Business Law: Contract Law, Remedies, Chattel Mortgage, Fixture, Torrens, Leasehold

Running head: BUSINESS LAW
Business Law
Name of the Student
Name of the University
Author Note

BUSINESS LAW
1
Table of Contents
Question 1......................................................................................................................2
Issue 1.........................................................................................................................2
Rule............................................................................................................................2
Application.................................................................................................................3
Conclusion..................................................................................................................3
Issue 2.........................................................................................................................4
Rule............................................................................................................................4
Application.................................................................................................................4
Conclusion..................................................................................................................4
References......................................................................................................................5
Question 2......................................................................................................................6
References......................................................................................................................8

BUSINESS LAW
2
Question 1
Issue 1
To determine as to whether the buyer can have a claim against the seller and that
whether the seller has defense available with him to such claim.
To determine as to which side will be heard by the court.
Rule
An offer given by the offeror must be communicated to the offeree who must
communicate his acceptance back for his silence would not signify an acceptance of the offer
(Poole 2016). A proper exchange and communication of offer and acceptance helps to form a
binding contract as held in Australian Woollen Mills Pty Ltd v The Commonwealth [1954]
HCA 20. Once an offer has been made to the offeree, it cannot be revoked unless the offeree
has not replied to such offer or the time frame for which the offer was valid has expired.
Once an offer has been accepted by the offeree, it cannot be rejected, modified or terminated.
Similarly, an acceptance can also be revoked until it has been completed or it has reached the
offeror; however, once it has reached the offeror, it cannot be revoked by the offeree. Once
an offer has been accepted and a consideration, wholly or in part has been exchanged, it is
considered the agreement between the parties comes into existence and the intention of the
parties to be legally bound is considered too as held in R v Clarke [1927] HCA 47.
Offer, acceptance, consideration and intention of the parties to form a legally binding
contract are not just the only essential element of a valid contract; it also require to satisfy
whether that the parties to the contract have the capacity to form such contract or not. Under
Common Law, it needs to be ensured that a party must not be a minor, an intoxicated, a
bankrupt and an insane to enter into a contract (Knapp, Crystal and Prince 2019).