Q.(a) Explain the highlights of the LPG policy. (any 5)

(a) LPG reforms freed industry from licensing, cut the public sector, opened foreign investment and trade, and reduced tariffs. (b) A contract of sale needs two parties, goods, transfer of ownership, a money price, valid-contract essentials, and may be absolute or conditional.

(a) Highlights of the LPG Policy (any 5)

1. Abolition of industrial licensing — the 'licence raj' was largely removed, so most industries could be set up and expanded without government licences.
2. Reduction of the public sector — the number of industries reserved for the public sector was cut sharply, opening them to private enterprise.
3. Disinvestment — the government began selling part of its shareholding in public sector units to raise funds and improve efficiency.
4. Liberalisation of foreign investment — Foreign Direct Investment (FDI) was allowed and encouraged in many sectors.
5. Trade liberalisation and lower tariffs — import and export procedures were simplified and import duties reduced to integrate India with world trade.
6. Relaxation of MRTP restrictions — limits on the size and growth of large firms were eased so they could expand.

OR

(b) Essential Elements of a Contract of Sale

1. Two parties — there must be a buyer and a seller, who must be two different persons.
2. Goods — the subject matter must be movable goods; it may be existing, future or contingent goods.
3. Transfer of property — the ownership (property) in the goods must be transferred, or agreed to be transferred, from the seller to the buyer. …