logo

BLST2BSL Introduction to Business Law And Ethics

   

Added on  2020-03-01

7 Pages1543 Words112 Views
Word Count: 1478
BLST2BSL Introduction to Business Law And Ethics_1
CASE STUDY2Question 1IssueThe key issue in this case revolves around the statement which was made by Mikaela to Towers flour regarding the almond flour to be gluten free, to be considered as the term of the contract. RuleA contract is a promise made between two parties, which give rise to certain responsibilities and duties. These are born from the contractual terms which represent what each party has to do. In case there is a failure to perform these terms, the liability is attracted under the contract law. Before a contract is formed, certain negotiations take place in a contract, which is known as puffsand which is not considered as terms of contract as there is an absence of an intention to be bound legally in such statements1. The key rule is that all the statements made before entering into the contract are simply presentations as the same is not reduced in written form in an agreement expressly. In Birch v Paramount Estates Ltd2was a case where the court stated that the oral statements could be considered as terms of enforceable contract given that it is crucial to make certain that the obligations of the parties are carried out as had been envisioned in the contract. Hence, the basic rules which have been formed provide that the statement which is made before formation of contract for considering them as the contractual term has to be based on the intentions of the parties. 1 Paul Latimer, Australian Business Law 2012 (CCH Australia Limited, 31st ed, 2012)2 (1856) 16 EG 396
BLST2BSL Introduction to Business Law And Ethics_2
CASE STUDY3Heilbut, Symons & Co v Buckleton3was a case where the intention of the party had to be looked keenly to see the presence of meeting of minds, i.e., consensus ad idem. The main reason for entering into the contract has to be the making of the statement. The same has been found in Bannerman v. White4 in which the court held that the statement has to induce the contracting party and that the decision has to be made only after conceding to the agreement which was based on the statement made. ApplicationIn the given case study, the statement made by Mikaela was made orally and it can be deemed as a contractual term on the basis of Birch v Paramount Estates Ltd as it is the key element of the contract. The intention of the parties which forms the agreements had to be considered where it was made very clear that the almond flour had to be gluten free and this was a key fact in the case. This term was clearly agreed by Tower flour on the basis of the prior request made by Mikaela and her informing that this was a preference for the majority of clients. This agreement would not have been made in case there was an absence of consensus ad idem regarding this term. Hence, it is very clear that due to the meeting of minds and the intention of the parties, the statement made here was a contractual term. Conclusion Hence, the statement which was made by Mikaela to Towers flour regarding the almond flour to be gluten free has to be considered as the term of the contract.3 [1913] AC 304 (1861) 10 CBNS 844
BLST2BSL Introduction to Business Law And Ethics_3

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
BLST2BSL - Introduction To Business Law And Ethics
|8
|1490
|112

BLST2BSL - Principle of Oral Contract in Business Law assignment
|6
|1363
|144

BLST2BSL Introduction to Business Law
|9
|1805
|70

North West Metropolitan Regional Hospital Board
|9
|1871
|18

Business Law and Ethics Common Law Assignment
|12
|2718
|137

The Almond Flavour in BP Refinery v Shire of Hastings (BP Refinery v Philips Electronique)
|6
|1329
|398