Business & Commercial Laws
Commercial law governs the rights and obligations of parties in business transactions. Core areas include contract law (offer, acceptance, consideration, intention, capacity), the sale of goods (transfer of title, conditions and warranties, implied terms), agency (principal–agent relationships), and negotiable instruments. Candidates should also know the essentials of business organisations and basic regulatory obligations.
Traps to watch
- Confusing an invitation to treat (e.g., a price display) with an offer.
- Forgetting that consideration must be sufficient but need not be adequate.
- Missing the distinction between a condition (breach allows termination) and a warranty (breach allows damages only).
- Assuming all agreements are enforceable - intention to create legal relations and capacity matter.
Worked example
A shop displays a laptop at 500. A customer offers 450; the shop accepts. The display is an invitation to treat, the customer's 450 is the offer, and the shop's acceptance forms a binding contract at 450. If the shop had instead advertised a unilateral reward, the performance of the act would constitute acceptance. Rule of thumb: offer + acceptance + consideration + intention = enforceable contract; identify each element in sequence.
Key distinction
A breach of condition entitles the innocent party to reject goods and claim damages; a breach of warranty entitles damages only.