Name: Jay Oswal

Roll no: 142

Subject- Legal Aspects Of Business (111)
Concurrent Internal Evaluation -2
Written Home Assignment

1. What are the essential elements of Valid contract.?

Ans)
1.Offer and Acceptance.
In order to create a valid contract, there must be a 'lawful offer' by one party and 'lawful
acceptance' of the same by the other party.Section 2 (a) of the Contract Act defines Offer as
–‘when one person signifies to another his willingness to do or to abstain from doing anything,
with a view to obtaining the assent of that other to such act or
abstinence, he is said to make an offer'. Section 2 (b) of the Contract Act states that, ‘when the
person to whom the offer is made signifies his assent there to, the offer is said to be accepted.

2. Intention to Create Legal Relationship

The intention of the parties to a contract must be to create a legal relationship between them.
Agreements of social nature, as they do not contemplate legal relationship, are not contracts.
For instance, if a father fails to give his daughter the promised pocket money, the daughter
cannot sue the father, because it was purely a domestic arrangement. Thus, it is clear that all
agreements, which do not result in legal relations, are not contracts

3. Capacity to Contract
If an agreement is entered between parties who are competent enough to contract, then the
agreement becomes a contract.

4.Genuine and Free Consent

Free consent is another essential element of a valid contract. An agreement must have been
made by free consent of the parties. The contract would be void in case of mutual mistakes.
When consent is obtained by unfair means, the contract would be voidable.

5. Lawful Object
Objectives of an agreement should be lawful. It must not be illegal or immoral or opposed to
public policy. It is lawful unless it is forbidden by law. When the object of a contract is not lawful,
the contract is void.

6. Lawful Consideration
Something in return is Consideration. In every contract, agreement must be supported by
consideration. It must be lawful and real.

7. Certainty and Possibility of Performance

The agreements, in which the meaning is uncertain or if the agreement is not capable of being
made certain, it is deemed void. T&C of the contract should always be certain and cannot be
vague. Any contract that are uncertain are considered void. The terms of the agreement must
also be capable of performance and should not enforce impossible act.

8. Legal Formalities
Legal formalities if any required for particular agreement such as registration, writing, they must
be followed. Writing is essential in order to effect a sale, lease, mortgage, gift of immovable
property etc. Registration is required in such cases and legal formalities in the relevant
legislation should be strictly followed.

9. Not Declared to be void or Illegal.

The agreement though satisfying all the conditions for a valid contract must not have been
expressly declared void by any law
in force in the country. Agreements mentioned in Section 24 to 30 of the Act have been
expressly declared to be void. For example agreements in restraint of trade, marriage, legal
proceedings etc.That is : If A is not willing to marry with B, law can not enforce him/her

2. What are the different modes of Discharge of a Contract ?

Ans)
MEANING OF DISCHARGE OF CONTRACT: Discharge of contract means termination of the
contractual relationship between the parties. When the rights and obligations arising out of a
contract are extinguish, the contracts is said to be discharged

Different Modes of Discharge

1] Discharge by Performance
When the parties to a contract fulfil the obligations arising under the contract within the time and
manner prescribed, then the contract is discharged by performance.

Example: Peter agrees to sell his cycle to John for an amount of Rs 10,000 to be paid by John
on the delivery of the cycle. As soon as it is delivered, John pays the promised amount.

2] Discharge by Mutual Agreement

If all parties to a contract mutually agree to replace the contract with a new one or annul or remit
or alter it, then it leads to a discharge of the original contract due to a mutual agreement.

3] Discharge by the Impossibility of Performance

If it is impossible for any of the parties to the contract to perform their obligations, then the
impossibility of performance leads to a discharge of the contract. If the impossibility exists from
the start, then it is impossibility ab-initio. However, the impossibility might also arise later due to:

● An unforeseen change in the law

● Destruction of the subject-matter essential to the performance
 ● The non-existence or non-occurrence of a particular state of things which was
considered a given for the performance of the contract
● A declaration of war

4] Discharge of a Contract by Lapse of Time

The Limitation Act, 1963 prescribes a specified period for performance of a contract. If the
promisor fails to perform and the promisee fails to take action within this specified period, then
the latter cannot seek remedy through law. It discharges the contract due to the lapse of time

5] Discharge of a Contract by Operation of Law

A contract can be discharged by operation of law which includes insolvency or death of the
promisor.

6] Discharge by Breach of Contract

If a party to a contract fails to perform his obligation according to the time and place specified,
then he is said to have committed a breach of contract.
Also, if a party repudiates a contract before the agreed time of performance of a contract, then
he is said to have committed an anticipatory breach of contract.

3). Explain Conditions and Warranties?

Ans)

Conditions
Stipulations that are essential for main purpose of contract. Non fulfillment of such will mean
loss of foundation of contract. These are termed as 'Conditions'.

A contract of sale cannot be fulfilled unless the condition to it, is fulfilled.

In case of breach of condition, the aggrieved party can reject the contract

Breach of condition can be treated as breach of warranty if the aggrieved party is happy with
compensation.

Warranty

Warranty is collateral to the main purpose of contract.

The main contract can be fulfilled even if the warranty is not fulfilled.

In case of breach of warranty, the aggrieved party can only claim for damages.

Breach of warranty can not be treated as breach of condition.

4). Explain the remedies for Breach of Contract?
Ans)
Types of Remedies for Breach of Contract
There are several common remedies for breach of contracts. The appropriate remedy depends
on the terms of the contract, the nature of the breach, and the specific circumstances of the
case.

1. Compensatory Damages
An award of compensatory damages is the most common of the legal remedies for breach of
contract.

The calculation of compensatory damages is based on the actual losses you have sustained as
a result of the breach of contract. They typically fall into two categories: expectation damages
and consequential damages.

2. Specific Performance
Specific performance is a type of remedy for breach of contract in which a court orders the
breaching party to perform their end of the bargain.

3. Injunction
Injunctions serve a similar purpose as specific performance. The difference is that with specific
performance, the court orders a party to do something. With an injunction, the court often orders
a party not to do something

4. Rescission
Rescission allows a nonbreaching party to cancel the contract as a remedy for a breach. Rather
than seeking monetary damages, the nonbreaching party can simply refuse to complete their
end of the bargain. Rescission puts the parties back in the position they would have been in had
they never entered into the contract.

5. Liquidated Damages
Liquidated damages are a specific amount the parties agree to in the contract as compensation
for a breach.

Contracts often use liquidated damages provisions where it might be difficult to calculate the
correct amount of compensatory damages.

6. Nominal Damages
A court may award nominal damages as a legal remedy for breach of contract when the plaintiff
cannot support their claim for compensatory damages. With nominal damages, the court
recognizes that a breach of contract occurred, but no harm can be calculated

5. Write Short Notes:

a) Digital Signature
Ans)
Digital signatures mean the authentication of any electronic record using an electronic method
or procedure in accordance with the provisions of the Information Technology Act, 2000. Also, a
handwritten signature scanned and digitally attached with a document does not qualify as a
Digital Signature
b) Copy Rights
Ans)
Copyright refers to the legal right of the owner of intellectual property. ... Copyright law gives
creators of original material the exclusive right to further use and duplicate that material for a
given amount of time, at which point the copyrighted item becomes public domain.
c) Intellectual Property Laws
Ans)
Intellectual property law deals with the rules for securing and enforcing legal rights to inventions,
designs, and artistic works. Just as the law protects ownership of personal property and real
estate, so too does it protect the exclusive control of intangible assets. The purpose of these
laws is to give an incentive for people to develop creative works that benefit society, by ensuring
they can profit from their works without fear of misappropriation by others