Saturday, June 2, 2012

what is destiny?


Good morning!

As we are going to talk at length, and at any rate you will have to endure me over the next many sessions, I will not further exacerbate the situation by launching a long winding harangue now. I would just touch upon one issue: silent resignation.

Now, it has almost become a fad to blame the fate- the destiny- for almost anything and everything.

What is destiny?             

I am not going to give my definition. I came across this somewhere and it is perhaps not attributed to any one: so anonymous. It goes like this:

Sow a thought and reap an action;
Sow an action and you’ll reap a habit;
Sow a habit and you’ll reap a character;
Sow a character and you’ll reap your destiny!



Capacity to contract


What is the capacity of the following to contract in India? How do they differ from each other in that respect:
    a) Foreign sovereigns
    b) Accredited representatives of a foreign state
    c) Diplomatic staff of foreign state?

All the above persons enjoy diplomatic immunity and hence can not be persecuted in Indian courts, in normal circumstances. But please remember they do not suffer from any incapacity- as such; so, if they enter, as per their free will, into a contract in India that would be enforceable. The question is where? They can certainly be tried at an international court but that would put the other party into undue disadvantage. Hence, it is advisable to put a clause, in the contract, where it is explicitly mentioned that the disputes arising, on the basis of the contract, would be tried in an Indian court. If the person accepts such a clause - as per her free will- then subsequently she can not invoke her diplomatic immunity and seek trial elsewhere. 

Void ab initio agreements/ contracts (?)

Void ab initio agreements and void agreements are the same thing?

Yes, if the void agreement in question had not resulted in a valid contract before becoming void. For, a valid contract also can subsequently become void; in that case the underlying agreement is different from an agreement which can not create a valid contract.

Contract with a minor

Is there a Difference in forming a partnership with a minor and admission of a minor for benefits in a partnership?

Yes. 

Partnership with a minor will not create a valid contract. As mentioned in section 11 - of the contract Act 1872- a minor is not competent to enter in to a contract. However when a minor is admitted into benefits, those rights can be upheld. A minor can not be sued based on void agreements but the minor can sue, through her guardians, for upholding her rights. Please also remember, though the minor can not create a valid contract, her guardian can create the same on her behalf. A guardian can enter into a contract on behalf of his charge, where the contract is beneficial to the minor and which is within his – the guardian’s- competence.

Difference between Tacit Contracts and Implied Contracts:

Dictionary meaning of 'tacit' is: Implied by or inferred from actions or statements; so both are same. 


If we really try to dig dipper then 'tacit' also could mean something which is not spoken but understood from non-verbal communication. Non-verbal communication includes, winking, sighs, tone and pitch and silence. 

Eg: She indicated her tacit approval by smiling and winking.

In this extended sense, sometimes an implied contract could involve express verbal communication, however no such express communication is required in most cases of a tacit contract. 

in the above, the verbal communication, which is refereed to, is not happening between the offerer and offeree; but is happening between one of these and a third party:

For example: 
while The conductor of a bus is telling X- a general inquirer- that the fare is Rs 10 to Railway station, Y- an intending passenger- hears this and  boards the bus to the same destination. Here though there is no direct offer by the conductor to this particular passenger yet from what he overheard he can take that as an implied offer and when he boards the bus there is an implied acceptance from him. So this would be a case of an implied contract.

As we do not see any subtlety in boarding a bus we may not classify this as a tacit contract. 

To avoid misunderstanding:
As per section 9 of Indian Contract Act- 1872: 

Promises, express and implied are defined as following:
In so far as the proposal or acceptance of any promise is made in words, the promise is said to be express. In so far as such proposal or acceptance is made otherwise than in words, the promise is said to be implied.

So, where the offer or acceptance is not made in words- written or verbal- it is a case of implied promise. By extension, existence of an implied promise would give rise to an implied contract. 

Now if we consider Implied contracts to be a set then tacit contracts would be a subset within this set. So essentially tacit contracts would also be implied contracts. 

The subtlety in the offer or the acceptance would make it a tacit contract.

The word 'Tacit' finds no mention anywhere in the Act (Indian Contract Act- 1872).

Here's an objective example of the importance of appropriate drafting of contracts:

Dr Das is a reputed consultant who facilitates Hospitals getting NABH- National Accreditation Board for Hospitals- certificates, which helps them optimize their revenue. As this indicates quality now government hospitals are also interested to get these certifications.

While accepting such assignments Dr Das gets a standardized agreement signed. Here’s one of the clauses of such an agreement.

"The contract is valid for a year or till the certificate is received (whichever is earlier)."

Missing out the clause in the parentheses (brackets), while accepting a contract from the state government cost very heavily to Dr XYZ Das.

The state government people were innocent of any firm timeline. But due to the open-endedness of the contractual terms Dr Das was bound to provide them services, while the inordinate delays were entirely attributable to the inefficiency and gross callousness of Government officials, for ages and the fees was fixed.

(This Draft would be further populated with similar real life examples to be of benefit to professionals practicing the trade of Drafting etc.)

 

Tuesday, May 29, 2012

Welcome to this blog!

Hi :)

This Blog has been created to help new entrants to CA course, where they have to take CPT- Common Proficiency Test.

After a break the direct entry scheme has been re-introduced. Yet, going by the statistics, a good number of entrants would still continue to come through this channel. Now people are restive and can't wait for 3 long years to complete a degree and then join; especially when they can finish the course by that time.

This is the age of transience- shortened life cycles- and hence people who have access would always like to have early shots.

Why this Blog?
I scanned the net and found a vacuum (and even after almost 3 years - in Dec 2013- the vacuum still continues to exist) when it comes to dishing out on-line real help for young adults who join this wonderful profession- CA. Agreed ICAI does support big way but other than that there is not much.

I felt i should chip in and the result is this Blog. I am also egging a couple of my other academically inclined people to chip in and together we'd make a difference!

Welcome & please make your presence felt!
Our intention is to help students excel by harnessing the beneficial potential of the net. So welcome guys; I sincerely hope you'll have a good time!