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 key principles of the Contract Act 1872, including offer and acceptance, free consent, void agreements, and enforceable contracts—topics that are critical for future business leaders, entrepreneurs, and managers.

For DIU BBA students, practicing past quiz and exam questions is one of the most effective ways to master these concepts. This solved Business Law Quiz 1 (Summer 2026) provides step-by-step explanations for each question, helping you understand not just the what, but the why behind legal principles. Whether you're preparing for your quiz, midterm, or final exam, this guide ensures you grasp the essentials of contract law in Bangladesh.

Exam Overview & Mark Distribution

This Quiz 1 for 0421-215 Business Law (Summer 2026) tests your understanding of core contract law concepts under the Contract Act 1872. The quiz consists of 4 questions, each targeting different Course Learning Outcomes (CLOs) and cognitive levels (from definition to application and analysis). Here’s the mark distribution:

• Question 1 (2 marks): Define two terms from Section 2 of the Contract Act 1872 with examples.
• Question 2 (1 mark): Explain "free consent" and the impact of coercion/undue influence.
• Question 3 (1 mark): Apply essential elements of a valid contract to a real-world scenario.
• Question 4 (1 mark): Analyze void, voidable, and illegal agreements with legal consequences.

Solved Questions

Question 1: Define any two of the following terms according to Section 2 of the Contract Act 1872 with two examples.

(i) Proposal (offer) – Section 2(a) | (ii) Acceptance – Section 2(b) | (iii) Agreement – Section 2(e) | (iv) Contract – Section 2(h)

Answer (Choose Two Terms):

(i) Proposal (Offer) – Section 2(a)

• Definition: According to Section 2(a) of the Contract Act 1872, a proposal (or offer) is when one person signifies to another their willingness to do (or abstain from doing) something with the intention of obtaining the other person’s assent.
• Key Points:

- Must be communicated to the offeree.

- Must indicate an intention to create a legal relationship.

- Can be express (written/spoken) or implied (by conduct).

• Examples:

1. Express Offer: A shopkeeper displays a sign: "Laptop for sale: Tk. 50,000." This is an offer to sell the laptop at the stated price.

2. Implied Offer: A taxi driver stopping at a passenger’s signal implies an offer to provide a ride for a fare.

(ii) Acceptance – Section 2(b)

• Definition: Section 2(b) defines acceptance as when the person to whom the proposal is made signifies their assent to it. The acceptance must be absolute and unconditional.
• Key Points:

- Must be communicated to the offeror.

- Must mirror the terms of the offer (no modifications).

- Can be revoked before communication of acceptance.

• Examples:

1. Verbal Acceptance: If A offers to sell their bike to B for Tk. 20,000 and B says, "I accept," this is a valid acceptance.

2. Acceptance by Conduct: If a customer picks up an item in a supermarket and pays at the counter, their conduct implies acceptance of the shop’s offer to sell.

(iii) Agreement – Section 2(e)

• Definition: Section 2(e) states that an agreement is every promise and every set of promises forming consideration for each other. In simpler terms, it’s a proposal + acceptance.
• Key Points:

- Not all agreements are contracts (only those with legal enforceability).

- Requires mutual consent and consideration.

• Examples:

1. Social Agreement: A promises to take B to a movie. This is an agreement but not a contract (no legal obligation).

2. Business Agreement: A agrees to sell 100 shirts to B for Tk. 10,000. This is an agreement that can become a contract if other essentials (like free consent) are met.

(iv) Contract – Section 2(h)

• Definition: Section 2(h) defines a contract as an agreement enforceable by law. It must fulfill all essential elements (offer, acceptance, consideration, free consent, etc.).
• Key Points:

- Must create legal obligations.

- Can be written, oral, or implied.

• Examples:

1. Written Contract: A signed employment agreement between a company and an employee.

2. Oral Contract: A verbal agreement to sell a used phone, where the buyer pays and the seller hands over the phone.

**Question 2: