What is Marking of Cheque ?

A person may not like to part with goods in return for a cheque from a party not well known to him. In such context the
banker on whom the cheques is drawn may be asked by the customers to mark the cheques as good for payment. This
implies that cheque was drawn in good faith and on funds sufficient to meet it.

What is Crossing of Cheque ?

A cheque is a negotiable instrument. During the process of circulation, a cheque may be lost, stolen or the signature of
payee may be done by some other person for endorsing it. Under these circumstances the cheque may go into wrong
hands.
Crossing is a popular device for protecting the drawer and payee of a cheque. Both bearer and order cheques can be
crossed. Crossing prevents fraud and wrong payments. Crossing of a cheque means "Drawing Two Parallel Lines" across
the face of the cheque. Thus, crossing is necessary in order to have safety. Crossed cheques must de presented through
the bank only because they are not paid at the counter.

Different Types of Crossing ↓

1. General Crossing :-

Generally, cheques are crossed when

1. There are two transverse parallel lines, marked across its face or
2. The cheque bears an abbreviation "& Co. "between the two parallel lines or
3. The cheque bears the words "Not Negotiable" between the two parallel lines or
4. The cheque bears the words "A/c. Payee" between the two parallel lines.
A crossed cheque can be made bearer cheque by cancelling the crossing and writing that the crossing is cancelled and
affixing the full signature of drawer.

Specimen of General Crossing ↓

2. Special or Restrictive Crossing :-

When a particular bank's name is written in between the two parallel lines the cheque is said to be specially crossed.

Specimen of Special or Restrictive Crossing ↓

In addition to the word bank, the words "A/c. Payee Only", "Not Negotiable" may also be written. The payment of such
cheque is not made unless the bank named in crossing is presenting the cheque. The effect of special crossing is that the
bank makes payment only to the banker whose name is written in the crossing. Specially crossed cheques are more safe
than a generally crossed cheques.
Dishonour by non acceptance

A bill of exchange is said to be dishonored by non-acceptance when the drawee, or one of several drawee not being
partners, makes default in acceptance upon being duly required to accept the bill, or where presentment is excused and
the bill is not accepted. Where the drawee is incompetent to contract, or the acceptance is qualified the bill may be
treated as dishonored

Dishonour by non payment

A promissory note, bill of exchange or cheque is said to be dishonored by non-payment when the maker of the note,
acceptor of the bill or drawee of the cheque makes default in payment upon being duly required to pay the same.

Unpaid Seller's Lien

Section 54. [When Right of Lien may be Exercised.]

(1.) Subject to the provisions of this act, the unpaid seller of goods who is in possession of them is entitled to retain
possession of them until payment or tender of the price in the following cases, namely:
(a.) Where the goods have been sold without any stipulation as to credit;
(b.) Where the goods have been sold on credit, but the term of credit as expired;
(c.) Where the buyer becomes insolvent.
(2.) The seller may exercise his right of lien notwithstanding that he is in possession of the goods as agent or bailee for
the buyer.

Section 55. [Lien after Part Delivery.]

Where an unpaid seller has made part delivery of the goods, he may exercise his right of lien on the remainder, unless
such part delivery has been made under such circumstances as to show an intent to waive the lien or right of retention.

Section 56. [When Lien is Lost.]

(1.) The unpaid seller of goods loses his lien thereon:
(a.) When he delivers the goods to a carrier or other bailee for the purpose of transmission to the buyer without
reserving the property in goods or the right to the possession thereof;
(b.) When the buyer or his agent lawfully obtains possession of the goods.
(c.) By waiver thereof.

(2.) The unpaid seller of goods, having a lien thereon, does not lose his lien by reason only that he has obtained
judgment or decree for the price of the goods.

Contract of sale

(1) A contract of sale is made by an offer to buy or sell goods for a price and the acceptance of such offer. The contract
may provide for the immediate delivery of the goods or immediate payment of the price or both, or for the delivery or
payment by installments, or that the delivery or payment or both shall be postponed.

(2) Subject to the provisions of any law for the time being in force, a contract of sale may be made in writing or by word
of mouth, or partly in writing and partly by word of mouth or may be implied from the conduct of the parties.
Characteristics :

Offer and Acceptance: There must be an offer from for buyer from a seller to buy goods. Proper offer and acceptance
from both involved parties will make this contract valid otherwise void.

Legal Consideration: Sale and purchase of goods must be made for legal consideration. Consideration means something
in return.  A contract of sale will be valid if seller gets some value in return of selling his goods or services and at the
same time buyer gets useful goods.

Lawful Object: Purpose of making contract of sale must be lawful. If contract is going to be concluded for illegal
purposes, it will not be valid contract.

Capacity of Involved Parties: All parties involved to contract of sale must be capable of doing contract and fulfilling
contract. If one party to a contract is minor, the contract will not be valid.

Possibility of Performance: Purpose of contract must be able to be performed. There will be no valid contract if act is
impossible to perform.

Legal Formalities: All legal formalities must be completed by all parties involved to contract. Nature of legal formalities
will depend on the nature of contract for instance legal requirements for sale of consumption of goods will be different
from sale of property or sale of business.

Clear Meaning: Agreement of sale must include clear wording that would be easy to understand and all readers will
percept same meaning of terms used in contract.

Free Consent of Involved Parties: If any of party is forced to sight the contract, the contract will not be valid because
free consent of all parties is a must for valid contract of sale.

When you will keep all essentials of a valid contract in mind, you will be able to write a perfect contract of sale.

Subrogation

Simply stated, the right of subrogation is the right to pursue someone else's claim. If you are subrogated to someone's
claim, it sounds as though you are somehow subordinated to it -- but that's not what it means. It means that you may
pursue it as though it were your own. It can arise by the express agreement of the parties, or automatically by operation
of law.
The doctrine of subrogation provides that if an insurer pays a loss to its insured due to the wrongful act of another, the
insurer is subrogated to the rights of the insured and may prosecute a suit against the wrongdoer for recovery of its
outlay. The right of an insurer to be subrogated to the rights of its insured is typically based upon:
(1) the terms of the policy of insurance; or,
(2) the right of equitable subrogation, i.e., by operation of law.
The typical property insurance policy provision relating to subrogation provides in pertinent part:
Subrogation - An insured may waive in writing before a loss all rights of recovery against any person. If not waived, we
may require an assignment of rights of recovery for a loss to the extent that payment is made by us.
Example
Insurance. Suppose you own a building which burns down due to the negligence of a third party. Normally you could sue
the negligent third party for causing your building to burn down. If your fire insurance company pays off your claim,
however, the insurance company is then subrogated to your claim against the negligent third party. This means your
claim against the negligent third party is treated as having been assigned to the insurance company, which may sue him
to recover the amount it paid you on account of the fire loss.
Liabilities of common carrier

1. Liability for Delay:

The common carrier will be liable for any damage caused by its delay.
2. Liability for Delivery:
The carrier will be liable for an erroneous delivery regardless of the reason for misdelivery.
3. Liability for the safety of Goods:
He is entirely responsible for the safety of the goods carried except when the loss or damage arises from:
a. An act of God.
b. Inherent vice in the goods themselves.
c. Acts of the enemies of the state.
d. The consignor’s own fault.
e. an acts of Public Authorities.
4. Liability for Injury:
He is liable for injury to the passenger’s person only if guilty of negligence.
5. Liability for Scheduled Goods.
Common carrier is not liable for loss or damage to specific kind of goods shown in the schedule such as gold, silver
currency notes and precious stones etc, exceeding Rs. 100 in value, unless its value and description are properly
disclosed to him before.

Company has a separate legal entity

Statutory Meeting

Statutory meeting is the first meeting of the members of the public limited company. It is held only once in life of a
public company. It can be convened by the directors of the company only.

By whom and when held:

The statutory meeting is held by

Every public limited company limited by shares.
Every company limited by guarantee.
Every private company converted into a public company.

How the meeting is convened?

It is provided in companies' ordinance that the directors shall send a notice of statutory meeting at least 21 days before
the day of the meeting to all the shareholders of the company. The directors shall not send the statutory report duly
certified by not less than three directors, one of whom shall be the chief executive of the company.

Business of the meeting:

The business of the meeting is to consider the statutory report. The statutory report contains a brief account of the state
of company's affairs since its incorporation and the business plan. It describes the shares allotted by the company cash,
cash received in respect of such shares allot, an abstract of the receipts and payments of a company, names, occupation
of the directors, etc. etc.
Chief features of central excise duty

(a)   It is an indirect tax.

(b)  Central excise duty is levied on all excisable goods produced or manufactured in India (except goods produced or
manufactured in special economic zone).

(c)   Excisable goods are specified in Central Excise Tariff Act, 1985.

(d)  Such duty is levied and collected uniformly throughout India in accordance with the provisions of a specific Act
known as Central Excise Act, 1944.

(e)   Taxable event of Central excise is manufacture or production i.e. charge is fixed at the time of occurrence of
manufacture or production.

(f)    Though taxable event is manufacture or production, duty is payable on the date of removal i.e. clearance from
factory.

(g)   Excise duty is payable by the manufacturer or producer of excisable goods in certain cases.