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COERCION Coercion means using force to compel a person to enter into a contract. So force or threats are used to obtain the consent of the party under coercion, i.e it is not free consent. ACCORDING TO SECTION 15 OF INDIAN CONTRACT ACT, 1872 “Coercion is committing or threatening to commit any act forbidden by…
FREE CONSENT IN CONTRACT For a contract to be valid, it is necessary that the parties provide free consent to be terms. If the contract were not with free consent, the contract would be voidable by the other party whose consent was not taken or was not free. Consent is said to be free only…
COMPOSITION LEVY Composition levy scheme under the law is for small businesses. This is to bring relief to small businesses so that they need not be burdened with the compliance provisions under the law. Thus, an option has been provided where they can opt to pay a fixed percentage of turnover as fees in lieu…
LEVY AND COLLECTION OF GST Levy means import of the tax as well as the assessment of the tax. Assessment of the tax is done to ascertain the liability arising under the law. Collection of the tax is done as prescribed under the law. Section 9 of CGST Act/SGST Act and Section 5 of IGST…
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…
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…
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…
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…
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…
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…
