Business Law Assignment

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Business Law Assignment

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Question 1
With regard to the assessment of rules applicable in the international commercial agreements, the
relevance of party autonomy is included in the central legislative organ. The parties who deal
with arbitration possess certain standards of freedom as per the agreement. But they also possess
certain limitations. The basic principles of natural justice and equity bind them together. They
can in no means exceed these principles. The arbitration proceedings cannot be conducted in the
way they want to. They have to abide by the model law regarding the judicial and the quasi
judicial authorities. Thus, the relevance of the party autonomy is that, the parties have the powers
of selection in their own hands.
The parties have the freedom of drafting the tailor made contractual agreements to choose the
applicable laws and regulations and selecting the court which possesses the jurisdiction. The
party autonomy thus has the discretion of making customized agreements as per their needs and
the laws must not be in contravention to the agreement. The parties can select the courts under
which they want arbitration to take place.
Question 2
A letter of intent refers to a particular document which deals with one or more agreements
between two or more parties. This document requires the intention of the parties before such
agreement is made final. Such agreements can be regarding mergers or acquisitions, contracts
based on transactions, real estates, joint agreements, contracts regarding properties which include
lease or mortgage. A letter of intent is concise and unambiguous. It contains tables and the
parties are bound with this letter. The letter of intent is given by one party to another before the
signatures are put in the agreement. It has to be negotiated in a very careful manner. The parties
undertaking such agreement must secure both the parties for the perfect transaction.
In the course of negotiation in the international contract, a letter of intent thus implies a letter to
know the real intentions of the parties who live across the world. The implications of the letter of
intent in the international contracts is to permit the parties to pen down the primary conditions in
a quick manner before extending the resources upon specific contracts, making it the ultimate for
the approvals. It also implies that the parties would be negotiating in the manner of a merger or
of a joint venture. The letters of intent also provides security when the deal is cancelled in a