Legal Environment of Business Trial Questions and Answers

These flashcards cover key concepts and definitions from the legal environment of business, focusing on contract law, court systems, and related legal principles in Ghana.

Termination of an Offer

An offer can be terminated by rejection, revocation before acceptance, or lapse of time, but once accepted, it cannot be revoked.

Common Law of Ghana

Comprises the common law, doctrines of equity, and rules of customary law set by the Superior Court of Judicature.

Duress

Refers to coercion or threats used to compel someone into a contract, making it an external factor affecting contract validity.

Discharge of Contract

Parties can discharge a contract through mutual agreement, even without a judge.

Supreme Court of Ghana

The highest court in Ghana, with exclusive jurisdiction over constitutional matters and appellate functions.

Circuit Court's Jurisdiction

The Circuit Court is a lower court established by the Courts Act, 1993 (Act 459) and has specific jurisdiction limits.

Fundamental Breach

A breach is fundamental if it affects the core purpose of the contract.

Frustration of Contract

Occurs when unforeseen events render a contract impossible to perform without fault on either party.

Principal in Agency Relationship

The party giving authority for another to act on their behalf.

Ratification

The principal's approval of an agent’s unauthorized act, making it binding.

Sale of Goods Act, 1962

Governs transactions involving the sale of goods in Ghana.

Voidable Contracts

Contracts binding on minors unless repudiated during minority or a reasonable time after gaining majority.

Counteroffer

A response to an offer that introduces new terms, effectively rejecting the original offer.

Freedom of Contract

A principle allowing individuals to enter agreements, provided they are legal and the parties have capacity.

Caveat Emptor

A legal principle meaning 'let the buyer beware'; the buyer assumes the risk regarding the quality of goods.

Vitiating Factors

Elements making a contract invalid: misrepresentation, mistake, duress, undue influence, and fraud.

Specific Goods

Goods identified and agreed upon when the contract of sale is made.

Postal Rule

Acceptance of an offer is effective when the letter is posted, regardless of whether it is received.

Illegality in Contracts

Contracts involving illegal activities are void and unenforceable.

Consideration in Contract Law

Something of value exchanged between parties to create a valid contract.

Undue Influence

Unfair pressure from one party who has a position of trust over another, resulting in an unfair agreement.

Intention to Create Legal Relations

The intent of parties in an agreement to be legally bound by its terms.

Jurisdiction of District Courts

The jurisdiction of District Courts is geographically limited to their specific district.