Commercial Law Assignment: Elements of a Valid Contract, Dispute Resolution Methods

This Commercial Law Assignment discusses the basic elements of a valid contract, obligations of contracting parties, and various dispute resolution methods such as mediation, arbitration, and litigation. It includes answers to five questions related to contract law, including the distinction between an offer and an invitation, the validity of agreements with minors, and the legal position of parties in a contract. The assignment also discusses the postal rule of contract and the consequences of breaking a contract. The subject is Commercial Law, and the course code and college/university are not mentioned.

Commercial Law Assignment
Student Name: Student ID:
Module Name: Commercial Law Module ID:
Date Due: Professor Name:
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Table of Contents
Answer No. i:...................................................................................................................................3
Answer No. ii...................................................................................................................................5
Answer No. iii..................................................................................................................................6
Answer No. iv..................................................................................................................................7
Answer No. v:..................................................................................................................................9
Reference Lists..............................................................................................................................11
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Answer No. i:
In order to form a suitable contract, there needs to be basic elements present consisting of an
offer and its consecutive acceptance. In order to form a contract, contracting parties needs to
form an agreement and thereby apply basic rules of contract law (Hunter 2017). In order for a
contract is valid and legalized there are various obligations that contracting parties needs to
follow. A well-known example of Carill v. Carbolic Smoke Ball Co, the Court held that offer to
accept a contract was separate as considered to an invitation. The intention of parties making the
agreement has to be understood in order that distinction between the two can be made. It is rather
difficult to test determination. In case the declaration was affirmative sentence or a result of
further negotiation, determination has to be done according to declaration. For this case an
essential division of commandment is the contract law. By restricting obligations and privileges
of parties in the agreement it provides position of values however, it does not include regulations
and rules in a relative manner. The lawful obligations in the agreement should not be should not
be broken. A contemplation for additional party as stated by business law includes every
declaration or form of declarations. A guarantee is a proposal, once approved as per
supplementary parties. In order to analyze the provided situation, the defining forming of an
agreement is well suited to. By fulfilling proposal and acceptance are the two essentials of the
proposal made an agreement can become a contract.
In order that a contract is valid, parties to the contract cannot be minors or declared insane by
courts of law. The Proposal and its subsequent multiple acceptances in the proposal be made are
provided in the aforementioned case (Chaikin 2008). Alan initially makes the proposal by
making offer in Facebook to sell at $200. An obligatory paper in Commercial Law is promoted
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by Alan named “Introduction to Business Law in Singapore," along with his class notes, where
he claims to have received very high grades. Alan posted on Facebook regarding his proposal.
The proposal was made by him on November 1. In the offer, Alan provided that the cut-off date
for the offer was November 5, 2014 within which whoso ever paid him the money will receive
the book with the materials.
Bernard made a counter offer of $150 to Alan. He responded to the Facebook post of Alan by
providing his offer. Alan initially made no reply to Bernard and later said that he already has an
offer of $200, to which Bernard accepted to pay the money as per initial proposal. Bernard
being out on travel, sent payment of $200 to Alan by means of courier dated November 7, 2014.
Alan handed over Bernard his personal book and provided that all his class notes are included
within the book pages. In this case the contracting parties can be Bernard and Alan.
Charleen, Alan’s sister viewed the Facebook post regarding the offer made by Alan. She was
highly interested in buying the law book at $200. Alan had not accept Charleen’s offer seriously
as she was pursing her school level education. Alan, unmindfully agreed to Charleen’s offer
while thinking about football match. With Alan’s acceptance of the offer, his sister found that
their contract was there. On November 6, 2014, Charleen after receiving pocket money, left
$200.00 to Alan on the table. In this case contracting parties can be Alan and Charleen, though
Charleen might be a minor and might not have capacity to contract.
Damien who was not a direct friend of Alan on Facebook saw the posts and was interested for
the book. He was ready to pay the proposal amount made by Alan. Damien met Alan in his
college on November 4, 2014. On that day, Damien provided him with $200.00 for the proposal.
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Alan accepted the cash and in return promised to give all relevant material in November 7, 2014.
On the same day, he bought the book and handed it over to Damien along with his hand written
class notes. In this case contracting parties can be Alan and Damien.
Answer No. ii.
Alan and Bernard had no contract though there was an agreement formed between them. On
November 7, 2014 Alan provided the book to Bernard by accepting the cash that was send by
Bernard. Alan committed a wrongful act as Bernard came to know the book was available free
of cost at Kaplan Higher Education (Chan 2008). The contract hence did not imply legality in its
purpose which holds Alan legally responsible for a false proposal. The proposal made by Alan
can receive a suit for claiming damages and compensation from Bernard. Bernard was the first
person to accept proposal made by Alan, when the Facebook post was given for a cost of $200.
Bernard had made a contradictory proposal to the proposal initially made by Alan. Bernard’s
proposal was an offer of $150, instead of $200.
In case of a counter proposal being made on a proposal it might be rejected or accepted. In order
to make the initial proposal more feasible and reasonable a “counter proposal” is mad along with
amendments. It is the freedom of the proposalee whether to accept or reject the counterproposal.
The proposalee is free to either recognize such counterproposal or to decline it in case a
counterproposal is made.
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Bernard makes a counter proposal to Alan in this case. In the case of counterproposal neither
Alan expressed to accept it nor to rejected it (Spamann 2009). Bernard sent a courier on
November 3, 2014, to Alan of the exact compensation amount offered of $200. Alan on
receiving the payment accepted the sum and sent the book to Bernard. The postal rule of contract
is formed in this case whereby courier is used. Bernard however did not receive confirmation
from Alan’s side for replying to the counterproposal given by him. Bernard in this case does not
hold any legal position, as there is absence of any agreement between them. Bernard’s proposal
was not acknowledged by opposing proposal by Alan. Hence it can be said no valid agreement or
contract exists between Bernard and Alan.
Answer No. iii.
While explaining Charleen’s legal position, it can be said that she is Alan’s younger sister. She
was pursuing her O level at school, implying that she is a minor. Once Charleen saw the proposal
made by her elder brother Alan, Charleen had interest in obtaining the Commercial Law Book.
She communicated to have accepted offer made by Alan (Healey 2012). Alan simply agreed in
response to what Charleen, while she was communicating her acceptance of the offer. Alan was
thinking regarding something else as he was imagining football while he communicated his
acceptance to Charleen. When Alan decided to accept Charleen’s offer to his proposal Alan was
not in an appropriate state of mind.
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Whether a suitable agreement existed between Alan and Charleen is central to the query that
arises in the given case. Charleen is still a child as she was a student of O level. Her age can be
presumed to be at not more than 16 or 17 years. An agreement with minor cannot be treated as a
valid contract by law of agreement and Contract law. The Court needs to seriously consider
about this agreement as being a simply social and household understanding as Charleen and Alan
were brother and sister of one another (Davies 2010). In cases of contract law a tie in communal
and residential understanding cannot be easily established. In these cases no one can file suit for
violation of agreement against the other. Alan and Charleen can be said to have no agreement
survived between them. Alan was not in a decent perspective while he gestured his acceptance
by nodding his head for acknowledged of the proposal made by his sister. Alan’s gesture was
equivocal towards Charleen instead of communicating a vocal acceptance. Charleen and Alan’s
agreement can be said to be local in character and genuine with no real agreement between.
Answer No. iv.
Damien was not a direct friend of Alan rather he was a friend of Bernard's. Damien came to
know regarding the offer in Facebook and found Alan’s telephone number. Damien accepted
Alan’s offer by means of sending him across a SMS expressing his acceptance (Deakin 2012).
On November 4, 2014 as per Alan’s offer Damien handed over the cash to Alan. Alan handed
over the book as per agreement with his handwritten notes to Damien subsequently on November
7, 2014. Alan and Damien’s agreement has legitimate components to satisfy every element of a
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substantial agreement. In order for an agreement to be satisfied, accompanying rudiments are
crucial that they be met. The components of a valid agreement being proposal, its consecutive
acceptance, consideration, intention with legitimate connection has been found to be established
in this agreement only. Every part of a suitable agreement unlike Bernard and Charleen’s
agreement, has been satisfied by Damien (Bitas 2014). A substantial contract is formed between
Alan and Damien. In case of Bernard’s counter proposal to Alan which was not acknowledged
the agreement is made invalid as per rule of postal guideline. Charleen did not possess the power
to form an agreement with brother, Alan.
Damien and Bernard established that the Commercial Law book is issued by Kaplan Higher
Education free of charge on November 23, 2014. It needs to be also noted that Alan made
changes to his introductory proposal. Alan initial proposal included extra hand written class
notes along with his book. He did not give additional notes with the course book to Bernard, as
he said that all his class notes were included in the book itself. Bernard can approach legal action
against Alan for distorting the book’s estimation. Therefore it can be concluded that there was
absence of legitimate agreement amongst Alan and Bernard (Hill 2014). Alan can be claimed for
reimbursement by Bernard for his falsified claims and estimation of the book. As per agreement
law, if any party to the agreement breaks or abuses the party, then the party suffering loses can
claim for indemnity. While estimating remuneration then the harm or misfortune caused needs to
be endured.
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Answer No. v:
In order to resolve various disputes as per law of agreement there can be various option available
resolution as mediation, arbitration and litigation. In case of Mediation, the parties are provided
impartial outsider help in cases of disputes dispute for achieving a willful choice in the
procedure. In cases of Conciliation private method for the purpose of settling an argument in a
casual and well-disposed is formed. In cases of business or individual it allows determining any
type of contention (Kraakman 2009). The dispute resolution is presided over by an arbiter. Both
parties for resolving their disputes for satisfactory achievements by both, a mediator is made to
preside over such meetings.
An official method for dispute resolution is adjudication. A supple and tranquil system
accommodating evimainsence and test are adopted. Argument amongst parties is controlled by
the arbitrator. The arbitrator for evidence and trial makes more flexible rules. It is compulsory on
both the parties to adopt decisions made by the authority in case of dispute resolution. The
parties might file plea prior the trial court for resolution of the argument as in the process of
arbitration the decision made by the arbitrator is not binding upon the parties. When a person
wants to decide the dispute’s results that can be luxurious and extensive arbitration might be
adopted in such situations.
Litigation comprise of one the best methods of solving dispute. In the Legal Court, Litigation
process takes place. The applicant files a legal suit against the defendant in case of official
proceeding. A lawful advisors, who can represent dispute matter in the Court of Law for
sustaining their proceedings can be lawfully hired by the applicant and the defendant as per their
rights. Both the parties needs to comply by the judgment declared by the court as it is concluding
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and compulsory (Patterson 2010). A dissatisfied opposite party can file a law suit for appealing
against decision in the higher Court in case the decision of the Court is not found to be
satisfactory. However, the entire process of litigation is extremely costly and time consuming.
The decision in such cases ends mostly in a fair and just manner. Prior to filing a suit for
proceedings it is optional that all disputing parties resort to alternating argument declaration.
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Reference Lists
Bitas, B. C. (2014). Comparative theory, judges and legal transplants: A practical lesson from
Singapore and its relevance to transnational convergence. SAcLJ, 26, 50.
Chaikin, D. (2008). Commercial corruption and money laundering: a preliminary
analysis. Journal of Financial Crime, 15(3), 269-281.
Chan, G. K. Y. (2008). The relevance and value of Confucianism in contemporary business
ethics. Journal of Business Ethics, 77, 347-360.
Davies, P. L. (2010). Introduction to company law. Oxford University Press.
Deakin, S. F., Johnston, A., & Markesinis, B. (2012). Markesinis and Deakin's tort law. Oxford
University Press.
Healey, D. (2012). Application of Competition Laws to Government in Asia: The Singapore
Story. KLRI JL & LEGIS., 2, 59.
Hill, J., & Chong, A. (2014). International Commercial Disputes: Commercial Conflict of Laws
in English Courts. Bloomsbury Publishing
Hunter, H. (2017). Modern Law of Contracts.
Kraakman, R. (2009). The anatomy of corporate law: a comparative and functional approach.
Oxford University Press on Demand.
Patterson, D. (Ed.). (2010). A companion to philosophy of law and legal theory. John Wiley &
Sons.
Spamann, H. (2009). Contemporary legal transplants: Legal families and the diffusion of
(corporate) law. BYU L. Rev., 1813.
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