B.R Notes
B.R Notes
B.R Notes
PREPARED BY
PROF, TAMIL SELVAN.V MBA,M.COM
SMT NALINI RAGHUNATH RAO DEGREE COLLEGE,JIGANI
ANEKAL TALUK,BANGALORE 560105
Commercial law or business law deals with legal aspects such as the laws of principal and
agent, carriage by sea or land, laws of indemnity and guarantee, laws of insurance (marine,
fire, life, accident insurance), laws of banking, partnership and much more. Business law is a
very broad term by itself and has many divisions and types of law to be studied under it.
Business Law is a wide term and embraces all legal principles concerning business
transactions. It is also known as the ‘Commercial Law’, ‘Law Merchant’ or ‘Mercantile Law’.
Business Law consists of those legal rules, which govern and regulate the business activities,
Indian Contract Act 1872: Definition of Contract, Essentials of valid contract, Classification
of Contracts, remedies for Breach of contract
Indian sale of Goods Act 1930 Definition of contract of sale, essentials of contract of sale
conditions and warranties, rights and duties of Buyer, rights of an unpaid seller
Part – A: INDIAN CONTRACT ACT 1872
Contract Meaning
A contract is a voluntary arrangement between two or more parties that is enforceable
by law as a binding legal agreement.
Contract law concerns the rights and duties that arise from agreements.
A contract is a legally enforceable agreement between two or more parties. It may be oral
or written. A contract is essentially a set of promises. Typically, each party promises to do
something for the other in exchange for a benefit.
Definition of contract
According to Sir John Salmond defines a contract as, “An agreement creating and defining
obligations between two parties.
According to Sir Fredrick Pollock defines, “Every agreement and promise enforceable at
law is a contract”.
The definition of Contract is given under S.2(h) of the Indian Contract Act, of 1872 which
provides ‘a contract is an agreement enforceable by law’. Thus, a contract is an agreement
made between two or more parties which the law will enforce.
According to above definitions it is clear that a contract should consist of two elements
a. Agreement
b. Legal obligation (enforceable by law)
a. Agreement
Agreement is considered to be prime element to form any contract. An agreement is
defined u/s 2 (e) as ‘every promise and every set of promises, forming consideration for
each other. When a proposal is accepted it becomes a promise. Thus, an agreement is an
accepted proposal. Therefore, in order to form an agreement there must be a proposal or
an offer by one party and its acceptance by other party.
In short Agreement = Proposal + Acceptance.
SNR DEGREE COLLEGE,JIGANI Page 12
BUSINESS REGULATIONS
b. Legal obligation (enforceable by law)
An agreement to become a contract must give rise to legal obligation. The second part of
the definition deals with enforceability by law. An agreement is enforceable u/s 10 if it is
made by competent parties, out of their free consent and for lawful object and
consideration. Therefore, a Contract = Agreement + Enforceability. Thus, all contracts are
agreements but all agreements are not necessarily contracts.
Essentials elements of a valid Contract
1. Offer and Acceptance: Basically, a contract unfolds when an offer by one party is
accepted by the other party. The accepted offer should be without any qualification and be
definite. An offer needs to be clear, definite, complete and final. It should be
communicated to the offeree. A proposal when accepted becomes a promise or
agreement. The offer and acceptance must be ‘consensus ad idem’ which means that both
the parties must agree on the same thing in the same sense i.e. identity of wills or
uniformity of minds.
Example: A say to B that he will sell his cycle to him for Rs.2000. This is an offer. If B accepts
this offer, there is an acceptance. A say to B that he will sell his cycle to him for Rs.2000. This
is an offer. If B accepts this offer, there is an acceptance.
2. Intention to Create Legal Relationship: The intention of the parties to a contract must be
to create a legal relationship between them. Agreements of social nature, as they do not
contemplate legal relationship, are not contracts. For instance, if a father fails to give his
daughter the promised pocket money, the daughter cannot sue the father, because it was
purely a domestic arrangement. Thus, it is clear that all agreements, which do not result in
legal relations, are not contracts.
Example:
1. A father promises to pay his son Rs.500 every month as pocket money. Later, he refuses
to pay. The son cannot recover as it is a social agreement and does not create legal
relations.
2. A offers to sell his watch to B for Rs.200 and B agrees to buy it at the same price, there is
a contract as it creates legal-relationship between them.
3. Capacity to Contract: If an agreement is entered between parties who are competent
enough to contract, then the agreement becomes a contract.
Example:
1. M, a person of unsound mind, enters into an agreement with S to sell his house for Rs.2
lac. It is not a valid contract because M is not competent to contract.
It is also called as one-sided contract. In a unilateral contract, only one party has to satisfy
his obligation at the time of the formation of it, the other party having fulfilled his
obligation at the time of the contract or before the contract comes into existence.
2. Bilateral Contract
A contract is said to be a bilateral contract where the obligations of both the parties to the
contract are pending at the time of formation of the contract. In this type of contract, a
promise on one side is exchanged for a promise on the other.
OFFER:
Meaning:
Offer is nothing but the “Proposal”. The meaning of these two words is same i.e, signifying
the willingness to do or to abstain from doing any act.
Definition:
According to Section 2(a) of ICA 1872, “When one person signifies to another his willingness
to do or to abstain from doing anything with a view to obtaining the assent of the other to
such act or abstinence”.
Examples of Offer:
1.A say to B” will you purchase my scooter for Rs 8000?” this is an express offer.
2.A write s a letter to B offering to sell his car for Rs 60000 to him. This an express offer.
3.KSRTC runs special buses on a particular route. This an implied offer from KSRTC to carry
the passengers on the route who are prepared to pay the specified fare. This is an implied
offer.
Essentials of Offer:
a. Offer must be capable of creating legal relations: the intension of the offeror while
making the offer is to create legal relations.
b. Offer must be Definite, Certain and non-vague: if the contents of the offer are indefinite,
uncertain and vague, it is not a valid offer. It is essential that the terms of the offer must be
clear and certain, so that the rights and obligations can be exactly fixed.
c. Offer must be communicated to the offeree: Communication of offer is essential to
obtain the assent of the offeree. If there is no communication of offer, there is no
acceptance.
d. Offer must be made with a view to obtain the assent of the other party: the main
purpose of an offer is to get the assent of the other party. Just expressing a mere intension
or making an enquiry is not sufficient to constitute an offer.
e. An offer may be conditional: Sometimes offer may contain one or more conditions.
These are called conditional offer. It can be accepted only subject to that condition.
f. Offer should not contain any assumptions: the offer given by the offeror must not be the
assumed condition.
g. Lapse of an offer:
- If either offeror or offeree dies before acceptance
- It is not accepted within the specified time or within the reasonable time.
- If the offeree does not make a valid acceptance.
- If the offer is revoked by the offeror himself, before acceptance.
h. An invitation to offer is not an offer: Generally, confusion arises between an invitation to
offer and valid offer. This confusion should be removed for understanding the real sense of
proposal.
i. Offer may be Specific or general: when offer is made to a specific person or a body of
persons, it is called a specific offer. When an offer is addressed to the world, it is a called a
general offer. A general offer can be accepted by one from the public.
KINDS OF OFFER
1. Express offer: An express offer is one which may be made either by words spoken or
written. A offer to sell his car by a letter to B for 1000.
2. Implied Offer: An implied offer is one which may be gathered from the conduct of the
parties or from the circumstances of the case.
3. Specific offer: When an offer is made to a specific person or body of persons is called a
specific offer
4. General offer: when an offer is addressed to the whole world, it is called general offer. A
general offer can be accepted by any person from the public.
5. Counter offer: A counter offer is the rejection of the original offer and making new offer.
A person who makes a counter offer and subsequently changes his mind and wishes to
accept the original cannot do as the first offer lapses and he cannot treat it as still open.
6. Standing offer: where large quantities of goods are required by certain companies or
other bodies from the time to time, it is usual ti call tenders for supply of goods for long
duration.
7. Cross offer: When two parties make identical offer to each other in ignorance of each
offer, such offers are known as cross offer.
Conditional Offer:
When a person makes a proposal to the other person without any conditions, it is called
absolute or unconditional offer. On the other hand if any conditions are imposed there on
which are to be fulfilled before its acceptance, it is called a conditional offer.
Important rules of conditional offers:
- Conditions must be communicated to the offeree.
- Conditions should attract the attention of offeree.
- Conditions may be in any language
- Conditions should be reasonable.
ACCEPTANCE:
Meaning:
An offer must be communicated to the offeree. If the offeree signifies his/her assent, it is
called acceptance. An accepted proposal is called promise or agreement.
Definition:
According to Section 2(b), “When the person to whom the proposal is made signifies his
assent, it is an acceptance of the proposal. An accepted proposal is called a promise or
agreement”.
Examples of Acceptance:
1.A offer to sell his car to B for Rs 90000 B accepts this and agrees to buy A’s car for Rs
90000 .in this case a binding contract comes into existence between A and B.
2. A wrote a letter to B “ I want to sell my black horse for Rs 12000.B replied by a letter “I
am ready and willing to buy your black hourse for Rs 12000. Heare B ‘s acceptance is
express acceptance as it it is made from writing.
Essentials of a valid acceptance:
1. Acceptance must be absolute and unconditional: A valid acceptance should not posses
any conditions, it must be absolute. It is contains any condition is not a valid acceptance.
2. Acceptance must be communicated to the offeror: acceptance must be communicated
to the offeror by the offeree. The mode of communication may be oral or written.
3. Acceptance must be made with a reasonable time: acceptance must be given within the
time specified by the offeror. If no time is specified by the offeror, it must be within a
reasonable time.
4. Acceptance must be in the mode prescribed by the offeror: Acceptance is to be made in
the manner prescribed or indicated by the offeror. Acceptance given in any other mode
than the prescribed one, it may not be effective.
5. Acceptor must be aware of the offer: The acceptor must be aware of the offer before
giving consent to it. If the acceptor without knowing the proposal conveys his acceptance, it
is not valid acceptance.
6. Acceptance cannot be implied by silence: Silence of the promise in response to a
proposal cannot be deemed as acceptance.
5. Mistake
It is a misconception or error. A mistake means that the parties are intending to do one
thing but have done something else. To create a valid contract consensus as idem is
necessary. Section 20, 21, 22 deals with mistake;
a. Mistake of law – Section 21
- Mistake of general law
- Mistake of foreign law
- Mistake as to private property rights
b. Mistake of facts – Section 20 & 22
- Bilateral mistake – Sec 20: When both the parties to the contract under a misconception
to the facts of the contract, it is called bilateral mistake.
- Unilateral mistake – Sec 22: A mistake of fact in the mind of one party is called unilateral
mistake.
MISREPRESENTATION FRAUD
1.There is no intention to deceive and it is a 1. There is intention to deceive and it is a
false innocent statement false statement made deliberately
2.Person who makes statement believes it to 2.person who makes statement does not
be true. believe it to be true.
3.Here , the contract becomes voidable at 3.Here , the contract become voidable if it
the option of the insured party. gives the right for an independent action in
tort.
4.The consent of one of the parties also not 4.The consent of one of the parties is not
free free
DISCHARGE OF CONTRACT
Discharge of contract refers to an agreement that's fully performed. However, discharge of
contract can happen due to other circumstances. Sometimes, obligations are incomplete,
but the parties are no longer liable for them. When a contract is discharged, it's no longer
binding.
➢ Discharge by performance.
➢ Discharge of Contract by Substituted Agreement.
➢ Discharge by lapse of time.
➢ Discharge by operation of law.
➢ Discharge by Impossibility of Performance.
➢ Discharge by Accord and Satisfaction.
➢ Discharge by breach.
CONTRACT LAWS
PART – B: THE SALE OF GOODS ACT 1930
Meaning and Definition of contract of sale
What is Contract of Sale of goods?
Contract of sale of goods is a contract, whereby, the seller transfers or agrees to transfer
the property in goods to the buyer for a price. There can be a contract of sale between one
part-owner and another.
In other words, under a contract of sale, a seller (or vendor) in the capacity of the owner, or
part-owner of the goods, transfers or agrees to transfer the ownership in goods to the
buyer (or purchaser) for an agreed upon value in money (or money equivalent), called the
price, paid or the promise to pay same.
A contract of sale may be absolute or conditional depending upon the desire of contracting
parties.
Definition
According to Section 4 of the Sale of Goods Act a contract of the sale of goods is a
contract whereby the seller transfers, or agrees to transfer, the property in (i.e.,
ownership of) goods to the buyer for a price.
Essentials elements of a Contract of Sale
The following six features are essential elements of any contract of sale of goods.
➢ Goods
➢ Prices
➢ Two parties
➢ Transfer of ownership
➢ Includes both a ‘sale ‘and ‘an agreement to sell ‘
➢ All essentials of a valid contract
1. Two Parties:
A contract of sale of goods is bilateral in nature wherein property in the goods has to pass
from one party to another. One cannot buy one’s own goods.
For example, A is the owner of a grocery shop. If he supplies the goods (from the stock
meant for sale) to his family, it does not amount to a sale and there is no contract of sale.
This is so because the seller and Buyer must be two different parties, as one person cannot
be both a seller as well as a buyer. However, there shall be a contract of sale between part
owners.
2. Goods: The subject matter of a contract of sale must be goods. Every kind of movable
property except actionable claims and money is regarded as ‘goods’. Contracts relating to
services are not considered as contract of sale. Immovable property is governed by a
separate statute, ‘Transfer of Property Act’.
Duties of Buyer:
The buyer in respect to the contract of sale has to perform the following duties.
1.Duty to treat breach of condition as a breach of warranty:
A buyer shall treat a breach of condition as a breach of warranty under certain
circumstances.
2.Duty to accept unconditional appropriation
When there is assent of the seller, the buyer has to accept unconditional appropriation of
unascertained goods.
3.Duty to pay price and accept the goods:
It is the duty of the buyer to take the delivery of the goods and pay for them in accordance
with the terms of the contract.
4.Duty to apply for delivery:
The seller is not bound to deliver the goods to the buyer applies for delivery. In the absence
of any contract to the country.
5.Duty to demand delivery at a reasonable hour:
As per section 36(4)” Demand or Tender of delivery may be treated as ineffectual unless
made at a reasonable hour. What is reasonable hour is question of fact.
6.Duty against deterioration:
Unless otherwise agreed the buyer has to take risk of deterioration of the goods incidental
to the course of transit.
7.Duty to accept installment delivery and pay for it:
Where there is contract for the sale of goods to be delivered by stated installments which
are to be separately paid for , it is the duty of the buyer to accept the installment delivery
and pay for it.
8.Duty to intimate the seller when reject the goods:
Unless otherwise agreed it is duty of the buyer to inform the seller in case of he refuses to
accept the goods.
9.Duty to pay increased tax:
The buyer is liable to pay so much as will be equivalent to the amount paid or payable in
respect of such tax imposed or increase of Tax which may be chargeable at that time of sale
in the absence of any contract to country.
10.Duty to pay price:
Where under contract sale of property in the goods has passed to the buyer and the buyer
wrongfully neglects or refuses to pay the goods according to the terms of the contract, the
seller may sue him for the price of the goods.
11.Duty to pay damages for non acceptance:
Where the buyer wrongfully neglects or refuses to accept and pay for the goods the seller
may sue him for damages for non acceptance.
Duties of a seller
1.Duty to deliver goods in Time:
Where there is a stipulation as to delivery in time, the seller has to do it.
Unpaid seller
When the seller of goods did not receive its whole price or receives part payment of its
price then he is called an unpaid seller.
Definition:
A seller or his agent is called as unpaid seller when
a) The full price has not been paid
b) A bill of exchange or any other negotiable instrument has been given as a conditional
payment but it has been dishonoured.
1) Right of lien: Sec.47 to 49 . Lien is aright to retain the possession of gods until the price
is paid, If the goods are partly delivered he can use this right on the remaining goods
except when the part delivery made is to indicate that he has given up this right.(Sec.48)
This right he can use on the whole of goods in his possession and only for the recovery
of the price of the goods sold but not for the recovery of warehouse charges or godown
rent.
2)Right of stoppage of goods in transit: Sec.50 to 52. This is the right of the unpaid
seller to stop the goods when they are in transit. (i.e.in journey).
When the seller has parted with the possession of goods, he may regain such
possession by stopping the goods in transit before it is delivered to the
buyer.(Sec.50)
The competition Act 2002: Objectives of competition Act, Feature of Competition Act, CAT,
offences and penalties under the Act, Competition Commission of India.
Consumer protection act 1986: Definition of the terms consumer, Consumer disputes, defect,
Deficiency, Unfair trade practices and services. Rights of the consumer under the act, Consumer
Redressal Agencies-District Forum, State Commission, National Commission.
Types of competition:
a. Price Competition: Winning customers by lowering price.
b. Non-price Competition: Winning customers by advertising, offering after sales-services,
using promotion tools etc..
Ways of Competition:
a. Fair Competition: Fair means such as producing quality goods, becoming cost-efficient,
optimizing the use of resources, best technology, research & development etc.
b. Unfair Competition: Unfair means such as fixing price with the rivals, predatory pricing,
disparaging or misleading advertisements etc.
The Competition Act 2002
1. A new Law called Competition Act 2002 has been enacted to replace the extent law,
MRTP Act 1969.
2.The new law has been amended on 10th September 2007 by the parliament.
Unfair trade practices: Any trade practice whose harm outweighs its benefits. It can be
defined as using various deceptive, fraudulent or unethical methods to obtain business.
Unfair trade practices include misrepresentation, false advertising, tied selling and other
Types of combination:
- Horizontal Combinations: these are those that are between rivals and are most likely to
cause appreciable adverse effect on competition.
- Vertical combinations: these are those that are between enterprises that are at different
stages of the production chain and are less likely to cause appreciable adverse effect on
competition.
- Conglomerate Combinations: These are those that are between enterprises not in the
same line of business or in the same relevant market and are least likely to cause
appreciable adverse effect on competition.
SNR DEGREE COLLEGE,JIGANI Page 44
BUSINESS REGULATIONS
4. Competition Advocacy: (Section 49)
The aim of competition advocacy is to foster conditions that will lead to a more competitive
market structure and business behavior without the direct intervention of the Competition
Law Authority, namely CCI For promotion of competition advocacy and creation of
awareness about competition issues, the commission may take suitable measures to:
- Promote competition advocacy
- Create public awareness
- Impart training about competition
The commission shall render opinion on a reference from the Central Government on
policy/law on competition. CCI is required to give opinion in 60 days.
44. Penalty for making false statement or omission to furnish material information. —If
any person, being a party to a combination, —
(a) makes a statement which is false in any material particular, or knowing it to be false; or
(b) omits to state any material particular knowing it to be material, such person shall be
liable to a penalty which shall not be less than rupees fifty lakh but which may extend to
rupees one crore, as may be determined by the Commission.
46. Power to impose lesser penalty.—The Commission may, if it is satisfied that any
producer, seller, distributor, trader or service provider included in any cartel, which is
alleged to have violated section 3, has made a full and true disclosure in respect of the
alleged violations and such disclosure is vital, impose upon such producer, seller,
distributor, trader or service provider a lesser penalty as it may deem fit, than leviable
under this Act or the rules or the regulations: Provided that lesser penalty shall not be
imposed by the Commission in cases where proceedings for the violation of any of the
provisions of this Act or the rules or the regulations have been instituted or any
investigation has been directed to be made under section 26 before making of such
disclosure.
Conclusion: The Indian Competition Act, 2002 is very much comprehensive and enacted to
meet the requirements of the economic growth and international economic developments
relating to competition laws. The legislation is in synchronization with other policies such as
trade policy, FDI norms, FEMA etc, which would ensure uniformity in overall competition
policy.
Every individual is a consumer of goods and services and expects a fair deal against unfair
exploitation.
This Consumer Protection Act applies to the whole of India except the State of Jammu and
Kashmir and covers all goods and services purchased by the consumers and to all sectors —
private, public and cooperative. The objective of the Act is “to provide for better protection
of the interests of consumers and for that purpose to make provisions for the
establishment of Consumer Councils and other authorities for the settlement of consumer
disputes and for matters connected therewith”. It protects the consumers from unfair
trading or unfair trade practices.
It is important to note that the Indian Consumer Protection Act is social welfare legislation
and has been designed to avoid technicalities, procedural delays, procedural requirement,
court fees and costs.
The Consumer Protection Act, 1986 provides for the following rights to the consumers:
(a) Right to be heard and to be assured that consumers’ interests will receive due
consideration at appropriate forum;
(b) Right to seek redressal against unfair trade practices or unscrupulous exploitation of
consumers; and
(c) Right to consumer education.
The Consumer Protection (Amendment) Act 1993 adds the following consumer rights:
(a) The right to be assured wherever possible, access to a variety of goods and services at
competitive prices;
2. State Commission:
It consists of a president and two other members. The president must be a retired or
working judge of high court. They all are appointed by state government. The complaints
for the goods worth more than Rs 20 lakhs and less than Rs 1 crore can be filed in State
Commission on receiving complaint the State commission contacts the party against whom
the complaint is filed and sends the goods for testing in laboratory if required.
3. National Commission:
The national commission consists of a president and four members one of whom shall be a
woman. They are appointed by Central Government. The complaint can be filed in National
Commission if the value of goods exceeds Rs 1 crore. On receiving the complaint the
National Commission informs the party against whom complaint is filed and sends the
goods for testing if required and gives judgment?
2.hires or avails of any services for a consideration which has been paid or promised or
partly paid and partly promised, or under any system of deferred payment and includes any
beneficiary of such services other than the person who 'hires or avails of the services for
consideration paid or promised, or partly paid and partly promised, or under any system of
deferred payment, when such services are availed of with the approval of the first
mentioned person but does not include a person who avails of such services for any
commercial purposes;
"consumer dispute" means a dispute where the person against whom a complaint has
been made, denies or disputes the allegations contained in the complaint.
"Defect" means any fault, imperfection or shortcoming in the quality, quantity, potency,
purity or standard which is required to be maintained by or under any law for the time
being in force under any contract, express or implied or as is claimed by the trader in any
manner whatsoever in relation to any goods;
"unfair trade practice" means a trade practice which, for the purpose of promoting the
sale, use or supply of any goods or for the provision of any service, adopts any unfair
method or unfair or deceptive practice including any of the following practices, namely; —
(i) Falsely represents that the goods are of a particular standard, quality, quantity, grade,
composition, style or model;
(ii) Falsely represents that the services are of a particular standard, quality or grade;
(iii) Falsely represents any re-built, second-hand, renovated, reconditioned or old goods as
new goods;
(iv) Represents that the goods or services have sponsorship, approval, performance,
characteristics, accessories, and uses or benefits which such goods or services do not have;
(v) Represents that the seller or the supplier has a sponsorship or approval or affiliation
which such seller or supplier does not have;
(vi) Makes a false or misleading representation concerning the need for, or the usefulness
of, any goods or services;
(vii) gives to the public any warranty or guarantee of the performance, efficacy or length of
life of a product or of any goods that is not based on an adequate or proper test thereof;
Patent:
A set of exclusive rights granted by a sovereign state to an inventor or assignee for a limited
period of time in exchange for detailed public disclosure of an invention is called patent.
Salient features of Patent Laws Act 1970 are as follows:
1.Elaborted definition of invention
2.Codification of certain inventions as non-patentable
3.Mandatory furnishing information regarding foreign application
4.Adoption of absolute novelty criteria in case of publication
5.Expansion of the grounds for opposition to the grant of a patent.
6.Enlargement of the grounds for revocation of the patent.
7.provison for appeal to High court on certain decisions of the controller.
8.Provision for operating of branches of the patent office.
9.Provisons for secrecy of inventions relevant for defense purpose.
10.Provision for use of inventions for the purpose of Government or for research or
instruction to pupils.
A right that is had by a person or by a company to have exclusive rights to use its own plans,
ideas, or other intangible assets without the worry of competition, at least for a specific
period of time. These rights can include copyrights, patents, trademarks, and trade secrets.
Types of IPR
The four types of intellectual property include: Trade Secrets. Trademarks, Copyrights, and
Patents.
1. Trade secret: A trade secret is a formula, practice, process, design, instrument, pattern,
commercial method, or compilation of information not generally known or reasonably
ascertainable by others by which a business can obtain an economic advantage over
competitors or customers
2. Patents: A patent is a form of intellectual property. A patent gives its owner the right to
exclude others from making, using, selling, and importing an invention for a limited period
of time, usually twenty years. The patent rights are granted in exchange for an enabling
public disclosure of the invention.
Types of Patent:
1.Utility Patents
The inventor inventing any unconventional object, device, composition or process can have
utility patent.
2. Design Patents
While a utility patent protects the utility or function of a product, a design patent protects
its aesthetic appearance. Design patents can be issued for the appearance, design, shape or
general ornamentation of an invention.
To qualify for a design patent, the patented product must be non-functional; otherwise, a
utility patent would be necessary to protect it. Like the utility patent, design patents are
granted for those appearances that are new, specific, and not obvious.
SNR DEGREE COLLEGE,JIGANI Page 51
BUSINESS REGULATIONS
3. Plant Patents
Plant patents are available for the discovery or invention of plants that are asexually
reproduced. They must be, like the other patents, novel, distinct and not obvious. They
have a 20-year lifespan that does not include maintenance fees.
4. Reissue patent:
It is issued to set right an error in an already issued patent. It however will not affect the
period of protection offered by the original patent.
5.Defernsive publication:
It is used instead of a regular patent to offer limited protection, defensive in nature and
prevent others from patenting and invention ,design or plant. Since 1986 the Statutory
invention Registration has replaced DEF.
Objectives of IP Law:
1. Eliminate or prevent discrimination in matters that affect the availability, scope,
acquisition, use, maintenance, and enforcement of IP rights.
2.Enable U.S. citizens who need IP protection to gain fair and equitable market access
opportunities.
3.Play an active role in developing the IP regime of the World Trade Organization (WTO) to
make sure that it is consistent with other U.S. objectives.
Help the World Intellectual Property Organization (WIPO) build a cooperative relationship
with the WTO.
7– Renewal
After the patent has been granted, it has to be renewed every year by paying the renewal
fee. A patent in India can be renewed for a maximum period of 20 years from the patent
filing date.
1. On the restoration of a patent, the rights of the patentee shall be subject to such
provision as may be prescribed by the Controller in his order and to such other provisions
as he thinks fit to impose for the protection of compensation of persons who might have
began to avail them off. Or the patented invention between the date when the patent
ceased to have effect and the date of publication of the application for the restoration of
patent Section 62(1),
2.On the lapsing of the patent due to nonpayment of the renewal fees, the patentee loses
his right in the patent and the invention becomes public property. The provision contained
in section 62 of The Act is to safeguard the interests of those persons who after ascertain
from the Register of Patents that the patent has lapsed due to nonpayment of the renewal
fees and become public property had started commercially using the invention
Trade Marks:
A trademark, trade mark, or trade-mark is a recognizable sign, design, or expression which
identifies products or services of a particular source from those of others, although
trademarks used to identify services are usually called service marks.
Importance of trade mark:
Trademark is essentially another word for brand or brand name. A trademark can be any
name, word, symbol, slogan, or device that serves to both identify and distinguish a
business or product from others in the market. Once you have trademarked your business,
if someone else makes an attempt to use something similar enough to confuse customers,
you have the right to legally protect yourself and stop the other party.
Current account and capital account transactions o Under the FEMA regime, the thrust
was on regulation and control of the scarce foreign exchange, whereas under the FEMA,
the emphasis is on the management of foreign exchange resources. Under FERA, it was safe
to presume that any transaction in foreign exchange or with a non-resident was prohibited
unless it was generally or specifically permitted.
Two golden rules or principles in FEMA are mentioned as follows:
1. All current account transactions are permitted unless otherwise prohibited.
2. All capital account transactions are prohibited unless otherwise permitted.
Important definitions
2.If any person contravenes any provision of this Act or contravenes any rule, regulation,
notification, direction or order issued in exercise of the powers under this Act, or
contravenes any condition subject to which an authorization is issued by the Reserve Bank
of India, he shall, upon adjudication, be liable to a penalty up to thrice the sum involved in
such contravention where such amount is quantifiable, or up to two lakh rupees where the
amount is not quantifiable, and where such contravention is a continuing one, further
penalty which may extend to five thousand rupees for every day after the first day during
which the contravention continues.”
3.Any Adjudicating Authority adjudging any contravention under sub-section (1), may, if he
thinks fit in addition to any penalty which he may impose for such contravention direct that
any money, safety or any other money or property in respect of which the contravention
has taken place shall be confiscated to the Central Government and further direct that the
foreign exchange holdings, if any, of the persons committing the contraventions or any part
thereof, shall be brought back into India or shall be retained outside India in accordance
with the directions made in this behalf.
3. Explanation for this subsection, “property” in respect of which contravention has taken
place, shall include—
1. Deposits in a bank, where the said property is converted into such deposits;
2. Indian currency, where the said property is converted into that currency; and
3. Any other property which has resulted out of the conversion of that property.
Following are the main features of Foreign Exchange Management Act, 1999:
1. FEMA gives power to the central government for imposing restriction on activities like
making payments to a person situated outside of the country or receiving money through
them. Apart from this, foreign exchange as well as foreign security deals is also restricted by
FEMA.
3. The central government can restrict an authorized individual to carry out foreign
exchange deals within the current account, on the basis of general interest of the public.
4. Even though drawing or selling of foreign exchange is carried out via an authorized
individual, the FEMA act empowers the Reserve Bank of India to place a number of
restrictions on the transactions of the capital account.
5. Under the act, the Indian residents have the permission to conduct foreign exchange and
foreign security transactions or the right to hold or own immovable property in a foreign
country in case the security, property or currency was acquired or owned when the
individual was based outside of the country, or when they inherit the property from
another individual staying outside the country.
6. The act is not applicable on the resident (of an Indian citizen) based outside the country.