Contracts-II

[Virtual Presenter] Implied conditions and warranties are terms that are not explicitly stated in the contract but are assumed to be included by law to ensure fairness and protect the interests of the buyer. These conditions are fundamental terms that go to the root of the contract. If breached the buyer can repudiate the contract. Some of the key implied conditions include: Title: The seller has the right to sell the goods and the buyer will enjoy quiet possession of the goods. Description: Goods sold by description must correspond with the description. Fitness: If the buyer makes known the particular purpose for which the goods are required there is an implied condition that the goods shall be reasonably fit for that purpose. Merchantable Quality: Goods bought by description from a seller who deals in goods of that description must be of merchantable quality. These implied conditions are intended to ensure that the contract is fair and that the buyer's interests are protected. If the seller breaches any of these implied conditions the buyer may have the right to repudiate the contract and seek compensation..

[Audio] Implied conditions and warranties are crucial elements of contracts. Implied conditions form the foundation of the agreement and if they are breached the buyer can terminate it. The essential implied conditions are: Condition as to Title Condition as to Description Condition as to Quality or Fitness Condition as to Merchantable Quality and Condition as to Sample. On the other hand implied warranties are secondary terms that do not affect the core of the contract. If a warranty is breached the buyer can claim damages but not terminate the contract. The essential implied warranties are: Warranty of Quiet Possession and Warranty of Freedom from Encumbrances. For example if goods are purchased by sample they must match in quality when purchased in bulk..

[Audio] We can discuss the rights that an unpaid seller can exercise under the Sale of Goods Act 1930. These rights can be broadly categorized into three types: rights against the goods rights against the buyer and the right of resale. The first right that we will discuss is the right of lien. This right allows the unpaid seller to retain possession of the goods until payment is made. However this right is lost if the seller delivers the goods to a carrier for transmission to the buyer without reserving the right of disposal. The second right that we will discuss is the right of stoppage in transit. If the buyer becomes insolvent the unpaid seller can stop the goods in transit and regain possession. The third and final right that we will discuss is the right of resale. This right allows the unpaid seller to resell the goods if the buyer defaults. This right can be exercised if the goods are perishable or if the seller has given notice to the buyer of their intention to resale. We will provide a detailed explanation of each of these rights along with leading cases that have established their legality..

[Audio] The right of the seller to sue for the price of the goods is a fundamental right that protects their interests. This right is enforced if the property in the goods has passed to the buyer or if the price is payable on a certain day regardless of delivery. If the buyer fails to pay damages for non-acceptance can be claimed..

[Audio] 1. Dissolution is the process of ending a partnership. 2. According to the Indian Partnership Act 1932 there are several ways to dissolve a partnership. 3. Here is a detailed procedure for the dissolution of a partnership firm under the Indian Partnership Act 1932: 4. Dissolution by Agreement.

[Audio] Misconduct affecting the business can lead to partnership dissolution. Persistent breach of the partnership agreement transfer of entire interest in the business and operating at a loss can also lead to partnership dissolution. The court can order dissolution in these situations. Once the court has ordered dissolution the partners must settle their accounts sell the firm's assets to pay off liabilities clear all debts and obligations and distribute any remaining assets among the partners according to their profit-sharing ratio. Finally the partners must issue a public notice of the dissolution to avoid future liabilities and notify the Registrar of Firms about the dissolution..

[Audio] The final accounts represent the financial statement of the firm and it is the responsibility of the partners to prepare and settle them. This process involves reviewing all financial transactions and ensuring that they are properly accounted for. In addition to preparing the final accounts the partners must also distribute any remaining assets among themselves. This is an important step to ensure that all partners receive their fair share of the assets..

[Audio] There are three types of endorsements for negotiable instruments: A Blank or General Endorsement: This occurs when the endorser signs their name only making the instrument payable to the bearer and not restricting its use. A Special or Full Endorsement: This happens when the endorser signs their name and specifies a particular person to whom the instrument is payable. A Restrictive Endorsement: This occurs when the endorser limits the use of the instrument to a specific purpose or restricts further negotiation..

[Audio] We will now discuss endorsements which are mentioned in the presentation on implied conditions and warranties. There are several types of endorsements including partial endorsement conditional or qualified endorsement sans recourse endorsement and facultative endorsement. Let's start with partial endorsement which transfers only a part of the amount payable on the instrument. For example endorsing a cheque for ₹10 000 as “Pay ₹5 000 to Jane Smith” is not valid for negotiation. Next we have conditional or qualified endorsement. In this case the endorser attaches a condition to the transfer of the instrument. For example “Pay to Jane Smith upon her graduation ” followed by the endorser’s signature. Moving on to sans recourse endorsement the endorser disclaims any future liability on the instrument. An example of this is “Pay to Jane Smith without recourse ” meaning the endorser will not be liable if the instrument is dishonored. Lastly we have facultative endorsement. In this case the endorser waives some of their rights such as the right to receive notice of dishonor. For example “Pay to Jane Smith notice of dishonor waived.” That concludes our discussion on endorsements..