Description
It will be a small project that you imagine yourself and see its requirements, such as dealing with partners, suppliers, and other service providers for business. Here you must conclude a contract in order to complete your project. You must choose a real or virtual (imaginary) contract from among you related to the project that you choose and talk about from In terms of sales and agreements that take place between the parties…
The first point: We determine the basic elements (we analyze the contract, identify the basic elements, and link them to it, and it contains the parties involved, considerations, terms, and provisions)
The second point: Assessing enforceability (we settle a discussion regarding the contract whether it is enforceable or not based on commitments to legal requirements and principles of contract law)
The third point: The contract violation scenario (we imagine two possible scenarios in which there is a violation of the terms of the contract based on the terms and conditions specified in the contract that we settled or assumed)
The fourth and final point: Summary and conclusion (we summarize the main results of the analysis we have concluded, focusing on the importance of understanding contracts and their importance in commercial transactions)
The doctor Dr, requested that the method of presenting the project be neat and organized, with a focus on the basics and aspects of the contract and its effects on virtual small businesses.
note:
The project location is Oman
Currency: Omani Riyal
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Business law tutorial 4 answers
Q1: Identify whether it is an offer/invitation to treat in the following statement
a. A supermarket advertises that it will give a free Chicken to anyone who spends at least
OMR 40 in any one visit.
b. A manufacturer of electric shavers advertises, ‘Shaves as close as your blade or your money
back.’
a. This is an offer. The supermarket is advertising a specific promotion where they will give a free
chicken to anyone who spends at least OMR 40 in any one visit.
b. This is an offer. The manufacturer is advertising a guarantee that their electric shavers will
provide a close shave, and if not, they will refund the customer’s money.
Q2: Why a Written Contract is Better Than a Verbal Agreement?
a written contract is better than a verbal agreement because it provides more clarity, certainty, and
protection to the parties involved. A written contract can also help prevent or resolve disputes, and
comply with legal requirements. Therefore, it is advisable to use a written contract whenever
possible, especially for important or complex deals .
Q3: Scenario based question
Ms. Arwa notices a book with a price tag of 15 OMR displayed on a shelf in a bookshop. Ms. Arwa
offers 12 OMR on the counter and requests the book. The book seller declines, stating that the book
has already been sold and he does not have another copy in stock. Is the book seller contractually
obligated to sell the book to Ms. Arwa?
No, the book seller is not contractually obligated to sell the book to Ms. Arwa. In this scenario, Ms.
Arwa made an offer of 12 OMR, which the book seller declined. Until both parties reach an
agreement on the price and terms of the sale, there is no legally binding contract. Additionally, the
book seller mentioned that the book has already been sold and is not available in stock, further
indicating that there is no obligation to sell the book to Ms. Arwa.
Q4: Identify whether the followings are Unilateral or Bilateral contract. Give reason to support
your answer.
a. Hasan walks into a local Toyota showroom. He enters into negotiation to buy a new car. A
contract is presented to Hasan which states that the car will cost 7,000 OMR and will be delivered
before the end of the month. Full Payment is due within ten working days of singing the contract.
Hasan signs the contract.
b. After buying the car, Hasan leaves it parked outside his house. One night, it is stolen. Hasan puts
an advertisement in local newspaper stating that anyone who locates the car, or provides the police
with information leading to recovery of the car, will receive from him a reward of 150 OMR.
a. The contract between Hasan and the Toyota showroom is a bilateral contract. This is because
both parties, Hasan and the showroom, have made promises and obligations to each other. Hasan
promises to pay 7,000 OMR and the showroom promises to deliver the car before the end of the
month. Both parties have agreed to these terms and have signed the contract, indicating their
mutual consent.
b. The offer made by Hasan in the advertisement is a unilateral contract. This is because Hasan is
making a promise to provide a reward of 150 OMR to anyone who meets the specified conditions
(locating the car or providing information leading to its recovery). The person who performs the
requested action (locating the car or providing information) can accept the offer by fulfilling the
conditions, and only then will Hasan be obligated to provide the reward”
Business law tutorial 5 answers
Q1: What are the conditions to terminate an offer?
.The conditions to terminate an offer include:
-Revocation: The offeror can revoke the offer at any time before it is accepted.
-Rejection: The offeree can reject the offer, either explicitly or implicitly.
-Counteroffer: If the offeree proposes a counteroffer, it terminates the original offer.
-Lapse of time: If the offer specifies a time limit for acceptance and that time passes without
acceptance, the offer is terminated.
-Death or incapacity: If either the offeror or the offeree dies or becomes incapacitated before
acceptance, the offer is terminated.
-Destruction of subject matter: If the subject matter of the offer is destroyed or becomes
unavailable, the offer is terminated.
Q2: Discuss the concept of consideration? What are the different types of consideration? Give
Examples?
.Consideration is something of value that is exchanged between parties to a contract. It is a
necessary element for a contract to be legally binding. There are two types of consideration:
-Executory consideration: This is a promise to do something in the future. For example, if A
promises to paint B’s house next week, A’s promise is the consideration.
-Executed consideration: This is when the consideration has already been performed. For example,
if A has already painted B’s house, A’s act of painting is the consideration.
Examples:
-A promises to pay B OMR 100 in exchange for B’s laptop. The promise to pay is the consideration.
-A promises to mow B’s lawn every week for a month in exchange for B giving A OMR 50. The
promise to mow the lawn is the consideration.
Q3 Can a person be an agent who does not have capacity to contract? Give reason in support of
your answer?
Yes, a person can be an agent even if they do not have the capacity to contract. This can occur in
situations where the person is acting on behalf of someone else who has the legal capacity to
contract. For example, a parent may appoint their minor child as an agent to perform certain tasks
or make decisions on their behalf. While the child may not have the capacity to enter into contracts
themselves, they can still act as an agent under the authority and guidance of the parent. In such
cases, the legal capacity to contract lies with the principal, not the agent.
Q4: Outline the types of contract that are illegal? Give examples?
.Types of contracts that are illegal include:
-Contracts that involve illegal activities, such as drug trafficking or gambling.
-Contracts that are against public policy, such as contracts that encourage discrimination or harm
to others.
-Contracts that are entered into by parties who lack legal capacity, such as contracts with minors
or mentally incapacitated individuals.
Examples:
-A contract for the sale of illegal drugs.
-A contract that requires someone to commit a crime.
-A contract that promotes discrimination based on race or gender.
Q5: Identify two situations in which agreements lack consideration?
Two situations in which agreements lack consideration are:
-Past consideration: If a promise is made in exchange for something that has already been done, it
lacks consideration. For example, if A promises to pay B OMR 100 for helping them move last
week, the promise lacks consideration because the help was already provided.
-Illusory promises: If a promise is too vague or uncertain, it lacks consideration. For example, if A
promises to give B “something of value” without specifying what that something is, the promise
lacks consideration.
Q6: Distinguish between condition and Warranty?
.Condition and warranty are two types of terms in a contract:
-Condition: A condition is a fundamental term of a contract that goes to the root of the agreement.
If a condition is breached, the innocent party can terminate the contract and seek damages. For
example, if A agrees to sell B a car, and it is a condition that the
Q7: Are the following promises legally binding or merely gratuitous?
(a) Mr. Ali returned Mr. Rayyan lost tortoise. Rayyan promised him OMR 5.
(b) Aida agreed to sell her sports car to Aaisha for OMR. 5000.
(c) Sara promised her employee Balqees that she would give him OMR. 50 bonus if she arrived
at work on time for a week.
(a) This promise is legally binding. Mr. Rayyan promised to give Mr. Ali OMR 5 in return for
returning the lost tortoise. Both parties have exchanged something of value (the tortoise and the
money), indicating an intention to create legal relations.
(b) This promise is legally binding. Aida agreed to sell her sports car to Aaisha for OMR 5000. Both
parties have agreed on a specific price for the car, indicating an intention to create legal relations.
(c) This promise is legally binding. Sara promised her employee Balkees a bonus of OMR 50 if she
arrived at work on time for a week. This promise is made in the context of an employment
relationship, indicating an intention to create legal relations”
Business law Tutorial 6 answers
1Q: What is the importance of Agency in a business contract?
The importance of agency in a business contract is that it allows one party (the principal) to
authorize another party (the agent) to act on their behalf in business transactions. This delegation
of authority allows the principal to expand their reach and conduct business more efficiently, as the
agent can perform tasks and make decisions on their behalf.
Q2: Discuss Agency relationship?
An agency relationship is a legal and fiduciary relationship between two parties, where one party
(the principal) grants authority to another party (the agent) to act on their behalf. The agent is
authorized to make decisions and perform tasks on behalf of the principal, and owes certain duties
of loyalty, care, and obedience to the principal
Q3: Under what circumstances is a principal liable to a third party on a contract entered into by an
agent?
The Agent has the ability to affect the legal position of the principal and contractually bind him to
third party .
Q4: Once the relationship between a principal and agent ends, does the agent have the right to bind
the principal?
Once the relationship between a principal and agent ends, the agent generally does not have the
right to bind the principal anymore. However, there may be exceptions if the agent had apparent
authority or if there are ongoing obligations or contracts that continue after the termination of the
agency relationship.
Q5: Asmaa puts goods into Zainab’s auction. Khalid asks Noura to go to the auction and bid for the
set (item). Noura is the highest bidder and buys the set (item) for Khalid. Identify the two principals
and two agents?
In this scenario:
Asmaa and Khalid are principal
Zainab’s and Noura are agent
Asmaa is the principal who puts goods into Zainab’s(agent) auction.
Khalid is the principal who asks Noura to go to the auction and bid for the set (item).
Noura is the agent who attends the auction and buys the set (item) for Khalid.
Q6: Insurance agents are genuine agents. Whose agents, are they? Are they the agents of the client,
making a contract with the insurance company on the client’s behalf? Or are they the agents of the
insurance company, making a contract with the client on the insurance company’s behalf?
Insurance agents are typically agents of the insurance company.
They act on behalf of the insurance company to sell insurance policies and handle related tasks.
While they may work closely with clients and assist them in obtaining insurance coverage, their
ultimate loyalty is to the insurance company”
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