Corparate Law

Sem Sub : Corporate LawQ.1. In the following statements only one is correct statement. ExplainBriefly?i)

An invitation to negotiate is a good offer.ii)

A quasi-contract is not a contract at all.iii)

An agreement to agree is a valid contract.

Ans : i)

Incorrect

: - Its not an offer only an indication of a willingness to consider any offers andcounter offers.ii)

Correct

: A quasi contract is a fictional contract created by courts for equilable,not contractual purposes. A quasi

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contract is not an actual contract, but is alegal substitute for a conterformed to impose equity between two parties theconcept of a quasi

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contract that show have been formed, even through inactually it was net. It is used when a court finds it appropriate to crecite anobligation upon a non

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contracting party to avoid injusand to ensure fciwiness.It is invoved in circumstances of unjust enrichment an is connected with theconcept of restitutes.iii).

Incorrect

: All contracts are agreement to all agreement not contracts. Acontract is a legally binding agreement relationship that exist between two ormore parties to do obstain from perfoming certain acts. An agreement is form of ceios reference between different parties, which may be written, oral and liesupon the no of the parties for its fulfillment rather the being in anywayenforceable. It follows, therefore, that the loss of profit here cannot reasonnilybe considered such a consequence of the breach of contract as could have beenfamily and reasonably contemplated by both the parties when they made thiscontract.

Q.2. A ship-owner agreed to carry to cargo of sugar belonging to A from Constanza toBusrah. He knew that there was a sugar market in Busrah and that A was a sugarmerchant, but did not know that he intended to sell the cargo, immediately on its

arrival. Owning to Shipment‟s default, the voyage was delayed and sugar fetched a

lower price than it would have done had it arrived on time. A claimed...