NAME – HIMANSHU

ROLL NO. – 2214507485

PROGRAM – BACHELOR OF BUSINESS ADMINISTRATION (BBA)

SEMESTER – 3RD SEMESTER

COURSE NAME/ CODE – LEGAL AND REGULATORY FRAMEWORK (DBB2101)

 INTERNAL ASSIGNMENT

SET–1

QUES 1. Who is agent? Describe the rights of an agent against his principal.

ANSWER 1.) A person or organization that is permitted to handle legal or business affairs
on behalf of another person or organization known as the principal is known as an agent. As
the principle's representative, the agent may carry out tasks, make choices, and sign
documents as long as they stay within the bounds of their authority.

An agent's legal rights against his principal include a range of protections meant to safeguard
the agent's interests and welfare throughout their working relationship. The framework
provided by these rights enables the agent and the principle to engage in just and equitable
practices. Below is a detailed explanation of these rights:

a.) Right of Retainer: An agent is entitled to retain all money that they own, including
compensation, advances, and costs incurred while carrying out authorized activities. With
the use of this entitlement, the agent is able to take direct advantage of funds received on
behalf of the principal and receive their just compensation.

b.) Right to Compensation - Upon successfully completing the assigned work, the agent is
entitled to the predetermined compensation. This right is contingent on the completion of the
assignment in its entirety, and the agent will not be compensated for any work completed in
part.

c.) Right of Lien - The agent may seize products, documents, or other assets that are
movable or immovable until the principal pays the outstanding balance for commission,
expenses, or other contractual duties. This is known as the right of lien.

d.) Right to Compensation for Lawful Acts: The principle shall reimburse the agent for
damages resulting from any lawful actions carried out in the course of duly authorized
assignments. This clause shields the agent from any legal repercussions resulting from
actions taken while carrying out their duties.

e.) Right to Indemnification for Good Faith Acts: When an agent performs authorized duties
in good faith, the principal bears the responsibility of compensating the agent for any
resulting damages. This covers circumstances in which the agent's actions might violate third
parties' rights, excluding instances of unlawful behavior.

f.) Right to Compensation for Injury Caused by the Principal's Negligence: The principle
must pay the agent's medical expenses if the agent sustains injuries as a result of the
principal's carelessness. This highlights the principal's duty to give the agent a secure and
comfortable working environment.
These rights are essentially part of an all-encompassing framework that aims to strike a
balance between the interests of the principal and the agent. They are essential to creating a
just and fruitful professional partnership because they make it clear what each party can do
in the event that there are conflicts or unfavorable results from their work together.

QUES 2. “All contracts are agreements, but all agreements are not contracts.” Discuss the
statement explaining the essential elements of a valid contract.

ANSWER 2.) The phrase "All contracts are agreements, but not all agreements are
contracts" summarizes a key principle of contract law, emphasizing that not every
agreement is legally binding.

To comprehend this, one must delve into the critical factors that transform a simple
agreement into a legally binding contract.

A.) Appropriate Offer and Acceptance:

i.) Acceptance and Promise - A contract begins with one party making an offer.

and accepted by another party, resulting in a reciprocal exchange of promises.

ii.) Offer and Acceptance Communication - Effective communication of the offer and
acceptance

Mutual understanding and agreement require an offer and acceptance.

iii.) Offer or Proposal - The offer must be specific and capable of being accepted.

Acceptance converts a proposal into a contract.

B.) Intention to Form a Legal Relationship - In order for a contract to be valid, both parties
must express a genuine desire to create legal obligations. Social or domestic agreements
frequently lack this necessary goal.

C.) Free Consent - Permission must be freely given by both parties, without coercion, undue
influence, fraud, deception, or error. Consent obtained under these circumstances is not
considered free.

D.) Capacity to Contract - The parties must be legally capable of entering into a contract.
Minors, the mentally incompetent, and those under the influence of drugs or alcohol may
not have the capacity.

E.) Consideration for Promise - Consideration is something valuable that is exchanged

between the parties, indicating a transaction. Both parties must provide and receive
consideration for the contract to be enforceable.
F.) Legal Object and Consideration - The object and consideration of the agreement must be
legal. Agreements with illegal intentions or involving illicit consideration are null and void.

G.) Agreement Not Declared Void - The agreement must not fall into one of the categories
outlined in the Indian Contract Act that declare agreements void, such as those that violate
public policy.

H.) Meaning Clarity - The contract's terms must be clear and unambiguous, with no
ambiguity that could lead to misinterpretation or conflict.

I.) Possibility of Performance - The provisions of the contract should allow for performance.
Contracts based on impossible tasks are frequently unenforceable.

J.) Legal Formalities - Certain contracts require legal formalities, such as writing,
registration, or specific forms of production, as prescribed by law.

Finally, these key features form the foundation of a legitimate contract, distinguishing it
from a simple agreement. The fulfillment of these conditions ensures that the parties are
bound by legally enforceable obligations, emphasizing the importance of the fact that, while
all contracts are agreements, not all agreements have the features required by law to be
contracts.

QUES 3. Is Memorandum of Association a charter of a company? What are the contents of

the Memorandum of Association?
ANSWER 3.) The Memorandum of Association (MOA) is an important document in the
formation and regulation of a business. It is not a chapter in and of itself, but rather a
separate document that serves as the company’s charter, defining the fundamental conditions
under which the company is formed.

The Memorandum of Association (MOA) specifies the scope of the company’s operations
and lays the framework for its engagement with the outside world. Let’s look at what’s in the
Memorandum of Association (MOA):

a.) Name Clause – The name clause defines the company’s formal name. It is critical for
the firm to select a distinct and unique name that meets with legal criteria. The name
establishes the identity under which the company operates.

b.) Situation Clause – This section specifies the company’s registered office is where
formal communications are sent, and it serves as the company’s legal domicile. Any changes
to the registered address must be reported to the regulatory authorities.

c.) Object Clause – The object clause explains the primary and secondary goals for why
the organisation was created. It outlines the scope of the company’s activities and restricts
them to those listed in the memorandum. Any behaviour that goes beyond the scope of the
object clause is ultra vires and therefore illegal.

d.) Liability Clause – The liability clause describes the type of liability assumed by the
members’ liability in the event of corporations limited by shares is limited to the unpaid
amount on their shares. Members of firms limited by guarantee agree to contribute a set sum
if the company goes bankrupt.

e.) Capital Clause – The capital clause specifies the authorised share capital of the
company. It establishes the maximum amount of share capital that the company may issue.
This paragraph also specifies how the capital will be divided into shares and their nominal
value.
Association and Subscription Clause – The association clause indicates people’ desire to be
associated with one another to form a company. The subscription clause includes the initial
subscribers’ signatures, signifying their intent subscribers’ signatures, signifying their intent
to purchase shares in the company.
The Memorandum of Association (MOA) serves as a company’s constitution, and any
changes to it must go through a rigorous legal process. It is filed to regulatory authorities as
part of the incorporation procedure and is a public document that anybody can access. The
MOA is essential for investors, creditors, and other stakeholders because it provides insight
into the company’s purpose, structure, and constraints, providing transparency and legal
compliance in the company’s operations.

ASSIGNMENT SET - 2

QUES.4 What are the powers and functions of the Competition Commission?
ANSWER 4.) The Competition Commission of India (CCI) has a number of powers and
functions aimed at promoting fair competition, combating anti-competitive behavior, and
protecting consumers' and market participants' interests. The Competition Act, which took
effect on October 14, 2003, resulted in the establishment of the Competition Commission of
India (CCI).

The CCI's powers and functions are summarized below:

a.) Adjudication and Control - In matters of competition, the CCI acts as both a quasi-judicial
adjudicator and a regulatory authority. It has the authority to address and resolve anti-
competitive issues in the market, as well as to ensure a level playing field.

b.) Adverse Practices Elimination - One of the CCI's primary functions is to eliminate anti-
competitive behavior. This includes investigating agreements and activities that may obstruct
fair competition and putting corrective measures in place to address such practices.

c.) Competition Promotion and Sustainment - It is the CCI's responsibility to encourage and
sustain market competition. This entails creating policies and practices that promote a
competitive environment while also encouraging innovation, efficiency, and consumer
choice.

d.) Consumer Protection - The CCI's primary mission is to protect the interests of consumers.

of consumers. It ensures that consumers are protected by encouraging healthy competition,

eliminating exploitation, and addressing issues that may harm consumers.

e.) Trade Freedom - The CCI seeks to protect market participants' freedom of commerce.
This entails creating an environment in which businesses can compete fairly and openly
without being subjected to unfair constraints or discriminatory actions.

f.) Policy Development - Unlike its predecessor, the Monopolies and Restrictive Trade
Practices Commission (MRTP), the CCI actively participates in economic policy
development in the country. It makes policy recommendations to the government on
competition issues and works to strengthen competition advocacy.

g.) Appointment Procedure - The CCI is appointed by a collegium or search committee rather
than directly by the government. This gives it some operational independence, distinguishing
it from the MRTP Commission.

h.) Advisory Role - The CCI advises the government on issues of competition policy. Giving
insights into regulatory frameworks and practices that can improve market competition is
part of the consulting function.

i.) Public Awareness and Education - In addition to its regulatory responsibilities, the CCI
actively promotes public awareness of competition issues. It provides all stakeholders with
training and information, resulting in a better understanding of competitive concepts.

Finally, the Indian Competition Commission acts as an adjudicator, regulator, and policy
advisor, with powers and functions aimed at promoting fair competition, protecting
consumers, and contributing to the formulation of effective economic policies in the country.

QUES.5 Write a detailed note on Copyright and major classes of it work

Answer 5.) Authors have control over the use and distribution of their creative works thanks
to copyright, which is the right to copy. It is predicated on the idea that those who produce
original content ought to have the power to determine how their labor and skills are
recognized. Protecting authors—whether they be writers, artists, or composers of music—on
their creative endeavors, often referred to as "works," is the fundamental purpose of
copyright.

The essence of copyright is an exclusive right granted to the author of a unique work of
literary expression that is permanently fixed in a tangible form of expression. This license
permits the following uses of the work: duplication, performance, exhibition, and creation of
derivative works from the original. It includes a broad range of artistic and creative mediums,
such as sculpture, music, theater, dance, and literature. Copyright protection is in place from
the moment the author creates the work, but in order to properly enforce these rights,
registration with the government is advised.

Principal Groups of Copyrighted Works:

a.) Literary Work: Computer programming, books, and writings are all part of this course. It
ensures author protection in fields like software development and literature by covering a
broad range of written terms.

b.) Musical Works and Lyrics: Exclusive rights are granted to composers and lyricists by
copyright, which safeguards musical works and the lyrics that go with them. The original
arrangement and interpretation of musical ideas are also covered by this protection.

c.) Dramatic Work: Plays and scripts are examples of dramatic works that are covered by
copyright. This guarantees that screenwriters and playwrights maintain control over the
adaptation and performance of their theatrical works.

d.) Pictorial, Graphic, and Sculptural Works: This group includes various visual arts as well
as paintings and sculptures. The expression of the visual arts is protected by copyright. By
protecting artistic expression, copyright gives creators the authority to manage the
duplication and sharing of their creations.

e.) Sound Recording - Sound recording is the process of fixing sounds into a material form.
The recording industry is covered in this course, with special attention to maintaining unique
recordings and sound design.

f.) Cinematograph – Works on film and television that document events and programs fall
under the copyright category. The entire audiovisual presentation—texts, images, and music
—is covered by this protection.

India's Copyright Act of 1957 governs copyright protections in the country. In order to
strengthen their legal rights to sue uninvited users for damages and infringement
compensation, creators are urged to register their works with the government.

Finally, because copyright gives creators the exclusive right to their works of art, it is a
valuable tool for them. For the benefit of both artists and users, it is essential to comprehend
the main categories of copyrightable works since it encourages the appropriate and legal use
and dissemination of creative content in a variety of artistic fields.
QUES.6 The Competition Act, 2002 is an improvement on the MRTP Act, 1969. Critically
analyse and differentiate among them.
ANSWER 6.) The Monopolies and Restrictive Trade Practices (MRTP) Act of 1969 was
significantly modified by the Competition Act of 2002. In order to promote fair competition
in the Indian market and adapt to the changing economic landscape, the Competition Act was
passed.

Several significant advancements and modifications are evident when comparing and
contrasting the two acts critically:

1.) Goals and Extent:

 The MRTP Act of 1969

Preventing monopolistic and restrictive trade practices was the primary focus.
Did not have a thorough plan in place to address different types of anti-competitive
behavior.

 Act on Competition (2002)

Boundary in nature, covering anti-competitive agreements, abuse of dominance, and
combination regulation (mergers and acquisitions) in addition to monopolies.
Takes into account worldwide optimal methodologies, conforming to worldwide
competitive benchmarks.

2.) The Meaning of Dominance and Monopoly:

 The MRTP Act of 1969

narrowly defined monopolistic practices were the main focus of attention.
emphasized as a crucial criterion having control over the production or distribution of
goods.

 The Competition Act of 2002 –

defines "dominance" more broadly, taking into account elements other than just market
share, like economic power and consumer behavior.
Evaluates the necessity of a competitive market structure, surpassing conventional
monopoly worries.

3. Handling of Trade Practices Restrictions:

 The MRTP Act of 1969

A negative list approach was used to try and control restrictive trade practices by listing
prohibited practices.
Absent a broad and adaptable structure to tackle an extensive array of anti-competitive
agreements.

 The Competition Act of 2002 –

Establishes a broad ban on anti-competitive agreements, enabling a more flexible and
dynamic strategy.
Provides a more comprehensive understanding of restrictive practices by incorporating
the idea of noticeable negative effects on competition.

4.) Mechanism of Enforcement:

 The MRTP Act of 1969

Enforcement was handled by the MRTP Commission, which had few resources and
struggled to handle cases quickly.

 The Competition Act of 2002 –

Gives the Competition Commission of India (CCI) greater authority and independence
as a regulatory body.
Offers a strong enforcement system that enables the CCI to effectively look into and
punish anti-competitive behavior.

5.) Regulation of Merger:

 The MRTP Act of 1969

Did not specifically address how mergers and acquisitions are regulated.

 The Competition Act of 2002 –

Contains clauses governing the regulation of combinations, permitting

mergers under the CCI's scrutiny and approval or disapproval, depending on how they
affect competition.

6.) Alignment Internationally:

 The MRTP Act of 1969

Did not conform to international competition norms.

 The Competition Act of 2002 –

Demonstrates a dedication to worldwide optimal methodologies, cultivating conformity

with international standards for competition.

In conclusion, by embracing a thorough approach to competition regulation, the

Competition Act of 2002 marks a significant advancement over the MRTP Act of 1969.
Fair competition and economic efficiency are promoted in India thanks to the newer
act, which addresses a wider range of anti-competitive practices, introduces a more
robust enforcement mechanism, and complies with international standards.
*** THANK YOU ***