MBAL-105: Legal Aspects in Business – Unit 1

MBAL-105: Legal Aspects in Business – Unit 1

Objectives: explain the purpose of law; describe the sources of business law; explain the meaning of contract; classify the contracts; distinguis between void, voidable and illegal contacts; and describe the essentials of a valid contract.

Materials:
The relevant material is available here.

Questions:

1. What do you mean by legal obligation?
2. When is a contract voidable?
3. What is a contract? Explain the essentials of a valid contract.
4. Distinguish between: (i) Void and Voidable contracts; (ii) Void and Illegal contracts
5. Answer the following question giving suitable reason:
   A invites B to stay with him during winter vacation. B accepts the invitation and informs A accordingly. When B reaches A’s house, he finds it locked and he has to stay in a hotel. Can B claim damages from A?
   (Hint: B cannot clain any damages from A. It is a social agreement and there is no intention to create legal obligation)