted, it becomes a promise.

Let’s imagine A makes an offer to buy B’s car for Rs. 2 lakhs, and B accepts. This has now become a commitment.

Once a proposal has been approved, it can no longer be amended. If accepted, an offer does not create any legal obligations, but it does create a promise. A promise is also irreversible since it creates legal obligations between parties. It’s possible that an offer will be revoked before it’s accepted. Once acceptance has been conveyed, it cannot be revoked or canceled.

Rules regarding Valid Acceptance

1. Only the person or persons to whom the offer is made and with whom it implies a contracting intention is allowed to accept it:
An offer may only be accepted by the person or persons to whom it is made and with whom it implies a contracting intention; it cannot be accepted by anyone else without the offeror’s permission.

The rule of law reads, “If you plan to create a contract with/1, then B cannot replace himself for A without your agreement.” An offer made to a single person can only be accepted by that individual. Any member of a group of individuals (for example, instructors) can accept an offer that is made to them. Anyone who is aware of the existence of an offer made to the entire world can accept it.

2. Acceptance must be unqualified and unconditional:
To be legally effective, it must be a complete and unqualified acceptance of all the conditions of the offer. If there is even the smallest deviation from the terms of the offer, the acceptance is annulled. A deviating acceptance is considered a counter-offer in the legal sense.

3. Acceptance must be communicated in a common and fair manner unless the proposal specifies how it should be accepted:
If the offeror does not indicate a method of acceptance, acceptance must be expressed in a common and fair manner. The most prevalent modes of communication are the word of mouth, mail, and behavior. An explicit acceptance is one that is expressed in words, either verbally or in writing, or by mail or telegram. When approval is expressed by behavior, it is known as implicit or tacit acceptance.

Implied acceptance can be proven by doing a necessary action, such as locating missing goods for the stated reward, or by accepting a benefit or service, such as a passenger boarding a public bus.

If the offeror specifies a form of acceptance, the acceptance offered in that style is absolutely admissible, even if the mode is funny. As a result, if the offeror specifies lighting a match as a method of acceptance and the offeree does the same, the acceptance is complete and effective.

However, what if the offeree opts for a method other than the one specified? “The proposer may, within a reasonable time after the acceptance is given to him, request that his proposal be accepted in the stated manner, and not otherwise; nevertheless, if he fails to do so, he accepts the (deviated) acceptance,” says Section 7(2).

Reality acceptance is ineffective:
Mental approval or quiet permission without words or activity does not establish legal acceptance, even if the offeror has stated that such a mode of acceptance will suffice. Otherwise, until the offeror is notified, acceptance has no effect.

4. Acknowledgment must be transmitted by the acceptor:
For an acceptance to be valid, it must be communicated to the offeror not just by the offeree, but also by or with the offeree’s authority (or acceptor).

5. Acceptance must be made in a fair amount of time before the offer expires or is revoked:
Because an offer cannot be kept open indefinitely, acceptance must be made within the given time limit, if any. Acceptance must be made within a reasonable time if no time restriction is specified (Shree Jay a Mahal Cooperative Housing Society versus Zenith Chemical Works Pvt. Ltd.).

Before the offer is revoked or expires owing to the offeree’s understanding of the offeror’s death or insanity, acceptance must be provided.

6. Acceptance must happen after the offer is made:
Acceptance must happen after the offer is made. It should come after, not before, the offer. A person was handed shares in a corporation that had not applied for them. He then applied for shares, completely unaware of the previous allocation. Prior to the application, the distribution of shares was deemed to be invalid.

7. Rejected offers may only be accepted if they are renewed:
If an offer has previously been rejected, it cannot be accepted again unless a fresh offer is made (Hyde vs Wrench).

Are There Different Kinds of Contract Acceptance?

Bill acceptances are divided into two categories: general acceptance and qualified acceptance. Absolute acceptance refers to wide approbation that is unqualified and unconditional. Acquiescence that is given without qualification is referred regarded as general acceptance. When someone accepts an order to pay a certain sum in whole and without limitations, this is known as a general acceptance. This is a common type of acceptance unless other payment
arrangements are made.

An acceptance must be wide in order to be legitimate as a general standard. When someone accepts an instrument, they qualify it by attaching a condition to it.

Acceptance can be divided into three categories:

• Acceptance by the Empress
• Acceptance is implied.
• Acceptance on condition

While any of these methods of acceptance is appropriate, signing a formal contract ensures that there is a legally enforceable element in the event of a disagreement. Finally, acceptance involves expressing and affirming one’s agreement to the transaction.

Implied acceptance is defined as acceptance that is indicated indirectly, rather than directly, through the acts of the person to whom an offer is made. An example of implicit acceptance of a bidder’s offer to the auctioneer is the auctioneer striking his hammer three times to signify his approval of a bidder’s offer.

The word “express acceptance” refers to acceptance that is stated orally, in writing, or vocally. For instance, A may write B an email offering his watch for sale, and B could accept the offer.

Qualified Acceptance: Another phrase for conditional acceptance is qualified acceptance. This happens when the person who made the offer tells the person who made the offer that if the terms and conditions alter, or if something happens, he or she will accept the offer. A conditional acceptance is good when you’re not sure how your position will turn out or if there are elements that might modify your existing situation.

This can be used as a counteroffer as well. Before the contract may be made, the initial offeror must accept a counteroffer. It sets expectations for the offer’s acceptance. The most prevalent kinds of conditional acceptance are:

• Qualified to place
• Qualified to amount
• Qualified to time
• Acceptance by some only
• Acceptance for installment payments

This is known as qualified to place when the drawee pays a bill at a certain location alone. It is referred to as qualified to amount if the drawee accepts the exchange and accepts payment for only a portion of what is owed. Qualified to time occurs when the drawee accepts the exchange and pays the bill at a period other than that stipulated in the contract.

When some, but not all, of the drawee’s consent to the transaction, it is referred to as acceptance by some. The bill is accepted for installment payments when the drawee agrees to pay the amount in installments. This must be mentioned explicitly in the contract from the beginning.

The acceptance requirement must be expressed very clearly in the agreement and must be quickly understood. If drawee desires to make a qualifier during acceptance, he or she must do it in such a way that the instrument’s holder knows what was accepted and on the basis of particular criteria.

Written by Muskan Patidar student at Kirit P. Mehta School of law (NMIMS), Mumbai.

ABSTRACT

The Specific Relief Act 1963 chalks out an array of reliefs that can be sought under the tutelage of the civil courts in addition to the other available civil remedies enshrined under CPC 1908 for aiding the enforcement and due fulfillment of the contractual obligations besides providing a host of other civil reliefs.

INTRODUCTION

The Specific Relief Act was enacted on 13th December 1963 on the recommendations of the 9th report of the law commission and it seeks to effectively replace and widen the scope of the Specific Relief Act 1877. The Act expands the horizon of the civil court by arming it with a greater number of reliefs in addition to the existing reliefs available under civil courts.

The act is not only limited to the remedies for the performance of contracts but also provides relief in a variety of fields. Generally, the branches of substantiative laws lay down the rights and duties as per their purpose and thereby provide for the remedies for the violation of those rights. However, the Specific Relief Act per se does not afford any legal rights, but on the other hand, provides a comprehensive scheme of specific remedies in specific terms for the violation of the legal rights.

It is to be noted that the Specific Relief Act does not provide a remedy for the enforcement of the penal laws but only provides for the enforcement of individual civil rights. The Specific Relief Act broadly provides reliefs under the following heads.

• Recovery for peaceful possession of the property
• Specific performance of the contracts
• Rectification and Cancellation of instruments
• Recession of Contracts
• Preventive Relief i.e. Injunction
• Declaratory Relief

1. PEACEFUL POSSESSION OF A PROPERTY

Peaceful possession of a property is quite essential for the maintenance of law and order in society since the failure to observe the same has the potential to create disturbance and disequilibrium in society. Civil Laws primarily CPC 1908, do provide relief per se in this matter. The addition of the reliefs under specific relief act further widen the ambit of the relief available to the public and add to their cause and rescue. Henceforth, the first chapter of the said act provides relief to those who have been unlawfully dispossessed of their property which could be both immovable or movable.

Section 5 of the Act deals with the recovery of legal possession of specific immovable property based on the title. The title may be acquired on the basis of either ownership or possession. The one having the better title is entitled to possession of the property. A suit under Section 5 is an ordinary suit under CPC 1908.

Section 6 of the Act provides the remedy of filing a suit if any person is dispossessed of his immovable property without his consent and the due course of law. The plaintiff need not prove better title for the purposes of the suit under this section but has to prove wrongful dispossession.

In Puthukkattil Parangodan v. Parameswaran¹, it was held that this section seeks to prevent the violation of law and order by restraining a person from using force to dispossess another of his property without the due course of law.
Section 7 deals with the recovery of possession of specific movable property or money value thereof in alternative through an ordinary suit under CPC 1908. A person is entitled to possession if he has either special (bailment, pawn, etc.) or temporary rights. Under this section, the suit can be brought against the actual owner.

Section 8 deals with the liability of the person in possession of the specific movable property to return it back to the person entitled to immediate possession. Under this section, a suit cannot be brought against the actual owner. Relief under this section is sought for only the return of a specific article and not for monetary compensation unlike section 7.

Ganga Bishan v. Jai Narain²: Relief under this section is claimed when monetary compensation cannot afford necessary relief to the plaintiff for the loss of property or when it is very difficult to ascertain the actual value of the property.

2. SPECIFIC PERFORMANCE OF THE CONTRACTS

Today’s contemporary modern world thrives on the intricacy and nuances of contracts. Due to their utmost significance in the economic hemisphere, contracts can be rightly characterized as modern wealth. They form the base of all economic transactions ranging from all sorts of employments/ professional employments to monetary transactions of the bank. Enforcement of the contracts forms the centerpiece in the execution of the contractual obligations as often a particular contract forms a link in the chain of various interlinked contracts and failure to observe any one of them may lead to serious dysfunction of the economic ecosystem.

The Indian Contracts Act 1872 provides relief to the aggrieved parties for the enforcement of the contracts in the form of damages i.e. monetary compensation only. In some instances, the monetary compensation does not suffice and such circumstances demand actual enforcement of the contract. This is where the specific relief act comes into the picture and provides a speedy and just remedy by demanding the enforcement of the contractual obligations through
the instrument of specific performance of the contracts.

Section 10 of the act states that specific performance of the contracts would be enforced in cases where there is no standard for gauging the damage caused due to non-performance of the contract or where the monetary compensation would not suffice for the loss caused due to nonperformance of the contract³.

3. RECESSION OF THE CONTRACTS

Voidable contracts are those that are enforceable at the option of one party to the contract but not the other. It remains valid as long as the aggrieved party wishes to continue with the terms of the contract. There are certain factors that may render a contract voidable at the option of the other party. These factors include lack of free consent in the form of undue influence, fraud, misrepresentation, and coercion, under section 19 and 19 (A), failure to perform a time-bound contract in which the time was of the essence under section 55, and when one party to a contract prevents the performance of a reciprocal promise by the other party under section 53. So, the party at whose instance the contract becomes voidable has the right to rescind the contract. Chapter IV of the Specific Relief Act provides relief of the recession of the contracts.

Section 27 and 28 of the Act lay down detailed grounds for filing a suit for recession. A suit for a recession may be brought when the contract is voidable at the instance of the plaintiff or when the contract is unlawful for latent reasons. When the rights over the subject matter of the contract are acquired by any third party in good faith during the course of a contract for a value, implying a change of position of the parties to the contract or when the plaintiff ratified the voidable contract either expressly or impliedly, the court may refuse to rescind the contract.

4. RECTIFICATION AND CANCELLATION OF INSTRUMENTS

A written transaction is basically called an instrument. The expedience of law and prudence demands a transaction to be in writing. Sometimes, it might so happen that the instruments fail to express the intention of the parties involved due to the operative elements of mutual mistake or fraud. Such a situation demands the rectification of the documents. Section 26 of Chapter III of the Specific Relief act provides for rectification of the mistakenly executed instruments.

When documents/instruments after their due execution are discovered to be void or thereafter become void, such documents need to be canceled and Section 31 to 33 under Chapter V of the Specific Relief Act provides this relief. So basically, when a document becomes void, voidable, or has a reasonable apprehension of causing serious injury to the plaintiff if left outstanding, such instruments can be canceled at the discretion of the court. Benefits are to be restored or compensation is to be given on cancellation of an instrument

In the case of Sri Lakha Granites v. Eklavya Singh⁴, it has been held that an instrument can be canceled only by a court order under Section 31 of the Specific Relief Act and not by unilateral means.

5. PREVENTIVE RELIEF I.E. INJUNCTION

Remedy of injunction falls under the ambit of preventive relief. An injunction is a court order that either directs the party concerned to do a particular act (mandatory injunction wherein the court compels the performance of certain acts to prevent a breach of an obligation) or not do a particular act. In such cases, the order of injunction is issued at the instance of the court. Section 36 to 40 under Chapter VII of the Specific Relief act covers the relief of injunction. The objective of injunction is to restrain the commission or continuance of a wrongful act. An injunction is issued against individuals, public bodies, or states and willful disobedience of it results in contempt of court.

These orders are not granted in cases wherein the specific performance of the contract or damages is likely to serve the purpose of the contract, or where damages are appropriate to remedy, or where the plaintiff is not entitled to an injunction on account of his conduct or where an injunction is not the appropriate remedy.

Injunctions are a discretionary relief and may be temporary or perpetual. Temporary injunctions are granted at any stage of suit for a specified period of time and are governed by the provisions of CPC 1908. They are granted for the protection of interest in the property or to prevent a continuous breach of contract. A perpetual injunction can be made only by deciding the merits of the suit via decree and deciding the rights of the parties. It is to be noted that in suits for an injunction, damages may also be claimed additionally.

In Ishwarbhai v. Bhanushali Nanda⁵, the court observed that the interim injunction can only be sought in the cases where a perpetual injunction is prayed for and not otherwise.

6. DECLARATORY RELIEF

At times, the person legally entitled to the possession or enjoyment of any immovable property might be denied the right to the enjoyment of such property at the instance of the other. It is in the backdrop of such wrongful denial that the court may issue a general declaration as to the entitlement of such right to the aggrieved party. So if a cloud is cast on the title of any immovable property of the plaintiff, he may dispel it with the aid of this discretionary power of the court and avoid future litigation. Section 34 and 35 under Chapter VI of the Specific Relief Act deal with declaratory relief against the impugned person who denies or is interested in denying the right to the aggrieved party.

Conclusion

The Indian Contracts Act forms the backbone of the contracts law in India. Sometimes, the nature of the contracts demands specific performance. However, the Indian Contracts Act lacks effective means for the enforcement of the contracts and provides remedies for the breach of the contractual obligations in the form of damages only. Further, it lacks means for mandatory enforcement of the contract in the form of injunction orders. The Specific Relief Act strikes to cover the loopholes of the Indian contract act by providing the remedies of specific performance of the contracts, orders of injunction, and recession of instruments.

Besides facilitating the smooth execution of contractual obligations, it seeks to provide a host of other reliefs in the civil sphere through means of rectification and cancellation of instruments, declaratory relief, and orders for peaceful possession of the movable and immovable property. In a nutshell, the Specific Relief Act makes a decent effort to facilitate the cause of the aggrieved parties of the civil sphere of law.

Citations:

1. AIR 2002 Ker 221
2. AIR 1983 SC 441
3. Falcke v. Gray (1859) 4 Drew 651
4. AIR 2011 Raj 49
5. AIR 2002 Guj 328

Written by Riya Ganguly student at Bharati Vidyapeeth New Law College, Pune.

Contracts have become an inextricable aspect of our daily lives. We are regulated by contracts in our everyday lives, some of which we are aware of and some of which we are unaware of, whether we are purchasing a commodity from the market or renting a cab. In today’s world, an e-contract can be anything from purchasing a product online to signing an international treaty via the internet. In an e-contract, the offer, invitation to offer, counteroffer, acceptance, and other communications are all done electronically, and the result is an agreement. We all know what contracts are but what exactly is an e-contract.

When parties enter into contracts with each other and engage face to face, it is significantly easier to avoid mistakes than when they are separated and contract with each other using the internet as a medium. Electronic contracts are those that are made through e-commerce and do not need the parties to meet in person. These contracts are essentially the same as paper-based commercial contracts, with the exception that the business transactions are undertaken and closed electronically. The growth of e-commerce enterprises throughout the world has been propelled by technological advancements and globalization.¹

Kinds of E-Contracts

1. Browse Wrap Agreement
   This agreement is referred to as a browsewrap agreement, and it is intended to bind the contractual party via the use of the website. These include the consumer policies and terms of service of websites such as Flipkart or E-bay and are presented in the form of “terms of use,” “person settlement,” or “terms of service,” which may be accessed by hyperlinks in the website’s corner or rear.
2. Shrink Wrap Contracts
   These contracts are the licencing agreements, which impose the agreement’s terms and conditions on the contractual parties and are usually seen on the packaging or in the manuals that come with the software products that consumers purchase.
3. Click Wrap Agreements
   Those agreements require the person to click “ok” or “I agree” to agree to the terms and conditions, which are known as end-person settlements and regulate the licenced use of the software application. There are certain types of examination that ensure that the terms of the agreement are binding on the contractual parties.

Execution of E-Contracts

Various legislation, including the Indian Technology Act of 2000 and the Indian Evidence Act of 1872, have contributed to the popularity and legality of E-Contracts. The I.T. Act specifies the attribution, acknowledgment, and transmission of digital statistics, as well as safe electronic procedures. The IT Act acknowledges the agreement’s core capabilities, which include proposal communication, proposal attractiveness, proposal revocation, and acceptance, as the case may be, which will be conveyed either in digital form or by means of a digital record. Furthermore, under the Indian Evidence Act, a settlement’s popularity is determined by the time period “record,” which includes any records included in a digital record that is delineated on paper. Furthermore, the Indian Evidence Act recognizes the popularity of a settlement by defining “record” as any records contained in a digital record that is sketched on paper, stored, recorded, or replicated on optical or magnetic media created by a computer. Such facts will be acceptable in any procedures, with no similarly proof or production of the authentic document before the concerned authorities, and shall be appeared as proof of any content of the authentic or any reality described therein of which direct evidence would be admissible. ²

In India, the validity of e-contracts is debatable

The Indian Contract Act of 1872 acknowledged customary agreements, which are created by the voluntary assent of contracting parties who are able to contract for a lawful consideration with a legitimate intent and are not specifically ruled void. As a result, there may be no provision in this Act prohibiting the enforceability of electronic agreements as long as they contain the essential elements of a legitimate settlement. The ability to freely agree is one of the most important aspects of a legal contract. On E-contracts, there is frequently no room for discussion.³

Issues and Challenges of an e-contract

• Capacity to Contract
  It’s important to make sure that the people who are signing the electronic “contract” have the legal authority and capacity to do so. Often, a contract is entered into by an anonymous individual. The service provider has no way of knowing if the person who clicked the “I Agree” text or symbol is legally capable of entering into a contract. According to the Indian Contract Act, 1872, one of the essential requirements of a legal contract is the capacity of the parties. Parties’ competence is addressed under sections 10, 11, and 12 of the Act. Contracts put upon by those who are unable to contract are null and void. There may be a circumstance where infants who are not old enough to engage in a contract are involved. Infants who are not old enough to enter into a contract with the service provider may enter into an online contract with the service provider by clicking on the “I Agree” text or symbol.
• Free Consent
  Free consent is a legal need for every contract to be legitimate. There is no room for bargaining with online contracts. For the user, this is a significant drawback. However, the user always has the choice to “take it or leave it” in a transaction. The Supreme Court stated in the case of LIC of India vs Consumer Education and Research Centre that “there would be no reason for a weaker party to bargain as to presume equal negotiating strength under dotted line contracts.” In terms of the dotted line contract, he must either accept or reject the service or goods. Either he accepts the unreasonable or unjust conditions or he refuses to use the service in the future.” As a result, it may be stated that the user should exercise caution while granting his agreement in order to avoid problems.

Decision on the Applicable Law

The law of the forum, or the law of the transaction, or the occurrence that gave rise to the litigation in the first place, are the two options under Indian law for applying personal jurisdiction, i.e., the law of the forum, or the law of the transaction, or the occurrence that gave rise to the litigation in the first place. The courts do have the authority to select the applicable law by finding the system of law with which the transaction has the strongest and most direct link. There is no rule against the application of foreign law or the subjecting of an Indian party to a foreign jurisdiction. The emphasis is on choosing the right law. ⁴

Decision on the Court Jurisdiction

E-contracts provide for a wide range of causes of action to arise in a variety of geographical places. This might result in cases being filed in many locations. Defending litigation in several places might be both costly and time-consuming. As a result, all online contracts should include a forum selection provision. Limiting the vulnerability of online service providers to a single jurisdiction makes strong legal sense. As a result, the online service provider has no alternative but to submit to a single set of rules and related laws. The user has no alternative but to accept the service provider’s Standard Terms and Conditions by clicking the “I Agree”, “I Accept” or “Yes” text or button onscreen.

The mode of an e-contract is the result of a revolutionary shift in changing global technical know-how, but it has also been discovered that the laws governing such e-contracts are ambiguous in nature and must be dynamic in order to accommodate the current changing scenarios of e-commerce, including an e-contract. In India, the law covers all aspects of e contracting. However, technological advancements will provide new obstacles for legislators and government agencies. To stay up with changing technology, laws must be updated and improved on a regular basis.

References

1. Sethuram Sundaram, E-contracts in India: The legal framework, issues, and challenges, Researchgate, 2018.
2. Nikhil Nair, E-contracts, Indian National Baar Association.
3. S.R. Subaashini and Shaji.M, Legal issues arising in E-contracts in India: An analysis, International journal of pure and applied mathematics, 2017.
4. K. Prethev and Aswathy Rajan, A critical analysis of E-contracts in India and Enforceability with respect to Sec-65 of India Evidence Act, International journal of pure and applied mathematics, 2018.

Written by Muskan Patidar student at Kirit P. Mehta School of law (NMIMS), Mumbai.

INTRODUCTION

Whatever is given under power is a writ. Orders, warrants, headings, and so forth given under power are instances of writs. Any individual whose central freedoms are disregarded can move the High Court (under article 226 of the Indian constitution) or the Supreme Court (under article 32) and the court can give bearing or orders or writs. Accordingly, the ability to give writs is principally an arrangement made to make accessible the Right to Constitutional Remedies to each resident. Notwithstanding the abovementioned, the Constitution likewise accommodates the Parliament to give on the Supreme Court ability to give writs, for purposes other than those referenced previously. Additionally, High Courts in India are likewise engaged to give writs for the requirement of any of the freedoms presented by Part III and for some other reason.
In India, both the Supreme Court and the High Court have been engaged with Writ Jurisdiction. Further, Parliament by law can stretch out the ability to give writs to some other courts (counting neighborhood courts) for nearby constraints of the locale of such courts.

WRIT OF QUO WARRANTO

The word Quo-Warranto in a real sense signifies “by what warrants?” or “what is your power”.The Writ of Quo-warranto in the writ is given guiding subordinate specialists to show under the thing authority they are holding the workplace. If an individual has usurped a public office, the Court might guide him not to do any exercises in the workplace or may report the workplace to be empty. Consequently, High Court might give a writ of quo-warranto assuming an individual holds an office past his retirement age.
The Writ of Quo-Warranto can’t be given to an individual working in a private field. This writ is given to an individual in an office, the lawfulness of which is being addressed.

CONDITIONS FOR ISSUE OF THE WRIT OF QUO-WARRANTO

1. The workplace should be public and it should be made by a sculpture or by the actual constitution.
2. The workplace should be a considerable one and not only the capacity or work of a worker at the will and during the joy of another.
3. There more likely than not be a negation of the constitution or a rule or legal instrument, in naming such individual to that office.

CASE LAWS FOR WRIT OF QUO WARRANTO

In the University of Mysore v. Govinda Rao, A.I.R. 1965 S.C. 491(1) case, the Court believed that the writ of quo warranto calls upon the holder of a public office to show to the court under the thing authority he is holding the workplace being referred to. On the off chance that he isn’t qualified for the workplace, the court might limit him from acting in the workplace and may likewise announce the workplace to be empty.

In Amarendra v. Nartendra, A.I.R. 1953 Cal.114. (2) case, the Court held that the writ lies in regard of a public office of a meaningful person and not a private office, for example, participation of a school overseeing panel.

In Mohambaram v. Jayavelu, A.I.R. 1970 Mad.63 (3); Durga Chand v. Organization, A.I.R 1971 Del.73. cases, the Court thought that an arrangement to the workplace of a public examiner can be subdued through quo warranto if in repudiation of significant legal guidelines as it is a considerable public office including obligations of public nature of essential interest to the public.

In K. Bheema Raju v. Govt, of A.P., A.I.R. 1981 (4) A.P. case, the Andhra Pradesh High Court suppressed the arrangement of an administration pleader as the technique endorsed in the significant standards, for this reason, had not been kept.

BUSINESS LAWS

Every one of the laws which relate to how what and why of how organizations are legitimately permitted to and expected to work are included by what is business law. Business law significance incorporates contract laws, assembling and deals laws, and recruiting practices and morals. In straightforward words, it alludes to and relates to the legitimate laws of business and trade in people in general just as the private area. It is otherwise called business law and corporate law, because of its tendency of directing these universes of business.

IMPORTANCE OF BUSINESS LAW

Business law is a significant part of law overall because, without the equivalent, the corporate area, producing area, and the retail area would be in oppression. The point of assembling business and law is to keep up with protected and utilitarian working spaces for all people associated with the business, regardless of whether they’re running it or working for individuals running it.

KINDS OF BUSINESS LAW

There are a few kinds of business laws that are perceived and pursued by nations all over the planet. A portion of these are:

• Contract Law – An agreement is any record that makes a kind of legitimate commitment between the gatherings that sign it. Contracts allude to those worker contracts, the offer of products contracts, rental contracts, and so on
• Employment Law – Employment law is the place where business and law should meet. These laws uphold the standards and guidelines that oversee representative boss connections. These cover when, how and for how much, and how long representatives should function.
• Labour Law – Labour law likewise shows the suitable connection between worker and manager, and pay grades and such. Notwithstanding, an extra component to work laws is the relationship of the association with the business and representative.
• Intellectual property Law – Intellectual property alludes to the immaterial results of the working of the human brain or mind, which are under the sole responsibility for a single substance, as an individual or organization. The approval of this possession is given by intellectual property law, which consolidates brand names, licenses, proprietary advantages, and copyrights.
• Securities Law – Securities allude to resources like offers in the financial exchange and different wellsprings of capital development and gathering. Securities law precludes businesspersons from leading false exercises occurring in the protections market. This is the business law segment that punishes protections extortion, for example, insider exchanging. It is, accordingly, additionally called Capital Markets Law.
• Tax Law – As far as business law, tax assessment alludes to charges charged upon organizations in the business area. It is the commitment of all organizations (aside from a couple of expense excluded humble organizations) to pay their duties on schedule, inability to finish which will be an infringement of corporate duty laws.

BUSINESS LAWS IN INDIA

In the Indian setting, there are a few business law areas vital to the country’s business area. A portion of these are:

• Complete acceptance of the contract by both parties.
• Lawful consideration from both parties.
• Competent to contract:
• Neither party should be a minor.
• No party should be of unwell mind.
• Free consent: neither party should have been pressurized into signing.
• Agency: when one party engrosses another party to perform in place of it.
• Final enforcement of contracts

Sales of Goods Act 1930 –
The exchange of responsibility for substantial, enduring ware between a purchaser and a dealer for a concluded measure of cash warrants an offer of products contract, whose particulars are described by the Sale of Goods Act 1930.

Indian Partnership Act 1932 –
An association in business alludes to when at least two business elements meet up to make another endeavor together. The speculation and benefits are parted equally between the elaborate gatherings. The Indian Partnership Act gives the laws under which associations in India can work.

Limited Liability Partnership Act 2008 –
This Act is separated from the IAP of 1932. A Limited Liability Partnership is a different legitimate element, which proceeds with its business with no guarantees, regardless of whether an organization breaks down, just experiencing the responsibility as referenced in the agreement.

Companies Act 2013 –
This is a definitive business law, which administers and gives the principles relating to every part of creation just as the disintegration of organizations set up in India.

This article is written by Sara Agrawal student at Sinhgad Law College, Pune.

This case brief is written by Sanskriti Goel, a 1st year law student from Chanderprabhu Jain College of Higher Studies and School of law, GGSIPU.

Citation

(1913) 11 ALJ 489

Relevant Act/Sections

The Indian Contract Act, 1872 :

Section 2(a):  When one person signifies to another his willingness to do or to abstain from doing anything, to obtain the assent of that other to such act or abstinence, he is said to make a proposal.

Section 2(b): When a person to whom the proposal is made, signifies his assent thereto, the proposal is said to be accepted. A proposal, when accepted, becomes a promise.

Section 2(d): 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 to abstain from doing, something, such act or abstinence or promise is called a consideration for the promise.

Section 8: Performance of the conditions of a proposal, or the acceptance of any consideration for a reciprocal promise which may be offered with a proposal, is an acceptance of the proposal.

Brief Facts

• The nephew of the defendant had absconded from home. He was nowhere to be found. The defendant sent his servants to various places in search of his nephew.
• The plaintiff was one of the servants of the defendant and he was sent to Haridwar in search of the boy. He was given money for his travel fare and other expenses.
• While the search for the boy was still going on, the defendant issued handbills offering a reward of ₹501 to anyone who might find his nephew and bring the boy back home.
• The plaintiff succeeded in tracing the boy and brought him back to the defendant. As the plaintiff was unaware of the reward offered, he did not ask for it and continued working for the defendant.
• After about 6 months, due to some disputes, the defendant dismissed the plaintiff from the job.
• Afterward, the plaintiff filed a suit against the defendant claiming the reward of ₹501 that was due to him.

Contentions of the Parties

Plaintiff

The plaintiff contended that the very performance of the task assigned to him was sufficient consideration for the defendant’s promise since the plaintiff had successfully traced the boy and brought him back home and thus fulfilling the defendant’s conditions.

He affirmed that neither motive nor knowledge of the offer was not essential and hence, he was entitled to the reward.

Defendant

The defendant argued that there was no contract between the parties as there was no acceptance of the offer.

He also argued that the plaintiff, being his servant, was under an obligation to perform the task assigned to him, and therefore, such performance cannot be regarded as  sufficient consideration for the defendant’s promise.

Legal Issues

• Was there a valid acceptance to constitute a legally binding contract?
• Was the plaintiff entitled to the reward that was offered by the defendant for tracing the boy?
• Did tracing of the boy by the plaintiff can be regarded as sufficient consideration for the defendant’s promise?

Ratio of the Case

In the case of Lalman Shukla v. Gauri Dutt, it was held that there can be no acceptance unless there is knowledge of the offer.

Although in the present case, the offer was a general offer where merely fulfilling the conditions of the offer itself is treated as an acceptance to create a contract but, fulfilling the conditions under the present case cannot be regarded as acceptance of the offer due to lack of knowledge of the offer.

Decision of the Allahabad High Court

The High Court observed that “A suit like the present can only be found on a contract. To constitute a contract, there must be an acceptance of the offer and there can be no acceptance unless there is knowledge of the offer. Motive is not essential but knowledge and intention are. Moreover, there was already a subsisting and therefore, the performance of the act cannot be regarded as a consideration for the defendant’s promise.”

Consequently, the suit was dismissed and the defendant was held not liable to pay the reward to the plaintiff.

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