Introduction to Business Law and Ethics - Solutions and Case Studies

INTRODUCTION TO BUSINESS LAW AND
ETHICS

Table of Contents
Solution 1...................................................................................................................................3
Solution 2...................................................................................................................................5
Solution 3...................................................................................................................................6
Solution 4...................................................................................................................................7
References..................................................................................................................................9

Solution 1
Issue: Whether or not term regarding the vegan leather to be all-natural present in contract
between Peter and ACS
Rule: Terms and conditions of Contract
A contract is formed between the customer and the supplier when;
 The customer accepts the offer of the supplier in writing
 The authorized representatives of parties to the contract sign the appropriate section of
details.1
In a contract, the rights and duties of the parties are decided on the basis of terms and
conditions agreed upon in the contract, however, the terms might either be expressed clearly
on paper or in verbal form. The terms might be taken into consideration by the common law
in accordance with the conduct of the parties or conditions or by legal obligations.2
Express terms are the terms expressed by the parties before the formation of contract and it
comprises of statements determined at the time of contract and correct classification of such
pre-contractual statements is considered as significant as, remedies are provided by the law
accordingly.3
In context of term of contract, the parties are required to plan the contract and the promise to
abide by the contract is to be made by both the parties. In Ellul and Ellul v Oakes (1972), the
Supreme Court of South held that the statement in the listing of the agent was not a part of
1ACCC, 2018. Standard terms and conditions. [Online] Available at:
https://www.accc.gov.au/system/files/ACCC%20standard%20terms%20and%20conditions.pdf [Accessed 31
August 2018].
2Clarke, J., 2013. Terms of a contract. [Online] Available at: https://www.australiancontractlaw.com/law/scope-
terms.html [Accessed 31 August 2018].
3Carter, J.W., 2013. Contract Law in Australia. LexisNexis Butterworths.