1. What is law?

Give a proper definition and summarize the aspects of law The word law has different meanings for different people : A citizen may think of it as a set of rules he/she must obey. A lawyer may think of it as profession which he must practice. A legislation may look at it as something that is to be created. A judge may think of it as guidelines to follow for giving justice.

In words of Salmond Law Thus law represents a code of conduct which is established and enforced by law. The term law is often preceded by an adjective to give it a more precise meaning. Like criminal law, civil law etc. According to N.D.Kapoor Law includes all the rules and principles which regulates our relation with other individuals and with the state. The aspects of law can be summarize as follows 1. It is an abstract body of rules 2. It is a social machinery for securing order in community 3. Law is not static. As circumstances and conditions in a society change, laws are changed to fit the requirements of the society 2. Elaborate on object of Law and the need for the knowledge of the law The object of law is order and the result of the order is that men are enabled to look ahead with some sort of security as to the future. The main object of law is considered to be to establish socio-economic justice and remove existing imbalance in the socio-economic structure. So law has to play an important part in achieving the socio-economic goal. Ignorance of law is no excuse. This means that a person charged with criminal offence cant avoid the consequences citing that he was unaware of the law. So every human being should at least have some knowledge about the laws and regulations to abide by.

3. What is law of contract? Elaborate on jus in rem and jus in personam The law of contract is that branch of law which determines the circumstances in which, promises made by the parties to a contract shall be legally binding on them. Its rules define the remedies that are available in the court of law against those who fail to perform his contract and also the conditions under which remedies are available. The law of contract introduces definiteness in business transactions. The purpose of law of contract is to ensure the realization of reasonable expectations of the parties who enter into a contract. Jus in Personam : It means a right against or in respect of a specific person and is available against a particular person. E.g : John owes a certain amount of money to Tom. Tom has a right to recover his amount from John. This can only be done by Tom and only against John. This right of Tom is known as jus in personam. Jus in Rem : It means a right against a particular thing and is available against the world at a large. E.g : Ram is the owner of a plot of land. He has got every right to do whatever he wants to do on that particular land against every member of public. So every member of public are under obligations not to disturb Ram. This right of Ram is jus in rem.

17. Elaborate on the offence of Money Laundering and punishment as per PMLA 2009 (Amendment) Offence of Money Laundering : Whosoever directly or indirectly attempts to indulge or knowingly assists or knowingly is party or is actually involved in any process or activity connected with the proceeds of crime and projecting it as untainted property shall be guilty of offence of money laundering. Punishment For Money Laundering : Whosoever commits the offence of money laundering shall be punishable with rigorous imprisonment for a term which shall not be less than three years but which may extend to seven years and shall be also liable to fine which may extend up to 5lakhs rupees.

4. Define contract and elaborate on the characteristics of an agreement? 1. A contract is an agreement enforceable by law. Contract essentially contains two parts : An agreement Its enforceability by law. An agreement is defined as every promise and set of promises, forming consideration for each other. A promise is defined as when the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. A proposal when accepted becomes a promise. Thus an agreement is an accepted proposal. In order therefore, to form an agreement, there must be a proposal or offer by one party and its acceptance by the other. To sum up : Agreement = Offer + acceptance. Characteristics of an agreement : Consensus ad idem : An agreement to become a contract, there should be consensus ad idem, meaning that the parties in the agreement must have agreed upon same subject matter in the same sense and at same time. Unless there is consensus ad idem, there can be no contract. Obligations : An agreement to become a contract, must give rise to legal obligation or duty. The term obligation means a legal tie which imposes upon a definite person or persons the necessity of doing or abstaining from doing a definite act or acts. To sum up : Contract = Agreement + enforceability at law. All contracts are agreements, but all agreements are not necessarily contracts.

5. What are the essential elements of a valid contract Essential elements of a valid contract : In order to become a contract, an agreement must have the followings : Offer and acceptance : There must be two parties to an agreement, one making the offer and one accepting it. The term of the offer must be definite and the acceptance must be unconditional and absolute. Intention to create legal relationship : When two parties enter into an agreement, their intention must be to create legal relationship between them. If there is no such intention on the part of parties then there can be no contract. Lawful consideration : An agreement to be enforceable by law must be supported by consideration. Means there should be something in return. The agreement is enforceable when both parties give something and get something in return. The promise made in the agreement should be real and lawful. Capacity of parties-competency : The parties to the agreement must be capable of entering into a valid contract. A person is said to be competent if : He/she is of the age of majority. He/she is of sound mind. He/she is not disqualified from contracting by any law to which he/she must subject. Free and Genuine Consent : It is essential to the creation of every contract that there must be a free and genuine consent of the parties to the agreement. The consent of the parties is said to be free when they are of the same mind on all the material terms of the contract. Lawful Object : The object of the agreement must be lawful. Means the object shouldnt be illegal, immoral and opposed to public policy. Agreement not declared void : The agreement must not have been expressly declared void by any law in force in the country. Certainty and possibility of performance : The agreement must be certain and not vague or indefinite. Legal Formalities : A contract must be in writing and duly documented, meaning, stamped and registered where it is necessary.

6. Elaborate on voidable, void, illegal and unenforceable contracts A contract is based on an agreement. An agreement becomes a contract it must satisfy all the essential elements of contract. If one or more element is missing it is termed as voidable, void, illegal or unenforceable. Voidable Contract : Voidable contract is an agreement which is enforceable by law at the option of one or more the parties thereto, but not at the option of the other. This happens when the free consent is missing from the picture. Means it is caused by undue influence, misrepresentation, fraud or by coercion. The contract becomes voidable when : A person promises to do something for the other person, but the other person tries to stop him from doing so. When a party in the contract promises to perform obligations in specified time period but fails to do so. Void Agreement and Void Contract : Void Agreement : An agreement not enforceable by law is said to be void. Void agreement doesnt create any legal rights or obligations. It is a nullity and void ab initio. Void Contract : A contract which ceases to be enforceable by law becomes void when it creates to enforceable. Illegal Agreement : An illegal agreement is one which transgress some rule of basic public policy or which is criminal in nature or which is immoral. All illegal agreements are void but all void agreements are not necessarily illegal. An illegal agreement can have further effect on the collateral transactions too. Unenforceable Contracts : An unenforceable contract is one which cant be enforced in a court of law because of some technical defects such as writing.

7. Elaborate on contracts according to formation and according to performance Classification of contracts according to formation : A contract may be (A) made in writing or by word of mouth or (B) inferred from the conduct of parties or the circumstances of the case. Express Contract : If the terms of the contract are expressly agreed upon at the time of the formation of the contract, the contract is said to be an express contract. Implied Contract : An implied contract is one inferred from the acts or conduct of the parties. There is an implied contract when a person : (a) Gets into local train. (b) Gets into the public bus. (c) Uses a cyber caf. Quasi Contract : This is not a contract at all. It is a contract created by law. It rests on the ground of equity that a person shall not be allowed to enrich himself unjustly at the expense of another. It is created for equitable purpose and not for contractual purpose. It is used when a court finds it appropriate to create an obligation upon a non contracting party to avoid injustice and to ensure fairness. Classification of contracts according to performance : Executed Contract : The meaning of executed means done. This contract is one in which both parties have performed their respective obligations. Executory Contract : It means that which remain to be carried into effect. An executory contract is one in which both parties have yet to perform their respective obligations.

8. What are the legal rules as to offer? Legal rules as to offer : Offer should be such that it should be capable of being accepted and creating legal relationship. The term offer must be definite, unambiguous and certain and not loose and vague. A declaration of intention is not an offer. Such a declaration only means that an offer will be made or invited in future and not that an offer is made now. A statement of price is not an offer. Offer must be communicated. An offer to be complete it must be communicated to the person to whom it is made. Offer must be made with a view to obtaining the assent of the other party addressed and not merely with a view to disclosing the intention of making an offer. Offer should not contain a term of non-compliance of which may be assumed to amount of acceptance. Thus a person cant say that if acceptance is not communicated by a certain time, the offer would be considered as accepted. Statement of price is not an offer.

8. What are the legal rules as to acceptance? Legal rules as to acceptance : An acceptance in order to be binding must be absolute and unqualified in respect of all terms of the offer, whether material or immaterial, major or minor. The parties must be ad idem. To conclude a contract between the parties, the acceptance must be communicated in some form to the offeror by the offeree It must be according to the mode prescribed or usual and reasonable mode. It must be within a reasonable time. It cant precede an offer. It must show intention on the part of the acceptor to fulfill the terms of the promise. It must be given by the party or parties to whom the offer is made. It must be given before the offer lapses or before the offer is withdrawn. It cant be implied from silence.

10. Elaborate on communication of offer, acceptance and revocation Communication of offer, acceptance and revocation. An offer, its acceptance and revocation to be complete must be communicated. Offer, acceptance and revocation may be communicated by words spoken, written or by conduct. The communication is said to be complete when : (a) The communication of an offer is complete when it comes to the knowledge of the person whom it is made. (b) The communication of the acceptance is complete: As against proposer, when it is put into course of transmission to the offeror and is out of the power of acceptor. As against the acceptor, when it comes to the knowledge of the proposer. Communication of Revocation : Revocation means taking back, recalling or withdrawal. The communication of a revocation of offer or acceptance is complete : (a) As against the person who makes it, when it is put into course of transmission to the person to whom it is made, so as to be out of power of the person who makes it. (b) As against the person whom it is made, when it comes to his knowledge. Time for revocation of offer and acceptance : (a) Time for revocation of proposal : A proposal may be revoked at any time before the communication of its acceptance is complete as against the proposer, but not afterwards. (b) Time for revocation of acceptance : An acceptance may be revoked at any time before the communication of the acceptance is complete as against the acceptor, but not afterwards.

11. Discuss promissory notes, bill of exchange, cheques Promissory Note : A promissory note is an instrument in writing containing an unconditional undertaking, signed by the maker, to pay a certain amount of money only to, or the order of a certain person, or to the bearer of the instrument. The person who makes the promissory note and promises to pay is called the maker. The person to whom the payment is made is called the payee. Essential elements of a promissory note are : (a) The instrument must be in writing. (b) The instrument must contain an express promise to pay. (c) The promise to pay must be definite and unconditional. (d) Signed by the maker. (e) Certain parties. (f) Certain amount of money. (g) Promise to pay money only. (h) Bank note or currency note is not a promissory note. (i) It may be payable on demand or after a definite period of time. (j) It cant be made payable to bearer on demand. Bill of Exchange: A bill of exchange is an instrument in writing containing an unconditional money only to, or to the order of, a certain person or to the bearer of the instrument. There are three parties to a bill of exchange the drawer, the drawee and the payee. The person who gives the order to pay or who makes the bill is called the drawer. The person who is directed to pay is called the drawee. When the drawee accepts the bill, he is called the acceptor. The person to whom the payment is to be made is called the payee. Cheque : A cheque is a bill of exchange drawn upon a specified banker and payable on demand. A cheque is a species of a bill of exchange, but it has the following two additional qulaifications : (a) It is always drawn on a specified banker. (b) It is always payable on demand. All cheques are bills of exchange, but all bills of exchange are not cheques. A cheque doesnt require acceptance as it is intended for immediate payment.

12. Define data message, EDI, originator, addressee, intermediary as per UNCITRAL Definitions as per UNCITRAL : Data Message : Means information generated, sent, received or stored by electronic, optical or similar means including, but not limited to, electronic data interchange, electronic mail, telegram or telecopy. Electronic Data Interchange : Means the electronic transfer from computer to computer of information using an agreed standard to structure the information. Originator : Originator of a data message means a person by whom, or on whose behalf the data message purports to have been sent or generated prior to storage, if any, but it doesnt include a person acting as an intermediary with respect to that data message. Addressee : Addressee of a data message means a person who is intended by the originator to receive the message, but doesnt include a person acting as an intermediary with respect to that data message. Intermediary: Intermediary with respect to a particular data message, means a person who, on behalf of another person, sends receives or stores that data message or provides other services with respect to that data message.

13. Discuss any eight applications of legal requirements to data messages Application of legal requirements to data message : (a) Information in the form of a data message is legally valid. (b) All the information referred to a data message(but not contained in it) is legally valid. (c) Data message cant be rejected in admissibility as an evidence for the sheer reasons that it a data message and not its original form. (d) When a law mandates written information, that requirement is met by a data message as long as the message is accessible and usable for subsequent reference. (e) Where the law requires that certain documents, records or information be retained, that requirement is met by retaining data message provided : (i) The information contained is accessible and usable for subsequent reference. (ii) The data message is retained in the format in which it was generated, sent or received. (iii) Information about origin, destination and timing is retained.

(f) Where data message is used in the formation of a contract, that contract shall not be denied validity or enforceability on the sole ground that a data message was used for that purpose. (g) The communication that the data message had been received shall be given by the addressee by the way of any communication, automated or otherwise, or by the conduct of the addressee. (h) Where the originator had stated that the data message is conditional on receipt of the acknowledgment, the data message is treated as though it has never been sent, until the acknowledgment is received.

14. Define access, communication device, computer, cyber caf, intermediary. secure system as per IT Act 2009 (Amendment) Access : With its grammatical variations and cognate expressions means gaining entry into, instructing or communicating with the logical, arithmetical, or memory function resources of a computer system or computer networks. Communication Device : Means all cell phones, personal digital assistance or combination of both or any other device used to communicate, send or transmit any text, video, audio or image. Computer : It means any electronic magnetic, optical or other high speed data processing device or system which performs logical, arithmetic, and memory function by manipulation of electronic, magnetic, or optical impulses and includes all input, output, processing, storage, computer software, or communication facilities which are connected or related to the computer in a computer system or network. Cyber caf : It means any facility where access to the internet is offered by any person in the ordinary business to the members of the public. Intermediary : Intermediary with respect to any particular electronic records, means any person who on behalf of another person receives, stores or transmits that record or provides any service with that record and includes telecom service providers, network service providers, internet service providers and cyber cafes. Secure System : Means computer hardware, software and procedures that : (i) Are reasonably secure from unauthorized access and misuse. (j) Provide a reasonable level of reliability and correct operation. (k) Are reasonably suited to performing the intended functions. (l) Adhere to generally accepted security procedures.

16. What is Money Laundering as per PMLA 2009 (Amendment) and describe Proceeds of crime and property Money laundering may be defined as cleansing of dirty money obtained from legitimate or illegitimate activities with the objective of hiding its source and rendering it in legally usable form. The process of maoney laundering is an illegal activity involving financial jugglery, creating a web of financial transactions so as to hide the origin and true nature of these funds. The main objective of this act is to : (a) Prevent, combat and control money laundering. (b) To confiscate and seize the property obtained from laundered money. (c) To deal with any other issue connected with money laundering in INDIA. Proceeds of crime : It means any property derived or obtained, directly or indirectly, by any person as a result of criminal activity relating to a scheduled offence or the value of any such property. Property : Means any property or assets of every description, whether corporeal or incorporeal, movable or immovable, tangible or intangible and includes deeds and instruments evidencing to, or interest in, such property or assets wherever located.