Escolar Documentos
Profissional Documentos
Cultura Documentos
MB0035
LEGAL ASPECTS OF BUSINESS
(3 credits)
Set I
Marks 60
Each question carries 10 marks
money will have to be paid even after the refusal of tender of course without
interest from the date of refusal. In case of a suit, cost of defence can also
Dishonour by Non-acceptance:
A bill of exchange is said to be dishonoured by non-acceptance when the
drawee makes default in acceptance upon being duly required to accept the
bill.
Dishonour by Non-payment:
A promissory note, bill of exchange or cheque is said to be dishonoured by
non-payment when the maker of the note, acceptor of the bill or drawee of
the cheque makes default in payment upon.
Effect of Dishonour
As soon as a negotiable instrument is dishonoured (either by non-
acceptance or by non-payment) the holder becomes entitled to sue the
parties liable to pay thereon. The drawer of cheque, maker or note, acceptor
and drawer of bill and all the indorsers are liable severally and jointly to a
holder in due course. The holder must, however, give ‘notice of dishonour’
to all parties against whom he intends to proceed. He may (at his option)
also have the instrument ‘noted and protested’ before a notary public.
1. When the party primarily liable on the instrument (i.e., the maker of the note,
acceptor of the bill or drawee bank) makes the payment in due course to
the holder at or after maturity. A payment by a party who is secondarily liable
does not discharge the instrument because in that case the payer holds it
to enforce it against prior indorser and the principal debtor.
4. When the holder cancels the instrument with an intention to release the
party primarily liable thereon from the liability, the instrument is
discharged and ceases to be negotiable.
1. It must be in writing [Section 7(3)]: Like the old law, the new law also
requires the arbitration agreement to be in writing. It also provides in
section 7(4) that an exchange of letters, telex, telegrams, or other
means of telecommunications can also provide a record of such an
agreement. Further, it is also provided that an exchange of claim and
defence in which the existence of an arbitration agreement is alleged by
one party and not denied by the other, will also amount to be an
arbitration agreement.
It is not necessary that such written agreement should be signed by the
parties. All that is necessary is that the parties should accept the terms
of an agreement reduced in writing. The naming of the arbitrator in the
arbitration agreement is not necessary. No particular form or formal
document is necessary.
Types of Companies
Companies may be classified into various categories as shown in the chart
below:
Companies