Foundation of Company and Commercial Law: Case Studies

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Foundation of company and commercial law
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Contents
Foundation of company and commercial law..................................................................................1
Introduction......................................................................................................................................3
Scenario 1: Business venture...........................................................................................................4
Scenario 2: Laptop disaster..............................................................................................................5
Scenario 3: Statutory Guarantees.....................................................................................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................8
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Introduction
The contract law is one of the most important laws that helps in formation of the agreement
between the parties to the contract. This is important for the formation of the contract that all the
legal requirements for the formation of the contract are fulfilled by the parties to the contract as
specified in the law. This is seen that there are numerous principles that are specified by the
contract act which helps in the building of contract between the parties along with the law of
guarantees. In the report various case scenarios would be dealt that relates to the contract law. the
case study of T & J partners is considered for this purpose.
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Scenario 1: Business venture
The present case is related to the contract act where the Tom & Jerry are considered to be very
close brothers that has decided to work together so as to fulfil the desire of opening the business.
The contract is formed between them where the parties decide to open the brand-new tech firm in
Australia. Hence during the operation, the dispute has been raised between them. in the meeting
between them this was seen the Jerry came out yelling that he owes 50% of the amount. Hence
this is the liability of Tom to pay Jerry (Ahuja, 2018).
In configuration of contract, it is imperative that all the terms of the agreements are fulfilled.
Some of the essentials of the contract act includes offer, acceptance, legal obligation and one of
the most important the consideration for the same. Both of them entered into the contract where
they decided to do the work as per the present objectives. For the purpose of continuation of the
contract this is the liability of the both the parties to comprehensive the terms of contract as per
the determined factors. As the consideration has been decided in the contract and it is seen that
the they have accepted to offer to work together and hence the contract is said to be formed for
this purpose (Beale, et. al., 2019).
As decided in the case of the Foran VS Wright this is seen that if there is anticipatory breach
that occurs between the parties to the contract then the other party is liable for the breach that
occurs between them.
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Scenario 2: Laptop disaster
In the present case, TJ and partners have tackled the issue that emerged before them and now is
working in the most ideal way. The benefit of the organization is viewed as high and as a token
of blessing they have concluded that they would furnish their representatives with workstations
or the laptops. This is viewed that for this purpose behind taking the conveyance the organization
has chosen Star shipping Pty ltd. At the hour of marking the agreement they didn't peruse the
terms of agreement. There was the term in the agreement where it was composed that for the lead
of the worker of the organization and on the off chance that any harm is caused to the item
because of this, at that point for this the organization would not be obligated to pay for the
equivalent (Buscombe, 2019). Along these lines, during the travel the PCs that were bought by
the organization were harmed because of a mishap. Here because of the error of driver of the
organization the PCs were devastated through a mishap that happens because of impact with the
train. Consequently, the organization needed to take the remuneration from Star shipping for the
harm that has been caused to them. Here this was seen that the organization needed to sue Star
shipping for the rupture that has been finished by them. while Star transportation advised that
they are not at risk to pay the remuneration as there was a provision that was embedded while
making the agreement where they were considered to not be at risk for the equivalent harm if
occurs in the company.
As indicated by the agreement this is seen that on the chance that the party to the understanding
signs the agreement, at that point they are at risk to the terms and condition that are characterized
in the agreement. As this is found on account of the L'Estrange vs Graucob Ltd. that whether
the party to the agreement has perused the terms or not they would be at risk for the terms that
are acknowledged by them (Hemming & Daniel, 2018). It is viewed as a mark as the target way
that aides in finding out the words that are contained in the agreement. The agreement is marked
by the party would make them obligated under the court. Subsequently as chose on account of
Toll (FGCT) Pty Ltd v Alphapharm Pty Ltd this is seen that it is the obligation of the parties
marking that they should peruse the details of the agreement in the correct way. Here this is
viewed that the organization would not have the option to sue Star delivering as this is general
rule that at point it is the obligation of the individual who is marking the agreement to peruse the
terms and contract without limit (Smith, 2018). In this way, in the present case TJ and partners
would not have the option to get the pay for the equivalent loss that has occurred to them.
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Scenario 3: Statutory Guarantees
The Australian consumer Law provides the rights to protect the buyers and those rights are called
consumer guarantees. When a buyer purchases some goods and services then while purchasing
them state some points which they surely want to be present in their purchased good or services.
If a consumer purchases something then it is his right to get the right thing. The consumer
guarantees in terms of goods are:
 the goods so purchased must be in a good condition;
 the goods must be as described by the seller;
 the goods must be equal to the purpose for which they are purchased;
 the purpose for which the goods are being purchased must be known by the supplier;
and
 the goods purchased must be for personal, household or domestic purposes (ACCC,
2019).
The two statutory guarantees that apply to consumer goods are:-
1. Goods must be in acceptable condition- The goods which are purchased by the buyer
must be in good condition. The buyer purchases the goods for his use and if the product
will not be in good condition then how will it serve the purpose. The conditions pointed
by the buyer must be present in the product so that it may perfectly match with the
product asked for, by the buyer.
2. Purposes of goods purchase must be disclosed- The goods purchased by the buyer,
serve some purpose. Before the purchase of goods the buyer must point out the
purpose of such purchase to the seller so that he may provide the best quality good and
the best good that may fulfil the purpose. If the product will fit with the purpose then
the buyer will also be satisfied (Mondaq, 2019).
Case studies:
1. Bartlett v Marcus (second hand Jaguar).
2. Teheran-Europe v Belton (tractors to Iran) (reliance was not reasonable).
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Conclusion
The contract act is framed by the government of the country so that they are able to regulate
the contracts that are entered into by the parties to the contract. This can be considered in the
present case that it is necessary for the party forming the contract to fulfil the terms and
condition that are related to the contract. Also, at the time of formation of contract it is
necessary to read the agreements that are specified in the contract. Also the contracts of
statutory guarantee must be identified for the purpose of formation of contract .
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References
 Ahuja, N. G. (2018). Book Review: The Choice of Law Contract, by Maria
Hook. European Review of Private Law, 26(3), 445-448.
 Beale, H., Fauvarque-Cosson, B., Rutgers, J., & Vogenauer, S. (2019). Cases, materials
and text on contract law. Bloomsbury Publishing.
 Buscombe, I. (2019). Insolvent Trading and Fraudulent Trading in Australia: Regulation
and Context. The Journal of New Business Ideas & Trends, 17(1), 44-46.
 Hemming, A., & Daniel, M. (2018). Halsbury's laws of Australia: contract GC I_II_V.
Update of contract GC I, II, and V.
 Smith, J. (2018). Contract law in Australia [Book Review]. Ethos: Official Publication of
the Law Society of the Australian Capital Territory, (248), 60.
 Australian Competition and Consumer Commission, (2013). Consumer Guarantees: A
guide for consumers. Consumer Guarantees.
 Mondaq, (2019). Australia: Statutory Guarantees Under the Competition and Consumer
Act: A Can of Worms - Part 1. [Online]. Mondaq. Available at:
http://www.mondaq.com/australia/x/170794/Consumer+Law/Statutory+Guarantees+Und
er+the+Competition+and+Consumer+Act+A+Can+of+Worms+Part+1. [Accessed on 20
September 2019].
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