hllo chegg team, this is commercial law subject, pls send me proper answer of th
ID: 342478 • Letter: H
Question
hllo chegg team, this is commercial law subject, pls send me proper answer of these question.
ques-Discuss the requirement of consensus in the formation of a contract. In your answer, consider the role of offer and acceptance and other relevant factors. Provide an example of a contract where consensus exists, and one where consensus does not exist.
Ques-The remedy of Rescission of a contract, on the basis of innocent misrepresentation on behalf of one of the parties, is not available in four situations. List and describe these situations, and provide one example for each situation.
Explanation / Answer
Consensus is the agreement of both parties involved in the contract. Also known as meeting of minds this term emphasizes on the mutual intentions of both the parties to form the contract.
To form a conntract offer and acceptance are two most important factors and these cannot be verified if their is no consensus. Offer is the intention of an individual to the other to enter in an contract on certain terms. The offer should e clear and direct such that on its acceptance the offeror is able to fulfill its terms he mentioned in the offer. Acceptance is when the person to whom the offer is made agrees to the terms mentioned in the offer and gets involved to involve in the contract with the offeror. Acceptance should be clear and with no changes or clauses in the offer. Also it should be made before the offer expires. The offer and acceptance shows the consensus of the contract by both parties when one puts the conditions of the contract and other accepts it.
Example of a contract where consensus exist- Two persons get into a contract to start a business with 50-50 share in capital and profits. They agree to the terms and involve in a written agreement or contract. At the year end the company suffers loss instead of profit and hence the loss is also beared by both parties on 50-50 basis.
Contract whete consensus does not exist- in the above scenario, if on bearing loss one party signifies that he did not know that the losses will also be shared among the two and hence is not ready to take the loss percentage on himself then the consensus does not exist and hence it invalidates the contract made between the two.
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