Legal Aspects Of Business Quiz

The correct answer is "Major." In contract law, a person is considered competent to enter into a contract if they are of legal age, which is typically referred to as being a major. This means that they have reached the age of majority, which is usually 18 years old. Being of legal age signifies that the person has the capacity and understanding to make informed decisions and be held responsible for their contractual obligations.

An agreement is formed when there is an offer made by one party and accepted by another party. This means that one party proposes certain terms or conditions, known as the offer, and the other party agrees to those terms, known as acceptance. The combination of an offer and acceptance is necessary for the formation of a valid agreement. The other options, such as offer + enforceability or offer + legal obligation, do not capture the essential element of acceptance, which is required for an agreement.

The classification of contracts based on their validity includes three categories: valid, voidable, and void. Invalid is not a part of contract classification as it does not represent a separate category. A contract is either valid, voidable, or void based on specific legal criteria. Invalid is not a recognized classification for contracts.

A broker is a mercantile agent engaged to buy and/or sell property. They act as intermediaries between buyers and sellers, facilitating transactions and negotiating deals on behalf of their clients. Brokers have specialized knowledge and expertise in their field, allowing them to provide valuable advice and assistance to their clients. They are typically compensated through commissions or fees based on the value of the transactions they facilitate.

Arzoo going into a restaurant and taking a cup of tea implies that she intends to pay for it. Although there may not have been a formal agreement or verbal contract, the act of taking the tea creates an expectation that she will pay for it. This expectation is based on the common understanding and custom in a restaurant setting where customers are expected to pay for the items they consume. Therefore, the correct answer is an implied contract that she will pay for the cup of tea.

X is the surety in this scenario because they have guaranteed the repayment of the loan from Y to Z. As the surety, X is responsible for ensuring that the loan is repaid if Y is unable to do so. Therefore, X has the obligation to repay the loan on behalf of Y and is the one who is ultimately liable for the debt.

A constructive bailee is someone who comes into possession of another person's property without their consent, such as a finder of lost property. As a constructive bailee, they have a duty to take reasonable care of the property under the circumstances. This means that they are responsible for ensuring the safety and security of the property while it is in their possession. The other options are incorrect because throwing away the goods after three days would not be considered reasonable care, having no liability for damaged property would go against the duty of care, and there is no mention of an express contract in the given information.

The buyer can reject the goods, even if they are not defective, if they find that the goods have been incorrectly described. This means that the buyer has the right to refuse to accept the goods and can choose not to proceed with the purchase if the description provided does not match the actual product. This gives the buyer the option to not be bound by the purchase agreement and seek alternative options.

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In this case, X acted as an agent for Y and purchased goods on Y's behalf. However, before delivering the goods to Y, X learns that Y has become insolvent. The right of stoppage in transit allows an agent to retain possession of the goods until the principal (Y) pays for them. Since Y is insolvent, X can exercise this right to protect their own interests and prevent further losses. This right ensures that X can recover the cost of the goods they purchased on behalf of Y.

When a particular course of conduct is followed again and again, it becomes a custom. Custom refers to a practice or behavior that is widely accepted and followed within a specific community or society. It is not enforced by any formal legal system but is considered as a traditional norm or way of doing things. Customary practices often hold significant cultural and social value and may influence the behavior and beliefs of individuals within the community.

The correct answer is "Stare decisis." Stare decisis is a Latin term that means "to stand by things decided." It refers to the principle in law where courts are bound to follow the precedents set by higher courts in similar cases. This doctrine ensures consistency, predictability, and stability in the legal system. It allows for the development of legal principles over time and provides guidance for judges when deciding cases.

An agent is a person employed to do any act for another or to represent another in dealing with third persons. An agent is authorized to act on behalf of the principal and has the power to create a legal relationship between the principal and third parties. The agent acts under the control and direction of the principal and is bound to act in the best interests of the principal.

The right of the unpaid seller to file a suit for price is not applicable in this scenario. This right allows the seller to take legal action against the buyer to recover the unpaid amount for the goods sold. However, since Poonam is an unpaid seller, it implies that the buyer has not yet purchased the goods from her, and therefore, the right to file a suit for price does not apply.

Indemnity refers to the act of making up for a loss or compensating the party who has suffered a loss. It is a legal concept that involves providing financial protection or reimbursement to the affected party. In the context of the given options, "Indemnity" is the most appropriate choice as it directly aligns with the definition provided. The other options, such as "Contract of Indemnity," "Contract of Guarantee," and "Continuing Guarantee," are related concepts but do not specifically capture the idea of compensating for a loss.

The bankruptcy of the agent will not cause the agency relationship to terminate because bankruptcy does not affect the agent's ability to act on behalf of the principal. The agent may still continue to carry out their duties and obligations as long as they are able to do so.

The correct answer is Sec.169. This section refers to the right to sell, which means the authority or permission granted to an individual or entity to sell a particular item or property. It is important to understand the different sections of a legal document or law in order to accurately determine the rights and responsibilities associated with specific actions or situations.

A suit for paying partially is not valid or the seller cannot sue for it because when a buyer pays only a part of the agreed price, it does not fulfill the contractual obligation of full payment. Therefore, the seller can only sue for the remaining unpaid amount or take legal action to enforce the full payment.

The right to demand replacement goods is not a remedy available to buyers. This means that if a buyer receives defective or unsatisfactory goods, they do not have the right to request a replacement. Instead, they may have other remedies such as the right to reject the goods, the right to damages (compensation for any losses incurred), or the right to specific performance (forcing the seller to fulfill their obligations). However, the option of demanding replacement goods is not one of the available remedies in this scenario.

A contract is not just an agreement, but a legally binding agreement between two or more parties. It is incorrect to say that a contract comprises only one party, as a contract requires the mutual consent and obligations of multiple parties.