BUSINESS LAW SHORT NOTES

1. Law- Body of principles recognised and accepted by the state for the administration of justice.

2. Business law –Law relating to industry, trade and commerce.

3. Contract – An agreement enforceable by law. [Sect 2(h)]

4. Valid contract- A Contract which fulfills all the essential elements of a Contract as laid down in Sec 10 of the Contract Act.

5. Void Contract – A Contract which ceases to be enforceable by law becomes void, when it ceases to be enforceable. [Sect 2(j)]

6. Void Agreement -An agreement not enforceable by law.

7. Voidable Contract- A Contract which can be avoided or set aside at the option of the aggrieved party. An agreement which is enforceable by law at the option of one or more of the parties there to but not at the option of other or others. [Sect 2(i)].

8. Illegal Contract- Contract which is either prohibited by law or otherwise against the rule of public policy

9. Unenforceable Contract- A Contract which cannot be enforced in a court of law because of some technical defects.

10. Express Contract- A Contract entered into between the parties by words spoken or written.

11. Implied Contract-is one which is inferred from the act of conduct of the parties.

12. Quasi Contract- A Contract which is not intentionally entered into by the parties. It is created by the law.

13. Executed contract- A Contract in which both the parties have performed their respective obligations.

14. Executory contract- A Contract in which both the parties have yet to perform their obligations.

15. Unilateral contracts- A Contract in which one party has performed his share of obligations at the time of the formation of the Contract.

16. Bilateral Contract- A Contract in which obligations of both the parties are outstanding at the time of the formation of the Contract.

17. Contract of record- A Contract of record is either a judgment of court or a recognisance (A written acknowledgment of a debt due to the crown)

18. Agreement-Every promise and every set of promises forming consideration for each other. [Sect 2(e)]

19. Consensus ad idem- means identity of minds. The parties to the agreement must have agreed about the subject matter of the agreement in the same sense and in the same time.

20. Legal obligation- A legal tie which imposes upon a person to do or abstain from doing something.

21.Offer/proposal- When one person signifies to another his willingness to do or 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. [Sect 2(a)]

22. General Offer- an offer is made to world at large or public.

23. Specific Offer - an offer is addressed to a definite person or body of persons.

24. Express Offer – an offer made by words spoken or written.

25. Implied Offer- an offer Implied from the conduct of a person

 26. Cross Offer-When two parties make identical offers to each other in ignorance of each other’s offer.

27. Standing Offer /tender –An offer for the continuous supply of certain goods at a certain rate over a definite period.

28. Counter Offer- When an offer is accepted with some modification in terms of the offer, such qualified acceptance amounts to a Counter Offer.

29. Acceptance When the person to whom an offer is made signifies his assent there to , the  offer is said to be accepted.

30. Express Acceptance- When an offeree expresses his acceptance by words spoken or written.

31. Implied Acceptance – An Acceptance derived from the conduct of the offeree

32. Communication of an offer –complete when it comes to the knowledge of the person to whom it is made.

33. Communication of an Acceptance –Communication of an Acceptance is complete:

As against the proposer -when it is posted duly stamped and properly addressed/

As against the acceptor – when it reached the hands of the proposer.

34. Consideration-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 abstains from doing something. Such act abstinence or promise is called a consideration for the promise.

35. Quid pro quo- means something in return.

36.Free consent-A  Consent is said to be free when it is not induced by “Coercion, undue influence, misrepresentation, fraud or mistake.

37. Consent - 2 or more persons agree upon the same thing in the same sense.

38. Coercion- Forcing a person to enter into a contract.

     Definition-   -Committing or threatening to Commit any act forbidden by the IPC or the unlawful detaining or threatening to detain  any property to the prejudice of any person – with the intention of causing any person to enter into an agreement.

39. Privity of contract-It is a general rule of law that only parties to a contract may sue or be sued on that contact. This rule is technically termed as privity of contract. It means the relationship subsisting the parties of a contract.

40.Person competent to contract.-Persons of Majority , ii) Sound mind  iii) Not disqualified by law