three I's of legal framework institution, instrument(act & rules), individual(

WE, THE PEOPLE OF INDIA, having solemnly resolved to constitute India into a SOVEREIGN SOCIALIST
SECULAR DEMOCRATIC REPUBLIC and to secure to all its citizens:
JUSTICE, social, economic and political;
LIBERTY, of thought, expression, belief, faith and worship:
EQUALITY, of status and opportunity and to promote among them all;
FRATERNITY assuring the dignity of the individual and the unity and integrity of the Nation;

IPR
Section 3
What are not inventions
The following are not. inventions within the meaning of this
Act,
(a) an invention which is frivolous or which claims anything
obviously contrary to well established natural laws;
(b) an invention the primary or intended use or commercial
exploitation of which could be contrary to public order or
morality or which causes serious prejudice to human, animal
or plant life or health or to the environment;
(c) the mere discovery of a scientific principle or the
formulation of an abstract theory or discovery of any living
thing or non-living substance occurring in nature;
(d) the mere discovery of a new form of a known substance
which does not result in the enhancement of the known
efficacy of that substance or the mere discovery of any new
property or new use for a known substance or of the mere use
of a known process, machine or apparatus unless such known
process results in a new product or employs at least one new
reactant.
Explanation.For the purposes of this clause, salts, esters,
ethers, polymorphs, metabolites, pure form, particle size,
isomers, mixtures of isomers, complexes, combinations and
other derivatives of known substance shall be considered to
be the same substance, unless they differ significantly in
properties with regard to efficacy;

(e) a substance obtained by a mere admixture resulting only

in the aggregation of the properties of the components thereof
or a process for producing such substance;
(f) the mere arrangement or re-arrangement or duplication of
known devices each functioning independently of one another
in a known way;
(g)..(omitted)
(h) a method of agriculture or horticulture;
(i) any process for the medicinal, surgical, curative,
prophylactic diagnostic, therapeutic or other treatment of
human beings or any process for a similar treatment of
animals to render them free of disease or to increase their
economic value or that of their products.
(j) plants and animals in whole or any part thereof other than
micro organisms but including seeds, varieties and species
and essentially biological processes for production or
propagation of plants and animals;
(k) a mathematical or business method or a computer
programme per se or algorithms;
(l) a literary, dramatic, musical or artistic work or any other
aesthetic creation whatsoever including cinematographic
works and television productions;
(m) a mere scheme or rule or method of performing mental
act or method of playing game;
(n) a presentation of information;
(o) topography of integrated circuits;
(p) an invention which in effect, is traditional knowledge or
which is an aggregation or duplication of known properties of
traditionally known component or components.
Section 4 : Invention relating to atomic energy are not
patentable.

Patent

 A Patent is a statutory right for an invention granted for a limited

period of time to the patentee by the Government, in exchange of
full disclosure of his invention for excluding others, from making,
using, selling, importing the patented product or process for
producing that product for those purposes without his consent.
Patent protection is territorial right and therefore it is effective only within
the territory of India. However, filing an application in India enables the
applicant to file a corresponding application for same invention in
convention countries, within or before expiry of twelve months from the
filing date in India. Therefore, separate patents should be obtained in each
country where the applicant requires protection of his invention in those
countries. There is no patent valid worldwide
An invention to become patentable subject matter must meet the
following criteria i) It should be novel.
ii) It should have inventive step or it must be non-obvious
iii) It should be capable of Industrial application.
iv) It should not fall within the provisions of section 3 and 4 of the
Patents Act 1970.
Term of every patent in India is 20 years from the date of filing of patent
application, irrespective of whether it is filed with provisional or complete
specification. However, in case of applications filed under PCT the term of
20 years begins from International filing date.
Industrial design
Design means only the features of shape, configuration, pattern or
ornament or composition of lines or colour or combination thereof
applied to any article whether two dimensional or three dimensional
or in both forms, by any industrial process or means, whether
manual, mechanical or chemical, separate or combined, which in
the finished article appeal to and are judged solely by the eye, but
does not include any mode or principle or construction or any thing
which is in substance a mere mechanical device,
and does not include any trade mark, as define in clause (v) of subsection of Section 2 of the Trade and Merchandise Marks Act, 1958,
property mark or artistic works as defined under Section 2(c) of the
Copyright Act, 1957

 Object of the Designs Act is to protect new or original designs so

created to be applied or applicable to particular article to be
manufactured by Industrial Process or means.
Sometimes purchase of articles for use is influenced not only by
their practical efficiency but also by their appearance.
The important purpose of design Registration is to see that the artisan,
creator, originator of a design having aesthetic look is not deprived of his
bonafide reward by others applying it to their goods
) The design should be new or original, not previously published or used in
any country before the date of application for registration.
The design should be applied or applicable to any

article by any

industrial process. Normally, designs of artistic nature like painting,

sculptures and the like which are not produced in bulk by any industrial
process are excluded from registration under the Act
Trademark
A trade mark (popularly known as brand name) in laymans language is a
visual symbol which may be a word signature, name, device, label,
numerals or combination of colours used by one undertaking on goods or
services or other articles of commerce to distinguish it from other similar
goods or services originating from a different undertaking
Under modern business condition a trade mark performs four
functions
It identifies the goods / or services and its origin.
It guarantees its unchanged quality
It advertises the goods/services
It creates an image for the goods/ services.
Geographical indicator
It is used to identify agricultural, natural or manufactured goods, in that
territory and It should have a special quality or reputation or other
characteristics

It confers legal protection to Geographical indications in India

Prevents unauthorised use of a Registered Geographical Indication

by others

It provides legal protection to Indian Geographical Indications

which in turn boost exports.

It promotes economic prosperity of producers of goods produced

in a geographical territory.

Copy right( 60 years) - performers right (25 yrs) broadcasters right

(25 yrs)
Copyright is a right given by the law to creators of literary,
dramatic, musical and artistic works and producers of
cinematograph films and sound recordings. In fact, it is a bundle
of rights including, inter alia, rights of reproduction,
communication to the public, adaptation and translation of the
work
Creativity being the keystone of progress, no civilized
society can afford to ignore the basic requirement of
encouraging the same.
Economic and social development of a society is dependent on
creativity
Doctrine of fair use
for the purpose of research or private study,
for criticism or review,
for reporting current events,
in connection with judicial proceeding,
performance by an amateur club or society if the
performance is given to a non-paying audience, and
the making of sound recordings of literary, dramatic or
musical works under certain conditions.

Contract act 1872

Section 2(h) defines a contract as an agreement enforceable by
law
Thus to make a contract there must be

 (i) an agreement
(ii) the agreement should be enforceable by law.
Section 10: What agreements are contracts
All agreements are contracts if they are made by the free consent
of parties competent to contract, for a lawful consideration and
with a lawful object, and are not here by expressly declared to be
void.
There should be a valid agreement for which there should always be
a offer and acceptance. Intention to create legal relationship
competent to contract
A valid Consideration
Consent of the parties should be free
Lawful objects
Not expressly declared to be void
Privity of Contract. As a contract is entered into by two or more
persons thereby creating rights and obligations for them, it is a
party to the contract only who can enforce his rights as against the
other party (i.e., the promisor). The basic principle underlying law of
contracts is that a stranger to a contract cannot maintain a suit for
a remedy. The law entitles only those who are parties to the contract
to file suits for exercising their rights. This is known as privity of
contract.
Dunlop Pneumatic Tyre Co. Vs Slefridge & Co
Dew & Co
Example. A is indebted to B. A sells certain goods to C.C gives a
promise to A to pay off As debt to B. In case C fails to pay, B has no
right to sue C, being a stranger to the contract between C and A. In
other words C is not in privity with B. However, C is in privity with A.

Proposal/offer
Section 2(a) When one person signifies to another his
willingness to do or to abstain from doing anything, with a view

to obtaining the assent of that other to such act or abstinence, he

is said to make a proposal
Offer must either be expressed or implied
Upton Rural District Council V Powell
Offer must intend to create a legal relationship
Balfour V Balfour
Mc Gregor V Mc Gregor
Offer must be certain and not vague in meaning
Offer may be specific or general
Carlill V. Carbolic Smoke Ball Company
Offer must be communicated
Lalman Shukla V Gauri Dutt
Offer must be distinguished from invitation to offer
An offer is definite. it is an intention towards a contract. invitation to
contract is an act precedent to making an offer. it is done generally
to induce and negotiate. there is no expression of willingness by
offeror to be bound by his offer.
An offer should not force an action on the offeree

General offer
Specific offer
cross offer
counter offer
Essentials of a valid Acceptance
Acceptance should be given by a proper person i.e. to whom the
offer was made.
Within proper time even if no specific time has been mentioned.
Must be communicated. Mental acceptance is no acceptance.

 It can either be expressed or implied.

Acceptance must succeed the offer.
Offer once rejected cannot be accepted
Capacity to Contract [Ss.10-12]
Persons who are Competent to Contract. Any one cannot enter
into a contract; he must be competent to contract according to the
law. Every person is competent to contract if he (i) is of the age of
majority, (ii) is of sound mind(capable of understanding & making
rational decision), and (iii) is not disqualified from contracting by
any law to which he is subject (s.11).
Capacity of a Minor to Enter into a Contract. The contract law
defines maturity as the age of majority. That usually is 18 years.
Does this mean that a minor is not competent to contract? No, a
minor may make a contract, but he is not bound by the contract;
however the minor can make the other party bound by the contract.
contract entered by minor are void ab initio. rule of estoppel does
not apply to minor(rule of estoppel : statement once made cannot
be taken back). Rule of necessity applies( food,clothing,shelther,
education). ratification not allowed, enter new contract. (mohiri
biwi vs damodar ghosh)
A minors parents/guardians are not liable to his creditors for the
breach of a contract by him whether the contract is for necessaries
of life or not.
Section 14 : Free consent. For a contract to be valid it is not only
necessary that the parties consent but also that they consent freely.
Where there is a consent but no free consent the contract is

voidable at the option of the party whose consent was not free.
Thus, free consent is one of the essentials of a valid contract. A
consent is said to be free when it is not caused by: (i) coercion Sec
15, (ii) undue influence Sec 16, (iii) fraud Sec17,
(iv) misrepresentation Sec 18 or (v) mistake.Sec 20,21
Meaning of Coercion (Ss. 15 and 72). Coercion is (i) the
committing or threatening to commit any act forbidden by the
Indian Penal Code or (ii) the unlawful detaining.
Meaning of Undue Influence (s.16). Undue influence consists in
the improper exercise of power over the mind of one of the
contracting parties by the other.

Meaning of Misrepresentation (Ss.18-19). Misrepresentation is

also known as simple misrepresentation whereas fraud is known as
fraudulent misrepresentation.
Meaning of Mistake [Ss.20-21]. Mistake may be defined as an
erroneous belief on the part of the parties to the contract
concerning something pertaining to the contract.
Meaning and Effect of Unilateral Mistake. There is a unilateral
mistake where only one party to a contract is under a mistake as to
a matter of fact.
Mistake of Law. It may be (i) mistake of law of the land, or (ii)
mistake of foreign law(could be a mistake of fact). In the first case
the rule is Ignorantia juris non-excusat
Sec 2(d) of Indian Contract Act 1872, defines consideration as
When at the desire of the promisor, the promisee or any other
person has done or abstained from doing, or does or abstains from
doing, or promises to do or promises to abstain from doing
something, such act or abstinence or promise is called consideration
for the promise.
Rules Regarding Consideration(Sec 10,25)
Sec 25 : agreement without consideration is void
1. Consideration must move at the desire of the promisor
2. Consideration may move either from the promisee or any other
person
3. Consideration need not be adequate
4. Consideration must be real and competent
5. Consideration must be legal
6. A consideration may be present, past or future
Exceptions to rule
Agreements made on account of natural love and affection(It is
registered under the law. If is between parties standing in near
relation to each other)
Compensation for past voluntary services

Promise to pay time barred debt if it is in written(signed by debtor/

agent)
Gifts made under Transfer of Property Act
Contracts of Agency
Contract of Gurantee as per section 127 of ICA, 1872
Eg. B requests A to sell and deliver to him goods on credit. A agrees
to do so, provided C will guarantee the payment of the price of the
goods. C promises to guarantee the payment in consideration of As
promise to deliver the goods. This is a sufficient consideration for
Cs promise.
Unlawful Consideration And Object [Ss.23-24]
There are certain cases in which the consideration and the object of
an agreement are unlawful, thereby making it unenforceable.
Section 23 defines an illegal agreement as one the consideration or
object of which
(i)

is forbidden by law; or

(ii)

defeats the provisions of any law; or

(iii)

is fraudulent; or

(iv)

involves or implies injury to the person or property of another; or

(v)

the court regards it as immoral or opposed to public policy.

Agreements Declared Void [Ss.26-30]
The Act declares certain agreements to be void. Some of them (such
as the following) have already been explained: (i) agreements
entered into through a mutual mistake of fact between the parties
(s.20); (ii) agreements, the object or consideration of which is
unlawful (s.23); (iii) agreements, part of consideration of which is
unlawful (s.24); (iv) agreements made without consideration (s.25).
Some other agreements which are declared to be void are
below.
Agreements Against Public Policy (Ss.26-28).

Agreement in Restraint of Trade. Section 27

restraing from exercising lawful profession ,trade or business of any

kind is to that extent void.
Restraint of Legal Proceedings (s.28)
Uncertain or Ambiguous Agreements (s.29) Eg. supply of 100 litre
oil
Wagering Agreements (s.30)
its an event wen one party agrees to pay certain sum of money at
the determination of an event. one party wins and other loses and
both of them do not have any legitimate interest in it. If they have
control over the event than the agreemeent is valid.
Discharge of contract
By performance(actual or attempted)
in attempted performance, promisor performs his part of the
contract but the promisee refuses to accept his part. this is known
as tender( Unconditional, Made at a proper time and place, Must be
for the entire obligation under the contract, Must be made by a
proper person or his agent,Legal tender money (Exception to the
rule))
By Mutual Agreement(Section 62)
Novation, recession(Brings old to an end and not substitute by new
one), alteration(significant changes) and remission( delay or extend
the time). in all this cases old contract need not be performed.
By Lapse of Time : Time barred debt
By Operation of law : where promisor dies or becomes insolvent,
merger, unauthorised alteration
By Supervening Impossibility : unforeseen change in law,
personal incapacity of promisor, declaration of war.(physical- ship is
lost in storm, practical-become lunatic, legal- sale of liqour
agreement declared illegal by governement)
By committing a breach of Contract : If the promissory has not
performed his promise in accordance with the terms of the contract
or where the performance is not excused by tender, mutual consent
or impossibility or but operation of law, then it amounts to a breach
of contract

Anticipatory breach : wen the promisor refuses to perform his

promise even before the stipulated time and signifies his
unwillingness. the promisee could wait till the end of the time or
could end the contract now.(frost vs knight : sale of wheat @ 100)
Actual breach
Remidies for breach of contract
Suit for Rescission
A person who rightfully rescinds a contract is entitled to compensate
for any damages which he has sustained through non fulfillment of
the contract.
Suit for Injunction
Injunction is an order or decree passed by the court asking a person
to refrain from doing a contemplated act pr from continuing with the
ongoing act( playing guitar exclusively in my hotel)
Suit for specific performance
It is a remedy granted by courts in equity asking the parties to do
exactly what had been intended in the contract
Suit for Quantum Meruit
To claim as much earned. Where the party has done part of the work
under the contract broken by the other party
Suit for damages
Compensatory damages- loss caused money to be reimbursed
consequential and incidental damages: money for losses caused by
the breach that were foreseeable. penalties clause
Foreseeable damages means that each side reasonably knew that,
at the time of the contract, there would be potential losses if there
was a breach.
Attorney fees and cost
) Liquidated Damages - these are damages specified in the contract
that would be payable if there is a fraud.