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
Pledge
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
Bailment
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
Voidable Contract
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
Void 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
Agreement
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
Revenue Expenditure
Definition: Revenue Expenditure, also known as Operating Expenses or OpEx refers to the expenditure incurred in the course of the day-to-day business activities i.e. in the production of goods and services and its sale, which facilitates revenue generation of the company. Such expenses do not increase the profit earning capacity of the business, rather it helps to maintain … [Read more...] about Revenue Expenditure
Secondary Market
Definition: Secondary market, colloquially known as the stock market is the market which provides a platform to the investors to trade in initially issued securities. This means that the securities, such as shares, bonds, debentures, futures, options, etc. are originally issued by the Corporates, Central and State government, and public bodies, in the primary market to the … [Read more...] about Secondary Market
Primary Market
Definition: Primary Market is a form of the capital market wherein new securities are sold by the companies for the very first time to the investors, to raise funds and that is why it is also acknowledged as New Issues Market (NIM). The process of selling the new securities, in the primary market is called underwriting, which is performed by a group called as underwriters or … [Read more...] about Primary Market
Capital Expenditure
Definition: Capital Expenditure or CapEx refers to the financial outlay made by the firm for an asset which is expected to stay in the business for a long time, so as to use the same for more than one financial year, which not only generates enduring benefits for the company but ensures the generation of revenue over the years. In finer terms, when the company uses its funds … [Read more...] about Capital Expenditure