Course Content
01 – Introduction to Business Law
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Q 1.1. “Law and business are closely related disciplines.” Discuss.
Q 1.2. What is ‘Law’? What is the need for managers to know about law?
Q 1.3. Define the term Business law. What are the main sources of business law in India?
MCQs
True or False
Fill in the Blanks
02 – Indian Contract Act, 1872: Nature and Kind of Contracts
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Q 2.1. “All agreements are not contracts but all contracts are agreements”. Examine this statement.
Q 2.2. Explain the essentials of a valid contract.
Q 2.3. “An agreement enforceable by law is a contract”. Discuss the statement.
Q 2.4. Discuss the different types of contract.
Q 2.5. Distinguish between void and voidable contract.
Q 2.6. What are the similarities between void and illegal agreements?
Practical Problem: 1
Practical Problem: 2
True or False
Match the Pairs
Fill in the Blanks
03 – Indian Contract Act, 1872: Offer and Acceptance
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Q 3.1. What is a general offer? Illustrate.
Q 3.2. Distinguish between ‘general’ and ‘specific’ offer.
Q 3.3. “A counter-offer can constitute an acceptance of an offer”.
Q 3.4. Discuss the role of ‘offer’ and ‘acceptance’ in the formation of a valid contract.
Q 3.5. Explain rules regarding communication of offer and acceptance.
Q 3.6. A mere mental acceptance is no acceptance. Comment on this statement.
Q 3.7. Explain the role of communication, acceptance and revocation of proposals in the formation of valid contract.
Practical Problem: 1
Practical Problem: 2
04 – Indian Contract Act, 1872: Capacity of Parties and Consideration
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Q 4.1. A minor can be a promisee. Comment on this statement.
Q 4.2. Briefly explain ‘competency to contract’. Who is competent to contract as per the Indian Contract Act?
Q 4.3. Explain the rule ‘no consideration, no contract’. Are there any exceptions to this rule?
Q 4.4. Write a short note on “Minor’s contract for necessities”.
Q 4.5. What are the essential elements of a valid consideration?
Q 4.6. Insolvent person can enter into a contract. Comment.
Practical Problem: 1
Practical Problem: 2
Practical Problem: 3
05 – Indian Contract Act, 1872: Other Essential Elements of a Contract
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Q 5.1. When is consent said to be given under coercion? How coercion differs from undue influence?
Q 5.2. “A contract caused by unilateral mistake may be valid, voidable or void.” Explain.
Q 5.3. ‘Mere silence would amount to fraud under certain circumstances. ’Discuss this statement.
Q 5.4. Define mistake. Differentiate between bilateral and unilateral mistake by giving suitable examples.
Q 5.5. What do you understand by the contingent contract? Discuss the rules regarding enforcement of contingent contracts.
Q 5.6. Explain briefly: (a) Agreement in restraint of marriage
Q 5.6. Explain briefly: (b) Invitation to treat does not amount to an offer
Q 5.6. Explain briefly: (c) Consideration must be sufficient but need not be adequate.
Q 5.7. Explain the concept of ‘misrepresentation’ in the matters of contract.
Q 5.8. “Consideration is required for every kind of contract”. Comment.
Q 5.9. Insufficiency of consideration is immaterial but an agreement without consideration is void. Comment.
Q 5.10. “All agreements against public policy are void”. Comment.
06 – Indian Contract Act, 1872: Performance and Discharge of Contract
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Q 6.1. Write a short note on the performance of the contract.
Q 6.2. What are the requisites of the valid tender of performance?
Q 6.3. Is there any difference between the tender of services and tender of money?
Q 6.4. Who can perform the promise under a contract?
Q 6.5. Who can demand the performance of promise?
Q 6.6. Explain rules with regard to demand of promise by the joint promisors.
Q 6.7. State the provisions relating to the performance of reciprocal promises.
Q 6.8. Discuss the various methods of termination of contract.
Q 6.9. How is the contract discharged on the performance of a promise?
Q 6.10. Explain the meaning of the term ‘remission’. Write the short note on the novation of contract.
Q 6.11. Write a short note on the anticipatory breach of contract.
Practical Problem: 1
Practical Problem: 2
Practical Problem: 3
Practical Problem: 4
Practical Problem: 5
07 – Indian Contract Act, 1872: Remedies for Breach of Contract and Quasi-Contract
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Q 7.1. What are the remedies available to an aggrieved party on the breach of contract?
Q 7.2. What kind of damage may be awarded in case of the breach of contract under the law of contract?
Q 7.3. Explain special damages with suitable example.
Q 7.4. What do you understand by vindictive damage? Explain.
Q 7.5. When can a specific performance not be granted by the court?
Q 7.6. When can the party to contract claim on quantum meruit? Explain.
Q 7.7. Write a note on quasi-contracts.
Practical Problem: 1
Practical Problem: 2
Practical Problem: 3
08 – Indian Contract Act, 1872: Indemnity and Guarantee
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Q 8.1. Explain the contract of indemnity.
Q 8.2. What are the essential elements of the contract of indemnity?
Q 8.3. Discuss the rights of the indemnity holder.
Q 8.4. Define the contract of guarantee.
Q 8.5. There is no consideration in case of the contract of guarantee. Comment.
Q 8.6. The contract of guarantee may be oral or in writing. Comment.
Q 8.7. What are the various kinds of guarantee?
Q 8.8. What is a continuing guarantee? How it can be revokes?
Q 8.9. State the nature and extent of the surety’s liability.
Q 8.10. Liability of the surety is primary and independent. Comment.
Q 8.11. What are the rights of surety against the other co-surety?
Q 8.12. What are the rights of surety against the creditor?
Q 8.13. When does the creditor’s act discharge surety?
Q 8.14. Explain the difference between the contract of indemnity and the contract of guarantee.
Practical Problem : 1
Practical Problem : 2
09 – Indian Contract Act, 1872: Agency
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Q 9.1. Every person has the right to employ an agent lawfully. Comment on this statement.
Q 9.2. Discuss the essentials of a valid contract of agency.
Q 9.3. Differentiate between an agent and an independent contract.
Q 9.4. Write a short note on different kinds of agent.
Q 9.5. Explain the various modes of creation of agency.
Q 9.6. What do you understand by agency by ratification? What are the essentials of a valid ratification?
Q 9.7. Write a short note on rights and duties of an agent.
Q 9.8. Distinguish between a sub- agent and a substituted agent.
Q 9.9. Discuss the various modes by which the authority of an agent may be terminated.
Q 9.10. Write a short note on an irrevocable agency.
Practical Problem : 1
Practical Problem : 2
10 – Sales of Goods Act, 1930
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Q 10.1. Define the goods. Explain it with suitable examples.
Q 10.2. State briefly the essential elements of a contract of sale under the Sales of Goods Act, 1930.
Q 10.3. Distinguish between a sale and an agreement to sell.
Q 10.4. What do you understand by the conditions and warranties of a contract of the sales of goods?
Q 10.5. What are the circumstances when a condition can be treated as a warranty?
Q 10.6. What are the implied warranties in a contract of sale under the sales of goods act, 1930?
Q 10.7. What do you understand by ‘caveat emptor’ under the sale of goods act, 1930? What are the exceptions to this rule?
Q 10.8. In the contract of sale, when does the property in goods passes on to the buyer?
Q 10.9. What are the rules relating to the delivery of the goods in a contract of sale of goods?
Q 10.10. Write a short note on an unpaid seller’s lien.
Q 10.11. What type of remedies are available to the buyer against the seller?
Practical Problem : 1
Practical Problem : 2
Practical Problem : 3
Practical Problem : 4
Practical Problem : 5
11 – The Negotiable Instruments Act, 1881
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Q 11.1. What are the presumptions applicable to all the negotiable instruments, as provided under the negotiable instruments Act, 1881?
Q 11.2. Define the bill of exchange and explain its salient features.
Q 11.3. State the difference between ‘promissory notes’ and ‘bill of exchange’.
Q 11.4. How can negotiable instrument be classified?
Q 11.5. What is demand instrument?
Q 11.6. What are the differences between an ambiguous instrument and inchoate instrument?
Q 11.7. Can a negotiable instrument be drawn without consideration?
Q 11.8. Write a short note on the endorsement and different kind of endorsement.
Q 11.9. What do you understand by negotiation?
Q 11.10. Write a short note on crossing of cheques.
Q 11.11. A paying banker is always protected. Comment.
Q 11.12. When is an alteration of an instrument as material alteration under act?
Q 11.13. Explain the meaning of ‘acceptance for honour under the negotiable instrument Act,1881.
Q 11.14. When the negotiable instrument is discharged?
Practical Problem : 1
Practical Problem : 2
Practical Problem : 3
Practical Problem : 4
12 – Companies Act, 2013: Types of Companies and their Characteristics
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Q 12.1. Define Company and explain its characteristics as regard to perpetual secession.
Q 12.2. What is a ‘Company limited by shares’ and ‘Limited by guarantee’?
Q 12.3. Write a short note on misstatement in prospectus.
Q 12.4. Write a short note on ‘Pre-incorporation contract’.
Q 12.5. Define Holding company.
Q 12.6. Define Public Company. How does it differ from Private Company?
Q 12.7. Define ‘Perpetual Succession’ and ‘Common Seal’.
Practical Problem : 1
Practical Problem : 2
Practical Problem : 3
Practical Problem : 4
Practical Problem : 5
13 – Companies Act, 2013: Memorandum, Articles of Association and Prospectus
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Q 13.1. Write a short note on the form of the memorandum of association.
Q 13.2. What are the requirements of the association clause?
Q 13.3. Any act which is ultra-vires to the directors is void – comment.
Q 13.4. What are the content of the article of association?
Q 13.5. Can a Company alter article of association? If so then how?
Q 13.6. What are the legal requirements as to the Liability Claus? Can liability of a member be increased?
Q 13.7. The power to alter article is wide yet it is subject to large number of limitations – Comment.
Q 13.8. State the procedure to be followed by a company for change in registered office from one place to another within same state.
Q 13.9. What are the legal requirements as to the liability clause? Can liability of a member be increased?
Q 13.10. Any act which isultra- vires to the directors is void – comment.
Q 13.11. State the procedure to be followed by a company to shift its registered office from one state to another state.
Q 13.12. When registrar of company shall refuse to register the prospectus?
14 – Companies Act, 2013: Share Capital And Transfer of Shares
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Q 14.1. Write down five rights available to a group of members.
Q 14.2. Issue of further share capital should be should first be made to existing shareholders. Comment.
Q 14.3. What is return of allotment? When a company is required to file return of allotment?
Q 14.4. What are the conditions required to be complied with by public company before allotment of shares?
Q 14.5. Explain the procedure for reduction of capital.
Q 14.6. On redemption of preference shares, a person ceases to be a member of a company. Comment.
Q 14.7. What are the different kinds of shares which a company can issue under Companies Act, 2013?
Q 14.8. Out of which sources can a company redeem preference shares?
Q 14.9. What is the difference between called-up capital and un-called capital.
Q 14.10. When can a company issue redeemable preference shares?
Q 14.11. Explain the various terms used in reference of capital under Companies Act, 2013. A Company can exercise lien any time. Comment.
Q 14.12. Define Underwriting. As per the Companies Act, what is maximum percentage of underwriting paid by a company?
15 – Companies Act, 2013: Meeting and Power of Board
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Q 15.1. Every general meeting, in order to be valid, must be duly conveyed, properly constituted and conducted comment.
Q 15.2. Explain the provisions regarding notice of a general meeting.
Q 15.3. What is the significance of annual general meeting?
Q 15.4. What is extraordinary general meeting? When it is called?
Q 15.5. What is the meaning of quorum? What are the provisions of quorum under Companies Act?
Q 15.6. When should the chairman order for poll?
Q 15.7. State the procedure for postal ballot.
Q 15.8. Adjourned meetings do not require fresh notice. Comment.
Q 15.9. Write short note on meeting of creditors.
Q 15.10. Write short note on minutes of general meeting.
Q 15.11. What is the quorum for a board meeting? How is it calculated?
Q 15.12. How is voting is carried out at a board meeting?
Q 15.13. Explain the powers available to the board of directors only with consent of shareholders.
16 – Companies Act, 2013: Management of Company
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Q 16.1. What are the qualifications of a director?
Q 16.2. When is a person disqualified for appointment as a director of the company?
Q 16.3. Who may be appointed as director of a company?
Q 16.4. Explain the law relating to number of directors.
Q 16.5. How can the small shareholder’s director be appointed?
Q 16.6. How can the directors be removed from the office before the expiry of their term?
Q 16.7. Under what circumstances is a director deemed to have vacated the office of directorship?
Q 16.8. Distinguish between managing director and managing director and manager.
Q 16.9. State the provisions relating to making loans to directors.
Q 16.10. What are the disqualifications for managing directors?
17 – Consumer Protection Act, 2015
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Q 17.1. Discuss the scope and applicability of Consumer Protection Act.
Q 17.2. What are the basic rights available to consumers?
Q 17.3. Write a short note on deficiency in services.
Q 17.4. Explain the term ‘consumer’ under Consumer Protection Act with suitable examples.
Q 17.5. Who can file a complaint? Can a parent or guardian of minor file complaint on his behalf?
Q 17.6. Write short note on district forum and state commission.
Q 17.7. Explain reliefs available under the consumer protection act, 2019.
Q 17.8. What are the powers available to the Dispute Redressal Agencies under the Consumer Protection Act, 2019?
18 – Limited Liability Partnership Act, 2008
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Q 18.1. What do you mean by Limited Liability Partnership? State the salient features of Limited Liability Partnerships.
Q 18.2. A limited liability partnership is a body corporate. Comment.
Q 18.3. Provisions of Indian Partnership Act, 1932, are applicable to LLPs and body corporate may be partner of LLP. Comment.
Q 18.4. There is no shareholders in a limited liability partnership; instead, there are partners. Comment
Q 18.5. Can a LLP has less than two partners?
Q 18.6. What are the major duties of a designated partner?
Q 18.7. Write short note on whistle blowing.
Q 18.8. Explain whether audit of all LLPs is mandatory.
Q 18.9. Is the partner, on cessation of the partnership, entitled to receive anything from the LLP?
Q 18.10. How is the profit of a limited liability partnership treated for the purpose of Tax Acts?
Q 18.11. Discuss the advantages and disadvantages of LLP. Practical Problems
QB – Business Laws
Q 2.2. Explain the essentials of a valid contract.
 
Answer: –
 

Essentials of a Valid Contract

A valid contract is a legally binding agreement that fulfills the conditions specified under the Indian Contract Act, 1872. For a contract to be enforceable, it must meet the following essential elements:

  1. Offer and Acceptance – There must be a lawful offer by one party and its unconditional acceptance by another.
  2. Intention to Create Legal Relations – The agreement must be intended to create legal obligations, not just social or moral promises.
  3. Lawful Consideration – Something of value (money, goods, or services) must be exchanged between the parties.
  4. Capacity of Parties – The parties must be competent, meaning they should be of legal age, sound mind, and not disqualified by law.
  5. Free Consent – The agreement must be made without coercion, undue influence, fraud, misrepresentation, or mistake.
  6. Lawful Object – The purpose of the contract must be legal and not against public policy.

If any of these elements are missing, the contract may become void or unenforceable.

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