Home » mcq » Commerce » Legal aspects of business » Which of the following descriptions are correct? 1. Two competent parties – Sections 11 and 12 2. Valid acceptance – Sections 4 to 7 3. Lawful consideration – Sections 2(d) and 25 4. Free and voluntary consent – Sections 15 and 19A
2 and 4 only
1 and 4 only
2, 3 and 4
1, 2, 3 and 4
Answer is Right!
Answer is Wrong!
The correct answer is D. 1, 2, 3 and 4.
A contract is an agreement between two or more parties that creates an obligation to do or not do something. In order to be valid, a contract must meet certain requirements, including:
- Offer and acceptance: There must be an offer by one party and an acceptance by the other party. The offer must be clear d="M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube
and definite, and the acceptance must be unconditional.
Consideration: Each party must give something of value to the other party. This can be money, goods, services, or a promise to do something.Capacity: The parties must have the legal capacity to enter into a contract. This means that they must be adults and of sound mind.Intent: The parties must intend to create a legally binding agreement.Legality: The contract must not be for an illegal purpose.The four descriptions listed in the question are all requirements for a valid contract.
- Two competent parties. This means that the parties must be adults and of sound mind.
- Valid acceptance. This means that the acceptance must be unconditional and must be communicated to the offeror.
- Lawful consideration. This means that each party must give something of value to the other party.
- Free and voluntary consent. This means that the parties must not have been forced or coerced into entering into the contract.
Therefore, all four descriptions are correct.