Legal Aspects of business

• What is the definition of a contract?

  A legally binding agreement between parties
• Why is the term "legal" important in the definition of a contract?

  It indicates the contract is enforceable by law
• What are the two types of contracts mentioned?

  Simple contract and specialty contract
• What distinguishes a specialty contract from a simple contract?

  Specialty contracts must be in writing
• What must be included in a specialty contract?

  It must be signed, sealed, and delivered
• What is a key characteristic of a simple contract?

  It can be verbal or oral
• What are the characteristics of a simple contract?

  • Offer and acceptance
  • Competence of parties
  • Intention to create legal relations
  • Consideration
• What are the characteristics of a specialty contract?

  • Signed, sealed, and delivered
  • Includes all characteristics of a simple contract
• What does "consideration" mean in a contract?

  Both parties must benefit from the contract
• What does "capacity" refer to in contract law?

  The ability to understand and enter a contract
• Who cannot enter into certain contracts?

  Minors and mentally ill individuals
• What is meant by "genuine consent" in a contract?

  All parties agree without coercion or deceit
• What does "good faith" mean in contract negotiations?

  Full disclosure of relevant information
• What must a contract be in order to be enforceable?

  It must be legal
• What does "possibility" refer to in contract terms?

  The ability to carry out the contract's terms
• How can a contract be terminated by performance?

  When all obligations of the contract are fulfilled
• What does it mean to terminate a contract by agreement?

  Both parties agree to end the contract
• What is a breach of contract?

  Failure to fulfill contractual obligations
• What does "lapse of time" mean in contract law?

  The contract expires after a certain period
• What are examples of specialty contracts or deeds?

  • Deed poll (change of name)
  • Deed of gift (transfer of property)
  • Deed of partnership
  • Deed of mortgage
  • Deed of conveyance (buying/selling land)
• Why are business documents needed?

  To create a clear permanent record of transactions
• What is the purpose of traceability in business documents?

  To track the movement of goods
• What is the importance of legal aspects in business?

  They ensure compliance and protect rights
• How does insurance relate to business contracts?

  It protects against potential financial losses
• Why is contract law significant in business operations?

  It governs agreements and enforces obligations
• Why is it necessary to have contracts in writing?

  To provide proof and clarity of terms
• What are the implications of verbal contracts?

  They can be harder to enforce legally
• What is the process of contract negotiation?

  Discussing terms until both parties agree
• What is the impact of contract breaches on business relationships?

  They can damage trust and lead to disputes
• What are the legal consequences of illegal contracts?

  They are unenforceable in court
• What is the role of witnesses in specialty contracts?

  To verify the authenticity of the contract
• What are the differences between public and private limited companies in contract law?

  Public companies can issue shares, private cannot
• What does "necessities" refer to in contract capacity?

  Essential items that minors can contract for
• What is the role of good faith in business transactions?

  Ensures honesty and transparency in dealings
• What are the implications of contract termination on business operations?

  It can disrupt services and financial stability
• Why is understanding contract terms important for all parties involved?

  To ensure compliance and avoid disputes
• Why is it important to have contracts in black and white?

  To avoid misunderstandings and disputes
• What are examples of deeds mentioned in the text?

  Deed of easement, partnership, and mortgage
• What is the purpose of a deed of conveyance?

  To buy and sell land legally
• Why are business documents needed?

  • Create a clear permanent record
  • Track payment and transportation of goods
  • Ensure traceability of inventory
  • Maintain employee work records
  • Required for audits and legal compliance