(Solved) Assignment of Commercial Law

   

Added on  2021-06-17

4 Pages720 Words32 Views
Running head: COMMERCIAL LAW0Commercial LawContract
(Solved) Assignment of Commercial Law_1
COMMERCIAL LAW1IssueIs a valid contract exists between Graham and Stuart given that they made it over thetelephone and can Graham cancel it?RuleA contract is referred to a legal agreement which creates a legal relationship between two ormore parties. A contract can be written or oral as long as certain essential elements arefulfilled by parties of the contract which include an offer, acceptance, valid consideration,mutual intention, the capacity of parties, and lawful subject matter (McKendrick, 2014). Inorder to create a contract, an offer must be given by a party to another for acceptance, and theparty must accept it without making changes in its terms. An offeror is the party making anoffer and offeree is the party to whom the offer is made. In Carlill v Carbolic Smoke Ball Co(1893) 1 QB 256 case, a judgement was given by the court that an offer must have thecapacity to bound offeror into a legal relationship if it is accepted by the offeree (Jones,2016). The acceptance of parties must be communicated, and it should be free from externalforces. A valid consideration is another requirement which is referred to the exchange ofpromises or money.In Thomas v Thomas (1842) 2 QB 851 case, it was held that a consideration is somethingwhich has a value in the eyes of the law. In Re McArdle (1951) Ch 669 case, the court heldthat past consideration is not valid and the consideration must be present (Turner, 2014). Theparties to a contract must have a mutual intention to bind themselves into terms of thecontract. In Jones v Padavatton (1969) 1 WLR 328 case, the court held that domesticagreement did not create a legal relationship because parties did not intend to enforce otherparties legally (Gulati, 2011). The parties to a contract must be competent to create a legalrelationship; incompetent parties include a minor, insane, intoxicated and insolvent person.The contract must have a lawful subject matter which means its subject cannot violate publicpolicy or prohibited by law such as a contract to kill.ApplicationIn the present case, Graham made a contract with Stuart through the telephone. A contractcan be oral or written as long as its parties fulfil the essential elements of a contract. Graham
(Solved) Assignment of Commercial Law_2

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