Assignment on Business Law (Sample)


Added on  2021-04-24

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Running head: BUSINESS LAWBusiness LawName of the StudentName of the UniversityAuthor note

1BUSINESS LAWQuestion 1 (a)A contract is known as an official agreement. A contract can either be in a written or oralform. Therefore, six significant constituents of a contract that are essential in the formation ofa contract. If the these important elements are not present in a contract, it will not beconsidered to be a valid one. Firstly, during the formation of a contract an offer or a promisemust be made at first. It is one of the basic elements that are required in a contract for it to belegally acceptable1. For making an offer, there must be two parties present in the situation.When an offer is being made by one party, the other party must accept. If the other party failsto or does not apply then it will not be considered to be a valid contract. However, both theparties must be aware of what is being offered to the other while the creation of a contract.Unless the other party involved accepts the offer, it will not be an invalid contract.Acceptance should be done from the other party once the offer is made as observed in thecase of Brennan v Lockyer. A contract can be considered to be valid, only when there isacceptance from the other person. The person accepting the offer should be precise about therules and clauses that are being offered in the contract. Therefore, the person accepting theoffer should accept it in writing or orally. Consideration is a noteworthy ingredient of acontract. Consideration in a contract refers to a situation where one person is givingsomething in return2. Therefore, a contract cannot be formed when an object is not exchangedas mentioned in the case of Chappell v Nestle3. The base of a contract involves the process ofconsideration without which it will be considered to be invalid. It is treated as an exchangethat is made between the promisee and the promissory. Consideration can be in form of anobject or money. Fourthly, the parties forming the contract must have an intention to createlegal relations.No existence of intention to form legal relations in a contract will result in a1 McKendrick, Ewan.Contract law: text, cases, and materials. Oxford University Press (UK), (2014).2 O’Leary, Leanne. "Introduction."Employment and Labour Relations Law in the Premier League, NBA andInternational Rugby Union. TMC Asser Press, The Hague, (2017). 1-18.3 Chappell & Co Ltd v Nestle Co Ltd [1959]

2BUSINESS LAWlawsuit. Certainty is another constituent of a contract that plays an important role. The termsand regulations that are formed in the contract should be mentioned clearly so that the partiesare able to comprehend. Nash v Inmanf stated there is no certainty in the agreement, it willnot be considered to be valid. Lastly, Capacity in a contract submits a situation where theparties to the contract are suppose to have the legal capacity for carrying out the duties. It hasbeen observed in the case of Guardian Builders v Sleecon. This means minors are notapplicable to form a legal contract with another person. Individuals who are above the age of18 are legally allowed to create a contract with another individual who have attained the ageof 18. Thus, these essential elements should be present in a contract. Such a situation can beobserved in the case of Clifton v Palumbo4. The legal status of the given scenario hasfulfilled and followed all the constituents of a contract. In this case, the offer was provided bythe local café, which was accepted by Avinash who visited that café being a customer5. Thecontract was formed in writing and not orally. Thereafter, the consideration that was agreedupon was when Avinash purchased coffee and paid $4 for it. He had also ordered a pastryalong with the coffee on the next day for $7.50. Intention to create legal relations was presentand both the parties were capable enough to form a valid contract. Therefore, Avinash andthe local café had formed a legally valid contract by involving all the essential constituents.Since all the elements were used, the contract was formed between Avisnash and the café. Question 1(b)4Clifton v Palumbo[1944] 2 All ER 4975 Davies, Paul S. "CONTRACT FORMATION AND IMPLIED TERMS."The Cambridge Law Journal77.1(2018): 22-25.

3BUSINESS LAWIssueThe issue of this scenario is whether the café will be responsible to depend on the clause thatwas printed on the ticket to avoid liability in relation to the mishap.RuleAs far as Common Law is considered, a legally valid contract was formed between Avinashand the local café. The contract that was formed between them was in a written form. On theother hand, according to Australian Consumer Law in Schedule 2 of the Competition andConsumer Act, 2010 a consumer is an individual who buys goods or services based onconsideration and who uses such goods with the permission of the buyer6. When anindividual purchases goods for commercial purposes and not personally, then he or she willnot be treated to be a consumer as per the act. Australian Consumer Law defines the conceptof consumer dispute where the person against whom a complaint has been lodged and deniesthe accusations included in the complaint.Thornton v Shoe Lane Parking [1971] discussesthe situation of a consumer who was being negligent while forming a contract. Therefore, ifboth the laws are applied, when a contract was formed between both the parties, they must beaware of the rules and regulations mentioned in the contract. Negligence committed by oneparty will be held liable if he or she has been negligent on the terms and clauses mentioned inthe contract. Under the Consumer Protection Act, a consumer has the right to claim for hisdamages if the other party has been negligent. There are certain exceptions in this case if theother party has already mentioned that he will not be liable and responsible for the damagesof the consumer and the consumer has agreed upon it. Arumugam v Wong Kook Wah &Another [1987] is an example of the exceptions.However, penalties can be imposed on thetrader or the person liable if the consumer has provided sufficient evidence.6 Knapp, Charles L., Nathan M. Crystal, and Harry G. Prince.Problems in Contract Law: cases and materials.Wolters Kluwer Law & Business, (2016).

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