Basic concept of goodwill of Business and how it is to be calculated

[bpagrawal]

Basic concept of goodwill of Business and how it is to be calculated

The goodwill of a business needed to be considered in a broader way. It depended upon a variety of circumstances or a combination of them. The nature, the location, the

service, the standing of the business, the honesty of those who run it, and the lack of competition and many other factors went individually or together to make up the goodwill, though the locality always played a considerable part. Shift the locality, and the goodwill may be lost but it was not everything. The power to attract custom depended on one or more of the other factors as well.n the case of a theatre or restaurant, what is catered, how the service is run and what the competition is, contribute also to the goodwill.

Supreme Court of India
M/S. S. C. Cambatta & Co. Private ... vs The Commissioner Of Excess ... on 30 November, 1960
Equivalent citations: 1961 AIR 1010, 1961 SCR (2) 805
//http://www.lawweb.in/2013/01/basic-concept-of-goodwill-of-business.html