Business Law & Regulation

Business Law Regulation

Implementation and regulation of various laws and policies concerned with businesses in all economic sectors are of paramount importance for secured sustainability and desired development and prosperity. For these purposes there are diverse business law regulation acts in every country, apart from the company and corporate law, commercial law, taxation law, and laws relating to exports and imports and international business. Our discerning and reputed law firm with worldwide prominence provides the full-range of services regarding the business law implementation and regulation, along with all other supportive legal services to people and entities in diverse economic sectors in jurisdictions worldwide. Ours flawless and rigorous legal services cover all disciplines of the law and all areas of the legal practice, for great benefits of businesses in all sectors. Besides, swift services for domestic business law regulation, we also adroitly support our clients for their business management and regulation at international level worldwide, to facilitate and promote their international businesses.

Business Law Regulation in India

For punctual and perfect business law regulation in India, ours veteran and mellow legal professionals have been offering legal service regarding various business regulation acts, in every part of India. The most prominent and significant among these acts are - New Companies Act, 2013; Competition Act, 2002; FEMA, 1999; Foreign Trade (Development and Regulation) Act, 1992; SEBI Act, 1992; Industries (Development and Regulation) Act, 1951; Income Tax Act, 1961; Reserve bank of India Act, 1934; Contracts Act, 1872; Factories Act, 1948 and the Mines Act, 1952; Industrial Disputes Act, 1947 and the Trade Unions Act, 1926; and several other regulations of the Government of India issued from time to time. Ours these services to businesses in all sectors are in addition to the extensive range of legal services regarding the business and commercial law, intellectual property law and rights, maritime and admiralty law, real estate and construction law, pollution and environmental law, labor and employment law, alternative dispute resolution, international business laws, and so on.

Company Act

Ours this elaborately and meticulously written article offers precious description about what is company act, the company act in India, and ours impeccable and swift services in connection with this company act, along with giving the proper definition of company act. The Company Act or Company Law is the paramount and vital legislation regarding the formation, incorporation, governance, management, regulation, and winding up of all types of entities in all economic sectors within the specified country. In India, this company law is represented by the New Companies Act, 2013, detailed information about this being offered in the section below. Our organization has been one of the most famous and reputed law firms in the world, with whole gamut of refined and brisk services to people and entities in all economic sectors worldwide, essentially including the company act or law. All diverse disciplines of the legal practice are well-served by ours internationally eminent and reputed legal professionals. All different matters and issues contained in the company acts in sovereign nations located in all across the world, are well-served adroitly by ours mellow and discerning company law solicitors and attorneys.

Company Act 1956 India

 

The New Companies Act, 2013 provides the central government of India, the exclusive rights to incorporate, regulate, control, and terminate all various categories of entities in diverse sectors located within the country. The ministry of corporate affairs, company law board, registrars of companies in various States, and other agencies and authorities are responsible for supervising and regulating proper and strict compliance's under the rules and regulations of the companies act, and business regulation policies of the central government of India. Apart from the formation and functioning of profit-making and commercial entities like the private limited companies, partnership firms, sole proprietorship, public limited companies, One Person Company and unlimited companies, etc., this New Companies Act, 2013 also governs and regulates the inception and functioning of the non-profit-making companies under its Section 8. Establishments of diverse entities in India by foreign companies and investors, such as representative office, project office, liaison office, branch office, joint ventures, fully-owned subsidiaries, etc., are also exclusively governed and controlled by this magnificent New Companies Act, 2013. Well-established in India, ours respected and popular law firms extends all services related with the New Companies Act, 2013, governmental business regulation policies, and international business, to entities situated in all around the whole country.

The Sale of Goods Act 1930

Contracts or agreements related to the sale of goods are governed under the Sale of Goods Act 1930. This act came into effect on the 1st of July 1930 in the whole of India except the state of Jammu and Kashmir. Let us learn some important definitions and provisions of the act.

Definitions of Important Terms

Sale of commodities constitutes one of the important types of contracts under the law in India. India is one of the largest economies and also a great country where and thus has adequate checks and measures to ensure the safety and prosperity of its business and commerce community. Here we shall explain The Sale of Goods Act, 1930 which defines and states terms related to the sale of goods and exchange of commodities.

Sale of Goods Act, 1930 – Important Terms

The Sale of Goods Act, 1930 herein referred to as the Act, is the law that governs the sale of goods in all parts of India. It doesn’t apply to the state of Jammu & Kashmir. The Act defines various terms which are contained in the act itself. Let us see below:

I. Buyer And Seller

As per the sec 2(1) of the Act, a buyer is someone who buys or has agreed to buy goods. Since a sale constitutes a contract between two parties, a buyer is one of the parties to the contract.

The Act defines seller in sec 2(13). A seller is someone who sells or has agreed to sell goods. For a sales contract to come into existence, both the buyers and seller must be defined by the Act. These two terms represent the two parties of a sales contract.

A faint difference between the definition of buyer and seller established by the Act and the colloquial meaning of buyer and seller is that as per the act, even the person who agrees to buy or sell is qualified as a buyer or a seller. The actual transfer of goods doesn’t have to take place for the identification of the two parties of a sales contract.

II. Goods

One of the most crucial terms to define is the goods that are to be included in the contract for sale. The Act defines the term “Goods” in its sec 2(7) as all types of movable property. The sec 2(7) of the Act goes as follows:

“Every kind of movable property other than actionable claims and money; and includes stock and shares, growing crops, grass, and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale will be considered goods”

As you can see, shares and stocks are also defined as goods by the Act. The term actionable claims mean those claims which are eligible to be enforced or initiated by a suit or legal action. This means that those claims where an action such as recovery by auction, suit, refunds etc. could be initiated to recover or realize the claim.

Business Law & Regulation notes PDF

1. Existing Goods

The goods that are referred to in the contract of sale are termed as existing goods if they are present (in existence) at the time of the contract. In sec 6 of the Act, the existing goods are those goods which are in the legal possession or are owned by the seller at the time of the formulation of the contract of sale. The existing goods are further of the following types:

A) Specific Goods

According to the sec 2(14) of the Act, these are those goods that are “identified and agreed upon” when the contract of sale is formed. For example, you want to sell your mobile phone online. You put an advertisement with its picture and information. A buyer agrees to the sale and a contract is formed. The mobile, in this case, is specific good.

B) Ascertained Goods:

This is a type not defined by the law but by the judicial interpretation. This term is used for specific goods which have been selected from a larger set of goods. For example, you have 500 apples. Out of these 500 apples, you decide to sell 200 apples. To sell these 200 apples, you will need to separate them from the 500 (larger set). Thus you specify 200 apples from a larger group of unspecified apples. These 200 apples are now the ascertained goods.

C) Unascertained Goods:

These are the goods that have not been specifically identified but have rather been left to be selected from a larger group. For example, from your 500 apples, you decide to sell 200 apples but you don’t specify which ones you want to sell. A seller will have the liberty to choose any 200 apples from the lot. These are thus the unascertained goods.

2. Future Goods

In sec 2(6) of the Act, future goods have been defined as the goods that will either be manufactured or produced or acquired by the seller at the time the contract of sale is made. The contract for the sale of future goods will never have the actual sale in it, it will always be an agreement to sell.

For example, you have an apple orchard with apples in it. You agree to sell 1000 apples to a buyer after the apples ripe. This is a sale that has to occur in the future but the goods have been identified already and the agreement made. Such goods are known as future goods.

3. Contingent Goods

Contingent goods are actually a sub type of future goods in the sense that in contingent goods the actual sale is to be done in the future. These goods are part of a sale contract that has some contingency clause in it. For example, if you sell your apples from your orchard when the trees are yet to produce apples, the apples are a contingent good. This sale is dependent on the condition that the trees are able to produce apples, which may not happen.

III. Delivery

The delivery of goods signifies the voluntary transfer of possession from one person to another. The objective or the end result of any such process which results in the goods coming into the possession of the buyer is a delivery process. The delivery could occur even when the goods are transferred to a person other than the buyer but who is authorized to hold the goods on behalf of the buyer.

There are various forms of delivery as follows:

·        Actual Delivery: If the goods are physically given into the possession of the buyer, the delivery is an actual delivery.

·        Constructive delivery: The transfer of goods can be done even when the transfer is effected without a change in the possession or custody of the goods. For example, a case of the delivery by attainment or acknowledgment will be a constructive delivery. If you pick up a parcel on behalf of your friend and agree to hold on to it for him, it is a constructive delivery.

·        Symbolic delivery: This kind of delivery involves the delivery of a thing in token of a transfer of some other thing. For example, the key of the go downs with the goods in it, when handed over to the buyer will constitute a symbolic delivery.

IV. The Document of Title to Goods

From the Sec 2(4) of the act, we can say that this “includes the bill of lading, dock-warrant, warehouse keeper’s certificate, railway receipt, multi modal transport document, warrant or order for the delivery of goods and any other document used in the ordinary course of business as proof of the possession or control of goods or authorizing or purporting to authorize, either by endorsement or by delivery, the possessor of the document to transfer or receive goods thereby represented.”

V. Mercantile Agent [Section 2(9)]

Mercantile agent is someone who has authority in the customary course of business, either to sell or consign goods under the contract on behalf of the one or both of the parties. Examples include auctioneers, brokers, factors etc.

VI. Property [Section 2(11)]

In the Act, property means ‘ownership’ or the general property i.e. all ownership right of the goods. A sale constitutes the transfer of ownership of goods by the seller to the buyer or an agreement of the same.

VII. Insolvent [Section 2(8)]

The Act defines an insolvent person as someone who ceases to pay his debts in the ordinary course of business or cannot pay his debts as they become due, whether he has committed an act of insolvency or not.

VIII. Price [Section 2(10)]

In the Act, the price is defined as the money consideration for a sale of goods.

IX. Quality of Goods

In Sec 2(12) of the Act, the quality of goods is referred to as their state or condition.