The President of the country is the first citizen, as well as the head of the State. On the other hand, the Prime Minister along with the other Council of Minister, heads the Government of the country, at the national level. Most of the people have doubts, regarding the roles, responsibilities, powers and authorities of the Prime Minister and President. But the fact is that the difference between the two executives relies on the country we are talking about, i.e. some countries have one or … [Read more...]

The fundamental difference between a money bill and finance bill is that a money bill can be introduced in only the lower house of parliament, i.e. Lok Sabha only, finance bill can be introduced in either of the two houses. Although money bill is a type of finance bill, most of the people use them interchangeably, but they differ in terms of their content. We often hear the term bill, but there are only a few people who actually know what the term means. A Bill refers to the proposal for a … [Read more...]

A void agreement is void ab-initio, in essence, it is null since it is formed. But on the other hand, a void contract is one that is valid at the time of creation but eventually becomes void, due to certain circumstances, which are beyond the control of parties concerned. In finer terms, it can be said that a void agreement, is always invalid, but if we talk about the void contract, is one that is enforceable in the beginning, but subsequently lacks it due to changes in government policy or … [Read more...]

An ordinary resolution is refers to a resolution, passed by the members of the company by a bare majority. A special resolution, on the other hand, is the resolution, that is affirmed by the members of the company by three-fourth majority. In a company, the items of business to be transacted at a GM (General Meeting), are presented as motions. The 'motion' refers to a proposal put forward, for discussion and adoption at the meeting. If the motion is approved unanimously, by the members … [Read more...]

Nationality and citizenship are one of the most misconstrued terms, in the world. For a layman, the term nationality works as a substitute for citizenship and vice versa. But in reality, the difference between nationality and citizenship is quite evident, that we cannot ignore it. The nationality of a person, reveals his/her place of birth, i.e. from where he/she belongs. It defines the belongingness of a person to a particular nation. On the contrary, citizenship is granted to an individual … [Read more...]

The government formulates taxation policy with an aim of performing a variety of functions and fulfilling the financial needs of the country by using the money received in the form of tax on development projects. Tax is nothing but a mandatory contribution, levied by the government, without reference to any benefit to the taxpayer, in return for the tax paid by him. By nature, taxes are classified as a progressive tax, proportional tax, and regressive tax. Progressive tax refers to the tax which … [Read more...]

While talking about negotiable instruments such as cheques, bills of exchange and promissory note, we came across the terms holder and holder in due course, quite commonly. Holder refers to a person; we mean the payee of the negotiable instrument, who is in possession of it. He/She is someone who is entitled to receive or recover the amount due on the instrument from the parties thereto. On the other hand, the holder in due course i.e. HDC implies a person who obtains the instrument bonafide … [Read more...]

Foreign Exchange Management Act, 1999 (FEMA) emerged as a replacement or say an improvement over the old Foreign Exchange Regulation Act, 1973 (FERA). Foreign investors, frequently hear the terms FERA and FEMA, when they deal with India. As their name specifies, FERA lays emphasis on the regulation of currencies, whereas the FEMA manages foreign exchange, i.e. forex. The first and foremost difference between FERA and FEMA is that the former requires previous approval of Reserve Bank of India … [Read more...]

A will can be described as a legal document, that states the manner in which a person's assets, belongings, and personal stuff are distributed among the legal heirs, after his/her demise. On the other hand, a trust is a form of obligation attached to the ownership of the property, that is a result of confidence, accepted by the owner and author, for the benefit of another person or the owner. As both are used to manage and distributes the assets of a person, many people get puzzled between … [Read more...]

In the legal glossary, you might have heard the terms deed and title, quite frequently. As the term, 'deed' represents a legal document duly signed by the and delivered, to transfer the 'title' or ownership/possession of propoerty or legal rights from one person to another. On the other hand, 'title' implies the combination of legal rights with respect to ownership, possession and charge of the property, that facilitates the holder to control or dispose off the property. These two terms are … [Read more...]