Business Regulatory Framework - Introduction, Agreement, Contract and Types of Contract, Study notes of Business Administration

Download Business Regulatory Framework - Introduction, Agreement, Contract and Types of Contract and more Study notes Business Administration in PDF only on Docsity! BUSINESS REGULATORY FRAMEWORK Business Regulatory Framework is also known as Business Law. We know that law is needed to regulate conduct of people who are engaged in business. It enables them to carry their business smoothly by making agreements enforceable by law. CONTRACT ● According to Section 2(h) of Indian Contract Act 1872 term contract is defined as “an agreement enforceable by law”. ● Contract consists of two essential elements: a. An agreement b.Enforceable by law As per section 2(e) of Indian Contract Act, 1872 the term agreement is “every promise and set of promises forming the consideration for each other.” ● Section 2(b) defines promise as “When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. Proposal when accepted becomes a promise.” ● An agreement is the result of the proposal made by one party to the other party and that other party gives his acceptance. ● Thereto, Agreement= Proposal+ Acceptance Enforceability by Law ● Enforceable means able to be imposed, can be executed and can be abide by the law. ● An agreement to become a contract must give rise to a legal obligation which means duty enforceable by law. Conclusion Contract= Accepted Proposal (Agreement)+ Enforceability by law All contracts are agreements but every not every agreement is a contract. ● In case of domestic, social and political agreements, law presumes that parties didn't have any intention to create legal relations Example:- Balfour vs Balfour case