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BLST2BSL Introduction to Business Law

   

Added on  2020-03-01

9 Pages1805 Words70 Views
Running Head: Law 1Law

Law2Answer 1Issue:Whether Gluten free almond flour can be considered as term of contract between Mikaela andTower Flours?Law:Generally, rights and liabilities of the parties to the contract are considered by the terms of the contract. Terms are divided into two parts that are express terms and implied terms. Express terms are those terms which are stated by the parties either in written form or in oral form. For the purpose of constituting the term of the contract, it is necessary that statement made by theparty must intend to be promissory in nature. Court considered the element intention to create legal relation, and in this context intention is determined on objective basis. In other words, whether though made by the reasonable person was intended in those situations (ACL, 2017)?This can be understood through case law Ellul and Ellul v Oakes. In this case, Court stated that if representation was made by one party under the contract for the purpose of inducing the other party to enter into contract and actually induced the other party to enter into contract, then it was considered as prima facie evidence for treating that representation as the term of the contract. Therefore, if any representation made by one party induces the other party to enter into contractand parties has intention to create legal relations then such representation is considered as termof the contract.

Law3Application:In the present case, Mikaela specifically asked about the gluten free almond flour, and Rickyreplied yes to her. In this both the parties has intention to create legal relations and representationmade by Ricky induce the Mikaela to enter into contract. Therefore, Gluten free almond flourcan be considered as term of contract. Conclusion:In this case, Gluten free almond flour can be considered as term of contract between Mikaela andTower Flours. Answer 2Issue:Whether gluten free cake is the implied term in the contract between Dan and Jacob withMikaela?Law:Implied terms are considered as those terms which are implied by law in the contract, but theseterms are not discussed by the parties or referred in the contract. These terms are generallyimplied by common law or by statute. Common law implied the terms on the basis of actual and presumed intention of the parties underthe contract, and such terms generally give business efficacy to the contract which may be resultfrom the transactions between the parties. This can be understood through case law Codelfa

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