In simple terms, bailment refers to hand over or assignment the goods, which involves change in possession but not in the ownership of goods. It is the transfer of goods from one party to another party for some specific purpose. It is not same as pledge, which is just a variant of bailment. Pledge implies a contract, in which an article is delivered or say deposited with the money lender, as security for repayment of a debt owed by him/her or performance of promise. The main difference … [Read more...]

'Fraud' means a willful misrepresentation of a material fact while 'Misrepresentation' means a bonafide representation which is false. The former is an untrue statement given by one party that indues other party to enter to the contract, whereas the latter is the statement of fact, made by one party, believing that it is true, then this is innocent misrepresentation. The main difference between fraud and misrepresentation is that, fraud is done with an aim of deceiving others, which is not in … [Read more...]

When an agreement is enforceable at law, it becomes a contract. Based on validity, there are several types of contract, i.e. valid contract, void contract, illegal contract, etc. Void contract and voiadable contract are quite commonly miscontrued, but they are different. Void Contract, implies a contract which lacks enforceability by law, whereas Voidable Contract, alludes to a contract wherein one party has the right to enforce or rescind the contract, i.e. the party has to right to put the … [Read more...]

'Coercion' is the act of threatening a person, to compel him/her to enter into the contract and perform the obligation. On the contrary, 'Undue Influence' is an act of controlling the will of the other party, due to the dominant position of the first party. When the consent of any of the parties to contract is affected by coercion or undue influence, it is said that consent is not free. The essence of a contract is agreement, i.e. mutual consent, i.e. the parties to the contract agreed upon … [Read more...]

There is an old statement, "All contracts are an agreement, but all agreements are not contracts" which implies that agreement is different from a contract. Without knowing the fact, we enter into hundreds of agreement daily, which may or may not bound us legally. Those which bind us legally are known as a contract, while the rest are agreement. In this way, the Indian Contract Act came into force, which was enacted by the British Government because at that time they were ruling on India. The … [Read more...]

Regulations imply the directives which a body or authority creates and maintains. These are lawfully enforced. As against, rules are the basic guidelines of instructions that states the way of doing something correctly. These are the principles that direct the conduct or behaviour of a person in an organization or country. Basic Introduction Act only contains the basic structure of any law. While creating any act, there are a few issues which lawmakers do not address in the act. And the … [Read more...]

At the time of entering into a legal transaction, there are two options available to the parties, i.e. agreement or memorandum of understanding. While an agreement refers to concordance between the legally competent parties, which is generally negotiated. Conversely, in Memorandum of Understanding (MoU) is a type of agreement between legally competent parties, which is non-binding in nature. An MoU contains the description of understanding between the two parties, including the requirements … [Read more...]