Mercantile Law and Fundamentals of Economics

These flashcards cover key definitions, principles, and distinctions related to Mercantile Law and contract law, useful for exam preparation.

What is Mercantile Law?

Mercantile Law is defined as the law concerning trade, industry, and commerce, regulating commercial activities and ensuring orderly conduct.

What are the essential characteristics of law?

1) Imposed by the state, 2) Applies to all equally, 3) Maintains order and security, 4) Ignorance of law is no excuse, 5) Violation leads to punishment.

What differentiates Substantive Law from Procedural Law?

Substantive law regulates rights and duties, while procedural law prescribes how rights and duties are enforced.

What is required for a valid contract?

A valid contract must have a valid offer, acceptance, consideration, legal capacity, lawful object, and free consent.

What is the difference between a General Offer and a Specific Offer?

A General Offer is made to the public at large, while a Specific Offer is made to a particular individual or group.

Define Consideration in contract law.

Consideration is the value exchanged in a contract, can be an act, abstinence, or a promise made by one party to another.

What are the modes of revocation of an offer?

1) By notice, 2) By expiry of stipulated time, 3) By counter-offer, 4) By rejection, 5) By the death or insanity of the offeror or offeree.

Who is considered a minor under the contract law?

A minor is generally a person under the age of 18 who lacks the capacity to enter into a binding contract.

Explain the term 'void-ab-initio'.

Void-ab-initio refers to an agreement that is not valid from the outset, meaning it cannot be enforced because it lacked proper formation.

What is the requirement for consideration according to the law?

Consideration must be lawful, real, not illusory, and can be past, present, or future.