Contract Law Analysis and Application

This assignment delves into the intricacies of contract law, requiring students to analyze various case studies and apply relevant legal principles. It encompasses diverse aspects of contract law, including formation, breach, remedies, and standard terms and conditions. Students must demonstrate their understanding of legal concepts through critical analysis and clear explanations. The provided resources include journal articles, textbooks, and online materials that offer insights into the evolution and application of contract law.

Contract Law Problem Question

Table of Contents
INTRODUCTION...........................................................................................................................3
QUESTION 1...................................................................................................................................3
CASE:1...................................................................................................................................3
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
There are many business activities which taken place on a daily basis. One of the most
important act which is being carried out in the regulation of a business activity is the formation
of a contract. It is very important that whenever any formal exchange of promises is being taking
place in an organisation then a proper agreement shall be made between the parties as any
agreement between the party shall conclude to the formation of a valid contract. In order to save
the interest of the party who are contracting with each other, government has implemented
several rules and regulation by legislative body and one of the major law regarding same is
contract law which will deal with all the provision of contract(Byrd, and Hruschka, 2012). It is
very important to form a contract with the application of law as it will raise legal obligation on
breach. The following project shall discuss the case law depend upon the provision of contract.
The aim of the project is to carry out a better understanding about formation of a contract.
QUESTION 1
CASE:1
A contract can be referred as an agreement which has been formed between the parties
voluntary, binding both the parties to perform legal obligation arising out of it. Whenever an
agreement is enforceable by law, then it shall became a valid contract(Vogenauer, 2013). It is
very important that whenever a contract is being formed between the parties then all the essential
elements are to be included. When a formation of a contract shall take place without any
elements then such contract shall be entitled as void. Breach in contract will arise out of the
terms and elements mentioned in a contract. Some of the basic essential elements, to be included
in the formation of a contract are:-
Offer- an offer to a contract can be explained as the desire which a party shall arise out of any
act. For the formation of a valid contract, it is very much important that a valid offer shall be
made between the parties. If the offer is not being included in a contract, then there shall be no
valid formation of a contract.
Acceptance- whenever an offer has been made by one party to another then if the other party
wants to enter into a contract, can accept the offer. An acceptance to a offer shall show an
intention of the other party to enter into a contract(Eidenmuller, Jansen, and Wagner, 2012).
Without acceptance, no contract shall be formed.

Consideration- it can be explained as the exchange of value which is being done between the
parties. Such exchange of value is always dependent upon the promise which is being made by
both of the party in a contract. It is very important when the formation of a valid contract is
being taking place then a lawful consideration has to be made between the parties. If the
consideration will be unlawful in nature then such contract shall be entitled as void contract.
Consideration can be done in written or in oral.
Agreement- prior to the formation of a contract, it is very important to form an agreement
between the parties. Such agreement will raise legal duties or shall raise legal obligation on to
the parties by binding them into a contract(Furmston, Cheshire, and Fifoot, 2012). An agreement
made between the parties could be negotiable also. Any kind of breach in an agreement shall
result into breach in contract.
Besides the formation of a contract with essential elements, it very important to include all the
basic term in a formation of a contract form an example
Implied Terms- the terms which is being included by the government or the statute of the
country shall be referred as implied terms. A party competent to a contract is ought to perform
and follow the implied terms. If such terms are not included then the contract shall be entitled as
void. For instance, a condition to a contract is an implied term which raise a duty on to party to
perform the same. It shall also effect the contractual duty of same.
Express terms- there are certain terms which is being expressly stated in the contract. When the
party has to restrict of limit the liability arising out of any condition mentioned in a contract then
such terms are known as express terms(Cui, Ge, and Jing, 2013). For an example an exemption
clause to a contract refereed as express term which shall limit the liability arising out of contract.
From the above case it can be seen very clearly that a valid contract has been formed between 3
parties that is a valid contract has been formed between Zoe and all the three writer and a
contract between Zoe and publishing company. Such case reflects that a breach of contract has
been occur on the part of 5 star but here in this case the publishing company shall not be held
liable for any kind of breach of contract with the parties because when the formation of contract
is being taking place in between the parties then certain terms and condition are being expressly
stated in the slip which was teared off to the writers.
Case law: Poussard V Spiers (1876) 1 QBD 410
Bettni V gye 1876 QBD 183

The case is about Zoe who had a lifelong dream or starting up an anti-establishment publishing
company that is Black Fish. She so not have proper information and idea to make her dream
fulfil. However, she found a small attic office and started her operations and also paid
rent(Willmott, Christensen, and Dixon, 2013).
As a promotional technique, she started distributing leaflets to radical book stores,
universities and to cafes. As an outcome she found a person named Rom who was willing to
print his book. Zoe went through the concept of book and she loved it and agreed to print 5000
copies. In order to completed the agreed negotiation, Zoe visited local London printing
organization and that is 5 Star Prints. Negotiation took place and cited firm agreed to reduce their
standard price. In this context, they agreed on printing 5000 books for £15000. As a result, Zoe
agreed on the offer given by 5 Star Prints over the book for the topic of “How to cope with
student poverty in austerity times”. In this context, she pays the deposit and signs the slip. The
slip on which signature was done included all subject to 5 Star Print conditions and terms. Then,
two new writers come up with a new concept(ICAEW, 2007). Zoe when through the book and
loved it. Al who is one of the writer, Zoe develops a new agreement in which the deal was made
and 5 Star Prints agreed to print 5000 copies for Al's book. The book that Al wanted to print
consist of high resolution images and similarly like the previous time Zoe signed up the slip. On
the other hand, Kumari who is another writer that was identified by Zoe come up with
“Environmental Insurrection”. She insisted that her book should be printer with 100% recycle
paper and gave the threat of catastrophic climate change. In this context, Zoe rushed to 5 Start
Print and the manager agreed to print books for £15,000 and he assures that they have high
environmental policies. Then Zoe pays the deposit but she forgets to sign up the tear off slip.
Zoe decided to open up special bottle and also invited all the authors. The first box was
opened and that was of Rom who wanted to print for “How to cope with student poverty in
austerity times”. When every one when through the book, it was found that the book was badly
scuffed from edges and from the inside there was many pages which were crumpled and this
made it impossible to sell. Further, things when on worse for Kumari when her box was opened.
On the front page of her book, it stated that the book was produced from 100% un-recyclable
material. Further, it also included that about 1 Acre of Amazonian Rainforest was used to
produce the book. Lastly, when box was opened up for Al which was for “Rock and Roll and
Revolution”, it was found that books were is good condition and it also had high resolution

pictures but at the top of book one invoice was found that £25.00 per book for including high
resolution images. Zoe got highly upset and the part of work that was done was not acceptable.
Zoe calls up the manager of 5 Star Print in order to get explanation for poor quality of the
book of Rom. Kumari books did not use recyclable materials and the reason for taking additional
fees for the book for Al(Witte, 2012). The manager tries to explain that there are cases in which
sometimes books get damaged during the process of printing. No one actually cares about
Amazon since 90's and the additional fee is the standard rate for high resolution pictures. After
this Zoe got anger and she shouted on the phone that she will sue him for the breach of contract.
Next day there was letter received to Black Fish saying there is no legal action can be taken due
to companies terms and conditions. These are as follows:
7. Any liability will not be accepted and they will also not provide any assurance for the final
publication for the quality, size of paper, type of colour, image and photograph. Further, it also
includes the number of copies in the given period.
8. High resolution images are additional fee as per the discretion of 5 Star Print.
9. There is strict policy for environment and they make use of 100% recyclable materials where
ever is necessary. Firm does not reserve to use non recyclable material according to their will.
1st contract
when zoe decided to open his own publishing company, the very first contract has been
made between Zoe and Rom. It was decided in the contract that Zoe agrees to publish book for
5000 copies for which he has visited a local printing company 5 star. Here another contract has
been formed between 5 star company and Zoe to Print 5000 copies at 15,000 Euro after certain
negotiation. When the deliver of Rom books arrive it has been seen that cover pages of all the
books were teared and they were not proper(Li, and Freeman, 2015). In this case a breach of
contract has been occurred on the part of 5 star and company shall be held liable for any kind of
payment of damages as it was clearly written in the terms and condition of 5 star payment slip
that in accordance to the agreement made by any party, they do not accept any liability if the
final copy of books are arising not in good quality in terms of font, type of color, size of paper,
photographs and image and number of copies in a given period of time but here when the final
copes arise the pages were crushed and scuffed which makes it enable to sell. In the terms and
condition of a contract, it was written no where the 5 star company shall not be liable if the pages
of books are crushed of scuffed hence the company shall be held liable for the breach of contract

as no proper services has been provided and it is clearly seen that a breach in the condition of a
contract occur in this(Appleman, Appleman, and Holmes, 2015).
2nd Contract
another contract which is being formed between Al and Zoe regarding the publication of
book. He wants to publish a book which will constitute of high resolution pictures of Rock and
Roll stars in revolutionary poses. Zoe further made a contract with 5 stars regarding the printing
of high resolution pictures. An order for the publication of 5000 books is being made to 5 star
company. It has bee further seen in this case that when the box of Al arise it has demanded for
some extra payment of money(Ndekugri, and Rycroft, 2014). Zoe made an allegation on 5 star
company that they have breach the contract. But in this case no breach of contract has been
occurred on the part of 5 star as it was clearly stated in the terms and condition of the agreement
that when ever the publication of any book include high resolution images then an additional
payment has to be made by the party. Such additional fee shall be unrestricted. So it is very clear
that a condition is being already mentioned by 5 star and such condition is accepted on the part
of Zoe as he has teared the slip off and give it to Al. Hence in this case 5 star company shall not
be held liable for any kind of damages occurring out of breach of contract.
3rd contract
The last contract in which Zoe entered is made between her and Kumari who is again a
writer and wants to publish her book. While the Kumari went for publishing her book, she
clearly mentioned that the book shall be made of 100% recycled paper. When the stock of book
came back from the printing company it is very much clear that a use of non recycled paper has
been used by printing company. But in this case also 5 star company shall not be held liable for
the usage of non-recycled paper as it was clearly stated by the manager of 5 star company that
they have some environmental policy included in terms and condition of an agreement made
between the party(Hall, Howells, and Watson, 2012). The environmental policy of 5 star
company stated that they have a strict environmental policy and where so ever it is necessary, the
company will try to use 100% recycle material. In order to giver consideration regarding the
safety of environment, the company shall try to use recycled material to the last extent
possibility. The environment consideration shall be carry out through out an agreement. The
policy does include an right to reserve in which they can use non recyclable material where they
prefer. Hence in this case 5 star company shall not be held liable for any kind of damages to be