LAW MODEL PART 1

Thanks to  Rama Chandar Sir

a. Sec. 11, every person is competent to contract who (a)  major  (b) is of sound mind, (c) not disqualified from contracting by any law.

-Incompetent to contract: Minor, person of unsound mind and persons disqualified by any law to which they are subject.

b. VOID CONTRACT : which ceases to enforceable by law Sec.2 (f)

c. Co- Surety : when a debt is guaranteed by two or more sureties, they are called co-sureties. They are liable to contribute as agreed towards the payment of the guaranteed debt. In absence of contract the liability will be equally.

d. lien on goods : it is a right of an unpaid seller to retain possession of goods until payment of the price. Sec.46 (1) (a).

e. Agency : agreement between the principal and the agent and an intention of the agent to act on behalf of the principal. Sec.184 &185. it cane be created expressly or impliedly , by ratification, or by operation of law.

f.  Pledge : a special kind of bailment. A pledge is a bailment for security.

- the bailment of goods as security for payment of debt or performance.

g. sale :  the property is goods is transferred from the seller to the buyer, the contract is called is ‘sale’.

h. Presumptions to negotiable instruments: Considerations, date, time of acceptance, time of transfer, stamp, order of endorsements, holder presumed to be a holder in due course.

i. Prospectus: any document inviting deposits form the public or inviting offers from the public for purchasing shares or debentures of a company is a prospectus. Sec.2 (36).

j. share warrant: a share warrant is by mercantile usage a negotiable instrument. A public company limited by shares may convert its fully paid up shares into share warrants.

k. Industry: as per Industrial Disputes Act, 1947, Sec.2 (j) any systematic activity carried on by co-operation between an employer and his workmen. Workmen may be employed directly or through any agency or contractor. The employment be for the production, supply, or distribution of goods or services.

l. wage: means all remuneration (salary, allowances or other wise), due to any worker or employee if the terms of contract of employment are fulfilled.

m. quorum: means minimum of members who must be present in order to constitute a meeting and transact business there at. The quorum is generally fixed by the articles.