Forms of business organization

A vada pav stall outside Dadar station, a three-friend design studio in Lower Parel and a listed company on Nariman Point are all businesses, yet the law treats each differently. If the stall owner cannot pay a supplier, his own flat can be attached. If the listed company cannot pay, nobody's flat can be touched. Why does the structure you choose change who pays when things go wrong? This topic lays out the menu of structures that Indian law offers before the rest of the module studies one of them in detail.

In two minutes

Indian law offers a handful of structures for doing business, and they differ on three things: whether the business is a separate legal person, how far the owners are personally liable, and which Act governs it.

The rest of this chapter

The full explanation, the cheat sheet, every previous-year question at every mark weight, the quiz and the answer skeletons are part of Contract – II on LexBlox Semester. Sign in to unlock the subject, or read Module 1 of Legal Language and Writing free.