Intro to Legal Environment

8/9/2019 Intro to Legal Environment

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Legal Elements of Contract

Contract creates a legal bond.Contract consists of reciprocal promises.

Contract is an agreement between two ormore parties establishing an enforceablelegal relationship.Contract is an agreement between theparties which creates an obligation to door not to do a particular thing.

Agreement enforceable by law is contract


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All contracts are agreement but allagreements are not contracts.Personal and social agreements are not enforceable by law.If an agreement imposes a legalobligation, it is enforceable contract.

Therefore, 2 basic requirements of contract (1) an agreement (2) legalenforceability


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P roposal > when accepted becomes > promise > every promise or set of promises,forming the consideration for each other is anagreement > agreement enforceable by law iscontract .

Agreement is an offer coupled with acceptance.C

onsensus ad idem both parties agreeing onsame thing in the same sense. Meeting of both sminds.


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O ffer and Acceptance

An Offer is a proposal by one party toanother to enter into a legally binding

agreement.Offer can be made By express words, spoken or written e.g.purchase of houseOffer implied by conduct implied offere.g. Transport Co. runs busSpecific offer, General Offer


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Laps or Termination of an O ffer

When the offer is not accepted in theprescribed mode

Lapse of timeBy rejection or counter-offerBy death or insanity of either party to the

contract By revocation / terminationOn failure to fulfill condition precedent


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R evocation of Acceptance

Acceptance of offer may be revoked at any time before the communication of the

acceptance is complete as against theacceptor but not afterwards.Revocation of acceptance means thewithdrawal of the acceptance to aproposal by the offeree himself.


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CONS IDER ATI ON

An agreement without consideration isvoid.Consideration when at the desire of thepromisor, the promisee has done orabstained from doing, or does or abstainsfrom doing, or promises to do or abstains

from doing, something, such act orabstinence or promise is called aconsideration. It is exchange in bargain.


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Legal Enforceability

All contracts are agreements, but allagreements are not contracts.

Intention to create legal relations. Agreement, to be a contract, must giverise to a legal obligation between theparties.


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Classification of Contracts

|Based on validity of contract, mode of formation or the extent of performance

Enforceability

Valid Voidable Void

Unenforceableillegal

Method of FormationFormalSimple

Extent of performanceExecutedexecutory


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Doctrine of Vicarious Performance

Vicarious liability means that one person ismade liable for the wrongful act of another.Master/ owner is responsible for the actsor omission on part of his servant.


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Doctrine of S ubstantial

PerformanceIt is said that the contract is substantiallyperformed if the actual performance fallsnot far short of the required performance.The cost of remedying the defect is not too great in amount, in comparison withthe contract price.


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Performance when Time is the

Essence of the ContractWhen the parties to a contract fix the timefor its performance, ordinarily it isexpected that either party will perform hisobligation at the stipulated time.Whether the time is the essence of thecontract or not depends upon theintention of the parties.


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Void Agreements

Agreement by incompetent parties Agreements under mutual mistake of fact material to the agreement

Agreement with unlawful consideration orobject (immoral and illegal agreements,and agreements opposed to public policy)

Agreements unlawful in part Agreement without consideration ---conted to next slide


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Void Agreements - conted

Agreements in restraint of trade /marriage

Agreements in restraint of legalproceedings Agreements which are uncertain andambiguousWagering agreements

Agreements to do impossible acts


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Contract of Agency

An agent is a person employed to do anyact for another, or to represent another indealings with third persons.Connecting link between the principal andthird parties.

Agent has an intention to act on behalf of principal.


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Introduction to Legal Environment

Philosophy of LawClassification of Law

TortsNational Law and International LawJustice Delivery System in India


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O bjective to learn the Course

To familiarize with legal environment inwhich different business entities operateTo learn basic relevant legal provisionsTo appreciate impact of legal provisionson decision makingTo learn various law principles throughcase study discussions ( different groups will be allotted cases fordiscussions )


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M odule & Caselet (8 Groups of the

ClassS

tudents)1. Intro to Legal Environment Preventive

Injunction against Potential Nuisance CaseLaw K uldip Singh vs Subhash

2. Busi Contracts Can Advertisements create aContract Case Law Carlill vs CarbolicSmoke Ball Company

3. But .. Minor is an Innocent ! Is a Contract entered into by /with minor valid ? Case Law Mohori Bibee vs Dharmadas


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7 . Do workmen have a stake in theirCompany ? National Textile Workers Union vs P.R. Ramakrishnan

8. Cyber Law Harsh Truth in SoftwarePiracy


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M eaning of Law

Law means and includes any ordinance,order, by-law, rule, regulation,notification, custom or usage having in theterritory of India the force of law.Law in force includes Laws passed bylegislature or other competent authority.Law is a rule relating to the actions of human beings.


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Purpose of Law

To maintain order and secure justiceTo ensure stability and security

To give freedom to individualsLaw is an effective instrument forsecuring Justice.


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S ources of Law

Formal sourcesMaterial sources Legal sources statutelaw (legislators enacts. Parliament of India), case law (precedents), customary lawhaving its source in customs. Thesessources have binding force .

Historical sources no binding force e.g.literary work, foreign decisions. It haspersuasive force only.


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M alfeasance

Malfeasance is the actual commission of an unlawful act. Doing such an act whichone has legal duty to refrain from doing it.E.g. Trespass making unlawful entryupon land or person or right Driving a car without a licence and makinginjury to passengers.


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M isfeasance

Improper performance of a lawful act. It isan improper conduct in performing an act.

E.g. driving a motor car, by a person -holding a valid licence, at an excessivespeed in congested area of the city wherecaution notice is speed not to exceed 15kmph and driving car at an excessivespeed of 4 5 kmph and injuring passer-by.


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N on-feasance

Omission of necessary action.Non-performance of an act when one is

under a legal duty to perform it.Qualified doctor forgets to perform thescheduled surgery and patient dies .


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J ustice delivery system in India

Indian Judicial HierarchySupreme Court

High Court Subordinate Courts Civil Courts, CriminalCourts

TribunalsConsumer Disputes Redressal Forum

Intro to Legal Environment

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