Question

the above. 62. List and briefly define the three basic types of Bankruptcy. (5 points 63. List the primary differences between a civil case and a criminal case (5 points) C 64. Under what situations may a court of equity disregard the corporate entity and pierce the corporate veil? What is the legal effect of the decision? (5 points) 65. Briefly describe two contracts, one supported by consideration, and ne that is not (3 points)

Answer 1

Ques 1. -

Running a business comes with many risks and one such risk is Bankruptcy. This can be a cause of concern. Thus here we shall know what are the three different types of bankruptcies. This will help us know which bankruptcy plan should one go for.

Three Types Of Bankruptcy :-

1) Business (Bankruptcy) - In this type of bankruptcy, business goes under liquidation which means the business gets dissolved due to failure of business. Here, the business reaches such a condition wherein reforming the business is not possible and if someone even intends to do so then he/she shall face even more losses. Thus in such a case, one should choose the option of liquidating or dissolving the business, which is one type of bankruptcy.

2) Reorganization of Business - Here, when a businessman decides to reorganize his debts even when business is not running properly, then, it's called reorganization of business. This is also a type of Bankruptcy but it requires a lot of pre -planning which takes almost a year or so and only then it is approved. So much time is taken because usually it's not a very successful type of Bankruptcy.

3) Personal (Bankruptcy) - Here as it's Personal Bankruptcy thus it deals with an individual person and not to the business. Personal bankruptcy covers a lot of personal aspects such as how much a person earns? How many properties one owe? What all are the sources of income? How much is the savings and expenditure etc. So here the person has to consult a bank or an expert in this field who can help to manage his expenditure, income and savings.

Ques.2 - Difference between a civil case and a criminal case

A Civil case is usually dealing with a person,individual or any entity which has personal and common problems. For example, cases of property dispute , divorce or re-marriage issue etc. So basically it deals with pity and harmless things to the society. Though a civil case is not a normal thing but comparatively it's not as harmful as a criminal case is. Also, in civil case punishment is given in the form of fine or fees payment or a less years sentence to jail.

On the other hand, a Criminal case is a harmful act for society. It includes murder cases, mass killing, terrorism, stealing and theft, rape cases etc. Such acts are heinous and gives a wrong and a very negative impact to the society. Thus the punishment given is vert strenuous and harsh. Punishment may be like life-sentence, death sentences etc along with charges in form of fine/fees. Thus, a Criminal Case is worst that a Civil case in any form.