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BUSINESS LAW - CONTRACT LAW |
COMPREHENSIVE QUESTIONS WITH
SOLUTIONS
Contract -correct-answer-between two or more parties that is enforceable by the
court of law
Elements of a contract -correct-answer-1. Agreement = Proper author, Proper
accepts
2. Consideration = For something of legal value ( I agreed to pay 10K to paint
appartment , you agreed to do it)
3. Capacity
4. Genuine assent (author of text book points it out as defence) = 5/ Voluntary
coming together
5. Legal purpose - The objective of the contract must be for a legal purpose. For
example, a contract for illegal distribution of drugs is not
a binding contract because the purpose for which it exists is not leg
By operation of law - rejection -correct-answer-i. Counter offer
ii. Death and incapacity
iii. A subsequent illegality
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Promissory estoppels -correct-answer-1. Stop someone from taking back their
promise. Based on detrimental reliance / Actual reliance. Is Unjust not enforce.
Acceptance - means we have an argument -correct-answer-1. If we have a
bilateral contract (promise for a promise),
2. b. unilateral contract only works with complete (100%) performance - promise
for an act ( person doesn't accept until the work is preformed). It's accepted and
completed all at one time. If you tell someone who 90% complete painting your
house a qusi contract.
Mirror image rules -correct-answer-You must accept exact rules of the contract
hence if any material term of a contract is altered than it is not a contract
Materal terms -correct-answer-Land is based on property description and price
while sale goods quantity.
Option contract -correct-answer-Contract in itself - a consideration is give
BUSINESS LAW - CONTRACT LAW |
COMPREHENSIVE QUESTIONS WITH
SOLUTIONS
Contract -correct-answer-between two or more parties that is enforceable by the
court of law
Elements of a contract -correct-answer-1. Agreement = Proper author, Proper
accepts
2. Consideration = For something of legal value ( I agreed to pay 10K to paint
appartment , you agreed to do it)
3. Capacity
4. Genuine assent (author of text book points it out as defence) = 5/ Voluntary
coming together
5. Legal purpose - The objective of the contract must be for a legal purpose. For
example, a contract for illegal distribution of drugs is not
a binding contract because the purpose for which it exists is not leg
By operation of law - rejection -correct-answer-i. Counter offer
ii. Death and incapacity
iii. A subsequent illegality
, 2|Page
Promissory estoppels -correct-answer-1. Stop someone from taking back their
promise. Based on detrimental reliance / Actual reliance. Is Unjust not enforce.
Acceptance - means we have an argument -correct-answer-1. If we have a
bilateral contract (promise for a promise),
2. b. unilateral contract only works with complete (100%) performance - promise
for an act ( person doesn't accept until the work is preformed). It's accepted and
completed all at one time. If you tell someone who 90% complete painting your
house a qusi contract.
Mirror image rules -correct-answer-You must accept exact rules of the contract
hence if any material term of a contract is altered than it is not a contract
Materal terms -correct-answer-Land is based on property description and price
while sale goods quantity.
Option contract -correct-answer-Contract in itself - a consideration is give
