Fundamentals of Law - Explanation of Terms, Contracts, Misinterpretation, Sales of Goods Ordinance, Partnership

This article covers the fundamentals of law including explanation of terms like Delegated Legislation, Common Law, Ratio Decidendi, Contracts, Misinterpretation, Sales of Goods Ordinance, and Partnership. It also includes details that should be included in the Articles of Partnership.

FUNDAMENTALS OF
LAW

Contents
Question 1........................................................................................................................................3
Explain the meaning of each of the following terms;......................................................................3
Question 2........................................................................................................................................4
What is a contract? What effects does it have in the business world..............................................4
Question 3........................................................................................................................................5
Can you explain what misinterpretation in a contract is? Why it is important to understand the
contract before signing?...................................................................................................................5
Question 4........................................................................................................................................5
Define the sales of Goods Ordinance? Give one example also.......................................................5
Question 5........................................................................................................................................6
Define the term Partnership? What are some of the details that should be included in the
“Articles of Partnership”..................................................................................................................6
REFRENCES...................................................................................................................................7
Books and Journal ...........................................................................................................................7

Question 1
Explain the meaning of each of the following terms;
I) Delegated Legislation- The subsidiary legislation of Hong Kong is made with the
powers delegated to the lower governmental authorities who are lower in the rank to the
legislature or who is subordinate to the legislature. The delegated legislation is a
secondary legislation made by a person or body other than the parliament. Some
Examples of delegated legislations are; regulations, standards and ordinance. Because,
the delegated laws are not made by the parliament and it requires amendments in an
existing law.
II) Common Law- These are the laws of Hong Kong which are derived from the
judgements of courts in Hong Kong. There is one country but there are two legal systems.
The HKSAR legal system, which is different from the law of Mainland China, that legal
system runs as a common law.
III) Ratio Decidendi- It means, “rationale for the decision”.The essentials of the
judgements of the Supreme Court of Hong Kong which binds the precedent and it is
followed by the subordinate courts, unlike the obiter dicta, which do not possess
binding authority.
Question 2
What is a contract? What effects does it have in the business world
The contract law of Hong Kong is the agreement which contain some rules and
regulations and some legal provisions, which bounds the parties to fulfil their part of promises.
The parties of an agreement who are interested to forma a contract must fully aware about the
legal formalities before entering into the contract. There are some stages of making the contract
to make it valid like, Offer, Acceptance, Consideration and the certainty. The idea of the contract
law in Hong Kong is taken by the common law of England.
Hong Kong is the international business hub. The foreign investors and businesses from
all over the world are situated there. The contract can be made in any form in Hong Kong like
England, it covers the huge area of agreements, some areas are regulated differently according to
the particular field in which they are concluded. The person or the corporation are entitle to

frame a contract, the law doesn't allow minors, mentally ill peoples and corporations. The
contract can be made between the individuals, between the entities or the foreign companies. The
international contract required a governing law clause, which has specifically stipulates in the
applicable law of Hong Kong.
The judgements from outside the territory of Hong Kong can be enforced under the
Foreign Judgements Ordinance of the country, the registration is necessary before enforcing.
This registration is necessary to enforce the law. To resolve the disputes, the contractual parties
should mention the manner in which they are ready to resolve the dispute made under the
agreement. The same manner should also mention in the governing law according to that, the
dispute can be solve.
Question 3
Can you explain what misinterpretation in a contract is? Why it is important
to understand the contract before signing?
The term misinterpretation in a contract law is about, providing the inaccurate
information by either of the party or their agent. If the transaction which has been made in a
contract lead by fraud or amounting to fraud( misrepresentation) or by the mistakes of both the
party on the fundamental character, the contract will become void . The party against whom the
fraud information or transaction is made taking action in a court. Where the misinterpretation is
made innocently, the court will not order to return the amount but, the court may in its discretion
award damages instead of reversing the transfer.
Before signing a contract it is important to know about the transaction which are made in a
contract. It is very important to get aware about the clauses added in a contract, and if something
is not understandable the party have to amend that clause or discuss it with the other part of the
contract. In a contract or any legal document, signature plays an important and the main role to
make that contract or the document readable. If there is a signature in a contract paper it means,
the party would got aware about the contract and there is no objection in the parties part. It takes
very less time to do the signature on a paper but, it will give a wide meaning of it. Any one can
misuse the signature of anyone, and make the other part liable to perform their part of the
contract. It is better to introduce a lawyer between the contract, who makes the part understand

about the contract. There are so many incidents of forge contract and fraud all around the world,
the thugs will acquire the properties or the money to make a forged contract with the innocent
people by giving them an exciting offer. So, there is great value the signature in a contract and
before signing the contract it is beneficial to go through with all the clauses added in a contract.
Question 4
Define the sales of Goods Ordinance? Give one example also.
The sale of Goods is an ordinance it means, it is not made by the parliament. It provides
that, the goods which are for the sale must be of best quality. It means, the product which are
ready for sale must be same with the demand of the buyer . Its an Ordinance, it is just like a law
but, it is not made by the parliament, it is passed by the president of the State who took this
decision in the absence of the parliament. Only those goods can be sold out in this act which are:
Merchantable- it means the goods must meet the standard with the demand of the reasonable
person.
Fit for Purposes- for example; if the person want a CD player and the person wants to play
DVD also in it, the seller is not allowed to give a CD player to the buyer. The product should be
supplied with the same demand and condition.
Be consistent with the sample- if the buyer wants to purchase the products in a bulk and the
purchaser seen the sample of the product, For Example; the buyer purchases 100 piece of t shirt
and his demand is the t shirt should be 100% cotton, the buyer check the sample then, it should
not be turned out to be a polyester. It is mandatory for the seller to provide the same quantity and
the quality for which the buyer asked.
Question 5
Define the term Partnership? What are some of the details that should be
included in the “Articles of Partnership”.
The term partnership is defined as, “ it is the relation between parson decided to
carrying a business together with a common motive of profit” it should not be an incorporated
company or the joint stock company. If the business entity got register itself with the Registrar

of the company it would turn as a Limited Partnership, and if the business entity didn't register
with the Registrar of the companies then, it is known as the General partnership.
Limited Partnership- all the partners are accountable for the debts and obligations of the
firm, and financial values will be divided within the members in the firm.
General Partnership- the partners of the firm are considered to all together to be
obligated for the arrears and other considered blames of a company.
In the article of partnerships, the legal statues are considered to be involved in the
business purview and the partnership statues, by the formations of the legal document, which
will include the collective sharing of the components of the losses, liabilities and profits.
The characteristics which the articles of partnership will advocate, that includes :
 Each party must contribute sum of fiscal values.
 The state of affairs of the arguments will be determined to be notion in the regulations of
arbitrations
 Mentioning the state of affairs, where the partner can be terminated
The details which are crucial to be mention in the article of partnership:
 Name of the parties within the partnerships
 The place of business
 The terms of the partnership
 The mandate contribution of every partnership in the partnership

REFRENCES
Books and Journal
Lau, C.H., Mesthrige, J.W., Lam, P.T. and Javed, A.A., 2019. The challenges of adopting new
engineering contract: A Hong Kong study. Engineering, construction and architectural
management.
Li, W. and Yang, B., 2020. Politics, markets, and modes of contract governance: Regulating
social services in Shanghai and Chongqing, China. The ANNALS of the American
Academy of Political and Social Science, 691(1), pp.121-137.
Wong, J.L., 2018. Why social capital is important for mentoring capacity building of mentors: a
case study in Hong Kong. Teachers and Teaching, 24(6), pp.706-718.