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The Law of Contract - Assignment

   

Added on  2021-05-31

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1ContentsSolution 1....................................................................................................................................................2Issue........................................................................................................................................................2Law..........................................................................................................................................................2Application..............................................................................................................................................3Conclusion...............................................................................................................................................4The rules on intention to create legal relations in agreements..................................................................4Solution 3....................................................................................................................................................5Issue........................................................................................................................................................5Law..........................................................................................................................................................5Application..............................................................................................................................................6Conclusion...............................................................................................................................................6Solution 4....................................................................................................................................................7How a misrepresentation can affect a contract and the remedies available..............................................7Solution 5....................................................................................................................................................8Issue........................................................................................................................................................8Law..........................................................................................................................................................8Application..............................................................................................................................................9Conclusion...............................................................................................................................................9Solution 6....................................................................................................................................................9A.Difference amid conditions and warranties......................................................................................9B.How can terms be implied into contracts?.....................................................................................10Solution 7..................................................................................................................................................10Issue......................................................................................................................................................10Law........................................................................................................................................................10Application............................................................................................................................................11Conclusion.............................................................................................................................................11Reference List...........................................................................................................................................12
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2Solution 1IssueWith whom Darren had a binding contract, Jane or Peter or Rob? LawIn order to make a valid contract it is necessary that there must be: (Collins, 2003)An agreement – An agreement is made when an offer is supported by an acceptance.An offer is a statement made by an offeror to an offeree specifying the acts /omission that theofferor intends the offeree to comply with and expects an approval from the offeree and is heldin Carlill -v- Carbolic Smoke Ball Co. (1893). In Harvey -v- Facey (1893), it was held that anoffer must be unequivocal in order to be valid. An invitation to treat is different from an offer. In invitation to treat an inviter invites offers fromthe public by displaying a notice, advertisement, tender, auction, display, etc. In Partridge -v-Crittenden (1968), an advertisement is held to be an invitation and not an offer. Any person whois interested in the advertisement must make an offer to the inviter and when the invter confirmsthe offer then it results in the formation of an agreement and is held in C. A. Norgren Co. andothers -v- Technomarketing and others (1983).When the offer is confirmed by the offeree then it is an acceptance in law. An acceptance is validwhen the same is made confirming the terms of the offer and is held in Brogden -v- MetropolitanRailway Co. (1877). If an acceptance is made by changing the terms of the offer then it is acounter offer which has the capacity to cancel the original offer. It is the counter offer which isconstrued as the new offer and if approved results in contract formation and is held in Hyde -V-Wrench (1840).An agreement must be supported with Legal intention, Consideration and Capacity to make avalid contract. The law is now applied.
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3ApplicationAn advertisement was posted by Darren Shaw in a local newspaper according to which:An 18th Century gentlemen’s chair is for sale @ £300.00and are available in green and goldcolor. Any person who is interested must write to D. Shaw, 15 Coggleworth Road,Monshire, MN8 Z88 or call 07088888.”It is submitted that as per Partridge -v- Crittenden (1968), an advertisement is an invitation totreat. Thus, if any person intends to buy the chair then he must make an offer to DarrenShaw.Contract with Jane Jane was interested in the advertisement and writes a letter specifying that he would like to seethe photograph of the chair and offer to accept £250.00 for the chair.Now, since the advertisement is an invitation, thus, Jane must make an offer to Darren which ifaccepted result in contract.Thus, an offer is made by Jane to Darren to buy the chair @£250.00 along with the intention ofviewing the photograph of the chair. However, the offer made by Jane is not accepted by Darren. Contract with PeterPeter also wrote a letter to Darren on Saturday (6PM) that he intends to buy the chair @ £300.00and enclosed a cheque of the said amount. He further asked as whether he can come andpick the chair next weekend. However, the offer made by Peter is not accepted by Darren. Contract with RobRob called Darren on Sunday at 2 pm. He submitted that he intends to buy the chair @ £250.00. Thus, an offer is made by Rob to Darren.
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4It is necessary that Darren must accept the offer of Rob to make a binding contract.However, Darren did not accept the offer of Rob and submitted that he would like to sell thechair at take £275.00. Thus, a counter offer is made by Darren and the offer that is made by Robstands nullified by applying the rule under Hyde -V- Wrench (1840). The only offer that is validnow is the new offer that is made by Darren, that is, to sell the chair @ £275.00.The offer of Darren was accepted by Rob.ConclusionSince the offer of Darren was accepted by Rob thus there is a valid contract amid the two. The offers made by Jane and Peter were not accepted by Darren and thus there is no contractwith them.Solution 2The rules on intention to create legal relations in agreementsWhenever any contract is made then the main elements includes agreement (offer andacceptance), consideration, capacity and legal intention of the parties.The legal intention of the parties plays significant role in contract formation. In Air Great LakesPty Ltd v KS Easter (Holdings) Pty Ltd [1989], it was held that any contract without any legalintention has no relevance and cannot be enforced in law. Legal intention specifies that theparties to the contract intend to abide by the terms of the contract legally and are willing to go tocourt to settle disputes in any arises during the term of the contract.Now contract can be: (Cheshire and Fifoot, 1984)i.Domestic in nature: It is a general presumption that when any contract is made amidthe parties who are in the friendly or domestic or social relationship, then, the partiesnever intend to abide by the contract legally and is held in Balfour -v- Balfour (1919).Such contract have no relevance in law and are gratuitous in nature. But the presumption can be rebutted and it was held in Merritt -v- Merritt (1970) andSimpkins -v- Pays (1955) that if evidence can be laid which portrays that the parties in
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