Business Law

Definition: A Promissory Note, as the name itself gives a brief description, is a legal financial instrument issued by one party, promising to pay the debt owed to another party. It is a written negotiable instrument duly signed by the maker that contains an unconditional promise to pay the stated sum of money to a particular person or to any other person, on the order of … [Read more...] about Promissory Note

Definition: Bill of Exchange, can be understood as a written negotiable instrument, that carries an unconditional order to pay a specified sum of money to a designated person or the holder of the instrument, as directed in the instrument by the maker. The bill of exchange is either payable on demand, or after a specified term. In a business transaction, when the goods are … [Read more...] about Bill of Exchange

Definition: The term contract is defined as an agreement between two or more parties which has a binding nature, in essence, the agreement with legal enforceability is said to be a contract. It creates and defines the duties and obligations of the parties involved. Process of Contract First and foremost, an offer is made by one party to another, which when accepted by the … [Read more...] about Contract

Definition: The Memorandum of Understanding or MoU is the performance agreement between two or more parties wherein they agree on the common lines of action. Generally, the parties opt for a memorandum of understanding when they don’t want the agreement to be legally enforceable and just want written proof of their oral commitments to each other. However, whether the … [Read more...] about Memorandum of Understanding (MoU)