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Assignment sample solution of BL101 - Contract Law

Q. 1. Define the essential elements of a valid contract.

Q.2. What is the principle of consideration in contract law?

Q.3. Explain the concept of breach of contract and its remedies.

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Business law Assignment Sample

Q1:

Answer :

Q.1 Ans.  A valid contract requires offer, acceptance, consideration, intention to create legal relations, and legal capacity. The offer is a clear proposal made by one party, accepted unequivocally by the other. Consideration refers to something of value exchanged between parties. Legal intention ensures that both parties intend to create enforceable obligations. Lastly, parties must have the capacity, meaning they are of legal age and sound mind. These elements collectively establish enforceable agreements under contract law.

Q.2 Ans. Consideration is a fundamental principle in contract law that refers to the value exchanged between contracting parties. It must be something of legal value, such as money, goods, or services, provided by each party. For example, if A agrees to sell a car to B for $10,000, the car and the money are considerations. Consideration ensures reciprocity and distinguishes enforceable contracts from mere promises.

 

Q.3 Ans. A breach of contract occurs when one party fails to fulfill their contractual obligations. Remedies include damages, specific performance, and rescission. Damages compensate the non-breaching party, while specific performance requires the breaching party to fulfill their obligations. Rescission allows the contract to be terminated. For instance, if a supplier fails to deliver goods, the buyer may claim compensation for financial losses.