Fluent Essays

I attached here the assignment and chapter 3 and 4 bl_1_assignment__3_8bad1d6a27ebaabecc699eee2f66a85e__1_.docx chapter___4_introduction_to_law_of_contract___1___copy.ppt chapter___3_classification_and_survey_of_type_of_business_organisations.ppt Unformatted Attachment Preview Academic Affiliation with California State University – Northridge Department of Business Administration and Accounting Individual Assignment-3 Second Semester 2019-20 Course Code Course Name Course Instructor Date Section Students Name : BLAW280 : Business Law-1 : Mr. Syed Talha Hussaini : 13th May, 2020 : 1,2 and 3 : ……………………………………………………………………….. I. D. Number : ……………………………………………………………………….. Question No. O1 I II III Outcomes Total O2 Marks Obtained O3 O4 O5 10 10 10 O6 Maximum Comments if any Marks 10 10 10 /30 Total Marks(in figures) Total Marks(in words) Evaluator’s Signature Internal Moderator External Moderator Remark: Candidates are advised to read all instructions before answering. Objectives: The following student learning outcome of the course in this continuous assessment tool: SLO3: Explain the different forms of business- sole trader, the partnerships, companies and their formation. SLO4: Differentiate between -sole trader, the partnerships, companies and their types. SLO5: Identify the elements needed to create a valid contract. Description of the Tool: Read the questions given below and answer them accordingly in brief. Purpose: The purpose of this assignment is to explain different types of business and differentiate between types of business. To identify the elements needed to create a valid contract. Individual Assignment Submission Date (s): 24th May, 2020 Assessment Weighting: 30\% Plagiarism Policy “Plagiarism is using someone else’s work, in whole or in part, as one’s own without crediting or citing that source properly. It also occurs if the permission has not been obtained from the author to use his or her work. It includes all electronic sources, all printed and written sources; and all verbal sources. In BUC sharing one’s work with other students is also considered an act of plagiarism. Plagiarism can lead to punishment ranging up to giving grade (f) in the course or dismissal from the college” Submission Instructions ▪ ▪ ▪ ▪ ▪ ▪ Use A4 size paper Use Times New Roman 12 font size with double (2) line spacing Use first page of assignment as cover page to submit your work Submit assignment as one file Late submission is subjected to deduction of 2 marks per delayed day Student will be awarded zero grades and served with academic warning in case of submitting plagiarized work Page 2 of 3 TASK –A (Chapter-3) I. Fill in the blanks with suitable answers: 1. (1 X 10 =10 Marks) Business are divided into types basing on ____________________________________ ______________________________________________________________________. 2. _________________ will have rights and duties like human beings? 3. Sole trader is a _______________sector business. 4. Can we form partnership without agreement? _________. 5. Can partners share only profits in partnership? _________. 6. Unlimited partners will have right to ________________. 7. If debts in business limited partner will lose _____________. 8. Partnerships are divided into types basing on _____________________________. 9. Persons who forms company are called as ____________________. 10. Companies are managed by __________________. II. Answer the following questions briefly. (10 Marks) a. Explain about Limited Liability Partnership(LLP). Can we form this business in Oman?(3+2=5 marks) b. Explain about formation of a company in brief. (5 marks) TASK –B (Chapter-4) III. Answer the following questions briefly. (10 Marks) a. Describe briefly about types of contracts. How contracts can be made? (4+2=6 marks) b. Explain about types of agreements. (4 marks) END OF ASSIGNMENT Page 3 of 3 Introduction to the Law of Contract  A contract is a legally binding agreement  a promise or set of promises  which the law will enforce. 1  These are formal contracts known as deeds.  contracts are in writing and “signed, sealed and delivered”.  the signature of the person making the deed must be witnessed and attested.  Attestation means making statement that the deed is signed in front of a witness 2  Contracts which are not deeds are known as simple contracts.  informal contracts  may be made in any way-orally, in writing,  implied from conduct (means understood from behavior) 3 ▪ An agreement - An agreement is formed when one party accepts the offer of another. ▪ Consideration - each side promise to give or do something for the other. ▪ Intention - The parties must have intended their agreement to have legal consequences. ▪ Form - certain standards must be observed. ▪ Capacity - The parties must be legally capable of entering into a contract. ▪ Genuineness of a consent – agreement should not be forced and involve a “meetings of minds” (both parties should agree) ▪ Legality – it should be according to law 4 The absence of an essential element will lead to the following kinds of contracts    void voidable unenforceable 5    The term’ void contract’ means no contract A contract can be void if we entered it by mistake, or anything agreed is impossible to do, or illegal, or when there is no consideration or illegal consideration, or if the parties are incompetent to agree. Any goods or money obtained under the agreement must be returned. 6    Remains valid till one of the party takes steps to avoid it(cancel it) Contracts founded on misrepresentation, some contracts made by minors fall in this category and where consent is by force Good obtained should be given back as early as possible 7     Is a valid contract But cannot be enforced in court Evidence in writing required (eg. Partnership agreement) Delay 8 OFFER  Atleast 2 parties required  Offeror – the person who makes the offer  Offeree – the person who accepts the offer  Offer – Proposal made by the offeror to offeree with a promise if the offeree accepts the terms stated by the offeror 9 TYPES OF OFFER:  Express offer: offer made by words- written or oral.  Implied offer: an offer made by conduct.  Specific offer: an offer made to a definite person or definite group  General offer: an offer made to a group or public at large. 10  Generally all type of promotions of a product or service, before the making of an offer, can be called an invitation to offer. Display is an ‘invitation to offer’. eg:- advertisements, display etc. 11 Case: X announces an auction in a news paper and mentions a place, date and time. Y travels from another city to participate in the auction. After reaching the site, he realizes that the auction has been cancelled. The auctioneer could have put up another advt. informing the people about the cancellation, but did not do it. As offer in an auction is to be made by the participants and, advt. was only an invitation to offer. Thus no legal relationship had been created between X and Y. Further, as in an auction, the participants offer and the auctioneer accepts, the auctioneer is not bound to accept the highest bid. The highest bid is also only an offer and needs to be accepted by the auctioneer for an agreement to be formed.  12 Auction➢ Auctioneer fixes a minimum price ➢ participants make calls (offer) – auctioneer accepts. (Each call made by a participant is an offer capable of being accepted by the auctioneer. A subsequent call quashes the previous call and puts itself as the offer) 13  Tender is only an invitation to offer.  The parties submitting their tenders make the offer and the person asking for the tenders accepts one of them. 14 Consider the following situation1. Abdullah offers to sell a computer to Mohammed for OMR 200. Mohammed says no. Thereafter, Mohammed comes back and says, ‘I accept your offer.’ In the meanwhile, Abdullah has sold the computer to another person. Had the agreement been made b/w Abdullah and Mohammed? 2. Ahmed with the intention of selling his car to Salem, offers it to him for OMR 3000. Salem says that he is ready to pay only OMR 2500.Ahmed revises his price to OMR 2700. Upon this, Salem raises his bid to OMR 2600.Ahmed agrees to sell the computer at this price. In this bargain, finally Salem offered and Ahmed accepted. Contd… 15 ▪ The offer of Abdullah has been rejected by Mohammed explicitly. ▪ The initial offer of Ahmed had been rejected by the implicitly by counter –offer of OMR 2500 by Salem. ▪ Thus , the rejection of an offer can be explicit or implicit. 16 ➢ The offeree accepting the offer subject to certain conditions or qualifications, he is said to make counter-offer 17        When the offer is not accepted in the prescribed mode. When offer is not accepted within prescribed time. By rejection or Counter offer. By death or insanity of either party to the contract. By revocation. By subsequent Illegality or destruction of subject matter. On failure to fulfill a condition precedent to acceptance. 18 When the person to whom the proposal is made signifies his assent (permission) thereto, the proposal is said to be accepted Legal Rules for a Valid Acceptance: 1. 2. 3. 4. It must be by the offeree. It should be in prescribed form. It should be within specified time. Communication of acceptance. 19  ‘quid pro quo’- something in return  Consideration is a crucial aspect of a contract. It separates the agreements which can be enforced by courts from those that cannot. Consideration is about an exchange of goods, services or benefits. Consideration can be in various forms- (price)     A benefit so received or the loss, damage or inconvenience so caused is regarded in law as consideration for the promise. Eg. Z has come up with a new idea for manufacturing a chemical. He pays Rs. One lakh to C to put it in use. 20 Rule of law of Contracts: No consideration, no contract.  A promise without consideration cannot create a legal obligation. 21 An agreement made without consideration is valid if it is expressed in writing and is registered under the law relating to registration of documents and is made an account of natural love affection b/w parties standing in near relation to each other.  A promise without consideration is valid if it is a promise to compensate wholly or in part a person who has already voluntarily done something for the promisor or something the promisor was legally compellable to do. (A finds B’s purse and gives it to him, and B promises to give A Rs 100, this a valid contract)  22  No consideration, no contract does not apply to completed gifts.  No consideration is required in the case of an agreement b/w a principal and agent. 23  Consideration must not be in the past  Consideration must move from the promises  Consideration should not be illegal  Consideration must be sufficient but not be adequate 24  Executed Consideration – one party promises to do something in return for the act of another such as reward cases  Executory consideration – parties exchange promises to perform acts in the future such as cash or delivery term 25 ▪ ▪ A contract is a relationship b/w the contracting parties. A contract binds to the parties to it. ▪ Only those parties can acquire rights or liabilities towards each other. ▪ Other persons are 3rd parties or strangers to the contract and they can neither have any rights nor any obligations. A stranger to contract cannot maintain a suit. ▪ Eg: Mr. S, bought tyres from Dunlop Rubber Co. and sold them to Mr.D, a sub-dealer, Mr.D agreed with Mr.S, that he will not sell the tyres below Dunlop’s list price and to pay the Dunlop Co. $5, as damages on every type Mr.D sold. Mr.D, sold two tyres at the less than the list price and thereupon Dunlop Co, sued him for the breach. Held, Dunlop Co., could not maintain the suit as it was a stranger to the contract between Mr.D and Mr.S. 26  Based on the intention of the parties, contracts are divided into two categories 1 Business or Commercial Agreements 2. Social or Domestic Agreements 27 Parties intend to make legally enforceable contracts  Can remove the intention by including an express agreement Example ➢ Collective agreements between company and employees ➢ Advertisements – not all; some advertisements like “ if you can find the same holiday at a lower price than what we offer we will give you the difference” is legally binding  28 Incapacity of parties: ( Minors and persons suffering from mental instability) 1. 2. 3. Every person is competent to contract if he Is of the age of majority. Is of sound mind. Is not disqualified from contracting by any law to which he is subject. The flaw in capacity may be due to minority, lunacy, idiocy, drunkenness, drug addiction or status, insolvent person, an alien enemy. 29 Meaning of consent: When two or more persons agree upon the same thing in the same sense they are said to consent. Free Consent: Where there is a consent but no free consent the contract is voidable at option of the party whose consent was not free.  Free consent is one of the essentials of a valid contract. 30 A consent is said to be free when it is not caused by 1. Coercion 2. Undue influence 3. Fraud 4. Misrepresentation 5. Mistake 31 1. Coercion i) committing or threatening to commit any act forbidden by the criminal/penal law ii) the unlawful detaining or threatening to detain any property to the prejudice of any person whatever with the intention of causing any person to enter into an agreement. 2. Undue influence UI consists in the improper exercise of power over the mind of one of the contracting parties by the other. 32 3. Fraud: Fraud means and includes any of the following acts committed by a party to a contract with an intent to deceive the other party thereto or to induce him to enter into a contract. 1. The suggestion of a fact of that which is not true by one who does not believe it to be true. 2. Active concealment of a fact by one having knowledge or belief of the fact. 3. Promise made without any intention of performing it. 4. Any other act fitted to deceive. 5. Any such act or omission as the law specifically declares to be fraudulent. 33 4. Misrepresentation: ➢ Misrepresentation is made by one party which induces the other person to enter into a contract. False statement which is not incorporated into the contract. ➢ Three types of Misrepresentation 1. Fraudulent Misrepresentation – liable for fraud if he makes a statement which he know is a false ➢ 2. 3. Negligent Misrepresentation – person makes the statement with no reasonable ground to believe it as true. Innocent misrepresentation – Statement Made by a person who had reasonable ground to believe that it was true 34 5. Mistake Mistake may be defined as an erroneous belief on the part of the parties to the contract concerning something pertaining to the contract. Eg. A agrees to buy from B a certain house. It turns out that the house had been destroyed by fire before the time of the bargain though neither party was aware of the fact. The agreement is void- a mistake on part of both. 3 types of mistakes 1. 2. 3. Mistakes relating to subject matter of the contract Mistake relating to identity of one of the parties Mistaken signing of a written document 35 • By performance • By agreement • By frustration • By breach 36 By performance ▪ ▪ Parties should carry out the contracts exactly as per the contract If it is not so , he is not discharged from the contract 37 By agreement ▪ ▪ ▪ Contract should end automatically with the happening of some other event 2 parties can end the contract by giving notice By making a separate agreement 38 By frustration (disappointment) ▪ Impossible to perform from the outset ▪ If party is dead, ill, sick etc 39 By Breach ▪ ▪ ▪ Breach of Contract can occur in many ways One party state in advance that he don’t want to carry out the contract or fails to carry out The other party can claim for damages 40 Various remedies exist in contract law. These include Damages • Specific performance • Injunctions • Repudiation • Rescission • •Restitutionary awards 41 Damages in contract law are a legal remedy available for breach of contract. Damages are an award of money to compensate the innocent party. The primary purpose of damages in contract law is to place the injured party in the position they would have been in had the contract been performed. 42 Parties to a contract may legitimately agree the amount of damages to be paid in the event of a breach and provide for this in their contract terms. This provides certainty to each party so that they know exactly what they are liable to pay should they be unable to perform their obligations. Such a clause will be enforceable by the courts only in so far as it is a genuine pre-estimate of loss. If it is a genuine pre-estimate it is known as a liquidated damages clause. 43 Unliquidated damages by contrast are the damages claimed when the loss has not been pre-determined by the parties. The court takes a compensatory approach to the award of unliquidated damages for breach of contract. That is to say that the court looks to restore the loss suffered by the innocent party, to put it back into the position it would have been in but for the breach. 44 Specific performance is an equitable remedy available at the discretion of the judge. It is an order by the court requiring one party to perform their contractual obligation. Whilst it is often said that contracts are made to be performed and parties should be held to their contractual obligations. 45 Repudiation is a remedy available for breach of contract. Repudiation involves bringing an end to the contract. It is only available for breach of condition as oppose to breach of warranty. 46 Rescission is an equitable remedy available at the discretion of the judge. Rescission seeks to place the parties back in their pre-contractual position and thus represents an unraveling of the contract. Rescission is available where a contract is voidable as a result of a vitiating factor such as misrepresentation, undue influence or duress. The right to rescind may be lost if the claimant affirms the contract, where a third party acquires rights in the goods, through lapse of time or where restitutio in integrum is not possible. 47 Injunctions are another form of an equitable remedy available only at the discretion of the judge. There are three types: 1. Interlocutory or interim (temporary injunction until a court hearing) 2. Prohibitory (a court order that a party must not do something) 3. Mandatory (an order that a party must do something) 48   No money changes hands in this type of contracts. there is a straight exchange of goods between the parties. 49    An agent is someone who is employed by a principal to make contracts on his behalf with third parties. An employee who makes contracts on behalf of his employer is acting as an agent. A shop assistant, for example, is in this category. 50 Definition  A contract for the sale of goods is defined in s 2(1) of the Sale of Goods Act 1979 as: “A contract by which the seller transfers or agrees to transfer the property in goods to the buyer for a money consideration called the price.” Example  Whenever you buy goods, whether from a supermarket, market stall, doorstep salesman, by mail order or using the internet, you have entered into a contract for the sale of goods.  The Sales of Goods Act 1979 applies to all contracts fo ... Purchase answer to see full attachment