QUESTION 1: Explain the performance of contracts

ANSWER:
Definition: A legal agreement in which one organization agrees to pay another wh
en they successfully finish the project or task they were employed to do.
Execution of a contract by which the contracting parties are automatically disch
arged (see discharge of contract) of their obligations under it. Although contra
cts usually call for full and precise performance, a substantial performance may
be acceptable under certain circumstances, on a pro rata basis, or on payment o
f damages for the unfinished or defective performance.
We can also say Performance is actually completing the deal according to the ter
ms given in the contract. For example, you want to buy that snazzy looking 1998
Ferrari at your local dealer's clearance sale. Your dealer, Mr. X, offers to sel
l you that slick-looking Italian car if you pay him $97,000. After a bit of barg
aining, you agree to the terms and get the car at a reduced price of $96,995, si
gning on the dotted line. A contract has been accepted. Mr. X, your car dealer,
will deliver the 1997 Ferrari and then you pay him the balance due. The dealers
delivery of the car and your payment of $96,995 are the performance of the contr
act.
Offer of performance:
OfferPerformance is a marketing management company focused on providing innovati
ve and customized performance-driven marketing solutions.
We represent our merchant partners, building lasting relationships with affiliat
e networks and individual affiliates and creating the most profitable offers and
opportunities in the industry.We work closely with our partners to conceptualiz
e and develop campaign creatives, providing affiliates with reliable content tha
t's optimized for maximum performance online.
Onus of performance:
-A difficult or unpleasant task, duty, etc.; burden
-Responsibility for a wrong; blame
Compensation committees should add a key item to their summer agendas: reviewing
the structure of long-term incentive plans for senior executives.
That s the advice of Bruce Ellig, who worked at pharmaceutical giant Pfizer Inc. f
rom 1960 to 1996, spending the final 12 years as corporate vice president and he
ad of worldwide human resources.
Ellig and other executive-compensation experts say it s time for companies to revi
se the design of long-term incentives and peer groups used for comparisons.
Companies should base senior executives long-term bonuses on relative performance
goals comparing company performance to a predetermined peer group
instead of in
ternally setting goals such as revenue growth, Ellig said. The data is available
in the financial statements of the peer companies as long as they re publicly tra
ded, he said.
By tying it into competitor performance, you get away from executives designing t
heir own payout plans, said Ellig, author of the recently updated The Complete Gui
de to Executive Compensation. Let s take it out of the hands of the CEO or top manag
ement and let s go to the marketplace.
QUESTION 2: Elaborate the rights of surety.
ANSWER:
Rights against the creditor:
Creditor's rights are the procedural provisions designed to protect the ability
of creditors persons who are owed money to collect the money that they are owed. The
se provisions vary from one jurisdiction to another, and may include the ability
of a creditor to put a lien on a debtor's property, to effect a seizure and for

ced sale of the debtor's property, to effect a garnishment of the debtor's wages
, and to have certain purchases or gifts made by the debtor set aside as fraudul
ent conveyances. The rights of a particular creditor usually depend in part on t
he reason for which the debt is owed, and the terms of any writing memorializing
the debt.
Creditor's rights deal not only with the rights of creditors against the debtor,
but also with the rights of creditors against one another. Where multiple credi
tors claim a right to levy against a particular piece of property, or against th
e debtor's accounts in general, the rules governing creditor's rights determine
which creditor has the strongest right to any particular relief.
Rights against Creditor
Right to get Securities: If Surety makes payment to creditor, surety can get all
securities into his possession from creditor.
Right to ask for Set-off: Surety can give advice to creditor to sell away the se
curity and to utilize the amount thus realized for set off.
Rights of Sub-rogation: When ever surety makes payment to creditor, creditor for
egoes or looses all of his rights in his capacity as creditor and those rights w
ill be attained by surety.
Right to advice to Sue Principal Debtor: Surety has right to give advice to cred
itor to proceed legally against principal debtor for the purpose of recovering t
he amount.
Right to insist on Termination of Services: In case where guarantee is with rega
rd to conduct of an employee, surety can insist on termination of services of em
ployee. Here employees status is equal to that of creditor and employee s status i
s equal to that of principal debtor.

Rights against the principal debtor:

Rights against Principal Debtor
Right to give Notice: When ever creditor comes to surety, for the purpose of see
king payment, surety can give a notice to principal debtor to settle the debt.
Rights of Sub-rogation: Sub rogation is a process where rights will get shifted
from one person to the other. If surety makes payment to creditor, surety gets a
ll rights of creditor by sub-rogation and from then onwards surety can behave li
ke a creditor.
Right of Indemnity: Principal of indemnity operates between principal debtor and
surety where principal debtor becomes implied indemnifier and surety becomes im
plied indemnity holder. Therefore, surety can make principal debtor answerable f
or all sufferings.
Right to get Securities: In case where surety makes payment to creditor, surety
has right to get the securities given by principal debtor to creditor.
Right to ask for Relief: From the date of guarantee, besides creditor, surety al
so can bring pressure on principal debtor in connection with settlement of debt.
Rights against co-sureties:
Rights against Co-Sureties
Right to ask for Contribution: Surety can ask his co-sureties to contribute the
amount when principal debtor comes across default. If they have given guarantee
for equal amounts, they have to contribute equally. In case where guarantee is g
iven for in equal amounts, the mode of contribution differs from England law to
Indian law. As per England law contribution is to be made in the ratio of guaran
tee amounts. But as per Indian law the deficit amount is to be distributed to al
l sureties equally and every surety will contribute share of deficit or guarante
e amount which ever is less.
Right to claim Share in Securities: When co-Sureties make payment to creditor, t
hey get securities from creditors procession. Then every surety can claim his sh

are in those securities.

QUESTION 3: Discuss the termination of bailment.
ANSWER:
ExplainationThe term bailment is derived from the French bailor, "to deliver." It is general
ly considered to be a contractual relationship since the bailor and bailee, eith
er expressly or impliedly, bind themselves to act according to particular terms.
The bailee receives only control or possession of the property while the bailor
retains the ownership interests in it. During the specific period a bailment ex
ists, the bailee's interest in the property is superior to that of all others, i
ncluding the bailor, unless the bailee violates some term of the agreement. Once
the purpose for which the property has been delivered has been accomplished, th
e property will be returned to the bailor or otherwise disposed of pursuant to t
he bailor's directions.
A bailment is not the same as a sale, which is an intentional transfer of owners
hip of personal property in exchange for something of value. A bailment involves
only a transfer of possession or custody, not of ownership. A rental or lease o
f personal property might be a bailment, depending upon the agreement of the par
ties. A bailment is created when a parking garage attendant, the bailee, is give
n the keys to a motor vehicle by its owner, the bailor. The owner, in addition t
o renting the space, has transferred possession and control of the vehicle by re
linquishing its keys to the attendant. If the keys were not made available and t
he vehicle was locked, the arrangement would be strictly a rental or lease, sinc
e there was no transfer of possession.
A gratuitous loan and the delivery of property for repair or safekeeping are als
o typical situations in which a bailment is created.
Termination
A bailment is ended when its purpose has been achieved, when the parties agree t
hat it is terminated, or when the bailed property is destroyed. A bailment creat
ed for an indefinite period is terminable at will by either party, as long as th
e other party receives due notice of the intended termination. Once a bailment e
nds, the bailee must return the property to the bailor or possibly be liable for
conversion.
A contract of bailment shall terminate in the following circumstances:
1. On expiry of stipulated period: If the goods were given for a stipulated peri
od, the contract of bailment shall terminate after the expiry of such period.
2. On fulfillment of the purpose: If the goods were delivered for a specific pur
popse, a bailment shall terminate on the fulfillment of that purpose.
3. By Notice: (a) Where the bailee acts in a manner which is inconsistent with t
he terms of the bailment, the bailor can always terminate the contract of bailme
nt by giving a notice to the bailee.
(b) A gratuitous bailment can be terminated by the bailor at any time by giving
a notice to the bailee.
4. By death: A gratuitous bailment terminates upon the death of either the bailo
r or the bailee.
QUESTION 4: Explain the performance of a contract of sale of goods.
ANSWER:

ExplainationPerformance of a contract of sale implies a duty of the seller to deliver the go

ods, and of the buyer to accept the delivery of the goods and make payment in ac
cordance with the terms of the contract.
Delivery of Goods :
'Delivery' has been defined as voluntary transfer of possession of goods from on
e person to another.
How is Delivery Made?
Delivery of goods sold may be made by doing anything which the parties agree sha
ll be treated as delivery or which has the effect of putting the goods in the po
ssession of the buyer or of any person authorized by him (Sec. 33).
Mode of Delivery :
1. Actual delivery:
Actual delivery means physical transfer of goods by the seller to the buyer. The
delivery may be made by the agent of the seller to the agent of the buyer.
2. Symbolic delivery:
Where the goods are bulky, it is usual for the seller to give symbolic delivery.
For example, where the timber is lying in a warehouse, the delivery of key is r
egarded as symbolic delivery which has the effect of putting the buyer in posses
sion or actual control of the goods.
It should be noted that the key must give complete access to the goods. If for e
xample, the key of a room in which the goods are kept is given but the key of th
e main gate or door is not given, it is not regarded as a valid delivery
3. Constructive delivery:
In place of actual or symbolic delivery, the goods may be delivered without any
change in their actual or visible custody. For example, where the goods at the t
ime of sale are in possession of a third person and such third person acknowledg
es to the buyer that he holds the goods on his (buyer's) behalf, the delivery is
called constructive delivery.
Example:
A sells to B 100 bags of rice lying in C's warehouse. C acknowledges to B that h
e is holding these 100 bags on behalf of B. It is constructive delivery by A to
B.
Rules Regarding Delivery :
1. Delivery by whom and to whom
It is the duty of the seller to deliver the goods and of the buyer to accept and
pay for the goods delivered.
2. Delivery and payment are concurrent conditions (Sec. 32):
Unless otherwise agreed, delivery of goods and payment of price are concurrent c
onditions, i.e., at the same time or reciprocally.
The seller shall be ready and willing to deliver the goods and the buyer shall b
e ready and willing to pay the price in exchange for delivery of the goods.
3. Mode of delivery
This has been discussed in detail in earlier paragraphs. The delivery may be act
ual, symbolic or constructive. The parties may agree to any mode of delivery exp

ressly or impliedly.
4. Effect of part delivery
A delivery of part of the goods, in the process of the delivery of the whole, ha
s the same effect, for the purpose of passing the property in such goods, as a d
elivery of the whole. However, delivery of part of the goods, with an intention
of severing it from the whole, does not operate as a delivery of the remainder.
QUESTION 5: Discuss the law related to the prohibition of anti-competitive agree
ments.
ANSWER:
ExplainationCompetition law is a rapidly burgeoning subject and has grown enormously in rece
nt years, especially since the early 1990s. An increasing number of countries ha
ve undertaken economic reforms and embraced the market economy as a result of wh
ich competition law has been introduced in order to promote and maintain competi
tion. [1] Although there is some controversy as regards the objective of competi
tion law, there is broad agreement that the principal objective is to make the m
arket economy work better by stopping private power from obstructing markets. [2
] Competition law regulates market power in order to promote competition, thereb
y enhancing economic efficiency and increasing social welfare. The starting poin
t for an understanding of the rationale behind competition law is to understand
the microeconomic concept of market , the perceived benefits of market efficiency,
the role of competition and their causal inter-relationship. [3] Economic efficie
ncy refers to the optimal use and allocation of resources by markets, thereby max
imizing social welfare . The researcher has assigned a very specific meaning to the
term social welfare i.e. the combined effect of allocative and productive efficie
ncy maximizing society s wealth overall. A gain of $1 to either producers or consu
mers is treated equally. Competition law has a significant positive effect on ec
onomic welfare. For example, it deters anti-competitive conduct that may otherwi
se result in welfare losses to society. In this manner, competition law is clear
ly beneficial.
Agreements which cause or are likely to cause appreciable adverse effect on comp
etition are anti-competitive agreements. Horizontal agreements are those that ar
e between enterprises at the same stage of the production chain. For example, ag
reement between two rivals is a horizontal agreement. In cases of agreements bet
ween rivals for fixing prices or for limiting production or for sharing markets,
there is a presumption in the Act that such agreements cause appreciable advers
e effects on competition.
Cartel is a horizontal agreement between producers of goods or providers of serv
ices for price-fixing or sharing of market, and is generally regarded as the mos
t pernicious form of anti-competitive agreement. Vertical agreements are those t
hat are between enterprises at different stages of the production chain. For exa
mple, an agreement between the manufacturer and a distributor is a vertical agre
ement.
The presumptive rule does not apply to vertical agreements. The question whether
the vertical agreement is causing appreciable adverse effect on competition is
to be determined by rule of reason, which essentially means that the positive as
well as the negative impact of such agreement on competition will have to be ta
ken into account before coming to any conclusion.
The law recognizes intellectual property rights and in order to facilitate their
protection, it permits reasonable restrictions imposed by their owners. Since e
xports do not impact markets in India, agreement between exporters, in spite of
being horizontal, are exempted.

QUESTION 6: Explain the need and types of meetings.