CONTRACT ACT FOR ENTREPRENEURS
by : DR. T.K. JAIN AFTERSCHO☺OL centre for social entrepreneurship sivakamu veterinary hospital road bikaner 334001 rajasthan, india FOR – PGPSE – PGPSE / CSE PARTICIPANTS mobile : 91+9414430763 5 DECEMBER 09
www.afterschool.tk
1
My words....
Here I present a few basic questions qu estions on contract law. I wish that more people should become entrepreneurs. An ordinary Indian In dian entrepreneur wishes to remain an honest entrepreneur and contribute to the development of nation but we have h ave to strengthen those institutions which truly promote entrepreneurship, not just degree granting institutions. Let us work together to promote knowledge, wisdom, social development and education. We believe in free education for all, free support su pport for all, entrepreneurship opportunities and training for all. Let us work together for these goals. ... I alone cant do much, I need support of perosns like you .......... ...
5 DECEMBER 09
www.afterschool.tk
2
A principal revokes an agency, but the agent is not aware of it and makes a contract, will the contract be valid ?
5 DECEMBER 09
www.afterschool.tk
3
Answer
Yes agency is revoked when the agent comes to know about its revocation. In this case, the agent is not aware of revocation, so the agency is still valid. 5 DECEMBER 09
www.afterschool.tk
4
What are the cases, when agency cannot be revoked at all ?
5 DECEMBER 09
www.afterschool.tk
5
Solution
Agency cannot be revoked in following cases : 1. agency with interest 2. agent has already incurred personal liability 3. agent has partly exercised his authority
5 DECEMBER 09
www.afterschool.tk
6
What is agency with interest ?
5 DECEMBER 09
www.afterschool.tk
7
Answer
When the agent has some interest attached to the agency, it is called agency with interest (read sec. 202)
5 DECEMBER 09
www.afterschool.tk
8
What are the duties of an agent ?
5 DECEMBER 09
www.afterschool.tk
9
Solution He must act within his scope he must keep true accounts he must give material information to the principal he must follow the instructions of principal he must not make secret profit, act honestly and reasonably he must not reveal confidential information of the principal 5 DECEMBER 09
www.afterschool.tk
10
When does agency terminate ?
5 DECEMBER 09
www.afterschool.tk
11
Answer In the following cases : 1After specified time 2 when the object of agency is destroyed 3 when agency is revoked 4 when agency is renunciated by the agent 5 when the principal dies / becomes lunatic 6 as per agreement 5 DECEMBER 09
www.afterschool.tk
12
Who is a factor ?
5 DECEMBER 09
www.afterschool.tk
13
Answer
A factor is a mercantile agent employed to sell goods which have been placed in his possession or contract to buy goods for his principal.
5 DECEMBER 09
www.afterschool.tk
14
When can a finder of lost goods sell them ?
5 DECEMBER 09
www.afterschool.tk
15
Answer where the owner cannot with reasonable diligence be found, or when found, he refuses to pay the lawful charges of the finder and— if the thing is in danger of perishing or losing greater part of its value, or when the lawful charges of the finder for the preservation of goods and the finding out of the owner amounts to two-thirds of the value of the thing (Section 169). 5 DECEMBER 09
www.afterschool.tk
16
What is bailment ?
5 DECEMBER 09
www.afterschool.tk
17
Answer
Bailment is a voluntary delivery of goods for a temporary purpose on the understanding that they are to be returned in specie in the same or altered form. The ownership of the goods remains with the bailor, the bailee getting only the possession.
5 DECEMBER 09
www.afterschool.tk
18
What is gratuitous bailment ?
5 DECEMBER 09
www.afterschool.tk
19
Answer A gratuitous bailment is one in which neither the bailor nor the bailee is entitled to any remuneration. Such a bailment may be for the exclusive benefit of the bailor, e.g., when A leaves his cow with a neighbour to be looked after in A’s absence on a holiday. 5 DECEMBER 09
www.afterschool.tk
20
What is a contract of indemnity ?
5 DECEMBER 09
www.afterschool.tk
21
Answer
A contract of indemnity is a contract by which one party promises to save the other party from loss caused to him by the conduct of the promisor himself, or by the conduct of any other person 5 DECEMBER 09
www.afterschool.tk
22
What is an injunction ?
5 DECEMBER 09
www.afterschool.tk
23
Answer
An injunction, is an order of a Court restraining a person from doing a particular act. It is a mode of securing the specific performance of a negative term of the contract
5 DECEMBER 09
www.afterschool.tk
24
What is liquidated damages?
5 DECEMBER 09
www.afterschool.tk
25
Answer
Where the contracting parties fix at the time of contract the amount of damages that would be payable in case of breach, it is called liquidated damages
5 DECEMBER 09
www.afterschool.tk
26
What is novation of a contract ?
5 DECEMBER 09
www.afterschool.tk
27
Answer
when a new contract is substituted for existing contract either between the same parties or between different parties, the consideration mutually being the discharge of the old contract.
5 DECEMBER 09
www.afterschool.tk
28
What the cases when specific performance of contract is not ordered ?
5 DECEMBER 09
www.afterschool.tk
29
Answer IN THE FOLLOWING CASES : where monetary compensation is an adequate remedy where the Court cannot supervise the execution of the contract, where the contract is for personal service where one of the parties is a minor. 5 DECEMBER 09
www.afterschool.tk
30
WHAT ARE THE RESPONSIBILITIES OF THE FINDER OF THE LOST GOODS?
5 DECEMBER 09
www.afterschool.tk
31
ANSWER
The liability of a finder of goods belonging to someone else is that of a bailee. This means that he must take as much care of the goods as a man of ordinary prudence would take of his own goods of the same kind. 5 DECEMBER 09
www.afterschool.tk
32
What are the responsibilities of a person who is getting gratuitous benefits ?
5 DECEMBER 09
www.afterschool.tk
33
Answer
Section 70 of the Indian Contract Act provides that where a person lawfully does something for another person or delivers anything to him without any intention of doing so gratuitously and the other person accepts and enjoys the benefit thereof, the latter must compensate the former or restore to him the thing so delivered. 5 DECEMBER 09
www.afterschool.tk
34
What is a contingent contract ?
As per Section 31, a contingent contract is a contract to do or not to do something, if some event collateral to such contract, does or does not happen.
5 DECEMBER 09
www.afterschool.tk
35
What are the principles on which quasi contracts are based ?
5 DECEMBER 09
www.afterschool.tk
36
Answer A quasi contract is an obligation. It is an obligation of a person towards another person because he has got something unjustifiably. It is based on the equitable principle that a person shall not be allowed to enrich himself unjustly at the expense of another 5 DECEMBER 09
www.afterschool.tk
37
What is the extent of liability of the surety ?
5 DECEMBER 09
www.afterschool.tk
38
Answer
As per sec. 128 :The liability of the surety is co-extensive with that of the principal debtor unless the contract otherwise provides . A creditor can even sue the surety without sueing the principal debtor. 5 DECEMBER 09
www.afterschool.tk
39
What is pledge ?
5 DECEMBER 09
www.afterschool.tk
40
Answer
Pledge or pawn is a contract whereby an an article is deposited with a lender of money or promisee as security for the repayment of a loan or performance of a promise. 5 DECEMBER 09
www.afterschool.tk
41
5 DECEMBER 09
www.afterschool.tk
42
Download links .... http://www.scribd.com/doc/30778316/Permutations http://www.scribd.com/doc/30778304/Differentiati http://www.scribd.com/doc/30778217/Unitary-Met http://www.scribd.com/doc/30778090/Questions-o http://www.scribd.com/doc/30646219/Mock-Interv http://www.scribd.com/doc/30888753/General-Kno 5 DECEMBER 09
www.afterschool.tk
43
Download links .... http://www.scribd.com/doc/30778316/Permutations http://www.scribd.com/doc/30778304/Differentiati http://www.scribd.com/doc/30778217/Unitary-Met http://www.scribd.com/doc/30778090/Questions-o http://www.scribd.com/doc/30646219/Mock-Interv http://www.scribd.com/doc/30888753/General-Kno 5 DECEMBER 09
www.afterschool.tk
44
Download links ..... http://www.scribd.com/doc/30646577/Afterschoool http://www.scribd.com/doc/11953346/Mathematics http://www.scribd.com/doc/11867744/Management http://www.brijj.com/group/gmat-entrance-exam--p http://www.docstoc.com/docs/3921499/ENGLISHhttp://www.docstoc.com/docs/3967158/basiC-MA http://www.authorstream.com/Presentation/tkjainb http://www.authorstream.com/Presentation/tkjainb 5 DECEMBER 09
www.afterschool.tk
45
Spread the concepts of AFTERSCHOOOL Join PGPSE start CENTRES of AFTERSCHOOOL spread entrepreneurship & social entrepreneurship let us work for social upliftment together let us work for some common goals conduct workshops on social entrepreneurship make your career in social entrepreneurship 5 DECEMBER 09
www.afterschool.tk
46
THANKS.... GIVE YOUR SUGGESTIONS AND JOIN AFTERSCHOOOL NETWORK / START AFTERSCHOOOL SOCIAL ENTREPRENEURSHIP NETWORK IN YOUR CITY / COLLEGE
[email protected] PGPSE – WORLD'S MOST COMPREHENSIVE PROGRAMME IN SOCIAL ENTREPRENEURSHIP 5 DECEMBER 09
www.afterschool.tk
47
