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[pdf] Business Laws Assignment

   

Added on  2021-04-22

14 Pages3586 Words39 Views
Running head: BUSINESS LAWSBusiness LawsName of the studentName of the universityAuthor note

1BUSINESS LAWSTable of ContentsQuestion 1..........................................................................................................................2Question 2..........................................................................................................................5Answer 3..........................................................................................................................10Bibliography.....................................................................................................................14

2BUSINESS LAWSQuestion 1IssueWhether a valid contract has been formed between Terry and SusanWeather Terry has committed negligence in relation to KevinRule 1A contract is a legal agreement which is formed if all elements required toestablish it are identified within the discussions of the parties. In relation to the issue theelements which are to be identified in the discussion between the parties is that of anoffer and acceptance. Specifically the issue which needs to be addressed is that whenan offer is revoked and is no longer eligible to be accepted and when an acceptance isdeemed to have been made through post. One of the most Landmark case in the history of contract law is that of Adams vLindsell1. The issue before the court in this case was to decide when an acceptance bypost is deemed to be made. In this case the court set out a Precedent that as soon asthe letter of acceptance has been posted the party posting the letter is said to havemade the acceptance. However the rule is only applicable when the parties to thecontract do not expressly rule out post as a medium of acceptance. In addition the letterof acceptance has to be correctly addressed for the rule to be made applicable.In the famous case of Byrne & Co v Leon Van Tien Hoven & Co2 it had been held bythe court that the postal rule of acceptance is not applicable when it comes to therevocation of the offer. This signifies that only when the letter of revocation has actuallybeen received by the offer is still available to be accepted. In this case the plaintiff handaccepted the offer through post before the letter of revocation actually reached him. Therevocation letter had been sent by the defendant prior to the letter of acceptance beingposted. The Court ruled in favour of the plaintiff stating that revocation is not subjectedto the provisions of the postal rule. 1 Adams v Lindsell (1818) 1 B & Ald 6812Byrne & Co v Leon Van Tien Hoven & Co [1880] 5 CPD 344

3BUSINESS LAWSApplicationIt has been provided through the scenario that Susan had made an offer to Terryto sell 100 gold bars at a price of $450,000. The offer had been sent by Susan to Terryon 27th January. The letter was actually received by 3rd February and on the same dayTerry posted acceptance in relation to the letter. However the offer made by Susan hadbeen attempted to be revoked by post sent by her on 30th January. According to theprinciples of the Byrne case this revocation would only come to effect when it hasactually been received by Terry and if Terry accepts the offer made by Susan before hereceives the revocation letter it would account to a valid acceptance. However the revocation letter had been received by Terry on 4th February theacceptance had already been made by him on 3rd February. This can be said throughthe application of the principles stated by the postal rule that acceptance is made if theparties agree to communicate through post as soon as the letter is posted. Therefore asthe acceptance had been made before the revocation of the offer, a valid contract hasbeen formed between Terry and Susan which is enforceable in court.ConclusionThere is a valid contract which has been formed between Susan and Terry on 3rdFebruary when the letter of acceptance was posted.Rule 2Negligence is defined as the failure on part of one party to comply with theirduties towards others which results in reasonably foreseeable damages to others. Thecase of Donoghue v Stevenson3introduced the elements of negligence to the legalsystem of England which was then adopted by various countries including Australia.The three elements which had been identified by the court in this case include theelement of duty of care, breach of the duty of care and damages caused due to thebreach.3Donoghue v Stevenson (1932) AC 562

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