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Business Laws/ Legal Aspects of Business

Assignment A
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The fundamental attribute of corporate personality is that company is a legal


entity distinct from the members.Elucidate the statement .Also specify the
important features of a company.
Elaborately explain the essential features of the consumer protection act 1986.
Also briefly discuss unfair trade practice and restrictive trade practice as discussed
under consumer protection Act?
What are the characteristics of negotiable Instrument? Discuss the privileges of
holder in due course as per the provisions of the Negotiable Instruments Act,
1881? Also state the important amendment to be incorporated under sec 138 of the
act.
Discuss the essential elements of a valid contract.
Write short notes on any three of the following.
(a) A stranger to the consideration can enforce the contract. Explain the
exceptions in the following.
Supervening Impossibility
ii-

Novation

(b)Anticipatory breach of Contract


(c) A private company has only 2 shareholders who are also the directors
with equal rights of management and voting power. The company has made large
profits, but there is a complete deadlock in the management of the company. One
of the shareholders applied for the winding up of the company. Decide at what
moment does a winding up by the court commence?
(d) What is a Prospectus? Is it obligatory for a company to file a prospectus or a
statement in lieu of prospectus with the Registrar of Companies?
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(e) What is meant by the rule of Caveat Emptor and what are its exceptions?
Explain - different modes of crossing of a cheque and section 138 as per the
provisions of the Negotiable Instrument Act, 1881.
A company is a legal person distinct from its members taken individually or
collectively. Comment. Also detail the important features of a company.
Discuss consumer dispute redressal forums & consumer councils with respect to its pecuniary
(Financial) jurisdictions?

Assignment B
Read the case study given below and answer the questions given at the end
Case Study
Aditya Mass Communication Private Limited
Vs
A.P. state Road Transport Corporation
A.P. State Road Transport Corporation, Hyderabad advertised tender notice on calling for tenders
for display of advertisements on the buses owned by it. According to the condition of the Tender

Notice, each tender form had to be accompanied by a demand draft for Rs 20 lakhs and tender
forms completed in all respects had to be put in the tender box. The accompanying sum of money
was the Earnest Money Deposit (E.M.D). Clause (10) of the terms provided that the tender will be
opened at 3:00 p.m. on October 31, 1996, in presence of the tenderers or their authorized agents.
Clause (14) provided that tenderers will not be permitted to withdraw their tender after the tenders
were opened .Clause (15) provided that if the highest tenderer backs out from taking up the
agency , for whatsoever reason, the E.M.D. paid by him will be forfeited.
Aditya mass Communication Private Limited submitted its duly filled tender along with demand
draft of Rs. 20 lakhs. In relation to this tender, another person approached the High Court and got
an order restraining the Transport Corporation from proceeding further with the tender. Following
the order, the A.P. State Road Transport Corporation opened the tender box at 3 p.m. and found
six sealed covers. In view of the directions of the High Court, the covers were again placed back
in the tender box without opening the seals. The signature of the tenderers and their agents was
taken to this effect .The tenders were not opened to find out the highest bidder. Aditya Mass
Communication Private Limited wrote a letter on November 11, 1996 stating that no reasons were
given to him for non-opening of the tenders and that he could not keep the huge amount of Rs 20
lakhs locked in with all the uncertainty associated with the tender. It, thus, requested for return of
the Earnest Money Deposit. A.P. State Road Transport Corporation replied on November 14, 1996
that the Aditya Mass communication had signed on the note recording the proceedings of
opening the tender box and putting back sealed covers. Thus, it could not put up the argument
that no reasons for non-opening of the tender was given on it. The letter notified that the tenders
would be opened on November 16, 1996 at 11:30 hrs. Aditya Mass Communication once again
wrote a letter on November 15, 1996 that the question of their participation in the opening of
tenders did not arise as they asked for the return of E.M.D. The A.P. State Road Transport
Corporation went ahead with the opening of the tender, found Aditya Mass Communication to be
the highest bidder and awarded the tender to it. Aditya Mass Communication was informed of this
but it demanded refund of Earnest Money Deposit. The A.P. State Road Transport Corporation
following the terms of tender forfeited the earnest money deposit of Aditya Mass Communication.

Q1. Elaborately state the important legal issue/s covered under this case.
Q2. What are the essential features of a tender?
Q3. Give your reasons in support of your decision for the issue discussed in this
case.

Assignment C
Annual general Meeting is required to be held--Options
By a private company only
By a public company only
By a company limited by guarantee only
By all kinds of companies