BLAW UNIT-1 | Degree 2nd semester bcom business law unit-1 full explanation in 1 video | O.U |

[00:00:00]Hello dear students, welcome back to our YouTube channel Learn with Sahira. In this video, I'm going to give you the complete and clear explanation of unit number one from the subject business law, which is for degree second semester B.Com students. Definitely watch the video till the very end, and if you are new to our YouTube channel Learn with Sahira, subscribe it for more exam preparation videos. Students, one more important thing, I have already prepared damn sure important question and answers notes for all subjects and languages of degree second semester. These notes are easy, simple, clear to understand and 100% exam oriented. The best part of these notes is just by giving a reading you will get perfect with the complete subject, complete language, because I have given in detail explanations with very easy and simple terminology. If you want these notes to score O grade in your exams, definitely message me on my Instagram. My Instagram ID link is available in this video description.

[00:00:50]Just message me want notes along with your group and semester, I will be giving you the access to all the notes.

[00:00:55]But remember, these are paid notes. Yes, there is a small payment for the notes, but believe me, you're going to see excellent results with these notes. Only the students who want the notes should text me. And if you want to watch all explanation videos of the subject, definitely check out our playlist.

[00:01:08]Playlist link is available in this video description. Without getting late, let us get started.

[00:01:15]Guys, from unit number one, question number one is all contracts are agreements, but all agreements are not contracts. Explain. First, let us try to understand what is meant by agreement.

[00:01:26]Guys, agreement means when one person makes an offer, the other person accepts it. That's it, guys. An agreement is formed. For example, suppose I say, "I will sell my laptop to you for 50,000."

[00:01:39]If you say, "Okay, I will buy it." Now, I gave an offer and you accepted it. So, an agreement is formed. That's why we can remember it like this, agreement is offer plus acceptance. Now, let us try to understand what a contract is. Guys, a contract is also an agreement, but there is one important difference. The agreement should be accepted by law.

[00:02:01]Guys, this means the law should recognize that agreement, guys. If one person does not keep the promise, the other person can go to the court, and that person can get the justice. Then it becomes a contract. So, remember this simple formula. Contract is agreement plus legal enforceability. Okay?

[00:02:19]Now, let us try to understand the statement, all contracts are agreements.

[00:02:25]This is 100% correct, guys. Why? Because every contract first starts as an agreement. Without an agreement, there can never be contract. First, one person gives an offer. The other person accepts it. Only after that, if all legal conditions are satisfied, it will become a contract. So, yes, this is 100% true.

[00:02:46]Why all agreements are not contracts?

[00:02:48]This is the second part. This is also true, guys, because not every agreement is accepted by law. Like some agreements are only made because of friendship, family, love, or social relationships.

[00:02:59]Okay? These agreements are called social or domestic agreements. The law does not interfere in these matters, guys. Let us take a simple example, okay, for you to understand it better. Suppose your friend tells you, I will come to your house tomorrow evening. You say, okay.

[00:03:17]This is an agreement, right? Your friend offers that he will come to your house.

[00:03:21]And you're also accepting, okay. But the next day your friend doesn't come. Can you go to the court? Will you go to the court? No, right? Because this is only a friendship agreement. The law will not take any action. So, it is an agreement, but it is not a contract. Let us take one more example, guys. If father tells his son, if you score 90% marks, I will buy you a bike. The son studies well, and the son gets 90% marks, but the father doesn't buy by Can the son file a case in the court?

[00:03:53]No, because this is a family agreement.

[00:03:55]So, it is based on love and affection, guys, not on law. So, again, it is an agreement, but it is not a contract.

[00:04:03]Okay? So, yes, now let us try to understand essentials of valid contract or characteristics of a valid contract.

[00:04:11]First is offer and acceptance, guys.

[00:04:13]There should be a valid offer from one person, and there should be valid acceptance by another person. Without offer and acceptance, there is no agreement. Second, lawful consideration, guys. Considering means something given in return. Usually, it may be money, goods, or services, or promise. Okay? It should always be legal. Third, free consent, guys. Both parties should agree willingly. Nobody should force. Nobody should cheat. Nobody should threaten anyone to enter into the contract. It should be free consent of both the parties. Competent parties, guys. The people making the contract I'm sorry. The people making the contract should be legally capable.

[00:04:53]Okay? Generally, they should be 18 years or above. They should be of sound mind.

[00:04:58]Like they their mind should be good, and they should be qualified to enter into a contract. Okay? Fifth, lawful object.

[00:05:05]The purpose of the contract should be legal, guys. If the purpose is illegal, it cannot become a valid contract. Sixth is certainty. The terms and condition of the contract should be clear, guys.

[00:05:16]There should be uh no confusion. There should be no mess. Okay? Everything should be clearly communicated and well said. Possibility of performance is the last essential, guys. The contract should be possible to perform. For example, if someone promises to bring the moon to Earth, it is impossible, right? Such an agreement can never become a valid contract. There should be a possibility to do that work. So, remember this one line for the exam, guys. Every contract is an agreement because it starts with an agreement, but every agreement is not a contract because oh because only legally enforceable agreements become contracts, okay? This is the explanation of question number one. Guys, do not worry.

[00:05:56]Here in this video, I'm just giving you brief explanation, short explanation.

[00:06:02]But for examinations, you need 100% exam-oriented answers. Guys, in my notes, I have included all the damn sure important questions with their in-detail very easy explanation answers very good examples for you to make it very clearly understandable. Basically, my notes are 100% exam-oriented. In detail, they are just like what I have given in the notes, you can keep it in the examination to score O grade. Most of the students are worried about below. Do not worry, exam-ready notes are available. In my notes, you just give a reading, you will get perfect with the complete subject. No need to spend a lot of time also. Just give a reading, you will understand the concept, and you will be easily writing in your exams. If you need these paid notes, you message me on my Instagram. My Instagram ID link is available in this video description.

[00:06:52]Guys, question number two. Define contract and explain the essential features of a valid contract.

[00:06:58]First, let us try to understand what a contract is. Just now we have seen, but let me say you all again. A contract is a simply an agreement that is accepted by law. In other words, guys, if two or more people make an agreement, and the law recognizes that agreement, then it becomes a contract. The Indian Contract Act 1872 defines a contract as an agreement enforceable by law. This is the definition you should remember for the exam, guys. Now, the question is, can every agreement become a contract?

[00:07:29]The answer is no. Why, guys? As I said you, an agreement becomes a contract only when it fulfills certain legal conditions. These conditions are called the essential features of valid contract. Just now we have seen essential features, right? While we were discussing our question number one, all that essential features are given here.

[00:07:49]Nothing special. Offer and acceptance, like one person should make an offer, other person should accept it. Lawful consideration, guys. Consideration means something given in return. It may be money, goods, or services, or even a promise, okay? For example, if you buy a book for 500, guys, the book is one side and 500 is the consideration on the other side. That's what.

[00:08:12]Competent parties means the people entering into the contract should be legally capable, guys. Like they should be 18 years or above. They should have sound mind, and they should not be disqualified by law. For example, a small child cannot enter into a valid contract, guys, because the law does not consider a minor competent to make a contract. Free consent, nobody should force, threaten, cheat, or mislead another person. And object means the purpose of the contract. It should always be legal. And also, the terms and conditions should be clear, guys. There should be no confusion, no mess.

[00:08:47]Everything should be clearly uh what do you call? Like everything should be clearly visible, everything should be clearly said. And the contract should be possible to perform, guys. If the work itself is impossible, then the contract is not valid. Like if someone promises to bring stars or moons from the sky, it is impossible, right? So, it cannot be performed, so it cannot become a valid contract. Legal enforceability, guys.

[00:09:10]This means the agreement should be recognized by law. Then agreement should not be void. A void agreement has no legal value from the beginning, guys.

[00:09:18]So, this is very important that it should not be void. So, these are different essential features of a valid contract. Do not worry, in my notes I have given you in detail explanation answers. Like this will be the sub-heading, its explanation will be there. Sub-headings, its explanation, introduction, conclusion, everything has been included. If you need those notes in order to score O grade in B law subject, then definitely message me on my Instagram. Link is available in this video description. Now, let us get started with question number three.

[00:09:50]Three is define consideration and explain the essentials of a valid consideration. Guys, what I said to you what consideration is Consideration means something given in return for a promise, guys. You can remember it like this.

[00:10:04]Consideration is the price paid for a promise. For example, guys, suppose you buy a laptop for 40,000. You get the laptop and the shopkeeper gets 40,000.

[00:10:14]For you, the laptop is the consideration. For the shopkeeper, 40,000 is the consideration. So, both parties are giving something in return, right? That is nothing but consideration. Now, let us talk about essentials of valid consideration. Guys, first one is that must move at the desire of the promisor. The first essential is that the consideration should be given at the request or desire of the promisor. Promisor means the person who makes the promise. For example, guys, suppose your friend asked you to paint his house and you paint it.

[00:10:46]Since you did the work at your friend's request, it is valid consideration. But if you paint someone's house on your own without anyone asking you and later ask for payment, you cannot force that person to pay because the work was not done at the desire of the promisor.

[00:11:04]Okay, I hope you understood. Next, it may move from the promisee or any other person, guys. It is not necessary that only the promisee should give the consideration. For example, suppose Ravi buys a phone for Suresh and pays the money on Suresh's behalf. Even though Ravi paid the money, the contract is still valid. So, consideration can move from the promisee or any other person. It can be present, past, future, guys. It may be past, present, future, basically. Past country consideration means the work was already done before the promise was made.

[00:11:39]Present consideration means both parties exchange the things immediately. Future consideration means both the parties promise to perform their duties in the future. And it should be real, guys. It should not be imaginary or fake. Like if someone promises to sell something that does not even exist, that is not real consideration. It must It must be lawful. It should not involve any illegal activity, okay? Like if someone promises to pay money for doing an illegal act, that consideration is unlawful. Need not to be adequate, guys.

[00:12:10]Even if the amount is small, the contract can still be valid, okay? The law does not say that consideration should always be equal in value. It must have legal value, guys. It should create legal rights and obligations between the parties. For example, paying money, providing services, or delivering goods, all these are legal values. It must be possible to perform. If it is impossible to perform, then it is not valid consideration. Like if someone promises to bring stars or moons from the sky in return for money. As I said you this example before itself, it is not possible. So, that's what consideration means, something given in return for a promise, okay? I hope you understood what is consideration or what are the different essentials. Guys, do not worry. All these explanations are given in detail in very easy and simple terminology. Just by looking at my notes, you can get perfectly with the complete subject, guys. That easy my notes are. I have given very very examples to make it very clear and understandable. If you want them, link is available in this video description.

[00:13:13]Question number four, define discharge of a contract. Explain the different modes of discharge. Guys, the word discharge simply means ending or completion. So, discharge of contract means the contract comes to an end.

[00:13:26]After the contract is discharged, both parties are free from their responsibilities, guys. Okay? So, yes, this is what it is about discharge of contract. Contract will come to end or contract is completed. Let us try to understand the different modes of discharge one by one. By performance, guys, this is the most common way of ending a contract. Like, performance means both the parties complete their promises. Once both parties perform their duties, the contract automatically ends. And then, it is discharged by mutual agreement. Sometimes both the parties decide that they don't want to continue the contract. If both of them agree to cancel or change the contract, then it is called discharge by mutual agreement. By impossibility of performance, guys, sometimes after making a contract, it becomes impossible to perform it. In such situation, the contract automatically comes to end end.

[00:14:18]For example, guys, suppose a person agrees to organize an outdoor event, but before the event, a flood or earthquake destroys the venue. Now, it is impossible to conduct the event, right?

[00:14:29]So, since the work cannot be completed, the contract is discharged due to impossibility of performance. Lapse of time, if a person does not take action within that time, the contract may come to an end, guys. This is lapse of time.

[00:14:40]Then, operation of law, guys, sometimes a contract ends because of legal reasons. This is called discharge by operation of law. It may happen due to death, insolvency, merger, or any other legal reasons, okay? Any reason, legal reason. Then, discharge by breach of contract, guys. Breach of contract means one party fails or refuses to perform the contract, guys. When one party breaks the contract, the other party is released from his obligations. Suppose a shopkeeper promises to deliver furniture on Monday, but refuses to deliver it.

[00:15:13]What happens, guys? Since the shopkeeper has broken the contract, the customer is no longer bound by it. And that customer can take the legal action. So, it is breach of contract. One person or one party will fail to do the work.

[00:15:27]Then we have remission, guys. It means accepting a smaller amount or giving up a part of the promise. In simple words, the promisee agrees to accept less than what was originally agreed, okay?

[00:15:37]Examples of each and every mode I have given in my notes, guys. In my notes, in detail explanation is there. Example is also there to make you understand it better. If you want them, message me on my Instagram. Link is available in this video description. Last question, question number five, define breach of contract. Explain the types of breach of contract. Guys, the word breach means simply breaking. So, breach of contract means breaking the contract. In simple words, guys, when one person does not do what he promised in the contract or one person refuses to perform his duty, it is called breach of contract. For example, guys, suppose you order a laptop online and make the payment. The company promises to deliver the laptop within 5 days. But even after 5 days, they neither deliver the laptop nor return your money. So, the company has not fulfilled its promise. So, this is called breach of contract. Whenever a contract is broken, the other party gets the right to take the legal action and claim the compensation for the loss suffered, okay? One party will just break the contract, other party can take the legal action. We are having types, guys. There are two types, actual breach. It happens due to due date or after the due date of the contract. Basically, it happens on the due date or after the due date. In this case, the time for performance has already arrived, but one party fails or refuses to perform the contract. For example, guys, Ravi agrees to deliver 100 bags of rice to Suresh on 10th July.

[00:17:07]The date arrives, but Ravi does not deliver the rice. Since he failed to perform the contract on the agreed date, it is called actual breach of contract.

[00:17:15]So, remember this point. Actual breach happens when the performance date has already come, but the contract is not performed.

[00:17:24]Anticipatory breach, guys.

[00:17:26]Uh it means before the expected time.

[00:17:28]So, anticipatory breach means before the due date of the contract. Here, one party clearly says or shows that he is not going to perform the contract in the future. Since the refusal comes before the agreed date, it is called anticipatory breach. We have ways, guys.

[00:17:45]Ways of anticipatory breach. First one is express refusal. Express means clearly saying something in words. Here, one party directly tells the other party that he will not perform the contract.

[00:17:56]For example, a shopkeeper will say, "I will not deliver the goods." This is express, clearly saying. Implied means showing through actions instead of words, guys. The person may not directly say that he will not perform the contract, but his actions will clearly show that he has no intention of performing it. Okay? So, this is implied refusal. Difference, you please try to understand. Actual breach, it happens on the due date. Anticipatory breach, it happens before the due date. So, yes, guys. Breach of contract means failure or refusal to perform the promises made in a contract. We have seen different types as well as difference. So, yes, this was a complete explanation of unit number one. If you want 100% in-detail exam-oriented answers, notes to score all grade in below subject, definitely message me on my Instagram. Link is available in this video description.

[00:18:44]Join our Telegram channel for important updates. Check out our playlist for all explanation videos. All links are available in this video description.

[00:18:51]Definitely check it out if you are having any doubts. Do let me know in the comment section. All the very best.

[00:18:56]Bye-bye.