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CMA Foundation · Fundamentals of Business Laws and Business Communication · Legal Methods and Court System in India

Sunita Traders sues Kapoor Enterprises for refusing to pay for goods delivered under a written agreement. Which feature best shows that this is a matter of private law?

The dispute is private law because it concerns rights and duties between two private parties under a contract. The State, through the court, merely decides the claim and is not a party. Public law instead involves the State or its organs as a party or a subject.

  1. AThe dispute concerns rights and duties between two private parties, and the State acts only as an adjudicatorCorrect
  2. BThe State is the party that starts the proceedings in the public interest
  3. CThe dispute is about how a government department exercises its powers
  4. DThe dispute is about the structure of the legislature

Explanation

Private law regulates relations between persons on an equal footing, such as buyer and seller under a contract. The courts only decide the dispute. In the other options the State is a party, or the subject is the working of government bodies, which is public law.

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