Q)Define business law

Ans)The Phase Mercantile Law is generally used to denote those portions of the law which
deals with the rights and obligations arising out of transactions between persons

Q)What do you mean by capacity of parties?

Ans)It means ability of an individual to enter into a contrac

Q)Define co-ercion

Ans) Coercion is the commuting or threatening to commit any act forbidden by the IPC or
the unlawful retaining, 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

Q)What is quantum merit?

Ans) Quantum merit is used when someone does work for another person without a formal
contract. If the work benefits the other person, the law says they should pay a fair amount
for the service, even if they didn’t agree on a price beforehand. It’s about making sure
people are fairly paid for the value they provided.

Q)Who is Pawnee?

Ans) "Pawnee" refers to a party in a contract of pledge. A pledge is a bailment of goods as

security for payment of a debt or performance of a promise.

Q)What is specific guarentee?

Ans)A specific guarantee in business is when someone (the guarantor) promises to be

responsible for a particular debt or agreement if the person who owes the money (the
debtor) can’t pay.

Q)What is wager?

Ans) A wager refers to a type of contract or agreement where two parties bet on the
outcome of an uncertain event. For example, they might place a bet on the result of a
sports match or the outcome of an election.

Q)What is unilateral mistake?

Ans) A unilateral mistake happens when one party in a contract is wrong about an
important fact, while the other party is aware or not affected by the mistake.
Q)Explain the essentials features of a valid contract.

Ans) In the BCom Business Regulation subject, a valid contract must meet several
essential features to be legally enforceable. These include:

1. Offer and Acceptance: One party makes an offer, and the other party must accept it
clearly and without changes.

2. Intention to Create Legal Relations: Both parties must intend for the agreement to have
legal consequences.

3. Lawful Consideration: Something of value (money, services, goods) must be exchanged

between the parties.

4. Competency of parties: The parties must be legally capable of entering into a contract
(e.g., they must be of legal age and sound mind).

5. Free Consent: Both parties must agree freely, without being forced, misled, or influenced
unfairly.

6. Lawful Object: The contract's purpose must be legal and not against public policy or the
law.

7. Certainty of meaning: The contract terms must be clear, and it must be possible to carry
out the contract.

8. Not Declared Void: The contract should not fall under categories that are declared void
by law, like certain types of wagering agreements.

Q)When does an offer comes to an end?

Ans) An offer comes to an end in the following ways:

1. Revocation: The offeror can withdraw or revoke the offer before it is accepted. Once
revoked, the offer ceases to exist.

2. Rejection: If the offeree rejects the offer, it comes to an end. A counter-offer also
amounts to a rejection of the original offer.

3. Lapse of Time: If the offer specifies a time limit, it ends after that period. If no time is
specified, it lapses after a reasonable period based on the circumstances.

4. Condition Precedent: If the offer is conditional and the condition is not met, the offer
ends.
5. Death or Insanity: If either the offeror or the offeree dies or becomes insane before the
acceptance, the offer terminates.

Q)Distinguish between fraud and misrepresentation.

Ans)Fraud is when someone lies on purpose to trick another person. It is done with the aim
of deceiving and gaining something unfairly. Misrepresentation happens when someone
makes a false statement by mistake, thinking it's true. There is no intention to deceive.

Q)Explain the rights and duties of a bailor.

Ans) Rights of a Tailor:

1. Right to Payment: The tailor has the right to receive the agreed payment after completing
the work.

2. Right to Set Terms: The tailor can set reasonable conditions, such as the time for delivery
and the number of adjustments allowed.

3. Right to Refuse Extra Work: The tailor can refuse any additional changes or work not
included in the original agreement.

4. Right to Keep the Garments: Until the customer pays, the tailor has the right to keep the
clothes (this is known as the right of lien).

5. Right to a Safe Work Environment: The tailor has the right to work in a safe and healthy
environment.

Duties of a Tailor:

1. Duty to Work Skillfully: The tailor must do the job with care and skill, ensuring the clothes
are made to the customer’s specifications.

2. Duty to Meet Agreed Deadlines: The tailor must complete the work within the agreed-
upon time frame.

3. Duty to Follow Instructions: The tailor must create the clothes based on the customer's
design and measurements.
4. Duty to Use Agreed Materials: If the tailor provides the materials, they should be of the
agreed quality.

5. Duty to Fix Errors: If the tailor makes a mistake, they should fix it without charging the
customer more.

Q)What is unfair trade practice?

Ans)Unfair trade practice refers to any deceptive, fraudulent, or unethical business

conduct that misleads consumers or gives one business an unfair advantage over
competitors. It is defined under the Consumer Protection Act, 1986, and includes practices
like:

1.False advertising: Making false claims about a product’s quality, price, or usefulness.

2.Misrepresentation: Misleading consumers about a product’s origin, sponsorship, or

certification.

Q)Who is an unpaid seller? Explain his rights.

Ans) An unpaid seller is a seller who has not received the full payment for the goods sold,
or a bill of exchange or other negotiable instruments received as conditional payment has
been dishonored. The seller remains unpaid until the full amount due is settled.

According to the Sale of Goods Act, 1930, an unpaid seller has certain rights, such as:

1. Right of lien: The right to retain possession of the goods until payment is made.

2. Right of stoppage in transit: If the buyer becomes insolvent, the seller can stop the goods
while they are in transit.

3. Right of resale: The unpaid s5eller can resell the goods under certain conditions.

Q)Explain the rules regarding minor’s agreement

Ans) a minor's agreement refers to any contract or agreement made by a person who has
not yet reached the age of majority, which is 18 years in India (or 21 in some cases, if a
guardian is appointed by the court). According to the Indian Contract Act, 1872, the
following are the key rules regarding a minor’s agreement:
 1. Void ab initio: A minor’s agreement is considered void from the beginning, meaning
it has no legal standing, and neither party can enforce it in a court of law.
2.No liability for breach: Since the contract is void, the minor cannot be sued for
breach of contract, even if they fail to fulfill their obligations.
3. No estoppel against a minor: Even if a minor falsely represents themselves as an
adult, they are not legally bound by the contract, and no action can be taken against
them for fraud or misrepresentation.

Q)Explain the difference between wagering and contract of inusrance.

Ans) 1. Wagering Agreement:

A wagering agreement is a bet where two parties agree that money or something valuable
will be paid based on the occurrence or non-occurrence of an uncertain future event.

Nature: It is based purely on chance or speculation.

Enforceability: Under most legal systems, wagering agreements are not enforceable in a
court of law as they are considered void.

Interest: The parties involved do not have any real interest in the subject matter except for
the stake they place on the outcome.

2. Contract of Insurance:

A contract of insurance is an agreement where the insurer agrees to compensate the

insured for a specific loss, damage, or liability in exchange for a premium.

Nature: It involves risk mitigation and is based on a legitimate interest in the subject matter
(e.g., life, health, property).

Enforceability: Contracts of insurance are legally enforceable, and they are regulated by
insurance laws.

Interest: The insured has an insurable interest in the subject matter, meaning they would
suffer a loss if the event occurred.

Q)Explain the difference between undue influence and coercion.

Ans) Coercion:Coercion refers to the act of forcing someone to enter into a contract
through the use of threats or actual physical harm. It is defined under Section 15 of the
Indian Contract Act, 1872.

Nature: It involves physical or psychological pressure, often with threats of illegal acts (e.g.,
threats to cause bodily harm or threats of unlawful detention of property).
Effect: A contract entered into under coercion is voidable at the option of the person who
was coerced.

Examples: Threatening to kill someone or harm their family unless they sign a contract.

Undue Influence:

Undue influence occurs when one party, who holds a position of power or authority over
another, takes unfair advantage of that position to influence the other party to enter into a
contract. It is defined under Section 16 of the Indian Contract Act, 1872.

Nature: It usually involves moral, emotional, or psychological pressure, not necessarily

involving illegal acts, but arising from a dominant relationship.

Effect: A contract under undue influence is also voidable at the option of the party unduly
influenced.

Examples: A guardian influencing a dependent person to enter into a contract that benefits
the guardian.

Q)What to do you mean by discharge of contract by lapse of time?

Ans) This happens when a party fails to perform its obligations under the contract within a
specified period of time, known as the "limitation period. A contract is said to be
discharged by the lapse of time when the time period specified for the performance of the
contract, or the statutory limitation period for filing a lawsuit, has expired.