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Which law helps understand validity of contracts in business?

Answer and explanation

Correct answer: Indian Contract Act

The direct answer is A, the Indian Contract Act. A contract is a legally enforceable agreement, so this law helps a business understand when an agreement is valid and what obligations the parties have. Start from the basic idea: two or more parties make a promise; the law checks matters such as offer, acceptance, lawful consideration, free consent, competent parties, and a lawful object; when the requirements are satisfied, the agreement can become an enforceable contract. Option A is correct because the Indian Contract Act deals directly with contracts and their validity. Option B, the Environment Protection Act, deals with controlling pollution and protecting the environment, not with ordinary business agreements. Option C, the Competition Act, deals mainly with anti-competitive practices, abuse of dominance, and fair competition. Option D, trademark law, protects brand names, logos, and marks that identify goods or services; it does not generally decide whether every business agreement is valid. Therefore, connect the word contract with the Contract Act. Exam cue: agreement plus legal validity points to the Indian Contract Act.

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Business-EnvironmentLegal-EnvironmentClass-12Easy

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