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Monday 26 March 2012

Types of contracts


Types of contracts

On the basis of validity:

1. Valid contract: An agreement which has all the essential elements of a contract is called a valid contract. A valid contract can be enforced by law.

2. Void contract[Section 2(j)]: A void contract is a contract which ceases to be enforceable by law. A contract when originally entered into may be valid and binding on the parties. It may subsequently become void. -- There are many judgments which have stated that where any crime has been converted into a "Source of Profit" or if any act to be done under any contract is opposed to "Public Policy" under any contract—than that contract itself cannot be enforced under the law-

3. Voidable contract[Section 2(i)]: An agreement which is enforceable by law at the option of one or more of the parties thereto, but not at the option of other or others, is a voidable contract. If the essential element of free consent is missing in a contract, the law confers right on the aggrieved party either to reject the contract or to accept it. However, the contract continues to be good and enforceable unless it is repudiated by the aggrieved party.

4. Illegal contract: A contract is illegal if it is forbidden by law; or is of such nature that, if permitted, would defeat the provisions of any law or is fraudulent; or involves or implies injury to a person or property of another, or court regards it as immoral or opposed to public policy. These agreements are punishable by law. These are void-ab-initio.

“All illegal agreements are void agreements but all void agreements are not illegal.”

5. Unenforceable contract: Where a contract is good in substance but because of some technical defect cannot be enforced by law is called unenforceable contract. These contracts are neither void nor voidable.

On the basis of formation:

1. Express contract: Where the terms of the contract are expressly agreed upon in words (written or spoken) at the time of formation, the contract is said to be express contract.

2. Implied contract: An implied contract is one which is inferred from the acts or conduct of the parties or from the circumstances of the cases. Where a proposal or acceptance is made otherwise than in words, promise is said to be implied.

3. Quasi contract: A quasi contract is created by law. Thus, quasi contracts are strictly not contracts as there is no intention of parties to enter into a contract. It is legal obligation which is imposed on a party who is required to perform it. A quasi contract is based on the principle that a person shall not be allowed to enrich himself at the expense of another.

On the basis of performance:

1. Executed contract: An executed contract is one in which both the parties have performed their respective obligation.

2. Executory contract: An executory contract is one where one or both the parties to the contract have still to perform their obligations in future. Thus, a contract which is partially performed or wholly unperformed is termed as executory contract.

3. Unilateral contract: A unilateral contract is one in which only one party has to perform his obligation at the time of the formation of the contract, the other party having fulfilled his obligation at the time of the contract or before the contract comes into existence.

4. Bilateral contract: A bilateral contract is one in which the obligation on both the parties to the contract is outstanding at the time of the formation of the contract. Bilateral contracts are also known as contracts with executory consideration.

Agency (The Indian Contract Act)


Agency
In law, the relationship that exists when one person or party (the principal) engages another (the agent) to act for him, e.g. to do his work, to sell his goods, to manage his business. The law of agency thus governs the legal relationship in which the agent deals with a third party on behalf of the principal. The competent agent is legally capable of acting for this principal vis-à-vis the third party. Hence, the process of concluding a contract through an agent involves a twofold relationship. On the one hand, the law of agency is concerned with the external business relations of an economic unit and with the powers of the various representatives to affect the legal position of the principal. On the other hand, it rules the internal relationship between principal and agent as well, thereby imposing certain duties on the representative (diligence, accounting, good faith, etc.).

Under section 201 to 210 an agency may come to an end in a variety of ways:

    (i) By the principal revoking the agency – However, principal cannot revoke an agency coupled with interest to the prejudice of such interest. Such Agency is coupled with interest. An agency is coupled with interest when the agent himself has an interest in the subject-matter of the agency, e.g., where the goods are consigned by an upcountry constituent to a commission agent for sale, with poor to recoup himself from the sale proceeds, the advances made by him to the principal against the security of the goods; in such a case, the principal cannot revoke the agent’s authority till the goods are actually sold, nor is the agency terminated by death or insanity. (Illustrations to section 201)
    (ii) By the agent renouncing the business of agency;
    (iii) By the business of agency being completed;
    (iv) By the principal being adjudicated insolvent (Section 201 of The Indian Contract Act. 1872)

The principal also cannot revoke the agent’s authority after it has been partly exercised, so as to bind the principal (Section 204), though he can always do so, before such authority has been so exercised (Sec 203).

Further, as per section 205, if the agency is for a fixed period, the principal cannot terminate the agency before the time expired, except for sufficient cause. If he does, he is liable to compensate the agent for the loss caused to him thereby. The same rules apply where the agent, renounces an agency for a fixed period. Notice in this connection that want of skill continuous disobedience of lawful orders, and rude or insulting behavior has been held to be sufficient cause for dismissal of an agent. Further, reasonable notice has to be given by one party to the other; otherwise, damage resulting from want of such notice, will have to be paid (Section 206). As per section 207, the revocation or renunciation of an agency may be made expressly or impliedly by conduct. The termination does not take effect as regards the agent, till it becomes known to him and as regards third party, till the termination is known to them (Section 208).

When an agent’s authority is terminated, it operates as a termination of subagent also. (Section 210).

Saturday 24 March 2012

Modern Hindu law


Modern Hindu law refers to one of the personal law systems of India along with similar systems for Muslims, Sikhs, Parsis, and Christians. This Hindu personal law or modern Hindu law is an extension of the Anglo-Hindu Law developed during the British colonial period in India, which is in turn related to the less well-defined tradition of Classical Hindu Law. The time frame of this period of Hindu law begins with the formal independence of India from Great Britain on August 15, 1947, and extends up until the present. While modern Hindu law is heralded for its inherent respect for religious doctrines, many still complain that discrimination (especially with the historical tradition of the caste system) still pervades the legal system. Though efforts to modernize and increase the legal rights of the marginalized have been made (most notably with the passage of the Hindu Code Bills and the establishment of notable legal precedents), the modern legal situation is, like all legal systems across the world, far from perfect.
History
With the formal independence of India from Great Britain on August 15, 1947, India acquired a new constitution as well as a complex legal system. While a Western influence is apparent in this system, it is not an exact replication. The Indian legal system has characteristics of common law, but is codified and thus is actually more similar to civil law in nature. The modern Hindu legal system is applied to strictly personal law, including issues of marriage, inheritance and adoption, whereas India's secular legal system is applied to issues of criminal law and civil law.
India's first prime minister, Jawaharlal Nehru, worked to unify the newly independent India by proposing the reformation and codification of Hindu personal law. Nehru's efforts led to contentious debates over the so-called Hindu Code Bill, which he offered in the Indian parliament, as a way to fix still unclear elements of the Anglo-Hindu law. The Hindu Code Bill was initially and continues to be very controversial within and outside of the Hindu community. Criticism of the document is based on the belief that the laws in the Hindu Code bill should apply to all citizens regardless of religious affiliation. Though a small minority suggested some kind of return to classical Hindu law, the real debate was over how to appropriate the Anglo-Hindu law.

Nehru completed codification and partial reform, but overall the legal system only slightly changed. In the end, a series of four major pieces of personal law legislation were passed in 1955-56 and these laws form the first point of reference for modern Hindu law: Hindu Marriage Act (1955), Hindu Succession Act (1956), Hindu Minority and Guardianship Act (1956), and Hindu Adoptions and Maintenance Act (1956). Though these legislative moves purported to resolve still unclear parts of the Anglo-Hindu law, the case law and interpretive tradition of British judges and Indian judges in the British employ remained and remains crucial to the application of modern Hindu law.

The overall effect of the codification of these rules was negative. It was codified for the Hindus yet left them with limited legal option, as well as tried to stamp out any diversity name of "Hindu unity".To no surprise it also caused a deep rift between Hindus and Muslims. Some other negative effects included:

  • It gave Hindu women the notion that they now had equal rights.
  • Compared to the religious Muslim law, Hindu law appeared to be secular in nature, and thus the only way Muslims could "secularize" laws in essence to "Hinduize" it.
  • Codification fossilized Hindu law and customs into a conservative mold.
Application of Modern Hindu Law

As stated by Article 44 of the Indian Constitution, India is a secular state that strives towards legal uniformity. Many argue that the commitment of the Indian government towards this gradual uniformity of the legal system threatens the minority religious groups that utilize the plurality of the law to maintain traditions and implement their religious laws. While modern Indian Law claims to make strides towards secularism, it is undeniable that its foundations rise from the Hindu legal tradition and continues to maintain religious legal acceptance by recognizing the personal and family laws of the Islamic, Christian, Jewish, and Hindu religions.

Before discussing the modern application and sources of Hindu law it is important to outline whom thse laws govern. In the case of Hindu personal and family laws, as outlined by the Acts of Parliament discussed below, those that are followers the Hindu religion, as well as those who are not Christian, Jewish or Muslim, are held accountable to these laws. Therefore, it is assumed that all Indians who are not Muslim, Jewish or Christian are Hindu, disregarding personal religious laws of followers of Buddhist, Jain, Sikh and other religions, creating controversy within these communities. The Indian legal system does recognize Muslim, Jewish and Christian family courts as well as secular family courts.
Sources of Modern Hindu Law

Sources of Classical Hindu law arose from the religious texts of the Dharmaśāstra, as well as sadachar or customs, and commentaries or digests that translated and interpreted the laws. Since British colonialism, India has codified several aspects of the Hindu tradition into the Indian legal system as well as adopted common and civil legal procedures.
Legislation

Legislation, as created and implemented by the Indian government, is the strongest source of law in all Indian courts. In the case of two conflicting sources, legislation holds the highest jurisdiction. While it is not a traditional source of law for the Hindu legal system, it is the latest and most legitimate form.

During colonialism, the British codified several aspects of the Hindu legal tradition into the Indian legal system, with the assumption that all Indians were Hindus. Thus upon gaining independence, many of the same laws that governed the country during colonialism were maintained as such, making the Indian Constitution and legal system heavily laden with Hindu legal traditions at its foundation.
Case Law

India is based on the British common legal system, thus the courts rely heavily on stare decisis, or precedent, when deciding cases. Any case decision made by a higher court is a source of law to all of the lower courts, in the prospect that the laws will be applied in a similar manner. The Hindu family courts are expected to follow laws handed down from previous cases.

Modern Hindu law relies on the interpretation of judges and their ability to decipher mitigating factors within each legal situation. This is reflective of the ancient Hindu legal tradition of working out problems on a case specific basis in finding justice in each specific instance.
Notable Legal Precedents and Legislation

As is the case with many global legal systems that rely on precedents as a source of law, certain cases stand out that have shaped the Indian legal system into what it is today. Not only do they provide the foundation for future legal cases but they also make a statement about the state of the country and what direction it wants to lead. One such case came about during the efforts of modernization reforms in India. Known as the Medical Termination of Pregnancy Act (1971), the law allowed Indian women to legally obtain abortions. Thus this law made not only a religious statement, as India was trying to become more secular, but also made a statement of equality as it expanded the rights women had.

Another Act that most came to be was Early in December 2008, the marriage between a Hindu and a Christian was deemed invalid under the Hindu Marriage Act (1955) as the Act provides for only Hindu couples to enter into a wedlock, the Supreme Court has ruled. Allegedly, Raj had misinformed his wife about his social status and she filed for divorce. He claimed that the Hindu Marriage Act does not preclude a Hindu from marrying a person of another faith. Dismissing the Christian husband’s appeal, the apex court upheld the High Courts’s view that the marriage not valid under the Hindu Marriage Act, specifically pointing to the fact that Section 5 of the Act makes it clear that a marriage may be solemnized between any two Hindus if the conditions in the said Section were fulfilled.
Hindu Code Bills

Following independence, the postcolonial government led by Jawaharlal Nehru completed the codification and reform of Hindu personal law, a process that had been begun by the British. According to the British policy of noninterference, reform of personal law should have arisen from a demand from the Hindu community. This was not the case, as there was significant opposition from various Hindu politicians, organizations, and devotees who saw themselves unjustly singled out as the sole religious community whose laws were to be reformed. However, the administration saw such codification as necessary in order to unify the Hindu community, which ideally would be a first step towards unifying the nation. They succeeded in passing four Hindu Code Bills, including Hindu Marriage Act (1955), Hindu Succession Act (1956), Hindu Minority and Guardianship Act (1956), and Hindu Adoptions and Maintenance Act (1956).

Nehru and his supporters insisted that the Hindu community, which comprised 80% of the Indian population, first needed to be united before any actions were taken to unify the rest of India. Therefore, the codification of Hindu personal law became a symbolic beginning on the road to establishing the Indian national identity. Nehru also felt that because he was Hindu, it was his prerogative to codify specifically Hindu law, as opposed to Muslim or Jewish law.

Those in Parliament who supported the Bills also saw them as a vital move towards the modernization of Hindu society, as they would clearly delineate secular laws from religious law. Many also heralded the Bill’s opportunity to implement greater rights for women, establishing that such rights were necessary for India’s development.

The Hindu Code Bills are still controversial among some communities, including women's, nationalist, and religious groups. At the time of their creation, many portrayed them as a serious deviation from Hindu legal precedent. However, now many, including Nivedita Menon, argue that it is "misleading...to claim that Hindu personal law was reformed [in the 1950s]. It was merely codified, and even that was in the face of stiff resistance from Congress leaders."

Hindu law


Hindu law in its current usage refers to the system of personal laws (i.e., marriage, adoption, inheritance) applied to Hindus, especially in India. Modern Hindu law is thus a part of the law of India established by the Constitution of India (1950).

Prior to Indian Independence in 1947, Hindu law formed part of the British colonial legal system and was formally established as such in 1722 by Governor-General Warren Hastings who declared in his Plan for the Administration of Justice that "in all suits regarding inheritance, marriage, caste and other religious usages or institutions, the laws of the Koran with respect to the Mohamedans and those of the Shaster with respect to the Gentoos shall invariably be adhered to." The substance of Hindu law implemented by the British was derived from early translations of Sanskrit texts known as Dharmaśāstra, the treatises (śāstra) on religious and legal duty (dharma). The British, however, mistook the Dharmaśāstra as codes of law and failed to recognize that these Sanskrit texts were not used as statements of positive law until they chose to do so. Rather, Dharmaśāstra contains what may be called a jurisprudence, i.e., a theoretical reflection upon practical law, but not a statement of the law of the land as such. Another sense of Hindu law, then, is the legal system described and imagined in Dharmaśāstra texts.

One final definition of Hindu law, or classical Hindu law, brings the realm of legal practice together with the scholastic tradition of Dharmaśāstra by defining Hindu law as a usable label for myriad localized legal systems of classical and medieval India that were influenced by and in turn influenced the Dharmaśāstra tradition. Such local laws never conformed completely to the ideals of Dharmaśāstra, but both substantive and procedural laws of the tradition did impact the practical law, though largely indirectly. It is worth emphasizing that Sanskrit contains no word that precisely corresponds to 'law' or religion and that, therefore, the label "Hindu Law" is a modern convenience used to describe this tradition.

This article will briefly review the Hindu law tradition from its conceptual and practical foundations in early India (Classical Hindu Law) through the colonial appropriations of Dharmaśāstra (Anglo-Hindu Law) to the establishment of the modern personal law system (Modern Hindu Law).

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Indian Penal Code - 1860

Structure : Indian Penal Code, 1860, sub-divided into twenty three chapters, comprises five hundred and eleven sections. The code starts with an introduction, provides explanations and exceptions used in the code, and covers a wide range of offences. The Outline is presented in the following :

INDIAN PENAL CODE, 1860 (Sections 1 to 511) Chapter           Sections Covered       Classification of Offences
Chapter I          Sections 1 to 5             Introduction
Chapter II        Sections 6 to 52           General Explanations

·        Definitions in the Code, subject to exceptions (Section 6)

Chapter III       Sections 53 to 75         of Punishments
Chapter IV       Sections 76 to 106       General Exceptions of the Right of Private Defence (Sections 96 to 106)


Chapter V        Sections 107 to 120                 Of Abetment
Chapter VA     Sections 120A to 120B            Criminal Conspiracy Added in 1913


Chapter VI       Sections 121 to 130     Of Offences against the State
Chapter VII      Sections 131 to 140     Of Offences relating to the Army, Navy and Air Force

Navy and Air Force: Added in 1927
Chapter VIII    Sections 141 to 160     Of Offences against the Public Tranquillity
Chapter IX       Sections 161 to 171     Of Offences by or relating to Public Servants
Chapter X        Sections 172 to 190     Of Contempts of Lawful Authority of Public Servants
Chapter XI       Sections 191 to 229     Of False Evidence and Offences against Public Justice
Chapter XII      Sections 230 to 263     Of Offences relating to coin and Government Stamps
Chapter XIII    Sections 264 to 267     Of Offences relating to Weight and Measures
Chapter XIV    Sections 268 to 294     Of Offences affecting the Public Health, Safety, Convenience, Decency and Morals
Chapter XV     Sections 295 to 298     Of Offences relating to Religion
Chapter XVI    Sections 299 to 377     Of Offences affecting the Human Body

·        Of Offences Affecting Life including murder, culpable homicide (Sections 299 to 311)
·        Of the Causing of Miscarriage, of Injuries to Unborn Children, of the Exposure of Infants, and of the Concealment of Births (Sections 312 to 318)
·        Of Hurt (Sections 319 to 338)
·        Of Wrongful Restraint and Wrongful Confinement (Sections 339 to 348)
·        Of Criminal Force and Assault (Sections 349 to 358)
·        Of Kidnapping, Abduction, Slavery and Forced Labour (Sections 359 to 374)
·        Sexual Offences including rape (Sections 375 to 376)
·        Of Unnatural Offences (Section 377)

Chapter XVII   Sections 378 to 462     Of Offences Against Property

  • Of Theft (Sections 378 to 382)
  • Of Extortion (Sections 383 to 389)
  • Of Robbery and Dacoity (Sections 390 to 402)
  • Of Criminal Misappropriation of Property (Sections 403 to 404)
  • Of Criminal Breach of Trust (Sections 405 to 409)
  • Of the Receiving of Stolen Property (Sections 410 to 414)
  • Of Cheating (Section 415 to 420)
  • Of Fraudulent Deeds and Disposition of Property (Sections 421 to 424)
  • Of Mischief (Sections 425 to 440)
  • Of Criminal Trespass (Sections 441 to 462)

Chapter XVIII Sections 463 to 489     Of Offences relating to Documents and Property Marks

  • Of Property and Other Marks (Sections 478 to 489)
  • Of Currency Notes and Bank Notes (Sections 489A to 489E)

Added in 1958[3]
Chapter XIX    Sections 490 to 492     Of the Criminal Breach of Contracts of Service
Chapter XX     Sections 493 to 498     Of Offences Relating to Marriage
Chapter XXA   Sections 498A Of Cruelty by Husband or Relatives of Husband

Added in 1983
Chapter XXI    Sections 499 to 502     Of Defamation
Chapter XXII   Sections 503 to 510     Of Criminal intimidation, Insult and Annoyance
Chapter XXIII Section 511      Of Attempts to Commit Offences