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Business and Corporation Law : Assignment (Doc)

   

Added on  2021-06-16

14 Pages3543 Words44 Views
Running head: BUSINESS AND CORPORATION LAWContract LawName of the StudentName of the UniversityAuthor Note

1BUSINESS AND CORPORATION LAWTable of ContentsANSWER TO QUESTION 1:.........................................................................................................2Part (a).........................................................................................................................................2Issue:........................................................................................................................................2Rule:.........................................................................................................................................2Application:.............................................................................................................................3Conclusion:..............................................................................................................................3Part (b).........................................................................................................................................4Issue:........................................................................................................................................4Rule:.........................................................................................................................................4Application:.............................................................................................................................4Conclusion:..............................................................................................................................5Answer to question 2.......................................................................................................................5Issue:............................................................................................................................................5Rules:...........................................................................................................................................6Issue (a)....................................................................................................................................6Issue (b)...................................................................................................................................7Issue (c)....................................................................................................................................8Answer to question 3.....................................................................................................................10Reference:......................................................................................................................................13

2BUSINESS AND CORPORATION LAWANSWER TO QUESTION 1:Part (a)Issue:The main issue of the case is to determine the fact whether the contract for sale of Gold isenforceable or not.Rule:According to Sudbrook Trading Estate v. Eggleton [1983] AC 444, an offer is awillingness expressed by a person regarding a subject. When the person to whom the offer hasbeen made accepts the offer, the same could be regarded as acceptance. Both the parties shouldhave the intention to be binding them legally. Further, it has been observed in Harvey v Facey[1893] AC 552 that an offer should be complete in nature. It is a general rule of contract that anacceptance can only be made through direct communication. A contract can be fulfilled once theoffer has been accepted. However, there are certain exceptions to this rule such as postal rule. InHenthorn v Fraser (1892),it has been held that an offer will be treated as accepted when theperson to whom the contract had been made post his consent letter. According to the case, it isnot necessary whether the person who made the offer has received the letter or not. This rule hasbeen supported in Byrne v Van Tienhoven(1880) 5 CPD 344. The postal rule has beenintroduced in the case of Adam v Lindsell [1818] B & Ald 681.

3BUSINESS AND CORPORATION LAWApplication:The subject matter of the case is based on the postal rules of contract. Contract is alegally enforceable agreement that exists in between two parties. There are certain rulesmentioned for making a contract valid in nature. The most important element of contract is offerand acceptance. In the present case, it has been observed that Susan has made an offer regardingselling the gold to Terry on 27 January and the same offer has been accepted by Terry and he hadposted the acceptance letter on that day. Therefore, according to the case of Adam’s case, it canbe stated that the offer has been accepted successfully. However, it has been observed that Susanhad cancelled the offer on 30 January. According to the general provision of postal rule, it can bestated that offer could be revoked only when the same made before the acceptance letter has beenposted. In this case, it has been observed that Susan had revoked the offer after the consent letterhas been posted. It has been observed in this case that an offer can be treated as validly acceptedwhen consent letter has been posted by the person. Therefore, three elements can be observed incase of postal rule such as:Until the offer letter has not been received by the person to whom the offer has beenmade could not be effective in nature (Jacques & Co v McLean[1880] 5 QBD 346);Acceptance will be effective as soon the consent of the person has been posted;Under the postal rule, the offer could be revoked before the acceptance letter regardingthe previous offer has been posted.Conclusion:Therefore, it can be stated that the contract for sale of Gold is enforceable.

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