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1. What is the nature of a contract?
Ans. A contract is an agreement between two or more parties that creates an obligation to do or not do a particular thing. It is a legally binding agreement that establishes the rights and duties of the parties involved. The nature of a contract is based on the agreement's terms, which can be either express or implied.
2. What are the essential elements of a contract?
Ans. The essential elements of a contract are offer, acceptance, consideration, intention to create legal relations, capacity to contract, and legality of the object. Without these elements, a contract is not legally binding.
3. What is the difference between an express and an implied contract?
Ans. An express contract is one where the terms of the agreement are explicitly stated either in writing or verbally. An implied contract, on the other hand, is one where the terms are inferred from the conduct of the parties involved. For example, if you order food at a restaurant, an implied contract is formed that you will pay for the food.
4. What happens when one party breaches a contract?
Ans. When one party breaches a contract, the other party can sue for damages or seek specific performance. Damages are a monetary award intended to compensate the non-breaching party for any losses suffered as a result of the breach. Specific performance is a court order that requires the breaching party to fulfill their obligations under the contract.
5. What is a void contract?
Ans. A void contract is one that is not legally binding from the outset. Examples of void contracts include agreements that involve illegal activities or contracts that are entered into by parties who lack the capacity to contract, such as minors or mentally incapacitated individuals. A void contract cannot be enforced by either party.
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