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CAPACITY TO CONTRACT Capacity to contract refers to the legal competence of parties to enter into a valid contract. The capacity of parties is an essential element which satisfies the requirements of a valid contract. Under section 11 of the Indian Contract Act 1872, any person is competent to contract are as follows: A person who attained…
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STRANGER TO CONTRACT The stranger to contract is a doctrine which means privity of contract. It means that a person, who is not a party to the contract, cannot sue for carrying out the promise made by the parties to the contract. That is, a person who is not a party to the contract cannot enforce…
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NO CONSIDERATION NO CONTRACT A promise without consideration cannot create a legal obligation. The general rule is that an agreement made without consideration is void. This rule is contained in Section 25 of the Indian Contract Act, which declares that ‘an agreement made without consideration is void’. This means that consideration is a must in…
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LAPSE OF AN OFFER Lapse of an offer refers to revocation of an offer as the time passes. Circumstances in which an offer lapses and becomes invalid are listed below: LAPSE BY REVOCATION: UNDER SECTION 7 (1) If the offeror revokes the offer before its acceptance by the offeree, the offer stands lapsed. According to…
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REVOCATION OF OFFER AND ACCEPTANCE The Indian Contract Act lays out the rules of revocation of an offer and acceptance in Section 5. It says the offer may be revoked anytime before the communication of the acceptance is complete against the proposer/offeror. Once the acceptance is communicated to the proposer, revocation of the offer is…
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HOW MANY TYPES OF GST IN INDIA GST is one indirect tax for the entire country. “GST is a comprehensive, multi-stage, destination-based tax that is levied on every value addition.” There are around 160 countries in the world that have GST in place. GST is a destination based taxed where the tax is collected by the State where goods are consumed. India is going…
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SGST SGST is one of the tax components of GST in India. SGST refers to State Goods and Service Tax. It is one of the three categories under Goods and Service Tax (CGST, IGST and SGST) with a concept of one tax one nation. SGST falls under State Goods and Service Tax Act 2017. It…
UTGST FULL FORM UTGST full form is Union Territory Goods and Services Tax. It is the GST applicable on the goods and services supply that takes place in the union territories of India. Union Territory GST will be charged in addition to the Central GST (CGST). GST under supply of goods and services takes place…
DIFFERENCE BETWEEN STANDARD COSTING AND BUDGETARY CONTROL The difference between standard costing and budgetary control is as follows: STANDARD COSTING Standard costing is a cost accounting technique which compares the results of actual production with the basic standard, as anticipated, in terms of costs so as to determine the reasons for discrepancies between the anticipated…
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VARIANCE ANALYSIS Variance Analysis is the analysis of variances arising in a standard costing system into their constituent parts. It is the analysis and comparison of the factors which have caused the differences between predetermined standards and actual results, with a view to eliminating inefficiencies. ACCORDING TO I.C.M.A. “Variance analysis is the resolution into constituent…
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