Contract act came into force in the year 1872. Contract act is followed all throughout India except Jammu and Kashmir. Contract act comes under the business law and is followed when two parties, a buyer and a seller enters into a contract with each other. Every company engages in selling or buying commodities. When a buyer and a seller agrees to buy or sell an asset, they sign a contract that is enforceable under the law. The person who makes the offer is called the promisor. The person...
Contract act came into force in the year 1872. Contract act is followed all throughout India except Jammu and Kashmir. Contract act comes under the business law and is followed when two parties, a buyer and a seller enters into a contract with each other. Every company engages in selling or buying commodities. When a buyer and a seller agrees to buy or sell an asset, they sign a contract that is enforceable under the law. The person who makes the offer is called the promisor. The person who accepts the proposal is called the promise.
The elements of the contract act.
The essential elements of any contract act include offer and acceptance. The contract involves two parties: one, who proposes and the other who receives the offer. A deal comes into being only after certain legal formalities are followed. Every act should have a lawful object and should not be expressively declared void. The terms and conditions of the act should have the capacity and the consent to contract.
- Offer: The person who makes the offer is called the promiser. He promises to deliver an asset at a particular time for a fixed amount.
- Acceptance: The second party who accepts the offer is called the promise. Terms and conditions of both offer and acceptance must be clearly stated in the contract.
Capacity to Contract:
According to the law, any person who is a major and is of a sound mind can enter into a contract. However, a person who does not have a rational mind can also enter into a contract when he is in his senses. A person suffering from an unsound mind cannot enter into a contract. An incorporated company may not be allowed to enter into a contract.
Discharge of a contract.
A contract is discharged if both the parties violate the terms mentioned in the contract. Change of law, the death of the promiser or promise, lapse of time, breach of contract, failure of the ultimate objective, if the subject matter is destroyed, the contract is declared discharged and wouldn’t be valid. Any sorts of alteration done to the contract, if a new contract gets replaced for an old contract, promise paying lesser amounts than what was agreed for would also discharge the contract.
India law has quasi-contracts to avoid any sorts of benefits that another person has paid for. Let us consider an example to learn about quasi-contracts. Example: Person A orders a pizza and pays for it already. The delivery man now, by mistake delivers it to the wrong address to person B. Person B does not correct the delivery man, pays for the pizza and consumes it. The court, under quasi-contracts, demands the person B pay the same amount (with fine in some cases) to the individual A.
Business laws lay down guidelines on how business should be run. Business laws are encouraged to carry out business in the most ethical way. These rules or regulations are applicable in commerce, merchandising, trade and sales. This includes all the laws that are followed when a business is started, when they involve in transactions, when they buy or sell any business and when a firm goes into dissolution. There include separate laws for corporations, partnerships and limited liability companies. In India, the contract law was passed in the year 1872. The bill is an important aspect that comes under business law. Any sale of assets is made after a written agreement is signed by both the parties (the seller and the receiver) enforceable under law. Here are some tips about business laws that every business owner in India must know.
- Rules governing the formation of a company: Before you form your company, decide what is the type and nature of the company: whether it is sole proprietorship, corporation or family business? This has to be determined first because every kind of company would come under different federal laws and state laws. The primary rule to be kept in mind is that any business before it commences has to be registered with the Registrar of companies.
- Finance laws: If you are applying for a loan to run your business, make sure to get agreement for sanction papers, loan agreement letter, and collateral documentation, sanction letter, etc. If you intend investors to invest in your shares, make sure to have documents like the letter of intent, share subscription agreement letter, shareholders agreement, etc.
- Tax laws and accounting laws: A company should be aware of the State and Central taxes and their due date. It has to be kept in mind that the GST has been already rolled out from June 2017. It is essential to maintain books of accounts in your company as per the legal requirement of the Country.
- Security laws: Your company shares can be listed in the SME stock exchange after registering with the Securities Exchange Board of India otherwise called as SEBI. In India, the SEBI is responsible for rating the banking shares.
- Employment laws: This includes the fundamental rights of the employees, other federal regulations, rules the employees have to abide by, etc.
- Intellectual Property Rights: If any invention or discovery is unique to a particular company, the company has the right to protect it under the IPR act. The IPR is to prevent the design from getting imitated by another company or person till its expiry. Intellectual rights include patent, copyrights, trademarks, etc.
- Contract act: Before entering into any business, a formal contract is signed by two parties. The contract act comes into play when either of the two party’s failure to abide by the law.
To understand criminal law might seem quite simple, but many things add to this important type of legislation.
Reading the word ‘criminal’ out loud, the first thing that comes to mind is a crime and the laws that manage it in a city, state, and overall, a country. Criminal law is thus the area within the law, which includes all prohibited conduct in society.
It involves the process where leaders oversee the maintenance of a country’s safety, to ban the actions that allow for crimes to be present or increased in a country.
This type of law also involves the enforcement of laws, that are set in place, to defend society against the violations of crimes, as well as any allegations thereof.
It is all implemented to protect society and strive towards a safer country altogether. Criminal laws are applied to everyone present in a country. It means that laws don’t only apply to those who are residents of a nation, but also to foreigners visiting that country.
These laws aren’t structured to target specific people, and there is always an appropriate punishment given to those who break it. Breaking the law could lead to punishment, such as retribution, the deterring of inadequate behaviours, as well as preventing offences and the rehabilitation of offenders.
When Does Breaking the Law Become a Crime?
Just because certain types of behaviour are considered prohibited in a country, doesn’t necessarily make it a crime. Illegal conduct that qualifies as a crime is linked to the penalties, as well as the violation thereof. When a prohibited act is considered a crime, the penalty is usually one’s freedom, which other than being sentenced to death, is considered the worst punishment.
All crimes are structured to carry maximum penalties, and if an individual is convicted of a crime, it can lead to being sentenced to jail. In the worst cases, some individuals are sentenced to lifetime imprisonment, which is usually the case with serious crimes, such as murders or violating the safety of others.
When it comes to a criminal offence, however, penalties may include fines, probation, as well as a record of criminal offences that are made clear on one’s profile, which is set in place to prevent individuals from breaking more laws, as the results thereof might be getting convicted.
Committing a Felony or Criminal Offense
All crimes are listed as either misdemeanour offences or felony offences and may result in penalties of one, or more, years of imprisonment. Committing a felony will increase the possibility of being sentenced to state’s prisons, rather than a local jail.
Other than being sentenced to jail, some states will let individuals get off by merely paying a fine, or receiving community service, depending on the severity of the criminal offence.
Getting an estate planning lawyer on your side is an important part of managing your affairs after death. The legal protections offered by an expertly crafted estate plan are crucial to making sure that your wishes are followed after your eventual death.
However life changes faster than we think and the circumstances under which an estate plan was originally created change with it. This is why it’s prudent to keep in regular contact with an estate planner so that you can make sure you and your estate plan are on the same page.
Let’s take a look at some of the top signs you need to update your estate plan.
In the case of a spouse’s death the surviving person is usually very grateful to have their affairs in order so that there can be a hassle-free transition of assets. However, the death will require a complete review of the estate plan and the objectives it follows.
If a family is left with a single parent then that parents needs to review their estate plan and consider the assets given to children and how they will minimise superannuation taxes for death benefits as well as succession planning.
If someone gets a divorce then their existing will is revoked automatically. This means that that updates to the estate plan need to commence once the decision to separate has been reached.
Often divorce will require changes like writing a new will and changing nominations for superannuation benefits. People in this situation should not wait until they are officially divorced to begin making these arrangements.
Children grow up
When children are still at school age, estate planning involves making sure assets are available to continue their education after the death of a parent. These funds are securely held in an asset and tax protective manner.
When children get older the strategies used in the estate plan are less concerned with education and are tailored towards their own family relationships.
When children reach the age of 18 they become financially independent and any superannuation death benefits paid to them will be taxed. In this case the estate plan will need to be altered in order to minimise the amount that will be taxed from payments to financially independent children.
The decision to hand over control of a family business to a child needs careful planning along with an update of the estate plan. These plans should be executed around the same time and clearly communicated with family members in order to maintain harmony between successors.