LW120 Principles of Business Law

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Contents
Solution 1.........................................................................................................................................2
Issue.............................................................................................................................................2
Law...............................................................................................................................................2
Application...................................................................................................................................2
Conclusion...................................................................................................................................3
Solution 2.........................................................................................................................................3
Issue.............................................................................................................................................3
Law...............................................................................................................................................3
Application...................................................................................................................................4
Conclusion...................................................................................................................................4
Solution 3.........................................................................................................................................4
Issue.............................................................................................................................................4
Law...............................................................................................................................................4
Application...................................................................................................................................5
Conclusion...................................................................................................................................5
Bibliography....................................................................................................................................6

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Solution 1
Issue
Whether Wanda can sue her parents for the enforcement of the promise to buy new clothes in
exchange of high distinction in unit exams?
Law
To establish a contract there are few contractual elements that must be made part of the contract
which includes an agreement (offer and acceptance), consideration, legal capacity and legal
intention. The combination of all the elements results in a valid legal enforceable contract amid
the parties. [ CITATION Bur18 \l 1033 ]
Every contract is initiated with the help of an offer which is accepted by an offeree resulting in
agreement and is held in [ CITATION Car9212 \l 1033 ]. It is necessary that when the promises are
made then the same must be made with legal intention. [ CITATION Car13 \l 1033 ]
Legal intention is one of the elements of contract. The parties to contract must have legal
intention as held in [ CITATION Air892 \l 1033 ]. Generally the parties who are in family
relationship does not hold legal intention as held in [ CITATION Bal1913 \l 1033 ] wherein the court
held that a husband and his wife are in family relationship and thus there is no legal intention that
exist amid the parties. likewise, in [ CITATION Jon695 \l 1033 ], it was held that the mother and the
daughter are in domestic relationship and thus there is no presence of legal intention amid the
parties.
Also, as per [ CITATION Ros233 \l 1033 ] the parties who are in commercial relationship holds legal
intention amid themselves making the promises amid them enforceable in law.
But, this presumption is not static and as held in [ CITATION Erm022 \l 1033 ], the parties who are
in family relationship hold legal intention if the same can be proved. Likewise, the parties who
are in commercial relationship does not hold legal intention if proved otherwise.
Also, a contract with minor is generally not enforceable and is void. But, if the contract is made
with the minor for necessity or for employment then the same is enforceable by minor and is
held in[ CITATION Nas084 \l 1033 ]. It is the minor who has the power to enforce the contract and
enforce the same in his favor on attaining majority.
Application
As per the facts, Mrs Wanda Rerr is not a major and is only 17 years old. She is completing her
business and marketing course in the local college. Her parents are concern that she had not
studied hard for the unit. Her parents promised her that if she will get a High distinction in her
unit then they will buy her clothes of $3000.

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It is submitted that both Wanda and her parents are in the relationship of family and are
domestically united. Thus, as per [ CITATION Bal1913 \l 1033 ]there cannot be any kind of
contractual relationship amid the two. It is presumed that there is absence of legal intention amid
them and thus there is no contractual relationship amid them.
But, if the parties who are in family relationship exchange promises with the legal intention to
abide by the same, then, such promises are enforceable in law as held in [ CITATION Erm022 \l
1033 ]
As stated, that based on the said promise, Wanda studied very hard and get high distinction in
her exams. Now, the parents cannot refuse to buy her new clothes. This is because the hard study
of Wanda is based on the promise made by her parents. Thus, the parties are willing to abide by
the promises that are exchanged amid them even though they are sharing family relationship.
Also, the contact that is made by the parents of Wanda is when she is a minor and the same is
made for her necessity. Thus, as per [ CITATION Nas084 \l 1033 ]Wanda has the right to sue her
parents and enforce the promises that are exchanged amid them.
Conclusion
Thus, Wanda can sue her parents for the enforcement of contract and persuade them to buy her
new clothes worth $ 3000. Since she a minor and the contract is made for her necessity, thus, the
contract is valid.
Solution 2
Issue
Whether Wanda can sue the seller for breach of contract?
Law
Any contract can come into existence when there is a valid offer made by the offeror which must
be accepted by the offeree. An offer is the communication of the intention of the offeror either
verbally or textually to the offeree. The offeree when affirms the terms that is communicated to
him without any variation then it is an acceptance in law and is held in [ CITATION Car9212 \l
1033 ]. Both offer and acceptance results in the formation of an agreement.
An invitation is different from an acceptance wherein the person making the invitation invites
offer from the respective person which when affirms by the inviter (offeree) results in binding
agreement amid the parties. An advertisement, display of goods at the shelf is not offers but are
invitation to treat and is held in [ CITATION Pha537 \l 1033 ].