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Business Law

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Added on  2020-06-03

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Business law INTRODUCTION 1 QUESTION 1 1 QUESTION 2 4 CONCLUSION 7 REFERENCES 8 INTRODUCTION Business law comprises with many rules and regulations that shows how to form or run a business in industry. According to section 2(h), of Contract Act 1950, ‘contract’ means when there is an agreement between two or more parties and which is legally bound to follow all terms and conditions which are enforceable by law. As per section 38 (1) of contract act, parties have either to

Business Law

   Added on 2020-06-03

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Table of ContentsINTRODUCTION...........................................................................................................................1QUESTION 1..................................................................................................................................1QUESTION 2..................................................................................................................................4CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................8
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INTRODUCTION Business law comprises with many rules and regulations that shows how to form or run abusiness in industry. It includes all rules, regulations, policies, procedures that help in starting,managing, selling or closing any type of business. This law is established with some rules andregulations that every organisation is required to follow in appropriate manner (Burke & Grube,2011). In present report, Malaysia’s legal system has been explained. This country’s systemcontains state legislations, federal constitution and subsidiary legislation. In this assignment,different types of contract i.e. valid, void and voidable are discussed. Along with this, term hirepurchase agreement has been explained in context of Malaysia.QUESTION 1The contract is to be considered as massive or a complex document. According to section2(h), of Contract Act 1950, ‘contract’ means when there is an agreement between two or moreparties and which is legally bound to follow all terms and conditions which are enforceable bylaw. It is not always possible for anyone to include the basic requirement of contract such asacceptance, offer, consideration, consent or capacity of parties and so on. These agreements arebinding by courts.As per section 38 (1) of contract act, parties have either to perform or offer to executetheir promises, unless their performances are dispensed by any law. There are many terms whichare included in contract i.e. void, voidable and valid. These terms are essential for everyone toform any type of contract (Jianyuan, 2012). Based on validity, there are various types of contract;valid, void, illegal and many more and it depends upon both parties that what kind of contractthey are entering into performing any agreement.Voidable contract: These agreements will become enforceable at the option of one ofthe two parties. In this type of contract, one or both the parties cannot terminate writtenagreement at any point of time (Schooner, 2011). The agreement will not become valid until andunless the aggrieved party does not withdraw it. For example, if any contract has been done byminor then it becomes voidable. Voidable contracts sometimes are considered as void contract.In this contract, between parties, agreements are either accepted or rejected at the option of oneperson. There are some grounds on which contract becomes voidable contract i.e. coercion,misrepresentation, undue influence or fraud. 1
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Case Law – Korsah, C.J., Sarkodee-Adoo and Adumua-Bossman, JJ.S.C. The fact ofthis was; contract has been done in hire-purchase-misrepresentation-claim for recession, return ofrent paid and damages. But plaintiff use car for full one year before withdrawing any action. Asper provision, decision of court is held that they dismiss plaintiff’s claim for paying the rentamount in returns under a hire-purchase agreement. Plaintiff wanted to withdraw on the groundsthat there was a misrepresentation of facts. These facts are set out in cited case law.Valid contract means a contract which complies with all essential elements of contractand it is compulsory and enforceable on all parties. For example, a homeowner has signed acontract with an appliance store that they will buy a Sony T.V. At the same time, homeownerhas paid the amount for buying T.V. and appliance store have given permission to owner to takeT.V to their home. The following are terms which are included in valid contracts. An offer that specifically gives all necessary details about what exactly will be provided. Acceptance, other party have accepted the proposal which has been presented by theofferer as acceptance.Consideration, value which has been exchanged between parties.Competency of parties which is related with mental ability or age.Intention of both parties to carry out their promises. Void Contracts, these are those contracts which are not enforceable by law. The contractwill become valid, if it fulfils all essential conditions which are required to constitute a validcontract. The contract may become void, if there is any change in law or it has been entered inwith a minor person (Qing, 2012). For example, if contract has is done between illegal drugdealer and supplier to purchase specific amount of drug. This contract has become void becauseit does not contain any valid essential element of agreement. Following are the grounds whichmakes contract void; repudiation of voidable contract, illegality, impossibility of supervening. Case law, Government of Malaysia – Gurcharan Singh (1971) 1 MLJ 211. In thiscase, an infant, like lunatic or insane is unstable to do agreement on purchase in strict sense ofwords, but another party is satisfying their needs by providing them necessaries items, then insuch situation, obligation will be applied on plaintiff to repay such amount for renderingservices. Along with this obligation will be imposed on infant person. The execution of theseobligation was to impose rules and regulation on infant person and receive fair payment inrespect of satisfying their basic needs. 2
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