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(PDF) The law of business associations

   

Added on  2021-05-31

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Law of Business Association 1LAW OF BUSINESS ASSOCIATIONBy (Student’s Name)Professor’s NameCollegeCourseDate
(PDF) The law of business associations_1
Law of Business Association 2Q1. Issue: A contract describes a legal document which binds two or more parties to oneanother. It needs one or both parties to meet the obligation ahead of its completion. Terminationof a contract can take place thus making it void of any legal binding. Strictly parties engaged insuch an agreement might trigger its termination. The issues are thus, could Michele be breachingthe contract after signing it under the Section 121(1) and 121 (2) of the Corporation Act 2001(Cth)? 1Law: A contract can be terminated due to lack of consideration; performanceimpossibility, contract breach, initial agreement, contract rescission, contract completion, thestatute of fraud, mutual mistake and misrepresentation. A contract must be legally binding andenforceable by law to and be an agreement made between two or additional parties. In this case,the termination of the contract seems to be caused by breach of a contract. Therefore, there is adispute between John and Motorbikes Pty Ltd. It is true that a contract has been signed by thethree parties. However, one party, Michelle is breaching the contract based on a claim of toomuch payment for the motorbike. Thus, there is a dispute between the company and John. Thuthe focus is to check whether the four elements of a contract are present to make this contract abinding one. Application: In this case, there is a dispute, and the parties are arguing whether thecontract or fundamental part of the contract, have been breached. The contract is between Johnand the company alongside Michelle, a contract’s party wants to end it. She Motorbikes PtyLtd.’s owner alongside Tim and director remains bound to contract and hence the firm. Being1Corporation Act 2001
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Law of Business Association 3that they Tim and Michele signed that contract at the time they purchased motorbike of Johnimplies their firm is bound by it. If they want to end contact, it is a requirement for them to agreeto termination. The contract termination’s rights emerge in 3 occasions: agreement’srenunciation or repudiation by a party; reasonably severe non-essential term breach; and a crucialterm’s violation. Here, if right to terminate surfaces, John shall decide on to either confirm thecontract and then proceed to claiming breach damages or he could end it and then claimcomplete loss of bargain damages. The company further needs to defend termination based onhaving a lawful right to perform this as well as if they stood knowledgeable or not duringcontract signing. As observed in Frumar vs. Guilfoyle Developments Pty Ltd. (2014) NSWCA225. 2 A significant element in the definition of if parties to a contract to have an intention ofimmediately bound by the change to the contract is existence of essential by either party to arapid agreement to other change as observed in Crown vs. Clarke (1927) 40 CLR 227. 3 Thechallenge in demonstrating oral contract is further demonstrated here. To sum up, Michelle, one of the owners of the firm already signed a contract. The signingimplied she had consented to contract terms. For her to later wish to withdraw from the contractstill leaves the company bound by a contract. Thus, Motorbikes Pty Ltd. remains bound by thecontract. Q2. Issue: Here, George remains the Cake shop’s owner where Sylvia and Gerard want topurchase. The company has been registered by them as “Cakes Pty Ltd”. Stamping of the seal is,however, done for the company during contract signing implying that George has entered a2Frumar vs. Guilfoyle Developments Pty Ltd. (2014) NSWCA 225.3Crown vs. Clarke (1927) 40 CLR 227
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