Lab ppt merge

CONSUMER
Protection
Act
Presented by-
01 -Divya Banga
19 - Ashish Rane
23 - Uddhav Sawant

INTRODUCTION
Every human being buy a variety of goods and
services in their day-to-day life. Whatever they
buy have to pay for it and derive satisfaction
from its consumption and use. But sometimes
they do not feel satisfied with the product they
buy. This may be on account of poor quality of
the product,overcharging by the shopkeeper,
lower quantity of contents,misleading
advertisements and so on.

PROTECTION LAW
The consumer protection act was enacted to provide a simpler and
quicker read wrestle to consumer grievances. The act seeks to
promote and protect the interest of consumers against deficiency
and defects in goods and services
Consumer is a person who consumes or uses any
goods or services
CONSUMER
CONSUMER & ACT
OBJECTIVE
The consumer protection act provides consumer rights to prevent consumers from fraud
or specified unfair practises it safeguards and encourages and gives an opportunity to
consumers to speak against insufficiency and flaws in goods and services

Consumer Satisfaction
NEED FOR CONSUMER PROTECTION
Social Responsibility Survival and Growth Business
Principle of Social Justice
Increasing Awareness

CONSUMER PROTECTION ACT - 1986
RIGHT
TO
SAFETY
RIGHT
TO BE
INFORMED
RIGHT
TO
CHOOSE
RIGHT
TO BE
HEARD
RIGHT
TO SEEK
REDRESSAL
RIGHT TO
CONSUMER
EDUCATION
1 2 3
4 5 6

RIGHT TO
SAFETY
Protects customers against
Goods & Services which are
Hazardous to health and life.
Eg. Adulteration in Milk
01.

RIGHT TO BE
INFORMED
Consumer must have complete
information of the product which he
intents to buy,including its
ingredients,manufacturing & expiry
date,price,quality & quantity,
direction of use,etc
Eg. Nutritional Information.
02.

RIGHT TO
CHOOSE
Freedom to choose from a
variety of products at
competitive Prices.
Eg. Choosing your drinks from
shop.
03.

RIGHT TO BE
HEARD
Right to file a complaint and to
be heard in case of
dissatisfaction with any goods
or services.
Eg. 1. Grievance cells.
2. Customer Service.
04.

RIGHT TO SEEK
REDRESSAL
To get relief incase the product or services fails
to its expectation.
This right affords compensation to the
consumer against unethical trade practices.
05.

RIGHT TO
CONSUMER
EDUCATION
Right to acquire knowledge and to be well
informed & educated consumer
throughout life.
Eg. www.consumerhelpline.gov.in
(National Consumer Helpline - NCH)
06.

Why there was need to revise 1986 Act ?
● On July 20th, 2020, the new Consumer Protection Act, 2019 came into force in India,
replacing the previous enactment of 1986. The new Act overhauls the administration
and settlement of consumer disputes in India. It provides for strict penalties, including
jail terms for adulteration and for misleading advertisements.
● The first consumer protection legislation Consumer Protection Act, 1986 ('old act') was
introduced with the primary objective of protecting consumer rights. However, with the advent
of technology and the introduction of e-commerce and various other mechanisms of conducting
business, an overhaul of the existing legislation seemed necessary and prudent in order to
better protect modern-day consumers.

Consumer Protection Act 2019
● Consumer Protection Councils
● Central Consumer Protection Authority
● Simplified Dispute Resolution Process
● Mediation
● Product Liability
● Rules on e commerce and direct selling
● Penalty for adulteration of products/spurious goods

Key Changes
Provision Consumer Protection Act 1986 Consumer Protection Act 2019
Regulator Non Central Regulator Central Consumer Protection Authority to be setup
Filing of complaint A complaint needs to be filed in the
consumer court under whom jurisdiction
of the seller falls under
A complaint can be filed from anywhere or from whom where
the consumer resides
Mediation No Provision Court can work towards settlement through mediation cells
Jurisdiction The jurisdiction at district level was
complaints worth of Rs 20 lakhs
District level authorities can take up complaints with goods
and services worth up to Rs 1. crore
Product Liability No Provision Consumers have the right to seek compensation for any
harm caused.
E- Commerce No Provision E-Commerce transactions will come under the provisions
involving direct sales
Video conferencing No Provision Consumer can seek hearing through VC

When goods are bought for commercial purposes and such purchase satisfy the following
criteria :
- the goods are used by the buyer himself;
- exclusively for the purpose of earning his livelihood;
- by means of self-employment,
then such use would not be termed as use for commercial purposes under the Act,and the
user is recognised as a consumer.
Examples :
1. A buys a truck for plying it as a public carrier by himself,A is a consumer.
2. A buys a truck and hires a driver to ply it,A is not a consumer.
The intention of the legislature is to exclude big business houses carrying on business with
profit motive from the purview of the Act. At the same time it is pertinent to save the inter
ests of small consumers who buy goods for self employment to earn their livelihood,like a
rickshaw puller buying rickshaw for self employment,or a farmer purchasing fertilizer for
his crops,or a taxi driver buying a car to run it as a taxi,etc.
PERSON BUYING GOODS FOR SELF EMPLOYMENT IS A CONSUMER

Contract for Service Vs Contract of Service
Description Contract for Service Contract of Service
Meaning An agreement whereby a person is
engaged as an independent contractor,
such as a self-employed person,vendor
or freelancer carrying out an assignment
or a project for his establishment.
An agreement whereby a person
agrees to employ another as an
employee and the employee agrees to
serve his employer as an employee.
Parties Company and third Party e.g. Third party
payroll
Company and employee e.g. on company
payroll
Relationship of the parties Independent contract/ consultancy Employer-Employee
Control over the work The third party is not bound to obey the
instructions of the company
The employee is bound to obey the
instructions of the employer
Ownership of all the rights
arising from the work created
out of contract
The company gets ownership after paying for
the services to the third party
The company is by default the owner of the
work done by the employee, except in
cases of inventions

● Within two years of purchasing the product or services,the complaint should be
filled.
● In the complaint,the customer should mention the details of the problem. This
can be an exchange or replacement of the product,compensation for mental or
physical torture. However the declaration needs to be reasonable.
● All the relevant receipts,bills should be kept and attached to the complaint letter.
● A written complaint should be then sent to the customer forum via online,email,
registered post,fax or hand delivered. Acknowledgement is important and should
not be forgotten to receive.
● The complaint can be in any preferred language.
● The hiring of a lawyer is not required.
● All the documents sent and received should be kept.
How to File a COMPLAINT?

Conclusion
● The Consumer Protection Act, 2019 when compared with the 1986 Act
shows that it provides for greater protection of consumer interests taking
into consideration the current age of digitization.
● The 2019 Act also deals with the technological advancements in the
industry, provides for easier filing of complaints and also imposes strict
liability on businesses including endorsers for violating the interest of the
consumers.

NEGOTIABLE
INSTRUMET
ACT 1881
Team member
1) Gaurav Kale
2) Harsh Lad
3) Somesh Pradhan

NEGOTIABLE - The word negotiable means “transferable from one person to another
in return for consideration
INSTRUMENT - “A written document by which a right is created in favor of some
person”.
DEFINITION OF THE NEGOTIABLE & INSTRUMENT
MEANING OF NEGOTIABLE INSTRUMENT
A negotiable instrument is a written document which entitles a person to a sum of money
and which is transferable from one person to another.

● The Act was originally drafted in 1866 by the 3rd Indian Law Commission and introduced in
December 1867 in the Council and it was referred to a Select Committee. Objections were
raised by the mercantile community to the numerous deviations from the English Law in
which it contained. The Bill had to be redrafted in 1877. After the lapse of a sufficient period
for criticism by the Local Governments, the High Courts and the chambers of commerce, the
Bill was revised by a Select Committee. In spite of this Bill could not reach the final stage. In
1880 by the Order of the Secretary of State, the Bill had to be referred to a new Law
Commission. On the recommendation of the new Law Commission, the Bill was re-drafted
and again it was sent to a Select Committee which adopted most of the additions
recommended by the new Law Commission. The draft thus prepared for the fourth time was
introduced in the Council and was passed into law in 1881 being the Negotiable Instruments
Act, 1881 (Act No.26 of 1881)
● This act enacted by Imperial Legislative Council (India) commenced 1march 1882
WHAT IS NEGOTIABLE INSTRUMENT ACT 1881

● Freely Transferable:- The property in a negotiable instrument passes from one person to
another by delivery
● Consideration:- Every negotiable instrument is presumed to have been made, drawn,
accepted, negotiated or transferred for consideration.
● Date:- Every negotiable instrument bearing date is presumed to have been drawn on such
date.
● Recovery:- The holder in due course can sue upon a negotiable instrument in his own name
for the recovery of the amount.
● Time of acceptance:- When a bill of exchange has been accepted it is presumed that it was
accepted within a reasonable time of its date and before its maturity.
● Time of Transfer:- Every transfer of a negotiable instrument is presumed to have been made
before its maturity.
CHARATERISTIC OF THE NEGOTIABLE INSTRUMENT ACT

TYPES OF NEGOTIABLE INSTRUMENT
● Promissory note
● Cheque
● Bill of exchange

PROMISSORY NOTE
A promissory note is an instrument in
writing (not being a bank note or a
currency note) containing an
unconditional undertaking signed by
the maker to pay a certain sum of
money only to or to the order of a
certain person or to the bearer of the
instrument. (Sec.4) •

CHEQUE
According to Section 6 of the act, A
cheque is “a bill of exchange drawn on
a specified banker and not expressed
to be payable otherwise than on
demand”. A cheque is also, therefore,
a bill of exchange with two additional
qualification: ◦ It is always drawn on a
specified banker. ◦ It is always payable
on demand. Special Benefits of Bill of
Exchange:

BILL OF EXCHANGE
A bill of exchange is an instrument in
writing containing an unconditional
order signed by the maker directing a
certain person to pay a certain sum of
money only to or to the order of a
certain person or to the bearer of the
instrument (Sec.5)

NEGOTIATION According to section
14 of The Negotiable Instruments Act
1881, “When a promissory note, bill
of exchange or cheque is transferred
to any person so as to constitute that
person the holder thereof, the
instrument is said to be negotiated.”
The main purpose and essence of
negotiation is to make the transferee
NEGOTIATION

MODES OF THE NEGOTIATION
COMPETITIVE COLLABORATIVE COMPRIMISING AVOIDING ACCOMADATING
01 05
04
03
02

HOLDER
According to sec. 8, Holder of a
negotiable instrument is the person Who is
entitled in his own name to the possession
of the instrument, and Who has the right to
receive, or recover the amount due thereon
from the parties thereto. In case the
instrument( note, bill or cheque) is lost or
destroyed, the person who has entitled in
his own name to the possession of it or to
receive or recover the amount due on it
from the parties thereto is the holder of

WHO CAN BE A HOLDER
• Payee- the payee is usually the original holder of an
instrument. He remains holder till he endorses the instrument.
• Endorsee –the person to whom an instrument is endorsed
becomes holder of in place of the endorser. An instrument,
when endorsed and delivered, the endorsee becomes the
holder
• Bearer – in the case of a bearer instrument, the person to
whom the instrument is delivered becomes the holder. But
every bearer of an instrument cannot become the holder.
• A thief or a finder of a bearer instrument or a servant
possessing an instrument on behalf of his employer cannot
become holder.
• Legal representative or heir- a legal representative or heir of a
deceased person can become holder by operation of law even
though he is not the payee or the bearer or the endorsee of
the instrument.

● Lost instrument
● Stolen instrument
● Instruments obtain by fraud
Instruments obtain by unlawful means

Dishonor can be done by two way
● By non- acceptance
● By non- payment
● Notice of dishonor is mandatory
● Noting of dishonor is also
necessary
Dishonor & discharge of
negotiable instrument

● Negotiable Instruments Act, 1881 – Wikipedia en.wikipedia.org › wiki ›
Negotiable_Instruments_Act,_1...
● www.slideshare.net/shubhamtyagi65/negotiable-instruments-act-1881-79418165
RESOURCES

Example 1
LOSS
Agreement Insurance Agent
FIRE INSURANCE
Indemnified or
Indemnity holder
Don’t worry we
will indemnify
or
Compensate
Indemnifier

According to Section 124 of Indian
Contract Act 1872
Indemnity contract is a contract by which one
party promises to save the other from loss caused
to him by the conduct of promising himself or by
the conduct of any other person
Indemnity is a part
of general class of
contingent
contracts
Indemnity
depends upon the
happening of an
anticipated loss

When parties expressly make a contract of indemnity, they
can determine their own terms and conditions. However,
sometimes they may not do so.
The Indemnity Holder can enforce the following rights
against the indemnifier:
1. Damages - Section 125 (1)
2. Costs - Section 125 (2)
3. Sums - Section 125 (3)
***Limitation Act - 3 years time limit for recovery
Rights of an Indemnity Holder - Section 125

If Indemnified has paid money
for settlement of a case.
The compromise should be
contrary to the orders of the
Indemnifier
If Indemnifier has promised to
indemnify in respect to any
matter.
Indemnified has paid damages
in respect to a suit in court
Damages
Rights of an Indemnity Holder contd.
Sums
If Indemnified has paid costs in any cases whether he filed the case or
someone has filed a case against him
He should not have contravened the orders of Indemnifier
Costs
1
2
3

Promisee
● A person accepting the proposal (offer) is
promisee
● He is also known as offerree
Parties to Indemnity Contract
Promisor
● A person who is making the proposal
(offer) is promisor
● We can also recognise him as proposer

Example 2
I lost my share
certificate. Please
issue a Duplicate
Certificate.
If anyone brings original
certificate & company
has loss. You will have to
compensate against the
loss
Company
Shareholder

To indemnify – to compensate or to make good the
loss
Contract of indemnity covers only the loss caused -
1. by the conduct of promisor himself
2. by the conduct of any other person
“The existence of loss is essential to be indemnified”
Loss caused by the conduct of the promisee or an act of
God is not covered

Essentials of Contract of Indemnity
Parties to a
contract
Expressed or
implied
Protection of loss Essentials of valid
contract
There must be two parties,
promisor (indemnifier) &
promisee (indemnified) or
indemnity holder
The contract of indemnity
may be express (made by
words spoken or written)
or implied
A contract of indemnity is
entered into for the
purpose of protecting the
promisee from the loss
The principal of the
general law of contract
contained in Section 1 to
75 of Indian Contract Act
1872 are applicable to
them

Example 3
A B
Beat X and I will
compensate for
the consequences
Afterwards B
cannot claim
money from A as
it was void
contract because
the object was
not lawful
B goes and
beats X and as a
consequence he
has to pay a fine
of 5000 rupees

● Indemnity clauses are debated deeply and focused upon during negotiations of commercial contracts.
● Serious consequences arise due to a poorly negotiated indemnity clause
● It is important to understand whether common law principles apply for interpreting indemnity clause or is
the Contract Act self sufficient & exhaustive?
Indemnity in case of International Transactions
The Bombay High Court in Gajana Moreshwar Parlekar vs. Moreshwar Madan
Mantri [(1942) BomLR 702], while interpreting Indemnity provisions clearly held
that the Contract Act is not exhaustive and common law principle are to be relied
on. Hence, unless there is a conflict with the Contract Act or any judicial decision
rendered by the courts of India, the common principle pertaining to interpreting
contracts will continue to be applicable to indemnify provisions.

Contract of Guarantee
A - Principal debtor C - Surety
Give me Rs
5000, I’ll
return your
money in a
month
I’ll take ‘A’
Guarantee
I TRUST
YOU
B - Creditor

According to Section 126 of Indian
Contract Act 1872
A contract of guarantee is a contract to perform the
promise made or discharge liability, of a third person
in case of his default.
1. Existence of principal debt
2. Consideration
3. Consent of Surety must be free consent
4. It can be oral or written
Essential features of Guarantee

Example on Guarantee
A B
Give a car to
my friend. If
he doesn’t
pay. I will pay
DEALER
Promises to
discharge A’s
Liability in case of
default
Principal
debtor
Surety
Creditor

A
B
DEALER
Principal debtor
Surety
Creditor
Principal contract

Difference between Indemnity (ICA sec 124 -125) and
Guarantee (ICA sec 126 - 147)
Indemnity
It is a contract where one party promises to
compensate another party for the losses
Guarantee
One party promises to discharge the liability of a
third person in case of his default
Two parties
1. Indemnifier
Who promises to save another party
1. Indemnified
Who is saved from the loss
Three parties
1. Creditors
2. Principal Debtor
3. Surety
Meaning
Party

● Reimbursement of loss
Indemnity
Indemnity cannot sue a third party for loss in his
own name because there is no privity of contract
● For the security of creditor
Guarantee
Surety can sue principal debtor in his own name
because he gets all the rights of a creditor after
discharging the debts
All parties must be competent to
contract
If a minor is a principal debtor, the
contract is still valid
Purpose
Number of contracts
Right to Sue a third party
Difference between Indemnity (ICA sec 124 -125) and
Guarantee (ICA sec 126 - 147) contd.

References:
https://www.youtube.com/watch?v=0lZHDia4CgE
https://www.youtube.com/watch?v=LDLXPNRsi7k&feature=youtu.be
https://legodesk.com/legopedia/contract-of-indemnity/
https://blog.ipleaders.in/laws-
indemnity/#:~:text=Section%20124%20of%20the%20Indian,action%20
of%20any%20other%20person
https://www.mondaq.com/india/contracts-and-commercial-
law/664102/indemnity-vs-damages
Thank you

CONTRACT
OF PLEDGE
(Sec 172, Indian Contract Act, 1872)
GROUP 2: Sneha, Laxmi, Parin

Lorem Ipsum
Lorem Ipsum
GOODS PLEDGE
(Valuable, document of
title)
PLEDGEE/
PAWNEE
PLEDGER/
POWNOR
IN RETURN
LOAN GRANT
CONTRACT OF PLEDGE
Movable property

Pledge: Meaning, Definition And Nature
A pledge is only a special kind of bailment,and difference between two is the object of the
contract. Where the object of the delivery of goods is to provide a security for a loan or for
the fulfillment of an obligation, that kind of bailment is pledge.
Pledge is governed by the principle of Bailment.
The bailment of goods as security for payment of a debt or performance of a promise is
called pledge. The bailor is in this case called the pawnor. The bailee is called pawnee.
CONTRACT OF PLEDGE

Difference between Bailment and Pledge
Lorem ipsum dolor sit amet at nec
at adipiscing
03
● Donec risus dolor porta venenatis
● Pharetra luctus felis
● Proin in tellus felis volutpat
at adipiscing
02
at adipiscing
01
Bailee has the right to recover all
the expenses incurred by the bailor
Right to
claim
reimburs
ement
Under section 175 the pawnor has the duty to
pay the extraordinary expenses which are
incurred by the Pawnee in the preservation of
goods etc.
If bailer permitted bailee can use
the goods.(e.g. car)
Use
Of
goods
Pawnee can not use the goods which are
pledge for his personal use (e.g. Car)
at adipiscing
01
Conside
ration
Consideration is always there.
The consideration may or may not
be present. (e.g. book- Gratuitous
bailment)
Under bailment, the bailee cannot
resell the goods but he can retain it.
Right to
Resale
Pawnee can resell the goods pledged with
him if the pawnor fails to repay the loan or the
interest on the loan or is unable to fulfil the
promises.
https://indianlegalsolution.com
at adipiscing
03
The purpose of bailed goods except
these two. It can be for safekeeping
or repairs etc.
Purpose Security for repayment of debt.
Performance of the promise.

Essentials Of Pledge
CONTRACT OF PLEDGE
Delivery of
possession
Contract
Purpose of
security
Condition
To return

Rights of Pawnor
➔ Right to Enforce
➔ Right to void the Contract
➔ Right to Return the Goods Lent
Gratuitously
➔ Right to Get Compensation
http://www.legalserviceindia.com/legal
CONTRACT OF PLEDGE
Rights of Pawnee
➔ Right to recover necessary
expenses incurred
➔ Right to retain the pledged goods
➔ Right to Apply to Court to Decide
the Title to the Goods
➔ Right of Lien

Duties of Pawnee
➔ Duty to take reasonable care of the
pledged goods
➔ Duty not to make unauthorised
usage of the goods
➔ Duty to return the goods in case of
fulfillment of purposes
➔ Duty not to mix or part with the
goods
CONTRACT OF PLEDGE
Duties of Pawnor
➔ Duty to disclose faults
➔ Duty to repay pawnee’s expenses
➔ Duty to indemnify the pawnee

Authorities who can Pledge the goods
CONTRACT OF PLEDGE
● Pledge by a mercantile agent
● Pledge by person in possession
under a voidable contract
● Pledge by person who is having
a limited interest in the property
● Pledge by a seller in possession after sale
● Pledge by co-owner

Conclusion
Pledge is a kind of bailment where a thing is delivered as security for the repayment of a debt or
performance of any promise. Delivery of the possession to the pawnee may be actual delivery or
constructive delivery.
Ownership of the pledged article does not pass to the pledgee. The pawnee has the right to retain goods till
the payment, of the debt, any interest on the debt, and any other necessary expenses incurred for
preservation of the goods. Where pawnee incur any other extraordinary expenses on goods for
preservation, he is entitled of the same from pawnor. In case of the default of the pawnor, in the debt or
performance, the pawnee has the right to sell the goods pledged.
The pawnor has also the right to redeem the goods before the actual sale, but after the payment of the
debtor performance of promise and any other expenses which have arisen from his default.
CONTRACT OF PLEDGE

References
https://www.lawnn.com/pledge-under-contract-law/
http://www.legalserviceindia.com/legal/article-1361-contract-of-pledge-features-and-
distinctiveness.html
https://indianlegalsolution.com/pledge-and-bailment/
https://indiankanoon.org/search/?formInput=pledge%20cases
Google wikipedia
CONTRACT OF PLEDGE

Public Interest Litigation
Bhavna Pandya and Sana Chowdhary

What is PIL?
PIL stands for Public Interest Litigation, which implies litigation for the protection of public interests
Public interest litigation refers to
litigation undertaken to secure
public interest and demonstrates
the availability of justice to
socially-disadvantaged parties
and was introduced by Justice P.
N. Bhagwati.

History of PIL
Hussainara Khatoon Vs State of Bihar.
In December 1979, Kapila Hingorani filed a petition in regards to the condition of the prisoners
detained in the Bihar jail, whose suits were pending in court. The petition was signed by prisoners of
the Bihar jail and the case was filed in the Supreme Court of India before the bench headed by Justice
P. N. Bhagwati.
Before the 1980s, only the aggrieved party could approach the courts for justice. After the emergency
era the high court reached out to the people and devised a means for any person of the public (or
NGO) approaching the court to seek legal remedy in cases where public interest is at stake. Bhagwati
and Justice V. R. Krishna Iyer were among the first judges to admit PILs in court.

Who can ﬁle it and how?
● Any indian citizen

When is it ﬁled?
● Violation of fundamental rights or moral
rights.
● Violation of human/moral rights of the
poor and marginalized section of society.
● Force the municipal authorities to deport
a public duty.
● Execution of Central/State Government
policy.

When it cannot be ﬁled?
● Cases related to landlord-tenant
● Cases related to services
● Gratuity and Pension related matters Cases
● Cases related to admission in educational
institutions and medical institutions
● Petition for a prompt hearing of pending cases in
subordinate courts or High Court

Signiﬁcance of PIL
● Gives access to common people to
obtain legal redres
● Important instrument of social change
● Make justice accessible to the poor
and the marginalised
● Important tool for implementing the
concept of Judicial review

Weakness of PIL
● Give rise to the problem of competing rights
● Overburdening of courts with frivolous PILs by
parties and vested interests
● Inordinate delays in the disposal of PIL cases

5 landmark PIL cases of India
● Rural Litigation Entitlement Kendra (RLEK) vs Union
of India
In this case supreme court acted immediately and
prohibited the mining operations with a view to determine
if the mines were operated with the safety standards. It
appointed the Bhargava Committee to assess the total
effects of the mines in the ecology of the area. On the
recommendations of Bhargava Committee, the court
ordered that these operations in such an ecologically
sensitive area has to be stopped. The court further
observed that preservation of ecology is a task which not
only the States but also the citizens must undertake u/A
51 A (g).

● Vishaka v. State of Rajasthan
The Vishaka judgment recognized sexual harassment
as “a clear violation” of the fundamental constitutional
rights to equality, nondiscrimination, life, and liberty, as
well as the right to carry out any occupation. The
guidelines, directed toward employers, included a
definition of sexual harassment, a list of steps for
harassment prevention, and a description of complaint
procedures to be “strictly observed in all work places
for the preservation and enforcement of the right to
gender equality.”

● Parmanand Katara v. Union of India
This case made sure that the ultimate goal of the
hospital should be saving a life, and not escaping from
troubles. The court gave complete freedom on
hospitals to attend an emergency case that comes to
them without worrying about legal troubles.

● M.C. Mehta vs Union of India
MC Mehta filed a Public Interest Litigation
for escape for poisonous gasses by a plant
in in Bhopal.The court in this case extended
the scope Article 21 and 32 of the
Constitution of India. The case is also
famous as Bhopal Gas Tragedy.

● M.C. Mehta vs Union of India and Others (1988) 1 SCC 471
This case was against those who were polluting the Ganga river.
The case was filed by the notable environmental attorney M.C.Mehta
where he fought against numerous industries and cities which mixed
the Ganges with effluents and toxic waste. This case made the court
to pass numerous orders against the industries to set up a sewage
treatment plant. The cities and towns were also made to follow strict
guidelines. Many numbers of industries were made to relocate.
Thus, this case is considered to be one of the important cases in the
history of PILs.
The judgement delivered on January 12, 1988 lashed out at civic
authorities for allowing untreated sewage from Kanpur’s tanneries to
make its way into the Ganges.

Conclusion
The greatest contribution of PIL has been to enhance the accountability of the governments towards the
human rights of the poor.
Public Interest Litigation has produced astonishing results which were unthinkable three decades ago.
Besides, the frivolous PILs with vested interests must be discouraged to keep its workload manageable.

References
● https://corpbiz.io/online-public-interest-litigation
● https://knowledgesteez.wordpress.com/2020/03/24/5-landmark-cases-of-publ
ic-interest-litigation/
● https://www.slideshare.net/rammohan712714/judicial-activism-74940240
● https://en.wikipedia.org/wiki/Public_interest_litigation_in_India
● https://www.jagranjosh.com/general-knowledge/how-to-ﬁle-pil-public-interest
-litigation-in-court-1586844711-1

BAILMENT
TEAM MEMBER
Punit Jethva
Swati Shirke
Vineet Raut

WHAT IS BAILMENT ?
The word bailment has been derived from the
French word ballier which means to deliver.
Bailment etymologically means handing over or
change of possession. As per section 148 of the
act , bailment is the delivery of goods by one
person to another for some purpose , upon a
contract, that the goods shall, when the purpose
is accomplished, be returned or otherwise
disposed of according to the directions of the
person delivering them.
Bailor
Bailee
The person
delivering the
Goods is called the
The person to whom
they
are delivered id called the

Sharma ji Varma ji
Car
Owner of
the car
Bailor
Bailee
Purpose
Use of car
Transfer of possession
For the benefit of bailee
Example

Varma ji
Bailor
Example
Friend of Sharma ji
Without any consideration
Gratuitous
For the benefit of bailee
Car on hire
Taxi owner
With consideration
NON-GRATUITOUS
For the benefit of bailor as well as bailee

ESSENTIALS OF BAILMENT
PURPOSE : Goods are delivered for some purpose
POSSESSION : Change of possession can be happen by physical delivery or by any action
DELIVERING OF GOODS : Actual and Constructive
RETURN OF GOODS : Goods should be returned in the same form as given
CONTRACT : May be express or implied

TYPE OF BAILMENT
GRATUITOUS BAILMENT NON-GRATUITOUS BAILMENT
The word gratuitous
means free of charge
Non-Gratuitous
bailment means
where both parties
get some benefit

RIGHTS OF BAILOR DUTIES OF BAILOR
1. Can demand Goods 1. Disclose faults in goods
2. Premature Termination 2. To pay expenses
3. Terminate Bailment
3. To indemnify expenses from bailee
for premature termination
4. Right to sue Bailee 4. Receive back goods from bailee

RIGHTS OF BAILEE DUTIES OF BAILEE
1. Deliver goods to Joint Bailors 1. Take care of goods
2. Right to Retain 2. Not to make uncertain use of goods
3. Title Defective Bailment 3. Not to mix goods
4. Right to demand expenses incurred by
bailee
4. Return of goods with accretion, if any.

TERMINATION OF BAILMENT
 On the expiry of fixed period
 Achievement of the object
 Inconsistent use of goods
 Destruction of the subject matter
 Gratuitous bailment
 Death of bailor or bailee

FINDER OF LOST GOODS
RIGHTS OF THE FINDER OF GOODS
SECTION-168
 Right to sue for specific reward offered
 Right of Lien
 Right of claiming the reward, If announced by
the owner
SECTION-169
 When finder of thing commonly on sale may sell
it
 Right to sell the goods found
DUTIES OF FINDER OF ANY LOST GOODS
SECTION-151 & 152
 Duty to take reasonable care of goods
SECTION-153 & 154
 Duty not to make unauthorised use of goods
SECTION-155 & 157
 Duty not to mix goods
SECTION-160 & 161
 Duty to return goods

Lien is the right of one person to retain possession of goods owned by another until the possessor's claims against the
owner have been satisfied.
WHAT IS LIEN?
Particular Lien
Types of Lien
General Lien
A general lien is a right of one
person to retain any property
or goods which are in his
possession belonging to
another person until the
promise or liability is
discharged.
a lien upon specific property as
security for the payment of a debt or
the satisfaction of some other
obligation arising out of a transaction
or agreement involving that property.
— called also specific lien. — compare
common-law lien , general lien.

General Lien Particular Lies
Section 171 of the Indian Contract Act,1872
confer on Bailee the right of General Lien.
Section 170 of the Indian Contract Act, 1872
which confers on the Bailee, the right of
particular lien.
General Lien is one which gives right
to possession until the whole balance of the
amount is paid.
A particular lien gives the right to
retain possession only of goods in respect of
which the changes or dues have arisen.
Example:
The banker’s Lien is a general lien and he can
retain the goods for the satisfaction of a debt
other than the one for which the goods are
pledged.
Example:
A delivers a rough diamond to B, a jeweller, to
be cut and polished, which is accordingly done.
B is entitled to retain the stone till he is paid for
the services he has rendered.
It is not necessary in case of general Lien. The right of particular lien can be successfully
claimed if by the exercise of labour or skill,
there has been some improvement of the
goods.
The right of General lien, can be claimed in
respect of any goods for any change due in
respect of other goods.
The Right of Particular Lien can be claimed only
in respect of goods upon which labour or skill
has been exercised by the Bailee.

https://blog.ipleaders.in/rights-duties-finder-lost-
goods
https://businessfinancearticles.org/finger-of-goods
https://www.legalindia.com/rights-and-duties-of-the-
founder-of-lost-goods/
https://resource.cdn.icai.org/55861bos45243mod2c
p1u2.pdf
Reference

Sale of
Goods Act
1930
Presented By :
1) Shrikant Shelar
2) Pratik Bhogle
3) Neelamkumar Sawant
1

1. Introdduction & Definition
2. Buyer and Seller
3. Sale and Agreement to Sell
4. Property
5. Type of Goods
6. Conditions and Warranties
7. CAVEAT Emptor and Exceptions
8. Unpaid Seller – Rights
9. Buyer – Rights and Duties
10. Summary
Points covered
2

1st July 1930, Sections 76 to 123 of the
Indian Contract Act, 1872 was repealed and
a separate act known as the Indian Sale of Goods act, 1930
was passed by British Raj,
The Act was amended on 23rd September 1963, and was renamed
to the “Sale of Goods Act 1930”.
Introduction
3

It is a contract by which the ownership of movable goods is
transferred from the seller to the buyer. The term ‘contract of
sale’ is defined in Section 4 (i) of the Sale of Goods Act as -
“A contract of sale of goods is a contract whereby the Seller
transfers or agrees to transfer the property in goods to the
Buyer for a price”
Definition
4

Buyer and Seller
‘Buyer’ means a person who buys or
agrees to buy goods [Section 2(1)].
‘Seller’ means a person who sells or
agrees to sell goods [Section 2(13)].
The two terms Buyer and Seller for are
complementary and represent the two
parties to a contract of sale of goods.
5

Sale
‘Sale’ is a contract where the ownership in
the goods is transferred by seller to the buyer
immediately.
The term Sale is defined in the section 4(3) of
the Sale of Goods Act, 1930 as -
“where under a contract of sale the property
in the goods is transferred from the seller to
the buyer, the contract is called as sale”.
7

Examples :
● Mr. Ramesh sold his Yamaha Motorcycle to
Mr. Suresh for Rs. 15,000.
It is a sale since the ownership of Motorcycle
has been transferred from Mr. Ramesh to Mr.
Suresh.
● Grocery purchase by Mr. Ramesh by paying
Rs. 3000 cash at shopping mall.
It is a sale since the ownership of Grocery has
been transferred to Mr. Ramesh immediately.
Sale (continued…)
8

Agreement to Sell
‘Agreement to Sell’ is a contract where the ownership in the
goods is not transferred by seller to the buyer immediately, which
intended to transfer at a future date upon the completion of certain
conditions thereon.
The term Sale is defined in the section 4(3) of the Sale of Goods
Act, 1930 as -
“where the transfer of property in the goods is to take place at
future time or subject to some condition thereafter to be fulfilled,
the contract is called as an Agreement to sell”.
9

Agreement to Sell (continued…)
Example :
Mr. Ramesh has ordered 15 chairs for his
office from M/s J M Furniture, against valid
Purchase Order, with accepting condition
regarding 100% payment after 30 days.
In this case the transfer of
ownership in the goods is to take place
at future time when Mr. Ramesh will
receive the material.
10

Distinction Between Sale and Agreement to Sale
Basis of
difference
Sale Agreement to sell
Transfer of
property
Passes to the buyer immediately Passes to the buyer on future date of on
fulfilment of some condition.
Nature of
contract
It is an executed contract. I.e. contract for which
consideration has been paid
It is an executory contract. I.e. contract for
which consideration is to be paid at a future
date
Remedies for
breach
The seller can sue the buyer for the price of the
goods because of the passing of the property
therein to the buyer.
The aggrieved party can sue for damages only
and not for the price, unless the price was
payable at a stated date.
Liabilities of
parties
A subsequent loss or destruction of the goods is
liability of the buyer.
Such loss or destruction is the liability of the
seller.
Right of resale The seller cannot resell the goods. The seller may sell the goods since ownership
is with the seller.
Nature of rights Creates Jus in rem. Creates Jus in personam.
113

Property
The property in the goods means the ‘general
property’ i.e. all ownership right of the goods.
In every contract of sale, the ownership of
goods must be transferred by the seller to the
buyer, or there should be an agreement by the
seller to transfer the ownership to the buyer.
In the case of ‘special property’, it is quite
possible that general property in a thing may
be in one person and a special property in the
same thing may be in another
e.g., when an article is pledged. The pledgee
who has a right to retain the goods pledged till
payment of the stipulated dues. 131

TERMS
Representation: Statement made by the seller before entering
into a contract
Stipulation: If such representation form an integral part of the
contract and other party relies upon it
No Representation: CAVEAT EMPTOR’ that is Let the Buyer
Beware- is applied
166

CONDITION AND WARRANTY
● “A stipulation in a contract of sale with reference to goods
which are subject matter there, of any may be a condition or a
warranty.”
● “These stipulations forms a part of the contract of sale and
breach of it provides a remedy to the buyer against the seller.”
177

CONDITION [SEC 12(2)]
● “A condition is a stipulation essential to the main purpose of the contract,
the breach of which gives rise to a right to treat the contract as
repudiated.”
● It goes to the root of the contract
● Its non fulfillment upsets the very basis of the contract
● Example: Behn v. Burness, 1863
○ By charter party( a contract by which a ship is hired for the carriage of
goods), it was agreed that ship m of 420 tons “now in port of
Amsterdam” should proceed direct to new port to load a cargo. In fact
at the time of the contract the ship was not in the port of Amsterdam
and when the ship reached Newport, the charterer refused to load.
Held, the words “now in the port of Amsterdam” amounted to a
condition, the breach of which entitled the charterer to repudiate the
contract. 188

● “A warranty is a stipulation collateral to the main
purpose of the contract the breach of which gives rise
to a claim for damages but not right to reject the
goods and treat the contract as repudiated.”
WARRANTY [SEC 12(3)]
199

DISTINCTION BETWEEN
CONDITION WARRANTY
It is a stipulation which is essential
for the main purpose of the contract
It is a stipulation which is
collateral to the main purpaose of
the contract
In case of breach of a condition, the
aggrieved party can repudiate the
contract of sale
In case of breach of a warranty,
the aggrieved party can claim
damages only
A breach of condition may be treated
as breach of warranty
The breach of warranty cannot be
treated as breach of a condition
20

● Conditions as to title [Sec.14(a)] [Rowland v. Divall,(1923)]
● Sale by description [Sec.15] [Bowes v.shand,(1877)]
● Condition as to quality or fitness.[Sec.16(1)]
● Conditions as to Merchantability [Sec.16(2)]
[R.S.Thakur v. H.G.E. corp., A.I.R.(1971)]
● Conditions implied by custom [Sec.16(3)]
● Sale by Sample (Sec.17) Condition as to wholesomeness
IMPLIED CONDITIONS
221

● Warranty of Quiet possession-Sec.14(6)
● Warranty against encumbrances-Sec.14(c)
● Warranty to disclose dangerous natures of goods.
● Warranty as to quality or fitness by usage of trade – Sec.16(4).
IMPLIED WARRANTIES
22

Let the ‘Buyer Beware’
‟The maxim Caveat Emptor does not apply & the contract will be
subject to the implied conditions under the following
circumstances :
1. Sale under fitness for buyers purpose
2. Sale under merchantable quality
3. Sale under usage of trade4. Consent by Fraud
CAVEAT EMPTOR
23

● Fitness for buyer’s purpose
● Sale under a patent or trade name
● Merchantable quality
● Usage of trade
● Consent by fraud
EXCEPTIONS
24

UNPAID SELLER AND HIS RIGHTS
25

UNPAID SELLER
Seller :- A person who sells the goods or agrees to sell oods
Unpaid :- Payment is not made or without payment.
Unpaid Seller Is A Person :-
i. To whom the whole price has not been paid or tendered.
ii. And where a bill of exchange or other negotiable instruments has been
accepted by him as a condition on which it was received, has not been
fulfilled by reason of dishonour of the instrument or otherwise.
EXAMPLE: Party A sells a car on cash basis to party B
and the price has not been received yet.
26

Right against the goods
A. When the property in the goods has been transferred
1. RIGHT OF LIEN [Sec 46(1)(a) and 47 to 49]
Lawfully right to retain goods possession until the full price is received.
Unpaid Seller can exercise his right of lien in following cases. Sec47-49
I. Where the goods have been sold on the cash basis.
II. Where the goods have been sold on credit basis and
term of credit has expired.
III. Where Buyer has become insolvent,
even if the period of credit has not been expired.
28

Right against the goods (continued…)
Termination of Seller’s right of lien
 Seller delivers goods to carrier or other bailey for transmission to the buyer
 Buyer or his agent lawfully obtains the possession of the goods.
 Seller waives his right of lien on the goods.
 Right of lien once lost will not be restored.
 Buyer further sells the goods and Seller agrees.
Example:
A seller “S” sells a TV set to “B” and delivers it
to “B” and since the TV set was not functioning
properly , “B” delivered it back to “S” for the
repairs. It was held that “S” can not exercise his
right of lien over TV set.
29

RIGHT OF STOPPAGE IN TRANSIT
[Sec. 50 to 52]
To take Possession until the price is paid (sec.50-52)
Unpaid Seller can stop goods in transit -
1. While Buyer becomes insolvent.
2. While goods are out of actual possession of Seller, but
have not reached Buyer’s possession.
(Goods are in transit with career.)
3. Unpaid Seller can stop goods in transit only for payment of price of
goods and not for any other charges.

RIGHT OF STOPPAGE IN TRANSIT
[Sec. 50 to 52] (continued…)
Unpaid Seller can not stop goods in transit -
1. When goods reaches destination.
2. While Buyer or his agent takes possession of delivery even if it is not
reached destination.
3. In case Carrier is agent of the buyer, transit comes to an end the
instance carrier receives goods, so Seller can not stop the transition.
4. Carrier’s wrongful refusal to deliver goods to Buyer.
Example:
”A” sells TV set to “B”.
“A” delivers TV to carrier to carry it to “B”.
Later on gets news that “B” has become insolvent;
“A” can stop delivery.

3.RIGHT TO RE-SALE
If Buyer fails to pay or offer the price within a reasonable time,
Unpaid Seller has right to resell goods where -
 Goods are perishable in nature.
 Unpaid seller has exercised his right of lien or stoppage in transit and gives
notice to Buyer of his intension of resell goods.
 Unpaid Seller has expressly reserved his right of resale.
 Seller gives notice to Buyer of his intension to resell and
Buyer does not pay within a reasonable time, he can
a) Recover loss on resale of goods, if any
b) Retain any surplus on resale of goods, if any
However if Seller sells without notice to buyer, he can not
a) Recover any loss of the goods, if any
b) Retain any surplus on the resale of the goods, if any
Example:
“M” sells 100 blankets to “N” and gives him one week for payment.
“N” does not pay. “M” can resell those to any other person. 32

B. When the property in goods has not been Transferred
RIGHT OF WITHHOLDING DELIVERY
If the property in goods has not passed to Buyer,
Unpaid Seller cannot exercise right of lien,
but gets a right of withholding delivery of goods,
similar to and co-extensive with lien.
Right against the goods
33

Unpaid Seller may enforce against Buyer personally.
(RIGHTS IN PERSONAM)
SUIT FOR PRICE [Sec. 55]
Where ownership of goods has passed to Buyer and
Buyer refuses to pay price according to the terms of contract,
Seller can sue Buyer for price, irrespective of delivery of the goods.
(Sec. 55).
Rights against the Buyer personally
34

SUIT FOR DAMAGES FOR NON-DELIVERY[Sec.56]
Buyer refuses to accept and pay for goods,
Seller may sue him for damages for non acceptance.
The seller can recover damages only and not the full price (Sec. 56)
SUIT FOR SPECIAL DAMAGES AND INTEREST [Sec.61]
Seller can sue Buyer for special damages
where parties are aware of such damages at the time of contract.
Unpaid seller can recover interest at a reasonable rate on total unpaid
price of goods, from time it was due until it is paid. (Sec. 61)
Rights against the Buyer personally (continued…)
35

 To have delivery as per contract (Sec. 31 & 32)
 To reject goods (Sec. 37)
 To repudiate (Sec. 38):
Unless otherwise agreed, Buyer of goods has right not to accept
delivery thereof by instalments.
 To notice of insurance (Sec. 39):
Unless otherwise agreed, where goods are sent by Seller to Buyer
by a sea route, Buyer has right to be informed by Seller so that
he may get goods insured.
 To examine (Sec. 41)
 Right against Seller for breach of contract
Rights of Buyer
36

 To accept goods & pay for them in exchange for possession
(Sec. 31 & 32)
 To apply for delivery (Sec. 35)
 To demand delivery at a reasonable hour (Sec. 36)
 To accept instalment delivery & pay for it (Sec. 38)
 To take risk of deterioration in the course of transit (Sec. 40)
 To intimate Seller where he rejects the goods (Sec. 43)
 To take delivery (Sec. 44)
 To pay price (Sec. 55)
 To pay damages for non-acceptance (Sec. 56)
Duties of Buyer
37

 If Seller neglects to deliver goods, Buyer may sue him for
damages / specific performances.
 Where Buyer neglects to pay prices, Seller may sue him for price
and /or exercise lien on goods.
 Where Buyer wrongfully neglect to accept and pay for goods,
Seller may sue him for damages for non-acceptance.
Summary
38

References:
 ICAI Study Material
 Prof. Srinivas V. K., Christ University, Bengaluru, India
 Ajay Nath Dubey,
Assistant Professor at Dr. Virendra Swarup Institute of Computer Studies
 https://www.slideshare.net/shrinivas1648/sale-of-goods-act-1930business-law
39

Click to edit Master title style
1
The Competition Act
2002

2
What is competition?
It is a situation in the market in which the Firms
or sellers independently Strive for buyers
patronage in order to achieve a particular
business objectives as Profit ,sales or market
share.
2

3
COMPITION ACT
A n A c t t o p ro v i d e , ke e p i n g i n v i e w o f t h e e c o n o m i c d e v e l o p m e nt
o f t h e c ou nt r y, fo r t h e . e sta b l i s h m e nt o f a C o m mi s s i o n t o
p rev e nt p ra c t i c e s h av i n g a d v e rs e e ffe c t o n c o mp et i t i o n t o
p ro m o te a n d s u sta i n co m p et i t i o n i n m a r ket s , t o p ro te c t t h e
i nte re st s O F C o n s u m e rs a n d t o e n s u re f re e d o m o f t ra d e s c a r r i e d
o n b y o t h e rs p a r t i c i p a nt s i n t h e m a r ke t s , i n I n d i a , a n d fo r
m a tte r c o n n e c te d t h e re w i t h o r i n c i d e nta l t h e re to .
3

4
Competition act,2002 and competition (amendment)Act,-2007
Anti – competitive
Agreements , (Section
3)
Abuse of Dominance
, (Section 4)
Competition
Advocacy, ( Section
49)
n04 appears here
Combinations –
Mergers and
Acquisitions
(Section 5 & 6)
4

5
Objectives of Competition Act 2002
• Predecessor :MRTP Act,1969
Followed by: Competition (amendment)Act
• Competition Act 2002 notified in Jan 2003.Stating objective in
Preamble is to provide establishment of a commission to prevent
adverse effect on competition.
 Eliminate Practices having adverse effect on Competition
 Promote & Sustain competition.
 Protect interest of consumers.
 Ensure the freedom of Trade carried on by other Participants of the
market in India (sec 18)
5

6
Competition Act,2002 V/S MRTP Act,1969
6
2002 1969
• Competition concepts expressly defined
• Provisions for regulation of Combination.
• Power to impose penalty.
• Statutory authority can seek CCI's opinion.
 Competition concepts not defined clearly.
 No provisions for regulation of Combination.
 No power to impose penalty.
 No authority to seek opinion.

7
Activities Prevented Under Competition Act
Price fixing Bid rigging Re-sale price fixation
7
All the above activities promote monopoly and will not be entertained by
Competition Commission.
Exclusive dealing

8
Important Definitions Under Competition Act, 2002
Acquisition [Sec.2(a)].It means, directly or indirectly, acquiring or agreeing to acquire -
(i) shares, voting rights or assets of any enterprise
(ii) (ii) control over management or control over assets of any enterprise.
8

9
Anti Competitive Agreements
Between Enterprises (section 3)
There are two types of Agreement
•Horizontal Agreement
•Vertical Agreement

10
I nformant: -
Aj ay Devgan F ilms
O p p o s ite Parties : -
Yas h Raj films
10
Case study : 1

11
C l a i m h i g h l i g h t s :
I . A b u s e o f d o m i n a n c e .
I I . V i o l a t i o n o f S e c 3 a n d S e c 4
o f t h e C C I .
I I I . I n f o r m a n t f e a r e d t h a t h e w i l l
n o t g e t e n o u g h t h e a t r e s f o r
h i s o w n f i l m ' S o n o f S a r d a r.
I V . T i e i n a r r a n g e m e n t a n d
v e r t i c a l a g r e e m e n t s .
11

12 12
• Result of the case:
i. Case dismissed.
ii. CCI did not find any misgivings on
the opposition's side.
iii. Fit for closure under section 26 (2) of
the act.
 Reasons for closure:
i. It in arrangements are not volatile of
Sec. 3, if it does not cause
appreciable adverse effect on
competition of India.
ii. Market cannot be constricted to EID
and Diwali. Market is considered as a
whole throughout the year.
iii. Sec. 4- domination of market not
defined.

13
“
"Number one, cash is king; number two,
communicate; number three, buy or
bury the competition."
- Jack Welch, General Electric
13
Thank You
Amit,Tanmay & Ravi

Presentors –
Zalak Shah
Padmini Manne
Vir Shah

WHAT IS AGENCY?
 A relationship established when one party (agent) is
authorized by another party (principal) to act on his/ her
behalf.
For Example: corporations must hire agents to work for them
since a corporation is an artificial person.
 Def: The Indian Contract Act,1872 does not define the word
‘Agency’. However the word ‘Agent’ is defined as “a person
employed to do any act for another or to represent another in
dealings with third persons”. The person for whom the act is
done or who is so represented is called “Principal”. [Section
182].
 The law of agency is contained in sections 182 to 238 of the Indian
Contract Act, 1872

APPOINTMENT AND AUTHORITY OF AGENTS
Which Person is Qualified?
– Should be a Major and of Sound Mind
Who may be an agent?
- as between the principal and third persons any person may become an
agent, but no person who is not of the age of majority and of sound mind
can become an agent, so as to be responsible to his principal according to
the provisions in that behalf herein contained.
Is Consideration necessary?
- no consideration is necessary to create an agency. The acceptance of the
office of an agent is regarded as a sufficient consideration for the
appointment.

CREATION OF AGENCY
Written
Spoken
Words
Agency by ratification
Estoppel/ holding out
Necessity
Implied appointment
Express appointment
Modes of Creation of Agency

DUTIES OF AGENTS
Performance
 Skill and diligence required from agent
 Communicate with principal
Loyalty
 Not to make secret profits
 Maintain secrecy of business
Accounting
 Render proper accounts

CLASSIFICATION OF AGENTS
General Agent
Special Agent
Universal Agent
Mercantile Agent

KINDS OF MERCANTILE AGENTS
Factors
Brokers
Del Credere Agent
Bankers
Auctioneers

SUB-AGENTS
 When agent cannot delegate?
- An agent cannot lawfully employ another to perform acts which he has
expressly or impliedly undertaken to perform personally, unless by the
ordinary custom of trade a sub-agent may, or from the nature of the
agency, a sub-agent must, be employed.
- Definition-
A “Sub-agent” is a person employed by, and acting under the control
of, the original agent in the business of the agency.

SUBSTITUTE AGENTS
Appointed by the agent to act for the principal, in the business of agency,
with the knowledge and consent of the principal
the principal is appointed by an agent and if that agent identifies another
person to carry out the acts ordered by principal, then the second person is
not to be treated as a sub agent but only as an agent of the original
principal.
What is Substitute Agent’s duty?
An agent is bound to exercise the same amount of discretion as a man of
ordinary prudence would exercise in his own case; and, if he does this, he is
not responsible to the principal for the acts or negligence of the agent so
selected.

DIFFERENCE BETWEEN SUB-AGENT AND
SUBSTITUTE AGENT
1. A sub-agent does his work under
the control and directions of agent
2. The agent not only appoints a sub-
agent but also delegates to him a
part of his own duties
3. The sub-agent is responsible to the
agent alone and is not generally
responsible to the principal
4. Sub-agents may be improperly
appointed
5. The agent is responsible to the
principal for the acts of the sub-
agent
1. A substituted agent works under the
instructions of the principal
2. The agent does not delegate any part of
his task to a substituted agent.
3. a substituted agent is responsible to the
principal and not to the original agent
who appointed him
4. Substituted agents can never be
improperly appointed.
5. The agent is not responsible to the
principal for the acts of the substituted
agent.

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