The Indian Contract Act, 1872 has made it clear that there is a thin line of difference between void and illegal agreement. A void agreement is one which may not be prohibited under law, while an illegal agreement is strictly prohibited by law and the parties to the agreement can be penalized for entering into such an agreement. A void agreement has no legal consequences, because it is null from the very beginning. Conversely, illegal agreement is devoid of any legal effect, since it is … [Read more...]

A trust is a contract between the settlor and trustee, formed for the benefit of a third party. In this contractual arrangement wherein the trustee holds the property of the settler, for the sake of the one or more beneficiary. There are two types of trust, i.e. revocable trust - a trust which can be terminated anytime till the author survives and irrevocable trust - a trust that cannot be canceled once created. In a trust, the trustee holds the asset, only as a nominal owner. In India, … [Read more...]

In simple terms, the law may be understood as the systematic set of universally accepted rules and regulation created by an appropriate authority such as government, which may be regional, national, international, etc. It is used to govern the action and behavior of the members and can be enforced, by imposing penalties. Many times the term law is juxtaposed with the term ethics, but there is a difference, as ethics are the principles that guide a person or society, created to decide what is … [Read more...]

There are many forms of political systems which are prevalent in different countries of the world for a long time like monarchy, oligarchy, anarchy, democracy and republic. Of these forms of government, democracy and a republic are quite often juxtaposed, but there is a fine line amidst the two. Democracy refers to the system of masses, i.e. a political system dominated by citizens of the country. Under this system, the general public possess a certain degree of power and authority and takes … [Read more...]

Income Tax is a compulsory obligation which is levied on every citizen, based on their paying capacity, age, and gender. In order to provide relief to the assessee from payment of taxes, the tax law has certain provisions for deduction and exemptions, which decreases the overall tax liability. In deduction, the amount is first included in the income of the taxpayer and then the deduction is allowed as per the rules, i.e. in full or part or when certain conditions are satisfied. An exemption, on … [Read more...]

Indemnity and Guarantee are a type of contingent contracts, which are governed by Contract Law.  Simply put, indemnity implies protection against loss, in terms of money to be paid for loss. Indemnity is when one party promises to compensate the loss occurred to the other party, due to the act of the promisor or any other party. On the other hand, the guarantee is when a person assures the other party that he/she will perform the promise or fulfill the obligation of the third party, in case … [Read more...]

In a contract of sale, the subject matter is 'goods'. There are millions of sale transactions which occur in the normal course, all around the world. There are certain provisions which need to be fulfilled because it is demanded by the contract. These prerequisites can either be a condition and warranty. The condition is the fundamental stipulation of the contract of sale whereas Warranty is an additional stipulation. In other words, condition is the arrangement, which should be present at … [Read more...]

A 'Contract of Sale' is a type of contract whereby one party (seller) either transfers the ownership of goods or agrees to transfer it for money to the other party (buyer). A contract of sale can be a sale or an agreement to sell. In a contract of sale, when there is an actual sale of goods, it is known as Sale whereas if there is an intention to sell the goods at a certain time in future or some conditions are satisfied, it is called an Agreement to sell. Both sale and agreement to sell are … [Read more...]

The President of India, the Lok Sabha, and the Rajya Sabha are collectively known as the Indian Parliament, which is the chief legislative authority in India. The President of India is the head of the Parliament. The Lok Sabha and the Rajya Sabha are the two houses of Parliament, wherein Lok Sabha is the lower house of the Parliament and Rajya Sabha is the upper house of the Parliament. These two houses of Parliament primarily differs in their powers and functions. The tenure of Lok Sabha is … [Read more...]

An offer and invitation to offer are two different terms, which must not be confused with one another. An offer is a proposal while an invitation to offer (treat) is inviting someone to make a proposal. In an offer, there is an intention to enter into a contract, of the party, making it and thus it is certain. On the other hand, an invitation to offer is an act which leads to the offer, which is made with an aim of inducing or negotiating the terms. So, in an invitation to offer, the offeror, … [Read more...]