ICFAI BUSINESS SCHOOL, IFHE, HYDERABAD

MBA SEMESTER–I1
Course Handout (AY 2022 – 2023)

Course Legal Environment of Business Total Credits 3

Name of the Faculty Member Dr D S Prasad Room No F.103
Email Id dsprasad@ibsindia.org Mobile No 7093159860
Consultation Hours

Course Description
The course focuses on the detailed understanding of various laws pertaining to business and with their relevance in the changing global legal environment.
It relates these concepts to contracts; companies Act and the relevant regulations that affect the business. It also calls for an in depth study of various
business laws along with the relevant case studies. Most cases studied here are decided by courts and are landmark judgments. At the end of the course the
student will be able to communicate in legal terminology.

Course Objectives The course is designed to provide….

1) Basic knowledge of the legal system in which business entity’s functions.
2) An in-depth understanding of the structure and interpretation of laws which are relevant to the functioning of business entities.

3) A functional knowledge of the laws of the land which impact business decisions.

Learning Outcomes At the end of the programme the student shall be able to …………………..
1) Demonstrate an understanding of the Legal Environment of Business.

2) Outline the legal framework in which a business operates.

3) Apply basic legal knowledge to business transactions.

4) Explain the effects of government policy on the legal environment of business.

5) Communicate effectively using standard business and legal terminology.

Recommended Text Book Edition Author Publisher

Legal aspects of Business, 4th edition Ravinder Kumar Cenegage Learning India (P) Ltd.
Suggested Readings
Legal aspects of Business 6 th edition Akhileshwar Pathak Mc Graw Hill Education.
Elements of Mercantile Law 35 th edition N D Kapoor, Sultan Chand & Sons

Digital Tools: High courts and Supreme Court Websites

Software :MS Word
Databases: Swayam/NPTEL/YouTube Video Links

Detailed Course Curriculum

Articles Digital/ Swayam/
(A)/Cases (C)/ Software NPTEL/
Sessio Chapter
Topic Key Concepts Session Learning Outcomes Reports Tools YouTube Video
n No Reading
(R)/Technical Links
Notes (T)
 Importance of Legal
environment of
Business.  Appreciate the importance
 The nature, purpose of Legal environment of
and significance of Business.
law. Balfour vs.
Introduction to  Define offer, acceptance, Balfour.
the Legal  Offer, acceptance, consideration, agreement
Aspects of consideration, and a contract.
1 Chapater-1 Merritt Vs
Business, agreement and a  Understand the classification Merritt
Establishing contract. of contracts and their
contractual  Classification of differentiating features
relationships.
Text book cases
contracts and their  Understand the essential
differentiating features of a valid contract
features.
 Features of a valid
contract
2 Legal rules Distinguish between Chapater-2
for Offer,  Offer different types of offer, Carlill Vs.
Acceptance appreciate the essentials Carbolic Smoke
and  Acceptance (legal rules) of a valid Offer Ball Co.
Consideration and Acceptance.
 Communication of  Explain how an offer is
offer communicated, accepted Chinnaya vs
and revoked. Ramayya
 Acceptance  Understand the rules
 governing valid
 Revocation of offer and consideration. Lalman Shukla
acceptance  Appreciate the bearing of vs Gauri Dutt
lawful object on the
 Lawful object validity of contract. Text book cases
 Explain when the object or
 Consideration consideration is deemed to
be lawful/unlawful and the
 Essentials of Valid effect of partial illegality.
consideration  Describe the essential
elements of valid
 Legality of contract consideration and the
legality of contracts without
consideration.
 Understand the competency
 Parties to a contract. of parties to a contract.
 Position of a minor.  Appreciate the position of
 Agreements with a agreements with a minor. Mohoribibi vs.
Competency minor.  Describe the effect of Dharmodas
3 Chapter-3 Ghose;
of Parties  Contract with a person agreements made by
of unsound mind. persons of unsound
 Competency of parties mind/disqualified by law.
to a contract.

 What constitutes a free  What constitutes a free Chapter -4

consent? consent?
 Laws in consent.  Laws in consent.
Contractual validity. Contractual validity.
 Coercion  Undue influence
4-5  Undue influence misrepresentation. Fraud
Free consent misrepresentation. Fraud and mistake.
and mistake. free  Understand the
consent. significance of free consent
and how the flaws in
consent impair contract
validity.
 Appreciate how coercion,
undue influence,
misrepresentation, fraud
and mistake affect free
 consent.
 Void agreement and
 Void agreement and illegal
illegal agreements.
agreements.
Void  Essentials of a contingent
 Essentials of a
Agreements, contract.
6 contingent contract.
quasi-contracts   Enforceability of a contract.
Enforceability of a
and Contingent  Wagering contract and
contract.
Contracts quasi agreements.
 Wagering contract and
 Distinguish between void
quasi agreements.
agreements and void
 Distinguish between
contracts and illegal Chapter -5
void agreements and
agreements.
void contracts and
 Describe the essentials of a
illegal agreements.
contingent contract and
 Essentials of a contingent
how a contract can be
contract and how a
enforced.
contract can be
 Explain how contingent
enforced.
contracts differ from
 Explain how contingent
wagering agreements and
contracts differ from
quasi-agreements.
wagering agreements
and quasi-agreements.
 Performance and  Appreciate the
Performance discharge of a importance of
7 and Discharge contract. performance as the most
of Contract  Modes of discharge. obvious means of
 Mutual agreement. discharging a contract.
 Importance of  Highlight other modes of
performance as the discharge like mutual
agreement, operation of law
Chapter -6
most obvious means
of discharging a etc.
contract.
 Other modes of
discharge like mutual
agreement, operation
of law etc.
 Elucidate the meaning of Chapter -7
Remedies for  Meaning of breach of breach of contract.
8 Breach of contract.  Appreciate the various
Contract  Remedies to the remedies available to the
 breach of contract. aggrieved party in case of
breach.
 Special types of  Explain and distinguish
contracts. between the two special
 Contract of indemnity types of contracts of
Contracts of and guarantee. indemnity and guarantee.
9 Indemnity,  Rights of an indemnity  Appreciate the rights of an
Guarantee, holder. indemnity holder and the
Lease, Hire  Extent of the sureties extent of surety’s liability.
purchase. liability.  Understand the procedure
 Revocation of a for revocation of continuing Chapter -8
continuing guarantee. guarantee and the rights and
 Discharge of a surety. discharge of surety.
 Lease and hire purchase  Explain the meaning of
contracts. lease and hire-purchase
 Distinguish between the contracts and appreciate
two special types of their differences.
contracts of indemnity
and guarantee.
10 NCP 1
Contracts of  Rights and duties of a  Describe the rights and duties
Bailment and Balor and bailee of bailor, bailee, pledger and
Pledge; Lien,  Pledge. pledge.
11 Hypothecation,  Lean.  Explain and appreciate the
Mortgage, Gift, Chapter -8
 Hypothecation meaning of Lien,
Exchange  Mortgage and Gift. hypothecation, mortgage and
gift and appreciate their
differences.
 Agency.  Understand the test of
 Rights and duties of determining the existence of
Contract of an agent. an agency.
12 Agency  Agent’s liability Appreciate the rights and
towards the principal. duties of an agent, his liability Chapter -8
 Modes of creation of to the principal and modes of
agency. creating and terminating an
 Termination of agency.
agency.
 Contract of sale and  Understand the nature of Chapter -9 NESTLÉ
agreement to sell. contract of sale and compare INDIA
  Conditions and the sale and agreement to
warranties. sell. LIMITED:
Sale of goods  Transfer of property in  Appreciate the meaning and MAGGI
Act: goods. differences between NOODLES AT
13-14 Agreement to  Performance of a conditions and warranties
sell and sale,
WAR WITH
contract of sale.  Describe the transfer of
Conditions THE
 Rights of an unpaid property in goods and
and performance of a contract of REGULATOR
seller.
warranties sale. S Ivy
 Outline the rights of an publishing
unpaid seller against the
goods as well as against the W16141
buyer personally.
Partnership  Nature and formation  Understand the provisions
Act: of partnerships. relating to the nature and
Formation,  Rights and duties and formation of partnership, the
15 Registration, liabilities of partners. rights, duties and liabilities Chapter -10
Mutual rights,  Dissolution of of partners. 11&12
duties and partnership firm  Appreciate the procedure for
liabilities of  .Dissolution of dissolution of partnerships.
Partners. partnerships.
 Overview of. The  Get an overview on corporate https://
Formation of corporate framework legal framework and nptel.ac.in/
16 a Company, of a company. elaborate the four major courses/
and  Formation of a stages involved in the 109/105/1091050
Prospectus. company. formation of a company. 98/
 Issuance a prospectus.  Describe the procedure and
 Get an overview on provisions for issuance of
Salomon v A
corporate legal prospectus.
Salomon & Co
framework Chapter -17 Ltd [1896]
 Four major stages UKHL
involved in the
formation of a
company.
 Describe the
procedure and
provisions for issuance
of prospectus.
Memorandum  Memorandum and  Understand the rules to be Chapter -18 Royal British
(MOA) and articles of association followed in preparing MOA Bank v Turquand
17 Articles and their provisions. and AOA.
(AOA), Share  Capital clause of the  Highlight the provisions
capital and company. relating to rising of capital
debentures  Rules to be followed by a company.
in preparing MOA
and AOA.
 Provisions relating to
rising of capital by a
company.
Management  Management of a  Describe company
Meetings and company. management, role of
18 Insolvency and  Role of managing managing director and other
bankruptcy director. directors, their power and
 Role of other directors liabilities, qualifications and Foss v
of the company. disqualifications, appointment, Harbottle
 Their powers and remuneration and removal (1843)
from the company. Chapter -19 You can build or
liabilities.
 Qualification, dismantle the
disqualification, Business.
appointment and
removal of the
directors of the
company.
 Limited liability  Understand the basic
Limited partnership. It's provisions of LLP formation
19 Liability formation. and how an LLP differs
Partnership  Difference with other. from other forms of business
(LLP) Business enterprises. enterprise.
 Rationale behind the  Appreciate the rationale Chapter -20
introduction of behind the introduction of
limited liability LLP in India.
partnership in India.
 Understand the basic
provisions of LLP
20 The Consumer  Salient features of  Understand and appreciate Chapter -21
Protection Consumer Protection the salient features of the
Act,1986 Act. Act.
 Aims and objectives.  Explain its aims and
 Rights of the objectives, major concepts
consumers. and rights of consumers as
 Protection Act. provided in the Act.
21 NCP 2
 Overview of.  Overview on NI Act,1881
Negotiable Negotiable  Understand and appreciate
22 Instruments(NI) instruments act. the kinds of negotiable
Act,1881  Kinds of negotiable instruments and major
instruments. concepts relating to
 Meaning of. negotiation, assignment and
Chapter -13
Negotiation presentment of negotiable
assignment instruments.
presentment of
negotiable
intruments.

Dishonor and  Legal rules. Relating  Describe the legal rules

23 discharge of to the dishonour and relating to the dishonor and
negotiable discharge of discharge of negotiable Chapter -16
instruments negotiable instruments instruments.

.
The  Aims and objectives  Get an overview on the
24 Information of Information aims, and objectives and
Technology technology act. scope of the Act.
Act,2000  Major concepts. And  Comprehend the major Chapter -24
important provisions concepts and important
of the act. provisions of the Act.

 Aims and objectives  Become conversant with the  https://

The Right to of. Right to scope, major concepts and nptel.ac.in/
25 Information Information Act. important provisions of the courses/
Act,2005  Major concepts and Act. 129/106/1291060
important provisions.  Appreciate the role of 01/
 Information Information Commissions Chapter -25
commissions. and the remedies available to
 Remedies available the aggrieved party and the
to the aggrieved party penalty for non-compliance.
and the penalty for
non compliance.
Introduction to  Major concepts of  Appreciate the major Lecture
26-27 Income Tax Income Tax Act. concepts and important Notes
 Act,1961  Different heads of provisions of Income-tax Act
income.
 Calculation of total
income.
 Calculate tax payable.
 Major events that
Led to introduction
of GST
 What is GST?
 Objective of GST  Understand the need of
Chapter 33
 Benefits of GST(for introducing the new tax
28 Introduction to trade and industry, reform in INDIA and
(Appendix
GST for central govt. and appreciate the basic
B)
state govt. and for concepts of GST.
consumers)  Explain the benefits GST.
 Taxes subsumed
under GST
 GST Council

 Implementation
mechanism of GST in
India
 How does GST
Work?
 Dual GST Model
 Cross utilization of
credits  Get an overview of the
 How imports are working Model of GST and Chapter -33
29 Working of
taxed under GST? appreciate the concept of (Appendix
Dual GST
 Registration process cross utilization of credits B)
Model
under GST and registration and return
 Returns Filing filling process.
Procedure under GST
 Payment procedures
for GST
 How will GST help
India and Common
Man?
 Introduction to  Major concepts of.  Explain the major concepts
Foreign Foreign Exchange and important provisions of
30 Exchange Management Act Foreign Exchange Chapter-30
Management Management Act, 1991.
Act, 1999.
Introduction to  Appreciate the major  Appreciate the major
31 Insurance Law concepts and concepts and important
important provisions provisions Insurance Law Lecture
Insurance Law and the essential features of Notes
 Essential features of Contract of insurance.
Contract of insurance.
The  Provisions of the  Understand the important
32 Competition Competition Act, provisions of the
Act,2002 2002. Competition Act, 2002.
 Aim and objectives of  Explain the aim and Chapter-22
Competition objectives of Competition
Commission. Commission.
 Intellectual  Get an overview on the Hollywood in  https://
Intellectual property(IP) subject matter of Intellectual India: nptel.ac.in/
33 Property  Rationale behind IP property(IP) Protecting courses/
Rights(IPRs) and its international  Appreciate the rationale Intellectual 110/105/1101051
dimensions. behind IP and its 39/
Property (A)
 Discuss the various international dimensions. Chapter 32
categories of IP  Discuss the various HBS
 Rights and the categories of IP rights and PRODUCT
emerging issues in the emerging issues in IPR.
IPR.
NUMBER
9-711-017
Project Work
Marks: 20 Websites of The learning’s
Digital Tools: High courts and
Software: MS Word Supreme court Understand the various types of
Databases : Websites of High courts and Supreme court Cases and the type of decisions
To understand point of fact and point of law involved in decided cases that are being made in the courts
and interpret them of law either in the High Court
A group of two students will be given two decided cases in two different or in the civil court.
acts. They should go through the website of the concerned High Court
or Supreme court to study the case and interpret.
 They should be able to answer the following questions

1. Background of the case. (4 marks)

To name the defendant and the plaintiff. Are the appellant and the
respondent. Under what circumstances the case is filed .Name of the
court in which the suit is filed. Whether it is in appeal or in original
jurisdiction. Under which section or sections of the act is the suit filed

2.Relevant points in the argument of the plaintiff or appellant(4 marks)

3. Relevant points in the argument of the defendant or the respondent. (4

marks)

4 Decision made by the Court of Law. Note on the point of fact or law
as interpreted by the court. (4 marks)

5 Punishment or penalty imposed. (4 marks)

The project is for 20 marks and 4 marks will be allotted to each of the
answers.
The report should be a comprehensive one. Plagiarism is strictly
prohibited. The group has to make a presentation. Marks for the project
will be awarded based on a) the quality of the content in the report b)
class presentation

Component Test-1 Test-2 CP Project Term End Total

Exam
Weightage (%) 15 15 10 20 40 100
Time of Evaluation ( Session) 10 22 1- 30 30 - -
Uploading of Marks ( Session) 13 21 33 33 - -
Expectations from Students
a. Students must report to the respective sessions well before the announced time. Latecomers will not be permitted to join the class after the scheduled
time. If late, the attendance for that session will be marked as absent.
b. Read the Case Study / material well prior to the class discussion. He/she is also expected to read the chapter indicated in the course plan as the faculty
directs.
c. In the class discussion student is expected to participate actively and contribute to individual and group learning. Evaluation is based on active
participation.
d. Evaluation is a continuous process at IBS. Every student needs to be aware of the timelines given in the section below. Absence from these evaluations
will mean non awarding of marks in that particular component
e. Each faculty has been given a scheduled consultation hour. Utilize this time to meet the faculty and clarify doubts if any, seek explanations and get
mentored if needed.