What are Business Laws?

Business Laws

To start anything we must ensure that whatever business we are going to start it should have a legal entity, also no one makes fraud in business there are some laws for better and smooth business run.

The Business Laws are all about.
The Indian Contract Act,1872
The Sales of Goods Act,1930
The Indian Partnership Act,1932
The Limited Liability Partnership act,2008
The Companies Act,2013

And Various Legislations are enacted of the existing legislation. these legislation are updated and are amended with various time to time

The Indian Contract Act,1872

The Indian Contract Act, 1872 prescribes the law relating to contracts in India and is the key act regulating Indian contract law. The Act is based on the principles of English Common Law. It is applicable to all the states of India. It determines the circumstances in which promises made by the parties to a contract shall be legally binding. Under Section 2(h), the Indian Contract Act defines a contract as an agreement which is enforceable by law. The Act as enacted originally had 266 Sections, it had a wide scope

1. Offer 2(a): When one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other to such act or abstinence, he is said to make a proposal.

2. Acceptance 2(b): When the person to whom the proposal is made, signifies his assent there to, the proposal is said to be accepted.

3. Promise 2(b): A Proposal when accepted becomes a promise. In simple words, when an offer is accepted it becomes a promise.

4. Promisor and promisee 2(c): When the proposal is accepted, the person making the proposal is called as promisor and the person accepting the proposal is called as promisee.

5. Consideration 2(d): When at the desire of the promisor, the promisee or any other person has done or abstained from doing or does or abstains from doing or promises to do or to abstain from doing something such act or abstinence or promise is called a consideration for the promise. The price paid by one party for the promise of the other Technical word meaning QUID-PRO-QUO i.e. something in return.

6. Agreement 2(e): Every promise and set of promises forming the consideration for each other. In short,

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7. Contract 2(h): An agreement enforceable by Law is a contract.

Therefore, there must be an agreement and it should be enforceable by law.

8. Reciprocal Promises 2(f): Promises which form the consideration or part of the consideration for each other are called 'reciprocal promises'.

9. Void agreement 2(g): An agreement not enforceable by law is void.

10. Voidable contract 2(i): An agreement is a voidable contract if it is enforceable by Law at the option of one or more of the parties there to (i.e. the aggrieved party), and it is not enforceable by Law at the option of the other or others.

11. Void contract 2(j): A contract becomes void when it ceases to be enforceable by law.

The Sales of Goods Act,1930

The Indian Sale of Goods Act, 1930 is a Mercantile Law, which came into existence on 1 July 1930, during the British Raj, borrowing heavily from the Sale of Goods Act 1893. It provisions for the setting up of contracts where the seller transfers or agrees to transfer the title (ownership) in the goods to the buyer for consideration. It is applicable all over India, except Jammu and Kashmir. Under the act, goods sold from owner to buyer must be sold for a certain price and at a given period of time. The act was amended on 23 September 1963 and was renamed to the Sale of Goods Act, 1930. It is still in force in India

The definitions as per Section II (s.2 Of Sale of Goods Act 1930) of the Act are as follows:

Contract

A Contract of Sale is:an offer to buy for a price, or An offer to sell goods for a price, and the acceptance of such an offer.A contract may provide for:the immediate delivery of the goods, or

immediate payment of the price, orthe immediate delivery of the goods and payment both, or

for the delivery or payment by installments, or that the delivery or payment or both shall be postponed.per the Section 5 sub-clause (2) - Subject to the provisions of any law for the time being in force, a contract of sale may be made-

in writing or

by word of mouth, or

partly in writing and partly by word of mouth or

maybe implied from the conduct of the parties.

Goods

Goods are every kind of moveable property other than actionable claims and money, and include:

Stock and shares,

Growing crops,

Grass, and

Things attached to or forming part of the land which is agreed to be severed before sale or under the contract of sale.

Future goods are goods that are to be:

manufactured, or

produced, or

acquired, by the seller after making of the contract of sale

According to the act, the goods which form the subject of a contract of sale may be either existing goods, owned or possessed by the seller, or future goods and there may be a contract for the sale of goods the acquisition of which by the seller depends upon a contingency which may or may not happen. Whereby a contract of sale the seller purports to effect a present sale of future goods, the contract operates as an agreement to sell the goods.

The Indian Partnership Act, 1932

The Indian Partnership Act, 1932 was enacted in India in 1932. The Indian Partnership Act 1932 defines a partnership as a relation between two or more persons who agree to share the profits of a business run by them all or by one or more persons acting for them all. Section 27 of the Indian Contract Act, 1872, such contracts may provide that a partner shall not carry on any business other than that of the firm while he is a partner.

The Limited Liability Partnership act,2008

The Limited Liability Partnership Act, 2008 was enacted by the Parliament of India to introduce and legally sanction the concept of LLP in India. Unlike the general partnerships in India, LLP is a body corporate and legal entity separate from its partners, have Perpetual succession and any change in the partners of a LLP shall not affect the existence, rights or liabilities of the LLP.


LLP is a corporate business vehicle that enables professional expertise and entrepreneurial initiative to combine and operate in flexible, innovative and efficient manner, as a hybrid of companies & partnerships providing benefits of limited liability while allowing its members the flexibility for organizing their internal structure as a partnership.[2] LLP is a legal entity partnership act.

Separate Legal Entity- Continue its existence irrespective of changes in partners,
LLP itself can enter into contracts and hold properties,
Partners' Liability limited to the agreed contribution,
Professional & Non-professional (Businessmen), both can set up LLP.

The Companies Act,2013

The Companies Act 2013 is an Act of the Parliament of India on Indian company law which regulates incorporation of a company, responsibilities of a company, directors, dissolution of a company.