DISCHARGE OF CONTRACTS Discharge of contracts implies a termination of the contractual agreement and the contract obligations come to an end. Discharge by performance Discharge by breach Discharge by performance is where all parties to a contract have fulfilled their part of the terms to the contract agreement, so all primary obligations will cease. Discharge … Read More

REMEDIES FOR BREACH OF CONTRACT Remedies for breach of contract include: ·        Action for price ·        Action for damages Action for price: Where there has been a breach of a contract of sale, the seller can sue the buyer for the price of the goods. Action for damages: Where there has been a breach of … Read More

WHAT ARE PRE-INCORPORATION CONTRACTS? These are contracts entered into by a third party on behalf of a company which has not yet been formed. A pre-incorporation contract is binding on the third party who is acting on behalf of the unformed company. ·        A pre-incorporation contract is a contract entered into on behalf of a company … Read More

WHAT ARE THE TYPES OF CONTRACTS? There are different types of contracts and these include: ·        Void contracts       Contract that cannot be enforced by law because it involves an illegal act or an agreement which is impossible to execute ·        Voidable contracts       Contract that is valid but can be … Read More

WHAT ARE THE ELEMENTS OF A CONTRACT? For a contract to be established, the following have to be existing: ·        Offer and acceptance (an agreement) ·        Consideration ·        Intention to create legal relations ·        Capacity OFFER: A definite expression of willingness to be held accountable on specified terms without any further changes to the agreed … Read More

  WHAT ARE THE FINANCIAL STATEMENTS IN ACCOUNTS? Transcending from the trial balance, the financial statements will need to be prepared using the closing balances derived from the trial balance. The two main financial statements are the: ·        Statement of profit or loss (profit or loss account) and the ·        Statement of financial position (balance … Read More

WHAT IS THE ENTITY CONCEPT? This is where a business is usually seen and treated as a separate party from the business; so, the records of the business must be kept separate from the personal records of the owner of the business. The entity concept states that business transactions must be separately recorded from those … Read More