Enforceable Contracts in Commercial Law: A Case Study Analysis

COMMERCIAL LAW
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COMMERICAL LAW
(i) The key issue in the given case is to determine if there is an enforceable contract and also
highlight the party with which Brock has the same.
A key requirement with regards to formation of contract is enactment of valid agreement.
This involves a valid offer from the offeror which needs to be unconditionally accepted by
the offeree (Edlin 73). Also, there should be mutual consent from the contracting parties
without the presence of any duress and misrepresentation. Duress may be physical or
economic. This happens when the consent of the contracting party is obtained through force
and is not voluntary (Andrews 121). Additionally, it is imperative that the consent to act in a
certain manner must not be based on misrepresentation or false representation of facts. In
case of fraudulent misrepresentation as highlighted in Barron v Kelly (1918) 56 SCR 455, the
contract would be considered voidable. Increasingly, in the Canadian context, it is considered
vital that the contracting parties must conduct in good faith. Also, in case of breach of
contract, various remedies are available to the innocent party. These would include awarding
of damages, injunction and specific performance (Peel 67)
In the given scenario, an antique chair has been purchased by Brock for $ 150 from a garage
sale. This antique chair is displayed in his shop for a price of $ 500. An offer has been given
for the purchase of antique chair by Laura for a consideration of $ 300. This offer is extended
to Brock who offers acceptance to this offer. As a result, valid agreement for the sale of
antique chair is enacted between Laura and Brock. Laura made a $ 100 deposit and vowed to
pay the remaining balance at the time of picking the chair. An invoice was issued by Brock
which was signed by Laura thereby resulting in formation of an enforceable contract through
writing (Taylor and Taylor 73).
The next week, Andrew who is an antique dealer visited Brock’s shop and highlighted that a
chair was a rare specimen and date to 1812. Andrew offered to buy the chair for $ 10,000.
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