Section A.docx - Section A 1 What is agreement An agreement...

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Section A 1. What is agreement? An agreement is an unenforceable agreement which implies to bind two parties to negotiate and enter a contract, which is a proposed agreement negotiated with the intent that the final agreement will be embodied in a formal written document and that neither party will be bound until the final agreement is executed. An agreement to agree can also be a fully enforceable agreement containing sufficiently definite terms and adequate consideration, however leaving certain details to be worked out by the parties. Even though the parties expect to reach on an agreement regarding the missing terms, what they expect to happen on their failure to reach an agreement is often unclear. If they understand that there will be a contract with the missing term supplied as a matter of law, a question arises whether the agreement is one with open terms sufficiently definite to be enforceable. 2. List the types of negotiable instrument. 3. Mention the characteristics of a company. Following are the Characteristics of a Company Incorporated association: A company must necessarily be incorporated or registered under the prevalent Companies Act. Registration creates a joint stock company and it is compulsory for all associations or partnerships, having a membership of more than ten in banking and more than twenty in any other trading activity, formed for carrying on a business with the object of earning profits. Artificial legal person A company is an artificial legal person in. he senses that on the one hand, it is created by a process other than natural birth and does not possess the physical attributes of a natural person, and on the other hand, it is clothed with many of the rights of a natural person. It is invisible, intangible immortal (law alone can dissolve it) and exists only in the eyes or law. It has no body, no soul, no conscience, neither it is subject to the imbecilities of the body. It is because of these physical disabilities that a company is called an artificial person. But it cannot be treated as a fictitious entity because it exists. As a rule, a company may acquire and dispose of property, it may enter contracts through the agency of natural persons, may be fined for the contravention of the provisions of the Companies Act. Thus, for most legal purposes a company is a. legal person just like a natural person, who has rights and duties at law. In short, it may be said, therefore, that a company being an artificial legal person can do everything like a natural person, except of course that, it cannot take oath, cannot appears in its own person in the court (must be represented by counsel), cannot be sent to jail, cannot practice a learned profession like law or medicine, nor can it marry or divorce.
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Independent legal entity: A company is a legal person having a juristic personality entirely distinct from and independent of the individual persons who are for the time being its members. It has the right to own and transfer the title to property in any way it likes. No member can either individually or jointly
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