Quiz 11: Introduction to Contracts

Business

Ms. GN was in date with Mr. RH, expecting him to be single. Later on Ms. GN came to know he was married. Mr. RH gave assurance that he will marry her, and asked her to quit her job. He said that he will fulfil all her needs, and will take care of her for life, but did nothing. The relationship came to an end after 23 years, and Ms. GN wanted to sue Mr. RH. Bilateral and unilateral contracts: In bilateral contracts, both the parties are involved in a promise. In unilateral contracts one party offers a promise that is accepted by the other party. In the present scenario, only Mr. RH made a promise, and Ms. GN accepted it. Therefore, it is a unilateral contract. Here, Ms. GN could sue RH as he had failed to marry her and ended the relationship himself.

Situation: B offers to sell his car for $200,000 to P. P has accepted the offer by writing a letter to B. This offer after the acceptance by P becomes promise. This promise is treated as an agreement between B and P. P refuses to pay the full amount on the due date. He can pay only $100,000. Listing the elements of contract as per the above case is explained below: A contract must be legally enforceable by law. All the seven key elements must be presented to make a valid contract. Here, in the case situation, following elements are taken into consideration: • Offer : In the case, B has made an offer to P. The contract between them involves buying a car. Therefore, one of the elements under the contract is met. • Acceptance : Here, P has accepted the offer by writing a letter to B. This offer after the acceptance by P becomes a promise. Here, acceptance element is also met under the contract. • Consideration : In this case, the contract is made for a mutual consideration. That is B will get $200,000 from P and P in return gets a car. On the due date, P has refused to pay the full amount. So, this element is not satisfied by the parties in the contract. • Legality : In the case, the contract is made for a lawful purpose. Here, selling a car is a legal contract. • Consent : There is a mutual consent by both the parties when the offer was made. • Capacity : In the case, both the parties are adults of sound mind. In the case, P has refused to pay the full amount $200,000. He can pay only $100,000. One of the key elements to make the contract enforceable by law has been refused by P. Consideration is the element lacking here. So, there is no contract between them.

Contract: Contract is termed as a legitimately enforceable agreement. Void contract is explained below : Void contract is termed as a contract that is not a legitimately enforceable contract or agreement. It is not enforceable by law, because the purpose of agreement is illegal by one party or both. The actor agrees to buy cocaine from L. In this contract, buying cocaine from L is an illegally activity and it is not a legally enforceable agreement. Hence, Option img is correct. Likewise, Void contract is an illegal contract that cannot be upheld by law. However, option A satisfies all the law's requirements. Hence, Option A is incorrect. Void contract is an illegal contract by neither of the parties. However, in option B, it provides contract that cannot be enforced in a court of law on account of some technical defects. Hence, Option B is also incorrect. Void contract is an illegal contract by neither of the parties due to an illegal activity. However, in option C, it is given that one party can be terminated by one of the parties. Hence, Option C is also incorrect. 1. n5fcdcuruudxdne57

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