UNION BANK – BANK PROMOTION EXAMS Short Notes Part-3
UNION BANK BANK PROMOTION Short Notes:- The Internal Promotion Exams of Union Bank are going to be conducted on 05.12.2021 for the personnel at Clerical Level.
As the exam is just 1 day ahead, you can go through these notes to have a quick revision of the Commercial Law. This is the 3rd part of notes that will start from where the last notes (i.e Part-2) had ended.
The subjects that have been prescribed by UBI for the Scale-I or Junior Management Grade have been divided into 4 papers. The papers prescribed are provided down below:
|Legal & Regulatory Aspects of Banking
You can read the full syllabus of the above-mentioned subjects for the UBI click here.
Short Notes – Part 1
Short Notes – Part 2
UBI BANK PROMOTION SHORT NOTES on COMMERCIAL LAW:
As per Section 13 of the Indian Contract Act, two or more persons are said to have given their consents when they agree upon the same thing and in the same sense. And section 14 of this act states that the consent is said to be free when it is not caused by:
- Coercion: With the application of physical force
- Undue influence: Use of mental pressure to make the party agree
- Misrepresentation: false representation that was made without any ill intention
- Fraud: Cheating or deceiving (intentional)
- Mistake: Wrong impression about anything related to the agreement
Important Topic:- UNION BANK – PRACTICAL BANKING MOCK TEST
Elements of Free Consent:
Coercion: It implies the use of some kind of physical force (forbidden by law) to seek or obtain the consent of other party.
Undue Influence: It implies use of dominating position for unfair practice to get the consent of other party for a contract. In undue influence some kind of mental and moral pressure is brought upon a party to cause his consent.
Misrepresentation: While making a contract, one of the parties may make any statement regarding the subject matter of a contract that turns to be untrue, amounts to misrepresentation. There is no free consent where the material facts were misrepresented.
Fraud: Its an intentional misrepresentation of the facts of the case. It is always committed to deceive or cheat another person. Thus, when one person does anything or makes false statement knowing it to be incorrect so as to induce the other party for causing this consent, it is known as fraud.
Mistake: It may be defined as a wrong impression or erroneous opinion in the mind of a person about any subject matter, event or it may consent something.
Important Topic:- Union Bank – Accountancy MOCK TEST
LEGALITY OF OBJECT:
Every contract is made for an object or purpose. The object of a contract is formed on the basis of promises that are made by the parties. For the contract to be legally valid it must have a lawful object because when the contract is created for doing something illegal, it defeats the provisions of the law and therefore, such contract is not valid in the eyes of law.
As per section 23 of this act, following are the unlawful acts:
- Forbidden by law
- Prohibited by special legislation
- It is fraudulent
- It would defeat the provisions of any law
- Courts tp public policy
- Involves enquiry to person/property if another
- Opposed to public policy
- Interference with course of justice
- Trade with alien enemies
- To supersede prosecution
- For sale of public titles or offices & honors
- Marriage brokerage
DISCHARGE or TERMINATION OF CONTRACT
Discharge of a contract means that there is termination of the contractual relationship between the parties to contract. On such the termination the parties involved are released from their obligations in the contract. And in this way contract is ended.
Modes of Discharge in Contract: A contract can be discharged by the following modes:
- By performance of the contract (fulfillment)
- By mutual agreement among the parties
- By impossibility of the contract
- By operation of law
- By material alteration
- By lapse of time
- By breach of contract
Read Also:- UBI BANK PROMOTION EXAM SYLLABUS 2021-2022
BREACH OF CONTRACT
Breach of Contract: A valid contract results in contractual obligations between the parties to contract that are required to be fulfilled by the parties on the due date as per T&C of a contract. When one party does not fulfill his obligation or refuses to fulfill it or something else disables himself from fulfilling him, it is known as breach of contract.
Breach of contract has been categorised into 2 types:
Actual breach: This breach takes place when the promisor fails to perform his part of obligation or refuses to do it on the due date of performance.
Anticipatory breach: When the promiser either refuses to perform or makes himself unable to perform a promise before the due date of performance, it is said to be an anticipatory breach.
REMEDIES OF BREACH OF CONTRACT
Rescission: When one party breaches the contract (does not fulfill his/her obligation), the aggrieved party has a right to rescind such contract. The aggrieved party can exercise this right by filing a suit for the rescission of contract. On granting rescission, the aggrieved party gets released from his or her obligation of that contact and they are no more liable to perform their promise.
Suit of Damages: On breach of contract by a party, the aggrieved party may suffer monetary loss. Because the breach may put him in a disadvantageous position or in a position of discomfort. Therefore, the aggrieved party has a right to claim for compensation for his loss.
Suit for Specific Performance: When a breach happens and the aggrieved party suffers a loss, those losses may be of such a nature that the damage that is granted for these by the court maybe insufficient or inadequate. It is because of the fact that such losses cannot be measured in terms of money. And the aggrieved party is entitled to claim for order of specific performance.
Suit for Injunction: In a contract, if the party has promised to not to do something, and that party breaches the contract by doing that same thing it promised not to do, then, to prevent such party from doing that act, an order of injunction may be claimed by an aggrieved party. An order of injunction is passed by the court of law, directing the party (who breached the contract) and refraining him from performing or doing what he had promised not to perform or do.
Important Topic:- BANK PROMOTION 2022 EXAM STUDY MATERIAL
An injunction is a preventive relief provided to the party aggrieved when the damages would not be an advocate relief or enough to compensate the loss, as it is a negative form of order of specific performance.
Suit Upon Quantum Meruit: Quantum Meruit is a Latin dictum which means “as much as earned or merited”. In a contract, the promisor may breach the contract while he is in the process of performing his promise but the breach happens before he completes it. That means under Quantum Meruit, the aggrieved party can also claim for the reasonable cost of work that is done by him as per the contract.
All the very best to you for your Exam!!
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