Contract Act for Entrepreneurs

CONTRACT ACT FOR ENTREPRENEURS

 by : DR. T.K. JAIN AFTERSCHO☺OL centre for social entrepreneurship sivakamu veterinary hospital road  bikaner 334001 rajasthan, india FOR – PGPSE – PGPSE / CSE PARTICIPANTS mobile : 91+9414430763 5 DECEMBER 09

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My words....

Here I present a few basic questions qu estions on contract law. I wish that more  people should become entrepreneurs. An ordinary Indian In dian entrepreneur  wishes to remain an honest entrepreneur and contribute to the development of nation but we have h ave to strengthen those institutions which truly promote entrepreneurship, not just degree granting institutions. Let us work together  to promote knowledge, wisdom, social development and education. We  believe in free education for all, free support su pport for all, entrepreneurship opportunities and training for all. Let us work together for these goals. ... I alone cant do much, I need support of perosns like you .......... ...

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A principal revokes an agency,  but the agent is not aware of it and makes a contract, will the contract  be valid ?

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Answer 

Yes agency is revoked when the agent comes to know about its revocation. In this case, the agent is not aware of revocation, so the agency is still valid. 5 DECEMBER 09

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What are the cases, when agency cannot be revoked at all ?

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Solution

Agency cannot be revoked in following cases : 1. agency with interest 2. agent has already incurred personal liability 3. agent has partly exercised his authority

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What is agency with interest ?

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Answer 

When the agent has some interest attached to the agency, it is called agency with interest (read sec. 202)

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What are the duties of an agent ?

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Solution He must act within his scope he must keep true accounts he must give material information to the  principal he must follow the instructions of principal he must not make secret profit, act honestly and reasonably he must not reveal confidential information of  the principal 5 DECEMBER 09

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When does agency terminate ?

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Answer  In the following cases : 1After specified time 2 when the object of agency is destroyed 3 when agency is revoked 4 when agency is renunciated by the agent 5 when the principal dies / becomes lunatic 6 as per agreement 5 DECEMBER 09

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Who is a factor ?

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Answer 

A factor is a mercantile agent employed to sell goods which have been placed in his possession or contract to buy goods for his principal.

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When can a finder of lost goods sell them ?

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Answer  where the owner cannot with reasonable diligence be found, or  when found, he refuses to pay the lawful charges of  the finder and—  if the thing is in danger of perishing or losing greater   part of its value, or  when the lawful charges of the finder for the  preservation of goods and the finding out of the owner  amounts to two-thirds of the value of the thing (Section 169). 5 DECEMBER 09

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What is bailment ?

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Answer 

Bailment is a voluntary delivery of goods for a temporary purpose on the understanding that they are to be returned in specie in the same or altered form. The ownership of the goods remains with the bailor, the bailee getting only the possession.

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What is gratuitous bailment ?

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Answer  A gratuitous bailment is one in which neither the bailor nor the bailee is entitled to any remuneration. Such a bailment may be for the exclusive benefit of the bailor, e.g., when A leaves his cow with a neighbour to be looked after in A’s absence on a holiday. 5 DECEMBER 09

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What is a contract of indemnity ?

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Answer 

A contract of indemnity is a contract by which one party promises to save the other  party from loss caused to him by the conduct of the promisor himself, or by the conduct of any other person 5 DECEMBER 09

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What is an injunction ?

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Answer 

An injunction, is an order of a Court restraining a person from doing a particular act. It is a mode of  securing the specific performance of a negative term of the contract

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What is liquidated damages?

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Answer 

Where the contracting parties fix at the time of contract the amount of damages that would be payable in case of breach, it is called liquidated damages

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What is novation of a contract ?

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Answer 

when a new contract is substituted for existing contract either  between the same parties or between different parties, the consideration mutually being the discharge of the old contract.

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What the cases when specific  performance of contract is not ordered ?

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Answer  IN THE FOLLOWING CASES : where monetary compensation is an adequate remedy where the Court cannot supervise the execution of the contract, where the contract is for personal service where one of the parties is a minor. 5 DECEMBER 09

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WHAT ARE THE RESPONSIBILITIES OF THE FINDER OF THE LOST GOODS?

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ANSWER 

The liability of a finder of goods belonging to someone else is that of a bailee. This means that he must take as much care of  the goods as a man of ordinary prudence would take of his own goods of the same kind. 5 DECEMBER 09

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What are the responsibilities of a  person who is getting gratuitous  benefits ?

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Answer 

Section 70 of the Indian Contract Act provides that where a person lawfully does something for  another person or delivers anything to him without any intention of doing so gratuitously and the other person accepts and enjoys the benefit thereof, the latter must compensate the former or  restore to him the thing so delivered. 5 DECEMBER 09

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What is a contingent contract ?

As per Section 31, a contingent contract is a contract to do or not to do something, if some event collateral to such contract, does or does not happen.

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What are the principles on which quasi contracts are based ?

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Answer  A quasi contract is an obligation. It is an obligation of a person towards another  person because he has got something unjustifiably. It is based on the equitable principle that a person shall not be allowed to enrich himself unjustly at the expense of another  5 DECEMBER 09

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What is the extent of liability of  the surety ?

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Answer 

As per sec. 128 :The liability of the surety is co-extensive with that of the principal debtor unless the contract otherwise provides . A creditor can even sue the surety without sueing the principal debtor. 5 DECEMBER 09

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What is pledge ?

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Answer 

Pledge or pawn is a contract whereby an an article is deposited with a lender of  money or promisee as security for the repayment of a loan or performance of a promise. 5 DECEMBER 09

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Download links .... http://www.scribd.com/doc/30778316/Permutations http://www.scribd.com/doc/30778304/Differentiati http://www.scribd.com/doc/30778217/Unitary-Met http://www.scribd.com/doc/30778090/Questions-o http://www.scribd.com/doc/30646219/Mock-Interv http://www.scribd.com/doc/30888753/General-Kno 5 DECEMBER 09

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Download links .... http://www.scribd.com/doc/30778316/Permutations http://www.scribd.com/doc/30778304/Differentiati http://www.scribd.com/doc/30778217/Unitary-Met http://www.scribd.com/doc/30778090/Questions-o http://www.scribd.com/doc/30646219/Mock-Interv http://www.scribd.com/doc/30888753/General-Kno 5 DECEMBER 09

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Download links ..... http://www.scribd.com/doc/30646577/Afterschoool http://www.scribd.com/doc/11953346/Mathematics http://www.scribd.com/doc/11867744/Management http://www.brijj.com/group/gmat-entrance-exam--p http://www.docstoc.com/docs/3921499/ENGLISHhttp://www.docstoc.com/docs/3967158/basiC-MA http://www.authorstream.com/Presentation/tkjainb http://www.authorstream.com/Presentation/tkjainb 5 DECEMBER 09

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Spread the concepts of  AFTERSCHOOOL Join PGPSE start CENTRES of AFTERSCHOOOL spread entrepreneurship & social entrepreneurship let us work for social upliftment together  let us work for some common goals conduct workshops on social entrepreneurship make your career in social entrepreneurship 5 DECEMBER 09

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THANKS.... GIVE YOUR SUGGESTIONS AND JOIN AFTERSCHOOOL NETWORK / START AFTERSCHOOOL SOCIAL ENTREPRENEURSHIP NETWORK IN YOUR CITY / COLLEGE [email protected] PGPSE – WORLD'S MOST COMPREHENSIVE PROGRAMME IN SOCIAL ENTREPRENEURSHIP 5 DECEMBER 09

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