AIOU 0460 Mercantile Law Solved Assignment 1 Spring 2025
AIOU 0460 Assignment 1
Q1. Keeping in view the Contract Act 1872, explain the following terms with one example for each:
i. Contract
ii. Agreement
iii. Void Agreement
iv. Illegal Contract
v. Voidable agreement
Contract: A contract is an agreement that is enforceable by law. It consists of an offer, acceptance, lawful consideration, and the intention to create legal obligations.
Example: A person agrees to sell their car to another for a specified price, and both sign a written agreement. This is a valid contract enforceable by law.
Agreement: An agreement is a mutual understanding between two or more parties regarding their rights and obligations. However, not all agreements are legally enforceable.
Example: If two friends agree to go on a trip together, it is an agreement but not a contract since it lacks legal enforceability.
Void Agreement: A void agreement is one that is not enforceable by law and has no legal effect.
Example: An agreement made by a minor to buy a property is void because minors are not legally competent to contract.
Illegal Contract: An illegal contract is one that involves unlawful activities and is prohibited by law. Such contracts are void and cannot be enforced.
Example: A contract for selling illegal drugs is an illegal contract and cannot be upheld in court.
Voidable Agreement: A voidable agreement is one that is valid but can be canceled by one of the parties due to certain legal reasons, such as coercion, fraud, or misrepresentation.
Example: If a person signs a contract under undue pressure, they have the right to declare it voidable and refuse to fulfill its terms.
Q2. Every contract involves a mechanism of offer and acceptance in a business. Explain in detail the legal provisions of offer and acceptance under the Contract Act 1872.
Every contract involves a mechanism of offer and acceptance in a business.
Offer (Proposal)
An offer is a declaration by one party expressing their willingness to enter into a legal agreement under specific terms. According to Section 2(a) of the Contract Act 1872, an offer occurs when one person signifies to another their willingness to do or refrain from doing something, expecting their assent.
Essential Features of a Valid Offer:
- Clear Communication – The offer must be clearly conveyed.
- Intent to Create Legal Relations – There must be an intention to form a legal agreement.
- Definiteness – The terms should be clear and unambiguous.
- Two Parties – There must be at least two entities involved.
- Types of Offers – Offers can be:
- Specific – Made to a particular person or group.
- General – Open to anyone who wishes to accept.
Acceptance
Once the offeree agrees to the terms laid out in the offer, Section 2(b) states that acceptance transforms the offer into a promise, completing the agreement.
Requirements for Valid Acceptance:
- Absolute and Unconditional – Acceptance must align with the terms of the offer.
- Communicated to the Offeror – The acceptance must be conveyed to the party making the offer.
- Proper Mode of Acceptance – If the offer prescribes a mode, it should be followed.
- Within a Reasonable Time – Acceptance should occur within the stipulated timeframe.
- Express or Implied – It can be verbal, written, or inferred from actions.
Revocation Rules
The Act also establishes how offers and acceptances can be revoked:
- An offer can be withdrawn before acceptance.
- Acceptance can be revoked before it reaches the offeror but not after.
These legal provisions ensure clarity in contract formation.
Q3. What is meant by the term free consent? Explain the various legal provisions regarding free consent in a contract.
Free consent refers to an agreement between parties that is made voluntarily, without any coercion, undue influence, fraud, misrepresentation, or mistake. It is a fundamental requirement for a valid contract under contract law.
Legal Provisions Regarding Free Consent:
The Contract Act of 1872 outlines the concept of free consent in Section 14, which states that consent is considered free when it is not influenced by:
1. Coercion – Forcing someone to enter into a contract through threats or physical harm.
2. Undue Influence – Exploiting a position of power to manipulate another party into agreeing.
3. Fraud – Deliberately deceiving a party to gain their consent.
4. Misrepresentation – Providing false information that leads to an agreement.
5. Mistake – When both parties misunderstand an essential fact of the contract.
Legal Effects of Free Consent:
- If consent is not free, the contract becomes voidable at the option of the aggrieved party.
- Section 19 states that contracts formed under coercion, fraud, or misrepresentation can be rescinded by the affected party.
- Section 20 declares that contracts based on mutual mistakes are void, meaning they cannot be enforced.
Q4. What is meant by the performance of the contract? Who can demand the performance of a contract? Explain in detail with examples the legal provisions regarding the performance of a contract.
The performance of a contract refers to the fulfillment of contractual obligations by the parties involved. It means carrying out the terms as agreed upon in the contract, whether by delivering goods, providing services, or making payments.
Who Can Demand Performance?
The right to demand performance of a contract generally lies with:
1. The Promisee – The person to whom the obligation is owed.
2. Legal Representatives – If the promisee passes away, their legal heirs or representatives can demand performance unless the contract is personal in nature.
3. Third Parties (in Some Cases) – In cases where the contract benefits a third party, that third party may demand performance.
Legal Provisions Regarding Performance of Contract
Here are some key provisions:
Performance by the Promisor (Obligated Party)
The promisor must perform the contract according to its agreed terms.
Example: If A contracts with B to deliver 100 bags of rice, A must fulfill this obligation within the stipulated time.
Performance by Legal Representatives
If a party to the contract passes away, their legal representative may be required to fulfill obligations, provided they are not personal in nature.
Example: A painter hired for a mural cannot have their heir complete the job, as the contract is personal.
Joint and Several Contracts
When multiple people are involved as promisors, all or any one of them can fulfill the contract unless stated otherwise.
Example: If three partners promise to pay a debt, the creditor can demand payment from any one or all of them.
Time and Place of Performance
Performance must be within the time agreed upon unless specified otherwise by law.
Example: If a contractor is hired to complete a building by December 2025, failure to do so may lead to breach of contract consequences.
Tender of Performance (Offer to Perform)
If the promisor offers to perform their obligations and the promisee refuses to accept, the promisor is discharged from their obligations.
Example: If A brings payment to B as required under the contract and B refuses to accept it, A has fulfilled their duty.
Reciprocal Promises
When obligations depend on each other, performance must be as per agreed sequence.
Example: A agrees to deliver goods once B makes payment. If B does not pay, A is not obligated to deliver.
These legal provisions ensure that contracts are enforceable and that obligations are met in good faith.
Q5. What is a contract of guarantee under the Contract Act 1872? Explain with examples.
A contract of guarantee is a legal agreement where one party (the surety) assures the performance or payment of a debt on behalf of another party (the principal debtor) in case of default. This type of contract plays a significant role in financial transactions, business dealings, and employment arrangements, providing an extra layer of security for creditors. Under Section 126 of the Indian Contract Act, 1872, a contract of guarantee is defined as a contract in which a third party (surety) undertakes to discharge the liability of the principal debtor if they fail to do so.
Key Features of a Contract of Guarantee
A contract of guarantee typically has the following essential features:
Three Parties: Principal Debtor (owes the debt), Creditor (receives the guarantee), and Surety (provides the guarantee).
Existence of a Debt or Obligation: The contract must involve a debt or obligation that the principal debtor must fulfill.
Consideration: A guarantee must be supported by lawful consideration benefiting the surety.
Liability of Surety: The surety’s liability arises only when the principal debtor fails to fulfill their obligation.
Writing or Oral Agreement: The contract can be oral or written, although written agreements ensure enforceability.
Secondary Liability: The surety holds secondary liability, meaning they are liable only if the debtor defaults.
Types of Guarantee Contracts
Specific Guarantee: Applies to a single transaction or debt. Once completed, the surety’s liability ends.
Example: A borrows $10,000 from B, and C guarantees repayment. The contract ends once A repays the loan.
Continuing Guarantee: Applies to multiple transactions over time, remaining valid until revoked.
Example: A supplier provides goods on credit, and a third party guarantees payment for future purchases.
Examples of a Contract of Guarantee
Loan Guarantee: X takes a loan from Y, with Z acting as a guarantor. If X fails to repay, Y can recover from Z.
Employment Guarantee: A company hires an employee based on a guarantee by a third party. If the employee fails, the guarantor is liable.
Business Transactions: A wholesaler provides goods to a retailer based on a third-party guarantee for payment.
Rights of Surety
Right of Subrogation: If the surety pays the debt, they can recover the amount from the debtor.
Right to Indemnity: The surety can seek compensation if misled or if legal obligations are breached.
Right to Discharge: The surety is freed from liability if the creditor alters contract terms unfairly.
Discharge of Surety from Liability
Revocation by Notice: In continuing guarantees, the surety can revoke future liabilities.
Variance in Contract Terms: Unauthorized changes by the creditor release the surety.
Release of Principal Debtor: If the creditor releases the debtor, the surety is discharged.
Creditor’s Misconduct: Misrepresentation or concealment frees the surety from liability.
Payment or Settlement: If the principal debtor repays the debt, the surety has no further liability.
Legal Consequences of Guarantee Contracts
Guarantee contracts have legal implications, with courts addressing disputes over misrepresentation, non-payment, contract alterations, and fraud.
Conclusion
A contract of guarantee ensures financial stability, minimizes risks for creditors, and strengthens trust in transactions. Whether in loans, employment, or business dealings, guarantees provide security. The role of a surety is significant, but liability depends on various legal conditions. Understanding these aspects helps businesses, creditors, and individuals navigate contracts effectively.
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AIOU 0460 Mercantile Laws Solved Assignment 2 Spring 2025
AIOU 0460 Assignment 2
Q1. What is a partnership? Explain in detail the rights and duties of partners in a partnership agreement under the Partnership Act 1932.
Understanding Partnership and the Partnership Act 1932
A partnership is a legal relationship between two or more individuals who agree to share the profits, responsibilities, and liabilities of a business. It is governed by mutual agreement, where partners work together to achieve their common business objectives. Partnerships provide flexibility, shared decision-making, and collective management, making them a preferred business structure in various industries.
The Partnership Act 1932 governs partnerships in Pakistan, defining the rights and duties of partners, the nature of partnership relationships, and the legal implications involved. It sets the foundation for how businesses should operate under a partnership arrangement, ensuring clarity and legal protection for all partners involved.
Rights of Partners under the Partnership Act 1932
The Act provides several rights to partners, ensuring their interests are safeguarded and their participation in decision-making is acknowledged.
Right to Participate in the Business: Every partner has the right to take part in the conduct of the business unless otherwise agreed. This ensures that partners are actively involved in business management.
Right to Share Profits: Partners are entitled to share the profits of the business in agreed proportions. If no specific proportion is mentioned, profits are distributed equally among all partners.
Right to Inspect and Access Books of Accounts: Each partner has the right to inspect the business accounts and access financial records. This enables transparency and accountability within the partnership.
Right to Compensation for Business Expenses: Partners who incur expenses on behalf of the business are entitled to reimbursement for legitimate business expenses.
Right to Indemnification: A partner is entitled to indemnification for losses incurred while acting in the ordinary course of business or under the authority of other partners.
Right to Property Usage: The firm’s property is used for business purposes only, and partners have a right to utilize the property according to agreed terms.
Right to Dissolution: Partners have the right to dissolve the partnership with mutual consent or under certain conditions prescribed in the Partnership Act 1932.
Right to Retire from Partnership: A partner can retire from the firm with the consent of other partners or as per the agreement, allowing an exit from the business relationship.
Right Against Expulsion: A partner cannot be expelled from the firm unless there is a legal agreement specifying expulsion terms.
Right to Engage in Third-Party Transactions: Partners can enter into agreements with third parties for the firm's benefit, ensuring the business continues to grow and sustain profitability.
Duties of Partners under the Partnership Act 1932
While partners have several rights, they also bear significant duties to ensure ethical business management and sustainability.
Duty of Good Faith and Honesty: Partners must act in good faith, ensuring honesty and integrity in business dealings. Deceptive or fraudulent practices among partners can lead to legal consequences.
Duty to Render True Accounts: Each partner is responsible for maintaining proper financial records and ensuring transparency in bookkeeping.
Duty to Avoid Conflict of Interest: A partner must not engage in activities that conflict with the partnership’s interest. Competing with the firm without consent may result in legal action.
Duty to Share Losses: Just as profits are shared, partners must also share losses incurred in business operations.
Duty to Work Diligently: Every partner is expected to work in the best interest of the firm with diligence and effort.
Duty to Provide Information: Partners must disclose all relevant information related to business operations. Hiding material facts can lead to disputes and legal action.
Duty to Avoid Unauthorized Transactions: Partners should refrain from making unauthorized business decisions without consulting other partners.
Duty to Maintain Confidentiality: Partners should not disclose confidential business information to external parties.
Duty to Maintain Partnership Property: The firm’s assets must be handled responsibly without misuse or unauthorized transactions.
Duty to Contribute Capital: If agreed upon, each partner must contribute capital as per the partnership agreement.
Conclusion
Partnerships provide a robust business structure that fosters shared management and financial collaboration. The Partnership Act 1932 ensures that partners operate within legal boundaries, protecting their rights while maintaining accountability for their duties. By following ethical business practices and honoring their obligations, partners can build a sustainable business model with long-term success.
Q2. Explain in detail the admission and retirement of a partner in the partnership under the Partnership Act 1932. Also, list down the rights of partners.
Admission and Retirement of a Partner under the Partnership Act 1932
Admission of a Partner
A new partner can be admitted into a partnership firm through mutual agreement between the existing partners. However, the process must adhere to the provisions of the Partnership Act 1932, ensuring legal compliance and smooth transition.
Conditions for Admission
Consent of Existing Partners: According to Section 31 of the Partnership Act 1932, a person can only be introduced as a new partner with the unanimous consent of the existing partners unless the partnership agreement states otherwise.
Agreement and Documentation: The new partner's rights and obligations must be documented through a revised partnership deed, which should specify profit-sharing ratios, duties, and liabilities.
Contribution to Capital: The incoming partner may contribute to the firm's capital, increasing the overall financial strength and investment potential.
Liability of the New Partner: A newly admitted partner is liable only for the firm's debts and obligations incurred after their admission. They are not responsible for previous liabilities unless explicitly agreed upon.
Effects of Admission
The firm's financial structure changes, impacting profit-sharing ratios and capital distribution.
A new skill set or expertise may be introduced, enhancing the firm's capabilities.
Existing partners may have to adjust to the inclusion of a new decision-maker, leading to managerial restructuring.
Retirement of a Partner
The retirement of a partner occurs when a partner voluntarily exits the partnership, transferring their rights and responsibilities to the remaining partners or a newly admitted partner.
Modes of Retirement
By Mutual Agreement: A partner may retire based on mutual consent under the terms set in the partnership deed.
By Notice: In cases of a partnership at will, Section 32 of the Partnership Act 1932 allows a partner to retire by giving prior notice to the other partners.
Expulsion: Under Section 33, a partner may be expelled from the firm if the partnership deed includes such provisions and the expulsion is carried out in good faith.
Rights of a Retiring Partner
Share in Profits and Assets: The retiring partner is entitled to their share in profits and assets based on the agreed valuation.
Settlement of Accounts: The firm must settle all dues payable to the retiring partner either through a lump sum payment or installments.
Liability After Retirement: If the partnership continues to use the retiring partner's name without explicitly notifying creditors, the retired partner may still be held liable for debts incurred.
Right to Compensation: In case of wrongful expulsion or forced retirement, the partner can claim compensation.
Effects of Retirement
The profit-sharing ratio is adjusted among the remaining partners.
The firm’s financial obligations may be affected, requiring restructuring.
There may be managerial and operational transitions to compensate for the retired partner’s absence.
Rights of Partners Under the Partnership Act 1932
Right to Participate in Business: Each partner has the right to be involved in the firm's management unless the partnership deed specifies otherwise. Every decision must be made collectively, allowing equal participation.
Right to Share Profits and Losses: Partners share the firm's profits according to the agreed-upon ratios, as mentioned in the partnership deed. If no specific ratio is set, profits are shared equally.
Right to Access Accounts and Records: Under Section 12, every partner has the right to inspect and verify the firm's accounts. This ensures transparency and prevents financial mismanagement.
Right to Indemnification: If a partner incurs expenses or liabilities while carrying out firm-related activities, they have the right to be reimbursed, provided the expenses were necessary and in good faith.
Right to Ownership of Property: The firm's property belongs to all partners collectively. No partner can claim exclusive ownership unless explicitly mentioned in the partnership deed.
Right to Retirement: A partner can retire by giving notice or through mutual agreement, ensuring flexibility in exiting the firm.
Right to Expel a Partner: Partners may expel a member under specific circumstances outlined in the partnership deed, but the process must be justified and conducted in good faith.
Right to Dissolve the Firm: If partners decide that the business is no longer viable, they have the right to dissolve the firm. The dissolution process must follow legal protocols.
Right Against Unfair Practices: A partner can challenge wrongful expulsion, fraudulent activities, or mismanagement within the firm, ensuring ethical business operations.
Conclusion
The Partnership Act 1932 provides a structured framework for handling admission and retirement within partnership firms, ensuring fairness and legal compliance. It also grants essential rights to partners, maintaining a balanced and transparent business environment. By understanding these provisions, partners can make informed decisions, safeguard their interests, and ensure smooth transitions within their firms.
Q3. Explain in detail the key points of the following concepts under the Negotiable Instruments Act 1881:
i. Endorsement and its types
ii. Holder in due course and his/her rights and duties
i. Endorsement and Its Types
Endorsement refers to the act of signing a negotiable instrument for the purpose of transferring rights to another party. The person who endorses the instrument is called the endorser, and the person to whom it is endorsed is the endorsee. Endorsements facilitate the smooth transfer of negotiable instruments, ensuring their negotiability.
Types of Endorsement
Blank Endorsement: The endorser signs the instrument without specifying the name of the endorsee. The instrument becomes payable to the bearer and can be further negotiated by delivery alone.
Special or Full Endorsement: The endorser specifies the name of the endorsee, making it payable only to that person or their order. Example: "Pay to Mr. Ahmed or order."
Conditional Endorsement: The endorsement is subject to a condition that must be fulfilled before payment can be made. Example: "Pay to Miss Zainab or order upon her attaining the age of 21 years."
Restrictive Endorsement: Limits further negotiation of the instrument. Example: "Pay to Mr. Bilal only."
Partial Endorsement: The endorsement is made for only a part of the amount mentioned in the instrument. Generally, negotiable instruments cannot be endorsed partially unless the payment has already been made for a portion.
Sans Recourse Endorsement: The endorser excludes their liability in case of dishonor of the instrument. Example: "Pay to Mr. Kamran or order, without recourse to me."
Facultative Endorsement: The endorser waives certain rights, such as the requirement for notice of dishonor. Example: "Pay Mr. Raj or order, notice of dishonor waived."
Endorsements ensure the smooth transfer of negotiable instruments, allowing businesses and individuals to conduct financial transactions efficiently.
ii. Holder in Due Course and His/Her Rights and Duties
A holder in due course (HDC) is a person who acquires a negotiable instrument in good faith, for consideration, and without knowledge of any defects in the title of the transferor. The HDC enjoys special privileges under the Negotiable Instruments Act, 1881.
Rights of a Holder in Due Course
Right to Enforce Payment: The HDC can demand payment from all parties liable on the instrument.
Right to Assume Free and Clear Title: The HDC is presumed to have obtained the instrument free from defects in title. They are protected from defenses that prior parties may have against each other.
Right to Sue on Presentment: The HDC can sue the parties liable on the instrument if payment is refused.
Right to Treat the Instrument as Negotiable: The HDC can further negotiate the instrument unless it has been restrictively endorsed.
Right to Sue All Parties Jointly or Severally: The HDC can take legal action against any or all parties liable on the instrument.
Right to Retain the Instrument: The HDC has the right to hold the instrument until payment is made.
Duties of a Holder in Due Course
Presentment for Payment: The HDC must present the instrument for payment within a reasonable time.
Notice of Dishonor: If the instrument is dishonored, the HDC must notify the prior parties to hold them liable.
Good Faith and Consideration: The HDC must acquire the instrument in good faith and for valuable consideration.
Compliance with Legal Requirements: The HDC must ensure that the instrument is properly endorsed and stamped.
The holder in due course enjoys significant legal protections, making negotiable instruments a reliable means of financial transactions.
Q4. Discuss in detail the rules regarding the delivery of goods under the Sale of Goods Act 1930. Also, discuss the concept of ‘let the buyer be aware.
Rules Regarding the Delivery of Goods under the Sale of Goods Act 1930
The Sale of Goods Act 1930 governs the sale of goods, outlining rules for delivery. Delivery refers to the voluntary transfer of possession from the seller to the buyer.
Meaning of Delivery
Section 2(2) defines delivery as the voluntary transfer of possession. It can be physical, constructive, or symbolic.
Forms of Delivery
There are three types: actual (physical transfer), constructive (change in ownership without movement), and symbolic (representing goods via a document or key).
Duties of the Seller Regarding Delivery
The seller must ensure timely delivery and follow contract terms (Section 32). Goods should be delivered in proper portions if applicable.
Time and Place of Delivery
Delivery must occur within the agreed timeframe or within a reasonable period. The place of delivery is either specified in the contract or defaults to the seller’s business or residence.
Partial Delivery
The seller cannot force partial delivery unless the buyer accepts it. Acceptance of a portion may create an obligation to accept the full quantity.
Risk and Liability in Delivery
Risk transfers to the buyer upon delivery unless stated otherwise (Section 26). If goods are damaged before delivery, the seller remains liable.
Delivery by a Third Party (Carrier)
If a third party transports goods, ownership and risk transfer according to contract terms.
Buyer’s Obligation to Accept Delivery
The buyer must receive goods when delivered. Refusal without valid reason allows the seller to claim damages.
Consequences of Non-Delivery
If the seller fails to deliver, the buyer may cancel the contract or demand specific performance if the goods are unique.
Concept of ‘Let the Buyer Be Aware’ (Caveat Emptor)
The principle “Caveat Emptor” means “let the buyer beware.” It highlights the buyer’s responsibility in ensuring the suitability of purchased goods.
Meaning and Importance
Buyers must inspect goods before purchase, as sellers are not liable for defects unless explicitly stated.
Application in the Sale of Goods Act 1930
Section 16 states that no implied warranty exists unless specified in the contract. This reinforces caveat emptor.
Exceptions to Caveat Emptor
Exceptions include goods purchased by description, specific-purpose goods, fraud or misrepresentation, and explicit warranties.
Impact on Modern Commerce
Modern consumer laws provide additional safeguards, requiring sellers to disclose critical information.
Conclusion
The Sale of Goods Act 1930 ensures proper delivery and contractual compliance while caveat emptor emphasizes buyer responsibility. Consumer laws today balance buyer protections with seller obligations.
Q5. Explain in detail the rights of the workers as per the Factories Act 1934 and the Workmen Compensation Act 1923.
The Factories Act 1934
Right to a Safe Working Environment: Employers must ensure clean and well-ventilated factory conditions, proper waste disposal, and safeguards for dangerous machinery.
Right to Reasonable Working Hours: Workers cannot be required to work more than nine hours a day or 48 hours a week. If they work overtime, they must be compensated fairly.
Right to Rest and Weekly Holidays: Workers are entitled to one holiday per week, usually Sunday, with proper compensation if required to work on holidays.
Right to Compensation for Overtime Work: Any work beyond the prescribed hours must be compensated at a higher rate.
Right to Health and Hygiene: Factories must provide adequate sanitation facilities, clean drinking water, and proper lighting to maintain worker health.
Right to Workplace Safety Measures: Protective gear, fire prevention measures, and emergency exits must be provided in workplaces dealing with hazardous materials.
Right to Protection from Harassment and Exploitation: Workers should have access to complaint mechanisms and protection against unfair labor practices.
Right to Employment of Young Persons: Children under 14 cannot work in factories, and adolescents must have medical fitness certification to work.
Right to Fair Wages: Workers must receive timely and full payment of wages, with no unjust deductions.
Right to Welfare Amenities: Factories must provide medical aid, first aid kits, restrooms, and maternity benefits for female workers.
Right to Protection Against Workplace Accidents: Employers must compensate workers in case of workplace injuries or hazards.
Right to Leave: Workers are entitled to annual, sick, and casual leave.
The Workmen Compensation Act 1923
Right to Compensation for Workplace Injuries: Employers must compensate workers for injuries sustained during employment.
Right to Compensation for Occupational Diseases: Long-term illnesses due to hazardous exposure qualify workers for compensation.
Right to Compensation for Permanent Disability: If a worker suffers permanent disability due to a workplace accident, they must receive financial support.
Right to Compensation for Fatal Workplace Accidents: In case of death due to a workplace accident, dependents must receive financial compensation.
Right to Compensation Irrespective of Employer Negligence: Compensation must be provided regardless of fault in most cases.
Right to Compensation for Temporary Disability: Workers must receive weekly compensation during recovery from workplace injuries.
Right to Employer Responsibility in Hazardous Workplaces: Employers must ensure workplace safety and preventive measures.
Right to Legal Action Against Unpaid Compensation: Workers can take legal action if employers fail to provide compensation.
Right to Protection Against Unjust Dismissal After Injury: Employers cannot terminate workers due to workplace injuries.
Right to Compensation Even in Cases of Work-Related Travel: Injuries sustained during official travel also qualify for compensation.
Right to Coverage for Medical Expenses: Employers must bear medical costs for injured workers.
Right to Rehabilitation and Support: Permanently disabled workers must receive rehabilitation and financial support.
Conclusion: The Factories Act 1934 ensures worker safety, fair labor practices, and hygienic conditions, while the Workmen Compensation Act 1923 provides financial relief for workplace injuries and accidents. Together, these laws safeguard industrial workers’ rights and welfare.
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