QA Series 15 - Legal Points Part 7

 

The Banking Tutor

Question Answer Series 2025

S No 15                                                                    29-06-2025

Legal Points – Part 07 

151. What is a Contingent Agreement ? 

A contingent agreement is a contract where the obligation to perform (or not perform) a certain action depends on the occurrence or non-occurrence of a specific future event, which is uncertain at the time the contract is made. This means the contract's validity and enforceability are tied to whether or not this uncertain event happens. 

152. What is an Injunction in Law? 

An injunction is a court order restraining a person from doing a particular act. So, a court may grant an injunction to stop a party of a contract from doing something he promised not to do. 

153. What is a Prohibitory Injunction ? 

In a prohibitory injunction, the court stops the commission of an act. 

154. What is a Mandatory Injunction ? 

In a mandatory injunction, the Court will stop the continuance of an act that is unlawful. 

155. What is a Breach in the context of Contract? 

A breach of contract is a violation of any of the agreed-upon terms and conditions of a binding contract. 

156. What is an Anticipatory Breach (in the context of Contracts) ? 

An anticipatory breach is a breach of contract before the time of performance. 

157. Who is a Consumer as per Consumr Protect Act, 2019 ? 

As per the CP Act 2019 , a person is called a consumer who avails the services and buys any good for self-use. 

158. What is Product Liability ? ( CP Act 2019) 

As per the 2019 Act, product liability means the responsibility of a product manufacturer or product seller, or product service provider, to compensate for any harm caused to a consumer by a defective product manufactured or sold or by deficiency in services in relation to the product. 

159. What is TRIPS ? 

The acronym TRIPS stands for Trade-Related Aspects of Intellectual Property Rights. It is an international agreement administered by the World Trade Organization (WTO). The agreement sets down minimum standards for the regulation by national governments of different forms of intellectual property. 

160. What are Inellectual Proprty Rights? 

Intellectual property rights (IPR) are the legal rights granted to individuals or entities over their creations of the mind, such as inventions, literary and artistic works, designs, and symbols used in commerce.

161. What is Right of Paternity ? 

The right of paternity, also known as the right of attribution, is a moral right that allows the creator of a work to be identified as the author. It is a fundamental aspect of copyright law, ensuring that the creator receives recognition for their work. 

162. What is Tax Year ? (Income Tax Act) 

The introduction of the concept of Tax Year - The Act 2025 introduced the concept of  "tax year" replacing both the Financial Year (FY) and the Assessment Year (AY). Income-Tax Act, 2025, define the Tax Year as follows:

It is a 12-month period that begins on April 1st and ends on March 31st of the following year. 

For a newly established business or profession, the Tax Year starts from the date of the establishment. 

163. What is the primary purpose of Limitation Act? 

The primary purpose of the Limitation Act is to establish time limits (limitation periods) within which legal actions, such as suits, appeals, and applications, can be initiated.

164. How the limitation period can be extended ? 

The limitation period can be extended by obtaining acknowledgement of debt in writing from the borrower before expiry of the prescribed period of limitation, limitation period is extended. 

Limitation period is extended when borrower of his duly authorized agent makes part repayment of the loan, before expiry of the documents. Evidence of such payments should be under the signature of the borrower or his authorized agent. 

165. What is the remedy available in case of loan documents expired ? 

If the limitation period expires it can be extended only by executing fresh set of documents. Fresh limitation period will be available from the date of execution of such documents. 

166. What is the limitation period in case of  a Demand Promissory Note? 

3 years from the date of DP Note. 

 

167. What is the limitation period in case of A Bill of exchange payable at sight or upon presentation? 

3 years when the bill is presented. 

168. What is the limitation period in case of An Usance Bill of exchange ? 

3 years from the due date. 

169. What is the limitation period in case of Money payable for money lent ?

 3 years from the loan was made. 

170. What is the limitation period in case of a Guarantee ? 

3 years from the date of invocation of the guarantee. 

171. What is the limitation period in case of a Mortgage – enforcement of payment of money ? 

12 years from the date the money sued becomes due. 

172. What is the limitation period in case of  a Mortgage – foreclosure ? 

12 years from the money secured by the mortgage becomes due. 

173. What is the limitation period in case of A mortgage – possession of Immovable property ? 

30 years when the mortgagee becomes entitled to possession. 

174. What is meant by Foreclosure ? 

Foreclosure is a legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments to the lender by forcing the sale of the asset used as the collateral for the loan. 

175.  What document to be obtained to extend period of limitation in case of Mortgages ? 

Acknowledgement of Security to be obtained from the Mortgagor. In some cases Mortgagor may be different from the Borrower. 

Sekhar Pariti

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