Negotiable instruments continue to hold a significant place in business because they are the primary means of payment and the way that trade obligations are fulfilled. It is crucial to remember that using negotiable instruments to send and receive payments has become much more common in today’s society. Negotiable instruments is defined as any transferable document that ensure the payment of a specified sum of money to the party mentioned on the document, either under duress or at a specified time. The Negotiable Instruments Act 1881, for instance, governs the rules pertaining to negotiable instruments in India. Upon the transfer of the negotiable instruments also called negotiation of the instrument, the holder in due course acquires the full legal responsibility to the instrument. Indeed, the negotiable instruments can either be transferred by either delivery or by endorsement and delivery. Classification of Negotiable Instruments 1. Inland Instrument A promissory note, bill Continue reading
Mercantile Law
Contingent Contracts
A contract may be unconditional or absolute on the one hand and conditional or contingent on the other. The absolute or unconditional contract is one without any reservations or conditions and is to be performed under any event. On the other hand, conditional or contingent contract is one in which a promise is conditional and the contract shall be performed only on the happening or not happening of some future uncertain event. The event must be collateral to the contract. The condition may be precedent or subsequent. For example, goods are sent on approval, the contract is a contingent contract depending on the act of the buyer to accept or reject the goods. According to the section 31 of the contract Act 1872, “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.” A Contingent Continue reading
Statutory Meeting of a Company
Statutory Meeting is the first meeting of the shareholders of a public company. It must be held within a period of not less than one month nor more than 6 months from the date at which the company is entitled to commence business. It is held only once in the lifetime of a company. A private company and a company limited by guarantee and not having a share capital need not hold such a meeting. The purpose of the statutory meeting with its statutory report is to put the shareholders of the company in possession of all the important facts relating to the new company, what shares have been taken up, what moneys received etc. This also provides an opportunity to the shareholders of meeting to discuss the whole situation, the management and prospects of the company. The Board of Directors must, atleast 21 days before the day on which Continue reading
Legal Aspects of Marine Insurance
A contract of marine insurance is a contract whereby the insurer undertakes to indemnify the insured, against marine losses, that is to say, the losses incidental to marine adventure. It is a contract of indemnity. It is a contract ‘uberrimae fidei”. It must have insurable interest. The doctrine of subrogation applies to it. Read More: Marine Insurance Marine Insurance Claims Marine Adventure: There is a marine adventure when; Any ship, goods or movable property(i.e. insurable property) is exposed to maritime perils; The earning or acquisition of any freight, passage money, commission, profit or other pecuniary benefit, or the security for any advances, loans or disbursements is endangered by the exposure of insurable property to maritime perils; Any inability to a third party maybe incurred by the owner of, or other person interested in, insurable property by reason of maritime perils. ‘Insurable property’ means any ship, goods or other movables which Continue reading
Company Formation under the Companies Act of 1956
Formation of Companies under Companies Act, 1956 Select in order of preference a few suitable names, not less than four, ensuring that the name does not resemble the name of an existing Company. Apply to the jurisdictional Registrar of Companies to ascertain the availability of name in Form 1A along with mentioned fee. Registrar of Companies informs the status of the application within 14 days. If the name proposed is not available, apply again for a fresh name. Arrange for drafting of the Memorandum and Articles of Association(MA) through a Consultant, vetting of the same by the Registrar of the Companies and printing of the same. Arrange for stamping of the M & A as per Registrar of Companies instructions. Get the Memorandum and Articles of Association signed by, at least 2 persons in case of Private Limited Company, at least 7 persons in case of Public Limited Continue reading
Circumstances Under Which a Contract is Said to be Free
Two or more persons are said to consent when they agree upon the same thing in the same sense. Consent is said to be free when it is not caused by- Coercion, as defined in section 15, or Undue influence, as defined in section 16, or Fraud, as defined in section 17, or Misrepresentation, as defined in section 18, or Mistake, subject to the provisions of sections 20, 21, and 22. Consent is said to be so caused when it would not have been given but for the existence of such coercion, undue influence, fraud, misrepresentation, or mistake. Coercion: “Coercion” is the committing, or threatening to commit, any act forbidden by the Indian Penal Code (45 of 1860) or the unlawful detaining, or threatening to detain, any property, to the prejudice of any person whatever, with the intention of causing any person to enter into an agreement. Explanation: It is Continue reading