CMA Foundation · Fundamentals of Business Laws and Business Communication · Sources of Law
Meera, a company director in Chennai, is sued by a supplier for non-payment of an invoice of a contract. The supplier seeks only recovery of the amount. This dispute mainly falls under which classification?
The dispute is a private civil matter because a supplier is claiming money owed under a contract from another party. It concerns rights between private persons and no offence against the State is alleged, so it is not criminal, constitutional or international law.
- ACriminal law, because a company is involved
- BPrivate civil law, because it concerns rights between two partiesCorrect
- CConstitutional law, because a director is involved
- DInternational law, because a supplier is involved
Explanation
A claim for recovery of money under a contract is a dispute between private parties seeking a remedy for a private right. It is civil in nature and falls under private law. No offence against the State is alleged, so criminal law does not apply.
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