Archive about 'Elements Of Business Laws'

Basic Understanding Of Contracts Uberrimae Fidei

Contract Uberrimae Fidei are contracts of absolute good faith where there is a duty to disclose all material facts which are in the knowledge of one party. Failure to disclose such information will render the contract voidable at the option of the other party.

Examples of Contract Uberrimae Fidei are as follows:

Contract [...]

Understand A Void Agreement, Voidable Agreement and An Illegal Agreement

Append below some basic understanding of the following terms:

 
A void agreement/contract is one
 
·        Which is destitute of all legal effects. In the eyes of law such an agreement is no agreement at all from its very inception.
·         A void agreement does not create any legal rights and obligations. It confers no rights on either [...]

Distinguish Between Liquidated Damages And Penalty

Liquidated damages and penalty share a common feature that both are payable on the occurrence of a breach of contract. The parties to a contract may provide in advance the amount of compensation payable in the case of failure to perform the contract. The sum so fixed may be either liquidated damages or penalty
However, [...]

Distinguish Between Indemnity And Guarantee

Append below some salient points pertaining to the difference/distinction between Indemnity And Guarantee:

Indemnity

Guarantee

Comprise only two parties- the indemnifier and the indemnity holder.

There are three parties namely the surety, principal debtor and the creditor

Liability of the indemnifier is primary

The liability of the surety is secondary. The surety is [...]

Understand the Difference Between Misrepresentation And Fraud

Sometimes the terms are used inter-changeable by readers, however, they are actually different. Append below a table on the salient point to distinguish the terms:

Fraud

Misrepresentation

Implies on intention to deceive, hence it is intentional or willful wrong.

Is an innocent wrong without any intention to deceive. The person making the statement believes it [...]