Business Law and the Legal Environment - PDF
Added on 2021-05-31
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Running head: BUSINESS LAWSBusiness LawsName of the studentName of the universityAuthor note
1BUSINESS LAWSQuestion 1RELEVANT ISSUE 1The issue here is to identify whether or not there is a valid contract formed amongSusan and TerryAPPLICABLE RULEA contract is said to be an agreement which is enforceable by the law, if all thenecessary components which are needed to set it up are recognized by the parties. Inthis issue, components which need to be recognized are within the discussion of theparties and it is regarding the offer and the acceptance. The particular issue we need totalk about here is if an offer is cancelled then it will not be suitable for approval, and ifthe acceptance is considered to be created by post1.According to the case of Adams v Lindsell [1818] EWHC KB J592, in which the courthad to make a determination of when can an acceptance made by post can be deemed.A Precedent was given by the court which said that when a acceptance letter is postedthen at that point of time the party which posted it is said to be making the acceptance.But, such rules are only appropriate when parties present in the contract do not1Knapp, Charles L., Nathan M. Crystal, and Harry G. Prince.Problems in Contract Law: cases and materials. Wolters Kluwer Law & Business, 2016.2 Adams v Lindsell [1818] EWHC KB J59
2BUSINESS LAWSpurposely send a post for the medium of the acceptance, the acceptance letter requiresto be properly forwarded in order to make this rule appropriate.It is also stated that the postal rule of the acceptance is not appropriate in case therevocation of the offer is seen, this judgement was made in the case of Byrne v LeonVan Tienhoven (1880) 5 CPD 3443. This means that only when the revocation letter istruly received, the offer will still be accessible to be approved. In this scenario theaccuser was seen to accept the post even before the revocation letter reached him. Thedefendant sent this letter of revocation earlier than the acceptance letter was posted.The accuser had the judgement made in his favor.APPLICATIONIn this case, an offer was made by Susan to Terry which stated that he wanted to sellhundred gold bars amounting to $450,000. This offer was sent on 27th January bySusan to Terry. However, Terry received the letter on the 3rd February and replied byposting the letter of acceptance on the same day. But, on 30th January the offer whichSusan made was tried to be revoked by a post she sent. The principles of Byrne casewere discussed which stated that revocation can only be applicable when Terry wouldtruly receive. However, if the letter of revocation was received after the acceptanceletter was sent, then it is said to be valid acceptance.3 Byrne v Leon Van Tienhoven (1880) 5 CPD 344
3BUSINESS LAWSOn 4th February the letter of revocation was received by Terry. However, he made theacceptance on the 3rd February. The applications of those principles which were statedthrough postal rule in which the acceptance takes place when the parties comply tocommunicate by post as the letter is been posted. Thus, the revocation was delayedand the acceptance was made before it, hence there was a formation of a valid contractamong Susan and Terry which would be enforceable by the law.CONCLUSIONOn February 3rd, when the acceptance letter was posted there was a formation of avalid contract made between Terry And Susan.Issue 2Whether Terry had been negligent in regards to Kevin.RULE 2The failure of a party to abide by their responsibilities towards others, and resulting insensible predictable damages towards others is said to be negligence. The componentspresent in negligence were introduced to the lawful system in England, and then wasaccepted by different countries like Australia, as per the case of Donoghue v Stevenson[1932] UKHL 1004. Three components were recognized by the court which was asfollows:1)Violation of duty of damages and care.4Donoghue v Stevenson [1932] UKHL 100
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