S.Y.B.COM.
        SEMESTER - III (CBCS)
         BUSINESS LAW
      SUBJECT CODE : UBCOMFSIII.7
                                           © UNIVERSITY OF MUMBAI
                                                Prof. Suhas Pednekar
                                                   Vice Chancellor
                                            University of Mumbai, Mumbai.
                   Prof. Ravindra D. Kulkarni                          Prof. Prakash Mahanwar
                       Pro Vice-Chancellor,                                    Director
                      University of Mumbai.                           IDOL, University of Mumbai.
               Programe Co-ordinator     : Prof. Rajashri Pandit
                                           Asst. Prof. in Economic,
                                           Incharge Head Faculty of Commerce,
                                           IDOL, University of Mumbai, Mumbai
               Course Co-ordinator       : Mr. Vinayak Vijay Joshi
                                           Asst. Professor in Accountancy,
                                           IDOL, University of Mumbai, Mumbai
               Course Writer           :   Dr. Mahendra Pachadkar
                                           Department of Business Law
                                           Prahladrai Dalmia Lions College of
                                           Commerce and Economics,
                                           Malad West, Mumbai – 400064.
                                       :   Prof. Rajesh Thakkar
                                           Department of Commerce,
                                           Shankar Narayan College of Arts & Commerce
                                           Bhayandar East, Thane - 401105
               Re-edited by            :   Dr. Mahendra Pachadkar
                                           Prahladrai Dalmia Lions College of
                                           Commerce and Economics,
                                           Malad West, Mumbai - 400064.
              November 2021, Print I
               Published by             :  Director
                                           Institute of Distance and Open Learning ,
                                           University of Mumbai,
                                           Vidyanagari, Mumbai - 400 098.
                                          DTP COMPOSEDAND PRINTED BY
                                             Mumbai University Press
                                     Vidyanagari, Santacruz (E), Mumbai - 400098.
                                                              CONTENTS
                 Chapter No.                                     Title                                    Page No
                                                                     Module I
                 1.          The Indian Contract Act 1872: Introduction To Law of Contract
                             Agreements & Contracts                                                                01
                 2.          Kinds of Contract: Classification of Contracts                                          9
                 3.          Offer/Proposal U/S 2(A) & Acceptance U/S 2(B)                                         14
                 4.          Communication of Offer And Acceptace                                                  25
                 5.          Capacity of Parties U/S 10-12                                                         31
                 6.          Consideration (Sec 2 And 25)                                                          36
                                                              Module II
                 7.          Indian Contract Act1872 Part II
                             Free Consent & Contract Sections. 13 To 22                                            55
                 8.          Void Agreements: (Section.24-30)                                                      69
                 9.          Contingent Contracts (S.31) Quasi Contracts (S.68-72)
                             E-Contracts (S.37)                                                                    77
                 10.         Performance of Contract, Modes of Discharge And Remedies
                             For Breach of Contract (S. 73-75)                                                     84
                                                             Module III
                 11.         Special Contracts Contract Of Indemnity                                              106
                 12.         Contract of Guarantee                                                                110
                 13.         Contract of Bailment                                                                 119
                 14.         Contract of Pledge                                                                   129
                                                             Module IV
                 15.         Law of Agency (Section 172 To 179)                                                   135
                 16.         Sale of Goods Act 1930                                                               158
                 17.         Condition And Warranty (Section 11-17)                                               166
                 18.         Passing of Property And Title (Section 18-26)                                        174
                 19.         Unpaid Seller                                                                        179
                                                              Module V
                 20.         The Negotiable Instruments (Amendment Act, 2015)                                     196
                 21.         Promissory Notes And Bills Of Exchange                                               202
                 22.         Cheques                                                                              211
                 23.         Miscellaneous Provision                                                              221
                                                                *****
                                                        SYLLABUS 
                                                        S.Y.B.Com. 
                                                       Business Law 
                                                                
                          Course Objective: 
                          •  To provide a conceptual study about the framework of Indian Business 
                             Laws. 
                          •  To orient students about the legal aspects of business 
                          •  To familiarize the students with case law studies related to Business 
                             Laws of Semester III and IV. 
                           
                             Sr.No.                    Modules                    No. of Lectures 
                             1         Indian Contract Act — 1872 Part -I         12 
                             2         Indian Contract Act — 1872 Part -II        12 
                             3         Special Contracts                          12 
                             4         The Sale Of Goods Act - 1930               12 
                             5         The Negotiable Instruments (Ammended)  12 
                                       Act 2015 
                                                                          Total  60 
                           
                              Sr. No                             Modules 
                             1.         Indian Contract Act – 1872 Part –I 
                                        •  Contract  —  Definition  of  Contract  and  Agreement, 
                                          Essentials of Valid Contract, Classification of Contracts. 
                                        •  Offer  and  Acceptance  —  Rules  of  valid  offer  and 
                                          acceptance,  Counter  offer,  standing  or  open  offer, 
                                          distinguish between offer and invitation to offer. Concept 
                                          of  Communication  and  Revocation  of  offer  and 
                                          acceptance (sec. 3,5) 
                                        • Capacity to Contract (S. 10-12) — Minor, Unsound Mind, 
                                          Disqualified Persons. 
                                        • Consideration (S. 2 & 25) — Concept and Importance of 
                                          consideration, Legal rules of Consideration, Exceptions to 
                                          the  Rule,  ’No  Consideration  NoContract’(Ss.  25) 
                                          Unlawful Consideration (S 23) 
                             2.         Indian Contract Act – 1872 Part –II 
                                        •  Consent  (Ss.13,  14-18,  39.53,  55,  66)-Agreements  in 
                                           which consent is not free- Coercion, Undue Influence, 
                                           Misrepresentation Fraud, Mistake. 
                                        •  Void  Agreements  (S.  24-30)  —  Concept,  Void 
                                           Agreements under Indian Contract Act. 
                                        •  Contingent Contract (S. 31), Quasi Contract (S.68-72), 
                                           Concept of E- Contract& Legal Issues in formation and 
                                           discharge  of  E-  Contract.  Concept  of  Performance  of 
                                           Contract (S 37) 
                                        •  Modes of Discharge of Contract, Remedies on breach of 
                                           Contract.(73-75) 
                                         
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