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Overview of Mercantile Law Concepts

This document provides an overview of mercantile law, including the law of contracts, offer and acceptance, validity of contracts, contract of sale, and company law. It defines key concepts such as what constitutes a valid contract, the requirements for offer and acceptance, and how ownership is transferred in a contract of sale. It also explains that a company is a body corporate registered under the companies act, and that incorporation creates a separate legal entity from its owners.

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Abrar Chowdhary
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41 views7 pages

Overview of Mercantile Law Concepts

This document provides an overview of mercantile law, including the law of contracts, offer and acceptance, validity of contracts, contract of sale, and company law. It defines key concepts such as what constitutes a valid contract, the requirements for offer and acceptance, and how ownership is transferred in a contract of sale. It also explains that a company is a body corporate registered under the companies act, and that incorporation creates a separate legal entity from its owners.

Uploaded by

Abrar Chowdhary
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd

MERCANTILE LAW

Presented by-
Janvi Kaurani
Harshada Pawar
MERCANTILE LAW
LAW OF CONTRACT: A contract is an agreement that
is enforceable by a court of law or equity. A legally
binding agreement between two or more persons which
the courts will enforce. Generates rights and obligations
that may be enforced by courts.
 Agreement arises as a result of offer and acceptance
 Offeror – The party who makes an offer to enter into a
contract
 Offeree – The party to whom an offer to enter into a
contract is made
Requirements for a valid contract
 1) parties must have legal capacity to enter contracts
 2) one party must make a binding offer to the other, and
the offer must be accepted by the other party
 3) consideration
 VALIDITY OF CONTRACTS: Void contract – one that was
never legally valid
 Voidable c. – can have legal effect but could be made void if
you want to rescind it (=annul)
 Valid c. – legally enforceable

OFFER
 An indication of willingness to do or refrain from doing sth
that is capable of being converted into a legally binding
contract
 It is made by an offeror to an offeree and is capable of
acceptance only by an offeree who knows of its existence

ACCEPTANCE
Agreement to the terms of an offer that, provided other
requirements are fulfilled, converts the offer into a legally
binding contract
CONTRACT OF SALE:
Section 4 defines a contract of sale as “a contract whereby a
seller transfers or agrees to transfer the property in goods to the
buyer for a price”
Essentials of Contract of Sale:
 There must be at least two parties

 Transfer or agreement to transfer the ownership of goods

 The subject matter of the contract must necessarily be goods

 Price is the consideration of the contract of sale

 All other essentials of a valid contract as per the Indian Contract


Act, 1872 must be present
TRANSFER OF OWNERSHIP
A contract of sale is performed in two inter-related stages
1-Transfer of possession of goods
2-Transfer of ownership of goods
Followings reason-
A) Risk of Losses-
B) Only owner can sue-if third party destroyed or damaged
C) Insolvency of buyer & Seller-when seller or buyer
become insolvent then liquidator can take over property
D) Suit for price-only seller can sue.
COMPANY LAW:A company is a body corporate or an
incorporated business organization registered under the
companies act. It can be a limited or an unlimited company,
private or a public company, company limited by guarantee or a
company having a share capital, or a community interest
company.
INCORPORATION OF A COMPANY The incorporation of
a company refers to the legal process that is used to form
a corporate entity or a company. An incorporated company is a
separate legal entity on its own, recognized by the law. ... It
becomes a corporate legal entity completely separate from its
owners
THANK YOU

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