Business Law: Exploring Contractual Obligations Through Case Studies

This case study delves into various business law scenarios, primarily focusing on contract law and its implications. The first scenario examines whether a valid contract was formed between a buyer and seller concerning a comic book, referencing the Contract Act and elements of offer and acceptance. The second scenario discusses the rights and obligations of underage individuals in automobile purchases, highlighting the illegality of such transactions and the requirement to return the vehicles. The third scenario explores a dispute arising from an online purchase where the delivered item did not match the order, emphasizing the seller's liability. Finally, the fourth scenario considers additional factors influencing the agreement, reiterating that negligence or failure to fulfill duties results in liability and potential refunds. Desklib offers students access to similar solved assignments and study resources.

Running head: BUSINESS LAW
Business Law
Name of the Student
Name of the University
Author note

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Answer to Question 1
Issue
The issue of this scenario is whether a valid contract formed and existed between the buyer
and seller regarding the comic book.
Rule
The law that is applicable in this particular scenario is the Contract Act. A case of offer and
acceptance had taken place between the seller and the buyer. As per the Contract Act, there
are essentials of a valid contract that needs to be fulfilled for the formation. The basic
essential for the formation of a contract is offer and acceptance as mentioned in the case of
Clifton v Palumbo. For an offer to get accepted by the other party, there must be
consideration and certainty in the offer. For the formation of a contract, lawful capacity and
legal consideration are also significant ingredients. Therefore, for a contract to be valid, these
elements must be present in the formation of a contract.
Application
It was observed that the seller regarding a mint first edition Superman comic book for
$10,000 sent an offer letter to the Buyer. The offer was valid till March 9. Thereafter, the
seller got a better offer of $15,000 from another customer and chose to sell the comic book to
him immediately. The seller tried informing the buyer about the situation but could not reach
him. The responsibility was given to the mailman later who failed to deliver the letter. It can
be stated that there was a clear situation of offer and acceptance between the buyer and seller
as per the Contract Act. The impact of the fax that was left did not cause any difference to the
situation.

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Conclusion
Lastly, it can be concluded stating that if the seller does not want to sell the product the buyer
cannot force the seller to sell it unless a valid contract is formed between them.
Question 2
Issue
The issue of this scenario is whether the rights and obligations of Ken can disaffirm as to
each of the automobile.
Rule
In this given case study, it can be observed that it deals with the concept of Contract Law. As
per the automobile rights, there are certain rights and obligations of the automobile dealers.
The person purchasing the product and the person selling the product has equal rights on the
products. Since Ron was 16 and under age, it can be stated that it was an illegal activity on
Ron’s part. Both the brothers have obligations when related to the dealing of the automobiles
they purchased.
Application
As seen in this case study, Ken has rights to disaffirm as to each of the automobile but he
cannot exercise these rights since both Ken and Ron were legally underage. The obligation
that will faced by these two brothers are that they will be bound to return the automobiles to
the dealer as it was an illegal activity. Kids who purchase automobiles illegally will be legally
bound to return it as stated in the Act.

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Conclusion
Lastly, it can be concluded stating that for purchasing the automobiles, both Ken and Ron had
to attain the legal age first.
Question 3
Issue
The issue of this scenario is whether the agreement formed between the seller and me and
regarding purchasing items online.
Rule
The rule that can be applied in this situation is the rule of Contract. A contract was formed
between the seller and me regarding a green stone that was purchased and when it was
delivered, it proved to be of another color. As observed in the case, a contract was formed
between the seller and me based on the consideration of a stone that I wanted to purchase
online from Ebay. Since I had to make the choice of the stone by viewing the pictures clicked
from various angles provided on the site. It was observed that the wrong colored stone was
delivered to me. Therefore, since a concept of valid contract existed between the seller and
me, the seller will be held liable for delivering the wrong stone.
Application
As per the rule, it can be applied in this scenario that since the wrong stone got delivered as to
what I had ordered, the seller will be liable to return the refund or payment of the stone.
Instead of a green stone, a magenta stone had arrived that had no similarity with the product
that was ordered.

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Conclusion
It can be concluded stating that there was a clear agreement formed between the seller and me
regarding a piece of stone. Therefore, the seller being negligent delivered the wrong stone as
to the one that was ordered by me. However, the seller will be held liable.
Question 4
Issue
The issue of this case is whether the cumulative impact of the additional factors is relevant.
Rule
This case scenario deals with a situation where the Contract Act can be referred to as the
agreement was made between the seller and me. As per the Contract Law, if one of the
parties fails to carry out his or her respective duties, will be held liable in such a situation. It
also depends on the negligence caused by one of the parties.
Application
As observed in this case, the seller in his defense stated that he had taken the pictures
correctly and posted them with proper names and its shapes and sizes. According to the
seller, there was some confusion as I had ordered the stone during the time of an auction. The
record should be checked where the confusion arose and how much will it cost the parties.
However, there was an agreement that was formed and remained valid between the seller and
me over the product.

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Conclusion
In the conclusion, it can be stated after the analysis of the case that if an agreement is formed
legally between the parties, whichever party commits the negligence or fails to carry out the
duties will be held liable and can give the refund.