Business and Corporations Law

BUSINESS AND CORPORATIONS LAW
STUDENT ID:
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BUSINESS AND CORPORATIONS LAW
Issues
The objective is to offer Dan legal advice pertaining to following legal issues.
1) Is there a legally binding contract between Mary and Jane for the sale of 2002 Honda
Jazz?
2) Has a enforceable contract enacted between Dan and Michael for the sale of 2015 Toyota
CX truck?
3) Does a legal contract exist between Dan and Gordon for the sale of truck?
4) Has a contract been enacted between Dan and Edgar for the sale of 2014 Holden
Statesman for a consideration of $ 10,000?
Law
1) At times, a legal agreement is formed based on mistake. This may be common mistake,
mutual mistake or unilateral mistake. A type of mistake in which both the parties (i.e.
offeror and offeree) have made a mistake is known as mutual mistake. This typically
happens when the contracting parties were referring to different things during the contract
enactment. A relevant case law in this regards is Raffles v Wichelhaus (1864) 2 Hurl & C
906. In this case, there was misunderstanding with regards to the cotton that the
contracting parties were referring to owing to which the contract was held as void (Carter,
2016).
2) One of modes of communication used for agreement is through postal mail. In this mode
of communication, the offer sent by offeror would become valid only when the same is
received by offeree. The offeree is also expected to express his/her acceptance of the offer
by communicating through mail. The acceptance would become effective at the precise
moment the acceptance is put into post. The date of delivery of the acceptance letter to the
offeror does not hold any significance. This has been highlighted in the Adams v Lindsell
(1818) 106 ER 250 case (Gibson & Fraser, 2014).
3) A type of mistake in which one of the parties is mistaken while the other is not mistaken is
known as unilateral mistake. As highlighted in Cundy v. Lindsay (1878) 3 App. Cas. 459,
if the other party is aware of the mistake by a party, then the mistaken party should be
made aware by the other party (Carter, 2016). However, special rules tend to apply in
cases where a written document has been mistakenly signed by a given party. This defence