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(Solved) Business and Company Law: Assignment

   

Added on  2021-06-17

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1ContentsSolution 1...................................................................................................................................2A.................................................................................................................................................2Issue........................................................................................................................................2Applicable law........................................................................................................................2Application of Law.................................................................................................................3Conclusion..............................................................................................................................4B.................................................................................................................................................4Issue........................................................................................................................................4Applicable law........................................................................................................................4Application of Law.................................................................................................................5Conclusion..............................................................................................................................6Solution 2...................................................................................................................................6Reference List............................................................................................................................81

2Solution 1AIssueCan Magda and Avinash are in contractual relationship?Applicable lawIn Australia, an agreement has the forcibility of law when it is supported by consideration bycapable parties who have intention to abide by the agreement. Such agreement which hasforcibility of law are called contract. .1In any contract formation there are requirements of few essentials. A brief analysis of thesame are submitted herein below.An agreement –An agreement is made when a valid offer by an offeror is correspond with avalid acceptance by an offeree.When any kind of statement, either oral or written, is communicated by the offeror to theofferee wherein the offer intends that the offeree will comply with the terms of the statementthen it is an act called offer and is held in Carlill v Carbolic Smoke Ball Co2. An offer mustreach to the notice of the offeree to make it valid. In Byrne v Van Tienhoven3 it was submittedthat any offer can be revoked provided the same is not approved by the offeree. Further, if theoffer is kept open for a certain period of time then the offer stands revoked after the lapse oftime and is held in Manchester Diocesan Council (1970)Now, there is another concept in law called invitation to offer. Unlike offer, in invitationoffers are invited by the inviter. An inviter with the help of auctions, advertisement, display,tenders etc, make invitations upon which the general public (offeror) can make offers to theinviter (offeree). In Partridge v Crittenden4, an advertisement was held to be an invitationand not offers. When an offer is made for certain period of time and which is open to the offeree to acceptthe same within such time duration then as per Errington v ErringtonWoods5, it is an openoffer and it must be supported with some benefit to make it valid. Otherwise, the offeror hasthe option to revoke the offer before acceptance. 1Hugh Collins. (2003). The Law of Contract. Cambridge University Press.2Carlill v Carbolic Smoke Ball Co [1893]..3Byrne v Van Tienhoven (1880).4Partridge v Crittenden[1968].5Errington v ErringtonWoods [1952] 1 KB 2902

3Now, once an offer is made, it is very necessary that the same must be confirmed or accepted.When the offeree to whom the offer is made gave his approval to the terms of the offer than itis an acceptance in law. The terms of the offer and the acceptance are the mirror image ofeach other.If the offeree does not accept the offer but brings in certain changes before confirming theoffer then it is counter offer. As per Hyde v Wrench6, the counter offer has the capacity toterminate the offer. The only offer that is left is the counter offer which must be approved inorder to make a binding agreement.This agreement must be supported with:Consideration- In Combe v Combe[1951]7 it was held that anything which has some value inlaw and which are exchanged amid the offeror and the offeree so that the offer andacceptance has enforceability in law, then, it is consideration. Legal intention –In Jones v Padavatton[1969]8 it was held that the legal intention must bepresent when the offer and acceptance is made.Capacity of the parties – in Nash v Inman [1908]9 it was held that the soundness of partiesand their majority age is required for contract formation. The law is now applied to the facts of the case.Application of LawMagda acts as a photographer. The prints are available for sale at her studio and over herwebsite. Photographs of the work are also displayed at the website and the work itself isplaced at the studio. The website has an advertisement which states that portraits are availableand one of the portrait of Paris Stilton can be bought at $2000. Applying the law in Partridge v Crittenden[1968], the advertisement on the website is aninvitation and thus no offer is made by Magda. Interested parties must make an offer. Avinash on 19th February makes an offer @ 1600. This email of Avinash is an offer againstthe invitation of Magda. But, the offer of Avinash was rejected by Magda by quoting newprice @ 1800. So, as per Hyde v Wrench (1840), a new offer is made by Magda which is theonly valid offer left revoking all previous offers. This is no accepted by Avinash and wants the time till 21st February for confirmation. Thiswas approved by Magda. Since no consideration is provided by the Avinash to keep the offer6Hyde v Wrench(1840),7Combe v Combe[1951] 2 KB 215.8Jones v Padavatton[1969] 1 WLR 3289Nash v Inman[1908]3

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