UNION BANK – BANK PROMOTION EXAMS SHORT NOTES
BANK PROMOTION EXAMS SHORT NOTES:- The Internal Promotion Exams for the employees of Union Bank are scheduled on 05.12.2021 & if you are working at the clerk level in UBI then you must be preparing for them rigorously.
To help you with your preparations we hereby provide you with the Short Notes on commercial law. These notes will start from where the last notes i.e Part-1 had ended. They will help you immensely in your revisions.
The syllabus that has been prescribed by UBI for the Junior Management Grade or Scale-I has been divided into 4 papers. The papers are given down below:
|Legal and Regulatory Aspects of Banking||
To check out the detailed syllabus of that has been prescribed for the UBI click here.
UBI BANK PROMOTION EXAM SHORT NOTES on COMMERCIAL LAW:
REVOCATION OF OFFER: It means withdrawal, cancellation or lapse of offer.
As per Sec 6 of this act, Offer can be revoked under the following circumstances:
- By notice,
- By lapse of time,
- Death or insanity of offeror
- By counter offer,
- Non‐fulfillment of prerequisite conditions,
- By compliance with of prescribed mode or manner
Important Topic:- UBI PROMOTION EXAM DATE 2021-2022
ACCEPTANCE: As per Sec 2(b) of the Indian Contract Act 1872, defines that a proposal or offer is said to have been accepted when the person to whom the proposal is made signifies his assent to the offer.
Essentials of Valid Acceptance:
- Acceptance must be absolute & unconditional: Offer may be made for a specific quantity, volume and price and may also contain T&Cs. But what is necessary is that the acceptor must accept it for the entire quantity and volume.
- Acceptance must be given in a prescribed mode or manner: Sometimes the offeror may prescribe a particular mode or manner of acceptance and the acceptor must abide by that mode or manner. Otherwise, the offeror can reject the acceptance.
- Time of acceptance: It must also be given within a stipulated period of time if any. Otherwise, it must be given within a reasonable period of time.
- Acceptance must be communicated: Like offer, acceptance need to be communicated too to be legally effective.
- Acceptance may be expressed or implied: The acceptor may give his assent for the proposed action by the word of mouth or in writing. It is implied when the acceptance is directly understood either from the conduct of the party or from the circumstance.
- It must be made before the offer is revoked: Acceptance implies the mental readiness of the person; therefore, it must be given before the offer lapses or is withdrawn or canceled. Because once the offer is dead due to any reason it is dead forever.
- It cannot be implied from the silence of the party: Acceptance of offer cannot be implied from silence. Silence on the part of the offeree regarding the offer in no case may amount to acceptance of the offer.
Important Topic:- UNION BANK – PRACTICAL BANKING MOCK TEST
REVOCATION OF ACCEPTANCE:
- Failure of acceptor to accept the offer
- Acceptor dies or becomes insane
- It’s not done in reasonable time and manner
- The offeree rejected the offer
- Due to the impossibility of offering
CONSIDERATION: Consideration is something in return. As per Sec 2(d) of the Indian Contract Act, “When at the desire of the promisor, promisee or any other person has done or abstained from doing, does or abstains for doing or promises to do or to abstain from doing something, such act, abstinence or promise is called a consideration for the promise.”
Read Also:- UNION BANK – BANK PROMOTION EXAMS Short Notes Part-3
Essentials of Valid Consideration:
- Form: It is in the form of some act or abstinence or a promise for doing or not doing something.
- It shall move or be given at the promisor’s desire: In agreement, there are two parties i.e promisor and promise. The consideration is generally given by the promise to the promisor. According to this rule, any act or promise will be valid consideration if such act has been done or promise is made at the desire or request of the promisor.
- Past, present, or future: When the acts of making promises and getting consideration are done simultaneously, it is called present consideration.
When the consideration has been given to the promisor before he or she makes a promise, it is known as past consideration.
And when it’s in the form of a promise to be performed in the future. It’s called a future consideration.
- It may move or be given by the promisee or any other person: Usually in every agreement consideration is given by the promisee to the promisor. But it is not necessary. Any other person on behalf of the promisee may give consideration. That would be valid too.
- Need not be adequate: It is not necessary that the value of promise has to be equal to the consideration value. Even if the consideration is less than the value of the promise, the contract remains valid.
- Real & not illusory: Consideration given must be real & must have some value in-law eyes. Therefore, it must not be illusory, fraudulent, factious, uncertain, or illegal.
- Lawful: An agreement to be enforceable in the court has to be made for lawful consideration. Any act that is illegal, immoral, and against the public policy will not be considered a valid consideration for the contract.
Important Topic:- BANK PROMOTION 2022 EXAM STUDY MATERIAL
CAPACITY OF PARTIES:
The capacity to contract of the parties a contract is an essential ingredient of a valid contract. Section 10 of this act makes it essential that the parties making an agreement must have contractual capacity. Contractual capacity means the parties involved must be legally competent for making a contract i.e they must fulfill the condition of Age, soundness of mind, and legal disqualification. These conditions are explained below:
- Minor: A minor is a person who has not completed the age of 18 years. As per the Indian Contract Act, only a major person is competent to contract. Therefore, entering into a contract with a minor is altogether void.
- The soundness of mind: Section 12 of this act says that a person is said to be of sound mind for the purpose of making a contract, if at the time (when the contract is being made) they are capable of understanding it and forming a rational judgment as to its effects upon their interests.
Important Topic:- UBI BANK PROMOTION EXAM SYLLABUS 2021-2022
Lunatics: One who is mentally affected due to some mental strain or other personal is said to be a lunatic. It could be the situation that he or she suffers from intermittent intervals of sanity and insanity. And they can enter into a contract only during the period of sanity.
Idiot: An idiot is a someone who is permanently of unsound mind as he does not exhibit minor understanding of even minor objects or things. An idiot is not capable to enter into a valid contract.
Drunken Person: A person who takes any intoxicants like alcohol or drugs etc. he becomes temporarily incompetent of entering into a contract. Thus, so long as the person remains under the influence of drugs or intoxicants, he has no contractual capacity. Thus, agreement made by drunkards is void.
- Legal Disqualification:
Alien enemy: Law prohibits to enter into an agreement with an alien enemy (i.e someone who lives in and is a citizen of a foreign country). As agreements made with alien enemies are void. He or she could be a friend or an enemy of our country. Although alien friends are allowed to make an agreement with Indian citizens in the situation of war between 2 countries, the citizens of those countries become alien enemies to each other.
Foreign sovereign: Ambassadors, high commissioners or foreign diplomatic staff represent their country in other countries. Therefore, under the law, they have been provided some immunities through which they can make an agreement with Indian citizens and they are valid therefore are enforceable against the Indian citizens. But for Indian citizens to sue them for the rights arising out of an agreement, has to seek prior permission from the central govt.
Corporations: It is an artificial person that is created by law. For example, A company registered under the Companies Act, 2013. Therefore, being an artificial entity, it exists only in contemplation of law & has no physical shape or form. Although The Indian contract act does not contain or say about the capacity of a corporation to enter into a contract a properly incorporated company has a right to enter into a contract. Corporations can sue and can be sued in their own names.
Insolvent: When the assets of a person fall short of liabilities and they (liabilities) cannot be paid fully, such state of affairs is called insolvency & a person is declared as insolvent by the court. Until the court issues an order of discharge in favor of that person he cannot enter into contracts relating to his property.
Married women: They have no right to enter into agreements regarding the joint property of husband & wife unless they are authorized to do so by their husbands. Although they are free to make any agreement to deal with their personal property such as bank balance in their names and jewelry etc. But if their husbands fail to fulfill the basic necessities of their lives, they become an agent of her husband by necessity.
Important Topic:- BANK PROMOTION 2022 EXAM SYLLABUS
Convict: Convicts are not allowed to enter into contracts until the expiration of their imprisonment term. Although a convict can enter into, or sue on, a contract when he is on parole, bail or when he has been pardoned by the court.
The notes on the Commercial Laws will further continue in the next article as part-3. Stay tuned for the next upcoming article to get the notes from the 2nd part on!!
All the very best to you for the Exam!!
Do let us know how to do you like these notes in the comment box down below and if you want us to add something in the article or something that you think we can do better or improve comment that too!!
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