Contract Law

What is a contract?

• A formal agreement between two companies for a business deal

• An official document outlining the terms of a rental agreement

• A written agreement between an employer and an employee for a job position

• The exchange of something of value between parties with the intention of legal force

Why do businesses need contracts?

• To confuse consumers

• To complicate business dealings

• To provide certainty in transactions and resolve disputes

• To avoid legal obligations

What are the four factors that need to be in place for a binding contract?

• Offer, acceptance, consideration, intention to be legally bound

• Verbal agreement, written contract, payment, disagreement

• Negotiation, disagreement, avoidance, confusion

• Delay, uncertainty, disagreement, lack of consideration

What is the concept of caveat emptor?

• Let the contract be void

• Let the seller beware

• Let the buyer beware

• Let the court decide

What is the constraint related to minors in entering into contracts?

• Minors can enter into any contract they want

• Minors lack full capacity to enter contracts

• Minors have unlimited legal capacity

• Minors can only enter verbal contracts

What is the constraint related to mental capacity in entering into contracts?

• Anyone can enter into a contract regardless of mental capacity

• Mental capacity is not relevant in contract law

• Individuals must have the mental capacity to enter a contract

• Only professionals can enter into contracts

What is the constraint related to corporate capacity in entering into contracts?

• Companies are bound by the scope of their business powers

• Companies have unlimited capacity to enter into contracts

• Companies cannot enter into contracts

• Companies can enter into any contract they want

What is the constraint related to authority in signing business contracts?

• Any employee can sign a contract on behalf of their company

• Only authorized individuals can sign contracts on behalf of their company

• Only legal representatives can sign contracts

• Authority is not a consideration in business contract law

What is the constraint related to insolvency in entering into contracts?

• Individuals or companies facing financial difficulties have limitations on the contracts they can enter into

• Individuals or companies facing financial difficulties have unrestricted capacity to enter into contracts

• Individuals or companies facing financial difficulties are unable to enter into any contracts

• Individuals or companies facing financial difficulties can only enter verbal contracts

What is the constraint related to legality in entering into contracts?

• Contracts can be illegal and still enforceable

• Contracts are always illegal

• Contracts must be legal and enforceable

• Legality is not a concern in contracts