Facts about 0% EMI Finance Schemes | InvestmentYogiInvestmentYogi

Facts about 0% EMI Finance Schemes | InvestmentYogiInvestmentYogi:


This festival season you might have decided to upgrade your television set from LCD Flat Screen to LED Smart Television or purchase Samsung Note Book / Apple Iphone / Nokia Lumia replacing your old Android Mobile Handset, etc. Attractive promotional schemes from manufacturing companies and retail stores will roll out in the market from this week as Navratri – the first festival of the season is commencing from 5th Oct, 2013 followed by Dussehra, Diwali and Christmas. When we look at the statistics of last few years, purchase of consumer goods through 0% finance schemes has attracted many customers and sales through this scheme has contributed 20-30% to top-line for retailers in the market. However, before you take a decision to purchase consumer goods and get trapped in some promotional offers we recommend avoid 0% emi finance schemes offered by banks or credit cards because there are some hidden costs and disadvantages attached to it, which we will discuss in this article. Now, RBI has also stepped in from 24th Sep, 2013 to halt 0% finance schemes offered by banks to purchase consumer goods.

Disadvantages of purchasing consumer goods on 0% finance schemes are as follows:

1) Processing and documentation fees

Banks charge one time processing and documentation fees from customers, while purchase on 0% finance schemes. The fees vary from bank to bank, but will be in the range of Rs 500 to Rs 1,000. So, this will be additional cost on products you have purchased.

Take an example, Mr Abhishek opts to purchase 42 inch LED Smart Television Set which costs Rs 60,000 from store. Now, he applies for 0% finance scheme to pay monthly EMI on his purchase. To apply for the EMI schemes, he shells out additional cost of Rs 1,000 against processing and documentation charges. Now, his LED set would cost him for Rs. 61,000 (inclusive of processing charges).

2) Pay interest rates on your purchase

As per information gathered from various retail stores, it can be said that banks are charging hefty interest rates from customers while purchase on these finance schemes with 0% EMI. Interest rates vary for six months and nine months tenor among banks. These interest rates are as follows:

Banks                         6 months tenor     9 months tenor

State Bank of India  4.25%                     6.35%

HDFC Bank               5.2%                        7.25%

ICICI Bank               4%                            6-6.15%

Now, after RBI intervention in the 0 interest finance schemes to purchase consumer goods, banks such as SBI, Axis bank, Kotak Mahindra, etc have already withdrew zero percent facilities.

Taking forward Mr. Abhishek’s example, the cost price of Rs 60,000 for LED will have additional cost of interest expense over it. So, consider if he had opted to purchase LED with 6 months tenor (EMI instalments) from ICICI bank. The interest rate applicable will be 4% on his purchase. Now, EMI for 6 months will be Rs 10,117. So, at the end of 6 EMIs, total amount he pays off is Rs 60,702. So, purchase of RS 60,000 has now led him to pay additional cost Rs 1,702 (Rs 1,000 processing fee + Rs 702 interest cost).

3) Losing out on discount while shopping

Retail stores and shop dealers on roadside offer discount when you opt to purchase through cash or debit card. This discount varies on your negotiation skills and brand of the product you opt to purchase. I did a survey in few retail stores and dealer shops to understand cash discount they are ready to offer if shown interest to book the order immediately and pay full amount by debit card. Retail stores offered me cash discount in the range of 3-5% on purchase of LG, Panasonic, Toshiba, Onida, etc LED sets. On the other hand, dealer shops on roadside offer cash discounts between 5-10% while purchasing similar brands and models from them. But, getting a discount on Sony and Samsung LED’s is a difficult task as they are market leaders and have marginal operating price across all retail / dealer stores in India. However, it’s possible to get a price break or complementary gifts of Rs 2000 to Rs 2,500 on Sony and Samsung LEDs, but require smart negotiation skills to deal with the Store manager / Associates.

Next time, before stepping into a retail store to purchase any consumer good, get a best price for the same product from a nearby dealer store. Then, take a decision to purchase from a store which saves money from your pocket and gives better sales service.

Here, we can say Mr. Abhishek missed an opportunity to save Rs 3,000, assuming 5% cash discount on purchase of Rs 60,000 LED set. Instead, he paid Rs 61,702 for LED costing Rs 60,000 in the market.

Set your preferences before stepping out for shopping consumer goods

There are few questions which you require an answer to, before stepping out to purchase any consumer products in the market. There is a high probability you will be confused with various brands and features in the market. So, take an example of Mr. Abhishek, who decides to purchase LED television set. The points he would discuss with his family / wife will be:
Size of the LED set required to be installed in drawing room
Should we give preference to brand or additional features at best price?
Whether we want to buy from retail store or nearby dealer shop?
Payment option i.e. 0% emi finance scheme or cash (debit card)?
Set a budget price for consumer product you intend to purchase.

Based on a survey at few retail and dealer stores, I would like to share some insights as follows:
Associates at these stores tried to push products which have attractive features and gives them better commission (profit) on sales if you have not decided your preference before stepping out for shopping.
Associate gives demo of branded LEDs like Samsung and Sony on request but makes them inferior in features while compare to other brands like LG, Panasonic, Toshiba, etc. Also, prices of Samsung and Sony are much higher compared to other brands, so consumer easily gets diverted to other known brands while purchasing to get additional features at discounted price compared to branded market leaders. So, here if you have set your preference clearly, you will not fall in the trap of seller while shopping.

Conclusion

Let us calculate in table the total savings Mr. Abhishek will have from purchase of LED on cash with discount.

Particulars      Purchase on 0% finance schemes         Purchase on cash with discount
Cost price of LED (Rs)                 60,000                                             60,000
Add: Processing Fee (Rs)                  1,000                                             0
Add: Interest Payable (Rs)                 702                                                 0
Less: Cash Discount (@5%)                  0                                               3,000
Total Cost (Rs)                   61,702                                                         - 3,000
Total Savings (Rs)                4,702
Additional Expense Incurred (%) 8% (approx.) by opting for 6 months financing scheme


With purchase on cash, Mr. Abhishek has saved Rs 4,702 as computed above. This saving can be utilised for other expenses (shopping) or invest in short term FD to earn cumulative interest. So, for consumer benefit, RBI has also intervened and is now against 0% finance schemes on emi offered by banks at retail / dealer stores. They want shoppers (consumers) to do shopping on debit card/cash and get additional benefit of discount from stores. So, improve your negotiation skills to get the best price for consumer goods of your preference and enjoy your shopping in this festival season….!!!!!

The author has presented his personal views in this article through knowledge and interaction with people at few retail/dealer stores in Mumbai.

About the Author:

Hiral Thanawala is a PGDM (Finance) graduate and Certified Financial Planner with an experience of over 5 years in equity market and personal finance domain. He can be reached at expert@investmentyogi.com
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Speakers for the National Law Day 2013

The Speakers at National Law Day 2013 include..

Dr. Subhash C Kashyap Dr. Subhash C. Kashyap (born 10 May 1929) is a former Secretary-General of 7th Lok Sabha, 8th Lok Sabha and 9th Lok Sabha and Lok Sabha Secretariat (Lower House of Parliament of India) from 1984 to 1990. He is well known Political Scientist, expert in Indian Constitution, Constitutional Law, Parliamentary Experts and distinguished scholar.  Ram Jethmalani Ram Jethmalani is an Indian lawyer and politician. He has served in various posts such as Union Law Minister and Chairman of Bar Associations. Ram Jethmalani is known as a legal personality. He completed his law at an early age of 18. He was elected a member of parliament in 6th and 7th Lok Sabha Dr. Daggubati Purandareswari Dr. Daggubati Purandareswari was first elected to the 14th Lok Sabha from Bapatla parliamentary constituency in Andhra Pradesh in 2004 and successfully completed her full term. Subsequently, she contested the general elections of 2009 from Visakhapatnam parliamentary constituency and became victorious with huge majority of votes. From the very initial year she proved to be an effective Nirmala Samant Former Mayor of Mumbai, Nirmala Samant Prabhavalkar is a High Court Advocate, member of India’s National Commission for Women (NCW) and former Chairperson of Maharashtra State Women’s Commission.  Her focus lies in implementing Government Schemes specially formulated for Women and Children in India. Her efforts and contributions for empowering women have an endless list.  Bisheshwar Prasad Singh Honourable Shri Bisheshwar Prasad Singh was appointed as the Chief Justice of Bombay High Court on 31st March 2000. His Lordship was born on 9th July 1942. Studied at St. Xavier’s School, Patna and St. Columbia’s School, New Delhi. Passed his Senior Cambridge Examination in 1958 in 1st Division. Studied at Hindu College Delhi University.  Mahesh Jethmalani Shri Mahesh Jethmalani is a Senior Advocate at Bombay High Court, He completed his Bachelor of Arts from St. Xavier’s College, Mumbai and his Master of Arts from Oxford University. Mr. Jethmalani has appeared in several important cases before Bombay High Court and Supreme Court of India. He has represented the Birla family in the Priyamvada Birla case. He also appeared for Anil Ambani in the Reliance Case.

The wandering wig - combining a career at the Bar with a passion for travel writing- Legalweek

Mixing a criminal negligence practice with voyages to far-flung places, John Gimlette is one of a number of travel-writing barristers.

Bristling beneath the red braces and sensible specs is an individual whose itchy feet and curious mind compete with the comforts of an Everyman schedule – paperwork, family life, walking through the same chambers door for the last 27 years. The sound of those tectonic plates sliding, grating and shaping each other is palpable as barrister and travel writer John Gimlette (pictured) muses on balancing the rigours of the law with a taste for the road.

Over the last decade, Gimlette has journeyed across Latin America, Newfoundland and Labrador, Austria and France for his second career. How has he found time to maintain a career at the Bar and publish four books on those trips in the meantime?

In short, a three-year cycle of meticulous planning and travelling when chambers are quieter makes it work, diary-wise. But it feels natural to Gimlette to work two jobs side by side, and that one of them is travel writing. The clinical negligence barrister was born into a family of wanderers who maintained careers in the professions as well.

Gimlette spent his school summer holidays ferrying and flying solo between England and a family friend’s farm in Ireland, infusing him with the family wanderlust and the compulsion to write it down in diaries. At 17 he travelled to Hong Kong with his mother by Russian ferry, connecting at Nadkhodka on the Sea of Japan with an eight-day train (taking the Trans-Siberian Railway home; “I think my mother secretly wanted to do it herself, but thought it would be interesting for me to do, too,” he says).

“My great-uncles were army doctors who wrote histories of Nepal and India – my great-uncle John wrote Malay Poisons and Charm Cures in 1915, still published today. He had a compendious knowledge of jungle medicine that hasn’t been bettered. My grandfather was a GP and an amateur archaeologist; he wrote books on prehistoric agriculture that remain authoritative. So travelling and writing are in the blood.”

His legal and travel interests almost merged once. In his second year at Cambridge he took his summer holiday in Northern Pakistan to write a legal article on the status of refugees there. But the article never materialised.

“It didn’t really work because at that time, refugees were mixed up with the migration population anyway, and I was a bit naive about how to place the article,” he says. “But I had a fascinating time. It was a good experience in how law and travel can interface – probably the only time when the two have really meshed. Though the effect was to raise my interest in writing.”

Gimlette is quick to make plain that his travel writing has no effect on his commitment to his clients. But sometime even he isn’t sure where one job starts and the other ends. “You have to ask yourself, ‘which is the real life? That one, or this?’” he says, fresh from court and sipping tea in the chambers at One Crown Office Row. Far from existing separately, he sees a strong intellectual relationship between the work of a barrister and that of a travel writer.

“I couldn’t do one without the other,” he says. “There is a strong connection because both jobs involve the assimilation of huge amounts of information. In my clinical negligence work I might get many lever arch files of documents; somehow, I’ve got to work out from that what the crux of a case is. It might be the distillation of just a few documents,” he continues. “Likewise with travel writing, I might read 70 books, record 20 hours of interviews and take a couple of thousand photos on one three-month trip. That all has to be meaningfully whittled down into 130,000 words.”

Gimlette is one of several wandering wigs. His number includes Joseph O’Neill, the Irishman whose critically-acclaimed 2009 book on emigrating, Netherland, stormed the States, and Charles Foster, a member of the Outer Temple Chambers and author of several volumes on theology and travel. Another is Sadakat Kadri, a member of the New York Bar who has published numerous travel guides.

This year Gimlette has been promoting his latest book, Wild Coast, documenting his trip through the Guianas which, among other intrepid outings, finds him stumbling across the site of the infamous 1978 Jonestown massacre in northern Guyana, long since reclaimed by the dank, grasping jungle. There are guns, goldpanners, crims – as far from Bar life as you can go. “I still get culture shock,” he says. “I find it hard adjusting where there are high levels of poverty, where people have really big health issues and where there is a lot of crime. There have been times when I’ve thought, ‘I just want to go home’ – then I get used to it.”

His three-year planning cycle works travelling and writing around quieter parts of the working year back home. “In a way, my travel writing plans are better mapped out than my legal work. I travel in the summer or around the end of the year,” Gimlette explains. “But if I’ve only got three months it has to be clearly structured – not quite to the day, but I need to know what I’m to see, where I’ll go and who I’ll interview. For Wild Coast I spoke with the Guyanese communities in London and Paris first, then spent hours trawling the internet and in the library at the Royal Geographical Society; it takes a year to put a book together.”

Apart from completing and promoting Wild Coast, Gimlette says this year has been spent in chambers. In 2012 he’ll weave researching his next book around being at chambers and will take his next trip later that year, in one three-month stint or two one-and-a-half-month ones. “In 2013 I’ll write the book in about 100 days spread across the year, which involves taking time off and a dip in legal income.”

Of the three broad phases in writing his books – researching, writing and returning to chambers – Gimlette favours the writing, but finds the latter welcome relief from the cabin fever.

“You’re flogging your imagination to find new ways to express yourself, and concentration is very intense... I find it hard to switch off,” he admits. “I’m quite glad after a few weeks of that to come back. This is a job where you can go away and still come back to a job. And I come back a better barrister for having been away – I value the law work more knowing what it’s like to do something else.”

The wandering wig - combining a career at the Bar with a passion for travel writing- Legalweek:
by Melanie Stern
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Contract Law: A Unique solution for corruption free politics - An Interesting Read

National development of a country is based on a sound social, economic and political system and it can sustain only when these systems are free from corruption, specially politics. Corruption is the synonym of politics today. Politicians have forgotten their legal and ethical duties towards the people and towards their nation. During elections they promise to provide a better government to the nation but after winning, they remain engaged in scams, corruption and other illegal activities. To curb these activities Indian Penal Code, Prevention of Corruption Act, etc have been enacted but all in vain because administration of law and justice becomes puppet before their muscles and money power. The Lokpal law was considered to be the ray of hope but its demand is still not fulfilled by the government. In this paper an attempt is made to present a totally different legal weapon to fight against corruption, not in criminal law but in civil law, especially in The Contract Act 1872. This Act has capability to be the best to eradicate corruption from Indian politics.
The landmark decisions of Hon'ble Courts in Balfour v Balfour, Carlill v Carbolic Smoke Ball Company and many more are in support of this view. Lokpal and other laws will be required no more if this Act is applied. Lord Stovel had said that contract is not a joke to pass time; it is that powerful medium by which we can explore the "Right to reject" and this right is the demand of present. The author through this paper is exploring the hidden power of the Contract, which can stop corruption in Indian politics and also suggesting the minor changes required to make this Act capable to be the best anti corruption law of India.

Introduction
The whole India is suffering from a disease popularly known as "corruption" and it is now on incurable stage due to its corrupt political system. Therefore removal of corruption from politics is the most important task (the giant task). Here the question is "what is corruption?" 

Corruption Corruption is an act which is done with intent to give somebody (including himself) undue benefit and which is inconsistent with the legal and official duties and the rights of people. It is understood an act against law; such as, giving money to get a government job or to get a judgment in one's favor etc. It includes bribery, supply of girls etc.
In a simple word corruption means to get work by means of illegal gratification. Politicians of India were not corrupt at the time of its transformation from slave country to democratic country .Mahatma Gandhi, Sardar Patel, Lai Bahadur Shastri etc. were some of them. But India is that unfortunate country where above great leaders took birth and presented a value-based ethical politics, is now facing the problem of corruption. As we all know that India has a system of Executive Parliament, therefore, Centre Government, State Government, their offices and even Public Corporations are not untouched by the untouchable disease of political corruption. This political corruption has polluted not only the government acts but also the industries, educational system, society and even the valued culture of India's age long civilization. 

According to the report of Transparency International's CPI of 2012, India's image on tackling corruption has not improved. In the list of most corrupt countries it is at 94th position out of 176 nations. Recent example is helicopter deal scam, while 2 G spectrum case, fodder scam (Chara Ghotala), uniform scam etc. are already well known scams. Thus corruption is that cancer like disease which has developed its poisonous roots in the nation's body and is killing its life. Contract In a general sense contract means a deal between two parties. In The Contract Act 1872 under section 2(h) it is defined as an agreement enforceable by law is a contract. When we try to understand it we find two phrases in this definition. The first is "enforceable by law" that means legal assistance and protection is available on dispute, while second is an agreement which is defined in section 2 (e). This section states that every promise and every set of promises, forming the consideration for each other, is an agreement.
Here we again find two key words in this definition.
The first is consideration which means something in return while another is promise which is defined in section 2 (b) and states that when offer is accepted it becomes a promise. Promise is also having two key words, one is offer and the second is acceptance. It is here not noteworthy that for offer and acceptance at least two parties are required. Section 10 of The Indian Contract Act 1872 says that these parties must be competent according to the Indian Majority Act 1875, and their agreement must be based on free consent with lawful consideration and for lawful object.
Contract Law:
How Capable to Fight Against Corruption in Politics Now the question arises that how Contract Law is capable to eradicate corruption from Indian politics. To understand it we have to look the essentials of contract, as prescribed in section 10 and in other provisions of ICA 1872. It can be presented as follows:
Competent Parties Offer and Acceptance. Not based on family or social relationship. Terms and Condition must be certain Received free consent of parties. Agreement must not be declared void by law. Consideration and Object must be lawful. Time and place must be certain. Analysis of Politics as Contract (during elections) Politics during elections is contract because it has all the features of contract, for this we analyze the politics during elections on the basis of essentials of contract required under section 10 and above mentioned description.
Offer in Politics during election Section 2(a) of Indian Contract Act defines it as When one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other to such act or abstinence, he is said to make a proposal. Here at the time of election the contesting politician makes proposal/ offer to the people that he would give a fair and corruption free governance, employment, education, health facilities to the people if public cast vote in his favor and make him winning candidate. It is an express offer and communication of this offer is also completed by means of propaganda. Acceptance in Politics during election Section 2 (b) of this Act defines it that When a person to whom the proposal is made, signifies his assent thereto, the proposal is said to be accepted. Here when a candidate is won it means his offer was accepted by the people and in such a manner as prescribed by the offerer. It is notable here that, politician's offer was of general nature because it was given to the people. Rules regarding communication state that acceptance must also be communicated in such way as offer was communicated. But in Carlill v Carbolic Smoke Ball Company [1893] Q.B. 256 (C.A.)'s case the court decided that for general offer, communication of acceptance is not necessary.
Facts of this case in brief are as follows:
Carbolic Smoke Ball Co. manufactured and sold The Carbolic Smoke Ball by placing ads in various newspapers and offered a reward of 100 pounds to any person who after its contract influenza, colds, or any other disease. Carlill purchased and used it as directed but contracted influenza and made a claim for the reward. Carbolic Smoke Ball refused to pay and plead that the acceptance was not communicated by Carlill, The court held that a person who makes an offer may decline to require notice of acceptance if he or she wishes. To accept an offer, a person need only follow the indicated method of acceptance. If the offerer either expressly or impliedly intimates in his offer that it will be sufficient to act without giving notice of acceptance, performance is sufficient acceptance without notification. Therefore Co. was liable One may ask a question here that his election winning was caused by the votes of only a part of people not by the whole of population; thus, his offer was accepted only by a few people which cannot be identified so why should he be bound for all. It has two answers.
Firstly the people is a group and is one party and if majority of that group has expressed their intention by giving him votes more than other candidate, that must be considered unqualified acceptance. In this reference it is notable that if for acceptance, people's full voting be only considered than in same condition India cannot be called a democratic country in literal sense (i.e. government of people for people and by people) because here too the government is not formed "by the people" but by the majority of people e.g. the current UPA government is a result of votes of majority of people not by whole people so what about the people who gave vote to BJP or others. Therefore, his winning is acceptance from other party i.e. people of India.
Secondly the remaining people is stranger to consideration (that means beneficiary); therefore they also Section 2 (b) also states that A proposal, when accepted, becomes a promise.
The offer of that politician has been accepted by the people; therefore, it has become a promise. People's promise to give him vote (which was performed as he has been elected) and politician's promise to provide a fair and corruption free government (now it is his turn to fulfill the promise). Consideration in Politics during election As per section 2 (d) When, at the desire of the promisor, the promisee or any other person has done or abstained from doing, or does or abstains from doing, or promises to do or to abstain from doing, something, such act or abstinence or promise is called a consideration for the promise. This contractual requirement is also fulfilled in the situation because fair government is consideration for people while seat in election is consideration for that politician.
These considerations are not unlawful, immoral or opposed to public policy as per under section 23 ICA. Legal Relationship in Politics during election In the landmark case of Balfour v Balfour [1919] 2 KB 571 the court held that contract must not based on family or social matters like domestic arrangement, invitation for picnic etc. The facts of this case in short are that Mr. Balfour is the Defendant and Mrs. Balfour is the Plaintiff. The two lived in Ceylon and visited England on a vacation.
The plaintiff remained in England for medical treatment. The defendant has agreed to send her a specific amount of money each month until she could return. The defendant later asked to remain separated. Mrs. Balfour sued for restitution of her conjugal rights and for alimony equal to the amount her husband had agreed to send. Mrs. Balfour obtained a decree nisi and five months later was granted an order for alimony. The lower court entered judgment in favor of the plaintiff and held that the defendant's promise to send money was enforceable. The court held that Mrs. Balfour's consent was sufficient consideration to render the contract enforceable and the defendant appealed. In appeal it was finally decided that social agreements are not contract, intention to create legal relation is an essential element of a contract and in this case, there is no intention to create a legal relation. The question is, whether voting and contesting in election is social or family matter or a legal matter. Answer is that it is a legal matter based on creating legal relationship; therefore, this requirement is also fulfilled. In other words the court hereby not denied that political matters are based on legal relationship.
Competent Parties in Politics during election According to section 11. Every person is competent to contract who is of the age of majority according to the law to which he is subject, and who is of sound mind and is not disqualified from contracting by any law to which he is subject. It is beyond any doubt as voters age and contestant's age is already fixed which is 18 years or above. Parties must not be of unsound mind or disqualified by law under ICA. This requirement is also required for contesting election. Free Consent in Politics during election.
Under section 14 0f ICA it is defined as:
Consent is said to be free when it is not caused by-
1. coercion, as defined in section 15, or
2. undue influence, as defined in section 16, or 
3. fraud, as defined in section 17, or 
4. misrepresentation, as defined in section 18, or
5. mistake, subject to the provisions of sections 20, 21, and 22. 

Consent is said to be so caused when it would not have been given but for the existence of such coercion, undue influence, fraud, misrepresentation, or mistake. In election people cast their vote without any coercion, undue influence, fraud, misrepresentation, or mistake and The Election Commission of India does all efforts to make it free and fare.
Thus this element is also present in election process. Lawful Object and Consideration in Politics during election Under Section 23 of ICA it is provided that The consideration or object of an agreement is lawful, unless -
1. it is forbidden by law; or
2. is of such nature that, if permitted it would defeat the provision of any law or is fraudulent; or
3. involves or implies, injury to the person or property of another; or
4. the Court regards it as immoral, or opposed to public policy.
In each of these cases, the consideration or object of an agreement is said to be unlawful. Every agreement of which the object or consideration is unlawful is void. Here participating in elections is not unlawful, immoral or opposed to public policy. Not Declared Void by Law Participating in elections is not that type of agreement which is declared void by law Other Requirements All other features of a contract are also present in elections like certain terms and conditions, time and place etc.
The Indian Contract Act:
The Best Anti Corruption Law In the above mentioned facts we find that the whole election is nothing except contract. Therefore the author is of firm opinion that why election should not be declared a contract and applied The Contract Act. The question is that how will it work? As it is already discussed that politician promised the people for a fair government and people promised to vote for him so it is a promise. On the day of election people performed their part. The result of polling is its evidence. Now it is his turn to perform his part by fulfilling the promises made to the people. Here politicians breach contract and do nothing; therefore an action for breach of contract must be brought by the people after lapsing a reasonable time. The court on this can provide remedies available in The Contract Act 1872.
These remedies are-
1. Compensation for no fulfillment of promises: people should be awarded compensation from that politician who breached contract. Author's suggestion is that from the awarded compensation a part of it should be given to the complainant as cost of his efforts and remaining should be deposited in a welfare fund made for this purpose so that welfare schemes can be maintained. Collection should be according to the process of collection of arrears of revenue.

2. Perpetual Injunction on future participation: His remaining tenure should be terminated so that he could not continue. In another words "Right to Reject" can be introduced. Though it will be more than Right to Reject.
3. Quantum Merit: His salaries allowances and benefits should be minimized as per ratio of the work done.
4. Specific Relief for unperformed tasks: He should be compelled to perform the incomplete tasks for which he had availed grants, funds etc. If this happens, politicians will definitely deprive themselves from making false promises and misusing of public funds. It will certainly lower down the rate of corrupt activities. No FIR, no police, no prosecution, no imprisonment and no new law still the corrupt and corruption will be stopped. 

Suggestions or Things Needed to do Few changes as well as arrangements will be required like:
1. Declaring elections a "contract". 
2. Creating right to reject in the form of perpetual injunction.
3. Setting up of election courts to dispose these cases on fast track. This can be done by giving this power to the High Courts (by making a separate Bench) or Election Commission of India. Lower courts should be barred to exercise this jurisdiction.
4. All procedure should be under judicial review of Supreme Court.
5. Complaint procedure should be strictly regulated to stop its misuse.
6. Compensation or specific relief on the principles of Specific Relief Act 1963 should be given.
7. Heavy compensation should be imposed so that it will be a lesson for the new comer in politics.
8. Legal awareness program should be introduced regarding this issue.
9. Public notices of their breach of contract and perpetual injunction on his contesting in elections should be given so that everyone can take lesson.
10. A guilty of this breach must be stopped permanently in all types of elections.
11. Even he must be debarred in public employment.
12. Criminals as well as undertrials must be declared legally disqualified for this contract (in contesting).

We can hereby say that one breach of promise means end of political life permanently Conclusion In the case of Darlimpal v. Darlimpal (1811) 161 ER 161, Lord Stovel rightly said that contract is not a joke to pass time. Its provision can resist corruption. Corruption is a communicable disease which kills of the spirit of substantial development .Basically the whole election system is nothing but a contract so after declaring election as a contract and applying the Indian Contract Act, 1872, this can give far better result than "Right to rejectâ€. Politicians will definitely deprive themselves from making false promises, misleading of public and misusing of public fund corruption rate will certainly decrease.

This scheme to impose contractual obligation is required to derogate the deceptive promises and fairy tales which is generally pronounced by our leaders in fun. In search of effective anti corruption tools, it will turn the demerits of election system into merits as well as corruption related to the politics. There is no need of Lokpal, ICA is competent to be a unique solution for corruption free politics. It was well said by The American scholar G.Edward Griffi that- "To oppose corruption in government is the highest obligation of patriotism".
Therefore start opposing corruption by making it contract.

List of key words: ICA: Indian Contract Act 1872
KB: Kings Bench
CPI: Corruption Perception Index
Q.B: Queen's Bench
C. A.: Court of Appeal
ER: England Reporter
R.S. Jha*
*Research Scholar,
Email: radheyshyamjha@gmail.com

References:1. Singh, Avtar, Contract & Specific relief, Eastern Book Company Lucknow, 2010
2. Kapoor, ND, Elements of Mercantile Law, Sultan Chand & Sons Educational Publishers, New Delhi, 1997
3. Subbarao, G.C. Venkat, Jurisprudence & Legal Theory (translated by Tej Prakash), Eastern Book Company Lucknow, 1997 4. Paranjape, N. V., Jurisprudence & Legal Theory, Central Law Agency, Allahabad, 1997

Websites:
www.thehindu.com
www.lawnix.com
www.shareyouressays.com
www.essay-sanjeet.blogspot.in
www.lawnotes.in
www.advocatekhoj.com
www.goodreads.com

Source-Contract Law: A Unique solution for corruption free politics - Others Articles - Law, Lawyers, Advocates, Law Firms,Legal Help, Legal Experts,Judgements,Law Help, Indian Lawyers:

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Avoid These 10 Biggest Risks Of Mobile Banking - From Siliconindia.com

The pace of life is increasing, so is the need of people to adjust with it. ‘The quicker the better’ is the latest slogan and as such people rely a lot in technology to make their life better. The major influence of technology can be seen in banking sector that evolved over the years. Gone are the days when people used to queue in front of banks to deposit a check or fulfill a mere banking formality. But now the trend is of mobile banking. But like most of the stories have a flip side, so thus mobile banking, reports Sienna Kossman of U.S. News.

Mobile banking brings pleasure as well as pain because of the dangers mentioned hereof–

1. Information in Mobile devices is as vulnerable as in computers

It’s a well known fact that feeding extensive private information in public computers is dangerous. So is the case in mobile devices that act as tiny computers. “Mobile banking apps are connected to wireless networks, and these networks are inherently insecure as they broadcast their messages into the open air,” said Ron Vetter, co-founder of Mobile Education LLC and member of IEEE Computer Society.

2. Having a Password is necessary

Using your phone or device without password is like leaving your home unlocked while you are away. It enhances the chances of misuse, if you ever lose your phone. To ensure protection of your bank information, a complicated password is most desired. Without proper security measures like password, anyone can log into your app and get access to your bank details. Passwords might not be able to save you entirely from mobile info theft but would at least increase your chances of survival.

3. Never allow your device to auto-save password

Allowing your device to auto-save your password is like having no password at all. “One should never allow apps to remember usernames and/or passwords,” said Ron Vetter. The information becomes easily available to anyone who can lay a hand on your mobile or device if the username and password is already saved.

4. Resist using shared devices

Using shared devices for mobile banking increases the chances of losing valuable account information. Make sure that other users are not surfing high-risk sites as it enhances the probability of users downloading key-logging software onto your device and hence compromise your mobile banking session.

5. Depositing check with the help of camera and banking app

Banks try not to provide instant funds to those who deposit checks remotely with the help of a camera and banking app. The time taken to release funds when a check is deposited in ATM or bank is much less than time spent waiting for funds when you provide check via banking app. This is a measure to protect banks against fraud.

6. Download apps directly from bank’s website

There are a lot of fake apps on the run and using one of them may make you lose important information and eventually detach you from your money. Just because an app is downloaded from an app store does not ensure it authenticity. “Consumers tend to assume that just because an application is on an app store, it’s been heavily vetted by either Google, Apple or otherwise,” said Doug Johnson, vice president of risk management at the American Bankers Association.

7. Some devices are more prone to viruses than others

“In the fourth quarter of 2012, 97 percent of all of the malware released into the mobile environment was targeted against Android,” said Julie Conroy, a research director for Aite Group. Android has been a current favourite of developers of malware viruses since most other brands are not immune to viruses. Smart phones are more susceptible to viruses and hence more prone to losing valuable banking information.

8. Use storage cards to save bank details

Never save sensitive information directly in your phone and instead use storage cards. Most of the time, your phone might save information even after you have cleaned its memory. Try and use a program that will completely clean your device especially before you discard or resell your mobile.

9. Always update security apps

Do not ignore notification about security updates since it is most essential in case you have confidential information saved in your device. “Sometimes those updates include security updates, and you want to make sure you have the latest and greatest version of the whole app,” Julie Conroy said.

10. Strong network means stronger security

The probability of losing messages or information in transit is much higher when operating network connectivity is low since mobile apps broadcast data into open air. While doing mobile banking, make sure you are in a strong network service range.


Source -

Avoid These 10 Biggest Risks Of Mobile Banking:

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Word of Mouth Referrals - Advice by David M. Ward

David M. Ward Esq. has this to say on Word of Mouth Referrals for Lawyers:

I saw a movie last weekend about an ethnic restaurant on the brink of bankruptcy. The manager met a quirky man, driving a taxi, who claimed to have been a great chef in the old country. Desperate to turn things around, he hired the man and crossed his fingers.

Turns out the chef really was good and business started to pick up.

One customer, an older woman, told the manager she loved the food and

would tell everyone about the restaurant. Her husband added, “. . .and she

knows everyone”.

Apparently, the woman did know everyone because the restaurant suddenly

got very busy. When a food critic gave the place a glowing review, there

were lines around the block, two hours before the place opened.

The woman was a connector. She was influential. And because she knew

a lot of other influential people, if she thought you were good, the world

would quickly hear about it.

What if you had a client like that, a connector who really loved what you

did for them? Before you knew it, word of mouth referrals would bring you

a waiting room full of new clients.

The thing is, people don’t wear a sign to identify themselves as a connector.

It could be anyone. It could be that unassuming older lady sitting in your

waiting room right now. If she likes you, your practice is made.

Okay, you may never have a client like that. Or, you may have someone

next week. So you do a great job for everyone, because you never know

who they are.

Yes, I know you would do that anyway. Because it’s the right thing to do

and because it’s who you are. You don’t treat big shots any differently

than regular folks.

Here’s the thing. Regular folks can also bring you a lot of business. They

may not be connectors who can tell the world about you, but they can refer

you a new client, and that client can do the same.

I often took small, unprofitable cases. I didn’t make any money on those

cases but my business model was based on serving clients, it was not

based on the viability of any one case. I helped my clients with small cases

and they came back with big ones.

In a sense, every client is a connector. You may never get a five star review,

there may never be a two hour line to get into your waiting room, but treat

everyone right and you will have a never ending supply of new business.

David M. Ward

http://attorneymarketing.com

P.S. Get more word of mouth referrals:
http://attorneymarketingformula.com

What Attack On Syria Will Mean | War and Conflict - II - Protests against Syrian Intervention - ABCNews - II - Tyler Durden Opines at ZeroHedge News

What Attack On Syria Will Mean | War and Conflict: By - JOSEPH FARAH

If Barack Obama leads America into a war with Syria, there’s something everyone needs to know about this mission that hardly anyone is articulating. This war will not just be with a Syrian regime clinging tenuously to power. It will be a proxy war against Iran.

If it were not for support from Iran, Bashar Assad would probably be out of power already. It would not even be an exaggeration to suggest Syria has become a client state of Iran, as has neighbor Lebanon. Think of Hezbollah as Iran’s terrorist foreign legion. It maybe represent the most significant military power in Syria and Lebanon.

Last week, Iranian officials said if the U.S. launches missile attacks on Assad’s forces (meaning their own), Tehran would respond with missile attacks of its own – on Israel.

This may be a bluff, but it may not be.

I don’t think that comes as a surprise to U.S. war strategists – not at all.

Let me explain the real war behind the war.

You don’t think Obama is losing sleep over a relative handful of victims of a chemical weapons attack in Syria, do you? There are far more children aborted through equally gruesome means every single day in America than were killed by chemical weapons in Syria. And, despite assertions by administration officials, there is no compelling evidence the attacks were conducted by the Syrian regime.

I think what Obama is doing in Syria is part of a devious, one might even say diabolical, master plan for dealing with Iran and its nuclear weapons program.

Iran is likely to react very strongly to any missile attack on Syria, which it now considers virtually its own sovereign territory. It is likely the blowback will come in two forms – missiles and terrorist attacks. Hezbollah has lots of missiles that can target Israel from Lebanon and Syria. It also commands terrorist cells all over the world that can hit American interests. 

Read More Here

Protests against Interference in Syria - http://abcnews.go.com/US/wireStory/us-led-attack-syria-sparks-rallies-20126354

In Washington, as Obama addressed the nation from the Rose Garden, anti-war demonstrators chanted and waved placards outside the White House. Across the street, Syrians and Syrian Americans who support U.S. action waved flags from their country and shouted for Assad's ouster.

"The conflict's been going on for, what, almost 2 years now. Estimates are 100,000 Syrian civilians have been killed and all of a sudden the U.S. government has manufactured the excuse of the use of chemical weapons in Syria to use that excuse to intervene in Syria," said Tristan Brosnan, 25, of Washington.

Later, in Los Angeles, about 200 people shouting "Hands off Syria" protested against a possible American strike. They waved signs reading "No More War" and police said they wrote up more than 40 citations after demonstrators sat in street intersections and blocked traffic. Police reported two arrests.

In Boston, more than 200 protesters demonstrated in the Boston Commons against the possible use of American force. They chanted "Don't Bomb Syria!" repeatedly, and at least one speaker said congressional authorization wouldn't make an attack acceptable.

More than two dozen protesters gathered at the Arkansas Capitol to oppose a possible U.S. attack. Some wore T-shirts proclaiming "NO U.S. INTERVENTION IN SYRIA."

"I had friends that died in Iraq, and I don't want more people to die for nothing," said Dominic Box, 23, expressing some of the fears of a war-weary public.

In downtown Chicago, about 40 people walked quietly in the rain, circling a sculpture in Daley Plaza. Some carried signs that read "No War In Syria" and "Shut It Down."

On the contrary, military force should only be used to protect citizens from foreign attack. - Tyler Durden - www.zerohedge.com/news/2013-09-01/guest-post-should-attack-be-launched-against-syria

I answer that the state’s foreign policy ought to be primarily guided by the national interest — and by that I narrowly mean the preservation of the life, bodily integrity, liberty, and property of each of the individuals who reside within the state’s territorial boundaries. Even if definitive proof should eventually arise that Bashir al-Assad authorized the chemical attack, that is part of a civil war in which he is engaged amongst supporters of his government and various groups aiming to depose him. No matter who ultimately emerges victorious in this conflict, those living thousands of miles away will not in any tangible way have their personal safety and possessions affected. The inviolability of Canada’s borders does not stand or fall on whether the Syrian National Council gains power or Al-Assad’s Ba’athist party regime keeps it. At best, events in Syria might impact the price of oil, but influencing that is hardly a rationale for military action, especially as there are so many alternative sources of energy that can be secured more peacefully.

To some, this will seem a terribly selfish and hardhearted approach to foreign policy. No self-respecting nation, they say, can stand by as a foreign government slaughters its own people. But anyone even vaguely familiar with history knows that states commit such crimes on a shockingly regular basis. Were we to always intervene every time a government somewhere in the world violated its citizens’ most basic rights, we would quickly stretch our resources.

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Yes we can! (destroy a booming economy) - Straight from the Hip by J Mulraj

Yes we can! (destroy a booming economy) - Straight from the Hip by J Mulraj

Manmohan Singh's version of Obama's 'Yes We Can' speech: 'The one who is on my mind today is Mother India, who is thousands of years old' 

"And tonight, I think about all that she's seen throughout her life - the heartache and the hope; the struggle and the progress; the times we were told that we couldn't destroy her currency's value, which was equal to the $ in 1947, and the economists who opined we cannot make her diminish in stature. I say to them: Yes we can diminish it. 

"At a time when rational voices were warning us of the dangers to her economy from uncontrolled fiscal and current account deficits, we silenced them with leaky welfare schemes that allowed us to reach for the ballot, whilst destroying the country's balance sheet. I say to them: Yes we can destroy it. 

"When there was optimism and entrepreneurship across the land, we saw a nation succumb to fear with policy paralysis, new subsidies, and new regulations that stifled growth. I say to them: Yes we can stifle it. 

"When the corruption scandals and scams fell on our TV channels and threatened our crony capitalism world, she was there to witness a generation brainwashed to yield to corruption and lose its moral values. I say to them: Yes we can degrade values. 

As Finance Minister, Manmohan Singh led India out of the 1991 economic crisis. As Prime Minister, he has led India back into a bigger one. 

Last week the Parliament passed two laws, the Food Security Bill, which seeks to provide subsidised grain to 67% of the population, even though 23% are below the poverty line and deserving of the subsidy, at an estimated annual cost of Rs 1.25 lac crores; and the Land Acquisition Bill, which seeks to provide farmers who sell their land to developers either for manufacture or for housing, a fair compensation for it, judged to be 4 times the (undefined) market rate for rural and 2 times for urban land. The non-definition will, of course, lead to uncertainty and further corruption. 

There are other complications. The acquisition is subject to clearance by 80% of the owners in the case of a private acquirer and 70% in the case of a PPP project (public private partnership). It is also subject to a social impact audit, which, in turn, is to be approved by various layers. 

This amount of uncertainty will make land acquisition for manufacture and for housing an impossibly arduous and uncertain process. It is doubtful whether foreign investors, with global choices, would wish to undergo it. 

India's growth story was largely predicated upon the encashment of its demographic dividend. The young population, after getting jobs, would have spending power, and the economy would be led by a consumption driven boom for decades. 

This story requires two ingredients. One is the provision of jobs. The second is the provision of housing for the young population, which will largely be a migratory one from rural to urban India. In India, agriculture has a 14% share of national income but over half the population depends on it. This is unjust and has to change. It will change when they get jobs and move to urban areas, where they will need housing. 

The service sector has provided the jobs so far, but the potential to provide millions of jobs in future will necessarily come from the manufacturing sector. 

So will the uncertainties, and the additional costs, emanating from the recently passed Land Acquisition Bill encourage the manufacturing sector to provide the jobs, and the real estate sector to build the homes, and if so, at what cost? 

It was Martin Luther King who said "True compassion is more than flinging a coin to a beggar; it is not haphazard and superficial. It comes to see that an edifice that produces beggars needs restructuring" 

Even prior to the Land Acquisition bill, some large foreign companies had expressed their intention to quit India.Nokia, chagrined at the reneging of the promise by Tamil Nadu State to refund it a 4% VAT, as agreed to, is one . Shell and Vodafone are fighting disputes relating to untenable tax demands. 

It is little wonder that GDP growth for the quarter ended June has fallen to 4.4%, a 4 year low. The falling rupee will push up import cost of oil (an estimated 27%) and push up prices of petrol, diesel and power. This would lead to less consumption, hence lower consumption led GDP growth. The investment led growth will also slow down, thanks to a variety of factors including high interest rates and the higher cost, longer time, and uncertainties relating to land acquisition. 

The root of all this is appallingly poor governance. As Martin Luther King said, quoted above, the polity should see that the edifice that produces beggars needs restructuring. The polity is, however, busy making Luddite laws and messing up the India story. In some States there is little law and order; politically connected people get away with bulldozing homes of doctors, without authorisation. 

Even as they accuse and transfer a Government official of illegally demolishing a wall, which was held by a District Magistrate to be a false accusation. So a Government functionary is falsely accused of an illegal demolition, even as politically connected persons are not arrested for doing the same thing! The District Magistrate who dared to opine that the accusation was false, was transferred! Who would invest under these conditions? 

The NSEL (National Spot Exchange Limited) imbroglio is getting murkier, and the Government is not doing what it ought to be doing. 

One can compare the Sahara episode with NSEL. In the case of the two Sahara companies, there was a regulatory vacuum as the collective investment schemes floated by them fell in the regulatory chasm between RBI and Company Law Board. Neither of them thought of a joint consultation and intervention, a criminal neglect of duty. 

Similarly, in the case of NSEL, the exchange was allowed to operate but without regulatory oversight. This makes the Government entirely culpable and responsible for the losses; it cannot evade its responsibility. 

Now in the case of Sahara, the Government delegated the task to SEBI which approached the Supreme Court, got orders passed against the two Sahara companies, and has sequestered the personal properties of the promoters of the group. 

Why can this not be followed in the case of NSEL? 

What is the reason for such a lackadaisical and ineffectual response? 

When it wants to, the Government has plenty of powers to use against a defaulting group. If it wants to. Ergo, its reluctance to act stems from the 'if' and not from the 'when'. 

It is only in times of crisis that the Government is forced to take decisions that are sensible but politically deemed to be tough. The word 'deemed' is advisedly used. It is a perception that the decisions are politically tough, more than a reality. 

One such is the discussion, now being held, to reduce Government stakes in public sector banks to below 51%. Among others, this column has been long suggesting that this is inevitable and necessary. But it is only when the Government is in a financial crisis that it thinks of such things. 

Several commentators have mooted the idea of tapping into India's huge gold reserves, by offering private holders (including temples) a scheme by which they would earn a modest income on gold surrendered to the Government plus the option to get it back in future. It has taken years, and a CAD crisis, for the Government to think of mooting it. 

Last week the sensex gained 100 points, mainly after the Prime Minister promised there would be no capital controls and the rupee bounced. For a Government that brings in retrospective changes in law, the confidence of investors is quite touching. The BSE-Sensex ended the week at 18,619. The NSE-Nifty was unchanged over the week, at 5,471. 

Will the Government now have an amnesty scheme for foreign bank account holders? If so, will it result in a substantial inflow of foreign funds lying abroad? That would cause a rally in stock markets and in the Indian currency. 

Otherwise, both would continue sinking, chasing the credibility of a Government that has driven a wedge in the India story.

Overcoming the money objection

Valuable Real World Advice for Lawyers in Real Law Practice  - 

Overcoming the money objection

From the http://www.attorneymarketing.com/blog/

You’re sitting with a new client. At least you think he’s a new client because he needs your help and wants to hire you. But when it comes to the subject of fees, he balks. Too often, he walks.

Overcoming the money objection in it’s various forms–I can’t afford it, I don’t have it, it costs too much, other lawyers will do it for less–is critical. The best way to handle this objection, or any objection, is to eliminate it before it comes up. Here are four ways to do that:

1. PRACTICE AREA AND TARGET MARKET

If you handle contingency fee cases, the money objection usually doesn’t come up. Lawyers who do work for big business and government usually don’t have clients who can’t pay their fees. Targeting well to do consumers for your services will also eliminate or severely curtail the no money objection.

In addition, if you handle legal work where clients must have an attorney or face dire consequences, rather than discretionary legal work, clients who might otherwise be limited in their ability to pay will often find a way to get the money. Someone who is in jail, being sued, or facing foreclosure, for example, has different motivation than someone who needs to update their will.

2. INFORMATION

The second way to deal with the money objection is to provide ample information to prospective clients before they call for an appointment. This means posting information on your website that explains fees, costs, retainers, and payment options. It means mailing or emailing prospective clients this kind of information (“a pre-appointment information package”) prior to the actual appointment.

You don’t necessarily quote fees in advance but you do provide a general idea of what the client can expect if they hire you. Give them a range of fees so they know it might be as much as $10,000 and they don’t come in expecting to pay $1,000. Show them different packages of services you have available, so they can see that while they might not be able to afford package A, they can probably handle package B. Explain the payment options that are available to them, so they can see that they don’t have to have all of the money up front.

This is also how you deal with the issue of other attorneys with lower fees. This is where you build the value of what you offer and make the case for why clients should choose you. This is where you explain how some attorneys don’t tell the whole story regarding fees and costs, until someone is sitting in their office. This is where you show prospective clients the wisdom of hiring someone with your experience and how, in the long run, it will probably save them money.

3. ON THE PHONE

When a prospective client calls for an appointment, or calls to ask questions, make sure they understand how much they will be expected to pay (or the minimum) if they decide to hire you.

Some will tell you it’s better to get them into the office first, that once they have taken the time to meet with you and become impressed with you, they will be more likely to find a way to hire you and less likely to go shopping for a less expensive alternative. That may be literally true, but if they don’t have the money they don’t have the money and you and the client are both better off dealing with this reality before spending any more time.

There are exceptions, but a policy of giving prospective clients a general idea of how much will be expected of them if they hire you, in advance of the actual appointment, and confirming that they can handle that amount, will go a long way towards overcoming the money objection once they are sitting in front of you.

4. IN YOUR PRESENTATION

The fourth way to deal with the money objection is to anticipate the objection and dispose of it in your presentation, before the client can raise it.

For example, explain how some clients sometimes tell you the fee is on the high side. Then tell them that once the client sees everything they get, they realize that in the end, they are actually saving money.

Bring up the subject of other attorneys who charge less than you do. Then explain why it makes sense to choose you instead.

Explain what it might cost the client if he chooses to delay. A client who might otherwise want to wait will now know why he should not.

Whatever objections you have heard in the past, deal with them before the client raises them.

Some clients will slip through the cracks. You will still occasionally hear the money objection. But by taking the above steps to deal with the objection in advance, you should find this to be the exception, not the rule.