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Assignment : Business and Corporation Law

   

Added on  2021-06-16

10 Pages2478 Words21 Views
Running head: BUSINESS AND CORPORATION LAWBusiness and Corporation LawName of the StudentName of the UniversityAuthor note

1BUSINESS AND CORPORATION LAWAnswer 1:(a)IssueThe related issue of this scenario states that whether an agreement exists within theparties forming the contract and if they have unanimously agreed on the conditions and termsof the contract. RuleAs per the Contract Law, a contract is formed when a party makes an offer to theother party. If the offer is accepted by the other party, then a valid contract will be formed.Therefore, a contract becomes enforceable in law when it consists of all the significantconstituents that make it a valid contract. For the formation of a contract, the contractingparties require offer, acceptance, capacity and consideration. However, the parties formingthe contract should have agreed on the terms and conditions unanimously. There must also belegal intention between the parties forming the contract. Without the presence of theseconstituents, a contract cannot be considered to be valid. A process of communication mustbe present in between the parties involving the elements mentioned above. The personmaking the offer is known as the offeree and the party accepting it is regarded as the offeree.Hence, a legal relationship should be present in the development in the contractualrelationship between the parties. Such a situation was observed in the case of Air GreatLakes Pty Ltd v KS Easter (Holdings) Pty Ltd [1989] 2 NSWLR 309. In this case, a validcontract was formed with the involvement of offer and acceptance. Therefore, there was acommencement of the contract between these two parties. There was communication betweenthe parties when the case was created as well as the legal intention.

2BUSINESS AND CORPORATION LAWFor the determination of validity of an offer, it should be accepted depending on thespecifications of the offer. There should not be any kind of alterations in the contract and if itis present then it will be known as a counter offer. This scenario was observed in the case ofBalfour v Balfour [1919] 2 KB 571. Any offer formed or created should not result in acounter-offer between the parties. Therefore, such kind of contract cannot be created.In the case of AGC (Advances) Ltd v McWhirter (1977) 1 BLR 9454 it was observedthat the individual who is making the offer should communicate it properly to the offeree.This results in the concept of invitation to treat. Therefore, such kind of a contract cannot beconsidered to be a valid contract. In the matter of Australian Woollen Mills Pty Ltd v TheCommonwealth (1954) 92 CLR 424 the Court held and decided that there was no validcontract between the parties. The offer that was made in the form of an advertisement wastreated to be an unilateral offer. ApplicationFrom the given facts of the case scenario, it was observed that the painting of Magdawas put up for sale in her own website. The case of Australian Woollen Mills Pty Ltd v TheCommonwealth had a similar scenario where the advertisement was not treated to be aninvitation to treat. Avinash wanted to purchase that painting and made an offer of $1600 on19th February. If the case of Air Great Lakes Pty Ltd v KS Easter (Holdings) Pty Ltd isapplied in this scenario then a valid offer was made by Avinash since it contained a legalintention to the contractual terms for the purpose of binding the parties. Thereafter, a counter-offer was formed or made by Avinash on 20th February. Thecounter-offer stated that there was a demand of an authenticity certificate. The certificatehowever, did not amount in paying the request for the required information and neither anykind of inquiry. The case mentioned above also stated that an offer was thereafter made

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