AIOU SOLVED ASSIGNMENT CODE 460 MERCANTILE LAW
AIOU SOLVED ASSIGNMENT CODE 460
Q 1: Answer
Sometimes contract and agreement, both are used in the same sense but according to the law there is a great difference between them.
Agreement is defined in the Section 2(e) in the following words “Every promise or every set of promises forming the consideration for each other”
In this definition there are two important conditions are explained.
1) Promise (There must be a promise between parties)
2) Consideration (Both parties have consideration)
In other words we can say that a proposal which is offered by one party and it is accepted by the other party, it becomes an agreement. So we can say that agreement is=-
AGREEMENT = PROPOSLE+ACCEPTANCE.
Under contract act 1872 contract is defined as under:-
“A contract is an agreement enforceable by law”
There are again two conditions for Contract=-
1) An agreement (There must be agreement)
2) Enforceable by Law.
Any agreement which is enables a man to compel (Majboor karna) another to do something or not to do something, is called agreement. So we can say that agreement become contract when it is enforceable by law.
Agreement has no legal binding, while contract has legal binding.
Agreement is necessary for contract, while agreement is before the contract.
For agreement two things are must “proposal and Acceptance” While for contract “enforceable agreement is necessary”
Q 2: Answer
Simply a promise is not legally bound to perform. Because, to perform legally the promise must have consideration of each parties. When there is consideration about promise then it becomes agreement and if the agreement is enforceable then it becomes contract. Only contract is legally bound to perform by a person is must, then again this contract must be a valid contract. For a valid contract the following points must be fulfilled.
1) Proposal: For valid contract proposal is necessary. There are two parties in the proposal.
2) Acceptance: When the promise signifies the assent (Qabooliyat ka Izhar) then proposal is said to be accepted.
3) Agreement: After the acceptance of proposal it will be only promise. For the valid contract there must be an agreement enforceable at law.
4) Lawful Agreement: Lawful agreement is necessary for the valid contract, because unlawful agreement cannot be enforceable at law.
5) Legal Relationship: The agreement must create legal relationship between the parties of the contract. Legal agreement creates legal rights and duties.
6) Lawful object: The contract must be for lawful objects, if the contract is for unlawful purpose then this contract will be a void contract.
7) Competence of Parties: The contracting parties must be competent to contract e.g they must be at the age of majority, sound mind, and does not disqualified by any law.
8) Consideration: For valid contract there must have consideration of both parties.
9) Not declared void: It is also essential that agreement must have been not declared void by any law. Following agreements are expressly declared to be void.
A) Agreement to restraint legal proceeding.
B) Agreement to do an act which is impossible.
C) Agreement restraint the marriage of any person.
D) Agreement by way of Wager (Shart)
E) Agreement to retrain of trade.
So it is understood that for legal bounding the above mentioned points must be fulfilled, so we can say simply promise not bound to any person for performing.
Q 3: For answer see you Aiou book page # 69 – 70 – 71.
Q 4: Aiou Book page # 87 – 88.
Q 5: Your aiou book page # 142 – 143 – 144 – 145 – 146.