Business laws assignment

Ans 1] Section31 of the contract act defines the

contingent contact as the follows : a contingent
contract is a contract to do or not to do something if
some event , collateral to such event does or does not
happen.
Essentials of a contingent contract
1]There must be a valid contract
2] The event must be uncertain
3]The event must be collateral that is incidental
contract
4] The contingent event must not be at the mere will
and pleasure of the promiser
Ans 2] Undue influence
A contract is said to be induced by undue influence
where the relations subsisting between the parties is
such that one of the parties in the parties is in such a
position to dominate the will of others and he uses
that position to obtain an unfair advantage over others
coercion Under influence
It involves the physical It involves moral or mental
force or threat . the pressure
 aggrieved party is
compelled to make the
contract against its will
It involves committing or No such illegal act is
threating to commit and committed or a threat is
act forbidden by Indian given
fenal code or detaining or
threatening to detain the
property unlawfully
It is not necessary that Some sort of relationship
there must be some sort between the parties is
of relationship between absolutely necessary
the parties
Coercion need not Undue influence is always
proceed from the exercised between parties
promiser nor need it be to the contract
directed against the
promiser. It can be used
even by a stranger to
contract

Ans3] remedies available to a seller for breach of

contract by the buyer

In case of breach of the contract of sale of goods where the seller is the
aggrieved party he has the following remedies:

Suit for price:

1) Where under a contract of sale, the property in the goods has passed to the
buyer and the buyer wrongfully neglects or refuses to pay for the goods
according to the terms of the contract, the seller may sue him for the price of
the goods.
2) Where under a contract of sale, the price is payable on a certain day
irrespective of delivery and the buyer wrongfully neglects or refuses to pay
such price the seller may sue him for the price although the property in the
goods has not passed and the goods have not been appropriated to the
contract. In short, section 55 gives right to the seller to sue the buyer for the
price. Now a seller can institute suit for the price when:

(i) the property in the goods has passed to the buyer, for example, goods have
been sold and delivered.
(ii) Where the goods have not been delivered and the property in the goods
has not passed to the buyer.

The seller can sue for the price under clause (2), if the price is payable on a
certain day and the buyer wrongfully neglects or refuses to pay such price. He
may also exercise right of lien and stoppage in transit as discussed.

Suit for damages:

For non-acceptance: Where the buyer wrongfully neglects or refuses to accept

and pay for the goods, the seller may sue him for damages for non-
acceptance. The measure of damages is according to the provisions of
section 73 of The Indian Contract Act, depending upon the available market
for the goods. In action for damages fro breach of contract to buy goods,
plaintiff can only recover difference between contract price and market price
and not between contract price and actual price.

For repudiation of the contract – Anticipatory breach: Where the buyer

repudiates the contract before the date of delivery, the seller may either treat
the contract as subsisting and wait till the date of delivery, or he may treat the
contract as rescinded and sue for damages for the breach. This remedy is in
anticipation of the breach of contract popularly known as anticipatory breach
of contract.

The words repudiates the contract occurring in section 60, demonstrate that
the repudiation must be of the contract in its entirety and that it is only in that
event, that there is anticipatory breach which can create the right to rescind
the contract.

Ans ]5An electronic signature or e-signature, indicates either that a person

who demands to have created a message is the one who created it.
A signature can be defined as a schematic script related with a person. A
signature on a document is a sign that the person accepts the purposes
recorded in the document. In many engineering companies digital seals are
also required for another layer of authentication and security. Digital seals and
signatures are same as handwritten signatures and stamped seals.
Ans 10] The position of minor under the Indian Contract Act, 1872 is to be
concluded as that a minor cannot enter into a contract and the same would be
void ab initio. The minor cannot on attaining majority rely on ratification of the
contract made by him during his minority. The reason is that ratification relates
back to the past when the person was still a minor thus, a contract that was
void cannot be made legitimate subsequently. If it is necessary, a new contract
can be made after attainment of the age of majority with a fresh consideration.
Further, a minor’s agreement cannot be called for specific performance as it
would result in performing a void agreement. However, a minor will be held
liable only for the claim of necessaries.
Ans]8 According to the LLP Act, 2008, the following elements are essential for
the incorporation of an LLP in india:
 Complete and submit the Incorporation document in the prescribed
form, with the Registrar electronically.
 Have at least two partners, either individual or body corporate
 Have a registered office in India for sending and receiving
communication
 Appoint at least two individuals as designated partners. They will be
responsible for doing all acts, matters, and things as required to be done
by the LLP. Also, the designated partners should be resident in India.
 Each designated partner should hold a Designated Partner Identification
Number (DPIN) allotted by the Ministry of Corporate Affairs (MCA).
 Execute the agreement between the partners or between the LLP and its
partners. Further, if an agreement is not present, the provisions  in the
First schedule of the LLP Act, 2008 are applied.
 Name of the LLP. It is important to note that the name should be
distinct. The LLP cannot have a name which another LLP or Partnership
firm or Company is currently using.
Syna kaul
Bcom[hons]
20212145