BLO1105 Business Law || Assignment
Added on 2020-02-24
13 Pages3209 Words628 Views
BUSINESS LAW ASSIGNMENTStudent’s NameCourse IDDate
Student’s Surname 2Question 1a) Explanation of whether the parties had entered into a contractA contract can be defined as an agreement that is enforced by the law. In other words, contract can be presented as a set of promise or promises that are legally enforceable by the courtof justice. The Australian Contract Law represents the set of regulations that legally enforced promises that are made through free bargain between two different parties to form a legal relationship1. The first answer presents the case scenario between Lianne (Consumer) and Mary (Seller) to explain whether the parties have legally entered into a contract. Additionally, the answer discusses the elements of contract, important clauses for making a contract legal and different case examples in order to know whether both the parties have entered into a valid contract through email conversation or not.IssueIn the case of Lianne and Mary, it can be seen that Lianne wants to give a midyear party to his friends, for which she was searching for a party organizer. On the other hand, when she contacted Mary over email with all her requirements, she got a quote of $10,000 for 20 people to conduct the event. However, Lianne felt that the quote is too high and asked Mary for negotiation. Hence, Mary sent a counter offer of $9,500 which is valid for 7 days. But, Lianne did not reply over the offer which made the contract incomplete as she did not accept it within the valid period. 1 "Australian Contract Law | Julie Clarke", Australiancontractlaw.Com, last modified 2017, accessed September 2017, https://www.australiancontractlaw.com/law/formation.html.
Student’s Surname 3Later on, when Lianne again asked Mary for the same party on 20th June, the offer got invalid and Mary sent a new offer with increased cost at $10,000. This time Lianne accepted the offer, but her acceptance was not considered by Mary and she was unable to send a confirmation mail. However, within 30 minutes, Lianne changed her mind and said that she wants this deal to be off. During this period, Mary was unable to send a confirmation mail for the order and no contract or agreement was made between both the parties. RuleIt is important to understand several necessary elements to form a valid contract. The major elements of a valid contract include offer, acceptance, consideration, competency and capacity and written instrument in certain circumstance. Firstly, any one of the party must make an offer and the second party has the option to either reject the offer or accept it. In the case of rejection, the second party can send a negotiated offer and the first party has to accept it or send acounter offer2. An offer until and unless not accepted by both the parties is not considered as a valid contract. Furthermore, it is important to see whether both the parties have certain mutual consideration from the offer or not3. For instance, the buyer will be benefited by the product or service and in exchange the seller will receive the price for the product or service. Additionally, in order to form a valid contract, the both the parties must have competency and capacity to meetthe terms and conditions of the agreement. A contract made with a minor is not considered as a valid contract. Finally, in some cases the contract must be formed as a written document properlylegalised by the court to make it valid. A verbal contract in terms of sale and purchase of a product or service is not considered valid.2 Robert Duxbury, Contract Law (London: Sweet & Maxwell, 2015).3 Roger Halson, Contract Law (Harlow: Pearson, 2013).
Student’s Surname 4In order to make a contract valid through online conversation, it is important for the both the parties to confirm or accept the offer to make form a legally enforceable agreement4. In other words, the buyer needs to accept the order of the seller and the seller need to confirm whether theorder with all terms and conditions after the acceptance of the offer by the buyer. If the court case of Hyde V Wrench (1840) is considered, it can be seen that both the parties do not finally accept the offer or counter offer that makes the contract void5. In this case, it can be seen that the seller makes an offer of selling a land for $1,200. However, after the rejection of the offer by the buyer, the seller sends a counter offer for the same land at $1,000. At first the buyer rejects the offer and then again accepts it. Hence, it can be seen that the contract is invalid as none of the parties have finally accepted or send the confirmation of acceptance of the deal. In the same manner, the cases of Leicester Cirvuits Ltd Vs Coates Brother Plc (2002)6 and GHSP Inc Vs AB Electronic Ltd (2010)7 were also rejected by the court due to the failure of the formation of proper contract between the parties. ApplicationIn all the above cases, the both the parties do not accept or confirms the final acceptance in written format. The contract or agreement is not formed between the parties that makes the terms and conditions void and legally unenforceable. In the same manner, if the interpretation between both the parties is considered incorrect, still yet the contract is not formed as none of theparties have a written proof of acceptance of the offer and confirmation of the deal by the seller8. However, in the case of Lianne and Mary, it can be seen that the acceptance of the offer made by4 R. B Vermeesch and Kevin E Lindgren, Business Law Of Australia (Australia: LexisNexis Butterworths, 2015).5 Hyde V Wrench, Beav 334 (Rolls Court 1840).6 Leicester Circuits Ltd V Coates Brothers Plc, EWCA Civ 474 (2002).7 GHSP Inc V AB Electronic Ltd, EWHC 1828 (2010).8 Richard Taylor and Damian Taylor, Contract Law (Oxford: Oxford University Press, 2017).
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Law Assignment Valid Contractlg...
|10
|2401
|49
BLO1105 Business law question & answerlg...
|12
|2310
|154
BLO1105 Business Law- Commercial Contractslg...
|13
|3047
|155
Paper on Preliminary Agreementslg...
|12
|3160
|45
Law and Business Obligations | Assignmentlg...
|13
|2612
|33
Enforceable Contract between Simon and Julielg...
|6
|1792
|94