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Study on Business Law and Ethics

   

Added on  2020-04-07

13 Pages3356 Words158 Views
Running head: BUSINESS LAW AND ETHICSContractual ProblemsName of the student:Name of the university:Author note

1BUSINESS LAW AND ETHICSTask 1Definition of Contract:Contract is a legal document where the parties give their consent over certain issues.The nature of the contract is that it has a binding nature (Bokor House & Smith, 2016). Therule of contract follows civil traditions and the parties to the contract accrue certain rights andduties through the agreement. Simply, contract is an agreement that is binds by law. There arecertain essential elements of the contract and the parties also have to be the capacity to enterinto a contract. it is the well known principle of law that the person who did not attained themajority or who has no sound mind cannot be a party to the contract (Callea, Ingusci &Chirumbolo, 2016). In the continent of New Zealand, an agreement of contract is governed by two typesof law such as legal obligations made by parties through the contractual agreement and legalprovisions imposed by the court. It has been mentioned under the law of New Zealand thatthe contract is formed with certain obligations and for certain consideration. The terms of thecontractual agreement should be predictable and clear in nature (Sherwin, 2015).Difference between contract and other agreements:There is a phrase under the law of contract that every contract is agreement but notevery agreement is contract. There are certain differences in between the contract andagreement, which are as follows:The contractual agreement should be enforceable by law, but ordinary agreements arenot required to be bind by law.In case of the valid contract, legal involvement is mandatory, but in case of ordinaryagreement, legal involvement is not mandatory.

2BUSINESS LAW AND ETHICSThe nature of the contractual agreement is quite serious in nature, but not all theagreements are serious in nature. There are many agreements that can be of ordinaryin nature (Griffith & Zhao, 2015). The breach regarding the contractual agreement is more serious from the breachregarding the ordinary agreement. Difference between simple contract and deed:Both the contract and deed are the legal documents and they are written in nature(Gupta, Agarwal & Khatri, 2016). However, there are certain differences take place inbetween both the terms that are as follows:Under the simple contract, the intention of the parties is important. Through thecontract, both the parties wanted to engage themselves into legal relationships, andthere is no necessity to sign the contract by certain witnesses.On the other hand, in case of deed, there must be certain provisions regarding thesignature by the witnesses in front of whom the deed has been executed and theparties to the deed have put their signature in the deed (Wei et al., 2015).In case of simple contract, certain times have been mentioned and the terms areusually valid up to six years. Therefore, it can be stated that the party can makeallegations regarding breach of contract within the mentioned period.No time limits have been prescribed in the deed and the potential advantage regardingthe deed is that the statutory limitation of the deed is more than the contract. The deed affirms or confirms the right and interest of the person or the property andthe nature of the deed are transferring in nature.

3BUSINESS LAW AND ETHICSIn case of contract, rights and liabilities of the parties are not transferred rather it isestablished through the contract and the parties are bound by the law to protect theserights and interests (Moynihan & Kroll, 2016). Elements of valid contract:Contract can be of three types such as valid, void and voidable. There are number ofessentials ought to present in the contractual agreement to make it valid. If the requirementsare not fulfilled, the contract will be considered as void. The elements of the valid contractare as follows:Offer and acceptance:Intention of the parties;Consideration;Capacity and Certainty. A contract is an agreement that narrates the rights and liabilities of the parties regardingcertain things and it consists of offer and acceptance regarding the subject matter (Bamfo-Agyei, Hackman & Nani, 2015). These two terms are the traditional approach regarding thecontract. According to Trietel, offer is an expression that denotes the willingness of a personregarding certain things and has an intention to bind himself legally. The offer consists ofcontractual intention. It has been provided in Smith v Hughes that not the intention of theparty but the reasonableness of the party regarding the matter develops the offer. Nature ofthe contract is depending on the nature of the offer. If an offer has been made with anintention to get certain acts, the contract will become unilateral contract. the idea of unilateralcontract can be demonstrated by the case Carlill v Carbolic Smoke Ball Co. Where thepromise regarding the offer is exchanged, it becomes bilateral contract.

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