Reduction of capital with the consent of the tribunal:
A company limited by shares or a company limited by guarentee and having a share capital may reduce its share capital, subject to confirmetion by the tribunal, in any of the following three ways:
1.it may extinguish or reduce the liability on any of its shares in respect of share capital not paid up.
2.it may ,either with or without extinguish or reducing liability on any way of its shares cancel paid up or unrespected for available of assets.
3.the pay off any paid up capital is in excess of the wants of a company.procedure for the reduction of share capital:
1.special resolution
power to reduction capital must be granted in the articles of association of a company. if the articles do not grant such power,they may be allerted by a special resolution giving such power.
2.application to the tribunal:
the company shall then applly to the tribunal by petition for an order conforming the reduction.
Sunday, September 13, 2009
Consent of the share tribunal.
Reduction of capital with the consent of the tribunal:
A company limited by shares or a company limited by guarentee and having a share capital may reduce its share capital, subject to confirmetion by the tribunal, in any of the following three ways:
A company limited by shares or a company limited by guarentee and having a share capital may reduce its share capital, subject to confirmetion by the tribunal, in any of the following three ways:
1.it may extinguish or reduce the liability on any of its shares in respect of share capital not paid up.
2.it may ,either with or without extinguish or reducing liability on any way of its shares cancel paid up or unrespected for available of assets.
3.the pay off any paid up capital is in excess of the wants of a company.procedure for the reduction of share capital:
1.special resolution
power to reduction capital must be granted in the articles of association of a company. if the articles do not grant such power,they may be allerted by a special resolution giving such power.
2.application to the tribunal:
the company shall then applly to the tribunal by petition for an order conforming the reduction.
Rights of shareholders.
Rights of group of persons:
The rights of the members of a company may be grouped under the following rights of three heads.
1.statutory rights:
These are the rights which are conferred on the members by the companies act. These rights cannot be taken away or modified by any provision in the memorandum or articles.
2.documentory rights:
These are the rights are given to the members by the memorandum and the articles of association.
3.legal rights:
These are the rights which are given to members by the genral law.
Un Liability of members.
The liability of the members of a company depands on the nature of the company.
Company with unlimited liability.
Each member is liable in full for all the debts contracted by the company during the period he was a member.
Company limited by shares:
Each members is liable to pay the full nominal value of the shares held by him. If he has already paid a part of the amount on the shares,his liability is limited to the unpaid amount on the shares in respect of which he is a member.
Company limited by gurantee:
Each member is liable to contribute the amount guaranteed by him to be paid in the event of the winding up of the company.
The rights of the members of a company may be grouped under the following rights of three heads.
1.statutory rights:
These are the rights which are conferred on the members by the companies act. These rights cannot be taken away or modified by any provision in the memorandum or articles.
2.documentory rights:
These are the rights are given to the members by the memorandum and the articles of association.
3.legal rights:
These are the rights which are given to members by the genral law.
Un Liability of members.
The liability of the members of a company depands on the nature of the company.
Company with unlimited liability.
Each member is liable in full for all the debts contracted by the company during the period he was a member.
Company limited by shares:
Each members is liable to pay the full nominal value of the shares held by him. If he has already paid a part of the amount on the shares,his liability is limited to the unpaid amount on the shares in respect of which he is a member.
Company limited by gurantee:
Each member is liable to contribute the amount guaranteed by him to be paid in the event of the winding up of the company.
Members qualifications.
How to became a member:
Any person who is comptent to contract( the Indian contract act, 1872) may became a member of a company. This is subject to the provisions of the memorandum and articles of a company.the articles may provide that certain persons cannot become members of the company.
Members qualification
A person may become a member of a company in the following ways
1.members by subscription
The subscribers to the memorandum of association of a company are deemed to have agreed to became its members.neither application nor allotment of shares is necessary.
2.membership by application and registration:
Apart from the subscribers of memorandum, every other person, who agrees in writing to become a member and whose name is entered in the register of members, is a member of the company
Registration of the name of a person as member of a company may result from any one of the following ways:
1.by application and allotment.
2.by transfe.
3.by succession.
4.agreement to be in writing.
3.membership by beneficial ownership:
Every person holding equity share capital of a company and whose name is entered as deemed to be a member of concerned company.
4.membership by qualification shares:
Before a person can be appointed a director of a public company, he must take, or sign an under taking to take and pay for the qualification shares.
Any person who is comptent to contract( the Indian contract act, 1872) may became a member of a company. This is subject to the provisions of the memorandum and articles of a company.the articles may provide that certain persons cannot become members of the company.
Members qualification
A person may become a member of a company in the following ways
1.members by subscription
The subscribers to the memorandum of association of a company are deemed to have agreed to became its members.neither application nor allotment of shares is necessary.
2.membership by application and registration:
Apart from the subscribers of memorandum, every other person, who agrees in writing to become a member and whose name is entered in the register of members, is a member of the company
Registration of the name of a person as member of a company may result from any one of the following ways:
1.by application and allotment.
2.by transfe.
3.by succession.
4.agreement to be in writing.
3.membership by beneficial ownership:
Every person holding equity share capital of a company and whose name is entered as deemed to be a member of concerned company.
4.membership by qualification shares:
Before a person can be appointed a director of a public company, he must take, or sign an under taking to take and pay for the qualification shares.
Kinds of market.
Security markets in used for stock exchange:
Securities market refers to both the place and the persons who deal with securities. It includes buyers and sellers of securities and agencies/ institutions which help in the buying and selling of securities of the government companies.
Securities market may include into two categories:
1.primary market.
2.secandary market.
Primary market is concerned with issue of new shares. Secandary market deals with resale of securities traded in primary market.
PRIMARY MARKET(new issues market):
‘Primary market’ denotes the market for new issues. It has no pysical existence. It is concerned with floatation and issues of new shares and debentures by new or existing companies.the shares are offered to the public.
Securities market refers to both the place and the persons who deal with securities. It includes buyers and sellers of securities and agencies/ institutions which help in the buying and selling of securities of the government companies.
Securities market may include into two categories:
1.primary market.
2.secandary market.
Primary market is concerned with issue of new shares. Secandary market deals with resale of securities traded in primary market.
PRIMARY MARKET(new issues market):
‘Primary market’ denotes the market for new issues. It has no pysical existence. It is concerned with floatation and issues of new shares and debentures by new or existing companies.the shares are offered to the public.
Types of new issues.
TYPES OF NEW ISSUES:
The company, which raises finance through new issues, may follow any of the follwing methods:
a)public issue.
b)offer for sale.
c)through intermediars
1.private placement.
2.sundry intermediars.
3.managing brokers.
d)underwritting.
e)rights issue.
PROCEDURE REGARDING PRIMARY MARKET
1.Issue of prospectus:
A company which intends to raise finance from the public through can new issues, must be familiar to them. The company should have gained public intrest.
2.Application:
When a company issues the prospectus, the investors/ public may apply for the shares offered by the company.these application forms may be obtained from the brokers, bankers or lead managers who assist the company in the issue of new shares.
3.Allotment of shares:
On closing the subscription list, the company allot shares to the applicants. After allotment of shares, the allottees become the shareholders of a company. The allotment should may by the company only when it has received ‘minimum subscription’.
4.Regret letter:
After the allotment of shares, the allotment letters or share certificates be sent to the allottees with in a reasonable time, say, two months from the date of subscription closing list.
The company, which raises finance through new issues, may follow any of the follwing methods:
a)public issue.
b)offer for sale.
c)through intermediars
1.private placement.
2.sundry intermediars.
3.managing brokers.
d)underwritting.
e)rights issue.
PROCEDURE REGARDING PRIMARY MARKET
1.Issue of prospectus:
A company which intends to raise finance from the public through can new issues, must be familiar to them. The company should have gained public intrest.
2.Application:
When a company issues the prospectus, the investors/ public may apply for the shares offered by the company.these application forms may be obtained from the brokers, bankers or lead managers who assist the company in the issue of new shares.
3.Allotment of shares:
On closing the subscription list, the company allot shares to the applicants. After allotment of shares, the allottees become the shareholders of a company. The allotment should may by the company only when it has received ‘minimum subscription’.
4.Regret letter:
After the allotment of shares, the allotment letters or share certificates be sent to the allottees with in a reasonable time, say, two months from the date of subscription closing list.
Secandary market.
SECONDARY MARKET:
The secondary market refers to the market where the securities issued in the primary market where the securities issued in the primary market are traded.the secandory market depands on the primary market.The secandary market includes 21 regional stock exchanges, the over the counter exchange of india (OTCEI) and national stock exchange of india.
SHARE MARKET
The word ‘stock’ means a fraction of the capital of a company and the word ‘exchange’ means a place for purchasing and selling something. Stock exchanges deal in securities like shares, debentures or bonds issued by the companies or corporations in the private as well as public sector and bonds issued by the central and state governments.
CHERACTERISTICS OF SHARE MARKET:
1.It is a place where securities are purchases and sold.
2.A stock exchange is a voluntary association of persons whether incorp business for orated or not.
3.Stock exchanges do not conduct business for themselves.they provided facilities to their members to transict in company securities.
4.the trading in astock exchanges is strictly regulated.rules and regulations are prescribed for various transactions.
5.Each stock exchange formulates its own rules and regulations. Any members who acts against the rules of the exchange can be removed from the membership.
6.Only members can transact in a stock exchange. Any person who has completed 18 years can become a member.
7.Both geniune investors and speculators can buy and sell shares in stock exchange.
The secondary market refers to the market where the securities issued in the primary market where the securities issued in the primary market are traded.the secandory market depands on the primary market.The secandary market includes 21 regional stock exchanges, the over the counter exchange of india (OTCEI) and national stock exchange of india.
SHARE MARKET
The word ‘stock’ means a fraction of the capital of a company and the word ‘exchange’ means a place for purchasing and selling something. Stock exchanges deal in securities like shares, debentures or bonds issued by the companies or corporations in the private as well as public sector and bonds issued by the central and state governments.
CHERACTERISTICS OF SHARE MARKET:
1.It is a place where securities are purchases and sold.
2.A stock exchange is a voluntary association of persons whether incorp business for orated or not.
3.Stock exchanges do not conduct business for themselves.they provided facilities to their members to transict in company securities.
4.the trading in astock exchanges is strictly regulated.rules and regulations are prescribed for various transactions.
5.Each stock exchange formulates its own rules and regulations. Any members who acts against the rules of the exchange can be removed from the membership.
6.Only members can transact in a stock exchange. Any person who has completed 18 years can become a member.
7.Both geniune investors and speculators can buy and sell shares in stock exchange.
Secandary market.
SECONDARY MARKET:
The secondary market refers to the market where the securities issued in the primary market where the securities issued in the primary market are traded.the secandory market depands on the primary market.The secandary market includes 21 regional stock exchanges, the over the counter exchange of india (OTCEI) and national stock exchange of india.
SHARE MARKET
The word ‘stock’ means a fraction of the capital of a company and the word ‘exchange’ means a place for purchasing and selling something. Stock exchanges deal in securities like shares, debentures or bonds issued by the companies or corporations in the private as well as public sector and bonds issued by the central and state governments.
The secondary market refers to the market where the securities issued in the primary market where the securities issued in the primary market are traded.the secandory market depands on the primary market.The secandary market includes 21 regional stock exchanges, the over the counter exchange of india (OTCEI) and national stock exchange of india.
SHARE MARKET
The word ‘stock’ means a fraction of the capital of a company and the word ‘exchange’ means a place for purchasing and selling something. Stock exchanges deal in securities like shares, debentures or bonds issued by the companies or corporations in the private as well as public sector and bonds issued by the central and state governments.
CHERACTERISTICS OF SHARE MARKET:
1.It is a place where securities are purchases and sold.
2.A stock exchange is a voluntary association of persons whether incorp business for orated or not.
3.Stock exchanges do not conduct business for themselves.they provided facilities to their members to transict in company securities.
4.the trading in astock exchanges is strictly regulated.rules and regulations are prescribed for various transactions.
5.Each stock exchange formulates its own rules and regulations. Any members who acts against the rules of the exchange can be removed from the membership.
6.Only members can transact in a stock exchange. Any person who has completed 18 years can become a member.
7.Both geniune investors and speculators can buy and sell shares in stock exchange.
Functions of share market
The functions performed bya stock exchanged are as followes:
1.ready market.
2.mobilisation of savings.
3.evaluation of securities.
4.capital formulation.
5.proper channalisation of capital
6.fair dealings.
7.control of corporate sector.
8.barometer of business progress.
CHERACTERSTICS :
To provide the development of andto regulate the securities market sebi undertakes the following functions.
1.Regulating the business in stock exchange.
2. Regestering and regulating the working stock brokers,sub brokers,issue bankers,and other intermediars.
3.Regestering and regulating to working of collective investment schemes including mutual funds.
4.Promoting and regulating self-regulatory organizations.
5.Prohibiting insider trading in securities.
6.Prohibiting fradulment and unfair trade practice relating to securities market.
7.Promoting investors education and training of intermediars of securities market.
8.Regulating substancial acquision take over of companies.
9.calling for informations from, undertaking inspection. Conducting inquires and audits of the stock exchanges.
10.Performing such functions as may be delegated to it by the central government.
1.ready market.
2.mobilisation of savings.
3.evaluation of securities.
4.capital formulation.
5.proper channalisation of capital
6.fair dealings.
7.control of corporate sector.
8.barometer of business progress.
CHERACTERSTICS :
To provide the development of andto regulate the securities market sebi undertakes the following functions.
1.Regulating the business in stock exchange.
2. Regestering and regulating the working stock brokers,sub brokers,issue bankers,and other intermediars.
3.Regestering and regulating to working of collective investment schemes including mutual funds.
4.Promoting and regulating self-regulatory organizations.
5.Prohibiting insider trading in securities.
6.Prohibiting fradulment and unfair trade practice relating to securities market.
7.Promoting investors education and training of intermediars of securities market.
8.Regulating substancial acquision take over of companies.
9.calling for informations from, undertaking inspection. Conducting inquires and audits of the stock exchanges.
10.Performing such functions as may be delegated to it by the central government.
Functions of share market
The functions performed bya stock exchanged are as followes:
1.ready market.
2.mobilisation of savings.
3.evaluation of securities.
4.capital formulation.
5.proper channalisation of capital
6.fair dealings.
7.control of corporate sector.
8.barometer of business progress.
CHERACTERSTICS :
To provide the development of andto regulate the securities market sebi undertakes the following functions.
To provide the development of andto regulate the securities market sebi undertakes the following functions.
1.Regulating the business in stock exchange.
2. Regestering and regulating the working stock brokers,sub brokers,issue bankers,and other intermediars.
3.Regestering and regulating to working of collective investment schemes including mutual funds.
4.Promoting and regulating self-regulatory organizations.
5.Prohibiting insider trading in securities.
6.Prohibiting fradulment and unfair trade practice relating to securities market.
7.Promoting investors education and training of intermediars of securities market.
8.Regulating substancial acquision take over of companies.
9.calling for informations from, undertaking inspection. Conducting inquires and audits of the stock exchanges.
10.Performing such functions as may be delegated to it by the central government.
4.paid up capital:
This is a part of the issued capital which has been paid up by the share holders or which is credited as paid up on the shares.
5.uncalled sahares:
This is the remainder of the issued capital which has not been called. the company may call this amount any time but this is subject to the terms of issues of shares and the provisions of the articles.
6.Reserve capital:
This is that part of the uncalled capital of a company which can be called only in the event of its winding up, a limited company may, by a special resolution, determine that the portion of its uncalled capital shell not be called. inn the event of and the purpose of the company winding un and such capital is known as reserve capital.
WHAT IS SHARE CAPITAL?
Share capital means the capital raised by a company by the issue of shares. the word "capital" in connection with a company is used in several senses:
1.authorised capital.
2.issued capital.
3.paid up capital.
4.reserve capital.
1.authorised capital:
This is a nominal value of the shares which a company is authorised to issue by its memorandum of association.
2.issued capital:
This type of capital nominal value of the shares which is the offered to the public for subcription. a company does not normally issue all its capital at once, so that issued capital in such a case is less then the issued capital.
3.Called up capital:
That part of the capital of issued which has been called up on the shares.
This is a part of the issued capital which has been paid up by the share holders or which is credited as paid up on the shares.
5.uncalled sahares:
This is the remainder of the issued capital which has not been called. the company may call this amount any time but this is subject to the terms of issues of shares and the provisions of the articles.
6.Reserve capital:
This is that part of the uncalled capital of a company which can be called only in the event of its winding up, a limited company may, by a special resolution, determine that the portion of its uncalled capital shell not be called. inn the event of and the purpose of the company winding un and such capital is known as reserve capital.
WHAT IS SHARE CAPITAL?
Share capital means the capital raised by a company by the issue of shares. the word "capital" in connection with a company is used in several senses:
1.authorised capital.
2.issued capital.
3.paid up capital.
4.reserve capital.
1.authorised capital:
This is a nominal value of the shares which a company is authorised to issue by its memorandum of association.
2.issued capital:
This type of capital nominal value of the shares which is the offered to the public for subcription. a company does not normally issue all its capital at once, so that issued capital in such a case is less then the issued capital.
3.Called up capital:
That part of the capital of issued which has been called up on the shares.
Forfieted for shares.
If a shareholder, having been called upon to pay any call on his shares falls to pay the call, company has two remedies against the shareholder,viz.,
1.it may sue him for some amount due.
2.it may forfeit his shares.
forfieture means depriving a person of his property as a penolty for some act of omision.
the company may forfiet the shares of a shareholder for non-payment of some call/calls if the following conditions are satisfied.:
1.in accordence with articles.
2.notice prior to forfieture.
3.resolution of the board.
4.good faith.
1.it may sue him for some amount due.
2.it may forfeit his shares.
forfieture means depriving a person of his property as a penolty for some act of omision.
the company may forfiet the shares of a shareholder for non-payment of some call/calls if the following conditions are satisfied.:
1.in accordence with articles.
2.notice prior to forfieture.
3.resolution of the board.
4.good faith.
Issue of capital rights.
issue of capital of a company may take place
1.By allotment of new shares(known as rights shares).
2.by conversion of debentures or loans into shares.
1.A shares has a nominal value, whereas stock has no nominal value.
2.Stock is always flly paid-up, while shares may not be so.
3.stock is transferable in small function while shares can only be transferable in round members.
4.All shares are equal denomintion. stock may be of unequal amounts.
5.The frections or parts of stock do not bear any distinctive numbers while shares always bear distinctive numbers.
6.Shares can be directly issued to the public whereas stock cannot be issued directly. only fully paid up shares can be converted into stock.
Publication of capital:
where any notice,advertisement,or other official publication,or any business letter, bill-head or letter paper, of a company contains a statement of the amount of thje authorised capital of the company, such document shall also contain a statement of the subscribed and the paid up capital.
Reduction of share capital:
The law regards the capital of a company as something sacred the general principal of law founted on principals of public policy and rigidity enforced by tribunal is that no action resulting in a reduction of capital of a company should be permited unless the reduction is efforted.
1.By allotment of new shares(known as rights shares).
2.by conversion of debentures or loans into shares.
1.A shares has a nominal value, whereas stock has no nominal value.
2.Stock is always flly paid-up, while shares may not be so.
3.stock is transferable in small function while shares can only be transferable in round members.
4.All shares are equal denomintion. stock may be of unequal amounts.
5.The frections or parts of stock do not bear any distinctive numbers while shares always bear distinctive numbers.
6.Shares can be directly issued to the public whereas stock cannot be issued directly. only fully paid up shares can be converted into stock.
Publication of capital:
where any notice,advertisement,or other official publication,or any business letter, bill-head or letter paper, of a company contains a statement of the amount of thje authorised capital of the company, such document shall also contain a statement of the subscribed and the paid up capital.
Reduction of share capital:
The law regards the capital of a company as something sacred the general principal of law founted on principals of public policy and rigidity enforced by tribunal is that no action resulting in a reduction of capital of a company should be permited unless the reduction is efforted.
Thursday, September 10, 2009
The price.
The price:
The price in a contract of sale means the money consideration for sale of goods it forms an essentials part of the contract.it must be expressed in money. It must be the considerations for the transfer or it is agreement to transfer the property in goods from the seller to the buyer. It is not essentials that the price should be fixed at the time of sale. It must, however, be payable, though it may not haven fixed.
Ascertain price:
Price in a contract of sale may be fixed by the contract itself. Or left to be fixed in an agreed manner, or determined by the course of dealing between the parties.
Agreement to sell at valuation:
The parties may agreed to sell and buy goods on the terms that prices is to be fixed by the valuation of the third party. If such third party cannot be or does not make such valuation, the agreement becomes void.
Earnest:
Quite often in a contract of sale the buyer may give some tangible thing as a token of goods faith as a guarantee or security for the due performance of the contract. This returned or is in the form of money it is adjusted against the purchase price.
The price in a contract of sale means the money consideration for sale of goods it forms an essentials part of the contract.it must be expressed in money. It must be the considerations for the transfer or it is agreement to transfer the property in goods from the seller to the buyer. It is not essentials that the price should be fixed at the time of sale. It must, however, be payable, though it may not haven fixed.
Ascertain price:
Price in a contract of sale may be fixed by the contract itself. Or left to be fixed in an agreed manner, or determined by the course of dealing between the parties.
Agreement to sell at valuation:
The parties may agreed to sell and buy goods on the terms that prices is to be fixed by the valuation of the third party. If such third party cannot be or does not make such valuation, the agreement becomes void.
Earnest:
Quite often in a contract of sale the buyer may give some tangible thing as a token of goods faith as a guarantee or security for the due performance of the contract. This returned or is in the form of money it is adjusted against the purchase price.
Document of title in conditions.
Document of title in conditions:
Further transfer such right to another person. This may be done by mere delivery or by proper endorsement and delivery.
Conditions to be fulfilled by a document of title to goods.
1.it must be used in the document in the ordinary business.
2.the undertaking to delivered the goods to the possessor of the document must be unconditional.
3.the possessor of the document, by virtue of holding such document, must be unconditionally.
Some instands of documents of title to goods are given:
1.bill of lading:
It is a document which acknowledge receipt of goods on board a ship and is sighned by captain.
2.dock warrant:
It is a document by a dock owner, giving details of the goods and clarifying that the goods are held to the order of the goods.
3.railway receipt:
It is a document issued by a railway company acknowledging receipt of goods. It is to be presented by the holder or the goods.
4.delivery order:
It is a document containing an order by the owner of the goods to the holder of the goods on his order.
Further transfer such right to another person. This may be done by mere delivery or by proper endorsement and delivery.
Conditions to be fulfilled by a document of title to goods.
1.it must be used in the document in the ordinary business.
2.the undertaking to delivered the goods to the possessor of the document must be unconditional.
3.the possessor of the document, by virtue of holding such document, must be unconditionally.
Some instands of documents of title to goods are given:
1.bill of lading:
It is a document which acknowledge receipt of goods on board a ship and is sighned by captain.
2.dock warrant:
It is a document by a dock owner, giving details of the goods and clarifying that the goods are held to the order of the goods.
3.railway receipt:
It is a document issued by a railway company acknowledging receipt of goods. It is to be presented by the holder or the goods.
4.delivery order:
It is a document containing an order by the owner of the goods to the holder of the goods on his order.
Effect of distruction of goods.
Effect of distruction of goods:
1.goods perishing before making of contract:
He sale ofspecific goods is void if the time when the contract was made the good have, without the knowledge of the seller, perishied.the same would be the case where the goods became so damaged as no longer to the ground.
2.goods perishing after the agreement to sell but before the sale is effected:
An agreement to sell but before the sale is effected becomes void if subsequently the goods, without any fault on the part of the seller or buyer, perish or become so damaged as no longer to answer to their description in the in the agreement before the risk passes to the buyer.
Document of title to goods:
A document of title to goods is one which enables its possessor to deal with the goods described in it as if he were the owner. It is used in the ordinary course of business as proof of the possession or control of goods.
1.goods perishing before making of contract:
He sale ofspecific goods is void if the time when the contract was made the good have, without the knowledge of the seller, perishied.the same would be the case where the goods became so damaged as no longer to the ground.
2.goods perishing after the agreement to sell but before the sale is effected:
An agreement to sell but before the sale is effected becomes void if subsequently the goods, without any fault on the part of the seller or buyer, perish or become so damaged as no longer to answer to their description in the in the agreement before the risk passes to the buyer.
Document of title to goods:
A document of title to goods is one which enables its possessor to deal with the goods described in it as if he were the owner. It is used in the ordinary course of business as proof of the possession or control of goods.
Classification of goods.
Classification of goods:
The goods which from the subject of a contract of sale may be either existing goods, or future goods or contigent goods.
1.existing goods:
These are the goods which are owned or possessed by the seller at the time of sale.only existing goods can be the subject of a sale.
1.specific goods.
2.ascertained goods.
3.unascertained or genric goods.
2.future goods:
These are the goods which a seller does not posses at the time of the contract but which will be manufactured or producted or acquired by him after the making of the contract sale.
3.contigent goods:
Though a type of future goods, these are the goods the acquisition of which by the seller depands upon a contegency which may not happen.
The goods which from the subject of a contract of sale may be either existing goods, or future goods or contigent goods.
1.existing goods:
These are the goods which are owned or possessed by the seller at the time of sale.only existing goods can be the subject of a sale.
1.specific goods.
2.ascertained goods.
3.unascertained or genric goods.
2.future goods:
These are the goods which a seller does not posses at the time of the contract but which will be manufactured or producted or acquired by him after the making of the contract sale.
3.contigent goods:
Though a type of future goods, these are the goods the acquisition of which by the seller depands upon a contegency which may not happen.
Sale and barter exchange.
Sale and barter or exchange:
Were the property in goods is transferred from the seller to the buyer for a price, it is called a sale. Where goods are exchanged for goods, the transfer is called a barter and not sale. Bs put if the consideration for transfer of property in goods consistly of goods and sale.
Sale and bailment:
In a sale , the property in goods is transferred from the seller to the buyer.in a bailment, there is only transfer of possession from the ballor to the ballee.
Sale and contract for work and materials:
The sale of goods applies to a contract of sale and not to a contract for work and materials. A contract of sale contemplets the delivery of goods whereas a contract for work by another.
Subject-matter of contract of sale:
Goods from the subject-matter of a contract sale. Goods means every kind of movable party other than actionable claims and money; and includes stocks and shares, growing crops, grass and things attached to or under the contract sale.
Were the property in goods is transferred from the seller to the buyer for a price, it is called a sale. Where goods are exchanged for goods, the transfer is called a barter and not sale. Bs put if the consideration for transfer of property in goods consistly of goods and sale.
Sale and bailment:
In a sale , the property in goods is transferred from the seller to the buyer.in a bailment, there is only transfer of possession from the ballor to the ballee.
Sale and contract for work and materials:
The sale of goods applies to a contract of sale and not to a contract for work and materials. A contract of sale contemplets the delivery of goods whereas a contract for work by another.
Subject-matter of contract of sale:
Goods from the subject-matter of a contract sale. Goods means every kind of movable party other than actionable claims and money; and includes stocks and shares, growing crops, grass and things attached to or under the contract sale.
Sale and hire agreement.
A hire purchase agreement is a contract where by the owner of the goods lets them on hire to another person calle hirer or hire purchaser on payment of rent to be paid in instalment and upon an agreement that when a certain number of such paid.
Whether an agreement is a hire-purchase agreement or a contract of sale the test would be whether or not any option has been given to the hirer to terminate the contract.
Difference between a sale and a hire-purchase agreement:
Sale:
1.ownership is transferred from the seller to the buyer into.
2.the position of the buyer is that of the owner.
3.the buyer cannot terminate the contract and such as is bound to pay the price of the goods.
4.if the payment is made by the buyer in instalments, the amount payable by the goods.
Hire-purchase:
1.ownership is transferred from the seller to the hire-purchase only when a certain agreed paid.
2.the position of the hire-purchase is that of the ballee.
3.the hire-purchser has an option to terminate the goods the further instalments.
4.the instalment paid by the hire-purchaser are registered as hire charge and not as payment towords the price of the goods till excercised.
Whether an agreement is a hire-purchase agreement or a contract of sale the test would be whether or not any option has been given to the hirer to terminate the contract.
Difference between a sale and a hire-purchase agreement:
Sale:
1.ownership is transferred from the seller to the buyer into.
2.the position of the buyer is that of the owner.
3.the buyer cannot terminate the contract and such as is bound to pay the price of the goods.
4.if the payment is made by the buyer in instalments, the amount payable by the goods.
Hire-purchase:
1.ownership is transferred from the seller to the hire-purchase only when a certain agreed paid.
2.the position of the hire-purchase is that of the ballee.
3.the hire-purchser has an option to terminate the goods the further instalments.
4.the instalment paid by the hire-purchaser are registered as hire charge and not as payment towords the price of the goods till excercised.
Contract of re sell.
The seller cannot re-sell the goods.
the original buyer can only sue the seller for damages.
particular party:
A sale is a contract plus conveyance, and creats to the buyer to enjoy the goods as against the word at large including the Contract of sale how made:
No particular form is necessary constitute a contract sale. It is, like any other contract, made by the ordinary method of offer by one party and the acceptance by the party in others.
The contract of sale may provided for the immediate delivery of the goods, or immediate payment of the price both, or for the delivery or payment by instalments or that the delivery or payment or both shall be postpond.
Sale and agreement to sell- distinction:
1.transfer of property:
In a sale, the property in the goods passes from the seller to the buyer right to re-sell:
2.type of goods:
A sale can be only one be in case of existing and specific goods only.
3.risk of loss:
If the sale and goods are destroyed the losses falls on the buyer even though the goods are destroyed.
4.seller to sue for damages:
immediately so that the seller is no more than owner of the goods sold.
the original buyer can only sue the seller for damages.
particular party:
A sale is a contract plus conveyance, and creats to the buyer to enjoy the goods as against the word at large including the Contract of sale how made:
No particular form is necessary constitute a contract sale. It is, like any other contract, made by the ordinary method of offer by one party and the acceptance by the party in others.
The contract of sale may provided for the immediate delivery of the goods, or immediate payment of the price both, or for the delivery or payment by instalments or that the delivery or payment or both shall be postpond.
Sale and agreement to sell- distinction:
1.transfer of property:
In a sale, the property in the goods passes from the seller to the buyer right to re-sell:
2.type of goods:
A sale can be only one be in case of existing and specific goods only.
3.risk of loss:
If the sale and goods are destroyed the losses falls on the buyer even though the goods are destroyed.
4.seller to sue for damages:
immediately so that the seller is no more than owner of the goods sold.
Sale and agreement to sell.
Sale and agreement to sell:
Where under a contract of sale, the property in the goods is transferred from the seller to the buyer, the contract is called a sale but were the transferred of the property in the goods is to take place at a future time or subject to some conditions there fulfilled.
Transfer of property in goods for a price is the principles of the definition of contract of sale.
Essentials of a contract of sale:
The following essentials elements are necessary fr a contract of sale:
1.two parties:
There must be two distinct parties, a buyer and seller, to effect a contract of sale and they must be competent contract.
2.goods:
There must be some goods the property in which is or is to be transferred from the seller to the buyer. The goods which from the subject –matter of the contract of sale must be movable.
3.price:
The considering for the contract of sale, called price, must be money.
4.essentials elements of a valid contract:
All the essentials elements of a valid contract must be present in the contract of sale.
Where under a contract of sale, the property in the goods is transferred from the seller to the buyer, the contract is called a sale but were the transferred of the property in the goods is to take place at a future time or subject to some conditions there fulfilled.
Transfer of property in goods for a price is the principles of the definition of contract of sale.
Essentials of a contract of sale:
The following essentials elements are necessary fr a contract of sale:
1.two parties:
There must be two distinct parties, a buyer and seller, to effect a contract of sale and they must be competent contract.
2.goods:
There must be some goods the property in which is or is to be transferred from the seller to the buyer. The goods which from the subject –matter of the contract of sale must be movable.
3.price:
The considering for the contract of sale, called price, must be money.
4.essentials elements of a valid contract:
All the essentials elements of a valid contract must be present in the contract of sale.
Sale of goods.
Sale of goods:
The sale of goods is the most common of all comercial contacto all knowledge of its main purpose is to ulmost importance to all classes of the community.
Contracts for the sale of goods are subject to the genral legal principal applicable to all contracts, such as offer and its acceptance, the capacity of the parties, free and real consent, consideration, and legality of the object.
The expressions used to but not defined in the sale of goods and difiend in the contract act have the meanings assighned to them in the contract.
Formation of contract of sale:
Contract of sale of goods:
A contract of sale of goods is a contract where by the seller transfer or agrees to transfer the property in goods to the buyer for price. There may be a contract of sale between one part owner and another contract of sale may be about conditional.
The term contract sale is a genric term and includes both a sale and an agreement to sell.
The sale of goods is the most common of all comercial contacto all knowledge of its main purpose is to ulmost importance to all classes of the community.
Contracts for the sale of goods are subject to the genral legal principal applicable to all contracts, such as offer and its acceptance, the capacity of the parties, free and real consent, consideration, and legality of the object.
The expressions used to but not defined in the sale of goods and difiend in the contract act have the meanings assighned to them in the contract.
Formation of contract of sale:
Contract of sale of goods:
A contract of sale of goods is a contract where by the seller transfer or agrees to transfer the property in goods to the buyer for price. There may be a contract of sale between one part owner and another contract of sale may be about conditional.
The term contract sale is a genric term and includes both a sale and an agreement to sell.
Caveat empter.
Caveat emptor:
This means let the buyer beware, in a contract of sale of goods the seller is under no duty to reveal unflating truths about the goods sold.therefore, when a person buyes some goods, he must examine them thoroughly, if the goods term out to be defective or do not suit his purpose or if he depends upon his own skill or judgement and makes a bad selection.
Exceptions:
The doctrine of coveat emptor his certain importance exceptions. The case law on these exceptions has already been discoused.
The exceptions are however briefly referred to-
1.fitness for buyers purpose:
Where the buyers, expressly or by implication, makes known to the seller the particular purpose for which he requires the goods and relies on the sellers skill or judgement and the goods are of a description which it is in the course of business.
2.sale under a patent or trade name:
In the case of a contract for the sale of a specified article under its patent or other trade name, there is no implied condition that implied contract.
3.merchantable quality:
Where the goods are bought by the description from a seller who deals in goods of that description there is an implied condition that the goods shall be of marchantile quality.
This means let the buyer beware, in a contract of sale of goods the seller is under no duty to reveal unflating truths about the goods sold.therefore, when a person buyes some goods, he must examine them thoroughly, if the goods term out to be defective or do not suit his purpose or if he depends upon his own skill or judgement and makes a bad selection.
Exceptions:
The doctrine of coveat emptor his certain importance exceptions. The case law on these exceptions has already been discoused.
The exceptions are however briefly referred to-
1.fitness for buyers purpose:
Where the buyers, expressly or by implication, makes known to the seller the particular purpose for which he requires the goods and relies on the sellers skill or judgement and the goods are of a description which it is in the course of business.
2.sale under a patent or trade name:
In the case of a contract for the sale of a specified article under its patent or other trade name, there is no implied condition that implied contract.
3.merchantable quality:
Where the goods are bought by the description from a seller who deals in goods of that description there is an implied condition that the goods shall be of marchantile quality.
Wednesday, September 9, 2009
Iimplied warrenties.
Implied warrenties:
The implied warrenties ina contract of sale are as followes:
1.warrenty of qiuet possession:
In a contract of sale unless there is a contrary intention, there is an implied warrenty that the buyer shall have and enjoy quiet possession of the goods.
2.warrenty of freedom from encumbrances:
In addition to the previous warrenty, the buyer is entitled to a further warrenty that the goods are not subject to any charge or right in favour of the third party.
3.warrenty ro disclouse dangerous nature of goods:
Where a person sells goods knowing that the goods are inherently dangerous or they are likely to be dangerous to the buyer and that the buyer is ignorant of the liable of a damages.
Implied conditions and warrenties in a contract of sale may be negative or varied by
a. Express agreement between the parties.
b. The course of dealing.
c. The custom or usage of trade.
The implied warrenties ina contract of sale are as followes:
1.warrenty of qiuet possession:
In a contract of sale unless there is a contrary intention, there is an implied warrenty that the buyer shall have and enjoy quiet possession of the goods.
2.warrenty of freedom from encumbrances:
In addition to the previous warrenty, the buyer is entitled to a further warrenty that the goods are not subject to any charge or right in favour of the third party.
3.warrenty ro disclouse dangerous nature of goods:
Where a person sells goods knowing that the goods are inherently dangerous or they are likely to be dangerous to the buyer and that the buyer is ignorant of the liable of a damages.
Implied conditions and warrenties in a contract of sale may be negative or varied by
a. Express agreement between the parties.
b. The course of dealing.
c. The custom or usage of trade.
Implied conditions and warrenties.
Implied conditions and warrenties:
1.conditions as to quality or fitness:
Normally in a contract of sale there is no implied conditions as to quality or fitness of the goods for a particular purpose.the buyer must examine the goods throghly before he buys them in order to satisfy himself that the goods pupose.
Condition as to merchantability:
Where goods are bought by description from the seller who deals in goods of that description there is an implied condition that the goods are to be merchantile quality.
Condition implied by custom:
An implied condition as to quality or fitness for a particular purpose may be annexed by the usage of trade.
Sale by sample:
A contract of sale is a contract for sale by sample where there is a trem in a contract, express or implied, to that effect condition-
Condition as to wholesomeness:
In the case of eatables and provisions, in addition to the implied condition as to merchantability, there is another implied condition that the goods shall be wholesome.
1.conditions as to quality or fitness:
Normally in a contract of sale there is no implied conditions as to quality or fitness of the goods for a particular purpose.the buyer must examine the goods throghly before he buys them in order to satisfy himself that the goods pupose.
Condition as to merchantability:
Where goods are bought by description from the seller who deals in goods of that description there is an implied condition that the goods are to be merchantile quality.
Condition implied by custom:
An implied condition as to quality or fitness for a particular purpose may be annexed by the usage of trade.
Sale by sample:
A contract of sale is a contract for sale by sample where there is a trem in a contract, express or implied, to that effect condition-
Condition as to wholesomeness:
In the case of eatables and provisions, in addition to the implied condition as to merchantability, there is another implied condition that the goods shall be wholesome.
Express and implied conditions and warrenties.
Express and implied conditions and warrenties:
In a contract of sale of goods conditions and warrenties may be express or impied. Express conditions and warrenties are those which are expressly provided in the contract.
Implied conditions:
1.conditions as to title:
In a contract of sale, unless the circumstances of the contract are such as to show a different intension there is an implied condition the seller that-
a.in the case of a sale, he has a right to sell the goods and
b.in the case of an agreement to sell, he will have a right to sell the goods at the time when the property is to pass.
2.sale by description:
Where there is a contract for the sale of goods by description, there is an implied conditions that the goods shall correspond with the description. The rule of law contained in the party to take beans.
In a contract of sale of goods conditions and warrenties may be express or impied. Express conditions and warrenties are those which are expressly provided in the contract.
Implied conditions:
1.conditions as to title:
In a contract of sale, unless the circumstances of the contract are such as to show a different intension there is an implied condition the seller that-
a.in the case of a sale, he has a right to sell the goods and
b.in the case of an agreement to sell, he will have a right to sell the goods at the time when the property is to pass.
2.sale by description:
Where there is a contract for the sale of goods by description, there is an implied conditions that the goods shall correspond with the description. The rule of law contained in the party to take beans.
Express and implied conditions and warrenties.
Express and implied conditions and warrenties:
In a contract of sale of goods conditions and warrenties may be express or impied. Express conditions and warrenties are those which are expressly provided in the contract.
Implied conditions:
1.conditions as to title:
In a contract of sale, unless the circumstances of the contract are such as to show a different intension there is an implied condition the seller that-
a.in the case of a sale, he has a right to sell the goods and
b.in the case of an agreement to sell, he will have a right to sell the goods at the time when the property is to pass.
2.sale by description:
Where there is a contract for the sale of goods by description, there is an implied conditions that the goods shall correspond with the description. The rule of law contained in the party to take beans.
In a contract of sale of goods conditions and warrenties may be express or impied. Express conditions and warrenties are those which are expressly provided in the contract.
Implied conditions:
1.conditions as to title:
In a contract of sale, unless the circumstances of the contract are such as to show a different intension there is an implied condition the seller that-
a.in the case of a sale, he has a right to sell the goods and
b.in the case of an agreement to sell, he will have a right to sell the goods at the time when the property is to pass.
2.sale by description:
Where there is a contract for the sale of goods by description, there is an implied conditions that the goods shall correspond with the description. The rule of law contained in the party to take beans.
Conditions and warrenties.
Conditions and warrenties:
Before a contract of sale is entered into, a seller frequently makes representatives or statements with reference to the goods which influence the buyer to clinch the bargain. Such representation or statements differ in cherecter and importance. Whether any statement or stipulation forming part of the contract or is a mere representation of the contract.
A stipulation in a contract of sale with reference to goods which are the subject thereof may be a condition or a warrenty.
Condition:
A condition is a stipulation which is essential there cace main pupose of the contract of such vital importance as aroot of the contract. Its non-fulfillment upsets the very basis of the contract.
Warrenty:
A warrenty is a stipulation which is collateral to the main purpose of the contract. It is not such vital importance as a condition is. The agreegated in party only damaged and it has no-right to treat the contract as reputed.
Before a contract of sale is entered into, a seller frequently makes representatives or statements with reference to the goods which influence the buyer to clinch the bargain. Such representation or statements differ in cherecter and importance. Whether any statement or stipulation forming part of the contract or is a mere representation of the contract.
A stipulation in a contract of sale with reference to goods which are the subject thereof may be a condition or a warrenty.
Condition:
A condition is a stipulation which is essential there cace main pupose of the contract of such vital importance as aroot of the contract. Its non-fulfillment upsets the very basis of the contract.
Warrenty:
A warrenty is a stipulation which is collateral to the main purpose of the contract. It is not such vital importance as a condition is. The agreegated in party only damaged and it has no-right to treat the contract as reputed.
Difference between a condition and warrenties.
Difference between a condition and warrenty:
1.diiference as to value:
A condition is a stipulation which is essentials to the main purpose of the main of the contract.a warrenty is a stipulation which is main contract.
2.diiference as to breach:
If there is a breach of a contract the aggrieved party can reputed the contract of sale; in case of a breach a warrenty.
3.difference as to treatment:
A breach of a condition may be treated as a breach of contract this would happen where the aggrieved party is contented with damages only.
When condition to be treated as warrenty:
1.voluentary waiver of condition:
Where a contract of sale is subject to any condition to be fulfilled by the seller, the buyer may insiston its fulfillment.
2.acceptence of goods by buyer:
Where a contract of a sale is not severable and the buyer has a acceptedthe goods or part there, the breach of any condition to be fulfilled by the seller can implied.
1.diiference as to value:
A condition is a stipulation which is essentials to the main purpose of the main of the contract.a warrenty is a stipulation which is main contract.
2.diiference as to breach:
If there is a breach of a contract the aggrieved party can reputed the contract of sale; in case of a breach a warrenty.
3.difference as to treatment:
A breach of a condition may be treated as a breach of contract this would happen where the aggrieved party is contented with damages only.
When condition to be treated as warrenty:
1.voluentary waiver of condition:
Where a contract of sale is subject to any condition to be fulfilled by the seller, the buyer may insiston its fulfillment.
2.acceptence of goods by buyer:
Where a contract of a sale is not severable and the buyer has a acceptedthe goods or part there, the breach of any condition to be fulfilled by the seller can implied.
Tuesday, September 8, 2009
Sale by non-owners.
Sale by non-owners:
The general rule of law is that “no one can give that which one has not got”. This is expressed in latin maxim “nemo dat qut non habet”.
Exceptions:
1.sale by a person not the owner or title by estoppels.where the owner by his contract or by an act or omission.
2.sale by a mercantile agent: a mercantile agent is one who, in the customary course of his business, has, as such agent authority either to sell goods.
3.sale by one of several joint owners: if one of the several joint owners who is in sole profession under a voidable contract.
4.sale by a-person in possession under a voidable contract: when the seller a goods has obtained their possession under the other co-owners sells the goods.
5.sale by seller in possession after sale: where the seller having sold the consent of the seller, possession of the goods or documents.
6..sale by an unpaid seller: where an unpaid seller who has excercised his right of lien or stoppage in transit re-sults the goods, the buyer acqiuers a good title the original buyer.goods, continues to be in possession of the goods or of the documents of title to the goods and sells them either himself or through a mercantile agent.
7..sale by buyer in possession after having bought or agreed to buy goods: where a person, having bought or agreed to buy goods, obtained with
The general rule of law is that “no one can give that which one has not got”. This is expressed in latin maxim “nemo dat qut non habet”.
Exceptions:
1.sale by a person not the owner or title by estoppels.where the owner by his contract or by an act or omission.
2.sale by a mercantile agent: a mercantile agent is one who, in the customary course of his business, has, as such agent authority either to sell goods.
3.sale by one of several joint owners: if one of the several joint owners who is in sole profession under a voidable contract.
4.sale by a-person in possession under a voidable contract: when the seller a goods has obtained their possession under the other co-owners sells the goods.
5.sale by seller in possession after sale: where the seller having sold the consent of the seller, possession of the goods or documents.
6..sale by an unpaid seller: where an unpaid seller who has excercised his right of lien or stoppage in transit re-sults the goods, the buyer acqiuers a good title the original buyer.goods, continues to be in possession of the goods or of the documents of title to the goods and sells them either himself or through a mercantile agent.
7..sale by buyer in possession after having bought or agreed to buy goods: where a person, having bought or agreed to buy goods, obtained with
Sale by non-owners.
Sale by non-owners:
The general rule of law is that “no one can give that which one has not got”. This is expressed in latin maxim “nemo dat qut non habet”.
Exceptions:
1.sale by a person not the owner or title by estoppels.where the owner by his contract or by an act or omission.
2.sale by a mercantile agent: a mercantile agent is one who, in the customary course of his business, has, as such agent authority either to sell goods.
3.sale by one of several joint owners: if one of the several joint owners who is in sole profession under a voidable contract.
4.sale by a-person in possession under a voidable contract: when the seller a goods has obtained their possession under the other co-owners sells the goods.
5.sale by seller in possession after sale: where the seller having sold the consent of the seller, possession of the goods or documents.
6..sale by an unpaid seller: where an unpaid seller who has excercised his right of lien or stoppage in transit re-sults the goods, the buyer acqiuers a good title the original buyer.goods, continues to be in possession of the goods or of the documents of title to the goods and sells them either himself or through a mercantile agent.
7..sale by buyer in possession after having bought or agreed to buy goods: where a person, having bought or agreed to buy goods, obtained with
The general rule of law is that “no one can give that which one has not got”. This is expressed in latin maxim “nemo dat qut non habet”.
Exceptions:
1.sale by a person not the owner or title by estoppels.where the owner by his contract or by an act or omission.
2.sale by a mercantile agent: a mercantile agent is one who, in the customary course of his business, has, as such agent authority either to sell goods.
3.sale by one of several joint owners: if one of the several joint owners who is in sole profession under a voidable contract.
4.sale by a-person in possession under a voidable contract: when the seller a goods has obtained their possession under the other co-owners sells the goods.
5.sale by seller in possession after sale: where the seller having sold the consent of the seller, possession of the goods or documents.
6..sale by an unpaid seller: where an unpaid seller who has excercised his right of lien or stoppage in transit re-sults the goods, the buyer acqiuers a good title the original buyer.goods, continues to be in possession of the goods or of the documents of title to the goods and sells them either himself or through a mercantile agent.
7..sale by buyer in possession after having bought or agreed to buy goods: where a person, having bought or agreed to buy goods, obtained with
Contract invilved legal procedure.
Contracts involving sea routes:
In contracts of sale which involve sea rutes certain special clauses and conditions are to be found. The meaning of these clauses has been standard to an extent in accordance with the international customes and practices merchant.
F.A.S contracts:
F .A.S stands for free alongside ship. The property in goods sold under an fas contract passes from the seller to the buyer when the goods are delivered carriage.
Sellers duties:
1. To deliver the goods alongside ship.
2. To notify the buyer immediately that the good have been delivered.
Buyers duties:
1.to arrange for the contract of affreightment.
2.To notify give the seller sufficient notice of the name of the ship and time of delivery.
3.to pay all charges and to bear all risks from the time the goods are delivered alongside the ship.
In contracts of sale which involve sea rutes certain special clauses and conditions are to be found. The meaning of these clauses has been standard to an extent in accordance with the international customes and practices merchant.
F.A.S contracts:
F .A.S stands for free alongside ship. The property in goods sold under an fas contract passes from the seller to the buyer when the goods are delivered carriage.
Sellers duties:
1. To deliver the goods alongside ship.
2. To notify the buyer immediately that the good have been delivered.
Buyers duties:
1.to arrange for the contract of affreightment.
2.To notify give the seller sufficient notice of the name of the ship and time of delivery.
3.to pay all charges and to bear all risks from the time the goods are delivered alongside the ship.
When the approvel of delivery of goods.
1.when the significance of approvel sellin gand delivery.
2.when the does any other act adopting the transaction;
3.if he does not signify his approval or acceptance to the seller but retains the goods without giving notice of rejection, beyond the time fixed for the return of the goods, or if no time has been fixed, beyond a reasonable time.
When goods are delivered to the buyers on approvel or sale or return or other similar terms, the
property there in passes to the buyer:
1.when he signifies his approvel or acceptance to the seller;
Reservation of right of disposal:
The property in goods, whether specific or subsequently appropriated to the contract, does not pass to the buyer if the seller reserves the right of disposel of the goods until certain conditions are fulfilled.
1.where goods are shipped or delivered to a railway for carriage and by the bill of lading or railway receipt they are deliverable to the order of the seller or his agent.
2.where the seller sends a bill of exchange for the price of the goods to the buyer for his acceptance, together with the bill of lading or railway receipt.
2.when the does any other act adopting the transaction;
3.if he does not signify his approval or acceptance to the seller but retains the goods without giving notice of rejection, beyond the time fixed for the return of the goods, or if no time has been fixed, beyond a reasonable time.
When goods are delivered to the buyers on approvel or sale or return or other similar terms, the
property there in passes to the buyer:
1.when he signifies his approvel or acceptance to the seller;
Reservation of right of disposal:
The property in goods, whether specific or subsequently appropriated to the contract, does not pass to the buyer if the seller reserves the right of disposel of the goods until certain conditions are fulfilled.
1.where goods are shipped or delivered to a railway for carriage and by the bill of lading or railway receipt they are deliverable to the order of the seller or his agent.
2.where the seller sends a bill of exchange for the price of the goods to the buyer for his acceptance, together with the bill of lading or railway receipt.
Specific passing of delivery.
1.specific goods:
The rules relating to transfer of property in specific goods are as follows:
1.passing of property at the time of contract:
Where there is an unconditional contract for the sale of specific goods in adeliverable state, the property in the goods passes to the buyer when the contract is made.
2.unascertained goods:
Where there is a contract for the sale of unascertained goods the property in the goods does notpass to the buyer until the good are ascertained is merely an agreement t o sell.
Delivery to carrier:
A seller is deemed to have unconditionally appropriated the goods to the contract where he delivers them to the buyer or to a carrier or other balance.
The rules relating to transfer of property in specific goods are as follows:
1.passing of property at the time of contract:
Where there is an unconditional contract for the sale of specific goods in adeliverable state, the property in the goods passes to the buyer when the contract is made.
2.unascertained goods:
Where there is a contract for the sale of unascertained goods the property in the goods does notpass to the buyer until the good are ascertained is merely an agreement t o sell.
Delivery to carrier:
A seller is deemed to have unconditionally appropriated the goods to the contract where he delivers them to the buyer or to a carrier or other balance.
Passing of delivery.
Passing of property:
The primary rules for ascertaining when the property in goods passes to the buyer are as follows.
1.goods must be asbertained:
Were there is a contract for the sale of unascertained goods, no property in the goods is transferred to the buyer unless and until the goods are uncertained.
2.intention of the parties:
Wher for the sale of specific there is a contract ascertained goods, the property in them passes to the buyer at the time when the parties intend it to pass.
Where the intention of the parties cannot be ascertained, where the intention of the parties as to the time when the property in the goods is to pass to the buyer cannot be ascetrtained from the contract, the rules contained in the rules.
The primary rules for ascertaining when the property in goods passes to the buyer are as follows.
1.goods must be asbertained:
Were there is a contract for the sale of unascertained goods, no property in the goods is transferred to the buyer unless and until the goods are uncertained.
2.intention of the parties:
Wher for the sale of specific there is a contract ascertained goods, the property in them passes to the buyer at the time when the parties intend it to pass.
Where the intention of the parties cannot be ascertained, where the intention of the parties as to the time when the property in the goods is to pass to the buyer cannot be ascetrtained from the contract, the rules contained in the rules.
Monday, September 7, 2009
Transfer of property.
Transfer of property
Property, possession and risk:
There are three stages in the performance of a contract of sale of goods by a seller, viz,
1.the transfer of property in the goods;
2.the transfer of possession of the goods;
3.the passing of the risk.
Transfer of property in goods from the seller to the buyer is the main object of a contract of sale. The term property in goods must be ownership of goods property in goods refers to the custody or controle of goods.
It is important to know the presize moment of time at which the property in goods passes from the seller to the buyer for the following reasons:
1.risk followes ownership
2.action against third parties.
3.insolvancy of the seller or the buyer.
4.suit for prices.
Property, possession and risk:
There are three stages in the performance of a contract of sale of goods by a seller, viz,
1.the transfer of property in the goods;
2.the transfer of possession of the goods;
3.the passing of the risk.
Transfer of property in goods from the seller to the buyer is the main object of a contract of sale. The term property in goods must be ownership of goods property in goods refers to the custody or controle of goods.
It is important to know the presize moment of time at which the property in goods passes from the seller to the buyer for the following reasons:
1.risk followes ownership
2.action against third parties.
3.insolvancy of the seller or the buyer.
4.suit for prices.
Duties of the buyer.
Duties of the buyer
1.duty to accept the goods and pay for them in he terms of the exchange for possession. It is the duty of the buyer to accept the goods and pay for them, in accordance with the contract of sale of exchange.
2.duty to apply for delivery apart from any express contract, it is the duty of the buyer to apply for delivery.
3.duty to demand delivery at a reasonable hour it is the duty of buyer to demand delivery at a reasonable hour.
4.duty to accept instalment delivery and pay for it refer to point rules as to delivery.
5.duty to take risk of deterioration in the course of transit where the seller of seller of goods ag increes to delivery them at his own risk at a place other than where they are sold, the buyer shall take any risk of deterioration in goods in this regard.
6.duty intimate the seller where he rejects the goods unless otherwise agreed, it is the duty of the buyer to inform the seller in case he refuse to accept the goods.
7.duty to take delivery it is the duty of the buyer to take delivery of the goods within a reasonable time after the tender of delivery.
1.duty to accept the goods and pay for them in he terms of the exchange for possession. It is the duty of the buyer to accept the goods and pay for them, in accordance with the contract of sale of exchange.
2.duty to apply for delivery apart from any express contract, it is the duty of the buyer to apply for delivery.
3.duty to demand delivery at a reasonable hour it is the duty of buyer to demand delivery at a reasonable hour.
4.duty to accept instalment delivery and pay for it refer to point rules as to delivery.
5.duty to take risk of deterioration in the course of transit where the seller of seller of goods ag increes to delivery them at his own risk at a place other than where they are sold, the buyer shall take any risk of deterioration in goods in this regard.
6.duty intimate the seller where he rejects the goods unless otherwise agreed, it is the duty of the buyer to inform the seller in case he refuse to accept the goods.
7.duty to take delivery it is the duty of the buyer to take delivery of the goods within a reasonable time after the tender of delivery.
8.duty to pay price where property in goods has passed to the buyer it is duty to pay the price according to the term of the contract.
Duties of the buyer.
Duties of the buyer
1.duty to accept the goods and pay for them in he terms of the exchange for possession. It is the duty of the buyer to accept the goods and pay for them, in accordance with the contract of sale of exchange.
2.duty to apply for delivery apart from any express contract, it is the duty of the buyer to apply for delivery.
3.duty to demand delivery at a reasonable hour it is the duty of buyer to demand delivery at a reasonable hour.
4.duty to accept instalment delivery and pay for it refer to point rules as to delivery.
5.duty to take risk of deterioration in the course of transit where the seller of seller of goods ag increes to delivery them at his own risk at a place other than where they are sold, the buyer shall take any risk of deterioration in goods in this regard.
6.duty intimate the seller where he rejects the goods unless otherwise agreed, it is the duty of the buyer to inform the seller in case he refuse to accept the goods.
7.duty to take delivery it is the duty of the buyer to take delivery of the goods within a reasonable time after the tender of delivery.
8.duty to pay price where property in goods has passed to the buyer it is duty to pay the price according to the term of the contract.
1.duty to accept the goods and pay for them in he terms of the exchange for possession. It is the duty of the buyer to accept the goods and pay for them, in accordance with the contract of sale of exchange.
2.duty to apply for delivery apart from any express contract, it is the duty of the buyer to apply for delivery.
3.duty to demand delivery at a reasonable hour it is the duty of buyer to demand delivery at a reasonable hour.
4.duty to accept instalment delivery and pay for it refer to point rules as to delivery.
5.duty to take risk of deterioration in the course of transit where the seller of seller of goods ag increes to delivery them at his own risk at a place other than where they are sold, the buyer shall take any risk of deterioration in goods in this regard.
6.duty intimate the seller where he rejects the goods unless otherwise agreed, it is the duty of the buyer to inform the seller in case he refuse to accept the goods.
7.duty to take delivery it is the duty of the buyer to take delivery of the goods within a reasonable time after the tender of delivery.
8.duty to pay price where property in goods has passed to the buyer it is duty to pay the price according to the term of the contract.
Rights and duties of the buyer.
Rights and duties of the buyer:
Rights of the buyer
1.right to reject the goods if the seller sends to the buyer a larger or smaller quantity of goods than he ordered.
2.right to have delivery as per contract the first right of the buyer is to have delivery of the goods as per contract.
3.right to repudiate unless otherwise agreed, the buyer of goods has a right not to accept delivery thereof by instalments. This has already been explained in detail.
4.right to notice of insurance unless the otherwise agreed where goods are sent by the seller to the buyer by asea route, the buyer has a right to be informed by the seller so that he may get the goods insured.
5.right to examine. The buyer has a right to examine the goods which he has not previously examined before he accepted them the seller is bound to affored the buyer a reasonable opportunity of conformanity with the contract.
Rights of the buyer
1.right to reject the goods if the seller sends to the buyer a larger or smaller quantity of goods than he ordered.
2.right to have delivery as per contract the first right of the buyer is to have delivery of the goods as per contract.
3.right to repudiate unless otherwise agreed, the buyer of goods has a right not to accept delivery thereof by instalments. This has already been explained in detail.
4.right to notice of insurance unless the otherwise agreed where goods are sent by the seller to the buyer by asea route, the buyer has a right to be informed by the seller so that he may get the goods insured.
5.right to examine. The buyer has a right to examine the goods which he has not previously examined before he accepted them the seller is bound to affored the buyer a reasonable opportunity of conformanity with the contract.
Acceptence of delivery.
Acceptance of delivery:
Receipt of goods by the buyer does not necessarily result in acceptance of goods by him under, and in performance of, the contract of sale acceptance is something more than mere receipt or taking possession of the goods by the buyer.
It means the final assent by the buyer that he has refceived the goods under, and in performance of, the contract of sale. If he wrongfully refuses to accept the goods under the contract, he is liable for damages.
The buyer is deemed to have accepted the goods-
1.when he intimates to the seller that he has accepted the goods.
2.when the goods have been delivered to him and he does any act in relation to them which is inconsistent with the ownership of the seller as for instenses.
3.when after the lapse of a reasonable time he retains the goods without intimation to the seller that he has rejected them.
Buyers liability for rejecting, neglating or refusing delivery:
Buyers liability in case of rejuction of goods, unless otherwise agreed where goods are delivered to the buyer and he rejects them, he is not bound to return them to the seller.
Receipt of goods by the buyer does not necessarily result in acceptance of goods by him under, and in performance of, the contract of sale acceptance is something more than mere receipt or taking possession of the goods by the buyer.
It means the final assent by the buyer that he has refceived the goods under, and in performance of, the contract of sale. If he wrongfully refuses to accept the goods under the contract, he is liable for damages.
The buyer is deemed to have accepted the goods-
1.when he intimates to the seller that he has accepted the goods.
2.when the goods have been delivered to him and he does any act in relation to them which is inconsistent with the ownership of the seller as for instenses.
3.when after the lapse of a reasonable time he retains the goods without intimation to the seller that he has rejected them.
Buyers liability for rejecting, neglating or refusing delivery:
Buyers liability in case of rejuction of goods, unless otherwise agreed where goods are delivered to the buyer and he rejects them, he is not bound to return them to the seller.
Delivery of wrong quality.
Delivery of wrong quantity:
The delivery of the quantity of goods constructed for should be strictly according to the terms of the contract. A defective delivery entitles the buyer to reject the goods. The three different contingencies which may be arises in case of defective delivery.
1.delivery of goods less than contructed for:
Where the seller delivers to the buyer a quantity of goods less than he contracted to sell,the buyer may reject the goods.
2.delivery of goods in excess of quantity:
Where the seller delivers to the buyers a quantity of goods larger than he contructed to sell, the buyer may1.accept the whole: or 2.reject the whole. He must pay for them at the contract rate.
3.delivery of goods contracted for mixed with other goods:
Where the seller delivers to the buyer the goods he constructed to sell mixed with goods of a different description the buyer may accept the goods with the contract.
The delivery of the quantity of goods constructed for should be strictly according to the terms of the contract. A defective delivery entitles the buyer to reject the goods. The three different contingencies which may be arises in case of defective delivery.
1.delivery of goods less than contructed for:
Where the seller delivers to the buyer a quantity of goods less than he contracted to sell,the buyer may reject the goods.
2.delivery of goods in excess of quantity:
Where the seller delivers to the buyers a quantity of goods larger than he contructed to sell, the buyer may1.accept the whole: or 2.reject the whole. He must pay for them at the contract rate.
3.delivery of goods contracted for mixed with other goods:
Where the seller delivers to the buyer the goods he constructed to sell mixed with goods of a different description the buyer may accept the goods with the contract.
Rules as to delivery goods.
Rules as to delivery of goods:
1.mode of delivery:
delivery should be have the effect of putting the goods in the possession of the buyer or his duly authorized agent delivery of goods may be
1.actual; 2. Constructive; 3. Symbolic.
2.delivery and payment:
delivery of the goods and payment of the price must be according to the terms of the contract. Unless otherwise agreed, delivered of the goods and payment of the price and conditions.
3.effect of part delivery:
a delivery of part of the goods in progress of the delivery of the whole, has the same effect for the purpose of passing the property in the such goods, a delivery of the hole.
4.buyer to apply:
apart from any express contract, the seller of goods is not bound to deliver them until the buyer applies for delivery where the goods are subsequently acquired by the seller should be then apply for delivery.
5.time of delivery:
Where under the contract of sale the seller is bound to send the goods to the buyer, but no time for sending them is fixed, the seller is bound to send them within a reasonable time of fact.
1.mode of delivery:
delivery should be have the effect of putting the goods in the possession of the buyer or his duly authorized agent delivery of goods may be
1.actual; 2. Constructive; 3. Symbolic.
2.delivery and payment:
delivery of the goods and payment of the price must be according to the terms of the contract. Unless otherwise agreed, delivered of the goods and payment of the price and conditions.
3.effect of part delivery:
a delivery of part of the goods in progress of the delivery of the whole, has the same effect for the purpose of passing the property in the such goods, a delivery of the hole.
4.buyer to apply:
apart from any express contract, the seller of goods is not bound to deliver them until the buyer applies for delivery where the goods are subsequently acquired by the seller should be then apply for delivery.
5.time of delivery:
Where under the contract of sale the seller is bound to send the goods to the buyer, but no time for sending them is fixed, the seller is bound to send them within a reasonable time of fact.
Performence of contract.
Performance of contract:
Performance of contract of sale means as regards the seller, delivery of the goods to the buyer, and as regards the buyer, acceptance of the delivery of the goods and payment for them of the contract of sale.
A contract of sale always involves reciprocal promises the seller promising to deliver the goods and the buyer promising to accept and pay for them. In the absence of a contract to the country they are to be perform simultaneously and each party should be ready willing promise.
Delivery of goods:
Delivery means voluentry transfer of possestion of goods from one person to another delivery of goods sold may be made by doing any thing which the paties agree shall be treated buyer of his agent.
Delivery of goods may be actual, symbolic, or constructive:
1.actual delivery
2.symbalic delivery.
3.constructive delivery by attornment .
Such order and transfer the goods in his books to this is a delivery by attornment.
Performance of contract of sale means as regards the seller, delivery of the goods to the buyer, and as regards the buyer, acceptance of the delivery of the goods and payment for them of the contract of sale.
A contract of sale always involves reciprocal promises the seller promising to deliver the goods and the buyer promising to accept and pay for them. In the absence of a contract to the country they are to be perform simultaneously and each party should be ready willing promise.
Delivery of goods:
Delivery means voluentry transfer of possestion of goods from one person to another delivery of goods sold may be made by doing any thing which the paties agree shall be treated buyer of his agent.
Delivery of goods may be actual, symbolic, or constructive:
1.actual delivery
2.symbalic delivery.
3.constructive delivery by attornment .
Such order and transfer the goods in his books to this is a delivery by attornment.
Rules for auction sale
Rules of auction sales:
1.goods put up for sale in lots:
Where goods are put up for sale in lots each lot is prima facie deemed to be subject of a separate contract of sale.
2.completion of sale:
The sale is complete when the auctioner announcer its completion by the fall of the hummer or in some other customery manner like one two three or going gone such intrecter.
3.right of seller to bid:
A right to bid may be reserved expressly by or on behalf of the seller. Where such right is expressly reserved the seller or any one person on his behalf may bid at the auction.
4.use of pretended bidding:
If the seller makes use of pretended bidding to rise the price the sale is voidable at the option of the buyer.
Implied warranties in an auction sale:
When an auctioner sells goods he impliedly undertakes the following obligation.
1.goods put up for sale in lots:
Where goods are put up for sale in lots each lot is prima facie deemed to be subject of a separate contract of sale.
2.completion of sale:
The sale is complete when the auctioner announcer its completion by the fall of the hummer or in some other customery manner like one two three or going gone such intrecter.
3.right of seller to bid:
A right to bid may be reserved expressly by or on behalf of the seller. Where such right is expressly reserved the seller or any one person on his behalf may bid at the auction.
4.use of pretended bidding:
If the seller makes use of pretended bidding to rise the price the sale is voidable at the option of the buyer.
Implied warranties in an auction sale:
When an auctioner sells goods he impliedly undertakes the following obligation.
Auction of sale
Auction sales:
A sales by auction is a public sale where different intencing buyers try to outbid each other. The goods are ultimately sold to the highest bidder. The actioner who sells the goods by auction is an agent of the seller, the owner.his relationship with the owner of the goods is governed by the general principles of the law relating to agency.
Procedure in auction sales:
The usual procedure in case of auction sales is as follows:
The proposed auction is duly advertised and a printed catalogue of the goods together with the terms of sale is circulated.on the appointed day and time, the intending buyers assemble and the intending buyers.
Rules of auction sales:
The law on auction sales is contained in the sale of goods act.in case of a sale by auction the following rules apply.
A sales by auction is a public sale where different intencing buyers try to outbid each other. The goods are ultimately sold to the highest bidder. The actioner who sells the goods by auction is an agent of the seller, the owner.his relationship with the owner of the goods is governed by the general principles of the law relating to agency.
Procedure in auction sales:
The usual procedure in case of auction sales is as follows:
The proposed auction is duly advertised and a printed catalogue of the goods together with the terms of sale is circulated.on the appointed day and time, the intending buyers assemble and the intending buyers.
Rules of auction sales:
The law on auction sales is contained in the sale of goods act.in case of a sale by auction the following rules apply.
Remedies for breach of contract
The sale of goods act gives the following remedies to a seller and a buyer for breach of a contract of sale:
1.seller’s suits:
1.suit for price.
2.suit for damages for non-acceptence of the goods.
3.suit for damages for reputation of contract by the buyer before due date.
4.suit for intrest.
2.buyer’s suits:
1.suit for damages for non-delivery of the goods.
2.suit for specific performance.
3.suit for breach of warrenty.
4.suit for damages for reputation of contract by the seller before due date.
5.suit for intrest.
All these remedies have already been discoused.
1.seller’s suits:
1.suit for price.
2.suit for damages for non-acceptence of the goods.
3.suit for damages for reputation of contract by the buyer before due date.
4.suit for intrest.
2.buyer’s suits:
1.suit for damages for non-delivery of the goods.
2.suit for specific performance.
3.suit for breach of warrenty.
4.suit for damages for reputation of contract by the seller before due date.
5.suit for intrest.
All these remedies have already been discoused.
Remedies for breach of contract
The sale of goods act gives the following remedies to a seller and a buyer for breach of a contract of sale:
1.seller’s suits:
1.suit for price.
2.suit for damages for non-acceptence of the goods.
3.suit for damages for reputation of contract by the buyer before due date.
4.suit for intrest.
2.buyer’s suits:
1.suit for damages for non-delivery of the goods.
2.suit for specific performance.
3.suit for breach of warrenty.
4.suit for damages for reputation of contract by the seller before due date.
5.suit for intrest.
All these remedies have already been discoused.
1.seller’s suits:
1.suit for price.
2.suit for damages for non-acceptence of the goods.
3.suit for damages for reputation of contract by the buyer before due date.
4.suit for intrest.
2.buyer’s suits:
1.suit for damages for non-delivery of the goods.
2.suit for specific performance.
3.suit for breach of warrenty.
4.suit for damages for reputation of contract by the seller before due date.
5.suit for intrest.
All these remedies have already been discoused.
Monday, August 31, 2009
The buyer personality.
Rights of an unpaid seller against the buyer personality:
1.suit for price:
Where property has passed where the under a contract of sale the property in the goods has passed to the buyer and the buyer wronglyneglects or refuses to pay for the goods.
2.suit for damages for non-acceptences:
Where the buyer wrongfully neglacts or refuses to accept and pay for the goods, the seller may sue him for non-acceptence.as regards measure of damages.
3.reputation of contract before due date:
Where the buyer reputies the contract before the date of delivery, the seller may entitled—
1.treat the contract as submising and waiting till the date of delivery or,
2.he may treat the contract as rescinded and sue for damages for the breach.
4.suit for intrest:
Where there is a specific agreement between the seller and the buyer as to intrest on the price of the goods from the date on which payment becomes due from such day as he may notify to the buyer.
1.suit for price:
Where property has passed where the under a contract of sale the property in the goods has passed to the buyer and the buyer wronglyneglects or refuses to pay for the goods.
2.suit for damages for non-acceptences:
Where the buyer wrongfully neglacts or refuses to accept and pay for the goods, the seller may sue him for non-acceptence.as regards measure of damages.
3.reputation of contract before due date:
Where the buyer reputies the contract before the date of delivery, the seller may entitled—
1.treat the contract as submising and waiting till the date of delivery or,
2.he may treat the contract as rescinded and sue for damages for the breach.
4.suit for intrest:
Where there is a specific agreement between the seller and the buyer as to intrest on the price of the goods from the date on which payment becomes due from such day as he may notify to the buyer.
Rights of resale
Rights of resale:
The unpaid seller can re sell the goods---
1.where the goods are of a perishable mature; or
2.where he gives notice to the buyer of his intension to re-sell the goods and the buyer tender price.
If an resale there is a loss to the seller he can claim it from the buyer as damages for breach of contract. If there is a surplus on the resale, he is not bound to hand it over to the buyer because the buyer cannot be a allowed.
Right of withholding delivery:
Where the property in goods has not passed to the buyer an unpaid seller has in addition to his other remedies, a right of withholding delivery similar to has passed to the buyer.
The unpaid seller is not entitled—
1.to recover any losses on the re sale of the goods; and
2.to retain any surplus arising on the re sale of the goods.
The unpaid seller can re sell the goods---
1.where the goods are of a perishable mature; or
2.where he gives notice to the buyer of his intension to re-sell the goods and the buyer tender price.
If an resale there is a loss to the seller he can claim it from the buyer as damages for breach of contract. If there is a surplus on the resale, he is not bound to hand it over to the buyer because the buyer cannot be a allowed.
Right of withholding delivery:
Where the property in goods has not passed to the buyer an unpaid seller has in addition to his other remedies, a right of withholding delivery similar to has passed to the buyer.
The unpaid seller is not entitled—
1.to recover any losses on the re sale of the goods; and
2.to retain any surplus arising on the re sale of the goods.
Rights on lien
Rights of an unpaid seller:
1.rights of an unpaid seller against the goods:
When they are property in the goods has passed to the buyer, an unpaid seller has the following rights against the goods.
2.right of lien:
A lien is a right to retain possession of goods until payment of the price. It is available to the unpaid seller of the goods who is in position of them.
3.right of stoppage in transit:
The right of stoppage in transit is a right of stoping the goods in transit after the unpaid seller has parted with the position of the goods. He has the further right of resuming possetion of the goods.
It is unpaid seller availed in-
1.when the buyer becomes insolvent; and
2.when the goods are in transit.
Duration of transit:
Transit is an intermediate stage. Goods are deemed to be in course of transit from the time they are delivered to a carrier, or other buyer for the agent.
The carrier may hold goods-
1.as seller agent.
2.as buyer agent.
3.in an independent capacity.
1.rights of an unpaid seller against the goods:
When they are property in the goods has passed to the buyer, an unpaid seller has the following rights against the goods.
2.right of lien:
A lien is a right to retain possession of goods until payment of the price. It is available to the unpaid seller of the goods who is in position of them.
3.right of stoppage in transit:
The right of stoppage in transit is a right of stoping the goods in transit after the unpaid seller has parted with the position of the goods. He has the further right of resuming possetion of the goods.
It is unpaid seller availed in-
1.when the buyer becomes insolvent; and
2.when the goods are in transit.
Duration of transit:
Transit is an intermediate stage. Goods are deemed to be in course of transit from the time they are delivered to a carrier, or other buyer for the agent.
The carrier may hold goods-
1.as seller agent.
2.as buyer agent.
3.in an independent capacity.
Rights of an unpaid seller
Rights of an unpaid seller:
Who is an unpaid seller?
A seller of goods is deemed to be an unpaid seller when—
1.the whole of the price has not been paid or tendered.
2.a bill of exchange or other negotiable instrument has been received as a conditional payment, anon on which it was the condition on which it was received has not been fulfilled by reason of dishonor.
The following conditions must be fulfilled before a seller of goods can be deemed to be an unpaid seller:
1.he must be unpaid and the price must be due.
2.he must have an immediate right of action for the price.
3.a bill of exchange or other negotiable instrument was received but the same of has been dishonoured.
When a payment is made by a negotiable instrument it is usually a conditional payment, the condition being that the instrument shall be duly honourd.
Seller here means not only the actual seller, but also any person who is in the position of a seller.
Who is an unpaid seller?
A seller of goods is deemed to be an unpaid seller when—
1.the whole of the price has not been paid or tendered.
2.a bill of exchange or other negotiable instrument has been received as a conditional payment, anon on which it was the condition on which it was received has not been fulfilled by reason of dishonor.
The following conditions must be fulfilled before a seller of goods can be deemed to be an unpaid seller:
1.he must be unpaid and the price must be due.
2.he must have an immediate right of action for the price.
3.a bill of exchange or other negotiable instrument was received but the same of has been dishonoured.
When a payment is made by a negotiable instrument it is usually a conditional payment, the condition being that the instrument shall be duly honourd.
Seller here means not only the actual seller, but also any person who is in the position of a seller.
Limited partnership
Limited partnership:
A limited partnership as such is not found in the Indian law. The English law, however, recognizes limited partnerships and the law relating to them is found in the English limited partnership a brief reference is made to the English law relating to limited partnerships.
1. a limited partnership must not consist of more than 10 person in the case of a firm carrying on banking business, or of more than 20 persons in the case of a firm carrying on any other business.
2.a limited partnership is not a legal entity distinct from the members who compose the firm.
3. a limited partnership must consist of one or more genral partners who liable for all the debts and obligations of one or more limited liabilities.
4. a limited partner must not, during the continuance of the partnership either directly or indirectly withdraw his capital otherwise he becomes liable and obligations of a fully paid in the shareholder in limited company.
5. he can assighn his share in the partnership with the consent of the genral partners.
6. his death, bankruptcy, or luncy does not dissolve the partnership he cannot also by notice.
7. a body corporate may be a limited partner.
A limited partnership as such is not found in the Indian law. The English law, however, recognizes limited partnerships and the law relating to them is found in the English limited partnership a brief reference is made to the English law relating to limited partnerships.
1. a limited partnership must not consist of more than 10 person in the case of a firm carrying on banking business, or of more than 20 persons in the case of a firm carrying on any other business.
2.a limited partnership is not a legal entity distinct from the members who compose the firm.
3. a limited partnership must consist of one or more genral partners who liable for all the debts and obligations of one or more limited liabilities.
4. a limited partner must not, during the continuance of the partnership either directly or indirectly withdraw his capital otherwise he becomes liable and obligations of a fully paid in the shareholder in limited company.
5. he can assighn his share in the partnership with the consent of the genral partners.
6. his death, bankruptcy, or luncy does not dissolve the partnership he cannot also by notice.
7. a body corporate may be a limited partner.
Limited partnership
Limited partnership:
A limited partnership as such is not found in the Indian law. The English law, however, recognizes limited partnerships and the law relating to them is found in the English limited partnership a brief reference is made to the English law relating to limited partnerships.
1. a limited partnership must not consist of more than 10 person in the case of a firm carrying on banking business, or of more than 20 persons in the case of a firm carrying on any other business.
2.a limited partnership is not a legal entity distinct from the members who compose the firm.
3. a limited partnership must consist of one or more genral partners who liable for all the debts and obligations of one or more limited liabilities.
4. a limited partner must not, during the continuance of the partnership either directly or indirectly withdraw his capital otherwise he becomes liable and obligations of a fully paid in the shareholder in limited company.
5. he can assighn his share in the partnership with the consent of the genral partners.
6. his death, bankruptcy, or luncy does not dissolve the partnership he cannot also by notice.
7. a body corporate may be a limited partner.
A limited partnership as such is not found in the Indian law. The English law, however, recognizes limited partnerships and the law relating to them is found in the English limited partnership a brief reference is made to the English law relating to limited partnerships.
1. a limited partnership must not consist of more than 10 person in the case of a firm carrying on banking business, or of more than 20 persons in the case of a firm carrying on any other business.
2.a limited partnership is not a legal entity distinct from the members who compose the firm.
3. a limited partnership must consist of one or more genral partners who liable for all the debts and obligations of one or more limited liabilities.
4. a limited partner must not, during the continuance of the partnership either directly or indirectly withdraw his capital otherwise he becomes liable and obligations of a fully paid in the shareholder in limited company.
5. he can assighn his share in the partnership with the consent of the genral partners.
6. his death, bankruptcy, or luncy does not dissolve the partnership he cannot also by notice.
7. a body corporate may be a limited partner.
Sunday, August 30, 2009
Public notice
Public notice:
A public notice has to be given:
1.on the retirement or expulsion of a partner from a registered firm.
2.on the dissolution of a registration firm.
3.on the election to become or not to become a partner in a registered firm by a minor on his attaining majority.
The public notice relating to the above matters is given:
1.by notice to the register of firms.
2.by publication in the official gazette.
3.by publication in at least one vernacular newspaper circulating in the district where the principles of place in business.
Consequences ofpublic notice is not given:
1.on election of a minor partner to become or not become a partner:
If a minor admitted to the benefits of partnership falls to give a public notice with in 6 months of his attaining majority or of his obtaining knowledge that he had a liable of the firm.
2.on retirement of a partner:
If a retiring partner does not give a public notice of his retirement from the firm he and the other partners shall continue to be liable as partners to be liable as partners to third parties for any act done by any of them retirement.
A public notice has to be given:
1.on the retirement or expulsion of a partner from a registered firm.
2.on the dissolution of a registration firm.
3.on the election to become or not to become a partner in a registered firm by a minor on his attaining majority.
The public notice relating to the above matters is given:
1.by notice to the register of firms.
2.by publication in the official gazette.
3.by publication in at least one vernacular newspaper circulating in the district where the principles of place in business.
Consequences ofpublic notice is not given:
1.on election of a minor partner to become or not become a partner:
If a minor admitted to the benefits of partnership falls to give a public notice with in 6 months of his attaining majority or of his obtaining knowledge that he had a liable of the firm.
2.on retirement of a partner:
If a retiring partner does not give a public notice of his retirement from the firm he and the other partners shall continue to be liable as partners to be liable as partners to third parties for any act done by any of them retirement.
Settlement of accounts
Settlement of accounts:
The mode of settlement of accounts between partners after the dissolution of a firm is determined by the partnership agreement in the absence of any specific agreement between them in this regard provisions of accounts.
1.sale of goodwill:
In setting the accounts of a firm after dissolution the goodwill shall be included in the assets and it may be sold either seperatly or along with other property of the firm.
2.sharing of defisiancy:
If the case of the firm are insufficient to discharge the debts and liabilities of the firm the partners shall bear defficiancy in the proportion in which they were entitled to share profits thus losses, including deficiencies of capital, shall be paid-
1.first out of profits.
2.next out of capital, and
3.lastly if nessary by the partners individually in the proportion in which they were entitled to share profits.
The mode of settlement of accounts between partners after the dissolution of a firm is determined by the partnership agreement in the absence of any specific agreement between them in this regard provisions of accounts.
1.sale of goodwill:
In setting the accounts of a firm after dissolution the goodwill shall be included in the assets and it may be sold either seperatly or along with other property of the firm.
2.sharing of defisiancy:
If the case of the firm are insufficient to discharge the debts and liabilities of the firm the partners shall bear defficiancy in the proportion in which they were entitled to share profits thus losses, including deficiencies of capital, shall be paid-
1.first out of profits.
2.next out of capital, and
3.lastly if nessary by the partners individually in the proportion in which they were entitled to share profits.
Liabilities of a partner in disolution
Liabilities of a partner dissolution:
1.liability for acts of partners done after dissolution:
In order to observe partners of the liability for any act done after the dissolution of the firm a public notice must be given to the dissolution if this is not done the partners continueto be liable as such to third parties for any act done by any of them after the dissolution further in such a case the act of a partner done .
The following however are not liable for the acts done after the dissolution of the firm and no notice of dissoloution need to given:
1.the estate of a deceased partner.
2.the insolvent partner and,
3.the sleeping or dormant partner who retires.
2.continuing authority of partners for purposes of winding up:
After the dissolution of a firm the authority of each partner to bind the firm and other mutual rights and obligations of the partners continue, so far as may be necessary-
1.to wind up the affairs the firm, and
2.to complete transactions begum but unfurnished at the time of the dissolution.
1.liability for acts of partners done after dissolution:
In order to observe partners of the liability for any act done after the dissolution of the firm a public notice must be given to the dissolution if this is not done the partners continueto be liable as such to third parties for any act done by any of them after the dissolution further in such a case the act of a partner done .
The following however are not liable for the acts done after the dissolution of the firm and no notice of dissoloution need to given:
1.the estate of a deceased partner.
2.the insolvent partner and,
3.the sleeping or dormant partner who retires.
2.continuing authority of partners for purposes of winding up:
After the dissolution of a firm the authority of each partner to bind the firm and other mutual rights and obligations of the partners continue, so far as may be necessary-
1.to wind up the affairs the firm, and
2.to complete transactions begum but unfurnished at the time of the dissolution.
Rights of partner in disolution
Rights of a partner on dissolution:
On the desolution of a partnership firm a partnerhas the following rights namely-
1.right to business wound up:
On the dissolution of a firm every partner or his representatives is entiteled to have the property of the firm applied in payment of outside debats and liabilities of the firm.
2.right to have debats of the firm settled out of the property of the firm:
where a firm is dissolved the debats of the firm are settled out of the property of the firm and if ther is anysurplus it is utilized towords payment of the private debats of the partners.
3.right to personel profits earned after dissolution:
Where any partner has bought the goodwill of the firm on its dissoloution he has the right to use the firm name and earn profit by its use.
4.right to return of premiuem on premature dissolution:
Where a partner has paid a premiuem on entering into partnership for a fixed term and the firm is dissolved before the expiration of the term he is entitledto repaymentof the whole or part of the premiuem regard had to-
On the desolution of a partnership firm a partnerhas the following rights namely-
1.right to business wound up:
On the dissolution of a firm every partner or his representatives is entiteled to have the property of the firm applied in payment of outside debats and liabilities of the firm.
2.right to have debats of the firm settled out of the property of the firm:
where a firm is dissolved the debats of the firm are settled out of the property of the firm and if ther is anysurplus it is utilized towords payment of the private debats of the partners.
3.right to personel profits earned after dissolution:
Where any partner has bought the goodwill of the firm on its dissoloution he has the right to use the firm name and earn profit by its use.
4.right to return of premiuem on premature dissolution:
Where a partner has paid a premiuem on entering into partnership for a fixed term and the firm is dissolved before the expiration of the term he is entitledto repaymentof the whole or part of the premiuem regard had to-
Disolution by court
Dissolution by court:
The court may be at the suit of a partner, dissolve a firm on the following grounds-
1.insantry:
Where a partner has become of unsound mind the court may dissolve the firm on the petition of any of the other partners or by the next friend if the instand partner.
2.permenant incapacity:
Where a partner, other than the partner suing has become in any way permanently incapable of performing his duties as a partner.
3.miscondect:
Where a partner other than the partner suing is guilty of misconduct and it is likely to affect the carrying on of the business regared being had to the nature of the business.
4.persistent breach of agreement:
Where a partner other than the partner suing wilfuly or persistently commits breach of the firm or the conduct of its business.agreements relating to the management of the affairs of the firm or the conducts himself in the partners.
5.Transfer of intrest:
Where a partner has in any way transferred the whole of his intrest in the firm to a third party or where his share has been attached under a decree, or sold in the recovery of arrears of land revenue.
The court may be at the suit of a partner, dissolve a firm on the following grounds-
1.insantry:
Where a partner has become of unsound mind the court may dissolve the firm on the petition of any of the other partners or by the next friend if the instand partner.
2.permenant incapacity:
Where a partner, other than the partner suing has become in any way permanently incapable of performing his duties as a partner.
3.miscondect:
Where a partner other than the partner suing is guilty of misconduct and it is likely to affect the carrying on of the business regared being had to the nature of the business.
4.persistent breach of agreement:
Where a partner other than the partner suing wilfuly or persistently commits breach of the firm or the conduct of its business.agreements relating to the management of the affairs of the firm or the conducts himself in the partners.
5.Transfer of intrest:
Where a partner has in any way transferred the whole of his intrest in the firm to a third party or where his share has been attached under a decree, or sold in the recovery of arrears of land revenue.
Disolution order 0of court
Dissolution with out the order of court:
It may take place in one of the following ways:
1.dissolution by agreement:
A firm may be dissolved-
a.With consent of all the partners or,
b.In accordance with a contract between them
2.compulsory dissolution: a firm compulsory dissolved-
By the adjustication of all partners or all the partners but once as insolvent. The reason for this is simple. A partner on being adjusticated in solvent cases to be a partner on the date on which the order of adjustication is made.
3.dissolution on the happening of certain contegencies:
1.the expirary of them for which the firm was consisted.
2.the compelsation of the particular adventure or adventurers, if the firm is consisted for the execution thereof.
3.the death of a partner, and
4.the adjustication of a partner as an insolvent.
4.dissolution by notice of partnership:
Where the partnership is at will the firm may be dissolved by any partner giving notice in writing to all the other partners of his attention to dissolved the firm.
It may take place in one of the following ways:
1.dissolution by agreement:
A firm may be dissolved-
a.With consent of all the partners or,
b.In accordance with a contract between them
2.compulsory dissolution: a firm compulsory dissolved-
By the adjustication of all partners or all the partners but once as insolvent. The reason for this is simple. A partner on being adjusticated in solvent cases to be a partner on the date on which the order of adjustication is made.
3.dissolution on the happening of certain contegencies:
1.the expirary of them for which the firm was consisted.
2.the compelsation of the particular adventure or adventurers, if the firm is consisted for the execution thereof.
3.the death of a partner, and
4.the adjustication of a partner as an insolvent.
4.dissolution by notice of partnership:
Where the partnership is at will the firm may be dissolved by any partner giving notice in writing to all the other partners of his attention to dissolved the firm.
Disolution
Dissolution:
The dissolution of partnership between all partners of a firm to called the dissolution of the firm this means there is a difference between dissolution of partnership and dissolution firm.
Dissolution of firm:
It means complete breake down or extinction of the relation ship of partnership between all the partners of a firm. If this breakdown or serverance of partnership relation is between a few and not all the partners.
Dissolution of partnership:
It involves only a change in the agreement in the partners.is called reconstituted firm thus retirement of a partner from a firm does not dissolve the firm. It merrely serves the partnership relationship with retiring partner and the continuing partners.
The dissolution of partnership between all partners of a firm to called the dissolution of the firm this means there is a difference between dissolution of partnership and dissolution firm.
Dissolution of firm:
It means complete breake down or extinction of the relation ship of partnership between all the partners of a firm. If this breakdown or serverance of partnership relation is between a few and not all the partners.
Dissolution of partnership:
It involves only a change in the agreement in the partners.is called reconstituted firm thus retirement of a partner from a firm does not dissolve the firm. It merrely serves the partnership relationship with retiring partner and the continuing partners.
Expulsion of partners.
Expulsion of a partner:
A partner may be expelled from partnership subject to the following three condition:
1.the power of expulsion of a partner should be conferred by the contract between the partners.
2.the power should be excersiced by a majority of the partners.
3.the power should be excersiced in good faith.
Insolvency of a partner:
Where a partner in affirm is adjudicated insolvent, he cases to be partner on the date on which the order of adjustication is made, whether or not the firm is thereby dissolved.
Death of partner:
Subject to contract between the partners, a firm is dissolved by the death of a partner where under a contract between the partners the firm is not dissolved by the death of a partner.
Transfer of a partners intrest:
A partner may transfer his intrest in the firm by sale, mortage or charge. The transfer may be absolute or partial. It does not however entile the transfere.
A partner may be expelled from partnership subject to the following three condition:
1.the power of expulsion of a partner should be conferred by the contract between the partners.
2.the power should be excersiced by a majority of the partners.
3.the power should be excersiced in good faith.
Insolvency of a partner:
Where a partner in affirm is adjudicated insolvent, he cases to be partner on the date on which the order of adjustication is made, whether or not the firm is thereby dissolved.
Death of partner:
Subject to contract between the partners, a firm is dissolved by the death of a partner where under a contract between the partners the firm is not dissolved by the death of a partner.
Transfer of a partners intrest:
A partner may transfer his intrest in the firm by sale, mortage or charge. The transfer may be absolute or partial. It does not however entile the transfere.
Expulsion of partners.
Expulsion of a partner:
A partner may be expelled from partnership subject to the following three condition:
1.the power of expulsion of a partner should be conferred by the contract between the partners.
2.the power should be excersiced by a majority of the partners.
3.the power should be excersiced in good faith.
Insolvency of a partner:
Where a partner in affirm is adjudicated insolvent, he cases to be partner on the date on which the order of adjustication is made, whether or not the firm is thereby dissolved.
Death of partner:
Subject to contract between the partners, a firm is dissolved by the death of a partner where under a contract between the partners the firm is not dissolved by the death of a partner.
Transfer of a partners intrest:
A partner may transfer his intrest in the firm by sale, mortage or charge. The transfer may be absolute or partial. It does not however entile the transfere.
A partner may be expelled from partnership subject to the following three condition:
1.the power of expulsion of a partner should be conferred by the contract between the partners.
2.the power should be excersiced by a majority of the partners.
3.the power should be excersiced in good faith.
Insolvency of a partner:
Where a partner in affirm is adjudicated insolvent, he cases to be partner on the date on which the order of adjustication is made, whether or not the firm is thereby dissolved.
Death of partner:
Subject to contract between the partners, a firm is dissolved by the death of a partner where under a contract between the partners the firm is not dissolved by the death of a partner.
Transfer of a partners intrest:
A partner may transfer his intrest in the firm by sale, mortage or charge. The transfer may be absolute or partial. It does not however entile the transfere.
Rights of the partners.
Rights of the retired partner:
1.to carry on competing business:
A retired partner may carry on a business competing with that of the firm and he may advertise such business, but, subject to contract to the country he may not-
a.use the firm name,
b.represent himself as carrying on the business of the firm, or
c.solicit the custom of persons who were dealing with the firm before he caused to be a partner.
2.to share subsequent profits:
Where a partner dies or otherwise ceases to be a partner, and there is no final settlement of accounts between the legal representatives of the deceased partner or the retired partner and the surving or continuing partners, and they carry on business with the property of the firm.
a. such share of the profits earned after the death or retirement of the partner which is attribute to the use of his share of the property of the firm.
b. intrest at the rate of six per cent per annum on the amount of his share in the property.
1.to carry on competing business:
A retired partner may carry on a business competing with that of the firm and he may advertise such business, but, subject to contract to the country he may not-
a.use the firm name,
b.represent himself as carrying on the business of the firm, or
c.solicit the custom of persons who were dealing with the firm before he caused to be a partner.
2.to share subsequent profits:
Where a partner dies or otherwise ceases to be a partner, and there is no final settlement of accounts between the legal representatives of the deceased partner or the retired partner and the surving or continuing partners, and they carry on business with the property of the firm.
a. such share of the profits earned after the death or retirement of the partner which is attribute to the use of his share of the property of the firm.
b. intrest at the rate of six per cent per annum on the amount of his share in the property.
Retirement of partner.
Retirement of a partner:
A partner may retire from a firm-
1.with the consent of all the other partners such consent may be expressed or implied.
2.in accordance with an expressagreement by the partners or,
3.when the partnership is at will by giving notice in writing to all the other partners of his intension to retire.
Liability of retierd partner:
This may be discussed under the following two heads:
1.liability before retirement:
A retirement partner continues to be liable for all the acts of the firm done before his retirement or acts pending at the time of his retirement unless he is discharged from his liability.
2.liability after tetirement:
A retired partner along with other partners at the time of his retirement continues to be liable as partner to third parties for any act done by any of them after the retirement of the partner-untill a public notice is given of the retirement.
A partner may retire from a firm-
1.with the consent of all the other partners such consent may be expressed or implied.
2.in accordance with an expressagreement by the partners or,
3.when the partnership is at will by giving notice in writing to all the other partners of his intension to retire.
Liability of retierd partner:
This may be discussed under the following two heads:
1.liability before retirement:
A retirement partner continues to be liable for all the acts of the firm done before his retirement or acts pending at the time of his retirement unless he is discharged from his liability.
2.liability after tetirement:
A retired partner along with other partners at the time of his retirement continues to be liable as partner to third parties for any act done by any of them after the retirement of the partner-untill a public notice is given of the retirement.
Reconstitution of firm
Minor partner:
In the Indian contract act, an agreement by or with minor os void.as such he is incapable of entering into a contract of partnership. But with the cansent of all the partners for the time being, a minor may be admitted to the benefits of partnership of this provision is based on the rule that the minor cannot be a partner.
Reconstitution of firm:
A partnership firm is said to be reconstituted when any of the following changes occurs and the firm continues:
1.introduction of the partner.
2.retirement of a partner.
3.exulsion of a partner.
4.insolvency of a partner.
5.death of a partner.
6.transfer of a partner share.
Introduction of a partner:
Which details with the position of a minor partner a person may be admitted as a new partner enter-
1.With the consent of all the existing partners, or
2.In accordance with a contract already entered in to between the partners.
In the Indian contract act, an agreement by or with minor os void.as such he is incapable of entering into a contract of partnership. But with the cansent of all the partners for the time being, a minor may be admitted to the benefits of partnership of this provision is based on the rule that the minor cannot be a partner.
Reconstitution of firm:
A partnership firm is said to be reconstituted when any of the following changes occurs and the firm continues:
1.introduction of the partner.
2.retirement of a partner.
3.exulsion of a partner.
4.insolvency of a partner.
5.death of a partner.
6.transfer of a partner share.
Introduction of a partner:
Which details with the position of a minor partner a person may be admitted as a new partner enter-
1.With the consent of all the existing partners, or
2.In accordance with a contract already entered in to between the partners.
Types of partner
Partner in profits only:
Sometimes partners may agree that a partner shall gets a share of the profits only and that he shall not be liable to contribute towards the losses.such a partner is known as a partner in firm.
Sub-partner:
When a partner agrees to share his profits derived from the firm with a third person. That third person is known as a partner a sub-partner is no in way connected with the firm and cannot pepresent himself if as a partner of the firm.
Partner by estopel or holding out:
Sometimes a person who is not a partner in a firm may, under certain circumstances be liable for its debts as if he were a partner. Such a partner is called a partnerby estopel or holding out.
Sometimes partners may agree that a partner shall gets a share of the profits only and that he shall not be liable to contribute towards the losses.such a partner is known as a partner in firm.
Sub-partner:
When a partner agrees to share his profits derived from the firm with a third person. That third person is known as a partner a sub-partner is no in way connected with the firm and cannot pepresent himself if as a partner of the firm.
Partner by estopel or holding out:
Sometimes a person who is not a partner in a firm may, under certain circumstances be liable for its debts as if he were a partner. Such a partner is called a partnerby estopel or holding out.
Types of partners.
Types of partners:
An outsiders dealing with a firm may have to certain cases and particulars when there is a default by the firm, as to who the partners are,and to what extent they are liable.
Actual or ostensible partner:
A person who becomes a partner by an agreement and is activitily engaged in the conducted of the business firm.partnership isknown as an actual partner.
Sleeping or document partner:
A sleeping partner is one who does not take an an active part in the conduct of the business firm. He like the other partners, invests capital and shares in the profit of the business.
Nominal partner:
A partner who lends his name to the firm,undisclosed principle but real intrest in it, is called a nominal partner, he does not invest in the business of the firm.nor does not he share in the profits or take part in the management of the business of the firm.
An outsiders dealing with a firm may have to certain cases and particulars when there is a default by the firm, as to who the partners are,and to what extent they are liable.
Actual or ostensible partner:
A person who becomes a partner by an agreement and is activitily engaged in the conducted of the business firm.partnership isknown as an actual partner.
Sleeping or document partner:
A sleeping partner is one who does not take an an active part in the conduct of the business firm. He like the other partners, invests capital and shares in the profit of the business.
Nominal partner:
A partner who lends his name to the firm,undisclosed principle but real intrest in it, is called a nominal partner, he does not invest in the business of the firm.nor does not he share in the profits or take part in the management of the business of the firm.
Saturday, August 29, 2009
Implied authority.
No implied authority:
In the absence of any usage or custom of trade to the country, the implied authority of a partner does not empower him to-
Implied authority and third party:
1.extension and restriction:
of a partner ‘s implied authority the partners in a firm may, by construct between them, extend or restrict the implied authority of any partner.
2.effect of admission by a partner:
where a partner makes any admission or representation concerning the affairs of the firm.it is sufficient evidence against the firm provided the admission or representation of business.
In the absence of any usage or custom of trade to the country, the implied authority of a partner does not empower him to-
Implied authority and third party:
1.extension and restriction:
of a partner ‘s implied authority the partners in a firm may, by construct between them, extend or restrict the implied authority of any partner.
2.effect of admission by a partner:
where a partner makes any admission or representation concerning the affairs of the firm.it is sufficient evidence against the firm provided the admission or representation of business.
Implied authority.
No implied authority:
In the absence of any usage or custom of trade to the country, the implied authority of a partner does not empower him to-
Implied authority and third party:
1.extension and restriction:
In the absence of any usage or custom of trade to the country, the implied authority of a partner does not empower him to-
Implied authority and third party:
1.extension and restriction:
of a partner ‘s implied authority the partners in a firm may, by construct between them, extend or restrict the implied authority of any partner.
2.effect of admission by a partner:
where a partner makes any admission or representation concerning the affairs of the firm.it is sufficient evidence against the firm provided the admission or representation of business.
implied authority
No implied authority:
In the absence of any usage or custom of trade to the country, the implied authority of a partner does not empower him to-
Implied authority and third party:
1.extension and restriction:
In the absence of any usage or custom of trade to the country, the implied authority of a partner does not empower him to-
Implied authority and third party:
1.extension and restriction:
of a partner ‘s implied authority the partners in a firm may, by construct between them, extend or restrict the implied authority of any partner.
2.effect of admission by a partner:
where a partner makes any admission or representation concerning the affairs of the firm.it is sufficient evidence against the firm provided the admission or representation of business.
Relation of partnership
Relations of partners to third partners:
Every partner is the agent of the firm for the purpose of the business of the firm. He can act on behalf of the firm and bind the firm provided he does the carrying act on the usual way, business of the kind carried on by the firm.
Implied authority of a partner:
The authority of a partner means the capacity of a part Near to bind firm by his act.this authority may be express or implied. Where the authority to a partner to act is expressly conferred by an agreement,it is called express authority.
Acts within the implied authority of a partner:
In a trading firm, a firm which depends for its existence on the buying and selling of goods the implied authority of apartner has been held to include.
Every partner is the agent of the firm for the purpose of the business of the firm. He can act on behalf of the firm and bind the firm provided he does the carrying act on the usual way, business of the kind carried on by the firm.
Implied authority of a partner:
The authority of a partner means the capacity of a part Near to bind firm by his act.this authority may be express or implied. Where the authority to a partner to act is expressly conferred by an agreement,it is called express authority.
Acts within the implied authority of a partner:
In a trading firm, a firm which depends for its existence on the buying and selling of goods the implied authority of apartner has been held to include.
Relation of partnership
Relations of partners to third partners:
Every partner is the agent of the firm for the purpose of the business of the firm. He can act on behalf of the firm and bind the firm provided he does the carrying act on the usual way, business of the kind carried on by the firm.
Implied authority of a partner:
The authority of a partner means the capacity of a part Near to bind firm by his act.this authority may be express or implied. Where the authority to a partner to act is expressly conferred by an agreement,it is called express authority.
Acts within the implied authority of a partner:
In a trading firm, a firm which depends for its existence on the buying and selling of goods the implied authority of apartner has been held to include.
Every partner is the agent of the firm for the purpose of the business of the firm. He can act on behalf of the firm and bind the firm provided he does the carrying act on the usual way, business of the kind carried on by the firm.
Implied authority of a partner:
The authority of a partner means the capacity of a part Near to bind firm by his act.this authority may be express or implied. Where the authority to a partner to act is expressly conferred by an agreement,it is called express authority.
Acts within the implied authority of a partner:
In a trading firm, a firm which depends for its existence on the buying and selling of goods the implied authority of apartner has been held to include.
Wednesday, August 26, 2009
Property and goodwill of the firm
Property of the firm:
It is open to partners to determine by agreement among them as to what shall be the property of the firm and what shall be the seprate property of one or more of the partners.
The property of the firm, in the absence of a contract to the contrary includes-
1.all property originally brought into the common stock of the firm;
2.all rights or interests in the property, originally so brought.
3.all property acquired for the proposed and in the course of the business of the firm.
4.good will of the business of the firm.
Goodwill:
The property of a firm, in the absence of a contract to the country includes the goodwill of the business the term goodwill is not defined in the acyt. It is property speaking a commercial rather than a legal term.
Agreement between partners in restraint of trade:
Every agreement by which anyone is restrained from excersicing a lawful profession, trade or business of any kind is, to that extant, void, but the partners of a firm may agree that a partner shall not carry on any business other than that of the partner of the agreement.
It is open to partners to determine by agreement among them as to what shall be the property of the firm and what shall be the seprate property of one or more of the partners.
The property of the firm, in the absence of a contract to the contrary includes-
1.all property originally brought into the common stock of the firm;
2.all rights or interests in the property, originally so brought.
3.all property acquired for the proposed and in the course of the business of the firm.
4.good will of the business of the firm.
Goodwill:
The property of a firm, in the absence of a contract to the country includes the goodwill of the business the term goodwill is not defined in the acyt. It is property speaking a commercial rather than a legal term.
Agreement between partners in restraint of trade:
Every agreement by which anyone is restrained from excersicing a lawful profession, trade or business of any kind is, to that extant, void, but the partners of a firm may agree that a partner shall not carry on any business other than that of the partner of the agreement.
Duties of partners.
Duties of partner
Partnership is a contract of uberrinae fided the partners must act with ulmost good as the very basis of partnership is mutual trust and confidence.
These duties are summed up as under:
1.to carry on business to the greatest common advantage:
Every partner is bound to carry on the business of the firm to the greatest common advantage. He is bound, in all transactions affecting the partnership.
2.to abserve faith:
Partnership is a fiduciary relation. Every partner must be just and faithful, and observe ulmost good faith towords every other partner of the firm.
3.to identify for froud:
Every partner is boundto indeminity the firm for any loss caused to it by his froud in the conduct of the business of the firm. This is an absolute duty of a partner and no partner himself and contract out of it.
4.to attend diligenty:
Subject to contract between the entitled to partners it is the duty of every partner to attend diligently to his duties in the conduct of the business of the firm in to all the partners.
5.not to claim remuneration:
A partner is not entitled to receive any remuneration in any form for taking part in the conduct of the business of the firm.
Partnership is a contract of uberrinae fided the partners must act with ulmost good as the very basis of partnership is mutual trust and confidence.
These duties are summed up as under:
1.to carry on business to the greatest common advantage:
Every partner is bound to carry on the business of the firm to the greatest common advantage. He is bound, in all transactions affecting the partnership.
2.to abserve faith:
Partnership is a fiduciary relation. Every partner must be just and faithful, and observe ulmost good faith towords every other partner of the firm.
3.to identify for froud:
Every partner is boundto indeminity the firm for any loss caused to it by his froud in the conduct of the business of the firm. This is an absolute duty of a partner and no partner himself and contract out of it.
4.to attend diligenty:
Subject to contract between the entitled to partners it is the duty of every partner to attend diligently to his duties in the conduct of the business of the firm in to all the partners.
5.not to claim remuneration:
A partner is not entitled to receive any remuneration in any form for taking part in the conduct of the business of the firm.
Rights of a partner
Rights of a partner:
1.right to take part in business:
The partnershipagreement usually provide the mode of the conduct of the business. Subject to any such agreement between the partners the conduct the business.
2.right to be consulted:
Every partner has an inherent right to be consulted in all matters affecting the business of the partnership and express his views before any dicision is taken by the partners.
3.right of access to accounts:
Subject to contract between the partners, every partner has a right to have access to and inspect and copy any of the books of the person.
4.right to share in profits:
In the absence of any agreement, the partners are entiteled to share equity in the profits earned and are liable acontribute by the firms.
5.right to intrest on capital:
The partnership agreement may contain a clause as to the right of the partners to claims intrest on capital at certain rate. The partners is payable only out of profits, if any, earned by the firm.
6.right to retire:
A partner has a right to retire with the consent of all the other partners. In accordance with an express agreement between the partners of his intension to retire.
1.right to take part in business:
The partnershipagreement usually provide the mode of the conduct of the business. Subject to any such agreement between the partners the conduct the business.
2.right to be consulted:
Every partner has an inherent right to be consulted in all matters affecting the business of the partnership and express his views before any dicision is taken by the partners.
3.right of access to accounts:
Subject to contract between the partners, every partner has a right to have access to and inspect and copy any of the books of the person.
4.right to share in profits:
In the absence of any agreement, the partners are entiteled to share equity in the profits earned and are liable acontribute by the firms.
5.right to intrest on capital:
The partnership agreement may contain a clause as to the right of the partners to claims intrest on capital at certain rate. The partners is payable only out of profits, if any, earned by the firm.
6.right to retire:
A partner has a right to retire with the consent of all the other partners. In accordance with an express agreement between the partners of his intension to retire.
Time and alteration of registration
Time of registration:
As to the time of the registration of a firm, there is no define provision in the act however, lays down that no suit to enforce a right arising from a contract can be instituted in any court by or on behalf of a firm against any third party person unless the firm is registered and the persons suing partners in the firm.
Effects of non registration:
1.suits between partners and firm.
2.suits between firm and third parties.
3.claim of set-off.
Alteration:
If any alteration relating to the following matters takes place in the case of a registered firm, astatement or intimation is to be sent to the register of firms for incorporating the necessary change in the registered.
Relations of partners to one another:
The relations of the partners of a partners of affirm to one another are usally governed by the agreement among them. Such agreement among them. Such agreement may be express or may be implied from the course of dealing among them.
As to the time of the registration of a firm, there is no define provision in the act however, lays down that no suit to enforce a right arising from a contract can be instituted in any court by or on behalf of a firm against any third party person unless the firm is registered and the persons suing partners in the firm.
Effects of non registration:
1.suits between partners and firm.
2.suits between firm and third parties.
3.claim of set-off.
Alteration:
If any alteration relating to the following matters takes place in the case of a registered firm, astatement or intimation is to be sent to the register of firms for incorporating the necessary change in the registered.
Relations of partners to one another:
The relations of the partners of a partners of affirm to one another are usally governed by the agreement among them. Such agreement among them. Such agreement may be express or may be implied from the course of dealing among them.
Rigistration of partnership firms.
Particular partnership:
When a person becomes a partner with another person or persons in a particular adventure or undertaking. Such a partnership is known as particular partnership.it comes to an end as soon as that adventure completed.
Registration of firms:
The partnership act does not provide for the compelsary registration firms. It has left it to the option of the firms to get themselves registered. But indirectly. By creating certain disabilities from which an unregistered firm suffers.
Procedure of registeration:
The registration of a firm may be effored at any time by filling an application in the firm of the statement,giving the necessary information, with the register of firms of the area.
The application for registration of a firm shall be accompanied by the prescribed fee. It shaal state:
1.the name of the firm.
2.the place or principle place of business of the firm.
3.the names of other places where the firm carries on business.
4.the date when each partner joined the firm.
5.the names in full ans permanent addresses of the partnership.
6.the duration of the firm.
The statement shall be signed by all the partners or by their agents specially authorized in the behalf.
When a person becomes a partner with another person or persons in a particular adventure or undertaking. Such a partnership is known as particular partnership.it comes to an end as soon as that adventure completed.
Registration of firms:
The partnership act does not provide for the compelsary registration firms. It has left it to the option of the firms to get themselves registered. But indirectly. By creating certain disabilities from which an unregistered firm suffers.
Procedure of registeration:
The registration of a firm may be effored at any time by filling an application in the firm of the statement,giving the necessary information, with the register of firms of the area.
The application for registration of a firm shall be accompanied by the prescribed fee. It shaal state:
1.the name of the firm.
2.the place or principle place of business of the firm.
3.the names of other places where the firm carries on business.
4.the date when each partner joined the firm.
5.the names in full ans permanent addresses of the partnership.
6.the duration of the firm.
The statement shall be signed by all the partners or by their agents specially authorized in the behalf.
Tuesday, August 25, 2009
Duration of partnership.
Duration of partnership:
The partners may, at the time when they enter into partnership agreement fix the duration of the partners or may say nothing about it. In the former case, the partnership is called a partnership for a fixed term, and in the letter case, a partnership at will.
Partnership for a fixed term:
In this case the partnership is entered into for a fixed period of time. When the fixed period is over, it comes to an end. The partners may, however, continue to carry on the business of the fixed period.
Particular partnership:
When a person becomes a partner with another person or persons in aparticular adenture or understanding such apartnership is known as particular partnership. It comes to an end soon as that adventure is completed.
Partnership at will:
Where no provision is made by contract of the between the partners for the duration of the partnership or for the determinant is partnership at will may be solved by any partner by giving a notice in writing to all other partners of his firm.
The partners may, at the time when they enter into partnership agreement fix the duration of the partners or may say nothing about it. In the former case, the partnership is called a partnership for a fixed term, and in the letter case, a partnership at will.
Partnership for a fixed term:
In this case the partnership is entered into for a fixed period of time. When the fixed period is over, it comes to an end. The partners may, however, continue to carry on the business of the fixed period.
Particular partnership:
When a person becomes a partner with another person or persons in aparticular adenture or understanding such apartnership is known as particular partnership. It comes to an end soon as that adventure is completed.
Partnership at will:
Where no provision is made by contract of the between the partners for the duration of the partnership or for the determinant is partnership at will may be solved by any partner by giving a notice in writing to all other partners of his firm.
Patnership and other associates
Partnership and other associations
Partnership and hindu undivided family:
A business in hindu undivided family law is aheartable asset. If an ancestral business sescends on the members of a joint hindu family, or if they start a common business out of joint funds at any time after the death of such a business is a called family business. The points of distinction between the two are as followes:
1.mode of creation.
2.intrest in business.
3.admision of new members.
4.authority of members.
5.liability of members.
6.right of members to demand accounts.
7.registration.
Partnership and co-ownership:
Co-ownership means joint ownership of some properly which does not necessarily result in partnership. In partnership the patners are necessarily co-owners of property of the firm.the following are the ponts of difference between the two:
1.mode of creation.
2.business.
3.nature of intrest.
4.transfer of intrest.
5.lien for expenses.
Clubs:
A club or a society, such as cricket club or a debating society or a residents welfare socity is not a partnership. It is formed to earn profit and its members are not agents of one another and as such are not liable to acts.
Patnership and other associates
Partnership and other associations
Partnership and hindu undivided family:
A business in hindu undivided family law is aheartable asset. If an ancestral business sescends on the members of a joint hindu family, or if they start a common business out of joint funds at any time after the death of such a business is a called family business. The points of distinction between the two are as followes:
1.mode of creation.
2.intrest in business.
3.admision of new members.
4.authority of members.
5.liability of members.
6.right of members to demand accounts.
7.registration.
Partnership and co-ownership:
Co-ownership means joint ownership of some properly which does not necessarily result in partnership. In partnership the patners are necessarily co-owners of property of the firm.the following are the ponts of difference between the two:
1.mode of creation.
2.business.
3.nature of intrest.
4.transfer of intrest.
5.lien for expenses.
Clubs:
A club or a society, such as cricket club or a debating society or a residents welfare socity is not a partnership. It is formed to earn profit and its members are not agents of one another and as such are not liable to acts.
Partnership and hindu undivided family:
A business in hindu undivided family law is aheartable asset. If an ancestral business sescends on the members of a joint hindu family, or if they start a common business out of joint funds at any time after the death of such a business is a called family business. The points of distinction between the two are as followes:
1.mode of creation.
2.intrest in business.
3.admision of new members.
4.authority of members.
5.liability of members.
6.right of members to demand accounts.
7.registration.
Partnership and co-ownership:
Co-ownership means joint ownership of some properly which does not necessarily result in partnership. In partnership the patners are necessarily co-owners of property of the firm.the following are the ponts of difference between the two:
1.mode of creation.
2.business.
3.nature of intrest.
4.transfer of intrest.
5.lien for expenses.
Clubs:
A club or a society, such as cricket club or a debating society or a residents welfare socity is not a partnership. It is formed to earn profit and its members are not agents of one another and as such are not liable to acts.
Patnership firm.
Partners, firm, firm name:
A firm name shall not contain any words expressing or impliying the sanction, approvel or patronage of the government. The state government may, however, signify its consent to the use of such words by a firm as part of name by order in writing.
In order to determine the existence of partnership between a group of persons. The definition of one must look to the agreement between them. If the agreement is to share the profits of a business, and the business is carried on by all or any of them acting for all, there is partnership, otherwise not.
partnership and firm:
Partnership is merely an abstract legal relation between the partners. It is in other words an obstracting a firm is a collection name for all the partners. It is a concrete thing. Partnership may be styled as the invisible body bound together.
A firm name shall not contain any words expressing or impliying the sanction, approvel or patronage of the government. The state government may, however, signify its consent to the use of such words by a firm as part of name by order in writing.
In order to determine the existence of partnership between a group of persons. The definition of one must look to the agreement between them. If the agreement is to share the profits of a business, and the business is carried on by all or any of them acting for all, there is partnership, otherwise not.
partnership and firm:
Partnership is merely an abstract legal relation between the partners. It is in other words an obstracting a firm is a collection name for all the partners. It is a concrete thing. Partnership may be styled as the invisible body bound together.
Farmation of a partnership
Formation of partnership:
A partnership is based on an he agreement. The partnership agreement may be made orally or in writing or may be implied from the course of dealing among partners.all the essential elements of the valid contract must be present.
Partnership deed:
The agreement creating partnership may be expressed or implied, and the latter may be inferred from the conduct or the course of dealing of the partners or form the circumstances of the cases. That the agreement are writing proses.
Who may be partners?
A contracts of partnership may be entered into by every person who is complient to enter into a contract of the Indian contract act, alien enemy,minor,person of unsound mind,corporation.
A partnership is based on an he agreement. The partnership agreement may be made orally or in writing or may be implied from the course of dealing among partners.all the essential elements of the valid contract must be present.
Partnership deed:
The agreement creating partnership may be expressed or implied, and the latter may be inferred from the conduct or the course of dealing of the partners or form the circumstances of the cases. That the agreement are writing proses.
Who may be partners?
A contracts of partnership may be entered into by every person who is complient to enter into a contract of the Indian contract act, alien enemy,minor,person of unsound mind,corporation.
Farmation of a partnership
Formation of partnership:
A partnership is based on an he agreement. The partnership agreement may be made orally or in writing or may be implied from the course of dealing among partners.all the essential elements of the valid contract must be present.
Partnership deed:
The agreement creating partnership may be expressed or implied, and the latter may be inferred from the conduct or the course of dealing of the partners or form the circumstances of the cases. That the agreement are writing proses.
Who may be partners?
A contracts of partnership may be entered into by every person who is complient to enter into a contract of the Indian contract act, alien enemy,minor,person of unsound mind,corporation.
A partnership is based on an he agreement. The partnership agreement may be made orally or in writing or may be implied from the course of dealing among partners.all the essential elements of the valid contract must be present.
Partnership deed:
The agreement creating partnership may be expressed or implied, and the latter may be inferred from the conduct or the course of dealing of the partners or form the circumstances of the cases. That the agreement are writing proses.
Who may be partners?
A contracts of partnership may be entered into by every person who is complient to enter into a contract of the Indian contract act, alien enemy,minor,person of unsound mind,corporation.
Nature of partnership
NATURE OF PARTNERSHIP
Partnership:
Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all.
Essential elements of partnership:
1.association of two or more persons: there should be at least two competent persons to firm a partnership. As regards the maximum number of partners in a firm.
2.agreement: the partnership relation is one of contractual nature it arises from contract and not from status agreement between the partners is the basis of the contract.the agreement may be express or implied contract.
3.business: a partnership can be formed only for the purpose of the carriying some business.are the profession.
4.sharing a business:the objectect of partnership must be to make profit. Profit means net profit,profits must be distributed among the partners in an agreed ratio.
Partnership:
Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all.
Essential elements of partnership:
1.association of two or more persons: there should be at least two competent persons to firm a partnership. As regards the maximum number of partners in a firm.
2.agreement: the partnership relation is one of contractual nature it arises from contract and not from status agreement between the partners is the basis of the contract.the agreement may be express or implied contract.
3.business: a partnership can be formed only for the purpose of the carriying some business.are the profession.
4.sharing a business:the objectect of partnership must be to make profit. Profit means net profit,profits must be distributed among the partners in an agreed ratio.
Difference for company and partnership
Company distinguished from partnership:
Partnership is the relation between profits of a persons who have agreed to share the profits of a business carried on by all or any of them acting for all.
The principle differences between a company and a partnership are as followes:
1.regulating act:
a company is regulated by the companies act,1956. While the act 1932.indian partnership act.
2. mode of creation:
a company comes into he existence after registration under companies act,1956.registration is not complesary in the case of a partnership.
3.legal status:
a company has a legal personisfaction of the company debtality distinct from that of its members.made up of several persons who compose it.
4.liability of members:
The liability of the members of a company to contribute towards and liabilities is limited, where as partnership was fully liable of partners.
5.management:
The affairs of a company are managed by its directors o and management , and its members, and have a no right take part in the management.
6.number of members:
a)minimum. The minimum number of partners in affirm is 2 whereas the minimum number of members in aprivate company.
b) maximum . the maximum number of partners in affirm carrying on banking business can be 10 and in any other business 20. The minimum number of members in private company is 50.
7.powers:
a partnership firm can do anything which the partners agree to do and there is no limit to its activities; a company powers are limited to those allowed by the objects clouse sections.
Partnership is the relation between profits of a persons who have agreed to share the profits of a business carried on by all or any of them acting for all.
The principle differences between a company and a partnership are as followes:
1.regulating act:
a company is regulated by the companies act,1956. While the act 1932.indian partnership act.
2. mode of creation:
a company comes into he existence after registration under companies act,1956.registration is not complesary in the case of a partnership.
3.legal status:
a company has a legal personisfaction of the company debtality distinct from that of its members.made up of several persons who compose it.
4.liability of members:
The liability of the members of a company to contribute towards and liabilities is limited, where as partnership was fully liable of partners.
5.management:
The affairs of a company are managed by its directors o and management , and its members, and have a no right take part in the management.
6.number of members:
a)minimum. The minimum number of partners in affirm is 2 whereas the minimum number of members in aprivate company.
b) maximum . the maximum number of partners in affirm carrying on banking business can be 10 and in any other business 20. The minimum number of members in private company is 50.
7.powers:
a partnership firm can do anything which the partners agree to do and there is no limit to its activities; a company powers are limited to those allowed by the objects clouse sections.
Corporate veil
The corporate veil
From the jurstic point of view, a company is a legal personal distinct from its members. This principle may be refered to as “the veil of incorporation”. The courts in genral consider themselves bound by this principle.
Exceptions:
1.protection of revenue.
2.prevention of froud or inproper conduct.
3.determination of cherecter of a company whether it is enemy.
4.where the company is a sham.
5.company avoiding legal obligation.
From the jurstic point of view, a company is a legal personal distinct from its members. This principle may be refered to as “the veil of incorporation”. The courts in genral consider themselves bound by this principle.
Exceptions:
1.protection of revenue.
2.prevention of froud or inproper conduct.
3.determination of cherecter of a company whether it is enemy.
4.where the company is a sham.
5.company avoiding legal obligation.
6.company acting as agent or trustee of the shareholders.
7.avoidence of welfare legislation.
8.protecting public policy.
Statutory exeptions:
If a company carries on business for more than 6 months after the number has been reduced below 7 in case of a public company or 2 in case of a private company.
1.number of members below statutory minimum.
2.failure to refund application money.
3.misdespertion of company name.
4.fradulment of trading.
5.holding and subsidery company.
7.avoidence of welfare legislation.
8.protecting public policy.
Statutory exeptions:
If a company carries on business for more than 6 months after the number has been reduced below 7 in case of a public company or 2 in case of a private company.
1.number of members below statutory minimum.
2.failure to refund application money.
3.misdespertion of company name.
4.fradulment of trading.
5.holding and subsidery company.
Corporate veil
The corporate veil
From the jurstic point of view, a company is a legal personal distinct from its members. This principle may be refered to as “the veil of incorporation”. The courts in genral consider themselves bound by this principle.
Exceptions:
1.protection of revenue.
2.prevention of froud or inproper conduct.
3.determination of cherecter of a company whether it is enemy.
4.where the company is a sham.
5.company avoiding legal obligation.
6.company acting as agent or trustee of the shareholders.
7.avoidence of welfare legislation.
8.protecting public policy.
Statutory exeptions:
If a company carries on business for more than 6 months after the number has been reduced below 7 in case of a public company or 2 in case of a private company.
1.number of members below statutory minimum.
2.failure to refund application money.
3.misdespertion of company name.
4.fradulment of trading.
5.holding and subsidery company.
From the jurstic point of view, a company is a legal personal distinct from its members. This principle may be refered to as “the veil of incorporation”. The courts in genral consider themselves bound by this principle.
Exceptions:
1.protection of revenue.
2.prevention of froud or inproper conduct.
3.determination of cherecter of a company whether it is enemy.
4.where the company is a sham.
5.company avoiding legal obligation.
6.company acting as agent or trustee of the shareholders.
7.avoidence of welfare legislation.
8.protecting public policy.
Statutory exeptions:
If a company carries on business for more than 6 months after the number has been reduced below 7 in case of a public company or 2 in case of a private company.
1.number of members below statutory minimum.
2.failure to refund application money.
3.misdespertion of company name.
4.fradulment of trading.
5.holding and subsidery company.
Nature and cheracteristics of company
Nature of company:
A company, in common parlance, means a group of persons associations together for the attainment of commen end, social economic.
Company:
A voluntary association of persons, a company, in broad sense, may mean an association of individuals formed for some common purpose, but voluntary association of persons.
Characteristics of a company:
1.separate legal entity:
A company is in law regarded as an entity separate from its members. In other words, it has an independent corporate existence.
2.limited liability:
A company may be a company limited by shares or a company limited by gurantee. In a company by shares.
3.perpectual succession:
A company is a juristic person with a perpectual succession.
4.common seal:
Since a company has no physical existence, it must act through its agents and all such contracts entered into by the own seal of company.
5.capacity to sue:
A company can sue and be sued in its corporate name. it may be also infilict or suffer wrongs. It can in fact do or have done to it most of things being.
A company, in common parlance, means a group of persons associations together for the attainment of commen end, social economic.
Company:
A voluntary association of persons, a company, in broad sense, may mean an association of individuals formed for some common purpose, but voluntary association of persons.
Characteristics of a company:
1.separate legal entity:
A company is in law regarded as an entity separate from its members. In other words, it has an independent corporate existence.
2.limited liability:
A company may be a company limited by shares or a company limited by gurantee. In a company by shares.
3.perpectual succession:
A company is a juristic person with a perpectual succession.
4.common seal:
Since a company has no physical existence, it must act through its agents and all such contracts entered into by the own seal of company.
5.capacity to sue:
A company can sue and be sued in its corporate name. it may be also infilict or suffer wrongs. It can in fact do or have done to it most of things being.
One company
One –man company:
This is a company in which one man holds practically the whole of the share capital of the company, and in order to meet the statutory requirement of minimum number of members, some dummy members who are mostly his relations or friends it one with limited liability.
Prohibition of large partnership:
Illegal association:
A company, association or partnership consisting of more than 10 persons for the purpose of carriying on banking business and of more than 20 persons for the purpose of carriying on any other business with the company act.
Consequences of illegal association:
The consequences of an illegal association are as followes:
1.personel liability:
Every member of an illegal association is persanolity liable for all liability incurred in the business and his punishable with fine which may extend to rs.10,000.
2.contracts.
An illegal associations cannot enter into any contract nor can it sue any member or outsiders.
3.winding up.
An illegal association cannot be wound up under the companies act either at the instance of a creditor, or a member or the association itself. The tribunal will do nothing in relation to it that will amount recoginisation.
This is a company in which one man holds practically the whole of the share capital of the company, and in order to meet the statutory requirement of minimum number of members, some dummy members who are mostly his relations or friends it one with limited liability.
Prohibition of large partnership:
Illegal association:
A company, association or partnership consisting of more than 10 persons for the purpose of carriying on banking business and of more than 20 persons for the purpose of carriying on any other business with the company act.
Consequences of illegal association:
The consequences of an illegal association are as followes:
1.personel liability:
Every member of an illegal association is persanolity liable for all liability incurred in the business and his punishable with fine which may extend to rs.10,000.
2.contracts.
An illegal associations cannot enter into any contract nor can it sue any member or outsiders.
3.winding up.
An illegal association cannot be wound up under the companies act either at the instance of a creditor, or a member or the association itself. The tribunal will do nothing in relation to it that will amount recoginisation.
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