Page 15 - DMGT407Corporate and Business Laws

Corporate and Business Laws

Notes (d) A unilateral contract is one wherein at the time the contract is concluded there is an
obligation to perform on the part of one party only.

Example: A makes payment for bus fare for his journey from Mumbai to Pune. He has
performed his promise. It is now for the transport company to perform its promise.

(e) A bilateral contract is one wherein there is an obligation on the part of both to do or
to refrain from doing a particular thing. In this sense, bilateral contracts are similar
to executory contracts.
Self Assessment

Fill in the blanks:
7. Contracts may be classified according to their validity as Valid, Voidable, Void
and…………………….

8. A ……………contract is one wherein at the time the contract is concluded there is an
obligation to perform on the part of one party only.

Caselet Linc Renews Contract with Shahrukh

inc Pen, a leading player in the branded pen industry, said it has renewed its brand
endorsement contract with film star Shahrukh Khan. Shahrukh has been the brand
Lambassador for Linc Pen for the past one year.
“We have renewed the contract with him (Shahrukh Khan) for another year. His association
with the brand has been very rewarding for us and has helped increase the brand visibility
and boosted our sales figures as well,” Linc Pen & Plastics Managing Director Mr Deepak
Jalan said here.
The company’s national sales have grown. This year sales are growing at 15 per cent as
compared to 7 per cent last year, he said. “Over the years, Linc is one of the most trusted
brands in the Indian writing pen industry and I am happy to be associated with the Linc
family,” the Bollywood actor said.

Source: thehindubusinessline.com

1.5 Proposal (or Offer) and Acceptance [Ss.3-9]

Offer is not only one of the essential elements of a contract but it is the basic building block also.
An offer is synonymous with proposal. The offeror or proposer expresses his willingness
“to do” or “not to do” (i.e., abstain from doing) something with a view to obtain acceptance of
the other party to such act or abstinence [s.2(a)]. Thus, there may be ‘positive’ or ‘negative’ acts
which the offeror is willing to do.

Examples:
1. Anna offers to sell her a book to Begum. Anna is making an offer to do something,
i.e., to sell her a book. It is a positive act on the part of the offeror.

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