Commercial Law for Bihar Judiciary 2024 [Important Sections and Free Notes]

Overview: Commercial Law holds a lot of weightage in the Bihar Judicial Services 2024 Prelims and Mains examination.

Sometimes, knowing which areas to target in Commercial Law becomes difficult. In the preliminary examination, commercial law is a part of Paper II (Law Paper) for 150 marks. Roughly, Commercial Law has 18-25% weightage in the entire paper. 

In Mains examination for Bihar Judiciary 2024 the questions from Commercial law are not mandatory to answers these questions are optional. However if the candidate chooses Commercial Law, then the paper is of 150 marks.

There are four acts to focus on for Commercial Law for Bihar Judiciary 2024: 

1. Sale of Goods Act 
2. Negotiable Instrument Act 
3. Company Law 
4. Partnership Act 

In this Article we will cover:

Important sections of Sales of Goods Act for Bihar Judiciary 2024

Important sections of Negotiable Instrument Act

Important Sections in Company Law

Most asked sections in Indian Partnership Act

Strategy to study Commercial Law for Bihar Judiciary 2024

Download FREE Notes for Bihar Judiciary 2024 by Judiciary Gold

In this article we are giving you a list of all the important sections which you need to cover, you have to study from the Bare Act to get into the details of the section, we have also given notes that you can refer to and use for your preparation of Commercial Law for Bihar Judiciary 2024. The sections mentioned below are a compilation most asked and important sections asked previously in Bihar Judiciary 2024 Examinations. 

Download Free Notes For Commercial Law from Judiciary Gold

Important sections of Sales of Goods Act for Bihar Judiciary 2024 Prelims and Mains

About Sales of Goods Act 1930 contains several important sections that govern the sale of goods in India. Here are some of the key sections of the act for Commercial Law for Bihar Judiciary:

Get details: Bihar Judiciary 2024 Exam Pattern

Download Elementary Science Notes by Judiciary Gold

Sections	Key Pointer
Section 2	Definition of "Goods" - This section defines what constitutes "goods" under the act, stating that goods include every kind of movable property, except actionable claims and money.
Section 4	Sale and Agreement to Sell - This section distinguishes between a sale and an agreement to sell. In a sale, the property immediately passes to the buyer, whereas, in an agreement to sell, the property will pass at a future time or on certain conditions.
Section 5	Contract of Sale - This section defines a contract of sale as a contract where the seller transfers or agrees to transfer the ownership of goods to the buyer for a price.
Section 6	Existing or Future Goods - It deals with the distinction between the sale of existing goods and future goods, outlining when the property in the goods passes.
Section 7	Goods Perishable in Nature - This section specifies that if the goods are perishable in nature and the buyer is in default in accepting delivery, the seller can sell the goods and claim damages for any loss suffered.
Section 8	Goods must be ascertained - For a contract to be valid, the goods must be ascertained at the time of making the contract. If they are not, the contract is void.
Section 9	Price - This section specifies that the price in a contract of sale must be money, and it may be fixed by the contract or determined in accordance with the contract.
Section 12 - 15	Conditions and Warranties - These sections define conditions and warranties in a contract of sale and outline their effects and consequences when breached.
Section 16	Implied Conditions as to Title - It deals with the implied condition that the seller has the right to sell the goods and that the buyer shall enjoy quiet possession of the goods.
Section 17	Sale by Description - This section deals with sales by description and the requirement that the goods must correspond with the description.
Section 18-30	Performance of the Contract - These sections outline the duties and obligations of both the seller and the buyer regarding the performance of the contract.
Section 31	Delivery - It discusses the rules related to the delivery of goods, including the place and time of delivery.
Section 36	Transfer of Title by Non-Owner - It outlines that if the seller is not the owner of the goods but sells them as if they are, the buyer acquires no better title than the seller had.
Section 39	Risk - This section discusses when the risk in the goods passes from the seller to the buyer.
Section 45	Sale by Auction - It deals with the rules governing sales by auction, including when a sale is considered complete.
Section 55	Rights of Unpaid Seller - This section outlines the rights of an unpaid seller against the goods and the buyer.

Download FREE Notes of Transfer of Property Act by Judiciary Gold

Check now: Bihar Judiciary dates 2024

Important sections of Negotiable Instrument Act for Bihar Judiciary 2024

The Negotiable Instruments Act, 1881, is a crucial piece of legislation governing negotiable instruments like promissory notes, bills of exchange, and cheques in India. If you're preparing for the Bihar Judiciary 2024 exam, here are some important sections of the Negotiable Instruments Act that you should be familiar with:

Free Judiciary Examination Mock Test By Judiciary Gold

Sections	Key Pointers
Section 4	Promissory Note - This section defines a promissory note as an instrument in writing containing an unconditional promise to pay a certain sum of money to a specific person or to the bearer of the instrument.
Section 5	Bill of Exchange - It defines a bill of exchange as an instrument in writing containing an unconditional order to pay a certain sum of money to a specific person or to the bearer of the instrument.
Section 6	Cheque - This section defines a cheque as a bill of exchange drawn on a specified banker and payable on demand.
Section 13	Negotiation - It explains the concept of negotiation and how a negotiable instrument can be transferred by endorsement and delivery.
Section 14	Holder in Due Course - This section defines a "holder in due course" and outlines the privileges and protections afforded to such a holder.
Section 16	Liability of Maker of a Note and Drawee of a Bill - It establishes the liability of the maker of a promissory note and the drawee of a bill of exchange.
Section 18	Liability of Acceptor - This section deals with the liability of the acceptor of a bill of exchange.
Section 20	Liability of Drawer - It specifies the liability of the drawer of a dishonored bill of exchange.
Section 25	Crossing of Cheques - This section explains the process of crossing a cheque and its significance in ensuring safe payment.
Section 30	Dishonour of a Negotiable Instrument - It outlines the circumstances under which a negotiable instrument may be dishonored.
Section 31	Notice of Dishonour - This section specifies the requirement for giving notice of dishonour to parties concerned.
Section 37	Liability of the Endorser - It discusses the liability of an endorser of a negotiable instrument in case of dishonour.
Section 138	Dishonour of Cheque for Insufficiency of Funds - This is a significant section related to dishonour of cheques due to insufficient funds, which is a common issue in financial transactions.
Section 139	Presumption in Favor of Holder - It establishes a legal presumption that the holder of a dishonored cheque is entitled to receive the amount mentioned, unless proven otherwise.
Section 142	Cognizance of Offence - This section specifies the procedure for initiating legal action against a person for dishonouring a cheque.
Section 143	Power to Prescribe Further Penalties - It allows the government to prescribe further penalties for offenses under the act.
Section 147	Offenses by Companies - This section holds officers of a company liable for offenses committed by the company.
Section 148	Non-Applicability to Bearer Cheques - It clarifies that certain provisions of the act do not apply to bearer cheques.

Check out: Bihar Judiciary exam preparation.

Download FREE Notes of Indian Contract Act for Judiciary

Important Sections in Company Law in Commercial Law for Bihar Judiciary 2024

Company Law is one of the most vast subjects for Commercial Law in Bihar Judiciary 2024 examination and therefore you must focus on the key areas more while studying the entire Act. Here are the important sections for your to refer:

Sections	Key Pointers
Section 2(20)	Definition of "Company" - This section defines a "company" as a company incorporated under the Companies Act.
Section 2(68)	Definition of "Private Company" - It defines a "private company" and specifies the conditions that must be met for a company to be classified as such.
Section 2(71)	Definition of "Public Company" - This section defines a "public company" and outlines the characteristics that differentiate it from a private company.
Section 12	Registered Office of the Company - It mandates that every company must have a registered office to which all communications and notices may be addressed.
Section 42	Private Placement of Shares or Debentures - This section regulates the private placement of securities by companies and imposes certain conditions and restrictions.
Section 53	Prohibition on Issue of Shares at a Discount - It prohibits companies from issuing shares at a discount except in certain specified circumstances.
Section 62	Further Issue of Share Capital - This section deals with the provisions for the further issue of share capital by companies.
Section 73	Prohibition on Acceptance of Deposits - It regulates the acceptance of deposits from the public by companies and prescribes the conditions and procedures for the same.
Section 149	Appointment and Qualifications of Directors - It lays down the qualifications and disqualifications for the appointment of directors in a company.
Section 164	Disqualifications for Appointment of Directors - This section specifies the circumstances under which a person is disqualified from being appointed as a director.
Section 165	Number of Directorships - It limits the number of directorships that a person can hold simultaneously in different companies.
Section 185	Loans to Directors - This section regulates loans and advances to directors and specifies the conditions under which such transactions are allowed.
Section 188	Related Party Transactions - It governs transactions between a company and its related parties, including disclosure and approval requirements.
Section 241	Oppression and Mismanagement - It provides for remedies against oppression and mismanagement in a company.
Section 271	Winding Up by the Tribunal - This section deals with the winding-up of companies by the National Company Law Tribunal (NCLT).
Section 403	Fee for Filing, etc. - It specifies the fees payable for various filings, applications, and documents with the Registrar of Companies.
Section 447	Punishment for Fraud - This section prescribes penalties for various fraudulent activities, including false statements and misrepresentation.
Section 454	Adjudication of Penalties - It outlines the procedure for adjudication of penalties under the Companies Act.
Section 463	Power to Exempt Class or Classes of Companies - It grants the government the authority to exempt certain classes of companies from specific provisions of the Act.

Read More: How To Prepare For Bihar Judiciary Prelims 2024

Download Smart Study Plan for Judiciary Exams 2024

Most asked sections in Indian Partnership Act for Bihar Judiciary 2024

The weightage of Indian Partnership act is between 10-20% in the commercial law for Bihar Judiciary 2024 paper, here are the sections for you to focus on for your Bihar Judiciary 2024 Mains and Preliminary exams:

Sections	Key Pointers
Section 4	Definition of Partnership: Defines partnership as the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all.
Section 5	Partnership Agreement: Details the essential elements of a partnership agreement, including mutual consent, sharing of profits, and mutual agency.
Section 6	Mode of Determining Existence of Partnership: Explains the factors to consider when determining the existence of a partnership, including sharing of profits, ownership of property, and the conduct of the parties.
Section 7	Partnership at Will: Describes a partnership "at will," which can be dissolved by any partner at any time without notice.
Section 9	Duties of Partners: Outlines the duties of partners, including the duty to act in good faith, exercise reasonable care, and indemnify the firm for losses caused by their fraud.
Section 12	Rights of Partners: Specifies the rights of partners, such as the right to participate in management, share profits, and access the firm's books.
Section 15	Right to Inspect Books: Grants partners the right to inspect and copy the books of the firm.
Section 25	Liability of Partners: Addresses the unlimited personal liability of partners for the debts of the firm and their joint and several liability.
Section 29	Implied Authority of Partner as an Agent of the Firm: Defines the implied authority of partners as agents of the firm in the ordinary course of business.
Section 30	Partner’s Authority in an Emergency: Covers the special authority of partners to act in emergencies.
Section 32	Insolvency of a Partner: Discusses the consequences of a partner's insolvency and the dissolution of the firm in such cases.
Section 34	Expulsion of a Partner: Details the circumstances and procedures for expelling a partner from the firm.
Section 36	Holding Out: Explains the concept of "holding out" and the liability of a person who represents himself as a partner.
Section 39	Dissolution of a Firm: Enumerates the various modes of dissolution, including by agreement, on the happening of certain events, and by a court order.
Section 40	Dissolution by Agreement: Discusses dissolution by the mutual agreement of partners.
Section 42	Rights of Partners on Dissolution: Specifies the rights of partners to have the firm's property applied in payment of debts and to share any surplus.
Section 46	Continuing Authority of Partners for Purposes of Winding Up: Addresses the authority of partners to act for the purpose of winding up the firm's affairs after dissolution.
Section 57	Rights of Transferee of a Partner’s Interest: Explains the rights of a transferee who acquires a partner's interest in the firm.
Section 58	Registration of Firms: Discusses the voluntary registration of partnership firms and the legal benefits it confers.

Know more:  Best books for the Bihar Judiciary Exam 2024

Download Functions of Judiciary Notes

Strategy to study Commercial Law for Bihar Judiciary

Commercial Law in prelims has 18-25% weightage in paper II and in mains there is an optional paper of 150 marks, you can refer to the following tips for your preparation:

Strategy for Bihar Judiciary Prelims 2024 (4 weeks):

All the aspirants who are preparing from scratch for Bihar Judiciary can follow this strategy, and there is only a little time left for the examination. However, if you have a lot of time (3-4 months) to prepare, you can expand the given strategy in months and focus more on revising. For a detailed personalised approach reach out to our mentors.

Download Framing Of Charges Notes by Judiciary Gold

• Week 1: Start with marking all the important sections in your Bare Act, include the sections mentioned above and take reference from PYPs (Previous Year Papers). Read all the sections and highlight the key areas. Start reading and also make notes. You can start with, for example, the Indian Partnership Act.
• Week 2: You can pick another act; for example, Companies Act, identify the important concepts and sections, highlight them and make notes while studying. Make time (30-45 minutes) daily to revise the Indian Partnership Act.
• Week 3: This week, focus on the Negotiable Instruments Act and the Sales of Goods Act. Daily study for 3-4 hours and also revise the Indian Partnership Ac and Companies Act (try giving 30-45 minutes each).
• Week 4: In the final week, ensure that you revise all four acts and solve as many questions related to commercial law. (300-350 questions daily).

Read More: Fill Bihar Judiciary Application Form 2024

Download Sales of Goods Act Notes by Judiciary Gold

Strategy for Bihar Judiciary Mains 2024 (4 weeks):

You might not get a lot of time between your prelims result and mains examination, therefore here is a quick strategy for 4 weeks. Make sure that you focus on commercial law only if you want to choose it as the optional paper for answer in the mains examination. For personalised preparation strategy reach out to our mentors:

• Week 1: Revise Indian Partnership Act from the notes that you have made and also practice answer writing (solve 3-4 questions daily). Get your answers reviewed by your mentors and faculties and work on your weaknesses.
• Week 2: You can choose Companies Act, solve (4-5) questions daily and get them checked by your faculty. Solve questions from Indian Partnership Act as well. Revise using your notes.
• Week 3:  Revise Negotiable Instruments Act and Sales of Goods Act, practice at least 16-20 questions for all the four subjects daily, get them reviewed.
• Week 4: Solve as many Previous Year Papers as possible, track your progress and work on your weak areas.

Know more: Read about all the latest Vacancies of Bihar Judiciary 2024

Download CPC Notes by Judiciary Gold

Conclusion:

For the Bihar Judiciary exam or any other judicial examination, it's essential to have a strong understanding of commercial law. 

To excel in the Bihar Judiciary exam, it's essential to study all the topics mentioned in this article thoroughly, understand the sections, and try to apply them to hypothetical legal scenarios to get a better understanding.

Additionally, reviewing recent amendments and landmark judgements in commercial law can further strengthen your preparation. All the best to all the aspirants preparing for Bihar Judiciary!