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Here, P = Rs 85000, R = 7 p.c.p.a., T = 2(1/2) years = 2.5 years 

∴ Total interest = (P x R x T)/100

= (85000 x 7 x 2.5)/100

= (85000 x 7 x 25)/(100 x 10)

= 85 x 7 x 25

= Rs. 14875

∴ The total interest received by Shrikant at the end of the period is Rs 14875.

Factors affecting Price of product / service 

(a) Internal Factors: 

1. Marketing Objectives 

2. Marketing Mix Strategy 

3. Organizational considerations

Meaning of Consideration :

Consideration, in general, means ‘something in return. The agreement is legally enforceable only when supported by consideration, i.e. when both the parties give something and get something in return. According to Pollock : consideration is the price for which the promise of the other is bought and the promise thus, given for value is enforceable.”

Example: Anita promises Babita to guarantee payment of price of goods, which Babita sells on credit to Celine. Here, selling of goods by Babita to Celine is consideration for Anita’s promise.

Legal rules regarding to consideration : 

1. It must move at the desire of the promisor. If it is done at the instance of a third party or without desire of the promisor, it will not be a good consideration. 

2. It is not essential that only the promisor must gain or loose from consideration. 

3. Consideration may move from the promisee or any other person. 

4. Consideration can be in the form of an act or an abstinence or forebearance or it can be a return promise also.

5. It may be present, past or future.

6. Every contract must have some consideration. It should be adequate or necessarily be equal in value with something given. Consideration must however be something to which the law attaches value. 

7. It must be real, competent and not illusory.

8. Consideration must be legal/lawful, and not illegal, immoral. Consideration opposed to public policy also makes a contract void. 

9. It must be something which the promisor is not already bound to do. 

10. The general rule is that an agreement made without consideration is void. Sec. 25 deals with the exception to this rule. In such cases, with the exception to this rule. In such cases, the agreements are enforceable even through they are made without consideration.

Such cases are :

• A promise to pay for a past voluntary service is binding.
• Promise to pay a time-bound debt.
• No consideration is necessary to create an agency.
• When there is contract of donation, or completed gift, no consideration is required.

Meaning of Free Consent : 

Consent is said to be free when two or more persons are said to consent when they agree upon something in the same sense (Sec. 13). According to Sec. 11, all the agreements are considered as contracts if they are made by free consent of parties.

Consent is said to be free when it is not caused by :

1. Coercion as defined in Sec. 15. 

2. Undue Influence. 

3. Fraud. 

4. Misrepresentation. 

5. Mistake, subject to the provision of section, 20, 21 & 22.

1. Agreement by way of wager (Sec. 30). 

2. Agreement made without consideration (Sec. 25).

1. There must be at least two parties for the offer. 

2. The proposal/offer may be negative or positive.

When the law confers an authority on a person to act as an agent for another, without requiring the consent of that other in certain circumstances, such agency is called agency by necessity.

Legal Provisions Related with End of Contract : 

Discharge of a contract/end of a contract means the termination of the contractual relationship between the parties. A contract is said to be discharged when the rights and obligations created by it come to an end. A contract may be discharged in the following modes :

1. By performance. 

2. Discharge by agreement or consent. 

3. Discharge by impossibility of performance. 

4. Discharge by lapse of time. 

5. Discharge by operation of law. 

6. Discharge by breach of contract.

Legal Provisions Related with Breach of Contract : 

When a contract is broken by one of the party to a contract, the other party can treat the contract as discharged, so that he is absolved of the performance of his part of the promise.

When there is breach of contract, the injured party who is not involved in breach has one or more of the following remedies :

1. Recision of the contract 

2. Suit for damages 

3. Suit upon quantum meruit 

4. Suit for specific performance of the contract 

5. Suit for injunction.

For any contract, to have a legal consideration, it should have lawful consideration which means ‘something in return. The agreement is legally enforceable only when supported by consideration, i.e. when both the parties give something and get something in return. Without consideration, a contract becomes void.

Legal provisions related to offer are as follows : 

1. There must be at least two parties for the offer. 

2. The proposal may be negative or positive. 

3. Proposal can be implied or expressed, specific or general. 

4. Proposal should be made to create legal relationship. 

5. Offer must be such as in law it is capable of being accepted and it gives rise to legal relationship. 

6. Offer must be distinguished from : 

•  a declaration of intention, 
•  an invitation to make an offer to do business. 

7. Offer must be communicated for getting acceptance. Ignorance of the offer is not acceptance and does not confer any right on the acceptor. 

8. Offer must be definite, unambiguous, certain, and not loose and vague.

Legal Provisions Related to Acceptance

1. Acceptance must be absolute and unqualified. 

2. It must be communicated to the offeror in some perceptible form. It must be according to the mode prescribed or usual or reasonable mode. 

3. Acceptance can be given orally or in writing or by conduct. 

4. It must be given within the time limit specified if any time limit is given. It no time is stipulated, it must be given within a reasonable time. 

5. An acceptance given without any offer made, is not deemed to be acceptance and it holds no importance. It was held in “Lalman Vs. Gauri Dutt” case, that an acceptance of the offer in ignorance of the offer is no acceptance and does not confer any right on the acceptor. 

6. Acceptance must be given to the party or parties to whom the offer is made. When an offer is made to a particular person, it can be accepted by him alone. If it is accepted by any other person, there is no valid acceptance. 

7. The acceptance of an offer cannot be implied from the silence of offeree or his failure to answer, unless that offeree has, by his previous conduct, indicated that his silence means that he accepts. 

8. Acceptance cannot precede an offer. If it does, it is not a valid acceptance and does not result in a contract. 

9. Acceptance must show an intention on the part of the acceptor to fulfill the terms of the promise.

1. Contract of pledge is concerned only with movable property. 

2. Delivery is necessary to complete a pledge. 

3. The goods to be pledged should be divisible 

4. Existing goods can be pledged, for a specific purpose.

1. By performance. 

2. Discharge by lapse of time.

A contract by which one party promises to save the other from loss caused to him by the conduct of the promisor himself.

i. Total interest = (P x R x T)/100

= (4200 x 7 x 3)/100

= Rs. 882

Amount = Principal + interest

= 4200 + 882

= Rs. 5082

ii. Total interest = (P x R x T)/100

∴ 1200 = (P x 6 x 4)/100

∴ (1200 x 100)/(6 x 4) = P

∴ P = Rs. 5000

Amount = Principal + interest 

= 5000 + 1200

= Rs. 6200

iii. Total interest = (P x R x T)/100

∴ 800 = (8000 x 5 x T)/100

∴ (800 x 100)/(8000 x 5) = T

∴ T = 2 years

Amount = Principal + interest

= 8000 + 800

= Rs. 8800

iv.  Amount = Principal + Interset 

∴ 1800 = Principal + 6000 

∴ Principal = Rs. 12000

Total interest = (P x R x T)/100

∴ 6000 = (12000 x 5 x T)/100

∴ (6000 x 100)/(12000 x 5) =T

∴ T = 10 years

v. R = 2(1/2)% = 2.5%

∴ Total interest = (P x R x T)/100

∴ 2400 = (P x 2.5 x 5)/100

∴ 2400 = (P x 25 x 5)/(100 x 10)

∴ (2400 x 10 x 100)/(25 x 5) = P

∴ P = Rs. 19200

Amount = Principal + interest

= 19200 + 2400

= Rs. 21600

A contract of guarantee is a contract to perform the promise Or discharge the liability of a third person in case of his default.

Quasi contracts are agreements which are not decided by the parties by interacting with each other. It presumes the existence of contract between the parties by law or that the law created the contracts.

Anyone can be appointed as an agent, but minors and persons of unsound mind can be dangerous to the principal.

A contract of ‘guarantee’ is a contract to perform, to promise or to discharge the liability of a third person in case of his default.

Agency means the relationship between a principal and an agent. The essence of agency is that the principal gives authority to his agent to establish contractual relationship with other third persons. Indian Contract Act has not defined agency, but sections 182-238 deal with agency relationships only.

Rights of an Agent : 

Following are the rights of an Agent:

1. Rights to receive remuneration. 

2. Right of lien. 

3. Right of indemnification against all consequences of all lawful acts done by him in exercise of the authority conferred upon him. 

4. Right of compensation for injuries sustained by him by neglect or want of skill on the part of the principal. 

5. Right of stoppage of goods in transit, in respect of his payments against the principal.

Duties of an Agent : 

1. To carry out the work undertaken according to the directions given by the principal. 

2. To carry out the work with reasonable care, skill and diligence. 

3. To render account to his principal. 

4. Not to make secret profits from the agency. 

5. To communicate with principal in case of difficulty. 

6. To pay sums received for or on behalf of the principal. 

7. To protect and preserve the interests of principal in case of his death or insolvency. 

8. To delegate his authority with the consent of his principal by appointing sub-agents.

Essential features of contract of guarantee : 

1. The undertaking to be given by surety under contract of guarantee must be on the request of principal debtor. 

2. The primary liability is that of the principal debtor. The liability of surety is secondary. It arises only when there is a default committed by the principal debtor. 

3. For a valid contract of guarantee, it is essential that the creditor must reveal all the facts related to the principal debtor, which may effect the liability of surety, clearly. 

4. The contract of guarantee may be oral or written, or both. 

5. If guarantee given by surety is not at the request of principal debtor, in such a case, the contract is not taken as a valid one. 

6. The liability of the surety can neither be more nor less than that of the principal debtor. 

7. Liability of the surety remains same when the contract between the creditor and the principal debtor is void or voidable. 

8. The lunacy of the surety will discharge him of his future liability towards the guarantee given. 

9. After paying/meeting all the liabilities of the principal debtor, the surety acquires all the rights of the principal debtor against the principal debtor. 

10.If any changes are made in the terms of the contract by the principal creditor and his principal debtor without informing the surety, in such case, the surety is discharged of his liability.

(A) Rs 300

The interest on Rs 3000 at certain rate of interest is Rs 600. 

Let us suppose the interest on Rs 1500 at the same rate is x. 

∴ 600/3000 = x/1500

∴ x = Rs 300

The first WTO conference was held at in Singapore 1996.

TRIMs are related to conditions or restrictions in respect of foreign investment in the country.

GATS is the first Multilateral set of rules covering trade in services like banking, insurance, transportation, communication, etc.

It is the financial transaction and does not have any impact on production.

(d) Tsunami current

Gaining Ratio means the ratio by which the share in profit stands increased. It is computed by deducting old ratio from the new ratio.

Gaining Partner is a partner whose share in profit stands increased as a result of change in partnership.

Senor means a word of respect like  in Mister English.

Match the following :

a) long, double-breasted coat.

Any one factor cannot be considered responsible for landslide, but many joint factors cause landslides. 

The responsible factors for landslide or mudslide can be divided into two categories: 1

. Natural factors 

2. Man – made factors.

1. Natural factors: Structure of rocks, slope of land, folding and prolapse in rocks, amount of rainfall, vegetation cover, etc. are some factors responsible for landslides. Weathering is the natural procedure of rock deterioration that leads to weak, landslide suspective materials. Erosion caused by sporadic water such as streams, rivers, wind, currents, ice and waves wipes out latent and lateral slope support, enabling landslides to occur easily.

Most of the events of landslides take place in newly-folded mountaining regions as the process of rising of mountains goes on continuously. Because, in this process, edges of rocks become weaker and there is sharp slope. In these conditions, high amount of rainfall works as lubricant for landslide, and from the weaker joints, rocks start to slope downwards, and if it is heavy rainfall, they come down with a noise of thunder.

Earth’s gravitational force also helps in this process. With sharp slope, gravitational force also increases. Rapid landslides occur in the slopes of more than 45°. That is why, there are a number of events of landslides during the rainy season on Konkan railway route in the Western Ghats. In the mountains, rivers cause land erosion. In mountainous regions, rivers cut the base of the lands and the mountains, and hence, events of landslides occur.

2. Man – made factors: Natural disasters like landslides have increased in number due to insensible development done by mankind; forests have been over – exploited for obtaining paper, wood and timber. Due to deforestration, roots of trees loose their grasp over the soil as well as on land.

Man – induced landslides may result from changes in slope caused by terracing for agriculture, cut and fill construction for highways, construction activities, mining operations, rapid draw-down of the dams, and changes in irrigation or surface run – off.

(a) Seasonal disaster

Factors affecting disaster management are:

1. Economic condition. 

2. Positive thinking. 

3. Spirit of Cooperation. 

4. Population density. 

5. Social honesty and faith. 

6. Geographical conditions. 

7. Availability of the means of transport and communication.

1. Economic condition: The economic position of a country is an important factor of disaster management. A strong economic position always favors disaster management, otherwise it is against. If the economic condition of a country is sound, it provides developed and latest resources and other equipment. In poor economic condition, it is very hard to manage the disaster. 

2. Positive Thinking of the Individuals: Positive thinking plays an important role during hazards and disasters. In unfavorable conditions, positive thinking and attitude is helpful to recover from a difficult situation. Positive thinking and attitude is the best reserve for the individuals, family and the society in such conditions.

3. Spirit of Cooperation: Management is a process of the adjustment of people in which different persons are joined with each other in the form of a link. During a disaster, cooperative spirit among the people is the most important as well as the most helpful. With the help of the spirit of cooperation, great misery can be easily overcome. 

4. Population Density: Population density of a country also affects the disaster management at large. More densely-populated regions need more rescue equipment, time, money and cooperation, otherwise, lesser time, money, equipment are needed. 

5. Social honesty and faith: During disaster management, social honesty and faith are most valuable. If we lack in them, then various tough situations arise, which are more difficult and challenging than disasters. Hence, social honesty, dedication and faith are the most essential elements. 

6. Geographical Conditions: Geographical conditions also affect disaster management at large. Climate, surface structure, condition of water – flow, composition of soil found in the effected region not only affect the disaster management, but also very much affect the rescue process. 

7. Availability of Means of Transport and Communication: Disaster management cannot be possible without availability of proper means of transport and communication. If this is proper enough and of high quality, then disaster management becomes easier and rescue operations can be done effectively, otherwise it causes failure in the disaster management.

An earthquake is the shaking of the earth surface, resulting from the sudden release of energy in the earth’s lithosphere that creates seismic waves. To face this disaster, governmental, social and individual efforts and cooperation is essential. 

The following measures can be adopted to minimize the effect of an earthquake:

Before the Arrival of Earthquake:

1. Develop a network of seismic instruments, so that forecast about an earthquake can be made by studying the movements inside the earth. 

2. Make a meticulous inspection of the houses and workplace to determine if there are structural dangers. 

3. Build structures only on firm land. 

4. Identify and take measures to reduce the dangers that are present in our homes, neighborhood and the work place. 

5. Secure the potentially – unstable furniture to the floor and the walls.

 6. Remove heavy objects from high places. 

7. Move beds away from dangerous places. 

8. Secure the gas tanks and water heaters to the wall.

During an Earthquake:

1. Move away from the houses. 

2. Keep calm, take a moment to think about the consequences of what you are going to do. 

3. Implement familiar and community emergency plans. 

4. Make a fast initial inspection in case there are people stuck somewhere. 

5. Verify, if there are fires and do not make unnecessary calls. 

6. If you detect any gas leak, close the main valve, open the windows and get away from the building. 

7. Disconnect the electrical service if there are faults in the electrical system of the property. 

8. Do not touch cables or electric posts that have fallen to the ground. 

9. Do not go outside for gossip and to spread rumors. 

10.Help and cooperate with visual impediments. 

11.Cooperate with civil defense and other authorities of emergency and public security.

Disaster management can be defined as the organisation and management of resources and responsibilities for dealing with all the humanitration aspects of emergencies, in particular, preparedness, response and recovery, in order to lessen the impact of a disaster. The main objective of disaster management is to perform the given responsibilities in time.

The disaster of landslide usually occurs in the rainy season.

Budget line is downward sloping because if a consumer wants to buy more of one good, he has to buy less of the other good, given his income.

The first important feature of a mixed economy is the co-existence of both private and public enterprise. In fact, in a mixed economy, 

There are three sectors of industries:
(i) Private Sector : Production and distribution is managed and controlled by private individuals and groups. Industries in this sector are based on self-interest and profit- motive. The system of private property exists and personal initiative is given full scope.

(ii) Public Sector : Industries in this sector are not primarily profit-oriented but are set up by the state for the welfare of the community.

(iii) Joint Sector : A sector in which both the government and the private enterprises have equal access, and join hands to produce a commodity, leading to the establishment of joint sector.

Secondly, a mixed economy is a planned economy, i.e., an economy in which the government has a clear and definite economic plan.

Thirdly, in a mixed economy, balanced regional development is expected.

Fourthly, in a mixed economy, a dual system of pricing exists.

It is a line showing different combination of a set of two goods that the consumer can buy, given his income and prices of the goods. It shows price ratio between good-X and good-Y.

Monotonic preferences refer to a situation when consumption increases along with the total utility.

GDP or Gross Domestic Product is the total value of goods produced and services provided in a country during one year and is used to measure a country’s economy. The data is collected by the Central Statistics Office (CSO) that falls under the leadership of the Ministry of Statistics and Program Implementation.

No, if a consumer has monotonic preferences then bundle (10, 8) is pre{erred to bundle (8, 6) as bundle (10, 8) has more of both goods.

Value of final goods and services produced with in domestic (economic) territory of a country

National Product is the market value of the final goods and services produced in the economy during the period of an accounting year, inclusive of Net Factor Income from Abroad

Subsidies are the 'economic assistance' given by the government to the firm's and households, with a motive of the general welfare.

In the short run, Marginal Cost curve is U-shaped because of the Law of Variable Proportions.

Any one example like smoke out of chimneys of factories. release of contaminated water into river, traffic jams or any other

(a) Imports > Exports