(Doc) Contract Law Case Study

CONTRACT LAW,
BUSINESS ETHICS AND
TERMS OF CONTRACT

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Question 1: .............................................................................................................................1
Question 2: Discussing Rebecca's potential Liability regarding the Floweriest shops..........3
Question 3: Type of term .......................................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Laws are the system of rules and procedure which are enacted by the government and
implemented on society and people to maintain ethical behaviours in the country. Laws are
generally imposed on person and companies to work according to the government norms and
they are bound to follow the rules govern by the government. This helps companies and people
to know their rights and can also file cases if their rights are infringement. Contract law is that
contract which is made between the parties and they are legally bound to follow the rules which
are mentioned in the contract. This report includes the case of Daniel and Brandon and their
agreement under the contract. Further its includes the business entities' relationship between
Rebecca and Joel and their agreement regarding to start up business. Lastly the case study
relating to terms of contract between the Dani and Steve regarding opening a beauty salon.
MAIN BODY
Question 1:
Issue: In the case of Daniel V Brandon, Daniel entered into the contract with the Brandon
regarding the construction of new swimming pool Paved and landscaped. They made an
agreement with the contracted amount for $40,000 and Daniel will pay that amount at the end of
completion of work (Curtis and Clare, 2017). After work is completed there is mutual
consideration between both the parties that payment is settled with $25,000. But the issue arise
that after receiving the letter from Daniel regarding getting lottery For $500,000, Brandon
decided to get the full payment of the work done. At the time of contract they both are mutually
agreed with the payment which Daniel is offering but after receiving letter form Daniel, Brandon
mind is changes and the demand for money is also increased for the remaining amount. The
issue is that Daniel is refusing to the pay amount to Brandon.
Rules: Under the Contract Law, when both the partiers are entered into the agreement which is
legally binding on the both the parties are legal in the eyes of law are termed to be contract.
Various condition are fulfilled to enter into a valid contract (Contract Law in Australia, 2016).
Under the contract law, the elements under which the valid contact is identifies is regarding to
the capacity of the parties and the agreement which they are entering is regarding to
consideration. The elements of the contract consist of offer, acceptance, consideration etc.
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Application: As per this case, the agreement between the parties and the amount which they are
mutually settled is regarding to the consideration between both the parties. Under the contract
law, to enter into agreement there must be two parties to enter into a contract and both are not
disqualified by court to enter into the contract. To prove the contract, the contract must be made
between the partiers who attained the age of majority and are competent to take decision against
the contact (Ramsay and Tan, 2018). The contact which are made is not against the public policy
and not immoral to principles of justice. In this case Daniel and Brandon entered into the
contract which is not affecting any public matters or not against any government norms. The
issue arises that Brandon wants the full payment but before that he only accepted the payment
which is offered by Daniel. In this case, Brandon cannot commit the remaining payment until he
accepted the payment before. In the rule of contract law regarding to consideration of settled
money, if both the parties agree on something which is legal and requires no boundation than the
matter is settled under the consideration of the contact law (Graziano, 2019).
So as per this case study Brandon can not demand for the remaining payment as the rights
are not there that after getting to know about the lottery of Daniel, he demanded money. The
contract is that the money which Daniel is offering had to be accepted by the Brandon and
Brandon cannot file the case after receiving the money (Siedel and Haapio, 2016). As there is no
such rule that after the contract is completed he can demand the amount in case of time lapsing
of contract. As in that case the contract becomes Void and the party cannot file complain against
the recovery of money. The contract will be valid if the Brandon didn't accept the payment after
the work is completed or refuse at that time when Daniel offers that payment which is half of the
price which is fixed at the time of entering into the contract (Poole, 2016).
Conclusion: From the above study it can conclude that the demand is against the contract and
norms of the law. As after lapsing of time, if the money is demanded for the work done and the
amount is settled as per the decided consideration. Then the demand is unlawful in the eyes of
the law. Daniel has the right to refuse to Brandon for the amount demand and they can even file
the suit as the contract is made under the terms and condition and both the parties are agreed
under the terms of consideration. Contract law is valid if they are between the parties of sound
mind and both the parties are capable to carry the contract effectively. The contract is valid till it
doesn't become voids and not restricted or order by the court to result in voidable contract. As
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per the case of Re Stewart V Casey 1, in this case the employee contributed their work timing to
create an invention at the request of employer and in return when the work is completed
employer promised to pay the amount of profits to employee. This is considerations as no parties
are bound to follow the rules and principles. The past consideration which was given by
Brandon by discount of $15000 but no consideration was given by Daniel and thus Brandon is
eligible to claim for the recovery of $15,000.
Question 2: Discussing Rebecca's potential Liability regarding the Floweriest shops.
According to Partnership Act 1892 when the parties enter into an agreement they share
the profits and losses of the company. As per the decided case to Rebecca and Joel both enter
into an agreement to start the floweriest shops (Goh, Lee and Tham, 2016). Joel brings $50,000
as capital for their start-up business and Rebecca brings her van, tools and other equipment
which can be considered in the terms of money under the business plan and they both named that
business as Fusion Flowers.
As per case A, Rebecca not know the facts that Joel buy flowers from Ooh Orchids and
after the truth came up she refused that she will not deal in such costly flowers. Ooh orchids had
demand the payment of outstanding invoice of $1500 from Rebecca. This is the case of
misrepresentation under the company act. As they both are partner under the companies and both
have the rights to take decision which provide growth to the company (Forsyth, 2018). In case of
misrepresentation, one parties misrepresent the important information of the company from the
partner or shareholders which can arise losses or fraud in company aspects. As in the case of
Edgington V Fitzmaurice (1885), A company prospects states that company debentures are used
for the growth and expansion of the business but the truth is that it is used for pressing of the
debts of the company. In this case misrepresentation is done regarding the company matters
(Beale and et.al., 2018.).
Case B, as the case is resulted to vicarious liability. In this, the liability of the Rebecca
occurs as she forced the driver to deliver the orders of the flowers within the stipulated time. In
vicarious liability the situation occurs when someone is held responsible for other defects and it
causes damaged to other person. This act is liable to be committed during course of employment.
Similarly, in this case the matters Is related to the mistake if the Rebecca as due to her force to
1 (Casey's patents) (1892,CA)
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driver and her rash driving cause injury to the other person which causes damage as amount of
$5000 (Campbell, Mulcahy and Wheeler, 2017). The driver is not responsible for any damages
as he is during course of employment. In this case Rebecca is liable to pay debts. As the case of
Prince Alfred college Inc. V ADC In this case ADC is sexually abuser by the headmaster of the
Prince Alfred college for various times during course of their college timing. This is result in
vicarious liability as it is committed during the college hours and the headmaster is liable to be
punished under this crime. Rebecca can pursue Joel through civil action to recover his share of
these cost because as per partnership Act Partners may be held jointly and severally
liable for the full extent of debts incurred in the course of the partnership.
Case C, In this case the Rebecca can start a separate business as they have not sign such
bond as they cannot deal with some other business. As Rebecca is not carrying the business of
their previous name she is liable to carry the business of different name as this not affecting their
previous business. As also the sales rates is not decreasing due to their other business
(Giancaspro, 2017). Under the companies Act, it is the duties of directors to carry the business as
per their own choice. As in case of Freeman & Lockyer V Buckhurst Park Properties(Mangal)
Ltd (1964) the directors is conducted crime which is punishable under the offence. As their
behaviours is judges by company and their rights are affecting. This results in the decision of
directors to remove him or not under the companies Act.
Question 3: Type of term
a ) terms
4. The terms in which the contractor will engage the interior decoration consultant is the
express terms of the contract because the contractor has expressed the condition in which it will
perform the contract (Tarr, 2017). It is important that Dani and steve must review the contract in
order to accept or reject the terms of contract.
19. The terms which are included in this contract consist of stipulated time frame for the
construction and payment schedule. It is the implied term of the contract because it is implied by
the statue that the contract must have specified time frame.
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26. The client agrees that the contractor will not be liable for breach because it is an express
terms for the contract. (Lindgren, 2016). The express terms of the contract are express and
agreed by the parties.
b) Characteristics of type of terms discussed
4. It includes the express terms for the contract. The express terms of the contract are stated
by both the parties and been expressed by the offerer. If there is breach of contract then the
injured party is liable to claim for the compensation (Duncan and Christensen, 2017). for the
breach of express contract the party can claim for the damages and the specific performance as
the express contract is usually formed in written. The breach of condition leads to repudiator
breach. Moreover, if the contractor refuse to perform the agreed work contained in the contract
then the client is liable for the damages and the specific performance related to the breach. It has
provided warranty and thus it allow the injured party to sue for damages.
9. In these terms of contract there was a implied contract because it is implied in the
contract law that the contract must have the specified time frame (Klee, 2015). If any of the party
causes the breach of implied contract than it is legal liability of the parties to face the
consequences and to pay the damages. Moreover, a legal compliant is created when one of the
party of implied contract breaches the agreement. So, if there is any breach of implied contract
by any of the party than the parties are liable for the legal consequences related to the contract.
Implied con tract are implied by law or implied by fact. As per the Clause 19, the injured party
can rescind from the contract and can sue the party for the damages.
26. It is the expressed term of contract because it is agreed by both the parties that the
contractor will not be liable for the breach of contract caused by the action of itself, its
employees and sub – contractor (McKendrick and Liu, 2015). But if the contractor is not able to
perform its part of the contract then it is liable for the negligence held on its side and has to face
the consequence for the breach of contract. So, if the contract is having specific remedies for the
breach of contract due to any other reason than the action of itself, its employees and sub-
contractor then the contractor is not liable to pay off the liability for the damages due to breach
of contract. As per the exclusion clause and thus it is considered to be warranty. When the
contract is signed by the parties they are legally bound to perform the contract. If any party
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breach the exclusion clause of the contract than theinjured party is allowed to due the party for
damages.
CONCLUSION
From the above study it can conclude that contract law helps the business and parties who
enters into the contact with the parties. To enter into a contract the agreement is made between
the parties and both are liable to enter into the valid contract. The contract is fulfilled if the
parties are capable to fulfill the terms and condition which are legal in the eyes of law.
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REFERENCES
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