Commercial Law: Analyzing Contractual Agreements and Disputes

This case study examines a commercial law scenario involving a series of potential contracts between Alan and three other parties: Damien, Bernard, and Charleen. The analysis delves into the essential elements of a valid contract, including offer, acceptance, consideration, and the capacity of the parties involved. The student evaluates each potential agreement, considering whether a legally binding contract was formed based on the facts presented. The analysis scrutinizes the validity of contracts with a minor (Charleen), the impact of counteroffers and rejections (Bernard), and the implications of communication methods (Damien). Furthermore, the study explores the application of Alternative Dispute Resolution (ADR) methods, specifically mediation and arbitration, as potential solutions for resolving contract disputes. The conclusion provides a determination of the existence and enforceability of each contract and the availability of remedies for any breaches.

RUNNING HEAD: COMMERCIAL LAW
Commercial Law
Name of the student
Name of the university
Author Note

1
COMMERCIAL LAW
(a)
Issue:
The primary concern regarding the given case is whether the lawful contract was made by
Alan with Damien, Bernard and Charleen or not; the discussion will analyse further about the
durability of the mentioned claims.
The Rule of Law:
It was mentioned by McKendrick (2014) that in any contract the parties involved in
several conditions mentioned. Any parties need to provide the compensation creating the
breaching to aggrieved parties. A lawful contract consists of 7 essential elements that include the
acceptance, considerations, offer capacities, illegality, vitiating factors and lawful relationship
intention.
Acceptance is the expression of an offer to the agreement and contractual terms having an
understanding of several terms that defeat the involved parties, there is a presence of lawful
terms, the main crucial factor is the trust where the factor is about the agreements as mentioned
by Prof. Trecitel.
The offer and an invite to an offer are twofold different terms. The term invitation can be
explained as an invite provided to the parties, but they do not involve any lawful terms, they are
always found to be partial. An offer for a good’s sale includes the payment, date, price and mode
that makes up the process of delivery. It is said to be complete if an individual with a complete
and lawful mind considers it and they get involved in question of contract.

2
COMMERCIAL LAW
It is well explained by an author Atiyah (2006) that acceptance is mostly final, it is an
expression stated as unequivocal and known to be final thoughts approving the terms that are
being forwarded by the other parties in a contract. Through the acceptance process the offeree
denotes his will to accept the several terms assigned contract forwarding by the other individuals
bound to the agreement. Of the legal acceptance does not take place the contract terms can be
said to be unbounded.
The offer acceptance will not compile the terms that were not present in the made offer
for starting it. It is decided that the acceptance said do not contain any terms to outmanoeuvre
and overlook the terms existing in the agreement. Unless and until there is a notification from the
offeror about the offer acceptance there will be an incomplete process. The process of
communication can be proceeded through a platform which will be found to be appropriate by
parties of the contract.
The capacity is a term that binds an individual into a contract that is lawful that includes
any person more than eighteen years of age or more than that and should have a sound mind. It
was explained by the author Chen-Wishart (2016) that the involvement of the parties' intention
for binding them in terms of contract in all the legal way is the ingredient that is underlying of
entering into the contract. When the presence of intention is not there the contract cannot be said
to be valid.
Application:
It is explained that an individual those are invited officially can accept it willingly, that
clarify the facts that Damien can’t be involved in the offer stated as he did not exist in the friend
list of Alan on a social networking site known as facebook. As an SMS was received by Alan

3
COMMERCIAL LAW
and it was conducted by Damien, in this situation it cannot be considered as the invitation. It has
been observed further Damien’s call has been easily accepted by Alan and a product $200 was
offered, and it has been agreed by him. The payment of Damien was recorded according to the
date of 4th Nov. This easily proves the validity of the contract.
Charleen was in the education of a standard of ‘O’ grade and could not be involved in a
contract with Alan. It is observed further that Alan did not have any ICLR, as any intention while
any accent was made; therefore, the contract is to be ineligible and nonexistent. There was a
demand from Bernard for purchasing the product at the amount of $150, but the amount that was
offered to Bernard was $200. It is seen that the initial offer was rejected as it has been forwarded
by Alan. There was a reestablishment of the offer produced by Alan, and it has made it strong
that the price for the said products is $200. On the day of 4th November the new offer is being
accepted by Bernard according to the postal code; therefore, they strengthen the bound of the
validity.
Conclusion:
A lawful contract between Bernard, Damien and Alan the offeror. Therefore it is well
understood that Charleen will not be eligible.

4
COMMERCIAL LAW
(b)
Issue:
The provided case explains the position of Charleen, lawfully planning the solutions that
are necessary.
The Rule of the Law:
Any individual those who are under 18 lawfully cannot enter into an agreement that is
lawful. There is no way of coming into the domestic relations that can change or compromise the
terms of the contract as it has been well explained in the case study of Merritt vs Merritt.
The details of the contractual validity of minor was explained in the case study of Inmam
vs Nash. It has been observed that there was a purchase that took place above the amount of
$145 related to clothing from the side of the plaintiff. There was a judgement from the court that
it was appeared to have an adequate clothing stock at the time provided. Therefore in the
provided case it was seen that there is a no lawful validity of a contract.
Application:
As Charleen was observed to be a minor as the age was only 16 years; therefore, it cannot
be considered to be contractual as the demand by her for the book, but there was no necessity.
Therefore it is observed that Charleen’s and Alan’s relation cannot be bound by the contract and
no further remedy can be suggested in this case.

5
COMMERCIAL LAW
Conclusion:
No remedy can be suggested as the contract does not exist in the provided case.
(c)
Issue:
The position of Bernard was analysed, and any lawful solution in his favour.
Rule:
It was well explained in the case study of Hyde vs Wrench. In the case, the plaintiff was
supposed to sell in his farm amounting to $1200 that was declined strongly. The selling price of
the offer was refreshed at $1000 where the plaintiff in the case fixed it at $950. The defendant of
the case considered it to be declined. The proceed of the sale was refused by the defendant where
the plaintiff of the given case was provided for buying the property amounting $1000. The
contract validity was observed to be nonexistent due to revocation and counter from the court of
the placed offer that was original.
In the case study of Addis vs Gramophone, it was well explained that the provided remedies so
that the aggrieved can withdraw back to the situation before the formation of the contract. When
the offeree posted the acceptance letter can a contract of postal be valid as explained in the case
of Adam vs Lindsay.
Application:
After contract signing, Bernard made the payment on the date of 4th November, after the
numerous changes and the counteroffers, and then they settled the amount to $200, Bernard
discovered about the availability of the demanded book in the library of the University which

6
COMMERCIAL LAW
was found to be free. But a contract requires a consideration that should be sufficient where the
book here is the matter; therefore, no arguments can be done further. Accordingly the promised
books were provided by Alan associated with all the notes as mentioned therefore there was a
lawful contract settled and made as there was no space for remedies.
Conclusion:
There was a rightful existence of a contract between the contractual parties and was legally met
and settled.

7
COMMERCIAL LAW
(d)
Issue:
The position of Damien is to be analysed and any lawful solution in his favour.
The Rule of the Law:
It was well explained in the case Harvey vs Facey that the defendant had not provided the status
of availability of hall pen, but the lowest price is given to the plaintiff when he requested clearly
for both thus there was a formation of the invalid contract.
Application:
It was agreed totally in the issues that were provided in the previous issues the validity of the
Damien’s and Alan’s contract was lawful absolutely. In this provided case Alan made a
statement of contract to include notation that was handwritten while selling the product. These
notations were already given to Bernard, and the enclosure was done. This can be considered as
the breaching of the contract where Damien is entitled to the compensation.
Conclusion:
According to the breaching of the contract, Damien is enabled for the remedies.

8
COMMERCIAL LAW
(e)
ADR (Alternative Dispute Resolution) settles the issues like breaching that do not take
any lawful action; normally an Alternative Dispute Resolution has been divided into many
divisions that help in taking the necessary actions that prove to be crucial that are essential in the
provided case. The divisions that are made make a process of Mediation and Arbitration.
Arbitration- An appointed arbitrator settles the disputes that take place between the parties
involving in a contract. An arbitrator decides the several factors that are involved by judging
them (Smith 2014.)
Advantage: Time, as well as the money, is utilised judicially as the process is fast and the need
for the fees concerning paying the lawyer is not in the requirement. In the case of arbitration the
demanded fees by the arbitrator are less than the fees of a lawyer. Several issues have been
resolved in few meetings that unlike the process of normal litigation that consumes the most of
the time.
Disadvantage: the arbitrator that provides the judgment may not agree completely opposing the
cases of litigation where most of the decision is binding the contractual parties.
Mediation: A responsibility is provided by a neutral third party for helping the parties
mentioned to settle a conflict and for reaching a decision (Skelton 2017)
Advantage: There is flexible effectiveness and time consuming that is much less. Procedures that
are complex is found to be non-existent.

9
COMMERCIAL LAW
Disadvantage: Legal decisions are not binding; the process of discovery is not stated in a
clarified way.
Venue:
In a state court of tribunals where there are small claims- the center of Singapore mediation.

10
COMMERCIAL LAW
Reference:
Adam v Lindsay (1818) 106 ER 250
Merritt v Merritt [1970] EWCA Civ 6
Harvey v Facey [1893] UKPC 1
Smith, S., 2014. Remedies for Breach of Contract: One Principle or Two?.
Arbel, Y.A., 2015. Contract remedies in action: Specific performance. W. Va. L. Rev., 118,
p.369.
Skelton, A., 2017. Restitution and contract. Informa Law from Routledge.
McKendrick, E. (2014). Contract law: text, cases, and materials. Oxford University Press (UK).
Nash v Inmam (1908) 2 KB 1

11
COMMERCIAL LAW

12
COMMERCIAL LAW

13
COMMERCIAL LAW