MGT611 Mid Term Important Questions[With Lecture Numbers]

Summary

This video provides a comprehensive overview of key contract law concepts, including duties in agency contracts, wagering agreements, and specific guarantees. It explains critical topics such as express vs implied agency, rights and obligations in agency contracts, undue influence, breach of contract, and the difference between executed and executory contracts. The script also covers specific examples like contingent contracts and unenforceable contracts, helping viewers understand the nuances of each concept. Designed to aid in exam preparation, this video serves as a valuable resource for legal students seeking clarity on these fundamental topics.

Takeaways

• 😀 Bailee must take reasonable care of goods and return them after the purpose is fulfilled, avoiding unauthorized use.
• 😀 Wagering contracts are generally not allowed, but under certain legal conditions, they may be permitted.
• 😀 Customary law is defined by societal customs and practices, and it holds legal recognition in some contexts.
• 😀 Express agency involves a formal written agreement, whereas implicit agency arises from the actions or behavior of the parties involved.
• 😀 In agency contracts, both parties have specific rights and obligations, which are further clarified when actions are ratified.
• 😀 Specific guarantees are tied to particular items or services, ensuring coverage only for the specific subject of the guarantee.
• 😀 Undue influence can occur in various relationships, such as between an employer and employee, or a husband and wife.
• 😀 A breach of contract occurs when one party fails to fulfill their obligations, with potential legal consequences.
• 😀 Contingent contracts are dependent on the fulfillment of certain conditions before they are executed, such as the arrival of goods.
• 😀 Fraud involves deliberate deception, while misrepresentation occurs when false statements are made unintentionally.
• 😀 A contract can be discharged when its obligations are fully performed or when one party breaches the agreement.
• 😀 A contract becomes voidable if it is signed under coercion or undue influence, such as threats or duress.
• 😀 Analytical jurisprudence focuses on the logical analysis of law, while ethical jurisprudence examines the moral implications of legal principles.
• 😀 An executable contract is fully performed by all parties, while an executory contract remains to be executed.
• 😀 Voidable contracts can be annulled if one party's consent was obtained through fraud, misrepresentation, or undue influence.

Q & A

What is the duty of a bailie in a contract?

The duty of a bailie is to take reasonable care of the goods entrusted to them and ensure they are not misused. Once the purpose for which the goods were entrusted is completed, they should return them to the owner.

Can you explain the concept of wagering contracts in law?

Wagering contracts involve betting on the outcome of a future event. While such contracts are generally not allowed under the law, exceptions exist where the contract is tied to certain conditions, such as agreeing on specific outcomes like the victory of a particular team.

What is the difference between express and implied agency?

Express agency involves a formal, written contract where one party authorizes another to act on their behalf (e.g., a builder hiring a marketing firm). Implied agency, on the other hand, is created through the actions or behavior of the parties without a written agreement (e.g., a person being seen frequently with a public figure, implying they work together).

What are the rights and obligations in a contract of agency made by ratification?

In an agency contract made by ratification, the agent has the right to act on behalf of the principal, and the principal is obligated to compensate the agent. Both parties must fulfill their duties as per the terms agreed upon, which may include the agent’s duty of loyalty and the principal’s duty to reimburse the agent for expenses incurred.

What is the concept of specific guarantee in contract law?

A specific guarantee is a promise made for a particular obligation or item. For example, a guarantee for a specific product, such as a bike, ensures the buyer that the product will meet certain standards. It does not extend to other debts or obligations.

What is undue influence in contracts?

Undue influence occurs when one party uses their position of power or authority to manipulate the other party into entering a contract. For example, a boss influencing an employee or a teacher pressuring a student could be considered undue influence.

What does the performance and discharge of a contract involve?

Performance refers to fulfilling the terms of the contract, while discharge occurs when the contract is completed or canceled. A contract can be discharged through performance, mutual agreement, or breach by one of the parties.

How do contracts of guarantee and indemnity differ?

A contract of guarantee involves one party promising to pay another's debt if they fail to do so. In contrast, a contract of indemnity involves one party promising to compensate for losses or damages caused by a third party or an event.

What is a breach of contract and its consequences?

A breach of contract occurs when one party fails to fulfill their obligations under the contract. The consequences can include legal remedies such as compensation for damages, specific performance, or cancellation of the contract.

What is the difference between fraud and misrepresentation in contracts?

Fraud involves intentionally misleading another party for personal gain, such as selling a defective car without disclosing its faults. Misrepresentation, on the other hand, involves providing false information without intending to deceive, such as failing to mention that a car's engine requires repairs.