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Define a contract and explain when the consent is said to be not free.

• The Indian Contract Act of 1872 defines the term “Contract” under its section 2 (h) as “An agreement enforceable by law”. In other words, we
can say that a contract is an agreement and enforceable by the law of the land.
• So, a contract is a legal document that bestows upon the party some special rights (defined by the contract itself) and obligations that are
introduced, defined, and agreed upon by all the parties of the contract.
• Free Consent is mandatory to agree on a valid contract. Such consent must be free and voluntary in nature, without any pressure. If the consent
to the agreement was obtained or induced by coercion, undue influence, fraud, misrepresentation or mistake, then it can make the agreement
void.
• Coercion
• Coercion means forcing a person to enter into a contract.
• Section 15 of the Indian Contract Act 1872 states that coercion is committing or threatening to commit any act is forbidden by the Indian Penal Code (45 of
1860) or the unlawful detaining or threatening to detain any property, to the prejudice of any person, whatever, to cause any person to agree.
• Fraud
• Fraud means cheating by one party; when one of the parties intentionally makes a false statement, it is said to be fraudulent.
• According to Section 17 of the Indian Contract Act, the other party has been given the right to claim for the deceived amounts, revoke the entire contract, and
make modifications where he got damaged.
• Under Influence
• When the relationship between the two parties is such that one party is in a position to dominate the other party and uses such influence to gain an unfair
advantage from the other party, it will be undue influence.
• Section 16 of the Indian Contract Act 1872 contains the definition of undue influence.
• Misrepresentation
• Misrepresentation occurs when a party makes a representation that is wrong, inaccurate, incorrect, etc. The difference here is that the misrepresentation
could be innocent, i.e., not intentional.
• According to Section 18 of the Indian Contract Act, misrepresentation is nothing but showing false information at the beginning of the contract itself.
• Mistake
Examine the essentials of a valid contract.
• Two Parties • Contractual Capacity
• To constitute a contract, there must be at least two parties, i.e. one party • The parties to the agreement must be capable of entering into a valid
making an offer (offeror/proposer) and the other party accepting the offer contract.
(offeree/proposee).
• According to the Act, every person is competent to contract if they
• The terms of the offer must be definite. Offer means when a person reveals to
• Are of the age of majority;
another his willingness to do or decline to from doing something. Acceptance
• Are of sound mind; and
means when the person to whom the acceptance is made signifies his assent.
• Are not disqualified from contracting by any law.
• Agreement
• Consideration
• A contract is initially an agreement when the person to whom the offer has
been given signifies his acceptance. • An agreement by an incompetent person is not valid. A valid contract must
• There arises an agreement which is the foundation of a contract. be supported by consideration.
• Consideration means “something in return”. It can be cash, kind or an act.
• Consent
It can be past, present or future. Consideration must be real and lawful.
• The parties must agree to the same thing in the same sense and
simultaneously. • Certainty
• An agreement without consent is not legally binding. • Terms of the agreement must be certain and not vague.
• There must be free and genuine consent of the parties to the contract, i.e. not • Possibility to Perform
to be obtained by misrepresentation, fraud, under the influence or mistake.
• The promises made under a valid contract must be executable.
• If the consent is not free, the contract becomes revocable.
• An agreement to do some impossible act is cancelled from the beginning
• Intention to create a legal relationship and never converted into a contract.
• There must be an intention by both parties to create a legal relationship and • Legal formalities
to bind themselves as a result of such an agreement legally. Thus,
agreements of social or household nature are not contracts because the • Although the Indian Contract Act does not provide any formality to enter a
parties do not intend to create a legal relationship. contract, a contract may be expressed (oral or written) or implied (by
conduct).
• Ex – where two parties agree to walk together would not amount to a legal
contract. • However, where the law requires, it must comply with all legal formalities
such as in writing, registration, and attestation.
Define consideration and explain the exceptions to the law of consideration that
an agreement without consideration is void.

• Consideration in contract law is simply the exchange of one thing of value for
another.
• Without consideration, a contract cannot be enforced or is otherwise voidable.
• A contract without consideration is void because it is not legally enforceable.
• An agreement made without consideration is void unless –
• it is expressed in writing and registered under the law for the time being in
force for the registration of documents and is made on account of natural love
and affection between parties standing in a near relation to each other
• it is a promise to compensate, wholly or in part, a person who has already
voluntarily done something for the promisor or something which the promisor
was legally compellable to do
• it is a promise, made in writing and signed by the person to be charged in
addition to that, or by his agent generally or specially authorised on that
behalf, to pay wholly or in part a debt of which the creditor might have
enforced payment but for the law for the limitation of suits.
Define sale and explain the difference between the agreement to sale and hire purchase agreement with the help of the
court’s decision in Helby vs Matthews.

• Sale is an agreement by which one of the contracting parties, called the seller, gives a thing and passes the title to it, in exchange
for a certain price in current money, to the other party, which is called the buyer or purchaser, who, on his part, agrees to pay such
price.
• Hire purchase in commercial law is an agreement where the owner can permit a person, or the hirer, to hire goods from them for a
certain period.
• The difference between a sale and hire purchase, Helby vs Matthews case can explain.
• In the case of Helby v Matthews (1985), the owner of a piano gave possession to a hirer under the agreement in writing. According
to this agreement, the piano would become his property if the hirer paid 36 monthly instalments. The hirer, however, could return
the piano at any time during the hire period. The hirer received the piano and paid a few months of instalments. Then he pledged
the piano with a pawnbroker.
• In Helby v Matthews (1985), the issue arose as to whether the hirer had bought or agreed to buy the piano or he had only agreed
to hire it.
• The House of Lords held that the hirer had not agreed to buy the piano at the outset. Although, he had the option to buy the piano
by paying the full instalments or return it. Therefore, the hirer had not bought or agreed to buy the goods. There was only a ‘hire-
purchase’ contract between the hirer and the piano owner.
• Thus, in these circumstances, the House of Lords concluded that the piano owner had been entitled to recover it from the
pawnbroker.
Explain the difference between conditions and warranties and examine the various implied conditions
• A stipulation in a contract of sale concerning goods which are the subject thereof may be a condition or a warranty – Sec. 12, The Sale of Goods Act, 1930. A
stipulation is a prerequisite, provision, or qualification attached to a contract.
• A stipulation may be a condition or warranty depending upon its importance in a contract.
• A stipulation essential to a contract’s main purpose is known as a condition.
• A stipulation which is collateral to the main purpose of the contract is a warranty.
• Implied conditions are implied by the law without any agreement to the contrary.
• Implied condition as to title (Sec. 14 A)
• In the case of a sale, it is implied that the seller has the right to sell the goods as he is the rightful owner/ authorised agent.
• Implied condition in a sale by description (Sec 15)
• Where there is a contract of sale of goods by description, there is an implied condition that the goods shall correspond with the description.
• Example: a sale of ‘seedless pears’ signifies that the fruit will have no seeds. If it turns out to be a fruit with seeds, the buyer reserves the right to reject the contract.
• Implied condition in a sale by sample (Sec. 17)
• Where a sample of the ordered product is provided to the buyer, and the parties treat the sample as of standard quality for sale, there is a condition that the goods will
conform to the sample.
• Implied condition in a sale by sample as well as by description (Sec. 15)
• When the sale is by sample and description, it is not sufficient that the bulk of the goods correspond with the sample only and not with the description. Thus, the bulk of
goods should correspond with both the sample and the description.
• Implied condition as to fitness or quality (Sec. 16)
• Usually, there is no implied condition that the goods supplied by the seller should be fit for the particular purpose of the buyer. The rule ‘Caveat emptor’ applies instead.
• This means that while purchasing the goods, the buyer must check whether the goods he buys fit his purpose.
• Implied Condition as to merchantability (Sec. 16)
• Where goods are bought by description from a seller who deals in goods of that description, there is an implied condition that the goods shall be of merchantable quality.
• Implied condition as to wholesomeness
• In the case of eatable and foodstuff, there is an implied condition that the goods shall be wholesome, i.e., free from any defect which renders them unfit for human
consumption.
Define a promissory note, bill of exchange and a cheque. And explain the diff between the three.

Difference between promissory note, bill of exchange and cheque - iPleaders

What are directive principles of State Policy? Mention any 5 directive principles of State Policy that has been given effect
by the legislature.

• Part IV of the Indian constitution talks about the directive principles of our state policy. These are provisions that any court cannot
enforce, but they are important in the country’s governance, and the state can make laws per these principles.
• This is a concept derived from the Irish Constitution. They are positive obligations or suggestions to a state to enforce a law, unlike
fundamental rights, which are negative obligations.
• Implementations by the legislation
• Provision For Just and Humane Conditions of Work and Maternity Relief – The Maternity Benefit Act of 1961 and the Equal Remuneration Act of
1976 were enacted to protect the interests of women workers in India.
• Living wage etc., for workers – The Minimum Wages Act of 1948 is an Indian labour law establishing minimum wages for skilled and unskilled labour.
Following independence in 1948, India enacted the Minimum Wage Act, which gave the central and state governments authority over wage
determination.
• Provision For Free and Compulsory Education for Children – The Right of Children to Free and Compulsory Education Act (RTE) is an Act of the
Parliament of India enacted on 4 August 2009, which describes the modalities of the importance of free and compulsory education for children aged 6
to 14 years in India.
• Promotion Of Educational and Economic Interests of Scheduled Castes, Scheduled Tribes and Other Weaker Sections – Scheduled Castes and
Scheduled Tribes (Prevention of Atrocities) Act, 1989 consists of 6 Chapters and 26 Sections. Punishment for violation can be Imprisonment for life
and even the death penalty in some cases.
• Protection And Improvement of Environment and Safeguarding of Forests and Wildlife – The Wildlife (Protection) Act of 1972, the Forest
(Conservation) Act of 1980, and the Environment (Protection) Act of 1986 were all passed to protect wildlife and forests.
Explain the difference between fundamental rights and directive principles of State Policy and name the six freedoms
that have been guaranteed by Article 19.
• The difference between fundamental rights and directive principles are
• Fundamental Rights can be understood as the basic freedoms enjoyed by every citizen of the country, which are recognized by society and sanctioned by the State.
Conversely, the central or state government frames laws and policies, and certain principles are called directive principles of state policy.
• Fundamental rights are defined under Part III of the Constitution, comprising articles from 12 to 35. Directive Principles of State Policy are embodied under Part IV
of the Constitution, containing articles 36 to 51.
• Fundamental rights are negative because they prevent the government from doing certain things. In contrast, Directive Principles are positive, requiring the
government to do certain things.
• Fundamental Rights are justiciable, as they can be enforced, whereas the directive principles are non-justiciable, in that they are not enforceable by the court of
law.
• While fundamental rights establish political democracy, directive principles set social and economic democracy.
• Fundamental Rights are legal sanctions, but directive principles are moral and political sanctions.
• Fundamental Rights follow an individualistic approach, promoting individual welfare. On the contrary, Directive Principles promote the interest of the community.
• The six Freedoms guaranteed under Article 19 of the Constitution are explained below
1. Freedom of Speech and Expression: This right helps people discover the truth. It enables us to participate in public activities "freedom of expression" also
incorporates the freedom of the press, Where there is a question of interests of public order and the security of the State. decency or morality, their reasonable
restrictions on this right can be imposed
2. Freedom to assemble peaceably and without Arms: The right of assembly is to be exercised peaceably and without arms as per the limitations concerned.
However, the State is liable to impose reasonable restrictions in the interests of public order or national integrity.
3. Freedom to form Associations and Unions: The citizens can form associations or unions. The State may impose reasonable restrictions on freedom in the interests
of morality, public order and the sovereignty and integrity of India.
4. Right to move freely: The citizens have the right to go anywhere in the territory of India. However, restrictions may be imposed on the movement and travelling to
control an epidemic.
5. Freedom to reside and settle in any part of India: Reasonable restrictions are imposed on this freedom in the interests of the general public or for the protection of
the interests of the Scheduled Tribes.
6. Right to practise any profession or to carry on any Occupation: Though this right allows all citizens to practise any profession or carry on any occupation, trade or
business, the State may impose reasonable restrictions on this right in the interests of the general public. To carry on dangerous or immoral business is not allowed.
Professional or technical qualifications may be prescribed for practising any profession or carrying on the trade.
Explain the difference between Noting and Protest.

• Noting
• Noting is a convenient mode of authenticating that a bill or note has been dishonoured. When a
note or a bill has been dishonoured by non-acceptance or non-payment, the holder causes such
dishonour to be noted by a Notary public.
• Noting is a minute recorded by a notary public on the dishonoured instrument. When an
instrument, say a bill of exchange, is to be noted for dishonour, it is taken to the Notary public, who
presents it once again for acceptance or payment, as the case may be.
• If the drawee or acceptor still refuses to accept or pay the bill, it is noted, i.e., a minute is prepared
to contain the date of dishonour, the reason for such dishonour, etc.; which is attached to the
instrument, and the facts are noted on the instrument.
• Protest
• When an instrument is dishonoured, the holder may cause the fact not on by to be noted but also
to be certified by a Notary Public that the bill has been dishonoured. Such a certificate is referred to
as a protest.
Name the various agencies constituted under the Consumer Protection Act 1986 and examine their
constitution and jurisdiction.
• Under the Consumer Protection Act 1986 three-tier consumer dispute redressal system has been set up at the
District, State, and National levels. Thus the Act provides for establishing the following consumer redressal
agencies
1. District Consumer Forum in each state district set up by the State Government.
• This team comprises a president who is or is qualified to be a district judge and two other members who have adequate
knowledge and experience and can deal with problems concerning the law, commerce, accountancy, industry, public affairs
or administration, and one of them is a woman.
• The District Consumer Forum has jurisdiction over complaints of goods and services valued up to 1 crore.
2. State Consumer Commission in each state set up by each State.
• This team comprises a president who is or has been a judge of a high court appointed by the state government and two
other members who have adequate knowledge and experience and can deal with problems concerning the law,
commerce, accountancy, industry, public affairs or administration, and one of them is a woman.
• The State Consumer Commission has the jurisdiction to entertain complaints regarding goods and services valued from 1
crore to 10 crores, and the complaints escalated from the district consumer forums of the state. It can also call for records
from any district consumer forums of the state.
3. National Consumer Commission set up by the Central Government.
• This team comprises a president who is or has been a judge of the Supreme Court of India and is appointed by the central
government in consultation with the Chief Justice of India; four other members have adequate knowledge and experience
and can deal with problems concerning the law, commerce, accountancy, industry, public affairs or administration, and one
of them is a woman.
• The jurisdiction of the National Consumer Commission is to entertain complaints of goods and services valued beyond ten
crores. It is authorised to hear appeals against the order of any state commissions. It can also call for records from any
consumer commissions in the country.
Explain the following with examples
a) Damnum sine injuria b) Volunti non fit injuria c) Injuria sine Damnum d) Writ of Habeas Corpus
Damnum
Damnumsine
sineinjuria
injuria Injuria sine Damnum
• • AsAsa arecognised
recognised principle
principle of
ofthe
theLaw
Lawof of
Torts in India,
Torts damage
in India, without
damage legal injury
without legal • It means Injury without legal damage. As per this maxim, even if it doesn’t lead to any
is not actionable in a court of law.
injury is not actionable in a court of law. damage, the smallest legal injury is liable to be compensated.

Evenifif the • The amount of damages depends on various factors- the extent of the legal injury
• • Even the plaintiff
plaintiffhashassuffered physical/monetary
suffered damagedamage
physical/monetary due to andue
intentional
to an suffered, the nature of the right infringed, the relationship between the plaintiff, the
or unintentional act of the defendant, the court of law will not
intentional or unintentional act of the defendant, the court of law will not grant grant legal
remedy to them if their legallegal
rightright
has not type of damage incurred, precedent requirement, the extent of harm foreseen by the
legal remedy to them if their hasbeen infringed.
not been infringed. defendant, the effort put in by the defendant to curb the damage caused etc.
Ushaben
• • Ushaben Trivediv.v.Bhagyalaxmi
Trivedi BhagyalaxmiChitra
ChitraMandir
Mandir • Asharfilal v. Municipal Corporation of Agra
• • InInthis
thiscase,
case,the theplaintiff
plaintiffalleged
alleged that
that continued
continued sounds
sounds ofof religious
religious • Herein, a voter’s name was dropped from the electoral list of local municipality
invocationhurt
invocation hurtherherreligious
religious sentiments
sentiments and
and thus
thus prayed
prayed for
for aa legal
legal elections, due to which he was deprived of exercising his legal right to vote.
injunction.
injunction. • Consequently, he brought about a plaint for damages to demand compensation
• The court concluded that any hurt to religious feelings could not construe from the Municipal Corporation of Agra for violating his legal right.
• The court concluded that any hurt to religious feelings could not construe
as a violation of legal rights. Hence the plea of the plaintiff was denied.
as a violation of legal rights. Hence the plea of the plaintiff was denied.

Volenti Non Fit Injuria Writ of Habeas Corpus


• Normally, when a person suffers an injury at the expense of someone else’s lack of • According to this writ, we can file a writ petition if anybody is detained without
care or breach of duty, the person who displays such breach of duty is liable to pay legal notice. After filing the petition, the court will ask the authority to produce
damages to the victim. Volenti Non Fit Injuria is a defence that the defendant could the body and question why the person is detained. If the reason is legal, no
use to avoid such damages. actions will be taken, but if the detention is for illegal reasons, the court will
• Volenti Non Fit Injuria tries to indicate that the plaintiff voluntarily agreed to suffer
order them to release the detained person.
harm; therefore, later, they must not complain about the same as he consented to • Ms. Gulfisha Fatima vs the state
it.
• a 25-year-old lady was detained due to a protest against CAA. A petition
• Lakshmi Rajan v. Malar Hospital Ltd of habeas corpus was filed against this detention. Even though she was
• the complainant was a married woman. She noticed a development of a granted bail, she remains in jail.
painful lump in her breast. Although the lump did not affect her uterus, • “This constitutes a deprivation of the liberty of Ms Fatima without due
during the surgery, her uterus was removed without any reason whatsoever. process, and therefore violates her fundamental right to life and liberty
• It was held that the hospital was liable for deficiency in service. The court secured under Article 21 of the Constitution of India,” the plea said.
held that the patient’s consent for the operation did not imply her consent • The plea said that her continued detention was without authority of law
to remove the uterus. and urged the High Court to release her immediately.
Explain any fake encounter case that happened recently.

• Ramnarayan Gupta, conventionally known as Lakhan Bhaiya, was believed to be an aide of


Chota Rajan and was arrested from Navi Mumbai on November 2006 on the same day
Lakhan Bhaiya was encountered near Nana-Nani park at Versova.
• In the said encounter, Pradeep Sooryavanshi, Pradeep Sharma, Tanaji Desai and Dilip Palande
played a crucial role. In 2016 the presiding judge, V. D. Jadhvar, sentenced all accused to life
imprisonment, including murder, kidnapping and destruction of evidence. The court found
21 people guilty, except Pradeep Sharma.
• A report to the High Court in August 2009 stated that Lakhan Bhaiya was killed at point-blank
range. Following the report, the court ordered a judicial investigation and formed a Special
Investigation Team (SIT) to investigate the allegations.
• Most essential key to this puzzle was the testimony of the witness Anil Bheda which couldn’t
be recorded due to his murder and twisted the case further. The court of sessions in Mumbai
in 2013 sentenced 21 people, i.e. 13 police officers and eight others, to life imprisonment for
the murder of Lakhan Bhaiya.
What is meant by endorsement? Explain the various kinds of Indorsements provided under the Negotiable
Instruments Act of 1881.
• The act of a person who is a holder of a negotiable instrument in signing their name on the back
of that instrument, thereby transferring title or ownership, is an endorsement. An endorsement
may be in favour of another individual or legal entity.
• An endorsement transfers the property to that other individual or legal entity. The person to
whom the instrument is endorsed is called the endorsee. The person making the endorsement is
the endorser.
• Types of Endorsement
• Blank Endorsement – An endorsement is blank or general where the endorser signs his name only, and it
becomes payable to the bearer. Thus, where a bill is expected to “Ram or order”, and he writes on its back
“Ram”, it is an endorsement in blank by Ram, and the bill’s property can pass by a mere presentation.
• Special Endorsement – An endorsement “in full” or a special endorsement is one where the endorser puts
his signature on the instrument and writes the name of a person to whom the payment is to be made.
• Restrictive Endorsement – An endorsement is restrictive, restricting the further negotiation of an
instrument. Examples of restrictive endorsement: “Pay to Mrs Geeta only”, “Pay to Mrs Geeta for my use”,
“Pay to Mrs Geeta on account of Reeta”, or “Pay to Mr Seeta or order for collection”.
• Partial Endorsement – A partial endorsement allows transferring to the endorsee a part of the amount
payable on the instrument. This does not operate as a negotiation of the instrument
• Conditional Endorsement –Where the endorser puts his signature under such writing, which makes the
transfer of title subject to fulfilment of some conditions of the happening of some events, it is a
conditional endorsement.
Define Consumer with the help of decided cases: Synco Batteries

• Any Person Who Uses The Goods With The Approval Of The Buyer Is A Consumer – When a person
buys goods, they may be used by his family members, relatives, and friends. Any person using the
goods may come across defects in goods. Thus the law construes users of the goods as consumers,
although they may not be buyers at the same time.
• In the case of Synco Textiles Pvt. Ltd. Vs Greaves Cotton & Co. Ltd. 1991 National Commission.
Appellant Company was engaged in the business of oil mills to produce edible oil and oil cakes
from oil seeds. The appellant had purchased three gen sets from the respondent Company, which
was found to be defective and therefore claimed Consumer Protection Act.
• The National Commission held that the purpose of purchasing the generating set was to generate
running Compensation under the Set electricity for the expeller machinery in the Commercial
factory production of edible oil and therefore was not a consumer within the meaning of Section
2(1)(d)(i) of the Consumer Protection Act, 1986
• From the definition extracted above, it is seen that inflation to transactions of purchase of goods,
Parliament has excluded from the scope of the definition any person who obtains goods for resale
or any commercial purpose. Since cases of resale have been separately referred to, it becomes
evident that the words "for any commercial purpose" are intended to cover cases other than
those of resale of the goods.
How has the competition act in India tried to bring in more competition in goods and services to benefit the consumers?

The Competition Act 2002 is a legislation in India aimed at promoting competition in markets, protecting the interests of
consumers and ensuring freedom of trade. The Act seeks to prevent anti-competitive practices such as abuse of dominance,
cartelisation, and bid rigging.
The Competition Act has tried to bring in more competition in goods and services to benefit consumers in several ways:
• Prohibition of anti-competitive agreements: The Act prohibits agreements restricting competition, including cartels, price-
fixing, and bid-rigging. This ensures that businesses cannot collude to fix prices or restrict supply, which would harm
consumers.
• Prevention of abuse of dominance: The Act prevents dominant players from abusing their position in the market to the
detriment of consumers. This includes predatory pricing, tying and bundling, and refusing to deal with competitors.
• Merger control: The Act requires businesses to notify the Competition Commission of India (CCI) of any merger or
acquisition that crosses certain thresholds. The CCI reviews such transactions to ensure that they do not lead to reduced
competition in the market, which could harm consumers.
• Advocacy and awareness: The Act also provides advocacy and awareness programs to promote competition and consumer
welfare. The CCI conducts workshops, seminars, and other programs to educate stakeholders about competition law and
policy.
• Leniency program: The Act provides a leniency program that incentivises businesses to come forward and disclose anti-
competitive conduct in exchange for immunity or reduced penalties. This program encourages businesses to self-report
anti-competitive conduct, which can lead to faster detection and prosecution of such conduct.
Consideration - Rules of consideration. Khwaja Mohammad Khan vs Husaini Begum

Khwaja Mohammad Khan v. Husaini Begum is a landmark case in Indian contract law that deals with the rules of consideration. The Privy
Council decided the case in 1910.
Facts of the case
Khwaja Mohammad Khan had promised to pay Rs. 60 per month to Husaini Begum for her life in return for her transferring certain properties to
him. The promise was made orally and was not supported by any written agreement. Khan paid the amount for a few months and then
stopped. Husaini Begum sued him for breach of contract.
Issue
The main issue before the court was whether there was a valid consideration for the promise made by Khan.
Decision
The court held no valid consideration for Khan’s monthly promise to pay Rs—60. The promise was made in consideration of the transfer of
certain properties by Husaini Begum. However, the transfer was not legally valid, as any written agreement did not support it. As such, there
was no consideration for the promise made by Khan, and he was not bound to pay the amount.
Rules of consideration
The case established the following rules of consideration:
1. Consideration must move at the desire of the promisor
2. Consideration may be past, present or future
3. Consideration must be reals and not illusory
4. Consideration need not be of equal value to the promise made by the promisor. It is sufficient as long as it is real and has some value.
5. Consideration must be legal
Name the writs and write their meaning

In India, five types of writs can be issued by the Supreme Court or High Courts to enforce fundamental
rights and protect the citizens against the arbitrary exercise of power by the government or its agencies.
They are:
• Habeas Corpus: It means "to have the body." This writ produces a person detained or imprisoned and
ensures the detention is legal. The purpose of this writ is to protect an individual's liberty and freedom.
• Mandamus: This writ is issued by a court to a public official, government, or any other authority,
directing them to perform a legal duty they failed to do. The writ is a command to perform a public duty
owed to an individual or society.
• Prohibition: This writ is issued by a higher court to a lower court or a tribunal, prohibiting them from
exceeding their jurisdiction or performing an act they are not authorised to do. The purpose of this writ
is to prevent the abuse of power by lower courts or tribunals.
• Certiorari: This writ is issued by a higher court to a lower court, tribunal, or any other authority, calling
for the records of a particular case for review. The purpose of this writ is to ensure that the lower court
or tribunal has acted within its jurisdiction and has not committed any error of law.
• Quo Warranto: It means "by what authority." This writ is issued to inquire into the legality of a person’s
claim to hold a public office. The purpose of this writ is to prevent the appointment of unauthorised
persons to public offices and to ensure that public offices are held by qualified and eligible persons only.
The decision of the Supreme Court in the case of Kunal Shah and Prashant Dhanuka has made the hospitals take extra
care and caution while treating the patients, as the Supreme Court has demonstrated that medical negligence in any form
cannot be tolerated. Comment.

The case of Kunal Shah and Prashant Dhanuka is a landmark case in India highlighting the importance of holding hospitals
and doctors accountable for medical negligence. The case involved the death of a patient due to the negligence of the
hospital and its doctors, who failed to provide the necessary medical care and attention that the patient needed.
The Supreme Court's decision, in this case, has been significant. Firstly, it has sent a strong message to hospitals and doctors
that they must be bold in their duties towards patients. They need to take extra care and caution while treating patients and
ensure that the highest standards of medical care are maintained at all times.
Secondly, the decision has highlighted the importance of the legal system in ensuring that medical negligence is dealt with
firmly and swiftly. The court's decision has demonstrated that the legal system is there to protect patients’ rights and ensure
that justice is done.
Thirdly, the decision has significantly impacted the medical profession in India. It has led to a greater awareness of the need
to provide quality medical care to patients and ensure that medical negligence is not tolerated. The case has served as a
reminder to hospitals and doctors that they must be more vigilant and take all necessary precautions to ensure the safety of
their patients.
Overall, the case of Kunal Shah and Prashant Dhanuka has highlighted the importance of ensuring that medical negligence is
not tolerated in any form. It has demonstrated that the legal system protects patients’ rights and holds hospitals and doctors
accountable for their actions. The case has significantly impacted the medical profession in India and has led to a greater
emphasis on providing quality medical care to patients.
When can the corporate veil be lifted? Discuss with the help of decided cases.

The principle of corporate personality, which recognises that a company is a separate legal entity distinct from its shareholders
and directors, is a fundamental principle of company law. However, there are certain circumstances where the courts may
disregard the principle of separate legal personality and "lift the corporate veil" to hold the shareholders or directors personally
liable for the company's actions. One such circumstance is when a company is used as a mere "facade" or "sham" to conceal
illegal or improper activities.
Continental Tyre South Africa (Pty) Ltd v DaimlerChrysler AG is a case where the courts lifted the corporate veil. In this case, the
South African subsidiary of DaimlerChrysler AG, Mercedes-Benz South Africa (Pty) Ltd (MBSA), was found guilty of engaging in
anti-competitive conduct and violating South African competition law.
The issue in the case was whether DaimlerChrysler AG, as the parent company of MBSA, could be held liable for the actions of its
subsidiary. The court held that DaimlerChrysler AG was liable for the actions of MBSA because it had controlled its subsidiary's
activities and had used it as a mere "facade" to engage in illegal activities.
The court applied the principle of "piercing the corporate veil" and held that DaimlerChrysler AG could not rely on the separate
legal personality of its subsidiary to escape liability for its actions. The court found that DaimlerChrysler AG had used MBSA as a
mere "instrumentality" to carry out its anti-competitive activities and that the two companies were one entity.
The court also held that DaimlerChrysler AG had failed to exercise proper control over its subsidiary and that it had allowed
MBSA to operate as a separate legal entity in name only. Therefore, the court held that DaimlerChrysler AG was liable for the
actions of MBSA and ordered it to pay a fine of R17 million (approximately $2.5 million at the time).
Various types of companies can be formed under the companies act 2013.

1. Private Limited Company: This company requires a minimum of 2 and a maximum of 200 shareholders. The minimum paid-
up capital for this type of company is INR 1 lakh (approx. $1,300). The shareholders' liability is limited to the amount of their
shareholding in the company.
2. Public Limited Company: This company requires a minimum of 7 shareholders, and there is no limit on the maximum
number of shareholders. The minimum paid-up capital for this type of company is INR 5 lakh (approx. $6,500). The
shareholders' liability is limited to the amount of their shareholding in the company.
3. One-Person Company (OPC): This company can be formed with only one person as its member. The minimum paid-up
capital for an OPC is INR 1 lakh (approx. $1,300). The shareholder's liability is limited to the amount of their shareholding in
the company.
4. Section 8 Company: This company promotes charitable, scientific, or educational objectives. There is no minimum capital
requirement for this type of company. The members' liability is limited to the amount of their shareholding in the company.
5. Producer Company: This is a company formed by a group that produces primary produce or has one or more objectives
relating to the primary producers. The minimum number of shareholders is required for this type of with, and there is no
maximum limit. The minimum paid-up capital requirement for a producer company is INR 5 lakh (approx. $6,500). The
shareholders' liability is limited to the amount of their shareholding in the company.
6. Limited Liability Partnership (LLP): This type of company requires a minimum of 2 partners, and there is no limit on the
maximum number of partners. There is no minimum capital requirement for an LLP. The partners' liability is limited to the
amount of their share in the LLP.
Contents of Memorandum of Association with the help of case laws. (Ashbury Railway vs Richie)

The Memorandum of Association is a document that sets out the company's constitution and its objectives. It contains the
fundamental provisions governing the company's relationship with its shareholders and the outside world. The case of Ashbury
Railway Carriage and Iron Co. Ltd. v. Riche provides an example of the contents of the Memorandum of Association.
The following are the main contents of the Memorandum of Association:
• Name Clause: The Memorandum of Association begins with the name clause, which sets out the company’s name.
• Registered Office Clause: The registered office clause specifies the location of the company's registered office. This is the
company’s official address, and all official communications are sent to this address.
• Objects Clause: The objects clause sets out the company's objectives and the activities that it can undertake. In the case of
Ashbury Railway, the company's objects clause stated that it would manufacture, sell, and lease railway carriages and other
related activities.
• Liability Clause: The liability clause specifies the liability of the company's members. In the case of Ashbury Railway, the
liability clause stated that the company's members' liability was limited to the amount they had agreed to contribute to the
company's assets.
• Capital Clause: The capital clause specifies the amount of capital the company is authorised to raise and the number of
shares the company is authorised to issue. In the case of Ashbury Railway, the capital clause stated that the company was
authorised to issue 50,000 shares of £10 each.
Write short notes on Copyrights, trademarks, trade secrets, and patents, Non-Disclosure
Agreements.
Copyrights Patents
• Copyright is a form of legal protection that gives the creator of an original work exclusive rights to • Patents are a form of legal protection that gives inventors the exclusive right to
control the use of that work. make, use, and sell an invention for several years.
• Copyrights protect artistic, literary, and musical expression and other creative works like computer • In exchange for this exclusive right, the inventor must disclose the details of
software and architectural designs.
the invention to the public so that others can learn from it.
• Copyright law gives the copyright owner the exclusive right to publicly reproduce, distribute,
• Patent protection can be granted for inventions that are new, useful, and non-
display, and perform the work.
obvious. Patents can be granted for machines, processes, compositions of
• Copyrights can be registered with the relevant government authorities, but registration is not always
required to establish copyright protection.
matter, and designs.
• Copyright protection typically lasts for the lifetime of the creator plus a certain number of years • Patents are registered with the relevant government agency and typically last
after their death, depending on the jurisdiction. for 20 years from the date of application.

Trademarks Non-Disclosure Agreement (NDA)

• Trademarks are symbols, words, or designs that distinguish one company's goods or services from • A non-disclosure agreement (NDA) is a legal contract that outlines
another. confidential material, knowledge, or information that the parties wish to share
• Trademarks are intellectual property that can be registered with the relevant government agency, for specific purposes but wish to restrict from wider use or dissemination.
such as the United States Patent and Trademark Office. NDAs can be unilateral or mutual.
• Trademark protection gives the owner the exclusive right to use the trademark to identify their • A unilateral NDA is used when only one party discloses confidential
goods or services and prevent others from using the same or similar mark.
information, while a mutual NDA is used when both parties share confidential
• Trademark protection can last indefinitely if the trademark is used and the owner maintains the
information.
registration.
• NDAs can be used to protect trade secrets, confidential business information,
Trade Secrets
or proprietary information.
• Trade secrets are confidential business information that gives a company a competitive advantage. • The NDA specifies the scope of the confidential information, the duration of
• Examples of trade secrets include customer lists, manufacturing processes, and marketing strategies. the agreement, and the consequences of any breach of the agreement.
• Trade secrets are not registered with any government agency and can be protected indefinitely as
• NDAs are commonly used in business transactions, employment contracts,
long as they are kept secret.
• Companies often use non-disclosure agreements (NDAs) to protect their trade secrets when sharing and other situations where confidential information must be shared
information with employees or other companies.
Appointment and responsibilities of directors, under Company Act 2013

Under the Companies Act 2013, directors are appointed by the company’s Responsibilities of Directors:
shareholders in a general meeting. The Act sets out certain qualifications and
disqualifications for directors. 1. Duty to act in good faith
2. Duty to exercise their powers for a proper purpose and not for any
Qualifications of Directors:
improper purposes.
• Must be a natural person and not a company or other entity 3. Directors must avoid situations where their interests conflict with the
• Must have attained the age of 18 years company’s interests.
4. Directors must maintain the confidentiality of the company's sensitive
• Must not be an undischarged bankrupt
information and not disclose it to any unauthorised parties.
• Must not have been convicted of any offence involving moral turpitude or 5. Directors must ensure the company complies with all applicable laws,
any economic offence regulations, and standards.
Disqualifications of Directors: 6. Directors must ensure that the company maintains proper books of
accounts and that these are regularly audited.
• If they are of unsound mind
7. Directors must disclose their interests in any transaction or contract
• If they have been declared insolvent entered into by the company.
• If they have been convicted of an offence involving moral turpitude 8. Directors must attend board meetings and other meetings as necessary
to ensure the company’s proper functioning.
• If they have been convicted of an economic offence
Directors are also responsible for ensuring that the company is managed
• If they have been disqualified by the government or by a court according to its Memorandum and Articles of Association and that its assets
are safeguarded.

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