Business law - Assignment PDF
6 Pages1476 Words115 Views
Added on 2021-04-21
Business law - Assignment PDF
Added on 2021-04-21
ShareRelated Documents
Running head: BUSINESS LAWBusiness LawName of the studentName of the universityAuthor note
1 BUSINESS LAWParagraph 1In the given situation in order to derive the legal position of Liam the rules in relation tooffer and invitation to an offer along with postal rule of acceptance have to be applied. In thegiven situation it has been provided that HFC had made an advertisement in relation to sellingthe tickets at £700 if the letter of acceptance arrived by 5th May and at £875 if the letter ofacceptance arrived after the date. According to the principles of Partridge v Crittenden (1968)case an advertisement cannot be accepted by a person as it is an invitation to an offer. Howeverin the given circumstances there advertisement which has been made by HFC is of a completenature and any reasonable person would think the advertisement to be an offer as per theprinciples of the case of Carlill v Carbolic Smoke Ball Company [1892] EWCA Civ 1. Thusthe advertisement will be considered as a valid offer which can be accepted. According to the principles of the case Adam v Lindsell (1818) as soon as the letter foracceptance is posted the acceptance is made. The rule provided by this case is known as thepostal rule and this applies in situation where an acceptance is made by post. According to thefacts the acceptance by Lian has been made by post therefore the postal rule will be applicable.In the given situation it can be stated that acceptance has been made by Lian as soon as he postedthe letter whether or not the letters reached HFC. That's where the acceptance was made Liam isnot liable to pay the additional £175 demanded by HFC. This rule is different in case of emails asand acceptance by email is said to be complete when the Email actually reaches the mailbox ofthe seller. In the case of Brogden v Metropolitan Railway Company (1877) it has been statedby the court that where performance of the consideration has been done by the participants toacceptance. Therefore the letter which has been sent by Lian would be considered as acceptance.
2 BUSINESS LAWParagraph 2In order to determine the legal position of HFC rules in relation to breach of contract andexclusion clause have to be applied. The terms of a contract can be divided into two types whichare condition and warranties. When warranty is breached the party is entitled to damages andwhen condition is reached the party can claim damages and repudiate the contract. Breach ofcontract takes place when a party to the contract is not able to comply with the terms of thecontract. In the given situation it is provided that where HFC was sure that that would not be ableto complete the work on time they provided him with an additional 15000. However as stated inthe case study the work although completed in time was not up to the mark as there were severaldefects. In this case it is an implied term that the work which would be done by Ian should befree of defects as per the case of Southern Foundries (1926) Ltd v Shirlaw [1940] AC 701where terms which are necessary to get a contract competed are incorporated as implied terms. Afundamental breach of contract has been committed by Ian and HFC is entitled to repudiate thecontract and trigger the exclusion clause. They also have the right to claim the damages whichhas been incurred by them in order to get the repair work completed by another contractor. Thisis because the implied term which has been violated by Ian is a condition of the contract. As perthe case of Schuler AG v Wickman Machine Tool Sales Ltd [1974] AC 235 were condition isbreach both repudiation and damages can be claimed. According to the principles of consideration as provided by the case of Stilk v Myrick(1809) in situation where additional fees are provided in relation to completing the work alreadypromised cannot create a new contract. The additional fees of 15000 which had been promisedby HFC is not entitled to be paid legally as there was no contract formed and the fees wasprovided in relation to an existing consideration of completing the work on time.
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Law Assignment: Contract Law and Employment Lawlg...
|7
|1795
|284
Case Study on Legal Frameworklg...
|8
|1723
|39
The case titled Partridge v Critenden v Grantlg...
|12
|745
|261
Contract and Commercial Law Assignmentlg...
|10
|2608
|32
BLO1105 Assignment on Business Lawlg...
|11
|2534
|146
Assignment on Commercial Law and Contract Lawlg...
|11
|2733
|214