Valid Contract Elements Quiz

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What distinguishes franchise agreements from other agreements in restraint of trade?

Franchise agreements are not regarded as agreements in restraint of trade due to their characteristic of allowing individuals to operate under a brand rather than solely restricting business activities.

Under what conditions are agreements in restraint of trade considered void?

Agreements are deemed void if they impose unreasonable restrictions on trade or if they inhibit free competition without valid justification.

What impact do negative covenants have on contracts?

Negative covenants restrict one party from engaging in certain activities, which can help protect business interests but may also be challenged if overly broad or unreasonable.

What are the implications of agreements in restraint of legal proceedings?

<p>These agreements are often void as they infringe upon the parties' rights to seek legal recourse and may undermine the justice system.</p> Signup and view all the answers

How does Section 28 affect agreements in restraint of legal proceedings?

<p>Section 28 expressly invalidates agreements that prevent parties from commencing legal actions or courts from adjudicating disputes, promoting justice.</p> Signup and view all the answers

What are the consequences of an agreement that is declared void?

<p>Void agreements have no legal effect, meaning the parties cannot enforce them or seek damages related to the agreement.</p> Signup and view all the answers

What is a key characteristic of a bilateral mistake?

<p>A bilateral mistake occurs when both parties to a contract are mistaken about a fundamental fact, potentially allowing for rescission of the contract.</p> Signup and view all the answers

Explain the term 'void agreements' as mentioned in Section 7.1.

<p>Void agreements are contracts that lack legal enforceability from the moment of creation, as they violate legal precepts or public policy.</p> Signup and view all the answers

What makes an object of an agreement unlawful according to the law?

<p>An object is unlawful if it is forbidden by law, defeats the provisions of any law, is fraudulent, implies injury to another, or is considered immoral.</p> Signup and view all the answers

What types of agreements are expressly declared void by law?

<p>Agreements in restraint of marriage, trade, legal proceedings, uncertain agreements, wagering agreements, and impossible agreements are declared void by law.</p> Signup and view all the answers

How does Section 29 relate to the certainty of terms in an agreement?

<p>Section 29 mandates that the terms of an agreement must be certain or at least capable of being made certain to be valid.</p> Signup and view all the answers

What is an example of an agreement that is impossible to perform?

<p>A promise to make a dead man alive is an example of an impossible agreement.</p> Signup and view all the answers

What legal formalities are required for certain agreements to be enforceable?

<p>Certain agreements must be in writing or registered, such as partnership deeds and contracts for transferring immovable property.</p> Signup and view all the answers

What are restraint of trade agreements and why are they important?

<p>Restraint of trade agreements seek to limit a person's right to conduct business, and they are important because they can affect market competition.</p> Signup and view all the answers

What does a negative covenant in a contract imply?

<p>A negative covenant restricts one party from taking certain actions, such as engaging in competitive business practices.</p> Signup and view all the answers

Why are agreements not to engage in legal proceedings considered void?

<p>Agreements restraining legal proceedings are considered void as they contradict public policy by limiting access to justice.</p> Signup and view all the answers

What is required for the evidential value of information stored in a digital device to be accepted in court if it cannot be physically produced?

<p>A certificate under Section 65B(4) is necessary along with proof in accordance with Section 65B(1).</p> Signup and view all the answers

Explain the significance of using electronic mail systems over WhatsApp messaging for business partnership agreements.

<p>The Supreme Court has suggested that electronic mail systems provide stronger evidential value than WhatsApp messages in business partnerships.</p> Signup and view all the answers

Define implied contract and give an example from daily life.

<p>An implied contract is formed through the actions of parties rather than written or spoken words, such as paying for parking when one uses a paid parking lot.</p> Signup and view all the answers

What distinguishes a quasi-contract from a traditional contract?

<p>A quasi-contract is enforced by law despite the absence of a contractual relationship, such as returning lost goods to their owner.</p> Signup and view all the answers

What is the legal implication of a person boarding a bus with respect to contract law?

<p>When A boards the bus, the law implies that A agrees to pay for the bus services, thus establishing an implied contract.</p> Signup and view all the answers

What are the two categories of contracts based on execution?

<p>Contracts can be categorized as executed, where all parties have performed their obligations, or executory, where some obligations remain unfulfilled.</p> Signup and view all the answers

How does Section 65B relate to the digital presentation of evidence in legal proceedings?

<p>Section 65B outlines the criteria for admissibility of electronic records as evidence, ensuring they meet specific standards for reliability.</p> Signup and view all the answers

In the context of business law, what effect does a negative covenant have on contractual agreements?

<p>A negative covenant restricts a party from engaging in certain activities, thereby protecting the interests of the other party in the agreement.</p> Signup and view all the answers

Flashcards

Void Agreements

Agreements that are considered legally invalid from the start.

Discharge of Contract

Ways a contract can come to an end.

Discharge by Performance

A contract ends when all agreed-upon duties are fulfilled.

Discharge by Mutual Consent

Contract ends when both parties agree to terminate it.

Signup and view all the flashcards

Agreements in Restraint of Trade

Contracts that limit someone's ability to work in a specific field or location.

Signup and view all the flashcards

Quasi-Contract

A legal obligation created by the law, not by an agreement between parties.

Signup and view all the flashcards

Mistake of Fact

An error in a fact that was the basis of a contract.

Signup and view all the flashcards

Agreements in Restraint of Legal Proceedings

Contracts that prevent someone from taking legal action against another party.

Signup and view all the flashcards

Unlawful Object

An agreement with an object that's forbidden by law, defeats existing laws, is fraudulent, causes harm to someone, or is considered immoral or against public policy.

Signup and view all the flashcards

Certain Terms

A contract must have clear and understandable terms that can be determined unambiguously.

Signup and view all the flashcards

Uncertain Agreement

A contract lacking clear terms, making it unenforceable.

Signup and view all the flashcards

Digital Evidence Production

Producing digital devices containing information in court.

Signup and view all the flashcards

Impossible Performance

An agreement to do something that's not possible.

Signup and view all the flashcards

Section 65B(1) & (4)

Rules for presenting evidence from a computer system or network.

Signup and view all the flashcards

Implied Contract

A contract formed by actions, not words.

Signup and view all the flashcards

Legal Formalities

Specific legal requirements (like writing, registration, or stamping) that certain agreements must satisfy to be enforceable.

Signup and view all the flashcards

Expressly Void Agreements

Agreements that are specifically deemed invalid by law.

Signup and view all the flashcards

Executed Contract

A contract where all obligations are completed.

Signup and view all the flashcards

Possibility of Performance

Valid contracts must be based on feasable actions, not impossible tasks.

Signup and view all the flashcards

Executory Contract

A contract where obligations are yet to be fulfilled.

Signup and view all the flashcards

WhatsApp Evidence

WhatsApp messages are less reliable as evidence.

Signup and view all the flashcards

Contract Formation

Contracts can arise by words and actions. They also can arise from implied circumstances and from quasi-contractual implication.

Signup and view all the flashcards

Study Notes

Valid Contract Elements

  • Lawful object: An agreement is unlawful if forbidden by law, defeats existing laws, is fraudulent, harms another's person or property, or is considered immoral/against public policy.
  • Void agreements: Specific agreements are explicitly declared void by law (e.g., restraint of marriage, trade, legal proceedings; uncertain, wagering, impossible agreements). These are unenforceable.
  • Certainty of terms: Contract terms must be clear or capable of clarification. Vague agreements (e.g., "a hundred tons of oil" without specifying type) aren't enforceable.
  • Possibility of performance: Agreements with impossible acts (e.g., bringing a dead person back to life, discovering treasure magically) are unenforceable.
  • Legal formalities: Some agreements require written or registered documentation to be enforceable. Examples include partnership deeds, time-barred debt agreements, and property transfers (requiring writing and registration).

Proof of Digital Evidence

  • Original digital device in court: If the original digital device containing the information is physically produced in court, with the owner/operator present, no special certificate is needed.
  • Digital device not physically present: If the device is part of a computer system/network and cannot be produced in court, Section 65B(1) and its supporting certificate (Section 65B(4)) are mandatory for proving the information.

Implied Contracts

  • Actions as agreements: Contracts can be formed by the actions/conduct of parties, rather than spoken or written words. Examples include paying for parking, boarding a bus, etc. Implied contracts arise where a passenger enters a bus, and it is implied they agree to pay for the service.
  • Quasi-contracts: These are contracts inferred by law, even when no explicit agreement exists. An example is the obligation of a finder of lost goods to return them to the owner. They are based on fairness, preventing enrichment at another's expense.

Types of Contracts by Execution

  • Executed contract: A contract fully performed by both parties.
  • Executory contract: A contract not yet fully performed by one or both parties.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Quiz Team

Related Documents

Business Laws - B.Com (Hons.) - 2021 PDF

More Like This

Law Fundamentals Quiz
15 questions

Law Fundamentals Quiz

GainfulCoralReef avatar
GainfulCoralReef
Contract Law Fundamentals Quiz
17 questions

Contract Law Fundamentals Quiz

DivineMedusa avatar
DivineMedusa
Contract Law Fundamentals
13 questions

Contract Law Fundamentals

ProtectiveCentaur avatar
ProtectiveCentaur
Contract Law Basics
8 questions

Contract Law Basics

SmilingRomanArt avatar
SmilingRomanArt
Use Quizgecko on...
Browser
Open
Browser
Browser