Legal Aspects of Business

Assignment

Max. Marks: 20

1. (a) “If a contract is breached, the law will endeavour, so far as

money can do it, place the injured party in the same position as if the
contract has been performed.” Discuss the statement indicating the
rules which guide the court in the assessment of damages. (5)

(b) Explain the terms “penalty” and “liquidated damages.” If the

parties to a contract have agreed on the amount of damages payable
in the event of its breach, can the court enhance or reduce that
amount? (5)

2. (a) State the rights of a surety against: (i) the creditor (ii) the
principal debtor and (iii) co-sureties. Illustrate your answer with
example. (5)

(b) “Nemo Det Quod Non Habet” (No one can give what he has not
got). Comment giving exceptions to this rule. Illustrate your answer
with examples. (5)