FACTUAL SITUATION Tapan was a dealer in mustard oil The Government of India by an order issued unde...........

Legal Reasoning Others

A contract is a legally enforceable agreement between two or more parties where each assumes a legal obligation that must be completed. Many aspects of daily life involve contracts, including buying property, applying for a car loan, signing employment-related paperwork, and agreeing to terms and conditions when buying products and services or using computer software.

Legal issues involving contracts arise most often when one party fails to perform the legal obligation it has agreed to do. When a party breaches a contract by failing to perform, the other party can often sue for money damages, or, in some limited cases, can ask the court to force the other party to perform as promised.

Contracts can also be the source of legal disputes when they are not written clearly. Parties who misunderstand the terms of their agreement may sue each other and have a court settle the argument. Additionally, when a company signs a contract and later goes out of business or is unable to fulfil its promises, the other party may have to pursue legal action in civil or bankruptcy court to obtain relief.

Contract – An agreement between two or more parties that creates in each party a duty to do or not do something, and the right to performance of the other party’s duty or a remedy for a breach.

Breach – Failure to perform an obligation created by a promise or contract, without justification or excuse.

Performance – The action or omission required to fulfil a promise or obligation.

Specific Performance – An equitable remedy that requires a breaching party to fulfil the exact terms of the contract; used when monetary damages are insufficient or inadequate, such as for the breach of a sale of real estate.

Offer – A proposal for an agreement that another party may accept upon receipt to form a legally binding contract.

Acceptance – An approval, often required to be in writing, of an offer that forms a legally binding contract.

Statute of Frauds – A state law that does not allow certain contracts to be enforced unless they are in writing.

: FACTUAL SITUATION: Tapan was a dealer in mustard oil. The Government of India by an order issued under the Essential Commodities Act, fixed the price of mustard oil, and also the quantity which a person can buy from the dealer. Tapan carried on his business under this order for a while, but he refused to pay sales tax on his sale transactions on the ground that these were not the contracts freely entered into by him.

Tapan would succeed because the price and quantity were not negotiated by him

Tapan would not succeed because free consent between the parties was there despite the restriction on price and quantity

He would succeed because the Government under the new order forced him to enter into contracts

Both (a) and (c)