Duties of Directors in Company Law - Assignment

Added on - 28 May 2020

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Running head:BUSINESS LAWBUSINESS LAWName of Student-Name of University-Author note-
1BUSINESS LAWTable of ContentsAnswer 1(a).....................................................................................................................................2Issue.............................................................................................................................................2Relevant law................................................................................................................................2Application..................................................................................................................................4Conclusion...................................................................................................................................5Answer 1(b).....................................................................................................................................5Issue.............................................................................................................................................5Relevant law................................................................................................................................5Application..................................................................................................................................7Conclusion...................................................................................................................................8Answer 2..........................................................................................................................................8Introduction..................................................................................................................................8Express terms...........................................................................................................................9Implied terms.........................................................................................................................11Contract terms in the given case............................................................................................12Conclusion.................................................................................................................................12Bibliography..................................................................................................................................13Answer 1(a)
2BUSINESS LAWIssue:Was there any contract formation between Avinash and the café?What are the essentials of a valid contract?Relevant lawThere are four major essentials that determine the validity of a contract. These majoressential elements of a valid contract are:OfferAcceptanceConsiderationThe intention of creating a legal relationshipOffer:An offer can be referred to as a statement of expressing the intention to bind two partiesin a contractual relationship1. The person making the offer is called the offeror and the person towhom it is made is called the offeree. The offer made by an offeror to an offeree must be acomplete one, without any ambiguous or indefinite terms. In the remarkable case ofAGC(Advances) Ltd v McWhirter2it was held that where an offer is incomplete or has indefiniteterms, it shall not be considered as an offer, but a mere invitation to offer.Acceptance:1McKendrick, Ewan.Contract law: text, cases, and materials. Oxford University Press (UK), 2014.2(1977) 1 BLR 9454
3BUSINESS LAWSecondly, acceptance of such offer is another essential that is required in a valid contract.It is to be noted that, after an offer is made, acceptance is the next step that follows. Only aperson, to whom an offer has been made, can make acceptance of such offer. Acceptance of anoffer can only be done on the terms of the offer and in case of any change in the terms of an offerit shall not constitute acceptance, but a counter offer. To constitute a valid, the acceptance of theoffer must be communicated to the offeror. In the case ofHyde v Wrench3, the principles of avalid acceptance had been clearly demonstrated.Consideration:The next essential element of a valid contract is consideration. According to the commonlaw, in order for the contract to binding upon the parties, consideration is necessary.Consideration can be regarded as the price for the fulfillment of the contract, which the promisorhas to pay to the promisee, in a contract, as held in theCarlill v Carbolic Smoke Ball case4.Inthe remarkable case ofChappell & Co Ltd v Nestle Co Ltd5,the nature of consideration wasdescribed.Intention of creating a legal relationship:A contract is an agreement that must be made legally binding upon the parties to thecontract6. It was stated by the court in the case ofCarlill v Carbolic Smoke Ball7that theintention of the parties to create a legal relationship would be analyzed from the view point of areasonable person acting in the same situation as the plaintiff. In the case ofAir Great Lakes Pty3[1840] EWHC Ch J904[1893] 1 QB 2565[1960] AC 876Willmott, Lindy, et al. "Contract law." (2013)7[1893] 1 QB 256
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