Legal Aspects of Business Notes
Subject Overview
Legal Aspects of Business surveys the statutory framework a commerce postgraduate needs — the Indian Contract Act (formation, breach, indemnity/
Subject at a glance
4
Units
38
Topics
4
Credits
4
Infographics
Unit-wise Syllabus
4 units — open any unit for detailed topic-wise notes, diagrams and important exam questions
- Essential elements of a valid contract
- offer and acceptance
- consideration
- capacity
- free consent
- performance and discharge
- breach of contract and remedies
- contracts of indemnity and guarantee
- surety rights/liabilities
- creation and classification of agency
- principal-agent relationship and termination
Void agreement
Not enforceable by law
Agreement with a minor
Voidable contract
Enforceable at one party's option
Consent by coercion
Illegal agreement
Forbidden by law; collateral deals also void
Agreement to smuggle
Study guide
This unit covers the Indian Contract Act: essentials of a valid contract, offer and acceptance, consideration, capacity, free consent, performance, discharge, remedies, indemnity and guarantee, surety and agency. Revise each essential with a case.
- Contract for sale of goods
- conditions and warranties
- transfer of property
- performance of contract of sale
- rights of unpaid seller
- negotiable instruments meaning/characteristics/types
- holder and holder in due course
- negotiation and endorsement types
- dishonor/noting/protest
- liability of parties
Importance
Essential to the main purpose
Collateral to the main purpose
Breach allows
Repudiation plus damages
Damages only
Can become the other?
Condition may be treated as a warranty
No
Study guide
You study sale of goods (conditions and warranties, transfer of property, unpaid seller) and negotiable instruments (types, holder in due course, endorsement, dishonour, liability). Be able to distinguish condition from warranty and holder from holder in due course.
- Company definition
- features and types
- incorporation
- Memorandum and Articles of Association
- prospectus
- directors
- Foreign Exchange Management Act (FEMA) 2000
- Competition Act 2002
Companies Act 2013
Formation and management of companies
FEMA 1999
Foreign exchange, current and capital accounts
Competition Act 2002
Anti-competitive agreements, abuse of dominance, combinations
SEBI Act
Securities market regulation
Study guide
You study the Companies Act (features, types, incorporation, MOA, AOA, prospectus, directors), FEMA 2000 and the Competition Act 2002. Learn the purpose and main provisions of each statute.
- Consumer Protection Act definitions
- unfair and restrictive trade practices
- consumer rights
- consumer dispute redressal agencies
- Information Technology Act 2000 — digital signature and certificate
- electronic governance and records
- patents
- copyrights
- trademarks and designs
Patent
Inventions: 20 years
Copyright
Creative works: author's life + 60 years
Trademark
Brand names and logos: 10 years, renewable
Design
Shape and appearance: 10 + 5 years
Study guide
You study consumer protection (unfair and restrictive trade practices, rights, redressal agencies), the Information Technology Act 2000 (digital signatures, e-governance, electronic records) and intellectual property (patents, copyright, trademarks, designs). Note that the Consumer Protection Act, 2019 replaced the 1986 Act, so read the current law as well.
Why Legal Aspects of Business Matters
Legal knowledge protects businesses from risk and is central to company secretary, compliance and management careers, as well as to UGC-NET and CS exams.
How to Prepare for Legal Aspects of Business
- Learn leading case laws for contract and sale of goods.
- Make comparison tables for key concepts such as condition vs warranty.
- Read the current provisions of the Consumer Protection and IT Acts.
Legal Aspects of Business: Frequently Asked Questions
What is a negotiable instrument?
A negotiable instrument is a written document, such as a cheque or promissory note, payable to a specified person or bearer and transferable by delivery or endorsement.
What is the Competition Act?
The Competition Act, 2002 prohibits anti-competitive agreements and abuse of dominance and regulates mergers to protect competition in India.