ML BBA 5

What are the essential elements of a valid contract?

• Promise, notification, agreement, intent

• Terms, conditions, negotiation, enforcement

• Offer, acceptance, consideration, mutual assent, capacity, legality.

• Proposal, discussion, agreement, execution

Define 'capacity of parties' in contract law.

• The legal ability of individuals or entities to enter into a binding contract.

• The physical space required for executing a contract.

• The maximum number of contracts a party can enter into.

• The financial resources available to a party in a contract.

What is meant by 'free consent' in the context of contracts?

• Free consent refers to the voluntary agreement of parties to enter into a contract without any external pressures or deceit.

• Free consent is when one party benefits at the expense of the other.

• Consent given under duress is considered free consent.

• Free consent means agreeing to a contract without understanding its terms.

Explain the legality of object in a contract.

• The object in a contract must be lawful; if illegal, the contract is void.

• A contract is valid regardless of the legality of its object.

• The object must be beneficial to one party only.

• The object in a contract can be illegal if both parties agree.

What are the different ways a contract can be discharged?

• Modification of terms

• Performance, mutual agreement, breach, frustration, operation of law.

• Termination by notice

• Assignment of rights

What remedies are available for breach of contract?

• Mediation fees

• Punitive damages

• Compensatory damages, specific performance, rescission, restitution

• Injunctions

Define indemnity in the context of contract law.

• Indemnity is a contractual obligation to compensate for losses or damages.

• Indemnity means to provide legal representation in court.

• Indemnity refers to a type of insurance policy.

• Indemnity is a legal term for a contract breach.

What is a guarantee and how does it differ from indemnity?

• A guarantee involves a legal contract, whereas indemnity is an informal promise.

• A guarantee is a refund policy, while indemnity is a warranty for products.

• A guarantee is a type of insurance, while indemnity is a loan agreement.

• A guarantee is a promise to pay if another fails, while indemnity is compensation for losses.

What is the law of agency?

• The law of agency governs the relationship between a principal and an agent, allowing the agent to act on behalf of the principal.

• The law of agency prohibits agents from making decisions for the principal.

• The law of agency is only applicable in real estate transactions.

• The law of agency defines the duties of a principal only.

List the different types of agents in agency law.

• Real Estate Agent

• General Agent, Special Agent, Universal Agent, Sub-Agent, Del Credere Agent, Broker

• Travel Agent

• Insurance Agent