Business Law Case Study Analysis

Business law
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Table of Contents
Introduction................................................................................................................................3
Question 1..................................................................................................................................4
Question 2..................................................................................................................................8
Conclusion................................................................................................................................10
References................................................................................................................................11
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Introduction
In the present assignment of business law, the provisions of common law, contract law and
consumer protection law are discussed with detail related to the case study. The IRAC format
will be applied to explain the case study and some case laws are also provided. The essential
element of the contract is given with the explanation of exclusion clause and its liability
towards the customer. The express and implied terms of the contract are also discussed
related to the case study. The consumer rights and protection are also applicable to the
parties.
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Question 1
(a)Explain how the contracts Avinash made with the café were formed.
Offer and acceptance: This is the first element of the contract. This is the essential
requirement of the contract if there is no offer than a contract. It makes sure that contract is
legally acceptable or valid. When the offer is accepted it becomes agreement. According to
the definition of contract, the agreement is the primary factor to form the contract. The basis
of agreement is offer and acceptance.
In the given case of Avinash, he is the regular customer of local café, which gives the self -
service facility to select the drink and food products by online method. Avinash placed the
order of coffee and pastry which is considered as an offer to the café. The offer was accepted
by the owner of local café to serve the coffee and pastry as demanded by Avinash.
Mutual consent of parties: There is a requirement of mutual consent of all the parties to
constitute the valid contract. All the parties to the contract must agree on the same point and
same opinion at the same time (Cartwright, 2016).
In the case, both the parties Avinash and local café are agreed and have mutual consent
towards the offer and acceptance.
Creation of legal obligation: There must be the creation of legal obligation under the
agreement rather than offer and acceptance. If parties do not fulfil the promise then they have
a right to go to the court of law. But in case of social agreements there is no right to go to law
and court but in case of commercial agreements, there is a need to go to the court and law.
In the case, parties have right and intention to create the local obligation and go to the court.
Avinash as a customer suffered by the food products of café then he has a right to create the
legal obligation against the café.
According to the case of Meritt v Meritt, court held that there must be legal obligation
towards the agreement made between the parties and it is binding on all.
Free consent: There is no valid contract if the consent of the parties is not free. The consent
is obtained by the force of coercion, undue influence, misrepresentation of facts, fraud and
mistake of true facts then it will not be a valid contract.
In the given case, there is a free consent of both the parties Avinash and café there is no any
undue influence, fraud and misrepresentation of facts etc.
Competency: According to the provisions of contract Act, provides that parties must be
competent if:
 The person must be major,
 Parties are of sound mind,
 He is not disqualified by law and order.
In the given case, Avinash follows the all competent factors of the contract he is a major, of
sound mind, not disqualified by law and order.
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