commercial and labour laws
topic – “Contract of sale of sugar”
Submitted to: -Submitted by:-
Prof. Arvind MalhotraAjay Garg
P.G. Deptt. Of Commerce,B.Com - I
Arya College, Ludhiana3514
Acknowledgement is a vote of thanks. I am extremely grateful to all my teachers, my parents and my friends, without whom this project would have been impossible. I would take it as a highly esteemed priviledge in expressing my sincere thanks to my “Commercial and Labour Law” teacher “Prof. Arvind Malhotra” for showing his personal interest, affection and friendly behavior which have been a great source of inspiration to me In completing my project work. I think any theoretical study remains incomplete without project.
M/s SRS Ltd offers to RK Traders to purchase 100 Tonnes of sugar @ Rs. 38/- per kg. Following conditions must be complied with for acceptance.
1. This offer is conditional on the purchaser arranging for and receiving within in 7 days from the date of acceptance of this offer, a satisfactory inspection of the goods.
2. This offer is conditional on the purchaser to bear all the charges for lifting of the goods.
3. This offer is conditional on the purchaser to lift the material within 30 days from the date of acceptance, otherwise have to pay additional Rs. 5 per kg for the unlifted goods.
4. This offer is conditional on the purchaser to make advance payment @ 8/- per kg within 7 days of acceptance, through Demand Draft.
5. This offer is conditional on the purchaser to make balance payment of 30/- per kg through Demand Draft, within 7 days of lifting of contracted goods.
6. This offer is conditional on the purchaser, if he fails to make balance payment on time, interest will b chargeable @3% p.m. on the unpaid amount.
M/s SRS Ltd
Thanks for sending me your offer. I have read it thoroughly and carefully. I signed the offer as requested and kept its duplicate copy as suggested.
I would like to thank you for this wonderful opportunity and I eagerly anticipate starting business with XYZ Corp. I would fulfill the requirements as mentioned in the offer letter.
If there is any additional information or paperwork you need in advance of my start date, please let me know.
For RK Traders
The above contract stands valid if all the conditions in the offer mentioned are accepted. So in case any party fails on his part to perform his task, the aggrieved party can legally enforce the other party for the breach of contract.
Contract and Essentials of a Valid Contract
An offer and its acceptance, results in an agreement. An agreement enforceable at law becomes a Contract, but it holds valid only if it satisfies the essentials l aid down in section 10:-
1. Lawful offer and acceptance
* Offer and Acceptance must be communicated
* Offer can be revoked at any time prior to acceptance * Offer must be distinguished from invitation to an offer and acceptance must be distinguished from a counter offer. * Acceptance if posted then its complete on the date posted, if by phone, fax, or email, it’s complete when received.
2. Intention to create legal relationship
* Parties must intend to be bound by the contract
* Non performance of the contract can lead to legal enforcement.
3. Capacities of parties
* Only competent parties are capable to contract
* A major, not disqualified from entering into a contract and of sound mind is competent for a contract.
4. Lawful consideration
* Parties must give and take something in return.
* Can be past, present and future
* Must be real, lawful and evaluable.
5. Free consent
* Must be free i.e. not affected by coercion, undue infulence, misrepresentation, fraud and mistake. *...