Business Law

Title: Understanding Contracts in Business

Imagine you are starting a small business and need to engage with various partners, suppliers, and service providers. Contracts are essential in ensuring clear agreements. Choose a simple business contract (real or hypothetical) related to services, sales, or agreements between parties.

Identify Essential Elements:

Analyze the chosen contract and identify and list its essential elements, including parties involved, consideration, terms & conditions.

Enforceability Assessment:

Discuss whether the contract is likely to be enforceable based on its adherence to legal requirements and principles of contract law.

Breach of Contract Scenarios:

Imagine and outline two potential scenarios where a breach of contract could occur based on the terms and conditions specified in the contract.

Summary and Conclusion:

Summarize the key findings of the analysis, emphasizing the importance of understanding contracts and their significance in business transactions.

Present your findings in a clear and organized manner, focusing on the essential aspects of the contract and its implications for your hypothetical small business.

BULA1201: INTRODUCTION TO
BUSINESS LAW
Dr. Neeraj Nautiyal
Assistant Professor
Faculty of Business
S2/ 2023-24
Week 4
Introduction to Contract Law- Understanding the Basics
Agenda
• Overview of Contract Law
• Elements of a Contract
• Types of Contracts
• Offer and Acceptance
Introduction
• Contract law deals with, among other things, the formation and keeping of promises.
• Promise – A declaration that something either will or will not happen now or in the
future.
– Promises could be Moral obligation or Legal
• Note: Contract law does not govern moral promises;
Ex- Failure to perform a moral obligation, such as an agreement to take a friend to
lunch, usually does not create legal liability.
Business agreement depends to a great extent on the rules of the contract law. These rules
assure the parties that the promises they make will be enforceable and help them to avoid
potential problem.
Lee Roach. (2016) Business Law, 4th ed. Oxford: Oxford University Press.
Is every promise a contract
• While every contract is a kind of promise, not every promise
becomes a contract.
• A contract is a special kind of promise that is written down, agreed
upon by all parties involved, and often includes specific rules or
conditions
• Regular promises may not have these formal details and may not be
legally binding like a contract.
Definition
• A contract is an agreement that can be enforceable in court.
• It consist of two or more parties who agree to perform or refrain from
performing some act now or in future.
• If one party fails to perform as promised, the other party can use the
court system to enforce the contract and recover damages or other
remedy
Lee Roach. (2016) Business Law, 4th ed. Oxford: Oxford University Press.
Lee Roach. (2016) Business Law, 4th ed. Oxford: Oxford University Press.
Lee Roach. (2016) Business Law, 4th ed. Oxford: Oxford University Press.
Offer Vs Invitation to Treat
Lee Roach. (2016) Business Law, 4th ed. Oxford: Oxford University Press.
Form of contract
1. Written
2. Oral
3. Partly oral and written
Is a Verbal Agreement a Legal Contract?
A verbal agreement can constitute (some specific exceptions) a binding
legal contract. However, all of the conditions previously described —
offer, acceptance, consideration, two or more competent parties, and
lawful purpose — must be met.
Lee Roach. (2016) Business Law, 4th ed. Oxford: Oxford University Press.
Written Contract
• A written contract lays out the terms of the agreement — drastically
limiting one party’s ability to claim anything otherwise after the fact.
Contract law recognizes the superiority of written versus verbal
agreements through a provision known as the “Four Corners
Doctrine.”
• Four Corners Doctrine – The rule states that if there is any dispute
between the written contract and any supposed verbal terms made
by the parties, the words written within the four corners of the page
of the written document shall govern the agreement.
Lee Roach. (2016) Business Law, 4th ed. Oxford: Oxford University Press.
Lee Roach. (2016) Business Law, 4th ed. Oxford: Oxford University Press.
Lee Roach. (2016) Business Law, 4th ed. Oxford: Oxford University Press.
Key References
• Jones, L. (2013). Introduction to Business Law, Oxford
University Pres
• Cheeseman Henry R. (2020). Business Law, 10th edition,
Pearson
• Le Roach. (2016) Business Law, 4th ed. Oxford: 1
Contact
Dr. Neeraj Nautiyal
Assistant Professor
Faculty of Business
Email: nnautiyal@su.edu.om
‫شكرا‬
ً
Thank You
Faculty Name
Business
Program Name
Business and Commercial Law
Assessment 3
Assignment
COURSE CODE
BULA 1201
COURSE TITLE
Introduction to Business Law
SEMESTER
S2
ACADEMIC YEAR
2023-2024
EXAM START DATE
04-03-2024
EXAM END DATE:
05-04-2024
DURATION
4 Weeks
MAXIMUM MARK
100 marks (Weightage 25%)
COURSE COORDINATOR
Dr. Neeraj Nautiyal
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Please insert your names here:
Students name & ID:
Students name & ID
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Instructions and guidelines (Read carefully)
Instructions
1. Write the answer in the space provided below.
2.
Submit the assignment in MS Word through Turnitin on SULMS and one print copy in
my office with this cover page.
3.
You are expected to work on this assignment in group of four member from same section
(lecture class).
4.
Carefully read and understand the question before answering it.
5.
Font Type: Arial; Font Size:12.
6.
Headings: Use bold case for headings, no underlining or italics.
7.
Add reference where necessary
Plagiarism declaration:
1. We are aware that plagiarism is wrong.
2. We acknowledge that this assignment is my own work.
3. We have not allowed, anyone to copy our work.
4. We declare that this assignment is our own work.
PLEASE NOTE: Plagiarism cases will be inspected in line with the University Policy.
Academic Honesty and Misconduct
There is no tolerance at Sohar University for academic dishonesty and misconduct. The
university expects all students to conduct themselves with dignity and to maintain high
standards of responsible citizenship. It is the student’s responsibility to address any questions
regarding what might constitute academic misconduct to the course coordinator or academic
advisor for further clarification. University Regulations on academic misconduct will be strictly
enforced. Please refer to the Student Handbook for further details on plagiarism, academic
honesty and attendance regulations.
:‫ضبط السلوك األكاديمي‬
‫يتوقع من الطالب الجامعي بان لديه القدرات القيادية على تحمل المسؤولية الشخصية بسمات من االمانة والمحافظة على النظام‬
‫ وان‬،‫ حيث ان النظام االكاديمي بالجامعة واضح ومدرج في دليل الطالب ومعلوم لدى جميع الطالب‬،‫الجامعي في المؤسسة التعليمية‬
.‫اي تجاوز لالنظمة يعرض الطالب للمساءلة النظامية وفق االسس المعمول بها‬
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Assignment:
Title: Understanding Contracts in Business
Imagine you are starting a small business and need to engage with various partners,
suppliers, and service providers. Contracts are essential in ensuring clear
agreements. Choose a simple business contract (real or hypothetical) related to
services, sales, or agreements between parties.
Identify Essential Elements:
Analyze the chosen contract and identify and list its essential elements, including
parties involved, consideration, terms & conditions.
Enforceability Assessment:
Discuss whether the contract is likely to be enforceable based on its adherence to
legal requirements and principles of contract law.
Breach of Contract Scenarios:
Imagine and outline two potential scenarios where a breach of contract could occur
based on the terms and conditions specified in the contract.
Summary and Conclusion:
Summarize the key findings of the analysis, emphasizing the importance of
understanding contracts and their significance in business transactions.
Present your findings in a clear and organized manner, focusing on the essential
aspects of the contract and its implications for your hypothetical small business.
Minimum of 2 page and Maximum 5 pages
3|Page5
PLEASE WRITE HERE:
4|Page5
5|Page5
6|Page5
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Your submission will be reviewed according to the following rubric:
CRITERIA
Structure and
Focus (30Marks)
Fail
Satisfactory Performance
1
A non-acceptable
answer that did not
address the demand of
the question. (0 point)
2
An acceptable quality
structured answer that
focuses on the demands of
the question. (6 point)
Good Performance
Very good Performance
Excellent Performance
Exceptional performance
3
4
A good quality structured
A very good quality
answer that focuses on the structured answer that
demand of the question. (12 focuses on the demand of
points)
the question. (18 points)
5
6
An excellent and high
An exceptional and highstandard structured
quality structured answer
answer that focuses on the that focuses on the demand
demand of the question. of the question. (30 points)
(24 points)
The answer exhibits an
The answer exhibits a good The answer exhibits a very The answer exhibits an
The answer exhibits an
acceptable demonstration of demonstration of the
good demonstration of the excellent demonstration of outstanding demonstration
the required critical
required critical elements (12 required critical elements the required critical
of the required critical
elements. (6 point)
points)
(18 points)
elements. (24 points)
elements (30 points)
Demonstration of The answer did not in
critical elements any way exhibits an
(30Marks)
acceptable
demonstration of the
required critical
elements. (0 point)
The answer did not in
The answer did not exhibit The answer just exhibits the The answer exhibits a
The answer exhibits a good The answer exhibits an
Theoretical and
any way exhibit the
the depth of theoretical
depth of theoretical
sufficient depth of
depth of theoretical
excellent depth of
conceptual
depth of theoretical
understanding of the subject understanding of the subject theoretical understanding of understanding of the
theoretical understanding of
(20Marks)
understanding of the
that is expected at this level. that is expected at this level. the subject that is expected subject that is expected at the subject that is expected
subject that is expected (4 point)
(8 points)
at this level. (12 points)
this level. (16 points)
at this level. (20 points)
at this level. (0 point)
A non-acceptable report An acceptable understanding Good understanding and
Very good understanding Excellent report with an
Outstanding report with an
Presentation
with
no
understanding
and
adherence
to
the
report
adherence
to
the
report
and
adherence
to
the
report
excellent
understanding
excellent understanding and
of ideas
and
adherence
to
the
writing
guidelines:
grammar,
writing
guidelines:
grammar,
writing
guidelines:
and
adherence
to
the
adherence to the report
(20Marks)
report writing guidelines: spelling etc. (4 point)
spelling etc. (8 points)
grammar, spelling etc. (12 report writing guidelines: writing guidelines: grammar,
grammar, spelling etc. (0
points)
grammar, spelling etc. (16 spelling etc. (20 points)
point)
points)
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Business law tutorial 4 answers
Q1: Identify whether it is an offer/invitation to treat in the following statement
a. A supermarket advertises that it will give a free Chicken to anyone who spends at least
OMR 40 in any one visit.
b. A manufacturer of electric shavers advertises, ‘Shaves as close as your blade or your money
back.’
a. This is an offer. The supermarket is advertising a specific promotion where they will give a free
chicken to anyone who spends at least OMR 40 in any one visit.
b. This is an offer. The manufacturer is advertising a guarantee that their electric shavers will
provide a close shave, and if not, they will refund the customer’s money.
Q2: Why a Written Contract is Better Than a Verbal Agreement?
a written contract is better than a verbal agreement because it provides more clarity, certainty, and
protection to the parties involved. A written contract can also help prevent or resolve disputes, and
comply with legal requirements. Therefore, it is advisable to use a written contract whenever
possible, especially for important or complex deals .
Q3: Scenario based question
Ms. Arwa notices a book with a price tag of 15 OMR displayed on a shelf in a bookshop. Ms. Arwa
offers 12 OMR on the counter and requests the book. The book seller declines, stating that the book
has already been sold and he does not have another copy in stock. Is the book seller contractually
obligated to sell the book to Ms. Arwa?
No, the book seller is not contractually obligated to sell the book to Ms. Arwa. In this scenario, Ms.
Arwa made an offer of 12 OMR, which the book seller declined. Until both parties reach an
agreement on the price and terms of the sale, there is no legally binding contract. Additionally, the
book seller mentioned that the book has already been sold and is not available in stock, further
indicating that there is no obligation to sell the book to Ms. Arwa.
Q4: Identify whether the followings are Unilateral or Bilateral contract. Give reason to support
your answer.
a. Hasan walks into a local Toyota showroom. He enters into negotiation to buy a new car. A
contract is presented to Hasan which states that the car will cost 7,000 OMR and will be delivered
before the end of the month. Full Payment is due within ten working days of singing the contract.
Hasan signs the contract.
b. After buying the car, Hasan leaves it parked outside his house. One night, it is stolen. Hasan puts
an advertisement in local newspaper stating that anyone who locates the car, or provides the police
with information leading to recovery of the car, will receive from him a reward of 150 OMR.
a. The contract between Hasan and the Toyota showroom is a bilateral contract. This is because
both parties, Hasan and the showroom, have made promises and obligations to each other. Hasan
promises to pay 7,000 OMR and the showroom promises to deliver the car before the end of the
month. Both parties have agreed to these terms and have signed the contract, indicating their
mutual consent.
b. The offer made by Hasan in the advertisement is a unilateral contract. This is because Hasan is
making a promise to provide a reward of 150 OMR to anyone who meets the specified conditions
(locating the car or providing information leading to its recovery). The person who performs the
requested action (locating the car or providing information) can accept the offer by fulfilling the
conditions, and only then will Hasan be obligated to provide the reward”
Business law tutorial 5 answers
Q1: What are the conditions to terminate an offer?
.The conditions to terminate an offer include:
-Revocation: The offeror can revoke the offer at any time before it is accepted.
-Rejection: The offeree can reject the offer, either explicitly or implicitly.
-Counteroffer: If the offeree proposes a counteroffer, it terminates the original offer.
-Lapse of time: If the offer specifies a time limit for acceptance and that time passes without
acceptance, the offer is terminated.
-Death or incapacity: If either the offeror or the offeree dies or becomes incapacitated before
acceptance, the offer is terminated.
-Destruction of subject matter: If the subject matter of the offer is destroyed or becomes
unavailable, the offer is terminated.
Q2: Discuss the concept of consideration? What are the different types of consideration? Give
Examples?
.Consideration is something of value that is exchanged between parties to a contract. It is a
necessary element for a contract to be legally binding. There are two types of consideration:
-Executory consideration: This is a promise to do something in the future. For example, if A
promises to paint B’s house next week, A’s promise is the consideration.
-Executed consideration: This is when the consideration has already been performed. For example,
if A has already painted B’s house, A’s act of painting is the consideration.
Examples:
-A promises to pay B OMR 100 in exchange for B’s laptop. The promise to pay is the consideration.
-A promises to mow B’s lawn every week for a month in exchange for B giving A OMR 50. The
promise to mow the lawn is the consideration.
Q3 Can a person be an agent who does not have capacity to contract? Give reason in support of
your answer?
Yes, a person can be an agent even if they do not have the capacity to contract. This can occur in
situations where the person is acting on behalf of someone else who has the legal capacity to
contract. For example, a parent may appoint their minor child as an agent to perform certain tasks
or make decisions on their behalf. While the child may not have the capacity to enter into contracts
themselves, they can still act as an agent under the authority and guidance of the parent. In such
cases, the legal capacity to contract lies with the principal, not the agent.
Q4: Outline the types of contract that are illegal? Give examples?
.Types of contracts that are illegal include:
-Contracts that involve illegal activities, such as drug trafficking or gambling.
-Contracts that are against public policy, such as contracts that encourage discrimination or harm
to others.
-Contracts that are entered into by parties who lack legal capacity, such as contracts with minors
or mentally incapacitated individuals.
Examples:
-A contract for the sale of illegal drugs.
-A contract that requires someone to commit a crime.
-A contract that promotes discrimination based on race or gender.
Q5: Identify two situations in which agreements lack consideration?
Two situations in which agreements lack consideration are:
-Past consideration: If a promise is made in exchange for something that has already been done, it
lacks consideration. For example, if A promises to pay B OMR 100 for helping them move last
week, the promise lacks consideration because the help was already provided.
-Illusory promises: If a promise is too vague or uncertain, it lacks consideration. For example, if A
promises to give B “something of value” without specifying what that something is, the promise
lacks consideration.
Q6: Distinguish between condition and Warranty?
.Condition and warranty are two types of terms in a contract:
-Condition: A condition is a fundamental term of a contract that goes to the root of the agreement.
If a condition is breached, the innocent party can terminate the contract and seek damages. For
example, if A agrees to sell B a car, and it is a condition that the
Q7: Are the following promises legally binding or merely gratuitous?
(a) Mr. Ali returned Mr. Rayyan lost tortoise. Rayyan promised him OMR 5.
(b) Aida agreed to sell her sports car to Aaisha for OMR. 5000.
(c) Sara promised her employee Balqees that she would give him OMR. 50 bonus if she arrived
at work on time for a week.
(a) This promise is legally binding. Mr. Rayyan promised to give Mr. Ali OMR 5 in return for
returning the lost tortoise. Both parties have exchanged something of value (the tortoise and the
money), indicating an intention to create legal relations.
(b) This promise is legally binding. Aida agreed to sell her sports car to Aaisha for OMR 5000. Both
parties have agreed on a specific price for the car, indicating an intention to create legal relations.
(c) This promise is legally binding. Sara promised her employee Balkees a bonus of OMR 50 if she
arrived at work on time for a week. This promise is made in the context of an employment
relationship, indicating an intention to create legal relations”
Business law Tutorial 6 answers
1Q: What is the importance of Agency in a business contract?
The importance of agency in a business contract is that it allows one party (the principal) to
authorize another party (the agent) to act on their behalf in business transactions. This delegation
of authority allows the principal to expand their reach and conduct business more efficiently, as the
agent can perform tasks and make decisions on their behalf.
Q2: Discuss Agency relationship?
An agency relationship is a legal and fiduciary relationship between two parties, where one party
(the principal) grants authority to another party (the agent) to act on their behalf. The agent is
authorized to make decisions and perform tasks on behalf of the principal, and owes certain duties
of loyalty, care, and obedience to the principal
Q3: Under what circumstances is a principal liable to a third party on a contract entered into by an
agent?
The Agent has the ability to affect the legal position of the principal and contractually bind him to
third party .
Q4: Once the relationship between a principal and agent ends, does the agent have the right to bind
the principal?
Once the relationship between a principal and agent ends, the agent generally does not have the
right to bind the principal anymore. However, there may be exceptions if the agent had apparent
authority or if there are ongoing obligations or contracts that continue after the termination of the
agency relationship.
Q5: Asmaa puts goods into Zainab’s auction. Khalid asks Noura to go to the auction and bid for the
set (item). Noura is the highest bidder and buys the set (item) for Khalid. Identify the two principals
and two agents?
In this scenario:
Asmaa and Khalid are principal
Zainab’s and Noura are agent
Asmaa is the principal who puts goods into Zainab’s(agent) auction.
Khalid is the principal who asks Noura to go to the auction and bid for the set (item).
Noura is the agent who attends the auction and buys the set (item) for Khalid.
Q6: Insurance agents are genuine agents. Whose agents, are they? Are they the agents of the client,
making a contract with the insurance company on the client’s behalf? Or are they the agents of the
insurance company, making a contract with the client on the insurance company’s behalf?
Insurance agents are typically agents of the insurance company.
They act on behalf of the insurance company to sell insurance policies and handle related tasks.
While they may work closely with clients and assist them in obtaining insurance coverage, their
ultimate loyalty is to the insurance company”