contract formation

Question 1

Elements of a Contract

Answer 1

Consent: Parties must agree freely.
Capacity: Parties must have legal capacity to contract.
Object: Clearly defined and lawful.
Cause: A legitimate reason for the contract

Question 2

Special Requirements

Answer 2

Contracts for sale-purchase of significant assets (e.g., fleets) must be in writing to ensure enforceability.

Question 3

Absolute Nullity

Answer 3

A contract that violates mandatory legal provisions (e.g., illegal object).

Question 4

Relative Nullity

Answer 4

Can be annulled if one party’s rights were violated (e.g., lack of consent, incapacity).

Question 5

Sale-Purchase Agreement

Answer 5

A sale-purchase agreement is a contract where one party (seller) transfers ownership of goods to another party (buyer) in exchange for payment.

Question 6

obligations of seller

Answer 6

Delivery of Goods
Transfer of Ownership
Warranty Obligations

Question 7

obligations of buyer

Answer 7

Payment
Acceptance of Delivery

Question 8

Special Clauses in Sale-Purchase Contracts

Answer 8

Retention of Title-Ownership remains with the seller until full payment is made.

Liquidated Damages-Pre-determined compensation for breaches (e.g., late delivery or payment

Question 9

late payment buyer

Answer 9

Interest on Late Payment
Right to Cancel the Contract
Legal Action for Recovery

Question 10

Late Delivery by the Seller

Answer 10

Damages
Specific Performance
Right to Terminate the Contract
Price Reduction