BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Ambiguous
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Unambiguous
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Doubtful
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Correct
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Detailed explanation-1: -An offer must be definite and clear, without which a binding contract isn’t created. A contract of such kind is considered to be void. To state as provided in the respective legal provision, “Agreements, the meaning of which is not certain or capable of being certain are void.”
Detailed explanation-2: -The five requirements for creating a valid contract are an offer, acceptance, consideration, competency and legal intent.
Detailed explanation-3: -The basic elements required for the agreement to be a legally enforceable contract are: mutual assent, expressed by a valid offer and acceptance; adequate consideration; capacity; and legality.
Detailed explanation-4: -A valid offer creates a legal relationship which means there must be an intention of the offeror to work under legal obligation or to be legally bounded by law not under social obligation.