Business Law Study Material with Solved Assignments and Essays

Running head: BUSINESS LAW
Business Law
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Name of the University
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1BUSINESS LAW
Table of Contents
Question 1........................................................................................................................................2
Question 2........................................................................................................................................2
Question 3........................................................................................................................................2
Question 4........................................................................................................................................2
Question 5........................................................................................................................................3
Question 6........................................................................................................................................3
Question 7........................................................................................................................................3
Question 8........................................................................................................................................4
Question 9........................................................................................................................................4

2BUSINESS LAW
Question 1
The offeror can plead to discharge the contract based on mistake of fact as to the year of
manufacture of the guitar. Mistake of Law makes a contract voidable on the option of the other
party to the contract. In case, the offeree refuses to discharge the agreement, the offeror can sue
him for misrepresentation pertaining to the manufacturing year of the guitar, which he should
have been aware of as the owner of the goods.
Question 2
John would have no legal ownership claim over the lawnmower, as it is a stolen one.
John would not be able to establish his ownership stating the offer, acceptance and consideration
factor to the authority as one of the other essential of contract says that an agreement cannot be
based on illegal or stolen goods. John cannot claim ownership, however can claim a refund from
Cheryl.
Question 3
It would be advised to Janine that she cannot open the men’s clothing store for she sign
an agreement with Yvonne under which she cannot deal in ‘any retail business’ within a radius
of one mile for the next 5 years. Under contract law, such restrictive agreements are valid and
enforceable. Its purpose is to reduce competition when a business is in its thriving stage.