Business Law Assignment: Analysis of Legal Issues and Case Studies

Business Law
Business Law Assignment
By
Student name
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02/24/2018
Technical Advisor: _____________________________ _____________
Dr. Date

Business Law 1
Question 1. Is Fran bound by the written agreement with Marco? (5 marks)
Issue
The question of law is whether the agreement made by brothers is binding to the parties.
Rule of Law
Sometimes during negotiations, the parties to an agreement never express their intention
to make the agreement binding. Thus, the court has to determine from a reasonable man’s
perspective whether the parties intended to create a legal bond.1 Agreements made from social
contexts are presumed to have no legal intention while those in commercial settings are
presumed to have the legal intention. Social context agreements are those made with friends and
relatives.2 The exception to this rule applies to social context agreements that are in writing or
involve money, commercial loss or gain.3
Application
The application of this rationale was once applied to a case where a husband and a wife
disputed over the transfer of a mortgage.4 In the case, the husband had signed a note accepting to
transfer the house if the wife cleared the debts charged to the house. However, the husband
refused to transfer the house even after the had cleared the charges. The court affirmed that since
the agreement was in writing, there was the intention for a legal bond. Similar, the court enforced
an agreement between a young couple and elderly parents since the elderly relatives had made
the young couple to dispose of their property.5 Therefore, the case of Fran and Mirco would be
argued as follows;
1 McKendrick, Ewan, Contract Law (Oxford University Press, 6th ed, 2014)
2 Jill Poole, Casebook On Contract Law (Oxford University Press, 13th ed, 2016).
3 Alix Adams, Law For Business Students (Pearson Longman, 6th ed, 2010).
4 [1970] EWCA Civ 6
5 [1960] 1 WLR 286. Agreement involving money, commercial loss or gain.

Business Law 2
The argument supporting a binding agreement
The agreement was in writing. There was an intention6
Marco lost a commercial gain, so there was a legal intention.7 I.e. Marco was planning to
take on a well-paying job but left it.
Argument refuting a binding agreement
Marco was Fran’s brother. Social setting agreement.
Conclusion
The agreement was binding as it was in writing, and one party (Marco) underwent a
commercial loss.
Question 2: Does the doctrine of promissory estoppel apply to Fran and Octavia? (6 marks)
Issue
The question of law is whether the equitable remedies through promissory estoppel can
be awarded to Octavia.
Rule of Law
The principles of promissory estoppel prevent promisors from declaring that their
promises were unenforceable.8 These are irrevocable offers where courts refuse to allow a party
from moving away from its promises. The grounds of promissory estoppel rely on five elements.9
There must be a promise made clearly and definitely.10 The promisor must have expected the
promisee to believe and act on the promises. The promisee must show that he/she acted relying
6 Ibid (n1)
7 Ibid (n2)
8 McKendrick, Ewan, Contract Law (Oxford University Press, 6th ed, 2014)
9 Alix Adams, Law For Business Students (Pearson Longman, 6th ed, 2010).
10 Paul Stephen Latimer, Australian Business Law (CCH Australia, 31st ed, 2012).