CS Executive Paper 6 (ECIPL) flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Contract definition

Section 2(h) of the Indian Contract Act, 1872 defines a contract as an agreement enforceable by law, combining a promise with legal enforceability.

Section 10 essentials

Offer and acceptance, lawful consideration, lawful object, capacity of parties, free consent, and the agreement must not be expressly declared void by law.

Minor's agreement

An agreement with a minor is void ab initio under Indian law; the minor cannot be compelled to repay benefits, though specific performance may be refused.

Doctrine of frustration

Section 56 discharges a contract when performance becomes impossible by an act of God or change of law, without any party being liable for damages.

Specific performance rule

Section 10 of the Specific Relief Act, 1963 makes specific performance the rule rather than a discretionary exception, subject to the bars in sections 14 and 16.

Readiness and willingness

Section 16 of the Specific Relief Act requires the plaintiff to prove continuous readiness and willingness to perform his part of the contract.

Sale versus agreement to sell

A sale transfers property in goods immediately, while an agreement to sell transfers property at a future time or subject to conditions being fulfilled.

Condition and warranty

Section 12 of the Sale of Goods Act distinguishes a condition, whose breach allows repudiation, from a warranty, whose breach gives only damages.

Caveat emptor

Section 16 of the Sale of Goods Act preserves buyer beware, except where the buyer relies on the seller's skill or the goods are bought by description.

Nemo dat quod non habet

Section 27 of the Sale of Goods Act provides that a seller without title transfers none, subject to statutory exceptions such as sale by a mercantile agent.

Cheque dishonour offence

Section 138 of the Negotiable Instruments Act makes dishonour of a cheque for insufficiency of funds an offence after a 30-day demand notice and 15-day payment window.

Holder in due course

Section 9 of the Negotiable Instruments Act defines a holder in due course as one who obtains an instrument for consideration, before maturity, in good faith and without notice of defect.

Partnership definition

Section 4 of the Indian Partnership Act, 1932 defines partnership as a relation between persons who agree to share profits of a business carried on by all or any acting for all.

Minor in partnership

Section 30 permits a minor to be admitted to the benefits of partnership with consent of all partners, with liability limited to his share in the firm.

LLP designated partners

Under the LLP Act, 2008 an LLP needs at least two designated partners, at least one of whom must be a resident of India.

Abuse of dominance

Section 4 of the Competition Act, 2002 prohibits abuse of a dominant position, including unfair pricing, limiting market access and imposing unrelated supplementary obligations.

CCI combination threshold

Section 5 of the Competition Act sets asset and turnover thresholds; a combination above them must be notified to the CCI within 30 days of board approval.

Certificate of incorporation

Section 9 of the Companies Act, 2013 makes the certificate of incorporation conclusive evidence of the existence of a company from the date stated in it.

Prospectus filing

Section 26 requires a prospectus to be dated and filed with the Registrar before issue; section 32 requires issue within 90 days of registration.

Annual general meeting

Section 96 requires an AGM every year with not more than 15 months between two AGMs, and the first AGM within 9 months of the first financial year end.

Factory definition

Section 2(m) of the Factories Act, 1948 defines a factory as premises with 10 or more workers with power, or 20 or more without power, plus a manufacturing process.

Retrenchment conditions

Section 25F of the Industrial Disputes Act requires one month's notice or wages, retrenchment compensation of 15 days per completed year, and notice to the government.

EPF contribution rates

Under the EPF Act, 1952 employer and employee each contribute 12% of basic wages plus dearness allowance, with 8.33% of the employer share going to the pension scheme.

Gratuity formula

Under the Payment of Gratuity Act, 1972 gratuity equals 15 divided by 26 of last drawn wages multiplied by completed years of service, subject to the statutory ceiling.

ESI coverage threshold

The ESI Act, 1948 applies to factories with 10 or more persons and establishments with 20 or more, with employee and employer contributions at notified rates.

FEMA capital account

Section 6 of FEMA, 1999 allows the RBI to regulate capital account transactions by notification, while current account transactions are generally free under section 5.

Money laundering offence

Section 3 of the PMLA, 2002 defines money laundering as projecting or claiming proceeds of crime as untainted property, punishable under section 4.

IBC default threshold

Under section 4 of the Insolvency and Bankruptcy Code, 2016 a financial or operational creditor may file an application only where the default is at least one crore rupees.

IBC moratorium

Section 14 of the IBC imposes a moratorium prohibiting suits, transfer of assets and enforcement of security during the corporate insolvency resolution process.

Consumer definition

Section 2(7) of the Consumer Protection Act, 2019 defines a consumer as a person who buys goods or hires services for consideration, excluding commercial purpose.

Consumer pecuniary jurisdiction

Under the Consumer Protection Act, 2019 the District Commission handles claims up to 50 lakh rupees, the State Commission above that up to 2 crore, and the National Commission above 2 crore.

Product liability action

Section 2(42) of the Consumer Protection Act, 2019 makes a manufacturer or product service provider liable for harm caused by defective goods or deficient services.