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Skills That Will Make You Stand Out As A Cyber Lawyer

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cyber lawyer

Recently a friend dealing in cryptocurrency, was trying to get me started on smart contracts and cryptocurrencies in India. His argument to me was to get on the ground floor of a niche field. Soon enough I landed on the hotly debated topic of cyber laws in India – cryptocurrency regulations.

The Reserve Bank of India (RBI) circular banning banks from extending banking solutions to cryptocurrency entities came into effect from July 5, 2018. The Supreme Court of India has denied an interim stay on the RBI circular. This has led to most cryptocurrency exchanges operating in India to launch crypto-to-crypto trading services.

In my research, I came across a TEDx Talk of the cyber law expert, Advocate Pavan Duggal. Here he talks about the future of cyberspace and cyber laws. He talks about the challenges of jurisdiction, data protection, privacy issues, etc. He emphasises on the need for an international convention or treaty on cyber laws in today’s times.

According to cyber law expert Adv. Puneet Bhasin, the role of cyber law is extensive. She states in an interview, “…A cyber lawyer is a techno-legal lawyer who is well-versed with technical aspects of computers, computer networks, communication devices and has complete legal knowledge including the special laws and rules applicable in techno-legal matters. Most evidence in criminal cases is obtained from cell phones or computers, and a cyber lawyer is the only one who can help in proper appreciation of such evidence or to find loopholes to make such evidence inadmissible.”

She emphasises that with the advent of technology, laws related to  e-commerce, e-contracts and digital signatures, intellectual property rights, cyber security, etc. have all become relevant for a cyber lawyer.

So as a lawyer, I started thinking about this upcoming field looking for outstanding experts. What skills do cyber lawyers need? What challenges will they need to overcome? What are the areas of laws they need to be well-versed with?

After reading more about cyber laws and the opinions of the experts, I realise an outstanding cyber lawyer needs the following skills to find their niche:

# Knowledge of law

The cyber laws exist between few nations through convention or bilateral treaties or each country has their own set of laws governing the same. The Convention on Cybercrime, also known as the ‘Budapest Convention on Cybercrime’ or the Budapest Convention, is the first international treaty seeking to address Internet and computer crime by harmonizing national laws, improving investigative techniques, and increasing cooperation among nations. As of April 2018, 57 states have ratified the convention, while a further four states had signed the convention but not ratified it. India is not a party to the convention yet.

But India has its own laws and policies like the Information Technology Act, Indian Penal Code, Indian Evidence Act, National Cyber Security Policy, 2013, etc. to ensure a secure and resilient cyberspace for citizens, businesses and the government.

A cyber lawyer needs to have astute knowledge of the applicable laws in order to apply them as necessary. For instance in case of assisting the law agencies, a cyber lawyer has to keep in mind the jurisdiction, the handling of evidence, collection of data from the computer and mobile devices, etc. The entire case can be made admissible or inadmissible on these issues by any competent cyber lawyer. Therefore, a cyber lawyer must be well-adept in the relevant laws.

# Knowledge of technology

Any lawyer must understand the subject matter of the dispute to be effective at the job. A  cyber lawyer needs to know technology well enough to be able to anticipate the potential risks and safeguard against them. They need to have working knowledge of the latest technology like block-chain, cryptocurrency, cyber security, etc. They also need to be familiar with the devices, their operating systems, coding, etc.

An outstanding cyber lawyer needs to understand the dealings and activities in the internet as well as say, the dark net for instance. The dark web is basically to avoid monitoring by state and non-state players. There are separate browser like the Tor browser which allows anonymity. The Tor software protects you by bouncing your communications around a distributed network of relays run by volunteers all around the world. It is used for both legitimate and criminal purposes.

This poses a unique challenge for a cyber expert who might need to prosecute an anonymous criminal. The question also arises if the details of such criminal is obtained by ethical hacking or other means, does it violate the privacy rights of the criminal? Where will the criminal be prosecuted jurisdiction wise? In case the crime is committed outside India, the laws of which country will prevail?

Therefore, a cyber lawyer must be aware of the technological as well as the legal challenges in such situation.

# Contract drafting

Cyber expert Pavan Duggal mentioned about cyberspace and said it has four essential aspects to it: Smart, Mobile, Analytics and Cloud. He mentioned that in India about 67% people are connected to the internet through their phones. It brings forth the regulatory challenges pertaining to mobile phones.

Then there is cloud computing. The makers of cloud computing claim that is secure. But what if there is a breach in stored data or if some data is made inaccessible?  The cloud computing contracts are in fine print and as we know users generally don’t read the fine print carefully. So what happens in case there’s breach, is the intermediary liable? Read your cloud contract and you’ll know that usually intermediaries have mitigated any responsibility in the contract by some clause or the other. You can learn more about technology contract and cyber law courses to gain some clarity on the concept.

There are smart contracts which are a computer protocol intended to digitally facilitate, verify, or enforce the negotiation or performance of a contract. Smart contracts allow the performance of credible, trackable, irreversible  transactions without third parties involvement.

So an outstanding cyber lawyer not only needs to know about regular contract drafting, they must be experts in the various technology contracts like: Software License and Assignment Agreements, IT Services Agreements, Cloud Services Agreement, Content Licensing Agreements, terms and conditions for platforms, e-commerce vendor agreements etc. They need to be able to understand the client’s requirements and be able to get them the best deal in negotiation.

# Critical Thinking

All lawyers need to develop critical thinking in their field of work. A cyber lawyer needs to think beyond as they are dealing with ever-evolving technologies. The laws can barely keep up with the changing technology and the challenges that come with them. By the time laws catch up with the technology, newer issues may have cropped up.

So an outstanding lawyer must keep themselves updated not only about the laws, but technology as well. They need to practice the art of questioning outside the norms of the present scenarios. For instance, in the era of internet of things when there are smart electronics like refrigerators, televisions, phones, computers, etc., there are newer challenges.

Cyber expert Pavan Duggal posed his the audience with this question: Who is liable if your smart refrigerator places an order to the grocery store and your account is being charged for it? Is it the manufacturer or the intermediary facilitating the technology or the buyer? Such intricate questions need to be pondered upon by the cyber law experts because they can only anticipate the potential risks and manage them.

By 2020, there will be around 20 billion devices connected to the internet. Imagine the possible cyber threats and vulnerabilities! It will be difficult for any one nation to contain the threats as the internet makes it possible for people to be active from anywhere in the globe. The laws are developing in mobile laws, drone technology, artificial intelligence and more. These are the things developing now and the laws are still unable to contain them completely. Imagine the technology of the future! Therefore there needs to be a set of global laws governing the cyberspace, where at least the common principles of the various cyber laws can be ratified.

There are lawyers doing cyber laws course, or gaining practical experience in order to become outstanding cyber lawyers. I urge you to keep updating your technology and legal knowledge while developing your critical thinking skills.

Good luck!

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5 Skills Companies Look For In Their In-House Lawyers

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In-house Lawyers

This article is written by Mohona Thakur from Team iPleaders.

 

Here’s a little something I’d like all of you to know. For most part of my law school years, I interned with the in-house legal teams of companies. 5 out of 8 internships that I did in the half a decade I spent in law school were in house, in the hope that someone would notice my work and willingness to work in house and hand me a job offer!

What initially started as an experiment to figure out what do lawyers in companies do, over the internships culminated into what I wanted to do after law school, and for good reason. Every internship taught me something different, and when I look back I realise I acquired a new skill-set in every internship that in-house lawyers are expected to possess.

For those of you curious or interested to find out what is the kind of work that you are required to do as an in house counsel, or apprehensive about what work would be handed to an intern in a legal company, you would want to proceed and read this article. I’m sure my experiences won’t disappoint you.

Here are the five skills I acquired at the five internships I did with the in-house legal teams of companies:

 

  • Contract Drafting and Reviewing

 

To be absolutely honest with you, while I was interning with the legal team at L&T, I was completely clueless about what was expected of me to do. Apart from the quick research that was given to me, I used to spend maximum amount of time in a day reviewing and drafting contracts. These ranged all the way from software licensing agreements, to employment agreements to subscription enterprise agreements to master service agreements.

Barely having studied Law of Contracts I in law school, I was given the task of reviewing 300 page contracts to figure out if the boilerplate clauses were a potential hazard to the business. Back then, I didn’t even know what boilerplate clauses meant, let alone figure out how they would be a conflict with the business. Law schools didn’t teach us these kind of things. What they taught us were Balfour v. Balfour, which was almost never required at the time of contract drafting or reviewing!

Till date law schools have professors with almost negligible practical knowledge teaching us the law of contracts. While they may do a pretty good job at the clearing the basic concepts and making us understand the most important case laws from 1919, what they cannot do is teach us how to draft a contract! Which is why we now see online courses on contract drafting that teach us exactly how to do draft, review a contract through live webinars, industry experts, guidance and feedback sessions!

By the end of this internship, I knew how to review contracts and understand the good and the bad of how a contract could possibly affect a business.

 

  • Research

 

When I look back, a month at HT Media is probably one of those defining months of my career as a lawyer. I was quite lucky to have an extremely demanding reporting manager, who was very specific with the research work he gave me. As a second year student, he didn’t expect much of me. In fact, you’d face this everywhere you go – no one takes the first-second year law students at internships seriously.

He began with what he called an easy topic and asked me to take as much time as I needed to come up with a thoroughly researched article, with relevant case laws. Wondering what the research was on? I was asked to figure out if the company could use the national flag of India in an advertisement to be printed in Malaysia. Eventually, the topics became difficult. In the one month I spent there, I had researched on a variety of things ranging from the jurisdiction to file cases under the negotiable instruments act, to the intersection between copyright laws and competition laws, to defamation laws.

While researching came naturally to me, this internship taught me to research on very specific needs of the company. I learnt how to ask questions when stuck, and most importantly to ask the right questions. As in-house counsels, we would be expected to be jack of all trades, but we won’t be expected to know all the laws under the roof. However, we would be expected to figure them out and deliver at the times of need.

If you’re eyeing an in house role, you better be prepared to research on anything under the sun. It would be handy if you had prior knowledge of business or commercial laws. The business law courses available online are a good option to go with if your schedule doesn’t permit you enough time to do a full-time course!

 

  • You Work For The Team First, Then For Yourself

 

I believe HUL was the most serene experience. I was here for two months and had a variety of work to do, but what I genuinely took back from this experience was that team work does wonders.

Amongst the many projects that I was working on from Day 0, creating a due-diligence report for all factories, live as well as defunct, in order to ensure that the properties are marketable was one of my major tasks. This involved liaising with various branch teams across the country and ensuring that all agreements were available to be vetted, then vetted, and then all plausible future actions taken to ensure that the properties were marketable!

A four member team, inclusive of me, were working on this project for a month to ensure that not only did we complete the project, but ensure that we do it to the best of our ability. Most of us stayed back at work post work hours to review property agreements, coordinate with branch offices, government offices for mutation documents and collate all documents of probably a hundred factories.

Had it not been for team work, we wouldn’t have been able to complete the work, let alone complete it on time. When you put the work, the team before you, you end up doing a lot more than you could expect to. And companies look at this as an enviable quality. Would you put the team before yourself?

 

  • Domain & Industry Knowledge

 

Whether it was HT Media or HUL, by the end of the internship, I could name all the brands under their umbrella, what category they belonged to and what could possibly be the laws that governed those categories. This is expected of you.

In fact, this was one of the questions asked to me during an interview with a reputed production house a couple of years ago. They wanted to assess my knowledge of the company and their brands. The follow up question to such questions, in undoubtedly and generally quite simple: what laws do you think govern this industry?

Therefore, if you’re ever sitting for an interview for an in-house role, go thoroughly prepared. Don’t just know the brands, know the history of the company, whether it’s public or private, the latest news pertaining to that company or the industry in general and of course, the latest development in any law that possibly governs or affects that industry.

Trust me, if you know the industry and possibly show the knowledge in the interview right, you’ve probably won half the battle. The only question is how do you gain industry knowledge as an outsider. Will news articles suffice? No. You need to be a step ahead and know how the industry functions. For instance, a media house presently in the process of transitioning business focus from cable networks to digital platforms would expect you to know of intermediary liabilities, software agreements, privacy policies and terms and conditions put up on such websites.

Yes, it sounds like a mammoth of a task, however, if you google for help, you’d find courses on media and entertainment laws, cyber law courses that can help you work your way through it.

 

  • Understanding The Needs of The Company

 

If you were asked to analyse the Prevention of Sexual Harassment Act and break it down to your company’s employees, would you be able to do it?

I am presuming a lot of you would say yes. However, what’s important to realise here is that, as lawyers we tend to use complicated terms, explain the law, and expect the layman sitting opposite the table to understand the jargon. This is exactly what companies do not need.

They need lawyers who could break down the laws to a checklist of do’s and don’ts for the management as well as employees.

Think about it, what happens when marketing needs a certain ad to be reviewed? Let’s say you find certain portions of the ad prone to call for a case of misleading advertisement. Do you tell them what the law is? Or do you explain to them what can be done? Or how could they tweak the ad to not be misleading?

What about in the case of a negotiation? Do you let go off a profitable deal because your best alternative solution has been thrown out of the door? Or do you think of what is in the best interests of the company and return to the table later?

As part of the in-house legal team, it is essential to understand that the business you are providing legal advice to, basically your internal clients, are what brings this very company the revenues it requires not only to sustain, but also to be profitable. Your job isn’t to tell them what the law says, it’s to support the business, legally in order for them to perform.

Is this all that companies look at while hiring for their in house team?

No. But these are qualities that they look for in every candidate.

If I were to add a number 6 here, I would have said that in-house counsels need to understand how litigation works. But that is something I would say from the perspective of an outside counsel who has had first hand experience with a number of in-house lawyers with zero knowledge of litigation, or how it works. And clearly, it may not be a mandate for these companies whose lawyers I may have interacted with. However, I do believe it would be an added advantage to anyone applying for an in-house role. More on that next time.

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Analysis of the play Antigone by Sophocles from the perspective of Natural and Positive School of Law

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Antigone
Image Source - https://en.wikipedia.org/wiki/Antigone

This article is written by Neel Vasant. This article does an Analysis of Antigone by Sophocles from the perspective of Natural and Positive School of Law.

Abstract

“Law and order exist for the purpose of establishing justice and when they fail in this purpose they become the dangerously structured dams that block the flow of social progress”.[1]

-Martin Luther King Jr.

The term ‘Jurisprudence’ means the study of law or the science of law.[2] There are various branches or school in the field of jurisprudence such as Natural Law School, Realist School of Law, Positive School of law and others. All the theories have different meaning as to what is right and wrong. Literature is identified by scholars as being universal in its representation of ideas and arguments, this article uses Sophocles’ Antigone to discuss the conflicting claims of natural and positive law as determinants of justice. This play gives rise to many questions as to is an act which is legally wrong but morally right can be made punishable? Thus, it is an attempt to answer several such questions and to critically analyse the Natural and Positive Law Theory, with special emphasis on Saint Thomas Acquinas (Natural Law School) and John Austin (Positive Law School).

Keywords: Jurisprudence, Antigone, Natural Law Theory, Positive Law Theory.

Antigone and Natural Law

“Every person has free choice. Free to obey or disobey the Natural Laws. Your choice determines the consequences”[3]

Natural Law is that theory of law which means that the laws are derived from nature and acts as a binding force upon the human society.[4] In the play Antigone after the death of King Odeipus, a civil war was broke which in the end resulted in death of ‘Polinices’. Antigone – The Protagonist of the play went against the royal order of Creon and gave a royal and an honourable burial to her brother. In this story the law of the land was that no one shall give royal burial to Polinices, but Antigone decided to go against this order, as she believed in the theory of Natural Law – The theory of Saint Thomas Aquinas. [5]

Thus, Antigone despite breaking the law of land, felt that her act was justified as she believed that there is something over and above the law of land which are moral. In this story after the death of Odeipus, his successor King Creon believed in the theory of man made laws. Antigone had a firm belief that Gods have authorised people to give a respectful burial. And thus, following God’s wish/command has a more priority than following the man-made rules. he values portrayed in works of literature such as Sophocles’ Antigone reflect on the true nature of man and implore us to adopt certain ethical principles, which will make us socially responsible, lawyers.

According to St. Thomas Aquinas it is also to be noted that the primary function of law is to secure peace and to make sure that proper justice is given to the victim.[6] However, it is also worthy to note that one of the concept of Criminology is that the offender should be punished to an extent which would deter him from committing any crime in future. Morality although not legally enforceable is one of the main sources of law, and a moral crime being made worse when sanctioned by the law as in the case of punishment given to Antigone for giving a respectful burial to his dear brother.[7] When Antigone was arrested for breaching the man-made law, following was her response: –

Antigone: I disobeyed because the law was not, The Law of Zeus nor the law ordained, By Justice, Justice dwelling deep, Among the gods of the dead. What they decree, Is immemorial and binding for us all.[8]

Antigone and Positive Law

“Have I offended the Gods? Do the gods have no regard for what I did?[9]

This was the statement made by Antigone just before she was subjected to the cruel punishment by King Creon. This shows to the readers that she acknowledges that her suffering is the proof of her mistake in obeying her duties, however, she does not defer from her seemingly adamant position that Creon has erred completely in his path of actions. John Austin was the major proponent of the theory of positivism. According to him law is in form or order issued by a superior to an inferior and not a wish, desire or request. There is no option or choice to obey it. And the person has a legal duty to follow the rules laid down and in case of disobedience, punishment is given. Thus, according to this school, the punishment attributed to Antigone for not following the order was valid.

Sophocles’ Antigone as it touches upon the issue of the legitimacy of power of an autocratic ruler Creon, explores how a possible conflict between power and justice has the capacity to create chaos in society.[10] The main argument of people supporting the natural law over the positive law is that the former is universal in a sense and thus there exist a common understanding on any given issue.

One can find the personification of positivism in the attitude and behaviour of King Creon who boycotts any moral principle while punishing Antigone. Creon believed that if he would be liberal in his approach than the city of Thebes would fail to function properly. And thus as a result he considers a positive law approach as his political ideology. The ideology of Creon was quite similar to the views of John Austin where he is of the opinion that it is necessary to forego human emotions and to define legal duties in a strict manner.

According to Austin law is a command of a sovereign which is backed by a sanction.[11] According to Austin the command or the order given by the sovereign is supreme and non-compliance with it would attract heavy punishments. Such commands issued by the sovereign gives rise to a legal duty. There was no place for morality in Austinian Theory.

Present Day Example

In the current setup there is a lot of buzz around regarding scrapping of Section 377 of the Indian Penal Code. Section 377 deals with an unnatural offence which criminalises homosexuality.[12] This debate is ongoing since a very long time. It was in the year 2009 that the Delhi High Court declared Section 377 as unconstitutional, however, the apex court overruled this judgement way back in 2013.[13] It was in the initial months of 2018 that the Supreme Court decided to review the earlier judgement.

There are mainly two arguments on this on-going debate. According to the positive law section 377 should be an offence because it is the law of the state, which is backed by a sanction. Positive Theory of Law states that the man-made laws are to be considered as sacrosanct[14]. On the other hand, the Natural Law believes that man made laws can never stand against the natural laws. Everyone is born in this world with a special and a unique trait. Just because a particular person attracted to a person from the same gender doesn’t or shouldn’t fetch him a punishment.

Conclusion

“The narrative in legal theory, like all narrative, brings us face-to-face with our moral selves, our moral options and our capacity for moral action”[15]

The play Antigone is just not limited to being a tragedy but it still keeps alive the debate of law and morality. Both the theories i.e. Natural and Positive Law are completely opposite but both help us as determinants of justice. After analysing the play, we can conclude that law is a very important for justice delivery in the society, however with changing times there should also be change in the laws to meet the claims made unto us by the Natural Laws which are universal in nature.

[1] “Quote by Martin Luther King Jr..”, http://www.keepinspiring.me/martin-luther-king-jr-quotes/, Accessed on 23 July 2018.

[2] “Meaning of Jurisprudence”, https://dictionary.cambridge.org/dictionary/english/jurisprudence, Accessed on 23 July 2018.

[3] “Natural Law Quotes”, https://www.brainyquote.com/topics/natural_laws. Accessed on 25 July 2018

[4]Natural Law Definition”, https://www.merriam-webster.com/dictionary/natural%20law. Accessed on 25 July 2018.

[5] “The Basics of Philosophy”, https://www.philosophybasics.com/philosophers_aquinas.html, Accessed on 25 July 2018.

[6] St. Thomas: Philosopy”, https://www.franciscanmedia.org/saint-thomas-aquinas/, Accessed on 25 July, 2018.

[7] Jill Frank, The Antigone’s Law, Law, Culture.

[8] Seamus Heaney, The Burial at Thebes — Sophocles’ Antigone, 20—21 (1st Ed. 2004).

[9] “Antigone: A Classical Greek Tragedy”, https://mthoyibi.files.wordpress.com/2011/05/antigone_2.pdf, Accessed on 23 July 2018.

[10] Transgression of Law and Justice: A Jurisprudential Analysis of Sophocles’ Antigone, 3 KIIT Student L. Rev. 80 (2016).

[11]John Austin: Philosophy”, https://plato.stanford.edu/entries/austin-john/, Accessed on 25 July 2018

[12] The Indian Penal Code, Section 377

[13] “Section 377: The Legal Battle”, https://indianexpress.com/article/what-is/what-is-section-377-homosexuality-lgbtq-supreme-court-india-5253460/, Accessed on 25 July 2018.

[14] Bruce D. Fisher, Positive Law as an Ethic: Illustrations of the Ascent of Positive Law to Ethical Status.

[15] James V. Schall, Natural Law and the Law of Nations: Some Theoretical Considerations, 15 Fordham International Law Journal 997, 997 (1991).

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Implied Conditions and Warranties under the Sale of Goods Act

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In this article, Saloni Sharma discusses Implied Conditions and Warranties under the Sale of Goods Act.

Implied Conditions and Warranties under the Sale of Goods Act

The Sale of Goods Act came into effect on 1st July 1930 and deals with the contracts or agreements related to sale/purchase of goods. The contract of sale of goods, whereby a seller transfers or agrees to transfer the property in the goods to the buyer for a specific consideration, i.e. price, has following main essentials for its validity:

  1. Two consenting parties
    • Buyer – A person who buys or agrees to buy goods.
    • Seller – A person who sells or agrees to sell goods.
  2. Goods- Form the subject-matter for the contract of sale.
  3. Transfer of the property- may or may not involve physical delivery of the goods.
  4. Price- consideration for the goods.
  5. All the essentials of a valid contract (1)
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Understanding the terms

Goods

Section 2(7) of the Sale of Goods Act, 1930 defines Goods as any kind of moveable property (which is not an actionable claim or money) or land (including stock and shares, growing crops, grass, and things that are attached to or form a part of the land) which is agreed to be sold, under the contract of sale.

Goods form the subject-matter for the contract of sale against which the buyer pays a consideration (price for the good) at the time of completion of the contract. Goods can be classified into 3 types on the basis of their quality (2):

Existing goods- The goods that are agreed to be the subject matter of the contract by the parties and are under the possession of the seller at the time of formation of the contract are referred to as existing goods. These can further be divided into two categories:

  • Ascertained or Specific Goods- The goods that are specifically a part of, are identified and agreed upon at the time when a contract of sale is made, are ascertained goods (3).

For example, when a customer selects a particular painting/artwork to buy from the seller at the time of formation of the contract, the painting/artwork is an ‘ascertained good’ since the customer contracted to purchase that specific painting/artwork only.

  • Unascertained Goods- The goods that are not explicitly identified among similar goods at the time of formation of the contract are unascertained goods.

For example, A contracts to buy one sack of rice from B. Here, the subject-matter of the contract, i.e. rice is not identified specifically by the buyer at the time of formation of contract but is under the possession of the seller.

  1. Future goods- The goods that are not present with the seller or are not under his possession at the time of formation of the contact but promises to produce, manufacture or acquire the same in order to fulfil the contract (4). When the seller has produced/manufactured/ acquired the goods, as agreed upon during the formation of the contract and are suitable to be transferred to the buyer, the goods are said to be in a deliverable state (5), and the buyer is bound to take delivery of the goods, so produced. For example, A contracts to buy a car from B after it is manufactured by B.
  2. Contingent goods- Section 31 of the Indian Contract Act 1872 defines contingent contract as, ‘a contract to do or not to do something, if some event collateral to such contract, does or does not happen’ which means such contracts which are dependent on some other event or contract. A contingent good in a similar sense means, a good, the acquisition of which by the seller depends upon a contingency which may or may not happen (6). For example, A agrees to deliver a T.V. set to B when he receives the same from the vendor upon fulfilment of his contract with the vendor (between the seller and the vendor).

The central concept of condition and warranty with respect to the subject matter of the contract of sale, i.e. goods is explained in section 12 of the Sale of Goods Act, 1930 as a ‘stipulation’ in the contract of sale which may be a condition or warranty.

Deliverable State

Section 20 and 21 of the Sale of Goods Act 1930 elaborate on the concept of ‘Specific goods in a deliverable state’ and ‘Specific goods to be put into a deliverable state’ respectively.

‘Deliverable state’ refers to the condition of the goods such that the buyer under the contract is bound to accept the goods delivered to him by the seller according to the contract. ‘Where there is an unconditional contract for the sale of specific goods in a deliverable state, the property in the goods passes to the buyer when the contract is made, and it is immaterial whether the time of payment of the price or the time of delivery of the goods, or both, is postponed’ (7) whereas for the ascertained goods that are not in their deliverable state at the time of formation of the contract, and the seller needs to do something in order to put the good in a deliverable state, the possession of the good in deliverable state passes to the buyer as soon as he receives the notice of the same.

Condition

A condition is a stipulation essential to the main purpose of the contract, the breach of which gives rise to a right to treat the contract as repudiated’ (8).

A condition is referred to as, an essential element attached to the subject matter of an agreement which is mentioned by the buyer to the seller and is either expressed or implied while entering into the contract. The buyer can refuse to accept the goods delivered by the seller, in case of non-compliance with the condition mentioned by the seller in the contract. The condition may be expres or implied.

If while entering into a contract, the buyer mentions (in words or writing) that the goods are to be delivered to him before a given date, the date is taken as a condition to the contract since the buyer expressed it. Whereas, if a buyer contracts to buy a red-coloured saree for her ‘wedding’ which is to be held on a date mentioned to the seller, then the time is the implied condition for the contract. Even if the buyer doesn’t mention the date of delivery (but has mentioned the date of the wedding or occasion), it is implied on the part of the seller that the garment is to be delivered before the mentioned date of the wedding. In this case, the seller is bound to deliver the garment before the date of the wedding as the delivery of the garment after the said date of the wedding is of no use to the buyer and the buyer can refuse to accept the same since the condition to the contract is not fulfilled.

Warranty

A warranty is a stipulation collateral to the main purpose of the contract, the breach of which gives rise to a claim for damages but not to a right to reject the goods and treat the contract as repudiated9.

A warranty is referred to as extra information given with respect to the desired good or its condition. The warranty is of secondary importance to the contract for its fulfilment. Non-compliance of the seller to the warranty of the contract does not render the contract repudiated and hence, the buyer cannot refuse to buy the good but can only claim compensation from the buyer.

CONDITION WARRANTY
A condition is of primary importance. A condition is of secondary importance.
Breach of condition leads to termination of the contract. In case of a breach of warranty, the injured party is liable to be compensated.
The injured party can refuse to accept the goods as well as claim damages in case of breach of condition. The Injured party can only claim damages in case of breach of warranty.
The injured party can refuse to accept goods not fulfilling the condition of the contract. The Injured party cannot refuse to accept the goods not fulfilling the warranty.
A condition can be treated as a warranty on the wish of the buyer. A warranty cannot be treated as a condition.
Defined in Section 12(2) of the Sale of Goods Act, 1930. Defined in Section 12(3) of the Sale of Goods Act, 1930.

Implied Conditions and Warranties under the Sale of Goods Act

Section 14-17 of the Sale of Goods Act, 1930 deal with the implied conditions and warranties attached to the subject matter for the sale of a good which may or may not be mentioned in the contract.

Implied Condition

Condition as to Title [Section 14(a)]

Section 14(a) of the Sale of Goods Act 1930 explains the implied condition as to title as ‘in the case of a sale, he has a right to sell the goods and that, in the case of an agreement to sell, he will have a right to sell the goods at the time when the property is to pass’.

This means that the seller has the right to sell a good only if he is the true owner and holds the title of the goods or is an agent of the title holder. When a good is sold the implied condition for the good is its title, i.e. the ownership of the good. If the seller does not own the title of the said good himself and sells it to the buyer, it is a breach of condition. In such a situation the buyer can return the goods to the seller and claim his money back or refuse to accept the good before delivery or whenever he learns about the false title of the seller.

CASE LAW: Rowland v Divall, 192210 – The plaintiff had purchased a car from the defendant and was compelled to return it to the true owner after having used it for a while. The plaintiff then sued the defendant for the purchase money, since the defendant didn’t receive the consideration as per the condition of the title of ownership.

Sale by Description (Section 15)

Section 15 of the Sale of Goods Act, 1930 explains that when a buyer intends to buy goods by description, the goods must correspond with the description given by the buyer at the time of formation of the contract, failure in which the buyer can refuse to accept the goods.

Sale by Sample (Section 17)

When the goods are to be supplied on the basis of a sample provided to the seller by the buyer while the formation of a contract the following conditions are implied:

  • Bulk supplied should correspond with the sample in quality
  • Buyer shall have a reasonable opportunity to compare the goods with the sample
  • The good shall be free from any apparent defect on reasonable examination by the buyer.

Sale by sample as well as Description (Section 15)

When the sale of goods is by a sample as well as a description the bulk of the goods should correspond with both, i.e. description and sample provided to the seller in the contract and not only sample or description.

Condition as to Quality or Fitness (Section 16)

The doctrine of Caveat Emptor is applicable in the case of sale/purchase of goods, which means ‘Buyer Beware’. The maxim means that the buyer must take care of the quality and fitness of the goods he intends to buy and cannot blame the seller for his wrong choice. However, section 16 of the Sale of Goods Act 1930 provides a few conditions which are considered as an implied condition in terms of quality and fitness of the good:

  • When the buyer specifies the purpose for the purchase of the good to the seller, he relied on the sound judgment and expertise of the seller for the purchase there is an implied condition that the goods shall comply with the description of the purpose of purchase.
  • When the goods are bought on a description from a person who sells goods of that description (even if he doesn’t manufacture the good), there is an implied condition that the goods shall correspond with the description. However, in case of an easily observable defect that is missed by the buyer while examining the good is not considered as an implied condition.

Implied Warranty

Enjoy Possession of the Goods [Section 14(b)]

Section 14(b) of the Act mentions ‘an implied warranty that the buyer shall have and enjoy quiet possession of the goods’ which means a buyer is entitled to the quiet possession of the goods purchased as an implied warranty which means the buyer after receiving the title of ownership from the true owner should not be disturbed either by the seller or any other person claiming superior title of the goods. In such a case, the buyer is entitled to claim compensation and damages from the seller as a breach of implied warranty.

Goods are free from any charge or encumbrance in favour of any third party [Section 14(c)]

Any charge or encumbrance pending in favour of the third party which was not declared to the buyer while entering into a contract shall be considered as a breach of warranty, and the buyer is be entitled to compensation and claim damages from the seller for the same.

Conclusion

The provision of Implied conditions and warranties are provided in the Sale of Goods Act in order to protect the buyers in case of any fraud by the seller. However, it is seller’s duty in the first place to look for the obvious defects and enquire about the quality of the product before entering into a contract of sale of goods since a seller cannot be held guilty for a customer’s wrong choice.

In order to ensure purchase of an appropriate good by the seller, it is suggested that the buyer conveys the purpose and gives a reasonable description of the goods so desired.

 

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Endnotes

  1.  Section 10 of Indian Contract Act, 1872
  2.  Section 2(12) of The Sale of Goods Act, 1930
  3.  Section 2(14) of The Sale of Goods Act, 1930
  4.  Section 2(6) of The Sale of Goods Act, 1930
  5.  Section 2(3) of The Sale of Goods Act, 1930
  6.  Section 6(2) of The Sale of Goods Act, 1930
  7.  Section 20 of The Sale of Goods Act, 1930
  8.  Section 12(2) of The Sale of Goods Act, 1930
  9.  Section 12(3) of The Sale of Goods Act, 1930
  10.  (1923) 2KB, 500
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How can you get legal services in the USA if you don’t have money to spend on lawyers

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This article is written by Martin William.

Lawyers are very important actors of the justice system. Without their help, people who suffered personal injury wouldn’t file a claim or, even if they did, they would lose the case. However, we are living in a world full of stereotypes and the most popular misconception around lawyers is that they are expensive.

In this case, attorneys don’t receive all the credit for their work and most citizens avoid dealing with litigation. When you think about the possibility of not being able to pay for your attorney’s services, you lose the hope of receiving a positive solution for your legal problem and thus you want to give up without even starting.

Expensive fees shouldn’t be an impediment for you. Those who cannot afford to pay for legal aid should know that there are lawyers who agree to a contingency fee. This payment method is useful especially for those who suffered injuries during a car or employment accident.

If you are in this situation, the first thing you should do after the initial medical check-up is to look for a specialized attorney who agrees to represent you based on a contingency fee. Most lawyers will work for this kind of fee in the area of personal injury claims.

The next step is to make sure that you find a dedicated professional who increases your chances of getting a favorable solution. Just as an example, we will mention that warriorsforjustice.com is a good place to start. Through this online resource you will find experienced lawyers who fight for their clients and are specialized in various fields. Also, you might get a good contingency agreement if you decide to work with any of them

Contingency means that you pay if and only the lawyer wins your case

In case you’ve never heard about contingency, we will mention that this notion defines an agreement between the person who needs legal aid and the attorney. According to contingency, the legal advisor receives a percentage of the overall settlement in case of winning. In conclusion, if the lawyer doesn’t win he or she isn’t getting any fee.

According to several people who benefit from contingency agreements, lawyers who practice this kind of fees are amazing assets to the justice system. But don’t think that they don’t have to play by the rules just because they might not get paid. They have their own set of rules to follow, but the bottom line is that it is in their best interest to get you the highest settlement as soon as possible.

The standard contingency fee may vary from case to case

If the case is a personal injury claim, most lawyers will charge around 33%, if the situation is settled without lawsuit and 40% in case the lawsuit is inevitable. For employment legal matters most lawyers will charge a 40% fee.

Tips for finding the best personal injury claim lawyer

It’s not easy to find the best lawyer when you want to file a personal injury claim. This is a delicate situation and an experienced attorney who works on contingency fee basis will go for the maximum settlement. Also, the trial won’t last long and you won’t have to appear in Court every time. Experts advise us to keep the following things in mind when we are looking for a good lawyer.

  • A legal advisor with experience in the field of personal injury claims will know what steps to follow and what to expect. Also, he/she will know which is the highest settlement possible and will always go for the maximum amount. When you go to the initial meeting, ask the firm representative who will take your case and if your future legal advisor has enough experience in your area of interest. Don’t forget to check for the lawyer’s credentials and success rate.
  • Make sure that it doesn’t take a lot of time until your case starts and ask about the number of times you have to appear in Court and what you will have to do. Usually, the lawyer does everything for you, from filling the documentation to representing you in front of the judge.
  • Read all the documentation before signing anything and ask if you didn’t understand something.
  • Last, but not least, remember that professional lawyers won’t charge you for consultations.

After these things are settled, check to see if the company asks for other fees and what documents you should bring for consultation. In addition, communicate with your attorney as much as possible, before and during the procedures.

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What Area of Law Should I Focus on to Get a Sureshot Job at a Law Firm?

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This article is written by Ramanuj Mukherjee, CEO, iPleaders.

 

When I was giving my day zero interviews, every law firm partner who took my interview asked me this question. There were variations, but in the end it was the same.

What is your favourite area of law?

What is the area of law on which we should ask you questions? What is it that you are most confident about?

What do you like about law? Anything that catches your fancy in particular?

Since then, I have helped many law students to prepare for interviews. There are two things I always say, even if you wake me up from my sleep and ask me just the night before your interview. Please prepare for any question that can possibly be asked about things that you have mentioned in your CV. Basically, if you have mentioned you have done certain work in an internship or at a job or an article you have written, you are highly likely to be asked a few questions about those things. What exactly will be asked cannot be predicted. Hence you need to think of predictable and unpredictable questions around all that you have mentioned in your CV, and prepare for the same.

The second is this question: What is your favourite area of law? On which they will ask you freewheeling questions.

Now the thing is that it is not enough to say any random area. Certain areas will quickly get you disqualified. One of my seniors once said “Family Law” when asked this question, and her interview lasted for only 5 minutes. The recruiters asked her – why are you appearing from a law firm job then? You should practice family law in a district court.

Don’t blow your interview like that. Imagine you are giving an interview for a job at Trilegal, AZB or Luthra & Luthra. Should you say my favourite area of law is IP laws or labour laws? I would be very apprehensive to do so. They have very small IP law or labour law teams, and usually they are not looking to hire into those teams. Your chances are much better if you say “Company Law” or “FDI” or “Project Finance” or “Capital Markets” or some such generic business law subject in which law firms have plenty of work.

In my interviews, I said my favourite subject is “Structured Finance.” It surprised and intrigued the interviewers. They asked me a lot of questions about structured finance, especially the partner who worked on finance deals most of the time. I explained to them about SPVs, and explained what brought on the global economic crisis in 2008. They were impressed. I got my job offer.

One of my students from GLC had a very interesting experience. Shardul Amarchand Mangaldas had shortlisted her and 17 others. When her turn for the interview came, she said her favourite area of law is FDI and investment law. Now that is not something recruiters expect to hear from students, because such topics are not properly taught in law schools. Hence, they asked her what they know about it.

Then she had a gala time. She told them everything she had read about in our investment law modules. She was one out of two people who were offered a job. And she said when she walked out of the interview she was quite sure that she was going to land it. She was even asked where and how she learnt all that!

You need to have this one area of law that genuinely interests you, and you got to build up your CV around it if you want a job at a law firm. The subject cannot be any random are of law, but something law firms where you want a job practice and consider valuable with a long term perspective on mind. You need to know enough that if a law firm partner starts talking to you about it, he or she will be definitely impressed by how much you know. That’s the easiest way to crack a law firm interview, which has been proven time and again.

In this area, you will not only know the obvious stuff taught in law school and mentioned in textbooks that everyone is expected to know, but also a lot more. You need to write articles in this area. You need to know the practical aspects of law that lawyers face when they deal with clients in real life. You find out about this topic as much as you can.

Here are 5 subjects I will strongly recommend. You can take any of these and succeed.

Tax Laws – very few lawyers or law students venture into this area, and it is always valuable to law firms. If you are good at it, getting PPO is easiest. Also there are tons of accounting firms and specialized tax law firms that will love to scoop you up. It is known to be difficult and complicated, but if you can create demonstrable expertise in it, your career is set. Here is a course on international tax and transfer pricing, here is another course on GST laws, and another one on corporate taxation.

M&A and investment law, including FDI –  This is the bread and butter for most big law firms. If you are good at this, it is hard for them to miss your talent or to say no to you. It is also one of the most crowded and competitive areas of practice in, after all M&A and private equity jobs are highly sought after. If you can show you understand the due diligence process, understand what are the documents that go into a transactions, and that you are aware of the regulations surrounding M&A, such as takeover code, FDI rules, companies act, you are done. Here is an M&A law course that can help you to reach a stage where even 1st or 2nd year associates in law firms will be glad to know as much as you do. It also covers investment law and banking law for good measure.

Commercial contracts – You could never know too much about contract drafting. It is the numero uno skill for young lawyers. How much bonus you get in your first year, and whether you get a promotion next year will probably depend on your ability to analyze a contract, find loopholes in it, write clauses that address risks you have identified and to help your senior associate in discovering issues that he didn’t discover. In the interview stage, if you can tell them about all the contracts you have already drafted, and have a hearty discussion about it, you are through. When I gave my day zero interview to Luthra & Luthra, I did exactly this. I told them about the first ever agreement I worked on. It was an agreement between a startup incubated at IIT Kharagpur. The incubation agreement, between the incubator and the startup, had a strange clause because of which the startup wasn’t getting investments. The clause said that if the startup raises follow on rounds, then if more shares are issued (an inevitability), then shares would be issued to the incubator free of cost to keep its 3% current shareholding intact! Now that’s a crazy term, and impossible to enforce because how can a company gives shares to a shareholder free of cost? Who is going to pay for those shares? The recruiting partner asked me if I had to write that contract, how will I rewrite the contract to ensure that IIT Kharagpur keeps getting new shares without having to pay. I was stumped. They left me for 5 minutes to think about it. When they came back, I suggested it could be shown as a royalty of some kind that accumulates and then shares are issued against the same. It wasn’t quite correct, there are many gaps in that answer. But they recognized that I was thinking in the right direction and gave me a job offer.

Basically, I got a chance to showcase my practical knowledge of Companies Act as well as experience in contract drafting. They found that to be unusual level of preparedness in a law student. Therefore I bagged the job! Here is a course on contract drafting that can help you reach a very high level of expertise, such that even experienced associates will be impressed by your knowledge and skills and ask you where you learnt so much.

General corporate laws – Taking from the previous example, make sure that you know a lot about general corporate laws if you are interviewing with a big law firm. You will find that knowledge very useful. You cannot say your area of expertise is general corporate laws – but it is something you got to know if you are going to work in a big law firm, no matter which team. This includes all the basic business laws – from business structuring to basics of taxation to technology laws. This is basic minimum knowledge threshold. What exactly do you need to know? I made an exhaustive list once – now it is the syllabus of this business law diploma course. Copy paste it from there if you like. You can also check out this detailed course on companies act and corporate governance if that catches your fancy.

Arbitration – Another area of law in which law firms are experiencing a boom, and they probably have more clients coming in through the door for arbitration than anything else. Law firms are all beefing up their dispute resolution teams, which do both arbitration and litigation. However, saying that your favourite area of law is civil litigation or something like that can be taken in a very wrong way in a big law firm interview. In a litigation firm or in an interview with dispute resolution partner, though, feel free to say so. Always aim for arbitration if you are trying to land a job at one of these law firms and dispute resolution is your area of expertise and preference. Here is an arbitration law course that can help you get expert level knowledge in just 3 months.

 

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Law Firm vs. In-House – What Should Your First Job Be?

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law firm
Law firm or In-house? The choice is a tough one to make. Most students know about law firms and the herd that follows them for internships and jobs. According to 2017 Livemint report, there are about 1.3 million registered companies in India. The number of law firms are definitely less than that, with only a handful firms employing a large number of lawyers like Cyril Amarchand Mangaldas (CAM), Shardul Amarchand Mangaldas (SAM), Khaitan & Co. AZB & Partners, etc. Even if each registered company employs even one lawyer, then imagine the scope! There is a huge disparity between the starting salaries of an in-house counsel and an associate in a law firm. The starting salary of an in house counsel, as per GlassDoor, can range from 4.5 to 10 Lakhs per annum depending on the company, whereas the big law firms can pay from 13 to 15 Lakhs per annum, as per a thoroughly researched article on this blog. I had joined, a law firm straight out of college in Kolkata and was working for INR 15,000 per month! Just imagine, there was Khaitan & Co. right next door to me which was paying its associates multiple times over! It was frustrating to say the least. There were other firms paying 20,000 to 35,000 per month. I was struggling with the work at hand like all first year associates, but much poorer. No one tells you this about non-litigation careers. People spoke of the financial struggles in litigation, but not of the law firms. For me the move to the in-house role was more financially motivated than anything else. It took me years to realise that the work involved, remuneration, etc. are pretty comparative to law firms. You can watch this webinar about the journey of an in-house counsel, where Mr. Surup Ray Chaudhuri, Corporate Director – Legal at the Taj Group has spoken about his struggles to find a decent in-house job right after law school and what it took to keep at the job! So what should be your first job? Where do you learn more? Where is the scope of consistent growth or diversity? Which one is the better option? There is no straight answer to this. I like the remuneration of law firms but the work-life balance is off. However, it is a myth that in-house lawyers have that although their work is more diversified. So which way does one go? Your first job is a monumental step in your career. Although it does not define your resume in the long run, but it definitely shapes you as a lawyer. I was a clueless law student when it came to knowing the difference between taking a job in a law firm and in-house. But now, as a professional I have much more clarity. So how do you decide which your first job should be?

# Area of Interest

The first and foremost reason to pick between the two, should be based on your area of interest. If you are interested in mergers and acquisition, then a law firm with this focus area of work will be more suited for you. All the big law firms have an entire vertical dedicated to this. If you’re interested in say media and entertainment law, then an in-house role might be more suited. So first figure out which area of law interests you the most. The interest also varies in the nature of the work. An in-house counsel has to advise and work on a varied topics to different teams. This requires sufficient knowledge in a laws related to contracts law, technology law, intellectual property law, real estate laws, etc. They have to advise the management as well as the other departments like sales, marketing, accounts , etc. You can check out this comprehensive business law course, to enhance your knowledge base and learn the necessary laws and their practical application. To know more about the life of an in-house lawyer read this article. They have to make reports, presentations, maintain various databases to monitor the ongoing work, etc. Whereas law firms, although deal with similar work profile, it is more focused on a field of law. So whether you’re interested in IP law or M&A law or commercial laws, you will be specialising in that area of law. To know more about how to work your way into a law firm, read this article. So you will be drafting contracts, dealing with clients, advising them, strategizing the best suited deal for your client, giving them the clear limitation of any transaction.

# Work Profile

The work of in a law firm and an in-house are similar in many ways. There are drafting of contracts, negotiation, due diligence, document review, liaison with third parties, dispute resolution, etc. But then there are tasks specific to law firms and in-house counsel. You can read more about the specific work functions of a law firm and an-house counsel here. The pertinent thing to remember is that even the in-house counsels go to the law firms when necessary and not the other way around. In  the initial years, it takes a while to adjust to the assigned work at law firms, as they are quite challenging. There are longer hours, volumes of work, lack of intermittent feedback,etc., which adds to the pressure. These are struggles faced by corporate lawyers in the initial years. How do you figure out if you’re cut out for this job? Plan your internships according to your interest and intern with the firm of your choice multiple times to see if you can take the grind. That is the easiest way. The simplest way to describe the difference between the two is that an in-house counsel has to be jack of all trades and an associate is more of master of one or two. As an in -house counsel, I had to advise on day-to-day functions of the company along with troubleshooting the possible problems. Once a third party had sent notice to an international client of ours for copyright infringement. We not only had to quickly step up to protect us and our claim, but to pacify the client that they are safeguarded as well. We had to keep our clients abreast of every small development, till the dispute was resolved. The in-house counsel has to work not only on the legal issues, but maintain the business relations smoother as well.

# Scope of Growth

The fact remains that there is a clear trajectory of growth in both law firms and in-house jobs. The remuneration plays a key role in the decision between the two jobs. But the payment gap between the top firms and the small firms is huge. The scope of learning is said to be more in a small firm as there are fewer team members compared to the big firm. It is an all hands on deck situation, which requires the optimal utilisation of even the associates. So if you’re a fresher looking to build a brand, it is your call to go to brand name firm or learn multitude of work in a smaller one, and let that be your calling card. Remember, if you know your craft, remuneration will soon follow. But if you spend your time unsuitably, then you risk the long game for short-term gain. So choose wisely. For in-house lawyers there is the scope of changing industries from a telecom company to a start-up or a media company. They can also join law firms in future. Whereas, an M&A lawyer can move to different law firms with same practice or join a company for such specific transactional role.    The point is that both the jobs have a great trajectory, although initially the in-house job might seem financially less lucrative, with the right skills and company, it does not go to a waste. I started at a law firm, but I really learnt at the in-house jobs. Some of my friends are enjoying working at both law firms and in in-house roles. Don’t go into a company for the comfortable timings, for that is a myth. An in-house counsel is at call with multiple teams and not just the legal. They have to troubleshoot the issues coming from different directions. This job requires multitasking in the literal sense. Similarly, law firms are not for the weak-hearted. You need to invest a lot of time and energy to learn the work and improve. There is no hand-holding guidance available. So you have to figure out things on your own and seek out help whenever necessary. So if you’re a troubleshooter who can don multiple hats, in-house job is for you. If you’re focused, diligent, and self-motivated person who can handle whatever is thrown at them, give law firm a chance. I started with much less experience and had to learn on the go. So if I can say with certainty it is this – work where you can learn the most and develop your skills. Money will surely follow soon enough. But learning your craft is a sure shot way towards that goal. You can learn business laws, contract drafting, media laws, company laws, M&A laws and more. Be a jack of all trades or a master of one, but make sure you’re bloody good at it, whatever your choose.
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Rules regarding Alteration of Share Capital of a Company

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Share Capital
Image Source: http://www.taxscan.in/wp-content/uploads/2016/06/Sale-of-Shares-Tax-Scan.jpg

In this article, Rahul Kumar, pursuing Diploma in Entrepreneurship Administration and Business Laws from NUJS, Kolkata discusses the rules regarding the alteration of the share capital of a company

Introduction

Increase or decrease of authorized share capital of a company is known as alteration of share capital.

There two type of share capital of a company:- equity share capital and preference share capital. Power of a company to alter its share capital is defined and explained in section 61 of the Companies Act, 2013. It can be done by ordinary resolution of the company, thus it is not necessary to confirm the alteration of the share capital of the company from the tribunal.

The Companies Act 2013 allows the companies to alter and make some changes in its authorized share capital with certain specified procedures for alteration of share capital is specifically mentioned in the Companies Act, 2013.

Alteration in the share capital can be done only if it is so authorized by its Articles of Association to alter the capital clause of its Memorandum of Association.

Basic and Mandatory Rules Necessary to Follow

First step: It is important for a company to check and evaluate whether the company on the first face is authorized by the Articles of Association to increase the share capital if company’s Article of Association does not permit or authorize, then it is to be done with the objective of altering them.

Second step: The company has to take the confidence of other individuals. The board meeting has to be conducted for enabling the board to call for the extraordinary general meeting, it is mandatorily required to get approval from the shareholders for increasing the authorized share capital.

Third step: The company then calls for an extraordinary general meeting of the shareholders of the company by sending them a notice with clear agenda and proper explanatory statements, explanation, with a proper reasoning along with the resolutions to be passed to alter the Memorandum of Association and Articles of Association which are to be altered for the purpose of increasing the authorized share capital.

Fourth Step: Thereafter, resolutions for increasing the authorized share capital of the company and corresponding alterations in the Memorandum of Association and Articles of Association by resolution. After completing the whole procedural part, the company authorizes the board to file necessary forms and resolutions with ROC having jurisdiction.

The company, if thinks necessary and suitable for the growth, can increase its share capital by issuing new shares. A company may consolidate and divide all or part of its share capital into shares of a large amount. A company may also sub-divide its shares of lower denomination. It may cancel those shares which have not been taken by any person and reduce its share capital.

Thus, the right to alter share capital must be given in the article of association of the company.

Procedure for alteration of share capital:

  • Authorized by article
  • By resolution
  • Notice to registrar

Notice To Registrar

Notice of alteration is required to be given from the hands of the company to the registrar within a period of 30 days, if the company fails to do there are provisions for a hefty penalty under the statute.

Alteration of Share Capital with Different ways of Journal Entries

Increase in share capital by making a fresh issue of shares, if a company wants to increase the share capital beyond the amount of share capital, it must increase its authorized capital by the number of new shares. The company can convert all or any of fully paid up shares into stock or reconvert stock into fully paid up shares of any denomination.

Provisions Relating to Alteration

The capital clause can be altered if the Article of Association contains the provision for such alteration otherwise, the first basic step is to alter Article of Association by passing a special resolution. The basic principle for alteration is that the alteration of share capital be bonafide & in the interest of the company.

Generally, ordinary resolution is enough to alter the capital clause, thus notice of alteration to be given to the ROC, when share capital automatically stands increased. Loan taken from central government also increases the capital of a company.

Condition for Alteration of Share Capital

The company should be limited by shares, the company limited by guarantee having a share capital, the Article of Association must permit the company for alteration of share capital.

Alteration of Share Capital can be done by

Alteration of share capital can be done by issuing new shares of the company in the market, by consolidating the shares, the company can do the alteration in its capital by the conversion of previous shares, the company can subdivide its share in the market, the company can cancel its unused shares from the market.

Share Capital may Automatically be Increased

When government by its order states that any debenture issued to any government by a company or any part under such circumstances, the debenture be converted into shares on the transfer of capital issued by the company.

Reduction of Share Capital

After confirmation by the tribunal on an application by the Company, limited by shares and guarantee, having a share capital and share capital of a company can be reduced by special resolution. The reduction of share capital is governed by Section 66 of the Companies Act, 2013. It is necessary to confirm it by the decision of the tribunal in writing.

For reduction of share capital, the company is required to conduct the board meeting, a notice for the general meeting is necessarily required to be given to every shareholder and concerned person

Every notice of a meeting shall specified by mentioning the place, date, day and the hour of the meeting and shall contain a statement of the business to be transacted at such meeting. A notice is required to be proper and elaborate, the material facts concerning each item of special business to be transacted at a general meeting, such as the nature of concern or interest, financial or otherwise to every director and the manager every other key managerial personnel and their relatives.

A notice which is given to the concerned person should itself be self-explanatory

After the notice, the Extraordinary General meeting is called and the concerned members vote in favor or against of the authorized share capital of the company. The votes of the members play a crucial role in taking appropriate decision. Thus, during the course of meeting the members decide the alteration in the memorandum of association. Thus, after considering all the facts in the welfare of company, the board members by utilizing their powers pass an ordinary resolution.

Reduction in Share Capital Not Allowed

Reduction in share capital is not allowed in the case where there are arrears in the repayment of interest and thereon. The creditor of a company has a right to object against the reduction in its share capital. For reduction in the share capital of the company, the registrar shall issue a certificate to the company for reduction.

Reason for Reduction in Share Capital of a Company

There are many reasons for the reduction of share capital of a company some are as follows.

  • If there is a returning of surplus capital of a company.
  • The company wants to smooth its capital structure by simplifying it.
  • Sufficient reserve is also one of the reasons for the reduction in share capital.

Assets of the company also play a vital role in the variation of the share capital of the company.

Altering the Memorandum of Association and Articles of Association

Section 61 of the Companies Act, 2013 states about Power of limited company to alter its share capital, sub-clause further states that (1) A limited company having a share capital may, if so authorised by its articles, alter its memorandum in its general meeting to—   increase its authorised share capital by such amount as it thinks expedient. A company can increase its authorised share capital by altering the memorandum of association. Section 13 of the Companies Act deals with altering the memorandum of association and section 14 of the above-said act deals with altering the articles of association.

Section 13 of the Act states that as provided in Section 61, a company may, by a special resolution and after complying with the procedure specified in this section, alter the provisions of its memorandum.

If there is no provision to alter the provision of section 14 of the companies act, 2013, then the company is required to make suitable application to the concerned stock exchange, where the company is listed in a prescribed form.

Precedents in Regard to the Alteration of Share Capital of a Company

In Re North Cheshire Brewery Co., 1920 WN 149. Re Metropolitan Cementry Co., (1934) SC 65

Ratio

In this case law, powers are given to the members to alter its share capital only if it is authorized by its article of association

In [Needle Industries (India) Ltd. v. Needle Industries Newey (India) Holding Ltd. (1981) 1 Com Cases 743 (SC)].

Ratio

Powers to alteration must be exercised in the interest of the company and not for the welfare of some particular members

Conclusion

The company is bind to follow each and every part of the procedure as explained and mentioned in the statute failing which, the company shall be punishable with a hefty penalty. The procedural part mention in the statute for alteration of share capital also give security to its shareholder.

However, the increase in capital of the company, in the long run, benefit its investors in the form of increased return on equity through capital gains, an increase in dividend payouts or both.

Bank also usually prefer to give a loan to the company depending upon the authorized capital. Thus, authorized capital is also helpful for a company in growth. It is helpful in avoiding unnecessarily implications.

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Laws relating to the Third Gender and Homosexuality in India – An Analysis

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federalism in india
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In this Guest Post, Akash Kori discusses the laws relating to the Third Gender and Homosexuality in India.

Introduction

Transgender, is a term that defines a spectrum for people whose identity, expression, behaviour, or a general sense of self, does not conform to what is usually associated with the sex they were born. It is often said sex is a matter of the body, while gender occurs in the mind. Gender is an internal sense of being male, female, or other. People often use binary terms, for instance, masculine or feminine, to describe gender just as they do when referring to sex. But gender is more complex and encompasses more than just two possibilities. Gender is also influenced by culture, class, and race because behaviour, activities and attributes seen as appropriate in one society or group may be viewed otherwise in another.

On an estimate, India has about a million transgender humans. In India, a common term used to describe transgenders, transsexuals, crossdressers, eunuchs, and transvestites is Hijra. They live on the fringes of society, regularly in poverty, ostracised due to their gender identity. Maximum make a living through singing and dancing or by means of begging and prostitution. Due to the fact that hijras do not have reproduction capacities as either guys or ladies, they are neither men nor girls and claim to be an institutional “Third Gender”.

What does Transgender Mean?

Transgender is an umbrella term that incorporates more possibilities of a gender identity than just being binary. Gender identity refers to someone’s inner experience of being male, female or anything that they want to be identified as. Gender expression refers to the manner a person communicates gender to others through behaviour, apparel, hairstyles, voice or frame characteristics. “Trans” is every so often used as shorthand for ‘transgender’. Although, not all people whose appearance or behaviour is gender-nonconforming, will pick out as a transgender man or woman. In the current paradigm, the transgender human beings are talked about and there is a discourse about them in cultures and academia which are subsequently affecting people’s consciousness, understanding, and openness to transgender people.

Transgenders in our society encompass all races and ethnicity, yet they’ve never enjoyed a first-rate lifestyle due to the misinformed prevalent notion of ‘what they’re’ and ‘how they’re’ according to the society. In reality, they’re subjected to confusion and pain on account of the inflexible compelled conformity to sexual dimorphism. They have to deal with disparities related to societal stigma, discrimination and denial of their civil and human rights. Discrimination in opposition to them has been the major cause of substance abuse and suicides among them. To make it worse, this discrimination starts inside the areas of their own family existence which transcends into their social life, education, health and so on.

Section 377 found a place inside the Indian Penal Code prior to the enactment of Criminal Tribes Act that criminalized all penile-non-vaginal sexual acts between men and women, which included anal sex and oral intercourse, at a time when the myopic view regarding transgender humans was their association with the aforementioned sexual walkthrough.

Reference may be made to the judgment of the Allahabad High Court in Queen Empress v. Khairati (1884) ILR 6 ALL 204, wherein a transgender is arrested and prosecuted under Section 377 on the suspicion that he changed into a ‘habitual sodomite’. However, an acquittal was granted on appeal. This judicial precedent is highly in contrast to the historical instances in India where the transgender community has a robust ancient presence in the Hindu mythology and different non-secular texts. Hijras also played a prominent role in the royal courts of the Islamic international, particularly in the Ottoman empires and the Mughal rule in medieval India.

Constitutional Rights: LGBT

The Constitution provides for protection under the Fundamental Rights chapter to all humans with a few rights being restrained to only citizens. Beyond this categorization, the Constitution makes no further distinction amongst the rights holders. The Preamble of our Indian Constitution mandates Justice – social, monetary, and political equality of status.

The Constitution provides for the fundamental right to equality and tolerates no discrimination on the grounds of sex, caste, creed or religion. The Constitution additionally guarantees political rights and other benefits to each citizen. However, the third community (transgenders) is still ostracized. The Constitution affirms equality in all spheres however the moot question is whether or not it’s being implemented.

Most of the contraptions by means of which the Indian state defines civil personhood, gender identity is a vital and unavoidable class. Identification on the idea of sex within male and woman is a vital aspect of civil identity as required throughout the country. The Nation’s coverage of spotting only sexes and refusing to recognize hijras as ladies, or as a third intercourse (if a hijra desires it), has deprived them of numerous rights that Indian citizens take. Those rights consist of the right to vote, the right to own property, the right to marry, the proper to claim a proper identity via a passport and a ration card, a driver’s license, the right to education, employment, fitness so on. Such deprivation secludes hijras from the very material of Indian civil society.

Questions Relating to ‘Third Gender’

  • Why are some people transgender?

There is no single explanation for why a few people are transgender. The variety of transgender expression and reports argue against any easy or unitary rationalization. Many experts believe that biological factors which include genetic influences and prenatal hormone levels, acknowledged later in adolescence or maturity may also all contribute to the improvement of transgender identities. This is a discussion that goes beyond the scope of the article but for a layman’s knowledge, transgenders are not defective people. They are humans with the same cognitive abilities as a man or a woman.

  • How does someone know that they are transgender?

Transgender human beings revel in their transgender identification in a diffusion of ways and can turn out to be privy to their transgender identification at any age. Some can trace their transgender identities and emotions returned to their earliest reminiscences. They will have indistinct emotions of “no longer becoming in” with humans in their assigned sex.

Others become privy to their transgender identities or begin to explore and revel in gender-non conforming attitudes and behaviours during youth or later in life. A few include their transgender emotions, at the same time as others struggle with emotions of shame or confusion. Folks who transition later in existence may have struggled to healthy incompetently as their assigned sex most effective to later face dissatisfaction with their lives. Some transgender humans, transsexuals, specifically, experience extreme dissatisfaction with their sex assigned at birth, bodily sex characteristics, or the gender position associated with that sex. These people often are trying to find gender-maintaining remedies.

  • Is being transgender an intellectual disease?

A psychological phenomenon is taken into consideration as an intellectual disease only when it is a reason for great distress or incapacity. Many transgender human beings do not experience their gender as distressing or disabling, which implies that figuring out that you are a transgender does not represent a mental sickness.

For those individuals, the actual mental hassle is finding low priced resources, inclusive of counselling, hormone therapy, medical processes and the social help essential to freely express their gender identity and reduce discrimination. Many other barriers may additionally lead to distress, together with a loss of attractiveness within society, direct or indirect stories of discrimination, or assault.

  • What are a few classes or forms of transgender humans?

Regularly, transsexual humans adjust or wish to regulate their bodies through hormones, surgery or other methods to make their bodies as congruent as possible with their gender identities. This technique of transition through clinical intervention is regularly referred to as sex or gender reassignment. It is also called gender confirmation. Folks that were assigned girl, however, identify and live as male and regulate or wish to regulate their bodies through scientific intervention to extra closely resemble their gender identity are known as transsexual guys or ‘trans men’ (also known as lady-to-male or FTM). Conversely, individuals who had been assigned male, however, discover and live as a woman and modify or wish to alter their our bodies through scientific intervention to greater closely resemble their gender identity is referred to as transsexual women or trans women (additionally called male-to-woman or MTF). A few those who transition from one gender to every other option to be referred to as a person or a girl, rather than as transgender.

Folks that go-dress put on garb this is traditionally or stereotypically worn by way of another gender of their subculture. They vary in how completely they go-get dressed, from one article of apparel to fully go-dressing. People who pass-get dressed are usually comfortable with their assigned sex and do not want to trade it. Cross-dressing is a form of gender expression and is not always tied to erotic interests. Cross-dressing is not indicative of sexual orientation. The diploma of societal recognition for move-dressing varies for women and men. In a few cultures, one gender may be given greater range than any other for carrying apparel associated with a different gender.

The term drag queens generally refer to guys who get dressed as ladies for the motive of wonderful others at bars, clubs, or different events. The time period drag kings refer to women who dress as guys for the purpose of pleasing others at bars, clubs, or other occasions.

Genderqueer is a term that a few humans use who identify their gender as falling outside the binary constructs of “male” and “woman.” They will define their gender as falling somewhere on a continuum between male and woman, or they may outline it as fully extraordinary from these phrases. They will additionally request that pronouns be used to consult them which are neither masculine nor feminine, which include “zie” in place of “he” or “she,” or “hir” rather than “his” or “her.” a few genderqueer people do no longer perceive as transgender.

Different categories of transgender human beings consist of androgynous, multi-gendered, gender nonconforming, third gender, and two-spirit human beings. Genuine definitions of these phrases vary from individual to character and might alternate through the years, however, often consist of a sense of blending or alternating genders. A few folks who use these phrases to explain themselves see conventional, binary standards of gender as restrictive.

  • What is the relationship between gender identity and sexual orientation?

Gender identity and sexual orientation are not the same. Sexual orientation refers to an individual’s enduring physical, romantic, and/or emotional appeal to any other man or woman, whereas gender identity refers to one’s inner experience of being male, female, or something else. Transgender human beings can be lesbian, gay, bisexual, or asexual, simply as non-transgender people can be. A few current pieces of research have shown that a trade or a brand new exploration period in associate attraction may additionally occur at some stage in the manner of transition. But, transgender humans typically continue to be as connected to loved ones after transition as they have been earlier than transition.

Transgender human beings commonly label their sexual orientation using their gender as a reference. For example, a transgender girl, or a person who’s assigned male at start and transitions to a girl, who’s attracted to different women could be recognized as a lesbian or gay woman. Likewise, a transgender man or someone who’s assigned lady at start and transitions to male, who’s attracted to different guys, would be recognized as a homosexual guy.

Homosexuality: Rights of the LGBT

The transgender ruling was not about Section 377 and the court took pains to clarify that. But Section 377 remains the elephant in the room that cannot be wished away. Sex is part of the package.

A Fresh Look at Homosexuality

The legitimate role of the scientific and psychiatric classificatory structures on homosexuality is that it is far an ordinary variant in the psychosexual improvement. This is a nice approach to understand homosexuality. In the past, it was related to sin and crime and hence those people with a homosexual orientation were ostracized in society. With this new technique, they may have a healthful area in society.

While welcoming and agreeing with a high-quality belief of homosexuality, it is tough to simply accept the position that homosexuality is a regular psychosexual improvement. It is, in truth, an aberration inside the psychosexual development, resulting from genetic and psychosocial elements for which the person is not always accountable. There are research findings, which endorse that there are structural variations inside the brains of humans with homosexual orientation.

Homosexuality is not always statistically and biologically analysed. Statistically, it isn’t always regular because of its bureaucracy skewed inside the normal distribution. Each biological function has a physiological goal and purpose. The sexual hobby has desires. One is procreation to guard the continuation of the species. The second one is the experience of pride, which in truth, is to facilitate the sexual pastime and to reinforce the bond between husband and wife.

Homosexuality negates one of the desires of sexual interest procreation. Homosexuality has, therefore, to be considered as an aberration in the psychosexual improvement as a result of genetic and psychosocial factors. People with gay orientation aren’t responsible for this aberration. It is not a sin to be discriminated towards. It is not a criminal offence to be punished. It is not a psychiatric ailment desiring treatment despite the fact that people with a homosexual orientation can regularly expand anxiety and melancholy needing treatment if they’re ostracized in society. Because homosexuality is neither a sin nor a criminal offence, the freedom of these with a gay orientation to stay a satisfied existence must not be interfered with.

While society accepts homosexuality undoubtedly, those with a homosexual orientation should also receive their psychosexual repute gracefully and get on with existence. As a possible response to society’s prejudice and discrimination, there seems to be an inclination for them to aggressively declare normality in their sexual orientation. In addition, they seem to say too much about private freedom and rights. Personal freedom and rights are usually confined to some extent, so long as we stay in a social organization. There are distinct components of homosexual behaviour which could come into the struggle with social expectations, religious ideas, and thoughts of morality. People with gay orientation ought to recollect all these and must be organized for compromises.

Law and Justice

The Supreme Court rulings on Section 377 (Naz Foundation vs. Government of NCT of Delhi and Others & Suresh Kumar Koushal and another vs. NAZ Foundation and Others) and transgender right document confusion of notion inside the judiciary. The conflicting judgments of the courtroom on homosexuality seen at the side of its enlightened ruling on transgender rights probable displays a sluggish evolution of liberal notion within higher Indian judiciary.

The needs of the 21st century and the enlightened vision of the Indian Constitution, with its attention on justice, liberty, equality, and fraternity assuring the distinction of the person, mandate a creative citing of the regulation. The judges who reinstated Section 377 opted not to heed the call of justice and renew the guideline of the law with regards to the brand new question that was provided. Alternatively, the judges of the Delhi high court on Section 377 and those of the Supreme Court on transgender status took up the undertaking and rethought the regulation and cited them in response to the call of justice.

Reversal on Gay Rights in India

The police use the law in question to threaten and blackmail gays, lesbians and transgender humans. Violation of the law is punishable by means of a fine and imprisonment.

The British colonial authorities enacted Section 377 of the Indian Penal Code, primarily based on Victorian morality, to criminalize non-procreative intercourse. The Naz Foundation, a non-governmental enterprise operating inside the field of human immunodeficiency virus/obtained immunodeficiency syndrome (HIV/Aids) and sexual health, challenged the Constitutional validity of Section 377 as it violated the right to privacy, to dignity and fitness, to equality and non-discrimination and to freedom of expression. It additionally argued that the law avoided public fitness efforts at lowering the threat of transmission of HIV/Aids as the concern of prosecution averted people from discussing their sexuality and lifestyles fashion. The Delhi High Court on 2nd July 2009, in a landmark judgment, held Section 377 to be violative of Articles 21, 14 and 15, as it criminalized consensual sexual acts between adults in non-public.

The court restored Section 377 of the Indian Penal Code, a 19th-century law, barring “carnal intercourse against the order of nature”. The judgment has brought on incredible dismay among liberal and innovative human beings and among activists and advocacy groups, which use judicial intervention to redress grievances in opposition to minorities of all shades in India. It has also been criticized for prison and human rights views.

Ancient facts record the presence of homosexuality from time immemorial, even in our way of life. The universality of equal-sex expression coexists with versions in its meaning and exercise of the way of life. For the reason that 1970s, deserted pathologizing same-intercourse orientation, conduct, and LGBT lifestyle picks. The new understanding changed into primarily based on research that documented an excessive incidence of identical-intercourse emotions and conducts in males and females, it incidence across cultures and among almost all non-human primate species. Investigations the usage of psychological assessments couldn’t differentiate heterosexual from gay orientation. Studies additionally demonstrated that human beings with gay orientation did now not have any objective mental disorder or impairments in judgment, balance and vocational abilities.

Psychiatric, psychoanalytic, scientific and mental fitness professionals now remember homosexuality as an ordinary version of human sexuality. It cautioned that an awful lot of the distress faced by humans with identical-sex orientation is because of problems they face residing in our predominantly heterosexual global.

Gay-affirmative psychotherapies have been evolved, which help human beings deal with the awareness of being same-intercourse orientated and with social stigmatization. There is no proof for the effectiveness of sexual conversion remedies. Such treatments also increase moral questions. In truth, there is evidence that such attempts may also cause greater harm than properly, inclusive of inducing melancholy and sexual dysfunction. However, faith-primarily based corporations and counsellors pursue such tries at conversion using yardsticks, which do not meet clinical requirements. Clinicians must hold the dictum “first do no damage” in thoughts. Physicians ought to offer a medical provider with compassion and respect for human dignity for everybody no matter their sexual orientation.

The landmark judgment of the Delhi High court, which declared that Section 377 of the Indian Penal Code violates fundamental rights guaranteed by way of the Constitution, became consistent with worldwide, human rights and secular and criminal trends. But, the anti-gay attitudes of many religious and community leaders replicate the life of widespread prejudice in India. Prejudice towards different life is part of many cultures, incorporated into maximum religions, and is a supply of warfare in Indian society.

Homosexuality and India

Human sexuality is complex. The attractiveness of the distinction between choice, behaviour and identification acknowledges the multidimensional nature of sexuality. The reality that those dimensions won’t continually be congruent in people suggests the complexity of the problem. Remedy and psychiatry appoint terms like homosexuality, heterosexuality, bisexuality and trans-sexuality to encompass all related troubles, at the same time as cutting-edge social utilization argues for lesbian, homosexual, bisexual and transgender (LGBT), which focuses on identities.

The superiority of homosexuality is difficult to estimate for many reasons, such as the related stigma and social repression, the unrepresentative samples surveyed and the failure to distinguish choice, conduct and identity. The figures range in age businesses, areas and cultures.

The argument that homosexuality is a stable phenomenon is primarily based on the consistency of equal-intercourse sights, the failure of attempts to change and the shortage of achievement with treatments to regulate orientation. There is a growing realisation that homosexuality is not an unmarried phenomenon and that there can be multiple phenomena inside the construct of homosexuality. Anti-homosexual attitudes, once taken into consideration, the norms get modified over time in many social and institutional settings like in the west. But, heterosexism, which idealises heterosexuality, considers it the norm, denigrates and stigmatises all non-heterosexual forms of behaviour, identity, relationships and communities, is likewise not unusual.

Gay-affirmative psychotherapies have been developed, which help humans cope with the attention of being same-intercourse orientated and with social stigmatization. There is no proof for the effectiveness of sexual conversion treatment plans. Such remedies also boost moral questions. In fact, there may be proof that such tries might also reason more damage than desirable, consisting of inducing depression and sexual dysfunction. Physicians must provide a clinical carrier with compassion and respect for human dignity for all of us no matter their sexual orientation.

The landmark judgement of the Delhi High Court, which declared that Section 377 of the Indian Penal Code violates essential rights guaranteed by way of the Constitution, turned into in keeping with international, human rights and secular and legal developments. However, the anti-homosexual attitudes of many spiritual and community leaders reflect the life of tremendous prejudice in India. Prejudice in opposition to extraordinary existence is part of many cultures, included in maximum religions, and is a source of conflict in Indian society.

Conclusion

The issue is not whether the court ousted L, G and B from the LGBT umbrella. The issue is that whether L or G or B or T, Section 377 has no business in a country that wants to be considered a liberal democracy in the 21st century. The government has to come to terms with that or hope that the Supreme Court does it for them by taking up the curative petition soon. Until then it will keep tripping up at home and abroad over the elephant in the room.

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What kind of work do lawyers in general corporate practice do?

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In this article, Saloni Sharma discusses kinds of work lawyers in general corporate practice do.

Introduction

India has been ranked 11th in the Global FDI Confidence Index 2018, making it the 2nd highest ranked emerging market for Foreign Direct Investment. With the scope of corporate industries and businesses increasing with time in India, there is a growing demand for a wide array of professionals in this sector.

The Bar Council of India’s official website mentions that the Indian legal profession consists of approximately 12 lakh registered advocates and approximately 60,000–70,000 law graduates from over 900 law schools join the legal profession in India every year. The practice of law has, however, changed drastically in the past few decades, the primary reason for the same is the liberalisation and growth of the Indian economy. The scope of the corporate legal sector is rapidly growing and has started outsourcing the legal service sector in India.

What does a corporate lawyer do?

If a law student wishes to pursue a career in the corporate sector, the following posts are generally available depending on the skills and capabilities of an individual:

  • Legal officer/manager
  • Legal advisor
  • Legal associate

A lawyer in a corporate setup mainly looks after the working of the corporation as per the governing rules and regulations of its authority supervising it. He is required to advise and take required action on a particular legal issue, within his authority.

A corporate company may either hire different in-house counsels, specialising in various legal departments for their work and they can look after all the legal matters of the company or, a company can hire a law firm in case of need for legal assistance for a specific issue. There is also a third procedure that is sometimes followed where an in-house counsel is authorised to hire or take the assistance of a law firm for a specific issue, i.e. the in-house counsel is given the responsibility to engage with a firm, he finds fit for the task and solves the issue accordingly.

Following are the various tasks a corporate lawyer has to undertake for the corporation:

Legal documentation

Right from the formation or establishment of a company or a corporation, a need for a legal attorney arises for the creation of a contract of incorporation and employment for its workers. Corporate attorneys help with the basic legal work related to establishment, organisation, dissolution of the company and also advise on the duties and responsibilities of the employees. They draft and review articles which elaborate on the creation of the company and specify the management of internal affairs. They may also be given the responsibility of formation of documents containing-policies, organisational structures, rules, licenses etc. in case of any dealings, business collaboration and negotiating commercial agreements in case of a transaction with other companies or trusts.

Attorneys may even be asked to form employment contracts, confidentiality agreement, agreements for breach or non-compliance with the contract etc.

Assistance regarding Mergers and acquisitions

A corporate lawyer dealing in mergers and acquisitions has to mainly provide assistance and suggest the legal ways to raise funds for the company and/or make space for the company in the market. One of the most common ways to earn money or acquire capital for running a corporation is buying and selling of a business or its assets. The lawyer has to prepare the documents and negotiate deals with the clients (if he is authorised to do so) or advise about the capital benefits on mergers/demergers/joint ventures across a wide range of industry sectors to the higher authorities.

In case of an agreement involving international clients, the lawyer also has to take care of the foreign laws and ensure that the deal is being carried on in compliance with the applicable regulations.

Look after Intellectual properties

Intellectual property includes copyrights, patents and trademarks which deals with protecting an idea, business strategy or trade secrets which are not to be used or copied by others.

  • Trademarks- generally include logos, brands, phrases etc.
  • Copyrights- protect the creation of the artists like photographs, designs, paintings, music, and write-ups.
  • Patents- include the invention or an essential feature of a product or process of manufacturing a product which is not obvious.

A company employs an intellectual property attorney to handle all such issues related to a company’s intellectual property. A lawyer has to ensure the protection of the company’s properties containing intellectual assets and file patents, copyrights and trademarks accordingly.

Handle Taxations

Tax lawyer helps a business run in accordance with the applicable laws by filing its tax returns. A tax lawyer gives suggestions on all tax-related issues of the company and ensures the legality of the commercial activities of the company. The lawyer may also suggest valid deductions, exemptions, and credits to relax the tax burden on a company by saving funds.

Corporate Litigation

Many a time, a lawyer in an organisational setup also has to practice litigation in relation to any business dispute of the company. The suit may be for a breach or violation of the terms of a contract by a party, taxation laws, mergers and acquisitions, intellectual property, corporate and real estate issues etc.

The daily job of a business litigator may include dealing with external counsels and resolving litigations, appearing before the court and addressing legal matters, drafting notices, affidavits, statements, plaint and petitions in a court. Many companies do not hire business litigators separately but ask the lawyers in the respective legal departments to take up the case falling within their area of expertise.

Advisory services

The primary task of a legal service advisor is to research and assist with various legal issues. The advisors often consult with the lawyers in different departments of a company (if present) to provide accurate and precise advice for the company.

Corporate Finance

The role of a corporate lawyer is often drawn with the responsibility of managing the private equity of the firm/company. A private equity lawyer advises on the structure of funds and investments, negotiates deals with other companies, advises on exits, and assists in raising funds for the company. You can learn more about the work of a private equity lawyer by clicking on this link.

Corporate recovery

The main task of a corporate recovery lawyer is to advise the creditor on different aspects of administration, rescues and liquidations, enforcement of securities etc. They advise on the procedure for debt recovery and file a suit for the same as and when required.

Commercial assistance

Commercial lawyers within a corporation advise on various sale and trade-related issues. These lawyers generally advise on how to manage and grow the business of the company. They also advise on manufacturing, marketing and distribution in order to expand the market for the business of the company.  

Pros and cons of working as a Corporate Lawyer in India

Though working in every field has its charm, but before choosing a career path, it is essential to understand the requirements and prospects of it thoroughly. Here are a few pros and cons that can help you to decide if you should opt for a career in Corporate Law:

Pros

  1. No need to establish yourself – Unlike litigation, working in a corporate setup does not involve setting up your own business and establishing yourself, instead, you get paid a stable and specific amount of salary every month.
  2. High paying job – A corporate lawyer is known to be among the highest paid employees of a company/firm.
  3. Job security  Corporate law offers a comparatively more secure job if you work hard and also a considerable amount of time is given to the employee to look for a new job in case one has to quit.

Cons

  1. Fixed working environment – A corporate set-up provides fixed working hours and place which doesn’t give space for an employee to explore more.
  2. Hectic Schedule – Corporate lawyers are one of the most overburdened employees of a company and often do not get time for their families at all.
  3. No say in decision making – Since a lawyer in a firm/company is asked to deal with or resolve certain legal matters he is not authorised to make decisions and has just an advisory role to play.

How to build a practice in corporate legal sector in India

Corporate legal practice in India is most sought for career among law students today. What it takes to build an excellent corporate legal practice in India? Hard work today, although an important part, but is not sufficient in itself. Hard work combined with efficient practical learning coupled with association with platforms which can provide you opportunities for honing your skills in the practical sphere of law is required today for building a strong practice in Indian corporate legal sector. Drafting, Vetting of Contracts, learning the basics of due diligence, understanding the first step of a Merger, these are the few important aspects of law, a law student needs to understand before even starting a practice as a transactional lawyer. Courses like these are helping law students a great deal. Law School syllabus in India rarely teaches a law student the actual ongoing issues in law.

What you need to learn as a law student for getting into corporate law?

  • You need to learn how to structure a business and choose a form most suitable for your requirements.
  • How to create an entity with that structure and deal with basic accounting, taxation and import export related requirements which any business would have to deal with.
  • How to set up and implement corporate governance mechanisms within your entity.  
  • You need to learn about contracts useful for businesses, the different parts of a contract and how these are negotiated and drafted. Contracts are almost a daily phenomenon in any business and so, this is a high utility module.

How to learn these skills

Lawyers, if you are looking to speak the language of your clients and support them at each stage of their business journey, this course will not only guide you about the stages the business will go through, but also inform the applicability of law at each stage. It will take you through the required compliance with detailed procedures and ample ready to use templates. This course can also help young litigators identify and capitalise on business opportunities early on. It can be a great support to your practice.

For professionals employed in the legal department, this course can not only guide on the applicability and how to comply, it can help on setting up compliance mechanisms and standing out in the eyes of your employers.

For law students, this course will act as the perfect bridge between what you learnt at law school and what you are going to face when you work or get into practice. You will be the one fresher who knows stuff without actually having worked at it, right from the daily grind of industry experts. You will be coached and mentored by professionals who have been achievers in their own fields.

Conclusion

“Find a job you enjoy doing, and you will never have to work a day in your life.”

  • Mark Twain

It is essential for a student to look for a suitable profession or a field that interests him/her in order to be successful and enjoy the work at hand.

Since a wide variety of opportunities and career options are available to a student passionate about the law, it is crucial that he/she takes his/her time to know exactly what to choose next. There are a number of subjects taught to a student in a law school every semester. One must explore the subjects they find appealing, and try to get a practical experience on that topic, which can help him/her further decide a career path for their professional life.

References

  1. https://www.imf.org/external/pubs/ft/wp/2004/wp0464.pdf
  2. http://www.dphu.org/uploads/attachements/books/books_3955_0.pdf
  3. http://www.mca.gov.in/Ministry/pdf/CompaniesAct2013.pdf
  4. https://www.hg.org/corporate-law.html
  5. http://www.barcouncilofindia.org/
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