Legal Aspects of Business

Prof. Haradhan Das

Law of Contract(A)
Case Study -1 Voluntary & Compulsory Actions

Case Study -2 Prospecting

Case Study -3 Consideration & Contract Case Study -4 Contracts with Mischief Case Study -5 - Compensation

Law of Contract(B)
Definition of Contract

Constituents of Contract
Relationship

between Contract , agreement ,promise & offer Essential Elements of a valid contract Void Contract vs. Void Agreement Consequences of Rescission of a voidable contract Distinction between Fraud & Misrepresentation

Case Study -1
Amal Said to Sujay I should have done my

homework. But, I bought this clip for Rs 1400/but, no use to me. Sujay responded I have been desperately looking for this clip . Amal exclaimed really, I can sell it to you right now. Sujay replied Accepted, Thank you. Here is Rs 1400/.

Case Study -2
Explanation There has been a meeting of two minds Amal made an offer and Sujay accepted it. In this case Parties are bound by rights & obligations towards each other.

 After thought , Sujay said Actually I cannot buy

it from you because the receipt be in your name and I cannot get it reimbursed from my office. Amal insist that an agreement had been formed between the Parties and Sujay is breaching the contract. Decide ?

Case Study -3
Rejection of offer-

Rohan says to Shyam I got a job transfer. I shall

sell my Motorcycle to you for Rs 35000/-. Shyam replied Thank you Sir, I am not interested. Principle An offer can be accepted & rejected. If the offer is rejected , that is the end of it. However, If an offer is accepted, an agreement is formed.

Case study -4
An advertisement of an airline is announced on

the billboard fly BBSR Delhi for Rs 3200/-.Call our Airline act 949016894. Ramesh called the Airline and asked for a ticket for the next week. The Airline refused to give the Ticket for that fare. Questions Is the advertisement by the Airline an offer? In this arrangement, who is making an offer ?

Definition
Contract is an agreement enforceable by law

Contract = Agreement + Legal Obligation

An agreement refers to every promise forming the

consideration for each other. Therefore, mutuality is the very basis of an agreement. The promise is defined as an offer (Proposal) when accepted becomes a promise. Therefore, a promise implies an accepted offer.

Relationship between Contract,Agreement , Promise & Offer

A contract, essentially , is an agreement.

An agreement is a set of two promises, one

following from the offeror and the other from the acceptor. A promise is an accepted offer or proposal. An offer is a promise of the performance, which is however, conditional upon a return promise or an act or forbearance being received in exchange for it.

Essential Elements of Establishing a Valid Contract

Intention to create legal relations husband

promised to wife is not a legally binding agreement. Legitimate Consideration Capacity of Parties Genuineness of Consent Lawful Object Possibility of performance

Void contract vs Void agreement