Business Legislations

Paper Code: 
MTM 226
Contact Hours: 

: The Objective of this course is to acquaint the students with the concepts of The Indian Contract Act, Partnership Act and Companies Act.

Unit I: 
Unit I

Introduction to Contract: Meaning of contract, Important definitions (Sec.2a to Sec. 2j), Valid essentials of contract, Difference between agreement and contract, Classification of Contracts Proposal: Meaning of proposal, legal rules as to the offer Acceptance: Legal rules as to acceptance Contractual capacity: Meaning, Minors (effects of minor’s agreements), Person of unsound mind (Meaning, types and effects), Persons disqualified by laws.

Unit II: 
Unit II

Consideration: Meaning, legal rules, contract without consideration is void, Doctrine of privity of contract and exceptions, Legality of object and consideration Void agreements: Meaning, Types. Contingent contracts: Meaning, Valid essentials, Rules as to the enforcement of contingent contract Performance of contract: Meaning, Modes of performance, Discharge of contract: Meaning and modes of discharge of contract, types of breach of contract. Remedies for breach of contract

Unit III: 
Unit III

Specific Contracts: Contract of Indemnity and Guarantee: Meaning and Essentials Bailment: meaning, valid essentials, termination of bailment, Pledge: meaning, essentials Contract of Agency: meaning, essentials, creation and termination of agency Partnership Act 1932: meaning, nature of partnership firm, partnership deed, Registration, types of partners, Mutual Rights and duties, reconstitution of the firm, Dissolution of firm.

Unit IV: 
Unit IV

Companies Act 1956 Definition, essential characteristics and classification of companies, Private companies-privileges and concessions to Private companies, Lifting of corporate veil, Incorporation and formation of a company New Amendments 2013 (main provisions)

Unit V: 
Unit V

Memorandum of association, Articles of association, prospectus, Statement in lieu of prospectus Concept of shares, Types of shares (Equity shares, Preference shares), debentures, Types of debentures Winding up of Company (Voluntary, under court’s supervision, compulsory by the court)

Essential Readings: 
  • Aggarawal, Rohini, Student’s guide to Mercantile & Commercial Laws, Taxmann Allied Services Pvt. Ltd., New Delhi.
  • Kapoor, N. D., Elements of Mercantile Law, Sultan Chand & Sons, New Delhi
  • Tulsian, P. C., Business Law, Tata McGraw-Hill Publishing Company, New Delhi, 2006.
  • Singh Avtar, Indian Company Law, Eastern Book Company


  • Datey, V.S., Business and Corporate Laws, Taxmann Allied Services Pvt. Ltd., New Delhi
  • Singh, Nirmal, Business Laws, Deep & Deep Publications Pvt. Ltd., New Delhi
  • Gulshan, S. S., Business Law, Excel Books, New Delhi
  • Krishnamurti D S R, Company Law, Taxmann, New Delhi, 2007


Academic Year: