BUSINESS LAW. I SEM MBA
ONE MRKS QUESTIONS:
1. What is void agreement
Void means having no legal value and agreement means Arrangement, promise or contract made with somebody. So void agreement means an agreement that has no legal value.
“An agreement not enforceable by law is said to be void”. [Sec 2(g)]
A void agreement has no legal effect. An agreement which does not satisfy the essential elements of contract is void. Void contract confers no rights on any person and creates no obligation.
2. what is voidable contract
Voidable Contract - An agreement which is enforceable by law at the option of one or more of the parties thereto, but not at the option of the other or others,
3. Define quasi contract
It is an obligation imposed by law in the absence of a contract to prevent unjust enrichment.
4. what is offer, acceptance, consideration, consent and capacity to contract
offer ; According to sec 2[a] “ When one person signifies to another his willingness to door to abstain from doing anything with a view to obtaining the assent of that other to such act or abstinence he is said to make an offer. The offer is also known a proposal or it is also caller promise. The person who makes the offer is called an offeror.
The person to whom the offer is made is called offeree
Acceptance is defined as ” When the person to whom the proposal is made signifies his assent there to the proposal is said to be accepted.
Consideration :When at the desire of the promissor, the promisee or any other person has done or abstained from doing, does or abstains from doing, promises to do or abstain from doing something such act or abstains or promise is called the consideration for the promise
Consent of the parties means that there is perfect identify of mind of both parties and there should not be any misunderstanding the subject matter of the contract.
Section 13 of Indian Contract Act says
“two or more persons said to consent when they agree upon the same thing in the same sense”.
Indian Contract Act “
5. What is ab initio
The term "void ab initio", which means “to be treated as invalid from the outset [beginning???]
. For example, in many jurisdictions where a minor person signs a contract under that contract is treated as being "void ab initio".
6. What are illegal agreements
An illegal agreement, under the common law of contract, is one that the courts will not enforce because the purpose of the agreement is to achieve an illegal end. The illegal end must result from performance of the contract itself. BusinessDictionary.com
Contract whose formation, object, or performance is so iniquitous, against the law of the land, or contrary to public policy, that no court will entertain or enforce it. Technically, it is a 'no contract.' In situations where two wrong doers enter into an illegal contract and one of them takes advantage of the other, law normally will not intercede to rectify the situation
7. what is agreement opposed to public policy
if any agreement is result in doing harm to the public or against public welfare such agreement is opposed to public policy and hence they are void. The idea is that no can do harm to the public welfare or public good.
Heads or example of public policy
a) Agreement for Trading with enemy
b) Trafficking in public office
c) Interference with administration of Justice
d) Stifling prosecution
e) Maintenance and Champerty
f) Champerty means it is the bargain in which a stranger promises to give assistance money or other wise to another person in recovering property and to share it. g) Marriage brokerage contracts
h) Agreement to do something opposed to duty
i) Agreement in restraint of parental rights
j) Agreement restricting personal Liberty
J) Agreement to commit a crime
k ) Agreement in restraint of legal proceedings it may  l)...
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