Legal Aspect of Business: NMIMS Internal Assignment Applicable for June 2025 Examination

Legal Aspect of Business: NMIMS Internal Assignment Applicable for June 2025 Examination

Question 1 A startup named “SunDisk Pvt. Ltd.” specialises in software development. Initially, its Memorandum of Association (MOA) focused solely on developing enterprise software solutions. However, when market patterns changed, the business recognized profitable prospects in cloud computing services and artificial intelligence (AI) consulting. The board of directors decided to enter these segments without modifying the MOA. Soon after, a major investor raised concerns that these activities were ultra vires and could lead to legal consequences. The company now faces challenges related to business expansion, legal compliance, and shareholder confidence.

Based on the given scenario, highlight the challenges before SunDisk Pvt. Ltd. if the MOA continues to remain unamended. Please explain the challenge by emphasizing the doctrine of ultra vires under the Companies Act, 2013, and suggest potential solutions to avoid the company violating the provisions of Companies Act, 2013

(10 Marks)

Question 2 (A) Innovative Constructions Pvt. Ltd. signs a contract with the government to build a highway in two years. The contract includes terms about work deadlines and quality. However, the company faces three major problems:

Delay in Work: Due to supply chain problems, only 90% of the work is done on time. The government may take legal action for not completing the project.

Change in Contract: The company asks for extra time, and the government agrees, but some contract terms need to be changed.

Work Becomes Impossible: A new law bans an important material needed for the project. The company claims that the contract should end because completing the work is now impossible.

Question: Under the Indian Contract Act, 1872, explain how the company should handle these problems legally. Consider rules about performance (finishing the work), changing terms of the contracts by mutual agreement, and what happens when the work becomes impossible to perform. Mention relevant legal sections where

applicable.

(5 Marks)

Question 2 (B) Harish, a real estate developer, signs a contract with Mehta & Sons to build a luxury apartment complex in two years. The contract states that if the project is delayed,

Mehta & Sons must pay a penalty (liquidated damages). However, due to poor management, they fail to complete the project on time. Harish suffers financial loss and damage to his reputation.

Question:

Under the Indian Contract Act, 1872, what legal remedies does Harish have for this contract breach? What steps can he take to prevent further delays? Mention relevant legal sections.

(5 Marks)

Assignment Marks: 20

Instructions

• All Questions carry equal marks
• All Questions are compulsory
• All answers to be explained in not more than 1000 words for question Q1 and for question Q2(A) and Q2(B) in not more than 500 words for each subsection. Use relevant examples,illustrations as far as possible
• All answers to be written individually. Discussion and group work is not advisable.
• Students are free to refer to any books/reference material/website/internet for attempting their assignments, but are not allowed to copy the matter as it is from the source of reference.
• Students should write the assignment in their own words. Copying of assignments from other students is not allowed
• Students should follow the following parameter for answering the assignment questions

 

For Theoretical Answer
Assessment Parameter	Weightage
Introduction	20%
Concepts and Application related to the question	60%
Conclusion	20%

For Numerical Answer
Assessment Parameter	Weightage
Understanding and usage of the formula	20%
Procedure / Steps	60%
Correct Answer & Interpretation	20%

PLEASE NOTE: This assignment is application based, you have to apply what you have learnt in this subject into real life scenario. You will find most of the information through internet search and the remaining from your common sense. None of the answers appear directly in the textbook chapters but are based on the content in the chapter