Section 4(1) of the sale of Goods Act defines a contract of sale of goods as – “a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price”. The definition of contract of sale of goods reveals that either actual sale or an agreement to sell both are covered under the act. But, there are certain differences between the two. Where in a contract of sale, the property in the goods is immediately transferred from the buyer to the seller it is called a sale. Where under a contract of sale, the transfer of property in the goods is to take place in the future or after the fulfillment of certain conditions, it is called ‘An agreement to sell”. A sale and an agreement to sell can be distinguished as:- i) Transfer of Property (Ownership): In a sale, the property in goods or the ownership is immediately transferred from the seller to the buyer. In an agreement to sell the property in the goods is not transferred immediately at the time of contract, but the ownership is transferred at a later time either at the expiry of a certain period or fulfillment of certain condition. Until then, the seller continues to be the owner of the ...

Sections 18 declares that from the point of view of the third parties a partner is an agent of the firm for the purposes of the business of the firm. Even if only one partner acts on behalf of the firm liable. One partner can make all the other partners liable only if he acts within his express or implied authority. Thus, it is the express and implied authority of the partners which decides the nature and extent of their authority to kind the firm. Express authority of a partner When a partner is expressly authorized by an agreement of all the partners to do certain acts on behalf of the firm, it is called the express authority of a partner. A partner can kind the firm by any such act which falls width the scope of his authority, even if it does not fall within the scope of business. Implied authority of a partner Such acts of a partner which are incidental to or usually done in the course of proper conduct of business come within the scope of his implied authority. Sections 19(1) & 22 lays done certain provisions. For an act to be covered within the implied authority it is necessary that, (a)        the act is done in the name of the form, (b)        in ...

Section 4 of Indian Partnership Act, 1932 defines Partnership as, “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”. The rights, duties and liabilities of partners make the mutual relationship between the partners more clear. Partners can themselves determined their rights by contract, but the  partnership act confers certain rights upon the partners. The rights and liabilities of partners can be illustrated as:- Rights of Partners i) Right to take part in the Conduct or Management of Business: Every partner, irrespective of the amount contributed by him, has an inherent right to participate in the conduct of business of the firm. However, by mutual agreement, some partners may be restricted to take part but, the right to participate in the management must be available to all ii) Right to be Consulted & To  Take Decisions by Majority: Before taking up any major decisions, it is the right of the partners to be consulted and heard. Any disagreement should be solved by majority decision. But, no change in the nature or constitution of the business can be done without the ...

Parties to various types of Negotiable Instruments: Drawer" or Drawee: The maker of a bill of exchange or cheque is called the "drawer"; the person thereby directed to pay is called the "drawee". Drawee in case of need: When in the bill or in any endorsement thereon the name of any person is given in addition to the drawee to be resorted to in case of need such person is called a "drawee in case of need". Acceptor: After the drawee of a bill has signed his assent upon the bill, or, if there are more parts thereof than one, upon one of such parts, and delivered the same, or given notice of such signing to the holder or to some person on this behalf, he is called the "acceptor". Acceptor for honor: When a bill of exchange has been noted or protested for non-acceptance or for better security, and any person accepts is supra protest for honor of the drawer or of any one of the endorsers, such person is called an "acceptor for honor". Payee: The person named in the instrument, to whom or to whose order the money is by the instrument directed to be paid, is called the "payee". Holder: The "holder" of a promissory note, bill of exchange or cheque means any person entitled in his ...

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 Company, each shall also write in his own hand his fathers name, occupation and address and number of shares subscribed for, and duly witnessed by at least one person who shall also write in his own hand his full details as above. The M & A should be dated on a date after ...

Section 2(13) defines a Director as, “any person occupying the position of director by whatever name called”. Thus, a person will be deemed to be a director if he performs the functions of a director, though he may be named differently. A director is that  person who has full control over the direct management and conduct of the company. The directors of a company are collectively referred as the “Board of Directors”, or “Board”. Only individuals can be directors. No body corporate, association or a firm can be appointed director of a company. Rights of Directors i) Right to Participate in the Affairs of the Company: A director, validly appointed, has a right to attend the meetings and participate in the affairs of the company regarding direction, supervision and control, etc. ii) Right to have Remuneration: Every director has a right to remuneration fixed either under any contract or under the articles of association of a company. The remuneration of the directors is not directly related to the profits of the company i.e. even if the company. The remuneration of the directors is not directly related to the profits of the company i.e. even if the company does not ...