COURSE FOUNDATION OF MERCANTILE LAW - I
TITLE
Course Learning Outcomes:
On successful completion of the module, students will be:
1. Students will be equipped with awareness about basic legal framework governing business, trade and
commerce in India.
2. Students will be acquainted with theoretical principles of formation of contract, performance of
contract, discharging a contract and legal remedies in case of breach of contract and types of
contracts related with trade, commerce and industry.
3. Students will understand the interpretation and application of laws through study of various Case-
laws.
4. Students will develop a skill of drafting and understanding legal documents and will also develop a
sense of their legal rights and duties in a contract.
Commerce degree Program would be incomplete without the inputs of a basic legal
Gist of this framework of trade, commerce and industry. This course is of practical importance as it
course in acquaints the students with the theoretical principles related to contract law, right from
maximum 3 formation to discharge of contract, legal remedies in case of breach of contract and various
to 4 lines types of special contracts. The study of foundation of mercantile laws is therefore of utmost
relevance.
Detailed syllabus
No. of
Unit CONTENTS OF THE COURSE
Lectures
1.Indian 1.1 Meaning of Law, origin, types and importance of laws, relation between 02
Contract Act, Law and Act.
1872:Introducti 1.2 Meaning of mercantile law, scope and its importance
on 1.3 Origin of contract law in India
1.4 Historical background of Indian Contract Act, 1872
1.5 Nature, purpose and significance of contracts
2.Proposal, 2.1 Proposal / Offer – definition, meaning, examples, parties, Rules of a 08
Acceptance and legal and valid proposal, revocation of a proposal, invitation to a proposal
Consideration 2.2 Acceptance – definition, meaning, examples, promise, parties, Rules of a
legal and valid acceptance
2.3 Consideration – definition, meaning, examples, Rules of a legal and
valid consideration
2.4 Importance of consideration in a contract, ‘No consideration – no
contract’ principle with exceptions
2.5 Landmark case-laws
3. Definitions 3.1 Important definitions of certain concepts – agreement, contract 02
and types of 3.2 Types of agreement – void agreement, contract
Agreements 3.3 Types of Contract – valid, void, voidable, express, implied, executory,
and Contracts executed
4. Formation of 4.1 Essential requirements for a contract – Methodology of entering into a
a Contract contract, whether a contract has to be in writing
(Sections 10 to 4.2 Competent parties – sound mind person, major person, person not
30) disqualified by law. Effect of agreement by an incompetent party
4.3 Free consent – consent caused by coercion, undue influence, fraud,
misrepresentation, mistake. Effect of unfree consent on contract 14
4.4 Lawful considerations and lawful objects – meaning and effect on
agreement
4.5 Void agreements – types of void agreements, agreements expressly
declared as void, wagering agreements
5. Contingent 5.1 Contingent contract – definition, meaning and examples 04
Contracts and 5.2 Rules of enforcement of contingent contracts
Quasi 5.3 Similarity and differences between contingent contract and wagering
Contracts agreement
5.4 Meaning of Quasi-contract – certain relations resembling to those
created by contracts
5.5 Various types of Quasi-contracts
5.6 Responsibility of finder of lost goods
5.7 Legal remedy in case of breach of Quasi-contract
5.8 Landmark case-laws
6. Discharge of 6.1 Meaning of discharge of contract 05
contract 6.2 Methods of discharging a contract
6.3 Breach of contract – meaning and types
6.4 Frustration of contract
6.5 Novation, Rescission and Alteration of contract
6.6 Remission and Waiver of contract
6.7 Accord and Satisfaction
7. Legal 7.1 Meaning of a legal remedy 05
Remedies for 7.2 Suit for Rescission
Breach of 7.3 Suit for Specific Performance of Contract
Contract 7.4 Suit for an Injunction
7.5 Suit on ‘Quantum Meruit’ principle
7.6 Suit for Damages – meaning of damages, rules for calculation of
damages, types of damages, liquidated damages and penalty
7.7 Landmark case-laws
8. Special 8.1 Various types of special contracts under Indian Contract Act, 1872 – 14
Contracts their significance and application in the business world
8.2 Indemnity contract – definition, parties, examples, essential
requirements, importance
8.3 Guarantee contract – definition, parties, examples, essential
requirements, importance, similarity and differences between indemnity and
guarantee
8.4 Bailment contract – definition, parties, examples, essential requirements,
importance
8.5 Pledge contract – definition, parties, examples, essential requirements,
importance, similarity and differences between bailment and pledge
contracts
8.6 Agency contract – definition, parties, examples, essential requirements,
importance
Total Number of Lectures 54
Suggested Reference Books:
1. M.C. Kuchhal - ‘Mercantile Law’ - By Vikas Publishing House, New Delhi
2. Avtar Singh - ‘Indian Contract Act’ – By Eastern Book Co. Lucknow
3. P.C. Tulsian – ‘Business Law’ – By Tata McGraw Hill Publishing Co. Ltd., New Delhi
4. Tejpal Sheth – ‘Business Law’ – By Pearson Publications, Noida
5. Sushma Arora – ‘Business Law’ – By Taxmann’s Publication, New Delhi
6. Bare Act of ‘Indian Contract Act, 1872’
