Legal Aspects of Business
Legal Aspects of Business
Legal Aspects of Business
Answer any one of the questions 1 and 2. Question number three is compulsory. Each question carries
15 marks and total marks 30.
1.”All agreements are not contracts but all contracts are agreements.” Discuss the statement
explaining the essential elements of a valid contract.
NOT TRIED
ANSWER:
An offer must be communicated to the offeree. An offer must be communicated to the person to
whom the same is addressed. Communication of offer is important to conclude an agreement because
acceptance can be given only after one knows about the offer. This applies to both 'specific' as well as
'general' offer.
When one person signifies to another his willingness to do or to abstain from doing anything with a
view to obtaining the assent of that other person to such act or abstinence, he is said to make a
proposal.”
The person making the proposal is called the ‘offeror’ or ‘promisor’. The person to whom the offer is
made is called the ‘offeree’ or ‘promisee’.
i. Offer must be made with a view to obtaining the consent of the other party to do or to
abstain from doing the act:
The offer must be made with an intention to get the consent of the other party to do or to
abstain from doing the act and not simply with a view to making known the intention of
making an offer.
A] Over a cup of coffee in a restaurant, A invites B to a dinner at his house on a Sunday. B hires a taxi
and reaches A’s house at the appointed time, but A fails to perform his promise. Can B recover any
damages from A? {5 marks}
Answer:
NO. B can not recover damages from A as both parties enjoy a social relationship and there is no
intention to create a legal relationship in this case. So, it was just an agreement which is not
enforceable by any Law.
B] M mows L’s lawn without being asked by L to do so. L watches M do the work but does not attempt
to stop him. Is L bound to pay any charges to M? {5 marks}
Answer:
YES, L is bound to pay the charges as he did not stop him from mowing the lawn. His implied silence is
considered as Speech here.
C} P applied for the principal’s post of a local college, and the Governing Body passed a resolution
appointing him. After the meeting, a member of the Governing Body privately informed him of the
resolution. The resolution was subsequently rescinded. P claims damages. Will he succeed? {5 marks}
Answer: