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Why is contract law necessary in business?

Answer and explanation

Correct answer: To give legal validity to agreements and make them enforceable

Contract law makes agreements between business parties legally enforceable. It defines each party’s rights and obligations and provides remedies if the contract is breached. Minimum wages are governed by labour law, while tax rates are governed by tax law. Exam tip: associate contract law with valid and enforceable business agreements.

Related tags

Business EnvironmentLegal EnvironmentContract LawCommercial AgreementsClass 12Business StudiesClass 12 Mcq

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