ICFAI BUSINESS SCHOOL, IFHE, HYDERABAD

MBA. SEMESTER II
LEGAL ENVIRONMENT OF BUSINESS
Course Handout
Academic Year: 2018 – 2019

Name of the Faculty Member K.Rajyalakshmi Room No F 006 Mobile No

Mail ID Consultation Hours
Course Objective: The course envisages providing students with:
 The basic knowledge of the legal system in which business entities function.
 Understanding of the structure and interpretation of laws which are relevant to the functioning of business entities.
 A functional knowledge of laws of the land which impact business decisions.

Recommended Text Book Edition Author Publisher

Legal aspects of Business 6th Akhileshwar Pathak Mc Graw Hill Education
Suggested Readings
1. Legal aspects of Business 4th Ravinder Kumar Cengage
2. Elements of Mercantile Law 35th N.D.Kapoor Sultan Chand & Sons

EVALUATION PATTERN
Component TEST 1 TEST 2 TEST 3 CP TERM END TOTAL
Weightage (%) 20 20 10 10 40 100
Time of Evaluation ( Session) 11 21 33 33 REAL TIME -
Uploading of Marks ( Session) 12 22 33 33 REAL TIME -

INSTRUCTIONS TO STUDENTS:
1) Attend the classes regularly. Minimum attendance required for the course is 75%. Late comers will be marked Absent
2) Students who do not fulfill the required minimum attendance criteria will be given ‘F ’grade, even though they score good marks in a test.
3) No makeup tests will be conducted for the tests not taken by the student on scheduled dates. Conducting a makeup test is at the discretion of the faculty member. The student cannot claim
it as a right.
4) Come prepared to the class by reading the prescribed case / chapter scheduled for the day, so that class room discussions would be brisk and meaningful and facilitate learning.
5) Seek clarification for your doubts in the class room itself, so that others too, would get benefitted of them. Please note that no doubt is too small to be dealt in the class room.
6) Coming late, wearing dress other than the formal ones, using cell phones, bringing the newspapers / periodicals, cross talking, sitting in a seat other than the allotted ones, giving proxy
attendance in the class are strictly prohibited
7) Do not indulge in unfair practices in and outside the class room, tests / assignments /examinations, etc. They warrant disciplinary action.
8) Please refer to IFHE Code of Conduct and Discipline Rules given in the Student’s Hand Bok. Follow discipline to avoid its enforcement
 DETAILED SYLLABUS CASE Chapter
1. Introduction to Legal aspects of Business, Need and Importance. Forms of Business Organizations 1
2. Definitions: Proposal, Promise, Consideration, Agreement and Contract; Classification of contracts, Essential features of valid Contract 2
3. Types of Offer,  Fisher & bell (Page.29) ; Carlill vs. Carbolic Smoke Ball Co.(Page. 121) 5,7
Rules for Offer , Acceptance and Consideration,  Lalman Shukla vs. Gauri Dutt; Chappell & Co.. vs. Nestle Co. .(Page 122)
4. Capacity to contract. Intention to create a contract.  Mohoribibi vs. Dharmodas Ghose ; Balfour vs. Balfour. ; Merritt Vs Merritt
5. Voidable Agreements, Quasi contracts ,Contingent Contracts 10
6. Legality of object, Illegal and unlawful agreements, Wager agreements, Void and  Void and Voidable Contracts: The Legal Dilemma
10
Voidable agreements
7. Performance & Discharge of Contract 8
8. Remedies for Breach of contract
9. Contracts of Indemnity, Guarantee, Lease, Hire purchase  State Bank of India vs. MSS Karkhana ltd ( Page 397) 20
10. Contracts of Bailment and Pledge ; Lien, Hypothecation, Mortgage, Gift, Exchange  Atul Mehra vs. Bank of Maharashtra.(Page.302) 15,
 Morvi Mercantile bank vs. union of India ( Page 320) 16,
 Bank of Chittoor vs. Narsimhulu ( Page 328) 17
11. NCP 1
12. Contract of Agency  Harshad J shah vs..L I C of India ( Page 439) 23
13. Sale of goods Act: Agreement to sell and sale, Conditions and warranties  Beale vs. Taylor ( Page 244) 11,12
14. Partnership: Formation, Registration, Mutual rights and duties of Partners ; LLP  Commissioner of Income Tax vs. M/s A W Figgis and co.( Page 466) 25
15. Formation of a Company, MOA & AOA  Solomon Vs Solomon and Company Ltd ( Page . 574)
30,31
 Ashbury Rly Carriage and Iron Co. Vs Riche ( Page.584)
16. Prospectus, share capital, Types of shares 33
17. Meetings and proceedings  Royal British bank Vs Turquand ( Page 587) 31,32
18. Company management: Directors, Appointment, Types Roles and Responsibilities, Oppression and Mismanagement 34
19. Arrangements and Reconstruction, Winding up of a company
20. Intellectual
\ Property Rights  R.G.Anand vs. Delux films ( Page 651);Identity of identical numbers 35, 36
21. NCP II
22. RBI & SEBI. Role and functions
23. Negotiable Instruments – Salient Features; Negotiability vs. Transferability, Payment of Cheques – Precautions to be taken
24. Dishonor of Cheques : Criminal liability  Laxmi Dyechem vs. state of Gujarat (Page 362). 18
25. Law of Insurance  Castellain vs. Preston ( Page 423)
26. Right to Information Act 41
27. Consumer Protection Act 1986  S. Meadows Hospital vs. H. Ahluwalia ( Page 498) 26
28. Arbitration, Conciliation & Mediation  Speedier Mitigation of Loss through Arbitration 42
29. Introduction to Income Tax
30. The I.T Act 2000  Business Transaction and Cyber Law 40
31. Environment legislations  Devils Eye and Dreamers Valley 43
32. The Competition Act, 2002  Belaire Owner’s association vs. DLF Limited( Page 543) 28
33. NCP III