BBA 1st Semester Business Low Contract Notes
BBA 1st Semester Business Low Contract Notes :- In This Article You Can Find Meaning Contract BBA Business law Notes . and contract, Acceptance, Consideration, Capacity of Parties free consent, Performance of Contracts, Means That Its Is Best Topic of Business Law Study For BBA 1st Semester Year . Here You Find Topic Wise,Chapter Wise, Subject Wise Study Material BBA Management introduction of management And other Links of Related to the Business Law. How To Learn BBA Business law Notes Thanks For Read This Article.
Section – A
Very short question answer
Write the definition of contract ?
Ans :– According to section 2(h) Of the Indian Contract Act agreement enforceable by law is a contract.”
what are the two elements of contract
Ans :- a contract Recently consists of two elements :
- an agreement
- legal obligatio
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what is the meaning of agreement ?
Ans :- according to Section 2(e) every promise and every set of promise forming the consideration for Each Other is an agreement typing.
discuss the meaning of legal obligation
Ans :- an agreement to become a contract must give rise to a legal obligation a duty enforceable by law. if an agreement is in a circle of creating a duty enforceable by law it is not a contract.
define the meaning of offer and acceptance?
Ans :- there must be a lawful offer and low full acceptance of the offer the resulting in an agreement the adjective go full I’m pleased that the offer and acceptance must is satisfy the requirements of the contract in relation theatre.
define the meaning of a valid contract
Ans :- a valid contract agreement enforceable by law and agreement become enforceable by law when all the Essential elements of a valid contract a parent.
write the meaning of eligible contact ?
Ans :- the Essential elements of a valid contacts are as follows
- offer and acceptance
- free constant
(c) capacity of parties
(d) lofar constitution
write the two difference between agreement and contract
(a) Offer and its constituent agreement agreement and it’s impossible constitute a contract.
(b) an agreement may or may not create a legal obligation a contract nearly create a legal obligation.
Discuss the three characteristic of offer?
Ans :- (a) it must be made to another person
(b) it must be an expression of willingness to do or to abstain from doing something
(c) the expression willingness must be made with a view to create legal obligation
Write the definition of minner person.
Ans :- according to Section 3 of the Indian majority act 1875 a person promised in India who is under 18 year of age and minor.
Define the meaning of consideration?
Ans :- according to section 2 d of the Indian Contract Act define consideration as follows when The Desire of the promisser the promisee or any other person has done or abstained from doing or does or abstains from doing or promises to do something.such act or abstinence or promise is called a considration for the promise.”
Write the three elements of consideration
- consideration Mast move at the Desire of the promises
- consideration must be real and not issory.
Distuss expressly declared void agreement under the Indian Contract Act ?
Ans :- a void agreement is one which does not give rights to any legal consequences section 2G Status that an agreement not enforceable by low is said send to be void.
Write the meaning of sales of goodwill?
Ans :- section 27 the Sailor of the Goodwill of a business can be presented from carrying on a similar business within specified local limits so long as the buyer for any person driving title to the Goodwill from the career and owner like business there in provided the restraint a reasonable in point of time and space .
What is the mean by discharge of contract ?
Ans :- discharge of contract means termination of the contractor relationship between the parties a contract is said to be discharged when the parties there are to freed from the task of Performing there respect your decision as arising from the contract in simple words discharge of a contract means termination of Contract contract come to an end
Write the two difference between fraud and misrepresentation.
Ans :- (a) the person making miss statement does not believe it to be true the person making miss statement believe it all to be true
(b) the aggrieved party can you tell please sign the contract of claim damage the aggrieved party can resented the contact but cannot claim the damages
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What is means by breach of contract ?
Ans :- every contract imposes curtain obligation on both the parties to it if one of the parties failed or what is used to perform his obligation it is know as breach of contract
write the two differences between damages and Quantum meruit.
- damages are paid for incomplete work Quantum meruitis paid for the work already completed .
- damages are paid to component the loser surface by a Green party is Quantum meruit is paid for the work done by aggrieved party.
Short question answer
BBA Business Low Define the contract
State the meaning of contract
What is the contact
Answer :- contact : according to section 2(H) of Indian Contract Act. an agreement enforceable by law is a contract section 2 define an agreement as as a promise and everything to promise forming the consideration for Each Other is an agreement section to be define a promises when the person to whom the proposal is made signifies his ascent Chole to the proposal is there to be accepted a proposal when accepted becomes a promise.”
“ a contract is an agreement creating and defining the obligation between parties.”
Thus a contact on cyst of two major elements and are in agreement and its enforceability by law to made contract there must be an agreement and the agreement must be enforceable by law.
Distinguish between agreement and contract
|basis of difference
|agreement explain under section 2(E)
|Contract explain under section 28
|when a person would say proposal for another person and another person as your every to it, it become an agreement
|an agreement enforceable by law is a contract
|offer + acceptance from an agreement
|over + acceptance + enforceability by law from a contract
|enforceable by law
|an agreement may or may not be enforceable by law
|a contact is always enforceable by law
|all agreements are not contract and agreement may or may not be contract
|all contract are agreement because no contact can be made without agreement
What are the various type of contract.
- valid contract : a valid contract is one which fulfill all the Essential elements of a contract it is full enforceable by law.
- World contact : a contact with cases to be enforceable by law at a later stage is called a void contract it may become void to do : (i) super impossibility (ii) Subsequent illigality (iii) Reputation of affordable contact this problem arise subsequent to the formation of contract.
- voidable contract : a contact is voidable if it is caused by coercion or undue influence or fraud or misrepresentation such a contract is voidble at the option of aggrieved party.he mya or may not opt to get it enforced. Such a contract is fully valid till it is avoided. If it is avoided it become void.
- illegal contract: an illegal contract is a contract which is against in law enforced in the country or against public policy or criminal in nature or emotional such as a contract creates no legal rights and obligation it is full null and would rather it main attraction lights and process also on the parties.
Distiction between void and voidable character
Ans :- Distraction between void and voidable contract
|basis of the difference
|it is defined under section 2 J
|it is defined it under tax section 2 I
|a contract with cases to be enforceable by law is void contract
|A contract which is enforceable by law of the option of one or more of the parties but not at the option of other or other is a voidable contract
|if contact is the full varied at the time of formation it becomes enforceable at a later stage on curtain ground
|a voidable contract is voidable at the option of aggrieved party right from the time of its formation it remain valid until it is it is repudicated aggrieved party
|Causes of Nature
|IIT contract becomes word because of supervening impossibility or subsequent intelligrated or Reproduction of a voidable contract
|A Voidable contract becomes voidable when the constant is guest by Korean or under influence of froad or Ms presentation
|rlight of parties
|Underwood contract the parties have no right to get the contact emforsed
|under a voidable contract only the aggrieved party has a right he may or may not decide to get it enforsed
Distinguish between void and illegal agreement.
Ans :- distraction between void and illegal agreement
|basis of difference
|If is an agreement which cannot be enforceable by law
|if is an agreement which is against a row in force in the country or against policy or criminal in nature
|void is a wide returns then a legal or illegal agreements or void
|Illegal is a narrow term void all agreement are not illegal
|time of becoming void
|a void agreement maybe void since begging aur Main subsequently void
|illegal agreement is void since very beginning
|Effect on collateral transaction
|In case of a void agreement, collateral transactions are not affected they can be enforced by law.
|In case of an illetgal agrement collateral transactions also become illetgal.
|In case of a void agreement no question arises of any punishment to any party.
|In case of an illegal agreement, some penalties and prosecution may also be imposed on the liable parties.
Distinguish between void contract an void agreement.
Ans :- Distinguish between void contract and void agreement
|Basis of difference`
|Void contract is explained under Section 2(j).
|Void agreement is explained under section 2(g).
|A contract which ceases to be enforeable by law, becomes void when it ceases to be enforceable.
|An agreement not enforceable by law is said to be void
|Stage of being void
|A void contract is not void begainging it is a valid contract at the time of formation but subsequently becomes void due to some reasons.
|A void agreement is void since beginning it was never valid
State the meaning of supervening impossibility and subsequent illegality give suitable examples.
Ans :- Supervening Impossibillity :- Accoding to section 56, “a contract to do an act become void when the act become impossible ” sometimes an act to be done under the terms of a contract becomes impossible to be done and it makes the contract void . it is callled supervenning impossiblity. Contract was fully valid at the time of its formation but subsequent circumstances make it vaoid.
Example :- a agreed to sell his horse to b but before the sale takes place. The horse died. It make the contract void.
Subsequent illegality :- according to senction 56. “A contract ot do an act becomes void when the act becomes unlawful” sometimes a contract is fully valid at the time of its formation but subsequent changes in a law in the country make it illegal. It is called subsequent illegality.
Example :- A in india contracted to supplyu 1,000 television sets to b in pakistan. During the mean time, a war break out between india and pakistan it makes the contract impossible and unenforceable with immediate effect.
Define an offer.
State the meqaning of offer.
Ans :- offer “- an offer means to say something to another perosn with the intention that anotehr person will accept it. According to section 2(a) of indian contract act, “when one person signifies to anotehr his willingness to do or to abstain from doing anything with a view to obtaining the assent of that other to such act.” he is said to made a proposal
Thus, when a person says something to anotehr person with the intention that anotehr persoin will agree to it, it is called a proposal or offer. The person who makes offer, is known as offeror and the pedrson to whom the offer is made, is called offere.
Distinguish and explain the concepts of general and specific offer with the help of suitable illustration.
Ans :- General offer :- an offer made to teh public in general or to the world at large, is called a general offer. Such an offer can be accepted by any on satisfuying the terms of offer. Offer of reward made byu way of adverisement creates a general offer.
Example : carlill vs. Carbolic smoke ball co. : A company manufacturing smoke balls an anti influenza medicine, gave an adverisement that it would pay euro 100 to any one who would contract influenza even after using this medicine according to instructions. Mrs. carlill used the medicine accordingly and contacted influenza. She sued the company to pay reward. Held, it was a general offer and therefore, the company is liable to pay the reward to mrs. carlill.
Specific offer :- An offer made to a specific person or persons is called specific offer. Such an offer can be accepted byh thatg person or person onlyu to whom it is being mode. If it is accepted by any otehr perosn , it would not be binding.
Example :- boulton vs jones. :- jones placed an order with X for the supply of certein goods. Boulton who had purchased that business from X , supplied the goods to jones with an intention to set off his debt against, X jones refused to pay to boulton for goods on the ground that the offer was not addressed him . held , jones was not liable to pay to Boulton because it was a specific offer.
Distinguish between offer and invitation to offer.
Ans :- Distinction between offer and invitation to offer
|Basis of difference
Invitation to offer
|When a person says something to do or not to do anything to another person with an intention of gettintg his consent thereto it is called an offer .
|When a persoin does something and invites anotehr person to make an offer, it is said to be an invitation to offer.
|An offer, otherwise lawful is an offer in the eyes of law.
|An invitation to offer is not an offer in the eyes of law.
|Offer is made with a view ot obtain acceptance.
|Invitation to offer is made with a view to obtain offer.
|An offer can by accepted by offeree.
|An invitation to offer cannot by accepted
|An offer, when accepted becomes an agreement
|An invitation to offer cannot be accepted and therefor it cannot become an agreement
Explain the concepts of offer and cross offer with the helps of suitable illustration.
Ans :- According to section 2(a) when a person says something to another person to do or not to do something with an interntion to obtain his acceptance, it is said to be an offer or a proposal. An offer can be accepted by offeree.
Example : A says to B , i am ready to sell my machinery to your for rupes 50,000 . it is an offer.
Cross offer : When two parties make similar offer to each other without having a knowledge of the for made by the other , these are called cross offer. These offer are not binding on the ground that on offer cannot be the acceptance of other offer.
Example : A has a house in meerut. He writes a letter to D of delhi to sell his house to him for rupee ,,. Almost at the same time, D writes a letter to a to purchase his house for rupee ,,. While writing these letter, neither A nor D had the knowledge of each other’s letter. These are cross offers.
State the meaning and types of acceptance.
Ans :- Acceptance : an agreement and a contract emere from an offer and its acceptance. Acceptance means the readiness of offeree to abide bye the term odf offer. When an offeree agrees to an offer, it is said to be his acceptance. Accoriding to sectio 2(b) when the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. An offer when accepted becomes a promise and creates and agreement
Types of acceptance
Express acceptan :- when a acceptance is communicated by words, writtten or spoken it is said to be experess acceptance.
Example : A offers to B, i am ready to sell my scooter to you for rupee 15000,. B says i am ready to purchase your scooter for rupee 15000 . it is an express acceptance.
Implied or mental acceptance or acceptance by conduch : Such acceptance is not communicated by words. It is communicated by the conduch of offeree only. It is also a valid acceptance and creates a valid agreement.
Explain the relationship between offer and acceptancee.
Ans :- Acceptance is to offer what is leghted match is to a train of fun powder : This statement was propounded by sir william anson. He illustranted the relationship of offer and acceptance with a train of gun powder and a lighted match. He stated that a train of gun powder is not hazardous in itself because it cannot explode on its own. As soon as a lighted match is brought in contact with a train of gun powder, the gun powder explodes and once ity has exploded ,it cannot be undone because now it is too late. However, the man who is leading the train, may remove the gun powder before the match is applied.
Sir Williamson compared an offer with a train of gun powder and acceptance with a lighted match. He said that an offer has no meaning in itself. It is the acceptance which makes it meaningful and convert an offer into a promise or an agreement. Once the offer is accepted it cannot be recalled.
Define communication and conditions to fulfit it.
Ans :- communication :- communication means to put to knowledge. When one party say or does something andc the other party has come to know it , it is called communication
When is communication complete
- Communication of offer : According tosection 4 the communication of proposal is complete when it comes to the knowledge of the person to whom it is made.”
- Communication of acceptance : communication of acceptance has, two aspects (i) as against the proposer or offeror and (ii) as against the acceptor or offeree. According to section 4. The communication of an acceptance is complete – as against the proposser, when it is put in a course of transmission to the person to whom it is made, so as to o be out of the power of the person who makes it as against the person to whom is ts made, when it come to his knowledge Of the proposal.
- communication of revocation : it also has two aspects : (i) as against the person who makes it and (ii) an ageinst the person to whom it is made. According to section 4. “The communication of a revocation is complete – as against the person who makes it when it is put in a course of transmission to the person to whom it is made so as to be out of the power of the person who makes it : as against the person to whom it is made when it comes to his knowledge
Define consideration .
Ans :- consideration : consideration is an essential element of a valid contract. An agreemtn without consideration is gnerally void. Consideration means something in return it is the price agreed to be paid by promisee for the obligation .
According to section 2 (d) of indian contract act. “”When at the desire of the promisor , the promisee or any other person has done or abstained from doing or does or abstains from doing or promises to do or to abstain from doing something such act or adbtnence or promise is called a consideration for the promise.”
Accoridng to sir frederick pollock, “Consideration is the price for which the promise of the other is bought and the prom ise thus given for value is enforceable. When a transaction takes place, each party gets something . this something is called consideration”
Thus it may be concluded that consideration is price paid by promisee paid for the obligation of promisor . this price mamy be an act or an abstinence or a promise.
Explain the doctrine of privity.
Doctrine of privity : under indian contract act, consideration may move form promisee or any other person on behalf of promisee it implies that consideration to a contract may come from a third party also . thus the concept of stranger of consideration’ is valid and accepted . Howerver, the definition of promisor and promisee as per section 2(c) imply that a conteract canot be enforced by a person who is not a party to a contract (a ) stranger to a contract ), cannot sure on it it is called the doctrine fo privity.
Distinguish between a strangert to consideration and a stanger to contract.
Ans :- stranget to consideration : Consideration may be given by promise or even by third party. When consideration is given by a third party, the promisee is caled stranget to consideration. Stranget to consideration ca get the promisee enforced.
Stranget to contract : if a person is not a party to a contract is given by a third party promisee is called a stranget to contract.
(ii) A stranget to consideration can sue to get the promise enforced. A stranget to contract cannot sue on it (with some exceptions)
(iii) A stranget tro condsideration is a party to contract but a stranget to contract is not at all a party to contract.
Write short note on capacity of parties to a contract.