Business Laws

Case Detail : Read the case study given below and answer the questions given at the end Case Study Aditya Mass Communication Private Limited Vs A.P. state Road Transport Corporation A.P. State Road Transport Corporation, Hyderabad advertised tender notice on calling for tenders for display of advertisements on the buses owned by it. According to the condition of the Tender Notice, each tender form had to be accompanied by a demand draft for Rs 20 lakhs and tender forms completed in all respects had to be put in the tender box. The accompanying sum of money was the Earnest Money Deposit (E.M.D). Clause (10) of the terms provided that the tender will be opened at 3:00 p.m. on October 31, 1996, in presence of the tenderers or their authorized agents. Clause (14) provided that tenderers will not be permitted to withdraw their tender after the tenders were opened .Clause (15) provided that if the highest tenderer backs out from taking up the agency , for whatsoever reason, the E.M.D. paid by him will be forfeited. Aditya mass Communication Private Limited submitted its duly filled tender along with demand draft of Rs. 20 lakhs. In relation to this tender, another person approached the High Court and got an order restraining the Transport Corporation from proceeding further with the tender. Following the order, the A.P. State Road Transport Corporation opened the tender box at 3 p.m. and found six sealed covers. In view of the directions of the High Court, the covers were again placed back in the tender box without opening the seals. The signature of the tenderers and their agents was taken to this effect .The tenders were not opened to find out the highest bidder. Aditya Mass Communication Private Limited wrote a letter on November 11, 1996 stating that no reasons were given to him for non-opening of the tenders and that he could not keep the huge amount of Rs 20 lakhs locked in with all the uncertainty associated with the tender. It, thus, requested for return of the Earnest Money Deposit. A.P. State Road Transport Corporation replied on November 14, 1996 that the Aditya Mass communication had signed on the note recording the proceedings of opening the tender box and putting back sealed covers. Thus, it could not put up the argument that no reasons for non-opening of the tender was given on it. The letter notified that the tenders would be opened on November 16, 1996 at 11:30 hrs. Aditya Mass Communication once again wrote a letter on November 15, 1996 that the question of their participation in the opening of tenders did not arise as they asked for the return of E.M.D. The A.P. State Road Transport Corporation went ahead with the opening of the tender, found Aditya Mass Communication to be the highest bidder and awarded the tender to it. Aditya Mass Communication was informed of this but it demanded refund of Earnest Money Deposit. The

A.P. State Road Transport Corporation following the terms of tender forfeited the earnest money deposit of Aditya Mass Communication.

1. Elaborately state the important legal issue/s covered under this case. 2. What are the essential features of a tender? 3. Give your reasons in support of your decision for the issue discussed in this case.

BITS #########Business Laws########## Annual general Meeting is required to be held--- (D) Options By a private company only By a public company only By a company limited by guarantee only By all kinds of companies -------------------------------------------------------An acceptance is complete and effective only when it has been--Options Communicated to the offerer Merely mentally accepted Externally manifested Kept in the drawer -------------------------------------------------------Name of a company can be changed by passing a special resolution and with the approval of-Options

The company law tribunal The Central Government The Registrar of Companies none of the above -------------------------------------------------------Which of the following is a mode of discharge of contract--Options By impossibility of performance By lapsse of time By breach of contract All of the above -------------------------------------------------------Limited liability means liability of its--Options Debtors is limited Creditors is limited Members is limited Debenture holders is limited -------------------------------------------------------In a contract of sale, property means--Options Raw Materials Movable goods Ownership

Immovable property -------------------------------------------------------The goods which are yet to be acquired by the seller, are called--Options Existing Goods Contingent Goods Unascertained goods Future goods -------------------------------------------------------A contract becomes voidable if it has been caused by--Options Coercion Fraud Undue Influence All of them -------------------------------------------------------If the goods have perished, the contract of sale of such specific goods, will become--Options voidable void illegal None of these -------------------------------------------------------Articles can be altered by---

Options Ordinary resolution Special Resolution Resolution requiring special notice Unanimous resolution

-------------------------------------------------------A contract entered into between the parties by words is called--Options An express contract An implied contract A quasi Contract An excited contract -------------------------------------------------------Acceptance of an offer is complete as against the offeror as soon as--Options The offerer knows about it The letter of acceptance is posted The letter f acceptance is signed by offeree The letter is handed over to a delivery person -------------------------------------------------------If a company fails to pay its debts suit can be filed against the--Options Directors

Members Officers Company -------------------------------------------------------A contract with a minor is--Options Illegal Valid Void Voidable -------------------------------------------------------Who is liable for the supply of necessaries to a minor--Options His guardian His Manager His property He himself -------------------------------------------------------16 A prospectus is issued--Options By a Private LImited Company By a Public Limited Company By a Company limited by Guarantee None of these

When, before the contract becomes due for performance, the promisor declares his intention of not performing his promise, it is called--Options Remission Waiver Alteration Anticipatory breach

A bailment cannot be made about--Options Car Furniture Money Television

The damages which arise in the usual course of things happening from the breach of contract, are called--Options Remote Damages Ordinary damages Special damages Nominal Damages