Introduction to Business Law Common Law Assignment

Common Law Assignment
(Student Details: )
11-Dec-17

QUESTIONS 2
Table of Contents
Question 1........................................................................................................................................3
Question 2........................................................................................................................................4
Question 3........................................................................................................................................5
Question 4........................................................................................................................................6
References........................................................................................................................................8

QUESTIONS 3
Question 1
I: Issue
The facts given in the case study depicts the key issue as “vegan leather would be all-natural”
could be deemed as a term of contract or not.
L: Law
A contract is a legally binding document which consists of promise by parties for fulfilling the
terms of the contract. These promises, when inserted in a contract, give rise to rights and
liabilities for the contracting parties (Bonell, 2009). In order to create a contract, which holds
validity in eyes of law, there is a need for the presence of elements of contract, which include
elements of agreement, i.e., offer and acceptance, and the other elements like clarity, consent,
capacity, consideration and intention. Before an offer is made for a contract, negotiations are
carried on (McKendrick and Liu, 2015). And instead of deeming these negotiations particularly
the puffs as terms of contract, they are deemed as pre-negotiation phase, due to the lack of
intention in making these statements by the parties, and thus do not have a legal effect (Mulcahy,
2008).
Presentations are common parlance before forming a contract and these are not expressed in
writing. Though, there are cases where such terms become enforceable and an example of this
was found in Birch v Paramount Estates Ltd (1856) 16 EG 396. The court was of the view in this
case that the verbal statements made during negotiation phase would be deemed as enforceable
terms of the contract due to the presence of intention in making these terms and also due to the
special knowledge of the defendant. As a result of this, statements made before getting in a
contract are deemed as contractual terms where there is presence of intention (Poole, 2016).
This rule can further be substantiated through the Heilbut, Symons & Co v Buckleton [1913] AC
30 case in which the requirement of meeting of minds was put forward in order to show that the
parties had the requisite intent in making such statements. So, the parties have to enter in the
contract only after believing in this statement, for the same to be enforceable. Bannerman v.
White (1861) 10 CBNS 844 came before the earlier ruling and gave the same results. Here it was