BUSINESS LAW QUESTIONS, ESSAYS,
AND EXPLAINED ANSWERS
Who is Unpaid Seller? What are his rights?
Unpaid seller may refer to a seller who has not been paid for goods that he has delivered. If the
seller can demonstrate that he has done everything in his power to collect payment, he will be
protected by law against any damages or other losses. Such protection helps prevent a business
from losing its financing and prevents consumers from having to settle large unpaid debts with
their banks and other creditors. However, if the business provided faulty products or services, it
can still be held liable for any losses suffered by its customers.
What is offer? Explain the features of valid offer
An offer is an offer of a party to enter a contract with another party on the terms offered. A valid
offer is an offer which satisfies the following criteria:
Offer must be unambiguous and clearly communicated to the offeree (the person being offered the
contract) Offer must be capable of acceptance, that is, it must be accepted.
Offer must be open for acceptance by his offeree for some determined and reasonable time period.
The time frame may vary depending on the type of goods or services offered, although in most
cases it should not exceed three months.
What is mean by Bills of Exchange?
,A Bill of Exchange is a legal financial document that is used in international trade transactions. It
is a written order from one party (the drawer) to another (the drawee) to pay a specific amount of
money to a third party (the payee) at a future date or upon certain conditions.
Bills of exchange are commonly used as a means of payment in international trade transactions,
especially when the buyer and the seller are located in different countries and use different
currencies. The use of bills of exchange helps to reduce the risk of non-payment and ensures that
the payment is made according to agreed-upon terms.
Bills of exchange can be negotiable or non-negotiable, depending on whether they can be
transferred to a third party or not. They can also be discounted or endorsed, which means that the
payee can sell the bill to a third party at a discounted price or endorse it to another party to receive
payment.
Overall, bills of exchange are an important financial instrument for international trade and
commerce, helping to facilitate transactions and reduce payment risk.
What is Lien?
A lien is a legal claim that a person or entity has over the property of another person, usually to
secure a debt or obligation owed to them. The person or entity holding the lien is called the
lienholder, and the property subject to the lien is called the lien property.
The most common types of liens are:
Mortgage lien - When a person borrows money from a bank to purchase a property, the bank places
a
, mortgage lien on the property, which gives them the right to foreclose and sell the property if the
borrower fails to make payments.
Judgment lien - When a court orders a person to pay a debt or damages to another person, the
creditor can place a judgment lien on the debtor's property to secure payment.
Mechanic's lien - When a contractor or subcontractor performs work on a property but is not paid,
they can place a mechanic's lien on the property to secure payment.
Tax lien - When a person fails to pay their taxes, the government can place a tax lien on their
property to secure payment.
The existence of a lien on a property can make it difficult for the owner to sell or refinance the
property until the lien is satisfied. The lienholder generally has the right to foreclose or force a sale
of the property to satisfy the debt or obligation owed to them.
What is delivery of Goods? State the rules of delivery of goods.
Delivery of goods refers to the transfer of possession of goods from the seller to the buyer, as per
the terms of the contract of sale. The rules for delivery of goods are typically governed by the terms
of the contract of sale and the applicable laws.
The following are some general rules regarding delivery of goods:
1. Time and place of delivery - The contract of sale should specify the time and place of
delivery of goods. If not specified, delivery should be made at a reasonable time and place.
AND EXPLAINED ANSWERS
Who is Unpaid Seller? What are his rights?
Unpaid seller may refer to a seller who has not been paid for goods that he has delivered. If the
seller can demonstrate that he has done everything in his power to collect payment, he will be
protected by law against any damages or other losses. Such protection helps prevent a business
from losing its financing and prevents consumers from having to settle large unpaid debts with
their banks and other creditors. However, if the business provided faulty products or services, it
can still be held liable for any losses suffered by its customers.
What is offer? Explain the features of valid offer
An offer is an offer of a party to enter a contract with another party on the terms offered. A valid
offer is an offer which satisfies the following criteria:
Offer must be unambiguous and clearly communicated to the offeree (the person being offered the
contract) Offer must be capable of acceptance, that is, it must be accepted.
Offer must be open for acceptance by his offeree for some determined and reasonable time period.
The time frame may vary depending on the type of goods or services offered, although in most
cases it should not exceed three months.
What is mean by Bills of Exchange?
,A Bill of Exchange is a legal financial document that is used in international trade transactions. It
is a written order from one party (the drawer) to another (the drawee) to pay a specific amount of
money to a third party (the payee) at a future date or upon certain conditions.
Bills of exchange are commonly used as a means of payment in international trade transactions,
especially when the buyer and the seller are located in different countries and use different
currencies. The use of bills of exchange helps to reduce the risk of non-payment and ensures that
the payment is made according to agreed-upon terms.
Bills of exchange can be negotiable or non-negotiable, depending on whether they can be
transferred to a third party or not. They can also be discounted or endorsed, which means that the
payee can sell the bill to a third party at a discounted price or endorse it to another party to receive
payment.
Overall, bills of exchange are an important financial instrument for international trade and
commerce, helping to facilitate transactions and reduce payment risk.
What is Lien?
A lien is a legal claim that a person or entity has over the property of another person, usually to
secure a debt or obligation owed to them. The person or entity holding the lien is called the
lienholder, and the property subject to the lien is called the lien property.
The most common types of liens are:
Mortgage lien - When a person borrows money from a bank to purchase a property, the bank places
a
, mortgage lien on the property, which gives them the right to foreclose and sell the property if the
borrower fails to make payments.
Judgment lien - When a court orders a person to pay a debt or damages to another person, the
creditor can place a judgment lien on the debtor's property to secure payment.
Mechanic's lien - When a contractor or subcontractor performs work on a property but is not paid,
they can place a mechanic's lien on the property to secure payment.
Tax lien - When a person fails to pay their taxes, the government can place a tax lien on their
property to secure payment.
The existence of a lien on a property can make it difficult for the owner to sell or refinance the
property until the lien is satisfied. The lienholder generally has the right to foreclose or force a sale
of the property to satisfy the debt or obligation owed to them.
What is delivery of Goods? State the rules of delivery of goods.
Delivery of goods refers to the transfer of possession of goods from the seller to the buyer, as per
the terms of the contract of sale. The rules for delivery of goods are typically governed by the terms
of the contract of sale and the applicable laws.
The following are some general rules regarding delivery of goods:
1. Time and place of delivery - The contract of sale should specify the time and place of
delivery of goods. If not specified, delivery should be made at a reasonable time and place.
