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BLST2BSL - Introduction To Business Law And Ethics

   

Added on  2020-02-24

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BLST2BSL Introduction to Business Lawand Ethics [Pick the date]STUDENT IDTotal Word - 1500

Question 1 Issue The central issue is to determine whether the gluten free almond flour is considered to be a termfor the enacted contract or not. Rule When the two parties’ i.e. offeror and offeree are negotiating the enactment of contract, then thestatements represented by the parties in this pre-contractual stage would be called as terms of thecontract. Terms is considered to be an essential part of contract because the decision of forming acontract depends on accuracy of these statements. Importance of terms can be viewed from thefact that if the statement (term) which was cited by one party to another serves as basis forenacting a contact and it is found to be incorrect, then in such cases the innocent party has theright to go back to pre-contractual stage and to sue the other party for breaching the underlyingterm1. In such cases, the innocent party can recover the damages. Hence, it is pivotal todetermine that in which cases the statement would be classified as term for the contract.Imperativeness of statement When the decision of enacting a contract is based on the correctness of the cited statement, thenit would be considered as term of contract. The testimony in this regards is highlighted in theBannerman v White2case. Timing 1Michael Lambiris, Laura Griffin, First Principle of Business Law (Oxford University Press, 9th ed, 2016) 212.2Bannerman v White (1861) CB (NS) 8441

When the time lag between stating the statement by one party and decision making regardingenacting the contract of another party is very minimal, then in such cases the statement would becategorized as a term. This is evident from the decision announced in Routledge v McKay3case.Competency/ requisite knowledge of party According to the judgment of Harling v Eddy4case, it has beenfound that the party must beenough capable to check the accuracy of the statement. This is also evident from Oscar Chess vWilliams5case.Form of the statement The honorable court would take a note of whether the statement is extended through oral orwritten mode. It is because, in case of written form, the statements which are not mentioned inthe written form would not be considered as terms. The decision in the Birch v Paramount6Estates case is the testimony of this. Application It is apparent from the case facts that Mikaela is running a cake shop and purchases the necessaryingredients from Tower Flours. Mikaela wanted to purchase gluten free almond flour from Tower Flour. Rickey therepresentative of Tower Flours was discussing with Mikaela and said that their almond flour isgluten free. Mikaela agreed to purchase 40kg of almond flour from them. It is fair to conclude3Routledge v McKay [1954] 1WLR 61154Harling v Eddy [1951] 2KB 7395Oscar Chess v Williams [1957] 1 All ER 3256Birch v Paramount Estate (1956) 1672

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