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Principles Of Management > law > Flashcards

law Flashcards

1
Q

“Offer + Acceptance = Contract” – Is it true. Comment on your
answer.

A

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2
Q

“No Consideration No Contract” – Do you agree this statement.

A

No consideration no Contract : A legally binding contract needs consideration as it is a vital element. So, a valid contract does not exist without consideration. We know that by promise one party give or sacrifice something and other party take something. This type of give and take or sacrifice is called consideration by law. If someone promises without any consideration that is called gift. On the other hand give premise exchange of any consideration that is called contract. So it is clearly seen that to become a valid agreement we need to consider its materiality and the level of voidable.

An agreement made without consideration is void unless it is expressed in writing and registered under the law for the time being in force for the registration of documents and is made on account if natural love and affection between the parties standing in near relation to each other. Agreement must be in writing and registered. If you have an oral arrangement or unregistered agreement although it is in writing, it will not be valid even though it proceeds from natural love and affection and even if the parties to it are near relations to each other. It must be both in writing and registered.

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3
Q

State any four essential elements of a Contract

A

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4
Q

List any four types of Contract

A

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5
Q

‘Mere silence does not amount to fraud’ – Examine.

A

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6
Q

Compare and contrast Misrepresentation and Fraud.

A

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7
Q

“Minor is liable to pay for the necessaries supplied to him” –
Justify this statement.

A

1

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8
Q

Write short note on Coercion and Undue Influence.

A

When a person is compelled to enter into a contract by the use of force by the other
party or under a threat, “coercion” is said to be employed.
Coercion includes fear, physical compulsion and menace to goods.
Example: - A threatens to kill B if he does not lend Rs. 1000 to C. B agrees to lend the
amount to C. The agreement is entered into under coercion.

Sometimes a party is compelled to enter into an agreement against his will as a result
of unfair persuasion by the other party. This happens when a special kinds of relationship
exists between the parties such that one party is in a position to exercise undue influence
over the other.

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9
Q

List out the modes in which a contract may be discharged

A
  1. Byperformance.
  2. By agreement orconsent
  3. Byimpossibility of performance
  4. By lapse oftime
  5. By operation oflaw
  6. By breach ofcontract
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10
Q

State any four ways in which a Contract may get discharged

A
  1. Byperformance.
  2. By agreement orconsent
  3. Byimpossibility of performance
  4. By lapse oftime
  5. By operation oflaw
  6. By breach ofcontract
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11
Q

Explain Quantum Merit

A

The phrase quantum merit literally means as much as earned. A right to sue on a
quantum merit arises where a contract, partly performed by one party, has become discharged
by the breach of contract by the other party. The right is founded not on the original contract
which is discharged or is void but on an implied promise by the other party to pay for what has
been done.

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12
Q

Illustrate Remission

A

Remission means acceptance of a lesser fulfillment of the promise
made. Example :-A owes B Rs. 5000 A pays to B and B accepts, in satisfaction of the whole
debt for Rs.2,000paid at the time and place at which Rs.5000 were payable. The whole debt
isdischarged.

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13
Q

“An agreement enforceable by law contracts” – Justify this

statement.

A 
contract
agreement
essential elements of a contract
void agreement
discharge of contract
agreements, which are expressly declared to be void.
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14
Q

LEGAL RULES AND ESSENTIALS OF A VALID CONSIDERATION

A

It is required both for the formation and discharge of an agreement or contract.
2. It must be lawful
3. It need not be adequate
4. It must be real and not illusory
. It must move at the desire of the offeror
It may be past, present, or future
It may be either positive or negative

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15
Q

“All agreements are not contracts but all contracts are
agreements” – Do you agree this statement. Explain with suitable
examples.

A

contract
agreement
offer + acceptance = agreement
essential elements of a contract

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16
Q

Types of Offer

A

express
An offer, which is express by words, spoken, or written is called an “Express Offer”.

implied
If the offer is made by the conduct of the parties, it is called as “Implied Offer”

specific
Where an offer is made to a definite person it is called a specific offer. It can be
accepted only by the person to whom it is made.

general
A general offer is one which is made to be world at large or public in general and not to
any specific person. Advertisement for tracing a missing person or thing, seeking valuable.
Information relating to a missing person or thing etc

standing
An Offer which remains open for acceptance over a period of time is called a standing offer

counting
When some changes are made by the offeree in the original made by the offeror, it is
called the “Counter Offer”

cross
When two parties make an identical offer to each other, in ignorance to each other’s offer

17
Q

LEGAL RULES OF A VALID OFFER OR ESSENTIALS

A
  1. capable of creating a legal relationship
  2. must be communicated
  3. to get the assent of the other party
  4. should have terms and conditions
  5. statement of price is not an offer
18
Q

Essentials/legal rules for a valid acceptance

A

absolute and unqualified

must be communicated

19
Q

The law regarding minor agreement is as follow

A

1) An agreement with or by a minor is void and inoperative
By looking at the Indian law, minor’s agreement is a void one, meaning thereby that it has no value in the eye of the law, and it is null and void as it cannot be enforced by either party to the contract. And even after he attains majority, the same agreement could not be ratified by him.

2) Minor can be beneficiary or a promisee or payee
One can bring a minor into a contract if he is beneficiary for the contract. The minor does not have a restriction to be a promisee or payee in a contract. Thus a minor can purchase an immovable property and also can sue for the possessions upon the tender of the money.

3) Valid contract in the case of necessaries
If a person supplies necessaries to a minor or lends money to the minor
to purchase necessary things, or to meet his educational of medical expenses, such an amount
can be recovered. Hence, the contracts by minor with minor for necessary goods or necessarily
services to mine become valid absolutely. His properties can be held for this purpose, but he is
not personally liable for this case

6) He can always plead minority
If a minor by misrepresenting this age, makes a contract with another person, he cannot be
sued
7) No specific performance
Specific performance means the actual carrying out of the contract as agreed. Since an
agreement by a minor is void, the court will never direct “specific performance” of such an
agreement but a contract entered into by his guardian or his manager of the estates

8) Minor as a partner
Generally a minor cannot become a partner in a partnership firm. But, he may be admitted to
the benefits of an existing partnership firm as a partner, with the consent of the entire partner.
But, his liability is limited.

9) The minor can acts as an agent
can perform acts within his scope of authority

10) The minor cannot be declared insolvent
if some dues are pending from the properties of the minor and he is not personally liable for the same.

20
Q

Eligible persons CONTRACTUAL CAPACITY

A

1) minor 2) persons of

unsound mind 3) other persons, disqualified by law

21
Q

INCAPACITY OF CONTRACT

A

a) Incapacity arising from status.

b) Incapacity arising from mental deficiency.

22
Q

INCAPACITY OF CONTRACT - a) Incapacity arising from status

A 
alien
company
convicts
insolvent 
married woman
23
Q

INCAPACITY OF CONTRACT - INCAPACITY ARISING FROM MENTAL DEFICIENCY

A

minors
idiots
lunatics

24
Q

TYPES OF REMEDIES FOR BREACH OF CONTRACT

A 
RECESSION 
DAMAGES
QUANTUM MERUIT
SPECIFIC PERFORMANCE
INJUCTION
25
Q

RESCISSION

A

When a contract is broken by one party, the other may sue to treat the contract as
rescinded and refuse further performance. In such a case, he is absolved of all his obligations
under the contract

26
Q

REMEDIES - DAMAGES

A

Monetary compensation to the injured party for breach of contract.

27
Q

QUANTUM MERUIT

A

It means “what one has earned” or “as much as he has earned”. In simpler terms, it refers to the actual value of the services rendered or performed.
Quantum meruit involves cases where someone gets a benefit while the other party gets nothing. In contracts, this refers to the benefit or enrichment which one party receives as a result of the other party’s actions.

For example, ‘S’ is the daughter and ‘M’ is the father. They entered into an agreement where ‘M’ asked ‘S’ to provide medical care for him while he was sick. In return, ‘M’ agreed not to write a will and agreed to give his estate to ‘S’ after he dies with an intent to give her a fair portion for the services rendered. However, ‘M’ soon died, leaving all of the estates for his brother and nothing for ‘S’. Here ‘M’ was unjustly enriched as he received the services but in return ‘S’ received nothing.

28
Q

remedies - specific performance

A

In certain cases of breach of contract, damages are not an adequate remedy. The court
may, in such cases, direct the party in breach to carry out his promise according to the terms of
the contract.

29
Q

remedies - INJUNCTION

A

Were a party is in breach of a negative term of contact (i.e., where he is doing
something which he promised not to do), the court may, by issuing an order, restrain him from
doing what he promised not to do. Such an order of the Court is known as aninjunction”.

Principles Of Management (7 decks)

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