Business Law: Validity of Contract and Consumer Guarantees

BUISNESS LAW
Victoria University
Business Law
Semester 1, 2019
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BUISNESS LAW
Contents
Question 1.................................................................................................................. 3
Issue........................................................................................................................ 3
Rule......................................................................................................................... 3
Application.............................................................................................................. 4
Conclusion............................................................................................................... 4
Terms and representations..................................................................................... 5
Collateral contract................................................................................................... 5
Conditions and warranties....................................................................................... 5
Question 2.................................................................................................................. 6
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BUISNESS LAW
Question 1
(a)
Issue: on the basis of the facts that have been provided in this scenario, the issue arises if the
agreement created between Vincenzo and Scenic Views can be considered as legally enforceable
contract. In order to deal with this issue, the elements that have to be present in case of a valid
contract need to be examined.
Rule: there are certain elements, which should be necessarily present in an agreement so that the
agreement becomes enforceable under the law or in other words, it is a valid contract. These
elements can be described as follows:
Offer and acceptance: in this context an offer is an open call that has been made to the person
who is willing to accept the promise made by the offeror. Usually an offer is made regarding
products and services. It can be said that an offer has been accepted when the other party agrees
that it will be bound by the terms of the agreement and has provided consideration. Therefore,
offer can be described as the promise made by the offeror to the other party, called the offeree.
Intention: the parties should also have the intention that there will be legally bound by that of the
contract.1 In this way, this intention should also be present on part of the parties for the formation
of a legally enforceable agreement.
Consideration: the law of contract provides that consideration is the bargain that is present in the
form of exchange of value among the parties. On the other hand, if consideration is not present,
such an agreement is not enforced by the law. Therefore, such agreement is voidable. However,
certain exceptions are present to the general rule. In this context, the exchange of value has been
1 Antoine Braci, "Contract Law: An Introduction To The English Law Of Contract For The Civil
Lawyer" (2015) 26(3)
King's Law Journal.
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