Formation of Contractual Relationships

This report discusses the concept of contract law and its blueprints, the court system in relation to the English legal system, and provides advice for Hilary regarding binding contracts with Amy, Eleanor, and Olivia. It also explores the remedies available for parties involved.

FORMATION OF
CONTRACTUAL
RELATIONSHIPS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................2
MAIN BODY..................................................................................................................................2
1. Contract law and its blue prints...............................................................................................2
2. Court system in relation to the English legal system and advise parties the court it may
pursue for action..........................................................................................................................4
3. Advise for Hilary related to binding contract that exist among each of the party i.e. Amy,
Eleanor and Olivia.......................................................................................................................4
4. Remedies for parties................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6
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INTRODUCTION
Business law is described as the law that administers with business-related matters
according to their several functions. In another words, it can be described as dealing with all
legal aspects that need to pursue at the time of running business activities to make sure about no
undue harm can be caused to other individual. On the other hand, ethics are related to moral
values, key philosophies and practices that need to be abided by the firm in order to enlarge and
nurture its trade operations and thus gain effective consumer satisfaction level. This report is
based on the case study of Amy, Hilary, Eleanor and Olivia which are involved with each other
due to some business law as well as ethical issues. So, in order to describe the whole concept,
this study will highlight the information related to contract law along with its blue prints and
courtyard arrangement related to English legal system. Moreover, the report will also consists of
advise for Hilary that whether the contract has been made with Amy, Eleanor and Olivia or not
along with substitute solutions for that (Beale, H., and et.al., 2019).
MAIN BODY
1. Contract law and its blue prints
Contract is defined as a lawful obligatory of people or common agreement between two or
more people that an individual will complete explicit task in exchange of something which
includes any physical object or money. It helps in order to describe about legal rights in clear
format and compulsion of particular individuals which includes exchange of products and
services or some kind of guarantee element (Swan, A., 2017). The blue print of contract law
involves six elements through which the whole concept has been described below in detailed
manner such as:
 Contractors offer: This is the primary element of the contract in which an individual
with desire of something that has been presented with another person along with the
interest of providing the same make an agreement between each other are known as
offer. In the contract procedure, one person make an offer to sale its product or services
and the other one is ready to accept the offer by exchange of goods and services in return
of something which could be anything in return of that product or equivalent of that
good or services. Such as in all of the above case Hilary has offered Amy, Eleanor and
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Olivia to make purchase of different merchandise at different situations in order to
satisfy their respective desires and thus gain some amount in respect of those things.
 Offer acceptance: At this stage, the offer given by an individual has been accepted or
rejected by the person to whom offer provided. As in the above case study none of the
parties have accepted the offer of Hilary except Amy. Amy wrote a letter to Hilary to
buy the product at the price of £1,000 but before the letter delivered she changed her
mind and said no to the offer.
 Consideration: The products and services that are provided in a contract are considered
for promise made by the offerer and offeree to provide the similar in swap over of
explicit worth or sum of money (Samuel, G., 2017). For instance, according to the case
study it has been identified that Hilary and Eleanor has agreed to give concern of
£10,000 for purchasing the printing press. On the other hand, in case of Hilary and Amy,
the consideration was of £1,000. And in Hilary and Olivia case, Hilary told to sell the
painting at £1 to the person who is the first customer to reach at their shop. So, all the
above mentioned situations are just considerations that have been created in order to
make purchase of goods and services.
 Legitimacy: It includes the completion of all documentation and legal formalities that
has been completed in order to make valid agreement between individuals. The position
and responsibilities have been clearly explained and completed by each of the parties.
 Capacity: It has been described that the parties need to get into contract which must
fulfil both lawful and contractual capability to accept the agreement. For instance, Hilary
has the capability to enter into the agreement as he was ready to sell the products
however; other parties are not interested to accept the offer given by Hilary to them.
 Mutuality: The agreement must be fulfilling the ability of mutual contract between
parties that are indulging within the contract. Likewise both the parties must have
interest according to their own i.e. one have interest to purchase the product and other
one have to pay for the same offered goods or services.
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2. Court system in relation to the English legal system and advise parties the court it may pursue
for action
The case study given is about the breach of contract law which comes under civil court
which is accountable for giving solutions for wrong committed cases of individuals and
creatures. In UK each case has individual system and does not support one combined
arrangement. For example, England and Wales have one system while Scotland have some
another. So, according to the case study the court systems in which parties are able to apply as
per English legal system are:
 The parties can go to court of appeal that deal with petition that has been came from
courts. Court of appeal has two separations such as civil division which hear petitions
that have came from country and high court. While criminal allotment hears appeals from
crown court connected with trial and serious wrongdoing. Thereby the decision has been
bind all of the court except the Supreme Court (Karton, J., 2017).
 High court is accountable for functioning of both civil as well as criminal court.
Moreover, it has three divisions family, chancery and queen bench so they are not
separate courts but have their own policies or ways to handle the situations. So, on the
basis of type of case each partition has been assigned to resolve as per the authority of the
high court.
Therefore, it can be evaluated that parties such as Hilary, Olivia, Eleanor and Amy for resolve
their key issues can go civil court in order to take right decision related to clear the confusion
that whether the contract has been made or not. The final decision of court will help in
minimising the chances of conflicts and whether anyone is accountable to pay any amount to
other or not.
3. Advise for Hilary related to binding contract that exist among each of the party i.e. Amy,
Eleanor and Olivia
From the whole situation that explained within the case study, it has been evaluated that
there is no binding agreement has been prepared between any of the parties accept Hilary and
Amy. Such as:
1. In the case of Hilary and Eleanor, Hilary advertised to sell his printing press at £15,000
and Eleanor shows their interest to purchase it at £10,000. But Hilary rejects the offer and
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state to sell it at £13,000. Since, Eleanor presets no reply from her side and thus the
whole procedure remains stable without creating any legal contract among both the
parties. Thus nobody is liable to pay anything (Fischer, M., 2017).
2. In another case, Hilary offers office computer on sale at the price of £1,000 and Amy
who wants that computer agrees to make purchase of it at the offered price. But before
the letter gets delivered which shows the consent of acceptance of Amy, she changed her
mind. So, contract has been made between Amy and Hilary as Amy has agrees to
purchase the product at offered price.
3. However, under last case Hilary and Olivia are not bounded in any legal agreement as
Hilary states that the first customer will be liable of the painting at just £1. So, there was
no valid contract has been prepared among both of them.
4. Remedies for parties
After evaluation of complete case study, it has been evaluated that there are certain solutions that
are available for each party to avoid critical situation or chaotic atmosphere. Explicit
performance, compensatory damages and liquidate damage are some of the remedies available to
Hilary, Amy, Eleanor and Olivia.
 Explicit performance: In this case, monetary damage is not appropriate for the
compensation of losses occurs.
 Compensatory damage: It is one way to resolve the issue with the help of paying the
amount of cash as compensation for damages caused to other party due to their particular
actions. Such as in case of Amy and Hilary, Amy agreed to purchase the item and if
Hilary has shipped the computer then Amy was liable to pay delivery charges in order to
compensate the amount (Dewi, G., 2021).
 Liquidate damage: In this case, parties are agrees to pay specific amount because due to
breach of contract such as in case of Amy and Hilary, Amy has to pay certain amount of
money as per her wish to liquidate the damages made to Hilary.
CONCLUSION
From the above case study it has been concluded that Contract law is applicable to those
who are binding in legal agreements in order to perform specific task. The law is helpful in
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resolving key issues faced by individual parties in order to make them satisfied. At the end, the
study has been summarised that parties with the help of above remedy options are able to resolve
issues and compensate for losses that has been incurred by Hilary or any other party that are
involved in agreement.
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REFERENCES
Books and journals
Beale, H., and et.al., 2019. Cases, materials and text on contract law. Bloomsbury Publishing.
Swan, A., 2017. Contract Law and Contract Practice: Bridging the Gap between Legal
Reasoning and Commercial Expectation.
Samuel, G., 2017. Contract and the comparatist: should we think about contract in terms of
‘contracticles’?. In Comparative Contract Law. Edward Elgar Publishing.
Karton, J., 2017. The Rise of Sectorally Differentiated Contract Law. AJIL Unbound, 111,
pp.106-111.
Fischer, M., 2017. Cancellation and anticipatory breach of contract. South African Law
Journal, 134(3). pp.543-575.
Dewi, G., 2021. THE APPLICATION OF ISLAMIC BUSINESS CONTRACT IN THE
NATIONAL LAW REGULATIONS (THE COMPARISON BETWEEN COUNTRIES
WITH CIVIL LAW SYSTEMS AND COMMON LAW SYSTEMS). Journal of
Islamic Law Studies, 4(1). p.3.
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