UNION BANK – BANK PROMOTION EXAMS (Clerical to Officer cadre) Short Notes 2022
UNION BANK SHORT NOTES:- As the Internal Promotion Exams for the employees of Union Bank are ahead, bankers working at the clerk level must be preparing for them rigorously.
And if you have come looking for the content to study for your exams then you are at the right place. Through this article, we provide you the notes that you can go through for revision purposes.
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:
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To check out the detailed syllabus of that has been prescribed for the UBI click here.
UBI BANK PROMOTION SHORT NOTES on COMMERCIAL LAW:
Contract: As per Section 2(h) of the Indian Contract Act, 1872, contract is an agreement enforceable by Law. This Act is applicable to whole of India including Jammu and Kashmir & came into effect from 1st September, 1872.
Formation or the Ingredients of a Contract: A Valid contract would need the following elements. The elements are as follows:
- Offer & Acceptance (agreement)
- Intention to create legal relations
- Certainty and completeness of terms
ESSENTIAL ELEMENTS OF A VALID CONTRACT:
Agreement: To form a contract there must be an agreement b/w the parties. Agreement is created by offer & acceptance. It is the result of mutual exchange of promises b/w the parties.
Free Consent: There shall be free consent b/w the parties to the contract & it is said to be free when the following elements are absent as per Section 14:
- Undue influence
Competency of the parties: The parties making the contract shall be competent to make the contract. A person is said to be competent when he/she/it fulfils the following criteria:
- major (18+)
- sound mind
- not be disqualified by law
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Lawful Consideration: Doctrine of consideration requires that something has to be given in return for a promise in order to make it legally binding. That’s why the agreement shall be supported by lawful consideration.
Legal object: Agreement is always made for some object or purpose and such object is formed on the basis of promises made by the parties. These promises are made either to do or to not to do anything.
Not expressly declared to be void: The agreement must not have been expressly declared to be void i.e an agreement in restraint of marriage, an agreement in restraint of trade, and an agreement by way of wager have been clearly expressed as void u/sec 26, 27 & 30 respectively.
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TYPES OF CONTRACTS:
On Basis of Formation:
Contracts on the Basis of Formation are divided into the following categories:
Express Contracts: These agreements are formed by making an offer and giving acceptance either in spoken words or in writing.
Implied Contract: Implied contracts are formed on the basis of implied promises on the part of parties i.e they are not made by the parties in writing or by the word of mouth. Rather these promises are inferred from the conduct of the parties or from the circumstances.
Quasi‐Contract: Quasi-contracts are those contracts that are based on the principle of justice & equity. The rights and obligations do get created by operation of law rather than offer and acceptance inspite of not having any contract between the parties.
On Basis of Performance:
Contracts on the Basis of Performance are divided into the following categories:
Executed Contract: Contract has legal obligations. When these legal obligations are fulfilled then the contract is said to have been executed.
Executory Contract: The contract that has not been yet been performed is known as Executory Contract.
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On Basis of Validity:
Contracts on the Basis of Validity are divided into the following categories:
Valid Contract: A contract is valid if it satisfies all enforceability conditions that are required to make it enforceable in the court of law.
Void Contract: A contract that ceases to be enforceable by law becomes void i.e not binding in the eyes of law. Void Contracts have no legal effect at all.
Void Agreement: Agreement that is not enforceable by law is known as void agreement because it lacks any one of essentials of a valid contract. They do not have any legal consequence and it is null & void in the eyes of law.
Voidable Contract: An agreement which is enforceable at the option of one or more parties, but not at the option of others is known as a voidable contract.
Illegal Contract: A contract is said to be illegal if the object of contract is illegal.
Unenforceable Contract: Some contracts because of some technical reason (such as contract is not made in writing or is not registered or has no adequate stamp duty on it) may not be allowed to be enforced in the court. But once these technical errors are rectified these contracts may be allowed to be reinforced.
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OFFER, ACCEPTANCE AND CONSIDERATION
Offer: Offer is an essential element of a valid contract. Offer is defined as an Offer or a Proposal i.e when one person signifies to another person his/her willingness to do or to abstain, from doing anything with a view to obtaining, the assent of that other person to such act or abstinence, he is said to have made a proposal.
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Classification of Offer:
Specific Offer: When an offer is made to a specific person, it is known as a specific offer & it can only be accepted by that particular person.
General Offer: An offer that is made to a group of people or public at large and can be accepted by anyone of that group or public is known as general offer.
Cross Offer: When two parties exchange identical offers with each other while they are ignorant about each other’s offers its said to be a Cross offer.
Counter Offer: When an offer is accepted on conditions such offer is known as a counter offer.
Essentials of Valid Offer:
Legal relationship & consequence: The whole concept of making a contract is based on legal relationships or obligations having legal consequences. Thus, the formation of contract that begins with an offer and the offers acceptance is followed by the legal relationships and consequences means offeror have clear intention of establishing the legal relationship with the other party.
Express or implied: Expressed offer is one which could be made either in writing or by word of mouth. While implied offer is inferred or indirectly understood either from the parties’ conduct or from the circumstances.
Specific or general: The offer could be made to a particular individuals or organisations (specific offer) or could be made to a group of people or public at large (general offer).
Communicated: As an offer is made with the intention to create legal relationships so it (i.e the legal consequences) must be communicated to the person to whom it is being made. Without communicating, the offer remains incomplete and it cannot be accepted.
Offer is distinguished from a mere expression of intention or invitation: Sometimes, one party merely shows his intention for making an offer (not actually making an offer) or invites other party for making it. And such invitation or intention for making an offer is not be considered as a valid offer.
Maybe conditional: While making an offer, the offeror may impose some conditions for the acceptor. Though such offer will be valid only if the following conditions are met:
- Offeror cannot make any such condition the non‐fulfillment of which will lead to acceptance of his/her offer.
- The T&C imposed by the offeror must be mentioned or communicated in the offer in such a way that a person (having reasonable prudence) may find the indication for those conditions and those conditions must be reasonably visible.
The notes on the Commercial Laws will continue in the next article as part-2. So, stay tuned for the upcoming article to get the notes from this part on!!
All the very best to the Union Bankers for the upcoming Exam!!
Do let us know how do you like this article in the comment box down below if you want us to add something in the article or something that you think we can do better or improve!!
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