Summary of Uploaded Documents
Legal Aspects of Business
1. Performance and Discharge of Contract
• A contract is performed when both parties fulfill their obligations.
• Types of performance:
o Actual Performance
o Substantial Performance
o Partial Performance
o Attempted Performance
• Contracts can be discharged by performance, agreement, lapse of time, impossibility,
operation of law, accord and satisfaction, or breach.
• Remedies for breach include rescission, damages, specific performance, injunction, and
quantum meruit.
2. Essentials of a Contract: Consideration
• Consideration is something given in return for a promise.
• Rules governing consideration:
o Must be at the desire of the promisor
o May move from the promisee or any other person
o Must have value and be legal
o Need not be adequate but must be sufficient
o Certain contracts may be valid even without consideration (e.g., agreements made
out of natural love and affection).
3. Transfer of Ownership & Delivery of Goods
• Ownership transfers when the contract specifies, or upon payment and delivery.
• Risk passes with property unless agreed otherwise.
• Delivery methods include actual, symbolic, and constructive delivery.
• Rights of unpaid sellers include:
o Right of lien
o Right to stop goods in transit
o Right of resale
o Right to sue for price and damages
4. Nature and Essentials of a Contract
• A contract is an agreement enforceable by law.
• Essentials of a valid contract:
o Agreement
o Intention to create legal relations
o Lawful consideration
o Capacity of parties
o Free consent
o Lawful object
o Certainty
o Possibility of performance
o Not declared void by law
5. Sale of Goods Act
• Contract of sale: Agreement where ownership of goods transfers for a price.
• Classification of goods:
o Existing goods (specific, ascertained, unascertained)
o Future goods
o Contingent goods
• Perishing of goods before or after contract affects validity.
• Conditions and warranties:
o Conditions are essential stipulations, breach leads to contract termination.
o Warranties are collateral, breach leads to damages but not termination.
• Doctrine of Caveat Emptor (Let the buyer beware) and Caveat Venditor (Let the seller
beware) govern buyer and seller obligations.
6. Types of Contracts
• Valid, Void, and Voidable Contracts:
o A valid contract meets all legal criteria.
o A void contract is unenforceable from the start.
o A voidable contract is valid but may be avoided by one party.
• Unenforceable Contracts: Legally valid but not enforceable due to technical flaws.
• Illegal Contracts: Agreements forbidden by law (e.g., contracts for illegal acts).
• Executed vs. Executory Contracts:
o Executed contracts are fully performed.
o Executory contracts have obligations yet to be fulfilled.
• Express and Implied Contracts:
o Express contracts state terms explicitly.
o Implied contracts are inferred from actions.
• Unilateral and Bilateral Contracts:
o Unilateral contracts involve one-sided obligations.
o Bilateral contracts involve mutual promises.
• Quasi Contracts: Legal obligations resembling contracts, enforced to prevent unjust
enrichment.
7. Case Studies and Examples
• Various real-life cases illustrate contract law applications, such as mistaken deliveries, fraud,
and restraint of trade.
This summary encapsulates all the key legal aspects covered in your documents.
