Indian Institute of Management Kashipur

LEGAL ASPECTS OF BUSINESS

Term: II Credit : 1

Instructor: Prof Baharul Islam

Course Objectives

This course will examine common legal issues that affect

business transactions in the marketplace. Students will learn
about the legal framework, dispute resolution, sales contracts,
trade, and other legal issues and risks. Business law, also called
commercial law or mercantile law, the body of rules, whether by
convention, agreement, or national or international legislation,
governing the dealings between persons in commercial matters.

Business law touches everyday lives of a manager through every contractual dealing
undertaken. A contract, usually in the form of a commercial bargain involving some form
of exchange of goods or services for a price, is a legally binding agreement made by two
or more persons, enforceable by the courts. As such they may be written or oral, and to
be binding the following must exist: an offer and unqualified acceptance thereof, intention
to create legal relations, valuable consideration, and genuine consent (i.e., an absence of
fraud). The terms must be legal, certain, and possible of performance.

Business law, on national and international levels, is continually evolving with new areas
of law developing in relation to consumer protection, competition, and computers and the
Internet.

Learning Goals

The core course on Business Law focuses on the fundamental relationship between law
and business and is ideal for those planning careers in a wide range of business areas
including professional accounting, business management, international trade and
industrial relations.

It will equip you with important skills in teamwork and in written and oral communication
as well as high-level analytical, problem solving and research skills. You will learn how to
recognise, analyse and, where possible, avoid many of the legal problems that can arise in
the course of common business transactions. Further, and perhaps more importantly,
where such avoidance is not possible, you will acquire knowledge and skills that will
empower you to intelligently request, understand and act on legal services and advice.
These are vital business skills that are relevant not just to business in the context of the
Indian legal system but also in the context of the legal systems of the many other 'common

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law' countries around the world. Thus, as the accountability and personal liability of
professionals, business managers and public servants continues to grow, a strong
grounding in business law is increasingly being seen as an attractive attribute for potential
employers both nationally and internationally.

Session Plan

Session Topics Readings

Indian Contract Act 1872 Chapters
1 Nature and kind of contract, Offer and acceptance of offer 1&2
2 Capacity of parties and consideration, Free consent 3&4
3 Void agreements and contingent contract; Performance of 5&6
contract
4 Discharge of contract; Remedies for breach of contract and 7&8
Quasi contract
5 Indemnity and guarantee; Bailment and pledge; Agency 9, 10 & 11
6 The partnership Act 1932 12
7 The sales of Goods Act 1930 13
8 The Negotiable Instrument Act 1881 14
9 Consumer Protection Act 1986 15
10 Foreign Exchange and Management Act 1999 16
11 Information Technology Act 17
12 Companies Act 1956 18 & 19
Type of companies and promotion; Memorandum-Article-
Prospectus
13 Share capital & membership; Meetings 20 & 21
14 Management of company 22
15 The payment of Bonus Act 1965; The payment of Gratuity Act 23 & 24
1972
16 The Arbitration and Reconciliation Act, 1996 Bare Act
17 Mock Court Sessions - I
18 Mock Court Sessions - II
19 Mock Court Sessions - III
20 Mock Court Sessions - IV

Text Book
Business Law, by Tejpal Sheth, Pub: Pearson
The Arbitration and Reconciliation Act, 1996 (Bare Act)
Suggested Readings
1. Legal aspects of Business by P K Padhi, PHI Publication
2. Legal aspects of Business by Akhileswar Pathak, McGraw Hill
3. Legal aspects of Business by Ravinder Kumar, Cengage Learning
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Evaluation Scheme

a) Class participation and Mock Court Presentations: 20%

b) Written Case Assignment: 20%
c) Mid-Term Exam: 20%
d) Final Examination: 40%

Prior Reading and Discussion

Students are expected to complete the assigned reading prior to each class and to
contribute to class discussions. Further, a list of important cases will be circulated prior to
the class that the students will study the legal aspects of the case and come prepared for
active participation in class discussion.

Mock Court
Students are expected to participate in one of the Mock Court and work with an assigned
group. Mock court preparation will help students apply concepts learned in class and make
persuasive arguments.

Written Case Assignment

Students are required to search through Court Cases (Supreme Court Case Database
online) and identify a case on a particular topic and write a background paper for legal
arguments as well as theoretical understanding.

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