0421-215 Quiz Solved Questions & Study Guide (Summer 2026)

0421-215 Business Law | Summer 2026 Quiz Solved

Introduction

Business Law (0421-215) is a core BBA course at Daffodil International University. This quiz tests foundational contract law concepts.

This post provides concise solutions to all four questions from the Summer 2026 quiz. Use it for quick revision or exam prep.

Question Solutions

Q1: Five Essential Elements of a Valid Contract

• Offer & Acceptance: One party makes an offer, the other accepts. Example: A offers to sell a laptop for ৳50,000; B agrees.
• Consideration: Something of value exchanged. Example: A pays ৳50,000; B gives the laptop.
• Legal Capacity: Parties must be competent (age, sound mind). Example: A 17-year-old cannot legally contract.
• Free Consent: No coercion, fraud, or undue influence. Example: A signs a contract at gunpoint—void.
• Lawful Object: Purpose must be legal. Example: A contract to sell drugs is invalid.

Q2: Possibility of Performance

• Definition: Contract terms must be capable of fulfillment when made.
• Impossible from Start: Agreement is void if performance is inherently impossible.

Example: A agrees to sell B a unicorn. Why void? No unicorns exist—performance is impossible.

• Enforceability: Courts won’t enforce contracts with impossible terms (Section 56, Contract Act 1872).

Q3: Intention to Create Legal Relations

• Rule: Social/domestic agreements lack legal intent. Business agreements presume intent.
• Application: A and B’s deal is social (friends helping friends).
• Verdict: A cannot sue B. No legal intent = no contract.

Q4: Invitation to Treat vs. Offer

• Invitation to Treat: Invites offers (not binding).

- Catalogues: Price lists invite offers (e.g., Amazon product pages).

- Display of Goods: Shop shelves invite offers (e.g., supermarket items).

- Auction Bids: Auctioneer’s call invites bids (offers).

• Offer: Binding if accepted.

- Advertisement as Offer: When it promises action for performance.

Example: "First 10 customers get a free phone." (Unilateral offer).

Key Concepts

• Valid Contract: Offer + Acceptance + Consideration + Capacity + Free Consent + Lawful Object.
• Impossibility: Voids contracts if performance is impossible at formation.
• Legal Intent: Business = presumed; Social = no intent.
• Invitation to Treat: Not an offer (e.g., ads, displays).
• Unilateral Offer: Advertisement becomes an offer if it specifies terms (e.g., rewards).

FAQs

Q: Can a minor enter a contract?

A: No. Minors lack legal capacity (voidable at their option).

Q: Is an online product listing an offer?

A: No. It’s an invitation to treat. The buyer makes the offer at checkout.