Legal-Environment-short-note-for-mid-fall2024-1.docx

**Chapter 1:** **Understanding Law: Super Simple Summary** Law is a set of rules made by the state to keep society peaceful. Without these rules, life would be chaotic. Holland says law is a rule that controls people\'s actions and is enforced by the government. **Main Points of Law:** 1. It co...

**Chapter 1:** **Understanding Law: Super Simple Summary** Law is a set of rules made by the state to keep society peaceful. Without these rules, life would be chaotic. Holland says law is a rule that controls people\'s actions and is enforced by the government. **Main Points of Law:** 1. It controls what people do. 2. It deals with actions, not thoughts. 3. The government enforces it. **Commercial Law** is about rules for business, trade, and industry. It covers things like buying and selling, banking, insurance, and shipping goods. **Where Law Comes From:** 1. Government Laws: Made by the government. 2. Court Decisions: Judges explain and shape the law. 3. Customs: Old traditions that are fair and don't break the law. 4. Foreign Laws: Some laws from other countries, like England, have influenced Bangladesh. **Plaintiff vs. Defendant:** Plaintiff: The person who starts the case. Defendant: The person being sued. **Chapter 3:** **Offer/Proposal** An offer is when someone says they are willing to do or not do something, hoping the other person will agree. The offer must be clear and meant to create a legal deal. **Important Points About Offers:** 1. Willingness: The person making the offer is ready to do something. 2. Communication: The offer must be told to the other person. 3. Positive or Negative: The offer can be to do something or not do something. 4. Legal Relationship: The offer should aim to create a real legal agreement. **Types of Offers:** 1. Specific Offer: Made to a particular person or group (e.g., offering sponsorship to a company). 2. General Offer: Open to everyone (e.g., a public bus service). **Ways Offers Are Made:** 1. By Words (spoken or written): Through letters, ads, or talking. 2. By Actions: Through behavior or signals (e.g., a beggar asking for money). **Rules for Offers:** 1. **An Offer Can Be Clear or Implied:** - Clear Offer (Expressed): A shopkeeper says, \"I will sell you this book for 200 BDT.\" (direct and specific) - Implied Offer: A bus stops at a bus stop, which implies the driver is offering to take passengers to their destination. 2. **Offers Can Be Made to One Person, a Group, or Everyone:** - Specific Offer: A company offers a sponsorship deal to a particular business. - General Offer: A supermarket offers a 10% discount to anyone who shops there on a certain day. 3. **It Must Be for Something Legal:** - Valid Offer: Offering to sell a bicycle for 5000 BDT. - Invalid Offer: Offering to sell illegal drugs---this is not a valid offer because it involves illegal activity. 4. **Offers Must Be Specific and Clear:** - Clear Offer: \"I will sell you my phone for 10,000 BDT.\" - Not Clear: \"I will sell you something for some money.\" (too vague, unclear what the item and price are) 5. **Ads and Prices Are Not Real Offers; They Are Just Information:** Example: A store advertises \"TVs starting at 20,000 BDT.\" This is just an invitation to negotiate or inquire further, not a binding offer. 6. **The Offer Must Be Told to the Person Accepting It:** Example: A seller offers to sell a car to someone, but the offer must be communicated either in person, by letter, email, or phone before the buyer can accept. 7. **Offers Can Have Conditions, and These Must Be Clear and Fair:** Example: A store offers a 20% discount on all items, but only if customers show their VIP membership card at checkout. **Canceling an Offer (Revocation):** An offer can be taken back before the other person accepts it. After it is accepted, it can't be canceled. **Ways to Cancel an Offer(Revocation):** 1. **By notice:** Tell the other person that the offer is canceled before they accept. Example: A store cancels a 50% discount and tells customers before they arrive. 2. **By time:** If the offer has a time limit and it's not accepted in time, it's canceled. Example: A store offers a discount for one day, but if a customer comes the next day, the offer is over. 3. **By not meeting conditions:** If the person doesn't follow the rules of the offer, it's canceled. Example: If someone forgets their VIP card, they don't get the discount. 4. **By death or insanity:** If the person making the offer dies or becomes insane, the offer is canceled. If someone becomes dead or insane before accepting the offer will be revoked. 5. **By counter-offer:** If the person replies with a different offer, the original one is canceled. Example: If an apple seller offers to sell for 350 BDT, and the buyer says 200 BDT, the original offer is canceled. 6. **By refusal:** Once the person refuses the offer, it's canceled and cannot be accepted later. Example: If someone says no to buying something, they can't force the seller to agree later. 7. **By not accepting the right way:** If the offer says how to accept it, and the person doesn't follow that, the offer is canceled. Example: If a discount is only for in-store shopping, and someone tries to order online, the offer is canceled. **Chapter 4:** **Acceptance** According to the Contract Act, 1872, Sec 2(B), when someone agrees to a proposal, it is called acceptance. When a proposal is accepted, it becomes a promise. **Key Elements of Acceptance:** 1. Agreeing to the offer. 2. The person who received the offer must accept it. 3. The acceptance must be unconditional (without any changes). **Legal Rules for Valid Acceptance:** 1. **Acceptance Must Be Absolute and Unconditional:** Example: If Shejuti offers to sell her car for 400,000 BDT and Tawfiqul says he'll pay part now and the rest later, this is a counter-offer, not acceptance. The deal is void because acceptance wasn't unconditional. 2. **Acceptance Must Be Given by the Offeree:** Example: A customer makes an offer to the business owner, but the manager accepts it instead. The customer refuses to pay because the acceptance didn't come from the right person (offeree). The offer is revoked. 3. **Acceptance Must Be Made in a Usual and Reasonable Manner:** Example: If the offer doesn't say how to accept, the acceptance should be done in a normal and reasonable way. 4. **Acceptance Must Be Communicated:** Example: The person accepting the offer must clearly communicate their acceptance. 5. **Acceptance Must Be Given Within a Reasonable Time:** Example: The acceptance must be done within a reasonable period after the offer is made. 6. **Silence Is Not Acceptance:** Example: If someone doesn\'t respond, it doesn't mean they have accepted the offer. 7. **Rejected Offers Can Be Accepted Only If Renewed:** Example: If an offer is rejected, it can only be accepted if the offer is made again (renewed). **How Acceptance Can Be Made:** According to Sec 7(2): - If the offer doesn't say how to accept, acceptance should be done in a normal way. - If the offer says how to accept, the person must follow that method. **Revocation (Taking Back) of Acceptance:** According to Sec 5 of the Contract Act, 1872: - Acceptance can be canceled before it's fully communicated to the person who made the offer. But after communication, it cannot be canceled. **Chapter 5:** **Intention to Create Legal Relation** For an agreement to become a binding contract, both parties must intend to enter into a legal relationship. This intention is usually understood from the terms and circumstances surrounding the agreement. If there's a dispute, the court decides whether the parties intended to create legal obligations. **Example Case: Balfour v Balfour (1919)** A husband promised to pay his wife £30 a month while he was overseas. They later divorced, and the wife wanted to enforce the agreement. **Judgment:** The court ruled in favor of the husband because there was no intention to create legal obligations between them when they made the agreement. Example: If Mr. Harun promises to invite Mr. Hungry for dinner but later changes his mind, this is not legally enforceable because there was no intention to create a legal relationship. **Consideration in Contracts:** Consideration is the \"price\" for which a promise is bought. It\'s what makes a promise legally enforceable. In simple terms, it\'s what each party gives or does in return for the other's promise. **Elements of Consideration:** - It must be done at the desire of the promisor. - It must be accepted by the promise or any other person. - It can be past, present, or future actions or promises. - It must be lawful. **Types of Consideration:** - Past Consideration: Something done before the promise. - Present Consideration: Something done right now. - Future Consideration: A promise to do something in the future. **Rules for a Valid Consideration:** - It must be done at the desire of the promisor. - It can come from the promise or someone else. - It can be past, present, or future. - It doesn't have to be equal in value, but it must be real. - It must be lawful. - It does not apply to public duties (e.g., a police officer doing their job). **Promise to Charity** A promise to donate to charity is not legally enforceable unless it has consideration. For example, if someone promises 500 TK to a mosque but doesn't pay, the promise isn't binding. **Exception:** If the promise was made for a specific purpose, and someone took action based on the promise, then it becomes legally enforceable. Example: If X promises to pay 1000 TK for town hall repairs, and a contractor is hired based on that promise, X is legally required to pay after the repairs are done. **Exceptions to Consideration:** - Natural love and affection (e.g., family agreements). - Voluntary completion of an act. - Time-barred debts (old debts that cannot be legally collected but are still promised to be paid). - Agency relationships (when someone acts on behalf of someone else). **Chapter 7:** **Capacities of Parties:** 1. **Who Can Make a Contract?** - Legal Age: A person must be 18 years or older to make a contract. - Sound Mind: The person must be able to understand and make a reasonable decision. - Not Disqualified: Some people are not allowed to make contracts because of the law (e.g., criminals in jail). 2. **Minors (Under 18 Years Old):** Minors cannot make contracts. Any contract made with a minor is void (not valid). Example: Peter, who is 17, borrows money but later refuses to pay back because the contract is void. The court supports Peter because he was underage when he made the deal. 3. **Minors as Beneficiaries:** A minor can receive benefits from a contract but can't enter one. Example: Peter lends money to his neighbor, John, and makes the mortgage in the name of his 10-year-old son. Since the son is a beneficiary, it is allowed. 4. **Minors as Agents:** Minors can be agents (working for someone else) but they are not responsible for anything that goes wrong. 5. **Unsound Mind:** - A person can make a contract only when they are in a sound mind (able to understand what they are doing). - If someone has mental issues or is drunk, the contract is void. - Example: If a person with a mental illness signs a contract, it can be canceled because they couldn't fully understand it. 6. **Disqualified Persons:** - Foreigners (Aliens): Foreigners can make contracts unless the law restricts them, especially during war. - Foreign Governments: They can only make contracts through agents. - Companies: Companies can make contracts through their representatives. - Professionals: In some countries, professionals (like lawyers) have different rules for making contracts. **Chapter 2:** **Contract** **What is a Contract?** A contract is an agreement between two or more people that can be enforced by law. **Essential Elements of a Contract:** 1. **Offer and Acceptance:** One person offers something, and the other agrees. Example: A person offers to sell their bike for \$100, and someone agrees to buy it. 2. **Intention to Create Legal Relations:** Both parties intend for the agreement to be legally binding. Example: A couple signs a rental agreement for an apartment. 3. **Lawful Consideration:** Something of value must be exchanged. Example: You pay \$50 to get a pizza. 4. **Capacity to Contract:** Both parties must be adults and mentally capable. Example: A 20-year-old can sign a contract, but a 15-year-old cannot. 5. **Free Consent:** Agreement must be made without pressure or deceit. Example: If someone agrees to a deal because they were threatened, that contract is not valid. 6. **Lawful Object:** The purpose of the contract must be legal. Example: A contract to sell illegal drugs is not valid. **Rights in Rem and Rights in Personam:** **Right in Rem:** Rights that apply to everyone. Example: Owning a car that no one else can take without permission. **Right in Personam:** Rights against a specific person. Example: If you lend a friend \$50, you have a right to get that money back from them. **Types of Contracts:** 1. **Method of Formation**: **Express Contract**: Clearly stated terms. Example: Writing a lease agreement for an apartment. **Implied Contract**: Understood from actions. Example: When you go to a restaurant, it's implied you will pay for your meal. **Quasi Contract**: Treated like a contract to prevent unfairness. Example: If a delivery is made to the wrong address, and the person keeps the goods, they must pay for it. 2. **Time of Performance:** **Executed Contract**: Done immediately. Example: Paying cash for a sandwich and receiving it right away. **Executory Contract**: Actions to be done later. Example: Signing a lease to pay monthly rent for an apartment. 3. **Parties Involved:** **Bilateral Contract**: Both sides have obligations. Example: Buying a car where the buyer pays and the seller transfers ownership. **Unilateral Contract**: One side makes a promise. Example: A company promises a reward for finding a lost pet. 4. **Legality or Validity:** **Valid**: Legally enforceable. Example: A valid contract to sell a smartphone. **Void:** No legal effect. Example: A contract to perform an impossible task. **Voidable:** Can be canceled by one party. Example: A contract signed under duress (threat). **Illegal:** Involves illegal activity. Example: A contract for selling stolen goods. **Unenforceable:** Valid but can't be enforced. Example: A contract for a service not recognized by law. 5. **Uncertainty:** **Contingent Contract**: Depends on an uncertain event. Example: Life insurance pays if the insured person dies. **Wagering Agreement:** A bet, which is not legally enforceable. Example: Betting on the outcome of a sports game. **Difference Between Contingent and Wagering Agreements:** - Contingent Contract: Valid and based on future events (like insurance). - Wagering Agreement: Invalid and based on gambling, with no legal backing (like a bet on a game). **Chapter 6:** **Void and Voidable Agreement** A void agreement is one that the law does not recognize. It cannot be enforced in court, usually because it involves illegal activities. For example, a contract between drug dealers and buyers is void because it is based on something illegal. **Laws of Void Agreement** - **Section 26**: You can't make a contract that stops someone from getting married (unless they're too young). For example, if someone promises never to marry, that promise isn't valid. - **Section 27:** Contracts that stop someone from doing a legal job or business are not valid. For example, promising never to work or run a business is not allowed. - **Section 28:** A law cannot be changed to help just one person. - **Section 29:** If a law is unclear or confusing, it can't be enforced. - **Section 30:** Contracts based on betting or uncertain events are not valid. - **Section 56(1):** If something is impossible to do, any contract about it is not valid. - **Sections 24, 57, 58:** Contracts that involve illegal activities are also not valid. **Voidable Agreement:** A voidable agreement is one that can be canceled by one of the parties involved. For example, if Shila forces Mila to sell her car, Mila can choose to cancel the contract. Shila cannot enforce the contract, but Mila can if she wants to. **Unenforceable Agreement:** An unenforceable agreement is one that cannot be enforced in court due to a technical issue, like missing registration or incorrect stamp duty. For example, if Rahim buys land from Karim for 50 thousand, but the registration has errors like a misspelled name or wrong amount (5 thousand instead of 50), the agreement becomes unenforceable. **Valid Contract:** A valid contract is an agreement that meets all the necessary legal requirements and can be enforced by a court. For example, if one person offers to sell their car for \$100 and the other person accepts, it forms a valid contract.