Introduction to Business Law - Solved Assignments

Running head: INTRODUCTION TO BUSINESS LAW
INTRODUCTION TO BUSINESS LAW
Name of the Student
Name of the University
Author Note

1INTRODUCTION TO BUSINESS LAW
Problem 1
Issue
In the given set of circumstances the issue is to determine if the agreement between
Charlie and Ali is legally binding.
Rule
Common law principles are developed through judicial pronouncements and thus they are
not statutorily formed. The common law position about valid contracts requires an intention to
form legally binding associations (McKendrick 2016). In cases where the parties to an agreement
are family like in case of a husband and wife or siblings then there is a presumption that the
parties did not intend on forming legally enforceable contracts.
Application
Balfour v Balfour [1919] 2 KB 571 is the leading case on this issue and here it was
decided that in case of domestic or family relationships agreements are not usually construed to
have an intention to form legally enforceable contracts (Knapp, Crystal and Prince 2016).
In this case, under the existing family relationship between the two (siblings), if Ali
pursues Charlie legally for breach of contract the court would rule that following the judgment in
Balfour v Balfour such an agreement between family members would not be legally enforceable
due to the presumption that agreements between family members are not made with the intention
of forming legally binding agreements (Kötz 2017). Thus Ali would not succeed in establishing
her claim for breach of contract and would not be entitled to damages for the same.

2INTRODUCTION TO BUSINESS LAW
Conclusion
No the agreement between Ali and Charlie is not legally binding. An thus does not form
legally enforceable contractual obligations.
Problem 2
Issue
The issue here is to determine if there was a legally enforceable contract between Nick and
the Police department. Where Nick had requested the police department to station an officer
outside his party and the department agreed to provide him with the same for a consideration of
$1000.
Rule
As per common law the essentials of a valid contract are offer, acceptance and
consideration (Poole 2016). If these are present in an agreement it is presumed that it is a
lawfully valid agreement which can be enforced as a contract.
The leading case relating to offer is Clifton v Palumbo [1944] 2 All ER 497 which laid down
that a valid offer must be clear precise and definite (Hunter 2017). Swan v Miller [1919]1 IR 151
down that a counter-offer is the rejection of the original offer but a clear, unequivocal and
unconditional acceptance would be legally valid (Adriaanse 2016). Dunton v Dunton (1892) 18
VLR 114 laid down that consideration is an essential of a contract and must be present to form a
legally valid contract (Cartwright 2016).