NORTH SOUTH UNIVERSITY

Centre of Excellence in Higher Education

The first private University in Bangladesh
School of Humanities and Social Sciences
Department of Law
Course Name: Legal Environment of Business
Course Code: Law 200, Section 18
Online Mid-Term Examination (Summer- 2020).
MD. Zahid Hossan
ID: 1911877630

a) Define the term ‘Rule of Law’ in accordance of the Dicey’s theory.

Ans:
According to A V Dicey, there are three principles of the term “rule of law” –
Rule of law – the law of the land must be superior to all.
Equality before the law – everyone should be treated equally before the law. There
should be no difference between a prime minister of a state or an ordinary man.
Predominance of legal spirit – everyone should be accorded equal protection. Courts
must have the power to protect the law and take into account any mistake committed
in society. Personal freedom must be secured for all.

b) State the consequence of a contract where the performance is impossible.

Ans: A contract usually requires one or more parties to do something, which is called
performance. For example, if the company may hire and sign a contract for a driver
to drive a company bus. Once the driver fulfills his obligations agreed in the contract,
it is called a performance. If for some reason it is impossible for him to perform his
duties, it is called impossibility to perform. The company has the right to terminate
the contract in the event that implementation is impossible.

c) Can a contract be made without consideration?

Ans: The consideration is the price at which the promise of the other party is
purchased. They are the second essentials of a valid contract. Mind means something
in return. This might be beneficial to the other party. It is the price paid by one of the
parties for the promise of the other. An agreement is only enforceable when both
parties get something and give something. Therefore, a contract cannot be concluded
without remuneration.

d) What are the rules relating to the competency of parties to make a contract of
agency

Ans: As between a principal and an agent, termination of agency is effective only

when it becomes known to the agent, and as far as third parties are concerned,
termination of agency takes effect when they are notified of it.
 F) “Sale includes both a sale and an agreement to sell”- Discuss
The term "sales contract" is a general term and includes both "sale" and "sale agreement".
When, under the contract of sale, ownership of the goods is transferred directly from the
seller to the buyer at the time of the conclusion of the contract, the contract is called “sale”.
Where ownership of the goods is transferred under a sale contract at a later date or is subject
to some conditions after that to be fulfilled, the contract is called a "sale agreement".2 X 5=
10
B) ‘Rakib’appoints ‘Romana’ as an agent. ‘Romana’ is performing her duties
sincerely. But after some days ‘Rakib’ is died by a road accident and his only
living daughter ‘ Shaira’ doesn’t want to continue the contract of agency. What
will be the consequences of contract of agency between ‘Rakib’ and ‘Romana’?
– Answer with explanation.
Ans: First of all to answer this question, we need to know what is the agent and the
principal. An agent is a person legally authorized to act on behalf of another party.

A director is the party that gives authority to another party to act on his or her
behalf. In this ques, rakib is the main and romana agent. A sergeant also died in an
accident. So the contract ends by law if his daughter does not want to continue. If
the death of the principal or agent occurs, the contract will be terminated by law.

A) Problem A-

Ans: To answer this question first and foremost we need to know the definition of a
contract. Therefore, a contract is a voluntary, deliberate and legally binding agreement
between two or more competent parties. Contract law is a branch of the law of obligations.
It is a promise or group of promises that are legally enforceable and, if violated, allow the
aggrieved party to access legal remedies.

In this problem we can see that a bought a house from b. After further inspection. Find
out that seller B is intentionally hiding the poor physical condition of the house. So we can
say that the contract does not fulfill the principles of the contract. Because a contract is a
legal document that binds at least two parties to each other. The contract requires that one
or both parties fulfill the obligations detailed in the contract before its completion. In some
cases, termination of a contract can occur rendering the contract legally non-binding. Only
parties participating in the agreement may terminate the contract

Therefore, A can cancel the contract. Because, a contract cancellation is when the
contract is terminated due to an individual misrepresenting, acting illegally, or making a
mistake. Since B misrepresented the house so A could cancel the contract.