Legal Analysis: Contract Formation and Sale of Goods - Law Assignment

This essay provides a legal analysis of two scenarios related to contract law. The first scenario involves Frank's promise to pay Nick for abstaining from alcohol, examining whether a binding contract was formed, considering the elements of offer, acceptance, and consideration. The analysis explores whether Nick's actions constituted sufficient consideration, given his pre-existing health concerns and membership in Alcoholics Anonymous. The second scenario concerns the sale of gemstones, analyzing the legal implications of misrepresentation and breach of contract in different situations. It examines the rights and obligations of both the buyer and seller, considering consumer protection laws and the validity of the contract based on the parties' knowledge and disclosures. The essay provides a detailed examination of contract law principles and their application to the given factual scenarios, citing relevant legal concepts and case law to support the analysis.

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Question 1
Advise Nick fully as to whether he has a binding contract with Frank?
Case
Frank was concerned about the drinking habits of his nephew Nick. He promises to give him
$1000 if he would not drink for one month. Nick was also concerned about his health and
decides not to drink for the whole of July. He joined AA (Alcoholic Anonymous) as a
member of a group that aims at rehabilitating and managing alcoholics. Nick manages not to
drink for the whole month and says that itr was more of the concerns of his health than the
financial reword. However, Nick had been promised $1000 by his uncle Frank.
Rule
In a contract there are various considerations. A consideration is a factor that is necessary for
the contract information. It consists of a promise to refrain from doing something or carrying
out a desired act that one is legally entitled to do. The question in this case is whether a
promise is binding in law. A promise in law can be defines as an agreement to which the law
annexes an obligation in a contract. Frank has promised Nick that he would give him $1000
after being sober for 1 month. However, this is a promise and does not constitute of a
consideration in a contract (Crandall, and Whaley, 2016). It is not an offer in this case. This
is especially when the promise is in oral discussion and not in any written form. The rejection
or approval of promise in law indicate a radical difference in promise conception and its
adoption. In law it is believed that a promise is equivalent to a contract. However I this case,
Nick was also concerned about his health and that is why it was not a consideration in that
sense. It is not conceivable that a promise in legal wording can mean anything except a

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promise in which a law annexes some obligation. A unilateral contract may mean a contract
or a promise in exchange for which an act or something which is besides other contracts.
Contract-account-act helps to get money faster. No need to wait for the client’s lawyer to
prepare the contract, and then spend time sorting it out. The contract is suitable for simple
transactions that do not need to be described in detail. It can be used if:
The contract will not work if there is a risk that the client will interpret the terms of the
transaction in his own way. Perhaps the client will decide that you are the one who is
collecting, and not he, and will not collect anyone. If there is such a risk, draw up a detailed
contract where you state who does what and when (Fishman, 2017).
Mandatory conditions
By law, you have the right to conclude a contract in writing and orally, but there are
restrictions. A written contract is required if the client is a company or he pays you. If less, an
oral contract is suitable.
Essential conditions
The main thing in the contract is the essential conditions. Without them, it is not valid. There
is no single list of essential conditions for all contracts. The list depends on the nature of the
contract, or, in the language of lawyers, the subject of the contract.
Date on the contract
Writing a date is a must because it helps to avoid uncertainty. For example, under a contract,
the payment term is ten days from the date of signing the contract. If there is no date on the

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contract, the client has the right to delay payment on the pretext that he did not know when it
was necessary to sign the contract (Moyle, 2017).
Cost
The rule is this: show the client what the order price is and how much you need to pay in the
end. If you are preparing three layouts, write the price for one layout and for three. Sell
English lessons - indicate the cost of one hour and the entire course.
Payment method
It is enough to write that you accept non-cash payment. Details for payment and so on at the
end of the document.
Due date
Without a due date, the client will not understand when to send the money, so it’s very
important to write about the due date. If you work on an advance payment, fix the condition
in the contract.
Advice
Nick does not have a contract with his uncle Frank. Unless otherwise expressly provided by
law, non-compliance with a simple written form does not entail the invalidity of the contract,
but only limits the parties in the means of proof,”
So, you cannot use witnesses to confirm the transaction and its conditions with an oral
agreement - but written and other evidence can be given. Also, if agreed in words, the parties
still have the right to invoke testimony in a dispute about the identity of the thing accepted for
storage and the thing returned (Pierce, 2018).

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Question 2
A guarantee for a buyer; For Sale: Mixed Gemstones at Marked Prices
The sale of goods is legally binding in a contract and it stipulates that items to be sold at a
predetermined time and price. This protects both the seller and the buyer in the terms of
business transaction.
a) Although there was no discussion, both Hugh and Donald believed it was a rough
diamond
The consumer rights are protected by the law. If there is a contract, then Donald had legal
rights to return the stone. The stone that Donald bought from Hugh was to be a gem, however
after the purchase, it was later identified as Topaz. In this case Hugh was also not aware that
the stone was Topaz and not a gemstone. However, Donald has the right in law to return the
purchased item as it does not meet the specification of what he was intending to buy (Bridge,
2017).
b) Donald believed the stone was rough but did not discuss this with Hugh who
knew the stone was Topaz
Hugh the seller knew the stone sold was Topaz. The consumer protection law requires that
Donald gets a full refund in 30 days. This is a new addition to statutory rights and the
consumer Rights Act of 2015. The Act changed the consumer’s rights to reject a faulty item
and get a full refund in a reasonable fixed period of 30 days. Additionally, Donald is entitled
by the law for a replacement, repair in case it is a repairable item or partial refund in this
case. The law stipulates that it is within 6 months to return goods and before the six month,
the dispute can go to court to prove that the item bought is either faulty or does not meet
specification (Lookofsky, 2016).

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c) Donald told Hugh that he was pleased to find a diamond. However, Hugh did not
correct him
Hugh was aware that the stone he sold to Donald was not gem but it was topaz. Donald
thought Hugh would sell him the right stone. In this case, Hugh did not disclose the right
information to Donald and sold the stone by false pretense. A contract where there is no full
disclosure of information may become invalid by the law as major information was not given
and also the right information was not given when Donald was buying the stone. With regard
to the form of the contract, judicial practice is not uniform, despite the general trend of
formalism and reliance on written evidence, which was rooted in the period. The reluctance
of the courts to take into account other evidence, in addition to the contract itself, gave rise to
many related problems that were partially resolved during the civil law reform. This applies
to pre-contractual liability, assurances and guarantees accompanying the contract, registration
of transactions and a number of other contracts. The sale of goods contract in this case is null
and void.
d) Hugh was the club’s expert on diamonds and offered the stone to Donald
assuring him that it was a diamond, as he honestly believed it to be
In any case, Hugh was sure that the stone was honestly a diamond. He was an expert but on
this he got it wrong. Donald should return the stone as due diligence was not done by the
seller who is the expert in this case. A contract where there is no full disclosure of
information may become invalid by the law as major information was not given and also the
right information was not given when Donald was buying the stone.

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References
Bridge, M.G., 2017. The international sale of goods. Oxford University Press.p. 67-76
Crandall, T.D. and Whaley, D.J., 2016. Cases Problems and Materials on Contracts. Wolters
Kluwer Law & Business. 24, p.17
Fishman, S., 2017. Consultant & independent contractor agreements. Nolo. JL Bus. &
Ethics, 24, p.177
Lookofsky, J., 2016. The 1980 United Nations Convention on contracts for the International
sale of Goods. In International Encyclopaedia of Laws (pp. 1-250). Kluwer Law
International.
Moyle, J.B., 2017. The contract of sale in the civil law. Рипол Классик. Kluwer Law
International. 66-69
Pierce, B., 2018. Contract Law Govern the Recruitment Process and Enable Enforcement of
Verbal Commitments. JL Bus. & Ethics, 24, p.127.

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