LAW MODEL PART 3

Thanks to  Rama Chandar Sir

i)       “All contracts are agreements but all agreements are not contracts” Explain.

ii)    Define an unpaid seller. What are his rights?

iii)  What is winding up of a company? Discuss the various categories of winding up and the procedure there for.

iv)  When is a negotiable instrument considered as dishonoured?  What are the duties of a holder upon such dishonour?

v)    Explain the liability of employer to pay compensation under the workman compensation Act, 1923.

Solutions

1. All contracts are agreements but all agreements are contracts : contracts includes agreements. Contracts are those agreements which can be enforceable by law.

Some agreements are enforceable by law are : social agreements, illegal agreements, unlawful agreements, unenforceable agreements.

2. un paid seller : a seller is deemed to be unpaid seller when : (i) the whole of the price has not been paid or tendered, (ii) a bill of exchange or other negotiable instrument has been received as a condition payment, which has been dishonoured  .

rights of unpaid seller : 
(i) against goods:
 (a) lien on goods
 (b) stoppage in transit 
(c) re-sale
(d) withholding delivery

(ii) against the buyer personally: (a) suit for price

(b) Suit for damages

(c) Repudiation of contract

(d) Suit for interest

3. Winding up of a company: last stage in its life. It is a process by which a company is dissolved.

Modes of winding up:  

 1. by court : by special resolution, default in holding statutory meeting, commence business within a year from the date of incorporation, inability to pay debts, any just and equitable reason.

2. voluntary winding up : by members, by creditors

3. subject to the supervision of the court

4. Negotiable instrument considered to be dishonoured: (1) (Sec.91) Dishonour by non-acceptance   (2) (Sec.92) Dishonour by non-payment

Duty of the holder of instrument: (a) must give notice of dishonour. (b) Noting and protesting (c) suit for money

5. Liability of the employer to pay compensation: An employer is liable to pay compensation to workman for:

(1) personal injury by accident: arising out of and in the course of employment, out of employment.

(2) Occupational disease contracted by him.