0421-215 Quiz Solved Questions & Study Guide (Summer 2026)

0421-215 Business Law Quiz 1 Solved Questions — Semester Summer 2026 (DIU BBA)

Introduction

Business Law (Course Code: 0421-215) is a foundational subject in the BBA program at Daffodil International University (DIU), designed to equip students with essential legal knowledge for the corporate world. This course covers critical topics such as contract formation, legal relations, lawful consideration, and the mirror image rule—all of which are vital for future business leaders, entrepreneurs, and managers in Bangladesh.

For DIU BBA students, mastering these concepts is not just about passing exams; it’s about developing the ability to navigate real-world business scenarios legally and ethically. Practicing past quiz and exam questions is one of the most effective ways to reinforce learning, identify knowledge gaps, and improve performance. This solved guide for Business Law Quiz 1 (Summer 2026) provides step-by-step explanations, practical examples, and clear reasoning to help you understand and apply legal principles confidently.

Whether you're preparing for your upcoming quiz, midterm, or final exam, this resource is tailored to support your success in 0421-215 Business Law at DIU.

Exam Overview & Mark Distribution

This Quiz 1 for Business Law (0421-215) in the Summer 2026 semester at DIU covers core contract law principles. The quiz is worth 5 marks and assesses four key learning outcomes (CLOs) at different cognitive levels:

• Question 1 (1.5 marks): Basic contract formation chain and definitions
• Question 2 (1 mark): Intention to create legal relations
• Question 3 (1.5 marks): Lawful object and lawful consideration
• Question 4 (1 mark): Mirror image rule and contract acceptance

Solved Questions

### Question 1: Describe the basic chain by which an offer becomes a contract and state the meaning of each of the following in one or two lines:

(a) valid contract, (b) void agreement, (c) voidable contract, (d) illegal contract.

Solution Steps:

• Chain from Offer to Contract:

1. Offer: One party (offeror) proposes definite terms to another (offeree).

2. Acceptance: The offeree agrees to the exact terms without modification.

3. Consideration: Something of value (money, goods, services) is exchanged.

4. Intention to Create Legal Relations: Both parties intend the agreement to be legally binding.

5. Capacity: Both parties are legally competent (e.g., of sound mind, of legal age).

6. Free Consent: Agreement is made without coercion, undue influence, fraud, or misrepresentation.

7. Lawful Object and Consideration: The purpose and exchange must be legal.

8. Certainty and Possibility of Performance: Terms must be clear and capable of being fulfilled.

• Definitions:

- (a) Valid Contract: A legally enforceable agreement that meets all essential elements (offer, acceptance, consideration, intention, capacity, free consent, lawful object). Example: A signed employment contract.

- (b) Void Agreement: An agreement that is not legally enforceable from the beginning due to missing essential elements (e.g., illegal purpose, lack of capacity). It has no legal effect. Example: A contract to sell illegal drugs.

- (c) Voidable Contract: A valid contract that can be canceled by one party due to defects like misrepresentation, undue influence, or coercion. Until canceled, it remains enforceable. Example: A contract signed under duress.

- (d) Illegal Contract: An agreement that involves an unlawful object or consideration, making it void and unenforceable by law. Courts will not assist either party. Example: A contract to commit fraud.

Final Answer:

The chain from offer to contract involves offer → acceptance → consideration → intention → capacity → free consent → lawful object → certainty. A valid contract is enforceable; a void agreement is invalid from the start; a voidable contract can be canceled by one party; an illegal contract is void and unenforceable.

### Question 2: Explain the concept of “Intention to create legal relations.” In your answer, give one commercial example where intention is presumed and one social/family example where it is usually not presumed.

Solution Steps:

• Concept of Intention to Create Legal Relations:

This refers to the mutual understanding between parties that their agreement is legally binding and enforceable in court. It is a key element in contract formation.

• Presumption in Commercial Agreements:

In business or commercial settings, the law presumes that parties intend to create legal relations. This means agreements are legally binding unless proven otherwise.

• Example Where Intention is Presumed:

- Commercial Example: A company (ABC Ltd.) signs a contract with a supplier to purchase 1,000 units of raw material at Tk. 500 per unit. Both parties intend this agreement to be legally binding. If the supplier fails to deliver, ABC Ltd. can sue for breach of contract.

• Presumption in Social/Family Agreements:

In social, domestic, or family contexts, the law presumes that parties do not intend to create legal relations. These agreements are generally not enforceable in court.

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