Business Law Case Study: Contracts and Legal Principles

This case study analyzes a business law scenario involving a conflict between Noah and Cole concerning flight ticket bookings. It explores the formation of a contract, focusing on offer, acceptance, and the communication of acceptance. The study examines whether a binding contract was established, considering the principles of contract law. The case also delves into issues of intention to create legal relations and consideration, particularly in the context of family arrangements and discounted offers. The analysis applies relevant case law, such as Hyde v Wrench and Henthorn v Fraser, to determine the validity of the contract and the potential remedies available to Noah for breach of contract. The conclusion emphasizes the importance of contract law in business and provides insights into the rights and obligations of parties involved in contractual agreements.

BUSINESS LAW CASE STUDY

Contents
INTRODUCTION.................................................................................................................... 3
QUESTION 1...................................................................................................................... 3
QUESTION 2...................................................................................................................... 4
CONCLUSION....................................................................................................................... 6
REFERENCES....................................................................................................................... 7

INTRODUCTION
In this present case scenario the conflict is raised between the Noah and Cole
regarding making agreement for booking the flight tickets for the particular
consideration amount. In respect of facing issues between the Cole and BOZO, the
impact raised upon Noah in respect of cancellation of the tickets. Thus, in this case
the discussion is based upon carrying the understanding of the contract law and also
the elements of the intention and consideration have been satisfied in this case
scenario or not.
QUESTION 1
STEP 1: Identify the areas of law
In the present case Norah has got the offer from Cole regarding the tour trip
via email. This email informed the Norah about the offer of tour to be available at
14800. Norah accepted the offer made by Cole and sent the mail for communication
of acceptance of offer. However it is found that the email not received by Cole as her
internet was working. Due to this Cole did not booked the tickets for Norah as
acceptance was not received by Cole. In the present case it required to analyse as
per the contract law whether the contractual agreement established between the
Cole and Norah and whether she can claim compensation for the same.
STEP 2: Discussing law principles
In the present case the Norah has not yet achieved the level of binding
contract. They are in the stage of offer and acceptance. Contractual agreement is
traditionally analysed in the term of offer and acceptance. An offer made by the
offeror is required to be accepted by the offerree to create a binding contract (Butler
and Mueller, B 2016). This includes the offer & invitation of treating them as the
contractual agreement.
Offer
For amounting to be an offer it is required to show intention to bound. There
should be promise of being bounded. There should be specific terms. Conduct or the
words of party should be showing certainty. There should be no room for the
negotiation.
Invitation to offer
Offer is required to be distinguished from the invitation of treating. Offer will be
leading to the binding contract only acceptance, invitation to treat could not be
treated as acceptance. Invitation there is room for negotiation of the contracts.
There is invitation for the offers. There is Lack of uncertainty.
Acceptance

Binding relationship is established when the offer is accepted by the offeree.
Contract Law lays basic principles for the acceptance of offer.
Acceptance to be unequivocal
There is no room left for the negotiation.
Acceptance by counter offer.
This refers to accepting or rejecting the offer accepting by making counter offer.
Hyde vs Wrench [1840] – In this case Wrench offered for selling farm to Hyde at
1000. It said that he would be paying 950 for farm, but was rejected by Wrench, later
Hyde accepted the original offer of 1000 which was again rejected by Wrench. Later
in the case it was held that no agreement was formed between the parties, as it was
rejected by Hyde by making counter offer.
Acceptance must be communicated to offeror
It is basic and important requirement under the contract law that the
acceptance to an offer must be communicated to the offeror for establishing a
binding contract. As per law acceptance is considered as accepted once it is posted
(Smits, ed., 2017). For instance the case of Henthorn v Fraser [1892]. This rule is
applicable even when letter is destroyed lost or delayed. The rule is excluded when
specific mode of communication is specified by the offerror.
STEP 3: Application:
By applying the case of Hyde V Wrench [1849] the judgment which is given in
this case is reflected on the present case regarding the carrying the counter offer
which indicated that the validity of the contract is stipulated in addition to the new
contract made (Goldberger, 2016). Thus, the contract is valid if Noah accepts the
contract as per the set terms and conditions which is given by Cole. In respect of
applying the judgment of the case of Henthorn V Fraser [1892] 2 CH 27, it is
necessary that communication is to be done regarding accepting any offer. Thus, in
this case Noah not accepts the offer which indicated that the contract is not legally
enforceable upon the Noah to follow as per the set directions (Graziano, 2019). As it
refers to the void contract and thus Noah carry the right to repudiate the contract as
per the set terms and conditions.
STEP 4: Conclusion:
From the above study, the case reflects the matters that contract is made
between Noah and Cole but in this case the breach committed by Cole regarding not
following the terms of contract. Nora can claim for specific performances in the
contract regarding fulfilling the contract terms as per the set contract. As it carries to
be the basic necessity regarding fulfilling the contract with the decided terms and
conditions.
QUESTION 2
STEP 1: Identify the areas of law

In this case study, the issues which is faced by Noah is relating to the
cancellation of the flights tickets regarding the failure in the internet services. As
Noah is upset with Cole regarding not providing the accurate services which he is
dealing in and also she made the additional payment for her further trip which cannot
be rescheduling within that time period. As in respect of carrying the family relation
Cole offer another package to Noah for next season and such offers is made on the
discounted prices. The issue in this case reflects that whatever Noah can take such
offer or not or she carry the intention to pay the discounted prices.
STEP 2: Discussing law principles
Intention refers to carrying the intention to enter into the contract once it is
shifted by the partners. As such contract is not legally bound upon the person if such
contract is entered on the bases of the family agreement (Beale and et.al., 2019). In
respect of understanding the intention in the contract, it carries various essential
elements such as:
 If the parties carry the intention to enter into the contract, they are
legally bound upon the contract and also they can amend the terms by
deciding mutually with other partner.
 If any of the terms is suspended, than it not carry any intention or give
right to the parties to terminate the contract (Cartwright, 2016).
 Family agreement not give legal relation between the parties to follow
the contract as per the set terms.
This is explained with the case of Ermogenous V Greek Orthodox community
of SA [2002] indicated that the matters relating to not carrying the legal relation to
enter into the contract (Ermogenous v Greek Orthodox Community of SA Inc, 2018).
As the matters reflects the case of family arrangement in which the partner are not
legally bound to follow the contact.
Consideration:
It refers to the amount or promise which is made between the parties
regarding entering into the contract. As the validity of contact is determined through
the consideration. The essential elements refers to carrying the rights to bargain for
the consideration (Eldridge, 2019). Secondly it is related to the mutual agreement
regarding accepting the consideration. Third, the exchange must carry the valuable
things which proves the validity of the contract.
In case of Australian Woolen Mills Pty Ltd V Commonwealth as in this case
the issues is raised regarding selling the wool by the government on the bases of
price set by them (Australian Woollen Mills Pty Ltd v The Commonwealth, 2018).
Once the demands is over, he cancel the sale and by this aspects Australian woolen
mills file the suit against him in respect of breach committed. But the case is rejected
by the court.
STEP 3: Application:

By applying the case of Ermogenous V Greek Orthodox community of SA
[2002] in our present case, it is recorded that the Noah carry the intention to not
accept the offer. As no contract is bound upon her to be followed as per the set
direction by the offeror (Giancaspro, 2017). Thus, in case of Australian Woolen Mills
Pty Ltd V Commonwealth, the judgment which is applied in this case by filling the
suit against Cole in respect of performing the contract as per the fixed amount which
is set by Cole as $14800.
STEP 4: Conclusion:
By referring the above cases, it is stipulated that the intention which is carried
by Noah is not satisfied as the deal is made on the bases of that particular time
period and thus in family term, the contract is not bound upon Noah to be followed.
In respect of consideration, it is also not satisfied as the deal is finalized on the
bases of $14, 800 but he is offering $15,900 which is more than the fixed amount.
CONCLUSION
From the above study the report concludes the matters relating to
understanding the important of contract law in business. It also provides various
remedies to the parties in case of breach committed in any of the terms. In this study
Noah carries various right through which Cole is obliged to perform the contract as
per the set terms and conditions.

REFERENCES
Books and Journals
Beale, H and et.al., 2019. Cases, materials and text on contract law. Bloomsbury
Publishing.
Butler, P. and Mueller, B.M., 2016. Acceptance of an Offer Under the CISG. CISG
and Latin America: Regional and Global Perspectives Eleven International
Publishing, the Hague.
Cartwright, J., 2016. Contract law: An introduction to the English law of contract for
the civil lawyer. Bloomsbury Publishing.
Eldridge, J. A., 2019. Codifying Contract Law in Australia: Issues and
Obstacles (Doctoral dissertation).
Giancaspro, M., 2017. Is a ‘smart contract’really a smart idea? Insights from a legal
perspective. Computer law & security review. 33(6). pp.825-835.
Goldberger, J., 2016. An overview of developments in key areas of Australian
contract law. Commercial Law Quarterly: The Journal of the Commercial Law
Association of Australia. 30(1). p.17.
Graziano, T. K., 2019. Comparative contract law: cases, materials and exercises.
Edward Elgar Publishing.
Smits, J.M. ed., 2017. Contract law: a comparative introduction. Edward Elgar
Publishing.
Online
Australian Woollen Mills Pty Ltd v The Commonwealth. 2018. [Online]. Available
through: <https://www.australiancontractlaw.com/cases/awm.html>.
Ermogenous v Greek Orthodox Community of SA Inc. 2018. [Online]. Available
through: < https://www.australiancontractlaw.com/cases/ermogenous.html >.