Short terms for business law learning.

 Agreement= between two parties for valuable consideration.

 Consideration= economic benefit or goods for promise.
Example- A agree to sell a flat to B for $80000. For A’s promise the
consideration is $80000. For B’s promise the consideration is the flat.
 Contract=Agreement accepted in the eye of law
 Implied agreement=agreement by conduct not by express word(literal terms
and condition).
 Void=agreement not allowed by law
IF B contracts with A to sell his casino without license to A, A then resells it
to C, C does not acquire any title to the goods simply because A can’t pass
to C what he does not have. The contract is void
 Voidable=agreement may be allowed by law depend on fact and
circumstnce(evidence or performance).
X coerces Y into entering into a contract for the sale of Y’s house to X. This
contract can be avoided by Y. X cannot enforce the contract. But Y if he so
desires, can enforce it against X.

 Valid=agreement accepted or allowed by Law of Contract.

 Capacity of parties= legal conditions required by law for a person to enter
into agreement.
 competency=a person is competent in age,when he is major(18 years
age).
 Minority=below 18 years or 21(when property of child under custody)
age.
 Lunatic=disabled person who is mentally or physically incapable to
decide right or wrong effect of agreement.
 Sound mind= mentally party of agreement is ready to understand right
or wrong effect of the terms of agreement, at the time of agreement.
 Free consent=voluntary acceptance of terms and condition of
agreement by parties.
 example: Fraud, Mispresentation, Mistake
Fraud: Manoj was induces to buy shares in a company on account of a false
statement made by a stranger. It was held that he cound not get out of the
bargains because false statement was not made by the company or its agent.
Manoj says to deepika his coat is made of pure wool, though he knows that
it is untrue. Deepika purchases the coat believing Manoj’s statement to be
true. its a fraud by manoj and there fore contract is voidable at deepika’s
option.
 Prima-facie=apparently who is responsible for any wrong or unlawful act
before law.
 Burden of proof= who is responsibility to prove himself out of guilt
(claim against him/her).
Example: A student claims that the school is overcharging students for
lunch. The teacher says that she does not believe that is happening. The
student asks the teacher to prove that lunch prices are fair.
 Crime=unlawful act to punish declared by penal law of any country.
 Breach of duty= when person failed to perform his duty knowing or
without knowing.
A enters into a contract to supply B with certain articles on the 1st of June,
before 1st June he informs B that he will not able to supply the goods.
 Warranted= acknowledged or especially know the fact or object (materials,
terms, effect of agreement).
A agrees to sell a certain oil described as refined rapeseed oil to B, warranted
only equal to sample. The goods that A tenders are found to be equal to the
sample but containing a mixture of hemp oil. In such a case B can reject the
goods.
 Good faith=someone enters into agreement with utmost knowledge and
honesty in transfer of goods of agreement.
if a person agrees to manufacture and distribute 1,000 door knobs, but they
do not have any of the resources or the capabilities to manufacture 1,000
door knobs, then the other party can argue that they did not enter into their
contract in good faith. Thus, they will have violated the implied covenant of
good faith and fair dealing
 Supervening impossibility=performance of contract become
impossible by supernatural event or reasons.

A contract to marry B being already married to C, and being forbidden by

the law to which he is subject to practice polygamy. A must make
compensation to B for any loss caused to her by the non- performance of his
promise.
 Quantum merit= quantity of compensation according to merit of
agreement (implied agreement).
Example: A contractor is engaged by X to build a 2 storied house. After a
part is constructed, he prevents the contractor from working any more. The
contractor is entitled to get reasonable compensation for the work done, in
addition to what he may allowed by the court as damages for breach of
contract.
 Specific performance=specific obligation of contract will be given as
compensation for contract.
 Injunction=restrain the party from violation of law (any act or
omission).
G agreed to buy the whole of the electric energy required for his house from
a certain company. This was interpreted as a promise not to buy electricity
from any other company. He was therefore restrained by an injunction from
buying electricity form any other company.
 Recession= cancel the contract
 Restoration= as it was (compensate in such way as party was before entering
into agreement)
 Lien=right to retain the goods until payment.
A gives cloth to B a tailor to make into a coat, B promises A to deliver the
coat as soon as its finished. And to give a three months credit for the price. B
is not entitled to retain the coat until he is paid.
 Estoppel= stop the party from claiming legal right/interest for his own
defaults.
 X is the owner of certain goods. X acts in such a manner that Y is induced to
believe that the goods belong to Z. On that belief Y buys the goods from Z.
Under this circumstance the court will not allow X to prove this ownership.
Thus, Y gets a good title to the goods even though he has purchased them
from Z who is not their owner.
 Contingency= conditional. (any fact which is depending to other fact:
insurance benefit will be given if loss by accident).
Example: there is a contract between A and B according to which A has to
sell his goods which are in journey, to B it the ship reaches the port safely.
 Waiver=abandonment of legal right or interest.
 Condition=essential term of contract (non-fulfillment gives the right to
breach/cancel of contract)
 Warranty= not essential term of a contract (not gives the right to breach the
contract but compensation).
 Ownership=who claims the good with valid document and title.
 Possession=only hold or keep or use the good in absence of any legal
document of ownership or title.
 Endorsement=transfer not in original form (by attached document or other
side of form.)
 Charter-party= agreement between consignor and ship owner (to carry the
goods)
 Bill of lading=document of receipt of good- in ship by captain.
 Indemnity=contract for saving another contract {fire or marine
insurance (contract) to save the goods of contract}.
A contract to indemnify B, against the consequences of any proceeding
which C may take against B in respect of a certain sum indemnifier and B
the indemnity holder.