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BUS307 - Business Law - Question Answer

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UNIVERSITY OF REGINA

   

Business Law (BUS307)

   

Added on  2020-03-01

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This paper will discuss the questions related to business law such are explaining briefly each of the components required to demonstrate that a binding contract exists, and explaining the ‘formalities’ of such a contract with examples. This paper will also discuss why is it important under the law to distinguish between a party who is an agent for a principal.

BUS307 - Business Law - Question Answer

   

UNIVERSITY OF REGINA

   

Business Law (BUS307)

   Added on 2020-03-01

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Running Head: BUSINESS LAW 1BUSINESS LAWNameInstitutionCourseInstructorDate
BUS307 - Business Law - Question Answer_1
BUSINESS LAW21.Elements of a Binding Contract-Contracts can either be written or oral depending on the key elements which must be present; offer acceptance and consideration with the intention of creating an agreement which is legally binding. Also,there should be capacity and legality.Offer- An offer is made when one party proposes and is accepted by the other party. This shouldbe distinguished from mere intentions to negotiate. It is a forbearance or a return promise, for the exchange of performance for the promise. It demonstrates the willingness to enter into the bargain so that the other party's willingness is justified as a conclusion of the agreement. An offer should have terms which are certain and intent to enter into a contract (Cross, & Miller,2012)There should also be acceptance which is a definite and unconditional agreement set out in the offer. It can be written or oral, and has to reflect the originally made offer.Consideration- the parties to the contract must receive something of value or significant, in which in the absence of such a thing, they would be disadvantaged.Capacity- capacity covers mental capability of a person to enter a contract. It covers infancy andmental competence to enter into a contract. If one of the parties does not have the mental competence to sign a contract, then a contract will not be binding. Similarly, those considered as children under the law, mostly 18 years and in other countries like America 16 years are considered to lack capacity to consent and hence enter into a valid contract.Intention to be legally bound by agreement- There should also be the intention to create binding relations. If a person A promises person B to give them money so as to go somewhere together, and person A fails to give money to B after going together, then person A cannot be
BUS307 - Business Law - Question Answer_2
BUSINESS LAW3sued for the money because their intentions at the promise were more of social as opposed to creating an agreement which is legally binding (Bowrey, Handler, & Nicol, 2015)..2.Do Contracts have to be in Writing to Be bindingA contract can be oral or written, but certain contracts are not binding and enforceable unless they are in writing. Such contracts include contracts of sale and buying of land and mortgage contracts. Agreements of sale and finance credit agreements for consumers. Most oral contracts are enforceable but difficult to prove the details of the agreement. If an agreement is not in writing, the elements of a valid contract should be fulfilled. In Gordon V Macgregor (1909) 8CLR 316, High Court of Australia the CJ held that when an oral contract is entered into in writing then the written contract is the only evidence which will be administered in court, unless it is proven that the written contract did not embody all the factors in the agreement (Ayres, & Ayres, 2012).Oral agreements are generally legally binding as long as they are conscionable, made in good faith equitable and reasonable. Oral contracts also require consent and mutual understanding where both parties are aware of what is going on. If for example a person hires a cleaner, both parties should know how many rooms are being cleaned. Oral contracts are difficult to enforce because they present many difficulties. Other contracts are silent and do not even require words like going to a convenience store and purchasing bread. Written contracts have some advantages;they are definite and clear, and the signatures of both parties are in record to show the intentions to be legally bound. To sum up, when there is good faith when parties come into a transaction, it important that a contract is put into writing so as to avoid disputes. The parole rule of evidence prevents outside evidence on oral agreements where there are no ambiguous aspects. In JoachimV Weldon 1962 OK 276, the court held that if an oral contract is to be enforced by a court of
BUS307 - Business Law - Question Answer_3

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