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A agrees to deliver his old car valued at Rs. 80,000 to B, a car dealer, in exchange for a new car, and agrees to pay the difference in cash it is a/an
- a)contract of sale
- b)agreement to sell
- c)exchange
- d)barter
Correct answer is option 'A'. Can you explain this answer?
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A agrees to deliver his old car valued at Rs. 80,000 to B, a car deale...
Contract of Sale
A contract of sale is a legal agreement between two parties, wherein one party agrees to sell goods or services to the other party in exchange for a price. In this scenario, A is agreeing to deliver his old car to B, a car dealer, in exchange for a new car and payment of the difference in cash. This constitutes a contract of sale.
Elements of a Contract of Sale
A contract of sale has certain essential elements that must be present for it to be legally binding. These elements include:
1. Offer and Acceptance: A contract of sale requires an offer by one party and acceptance of that offer by the other party.
2. Consideration: Consideration refers to the price paid by the buyer for the goods or services being sold. In this scenario, the old car is the consideration being provided by A, while the new car and the cash payment are the consideration being provided by B.
3. Competent parties: Both parties must be legally competent to enter into a contract. For example, minors or individuals with mental incapacity cannot enter into a contract.
4. Free consent: Both parties must enter into the contract freely and without any coercion or undue influence.
5. Legal purpose: The contract must be for a legal purpose. Contracts for illegal activities are not enforceable by law.
Conclusion
In conclusion, the scenario provided constitutes a contract of sale. A is agreeing to deliver his old car to B in exchange for a new car and payment of the difference in cash. All the essential elements of a contract of sale are present in this scenario, including offer, acceptance, consideration, competent parties, free consent, and legal purpose.
A contract of sale is a legal agreement between two parties, wherein one party agrees to sell goods or services to the other party in exchange for a price. In this scenario, A is agreeing to deliver his old car to B, a car dealer, in exchange for a new car and payment of the difference in cash. This constitutes a contract of sale.
Elements of a Contract of Sale
A contract of sale has certain essential elements that must be present for it to be legally binding. These elements include:
1. Offer and Acceptance: A contract of sale requires an offer by one party and acceptance of that offer by the other party.
2. Consideration: Consideration refers to the price paid by the buyer for the goods or services being sold. In this scenario, the old car is the consideration being provided by A, while the new car and the cash payment are the consideration being provided by B.
3. Competent parties: Both parties must be legally competent to enter into a contract. For example, minors or individuals with mental incapacity cannot enter into a contract.
4. Free consent: Both parties must enter into the contract freely and without any coercion or undue influence.
5. Legal purpose: The contract must be for a legal purpose. Contracts for illegal activities are not enforceable by law.
Conclusion
In conclusion, the scenario provided constitutes a contract of sale. A is agreeing to deliver his old car to B in exchange for a new car and payment of the difference in cash. All the essential elements of a contract of sale are present in this scenario, including offer, acceptance, consideration, competent parties, free consent, and legal purpose.
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A agrees to deliver his old car valued at Rs. 80,000 to B, a car deale...
D
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A agrees to deliver his old car valued at Rs. 80,000 to B, a car dealer, in exchange for a new car, and agrees to pay the difference in cash it is a/ana)contract of saleb)agreement to sellc)exchanged)barterCorrect answer is option 'A'. Can you explain this answer?
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A agrees to deliver his old car valued at Rs. 80,000 to B, a car dealer, in exchange for a new car, and agrees to pay the difference in cash it is a/ana)contract of saleb)agreement to sellc)exchanged)barterCorrect answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A agrees to deliver his old car valued at Rs. 80,000 to B, a car dealer, in exchange for a new car, and agrees to pay the difference in cash it is a/ana)contract of saleb)agreement to sellc)exchanged)barterCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A agrees to deliver his old car valued at Rs. 80,000 to B, a car dealer, in exchange for a new car, and agrees to pay the difference in cash it is a/ana)contract of saleb)agreement to sellc)exchanged)barterCorrect answer is option 'A'. Can you explain this answer?.
A agrees to deliver his old car valued at Rs. 80,000 to B, a car dealer, in exchange for a new car, and agrees to pay the difference in cash it is a/ana)contract of saleb)agreement to sellc)exchanged)barterCorrect answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A agrees to deliver his old car valued at Rs. 80,000 to B, a car dealer, in exchange for a new car, and agrees to pay the difference in cash it is a/ana)contract of saleb)agreement to sellc)exchanged)barterCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A agrees to deliver his old car valued at Rs. 80,000 to B, a car dealer, in exchange for a new car, and agrees to pay the difference in cash it is a/ana)contract of saleb)agreement to sellc)exchanged)barterCorrect answer is option 'A'. Can you explain this answer?.
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