BUSINESS LAW AND TAXTAION

1. CAPACITIES OF PARTIES:

Legal Capacity: All parties entering into a contract must have the legal capacity to do so. This means they
must be of sound mind and not minors (in most jurisdictions, individuals under 18 lack legal capacity).

Competence: Parties should be competent and not under the influence of substances that impair their
judgment.

Authority: If representing a company, individuals must have the authority to enter into contracts on
behalf of the organization.

2. ESSENTIALS OF A VALID OFFER:

Intention to Contract: The offeror must intend to create a legal relationship.

Definiteness and Certainty: The terms of the offer must be clear, specific, and certain.

Communication: The offer must be communicated to the offeree.

Seriousness: The offeror must have a serious intention to be bound by the offer.

3. ESSENTIALS OF A VALID CONTRACT:

Offer and Acceptance: There must be a valid offer by one party and a valid acceptance by the other.

Intention to Create Legal Relations: Both parties must intend for the contract to be legally binding.

Lawful Consideration: Something of value must be exchanged between the parties.

Legal Capacity: Parties must have the legal capacity to enter into a contract.

Legality of Purpose: The purpose of the contract must be legal.

4. QUASI CONTRACTS:

Explanation: Quasi contracts are legal constructs imposed by the courts to prevent unjust enrichment.
They arise when one party receives a benefit that would be unfair to keep without compensating the
other party.

Example: A contractor mistakenly builds a garage on your land, thinking it's part of the neighbor's
property. The court may impose a quasi-contract, requiring you to compensate the contractor for the
value of the garage.
 5. VOID AGREEMENT:

List of Examples: Agreements against public policy, agreements with unlawful consideration, agreements
to do impossible acts, etc.

Examples: Agreements promoting illegal activities, agreements to commit a crime, agreements to

defraud someone, etc.

6. NO CONSIDERATION MEANS NO CONTRACT:

Explanation: Consideration is an essential element of a contract, representing something of value

exchanged between parties. If there is no consideration, the contract is generally not enforceable.

Example: A promises to give B a gift without B providing anything in return. Since there is no
consideration from B, it may not be a legally binding contract.

7. DIFFERENCE BETWEEN COERCION AND UNDUE INFLUENCE:

Coercion: Involves the use of force or threats to make someone enter into a contract against their will.

Undue Influence: Occurs when one party takes advantage of a position of power to exploit the other
party's weakness.

8. WHEN SILENCE IS EQUAL TO FRAUD:

Explanation: Silence is generally not considered fraud unless there is a duty to disclose. If there is a duty
to speak and one remains silent to deceive the other party, it may be considered fraudulent.

9. STAGES OF CONTRACT:

Formation: The initial stage involving offer, acceptance, and the creation of a valid contract.

Performance: Both parties fulfill their contractual obligations.

Discharge: The contract is concluded or terminated, either by agreement, performance, frustration,

breach, or other means.

10. HOW CONTRACT MAY GET DISCHARGED BY AGREEMENT:

Mutual Agreement: Parties may agree to end the contract mutually.

Novation: Substituting an old obligation with a new one.

Rescission: Parties agree to undo the contract, returning to the status quo.

11. TYPES OF CONTRACT - AS PER ENFORCEABILITY:

Valid Contract: Meets all legal requirements.

Void Contract: Lacks legal effect from the start.

Voidable Contract: One party has the option to void the contract.

Unenforceable Contract: Valid but cannot be enforced due to legal defenses.

12. RIGHTS AND DUTIES OF FINDER OF GOODS (QUASI):

Duty to Take Reasonable Care: The finder must take care of the goods as a reasonable person would.

Right to Possession: The finder has the right to possess the goods against everyone except the true
owner.

Duty to Try and Find the Owner: The finder should make reasonable efforts to locate the owner and
return the goods. If the owner is not found, the finder may acquire ownership under certain conditions.