Basic Law Knowledge

Basic Law Knowledge for LLB or Business Law student. 

Sources of Business Law in World wide.

n  Legislature

n  English Mercantile Law

n  The Statutory Law

n  Judicial Decision or Case Law

n  Customs and Usages

n  Commercial Law

    Sale of Goods Act, 1930

    The Commercial Documents Evidence Act, 1939
The Consumer Rights Protection Act, 2009
The Control of Essential Commodities Act, 1956 (East Pakistan Act)
The Essential Articles (Price Control and Anti-Hoarding) Act, 1953 (East Bengal Act)
The Essential Commodities Act, 1957 Act No Iii Of 1957
The Import Policy Order 2006-2009
The Import of Goods (Price Equalisation Surcharge) Act, 1967
The Imports and Exports (Control) Act, 1950
The Imports and Exports (Control), Act 1950
The Sale of Goods Act, 1930

n  Company Law

n  Draft Competition Act,2008
The Companies (Foreign Interests) Act, 1918
The Companies Act 1994
The Companies Act 1994
The Limitation Act, 1908
The Partnership Act, 1932
The Societies Registration Act 1860
The Trade Organization Ordinance, 1961

n  Tax Law

    Custom Act
The Amusements Tax Act, 1922
The Bangladesh Taxation Laws (Adaptation) Order, 1972 (President's Order)
The Business Profits Tax Act, 1947
The Customs Act, 1969
The Excess Profits Tax Act, 1940
The Excise (Malt Liquors) Act, 1890
The Excise Duty on Minerals (Labour Welfare) Act, 1967
The Excises and Salt Act, 1944
The Income-tax Ordinance, 1984
The Income-tax and Excess Profits Tax (Emergency) Ordinance, 1942
The Land Development Tax Ordinance, 1976
The Motor Vehicles Tax Act, 1932

n  Banking Law

n  Bangladesh Payment and Settlement Systems regulations 2009
Countervailing Rules for Bangladesh
General Financial Rules
Margin Rules, 1999
The Asian Development Bank Order, 1973 (President's Order)
The Bankers' Book Evidence Act, 1891
The Banks and Financial Institutions Laws Amendment Act, 1980
The Credit Rating Companies Rules, 1996
The Finance Act, 1981
The Financial Institutions Laws Amendment Ordinance, 1977
The Foreign Exchange Regulation Act, 1947
The Government Savings Banks Act, 1873
The Grameen Bank Ordinance, 1983
The Islamic Development Bank Act, 1975
The Micro-Credit regulatory Authorithy Act
The Money-Lenders Act, 1933
The Securities Act, 1920
The Securities and Exchange Ordinance, 1969
The Securities and Exchange Rules,1987

n  Insurance Law

n  The Insurance Act, 1938
The Insurance Corporations Act, 1973

n  The Law of Contract

n   The Contract Act-1872

n  Nature, object
of the Contract Act-1872

Commercial Transaction

Bilateral or Multilateral transaction

n  Definition

n  Agreement between two or more persons

n  Section: 2(h)

Ø  Agreement enforceable by law

Ø  Legal relationship

n  Agreement:

Ø  Every promise and set of promises

Ø  Forming consideration

n  Chapter 2

n  Salmond:

Ø  Agreement

Ø  Obligation

Ø  parties

n  William Anson

Ø  Agreement

Ø  Enforceable by law

Ø  Two or more persons

Ø  Rights acquired

n  Essentials Elements of Contract

n  Offer and Acceptance

n  Intention to create Legal relationship

n  Lawful consideration

n  Capacity of parties

n  Free consent

n  Legality of the object

n  Certainty

n  Possibility of performance

Void agreement

1. Restraint to marriage
2. Trade
3. Proceedings
4. Uncertain meaning
5. Wagering

n  Writing, registration and legal formalities. basic law knowledge

n  Kinds of Contracts

n  View of enforceability

Ø  Valid

Ø  Voidable

Ø  Void

Supervening impossibility

Subsequent illegality

Repudiation of a voidable contract

happening of an uncertain future event

n  Unenforceable contract

n  Illegal or unlawful contract

n  Mode of Creation

n  Express contract

n  Implied

n  Constructive or quasi contract

n  Extent of execution

n  Executed

n  Executory

n  Practical problems

n  Offer

n  Section -2(a)

Signifies willingness to another

To do or abstain from doing anything

With a view to obtaining the assent of that other to such act or abstinence

Example: 

n  Legal rules regarding valid offer

Ø  Offer may be express or implied

Illustration:

Ø  An offer must contemplate legal consequences and legal relationship

Ø  Term must be certain not vague

Illustration: 

n  Advertisement

n  Quotation

n  Catalogue

n  Price tag

n  Tender

n  Time table

n  Auction

n  Offer may be specific or general

n  An offer must be communicated to the offeree

n  Lalmam vs. Gauri Datt 1913

n  Non-compliance would not amount to acceptance

n  An offer can be made subject to terms and conditions

Illustration

n  Two identical cross offers do not make a contract

Illustration

n  Acceptance

n  Section 2(b)

Ø  When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted.

Ø  Acceptance is the manifestation by the offeree of his assent

n  Rules of Acceptance

n  Acceptance must be given only by the person to whom the offer is made

Ø  Cannot be accepted by another person without the consent of the offeror

Ø  Boulton vs. Joines 1857

q  Acceptance must be absolute and unqualified

Illustration

n  Acceptance must be expressed in some usual and reasonable manner

Ø  Express

Ø  Implied or tacit

q  Acceptance must be communicated by the acceptor

Powell vs. Lee 1908

n  Acceptance must be given within a reasonable time and before the offer lapses

n  Acceptance must succeed offer. basic law knowledge

n  Rejected offers can be accepted only, if renewed

GOOD MORNING EVERYONE

n  Discharge of Contract

n  By performance

n  By mutual consent

n  By subsequent impossibility

n  By operation of Law

n  By lapse of time

n  My material alteration

n  By breach

n  Termination by performance

n  Performance of promise

n  By all the parties

n  Not performance by the parties

n  Termination by mutual agreement

n  New agreement substitute old

Novation:

Ø  New contract is substitute for an existing contract

Alteration:

Remission

Ø  Acceptance of less than what was contracted for

Accord and satisfaction

Rescission

Ø  Cancellation of all or some of the terms or a contract

Waiver

Merger

n  Subsequent or supervening impossibility

Ø  Pre-contractual impossibility

      Impossible from the beginning of the contract

Ø  Post-contractual impossibility

ü  Destruction of an object

Taylor vs. Caldwell 1863

ü  Change of Law

ü  Failure of pre-conditions

ü  Death or incapacity for personal services

ü  Outbreak of war 

Exception

•         Difficulty of performance

•         Commercial impossibility

•         Strikes, lock-outs, civil disturbances and riots

•         Failure of one of the objects

n  Termination by operation of law

n  Death

n  Insolvency

n  Merger

n  Lapse of time

n  Termination by material alteration

n  Termination by breach of contract

Ø  Anticipatory breach of contract

ü  Party repudiates his liability

ü  Before the time for performance is due

ü  Party by his own act disables himself from performing

q  Actual breach of contract

Ø  One party fails or refuses to perform

Ø  By express or by writing or implied

THANK YOU

n  Remedies for breach of Contract

n  Rescission (75)

Ø  Sit quietly at home if no legal action is taken

Ø  Suit for rescission for damages

Ø  If rescission is grated the aggrieved part is freed from all his obligation

Ø  Get compensation

Ø  Illustration: 

n  Suit for damages:

Ø  Monetary compensation

Ø  Not punishment

Ø  Compensation will be given according to loss suffered

Ø  No loss no damages 

n  Suit upon quantum meruit

n  Partly performed

n  Aggrieved party can file suit for the price of services

n  Before breach

n  Specific performance

n  Specific Relief Act 1872

n  Injunction

n  Party prohibited from doing something by the court

n  Assessment of damages:

Ø  Naturally arose in the usual course of things

Ø  Not for remote or indirect loss

Ø  Damages after entering into the contract

Ø  The means which existed of remedying the inconvenience caused by the breach must also be taken into account.

n  Kinds of damages:

Ø  General or ordinary ( from the breach)

Ø  Special (by the parties)

Ø  Exemplary, punitive or vindictive

Ø  Nominal 

n  Summary of the rules regarding measure of damages. basic law knowledge

n  Damages for compensation not for punishment

n  Injured party placed in financially secured position

n  Recovery of actual loss only arising naturally

n  Remote damage not allowed until they are in the knowledge of both parties

n  Difficulty to assess doesn't prevent from recovering damages

n  Nominal damages awarded if no real loss arises

n  If advance damages fixed then actual damages will be given from there not exceeding amount

n  Exemplary damages cannot be awarded except breach of marriage contract or dishonor of  cheque

n  Injured party will minimize the damages awarded

n  Cost of decree by the defaulter party.

n  Indemnity and Guarantee

n  Section: 124

n  One party promises to save the other party from loss

n  Caused to him by the conduct of the promisor

n  Or by the conduct of other person

n  Party: Indemnifier (promisor)  and Indemnity-holder (promisee)

n  Characteristics of Indemnity

n  Part of the general class of contingent contract

n  All elements of a valid contract. basic law knowledge