The term “underwrite” originates in the 17th century when marine vessels would be underwritten for insurance risk for overseas voyages.Risk can defined as the possibility of incurring an amount loss.In the finance sector, it is the probability that the actual return of an investment will be different from the expected. The insurance company would sub-scribe (literally…
NON DISCLOSURE AGGREMENT: NDA A non disclosure agreement is a special type of agreement in which the parties entering into it should make sure that information exchanged amongst them should remain confidential and there must not be any sort of leakage of the secret information. Non disclosure agreement commonly known as NDA has become very…
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. Sale of goods Act, 1930 provides the provisions related to contract of sale. Section 2 (2) of Sale of goods act, 1930 defines delivery. According to this section…
What is a pledge? A pledge is a type of bailment which allows the pledgor/pawner to transfer the possession of an object to the pledgee/pawnee to maintain as a security or collateral until the duration of either repayment of a loan, deliverance of promised goods, or completion of specific contractual obligation. This is usually done to guarantee the performance…
The ideal market is the one in which various market participants are independent and act as competitive restrain on each other. This economic liberty of market participants is sine qua non for preserving free and unfettered competition in any market. Some time the market participants with an objective to make more money instead of competing…
A contract is an agreement between private parties or individuals that create mutual obligations, which are legally enforceable. Mutual assent, expressed by a valid offer and acceptance, adequate consideration, legality, and capacity are the basic elements required for an agreement to be legally enforceable. Contracts are legally enforceable promises. And whenever a promise is not fulfilled,…
Auction Sale INTRODUCTION A public sale is an auction sale. The products are auctioned to the general public who have gathered in one location for the auction, and all prospective buyers are referred to as bidders. The bid is the price they are giving for the products, and the things will be sold to the…
EXCEPTION TO THE RULE OF CAVEAT EMPTOR The Doctrine of Caveat Emptor and its Exceptions Introduction To understand the concept of Caveat emptor, let us ponder upon the following illustrations: A purchases a house from B. Before the purchase, A asked B about the defects in the house. B told him that there was a…
Bailment vs. Pledge Bailment and Pledge are two types of contracts that can get confusing. Bailment is defined as per Section 148, Indian Contract Act 1872 as the transfer of movable goods from one party to another party for any specific purposes such as service, promise or need[1] whereas, pledge is defined in Section 172…
WHO IS A HOLDER According to Section 8 of the Negotiable Instruments Act, 1881, the “holder” of a promissory note, bill of exchange or cheque means any person who is entitled in his own name to the possession thereof and to receive or recover the amount due thereon from the parties thereto. Let’s understand the…
