Business Law

Definition: Coercion is the primary element that vitiates free consent of the party. It refers to the method of inducing another party to act in a certain manner, which is against their will. In coercion, one party commits or threatens to commit an act which is not permissible under the Criminal Code. It also covers the detaining or threatening to detain the property, … [Read more...] about Coercion

Definition: Prospectus is an offer document or information brochure issued by a public company used for inviting offers from the general public for subscribing the shares. It contains all the material information as to the price and number of shares/convertible shares being offered for sale to the public, which helps the investors to take a rational decision regarding the … [Read more...] about Prospectus

Definition: In common parlance, consideration refers to something paid to someone in return for something else. In legal terminology, it can be understood as the price or compensation which has to be paid by the promisee to the promisor for doing or not doing an act. Consideration is necessary for a valid contract, in the absence of which a promise cannot be enforceable. It … [Read more...] about Consideration

Definition: In common parlance, the word 'indemnity' implies reimbursement against financial loss or protect someone from incurring a loss. In law, Contract of indemnity can be defined as a legal contract between two persons whereby one party commits to indemnify, i.e. to compensate or reimburse, the loss incurred to the other party, by the conduct of the party, who is … [Read more...] about Contract of Indemnity

Definition: Agency can be defined as the relationship between two persons, wherein a person has the authority to act on behalf of another, bind him/her into a legal relationship with the third party. There are two parties in a contract of agency - principal and agent. Contract of Agency is based on the fact that one person cannot perform all the transactions and so he can … [Read more...] about Contract of Agency

Definition: Pledge can be defined as that special form of bailment in which goods are bailed as security by one party to another, for the repayment of debt or performance of a promise. The party who deposits the goods is the bailor, called as pawnor, whereas the party who takes the possession of the goods or the one to whom the goods are deposited is the bailee, called as … [Read more...] about Pledge

Definition: In basic terms, bailment implies the "change in possession" or "to hand over". As per Contract Act, bailment can be understood as the transaction wherein delivery of any item by an individual (bailor) to another individual (bailee) takes place with a specific objective, under a contract. The contract states that the item has to be returned by the bailee to the … [Read more...] about Bailment

Definition: Voidable contract is that form of a contract, wherein one party to the contract has the right to put it to an end if it is discovered that the contract contains some defects, concerning the lack of free consent. This means that the party, whose consent is influenced, is in a position to deny performing his obligation, then such an agreement is called a voidable … [Read more...] about Voidable Contract

Definition: Void Contract, as the name suggests is a contract which fails to be enforceable by the court of law, is said to be a void contract, at the time when it discontinues enforceability. Hence we can say that any contract, which cannot be legally enforceable or which does not have any legal effect is a void contract. These contracts are once valid but are no longer … [Read more...] about Void Contract

Definition: In legal parlance, the word 'agreement' is used to mean a promise/commitment or a series of reciprocal promises which constitutes consideration for the parties to contract. In an agreement, one person offers or proposes something to another person, who in turn accepts the same. In other words, offer plus acceptance amounts to the agreement, or we can say that an … [Read more...] about Agreement