A Comprehensive Analysis of Contract Law Principles and Case Studies

This report delves into the core principles of contract law, examining the essential elements required for contract formation, including offer, acceptance, intention, consideration, agreement, legal capacity, and formalities. It explores the concept of breach of contract and the various remedies avai...Read More

INTRODUCTION TO
CONTRACT LAW

INTRODUCTION
Contract is the legal term which is created among two or more parties. A promise or set of
promises framed by one person and must be accept by another then process called as agreement
(McKendrick, 2014). On the other side, an agreement which is enforceable by law known as
contract. In which individuals or group of persons comes in contractual relationship with each
other in order to fulfil legal obligation imposed on them. In the present study, case has been
discussed of Smiles and Doug Ramfield. Also second case is based on Radio Dancer, a local
radio station in Plymouth.
PART A
Section A
Contract law has been considered as most familiar legal concept in which two or more
parties comes in contractual relationship with each other. Obligation of one party is become
consideration for another. So that, parties have to understand their roles or responsibilities which
are imposed on them as per the policies of legal proceedings. It has been formed through one
party frame offer and send the same to another party. In case opponent should accept the same
then it became legal agreement (Friedman, 2011). According to the rule of contract act, it can
create rights and legal obligations which is enforced by courts. No person can breach contract
without receive consent from another party. As per the legal proceeding they are bound to fulfil
legal rules, regulation, policies as well as procedure which is imposed on them. It may provide
various remedies and rights for protect their interest and maintain performance as well. Contract
has been formed with the help of various elements which are as aligned below-
Parties- Two or more parties needs to be require to form legal contract with each other
because single person is able to form legal agreement with himself only (What are the elements
of a contract?, 2017). This is important requirement which is needs to be fulfil at the time of
formation of agreement.
Offer and acceptance- A contract has been formed when an offer by one party is accepted
by the other party (Hillman, 2012). With this element there is no agreement. It should be made
by one person along with mentioned their legal obligation which are imposed on them. Without
acceptance there is no legal contract. This is compulsory requirement for them in order to
comply with rules of law.
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Intention to create legal relation- At the time, formation of contract intention of parties
must be present. In case this element not present in agreement then it should be considered as
void or not enforceable by law.
Consideration- The next element of a contract is that there must be consideration for a
person’s promise. It must be present, at the time of formation of contract. Consideration can be
set either in monetary form in kind.
Agreement- This is the most significant element of contract. Agreement must be existing
before fulfil their legal obligation which is imposed on them. For the purpose of offer as well as
acceptance to have happened there must be an offer which is needs to be communicated by one
party to another for setting out various terms on which that party will agree to be bound. As per
the rule of law they are responsible to fulfil legal obligation or accomplish purpose for which
both parties form legal agreement with each other (Kolmar, 2017).
Enforceable by law- In case contract consist all relevant elements at the time of formation of
agreement. In that case legal authorities permit them to fulfil their duties. Intention of parties
must be real or necessary to be present.
Legal capacity- Parties who wants to form legal agreement, must have capacity to contract.
It includes person should be attaining age of majority, sound mind and law not imposed
restriction on him. Person who have all three elements at the time of formation of contract then it
is enforceable by law. due to lack of any one of them then person is not able to form legal
contract with any other person.
Formalities- In order to form legal contract, parties have to fulfil various legal formalities
such as make agreement in written format must be sign by all parties. After this they are bound
to fulfil various terms and conditions which they mentioned with mutual consent.
Breach of contract may occur when one of the both party not able to fulfil legal
obligation which is imposed on them. There are two types of breach can happen which are
Actual breach in which set of obligation not able to fulfil by parties. There are certain remedies
available when any of the party breaches the contract. The affected person can ask for remedy in
court of law. As they are fails to comply with law. several remedies are available in this act
which are as aligned below-
Suit for recession- As per the rule of contract law, injured party asks for cancellation of
legal contract. Affected party file lodge complaints and appeal for discharge him from legal
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obligation imposed on him. In this remedy, affected party can ask to cancel the contract. It is
required that, court will discharge the other party for not performing their obligations related
with contract.
Suit for damages- In which injured party can ask for the compensation due to not
perform act by another party (Essentials of a Contract & Remedies for Breach. 2017). He
suffered with the damages which arise out of breach of contract. Injured party can ask for
compensation in return of loss suffered by them. Amount of compensation is depending upon the
intensity of injury caused to suffered party. For criminal activities there are punishments
according to law of that particular country.
Suit quantum merit- The injured party asks for payment which is decided by them with
mutual consent in proportion to amount of work completed. This can protect rights and interest
of parties who are involve in this (Knapp, Crystal and Prince, 2016). In this remedy, injured
party can demand for money for the work that has been completed by them during the period of
contract.
Suit for the purpose of performance- In which injured party appeal form the court to
order opponent in order to fulfil legal obligation imposed on him (Byrd and Hruschka, 2012).
The ultimate is that affected party seeks for the order of court. In this cure available for injured
party, they can ask the court to provide order against default party to fulfil their part of
obligations in order to complete the contract.
Suit for injunction- In this remedy injured party seeks for an order from legal authorities
to restraint default party from doing any act.
As per the given scenario, Doug Ramfield who is the owner or organiser of prestigious
Cirencester Festival. He sends offer to Fred Johnson, known as Smiles who won price on 12th
June as a winner of Z factor. Doug send offer in the form of written letter and mentioned that he
organises festival on 29th July at 8:30 for 90 minutes. That is famous “sunset” slots as well as
change of natural lighting during the set. In which they can sell viewing right to around 150
countries. He will offer fantastic exposure and fee which is 200,000 pounds. Smiles’ manager,
name called Boris Quickdosh, responded to the letter with a short phone call and accept the offer.
After this, respondent has been received by Doug. In this case, Boris is the person who was a
double glazing salesman until Smiles won Z Factor a month before, then influenced Smiles he
could manage the business side. This is his first music business deal. Both Boris as well as
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Smiles go clubbing in Iota for three weeks. Smiles is offered a substance in a club that makes
him lose his voice. Both Boris and Smiles fly back in the night of 29th July or as they have lost
their phones during the holiday, don’t receive any frantic calls of Doug. The mentioned headline
stand-in on the date of 29th July is Clifford Richardson; an old timer who overseas networks
don’t want to see. The Festival loses 500,000 pounds due to cancelled viewing rights. After this
they turn up at festival on morning of 30th July. When Smiles perform on stage he forgot some
lyrics and his voice is croaky. After this, Boris told Doug about money which they decide with
mutual consent equal to 200,000 pounds’ fee to be provided in a brown paper bag. Losses
contain 50,000 pounds it cost to provide him with a backing band.
But according to the rule of contract law Doug have to provide money equal to the
amount decided by them. Contract has been formed among Doug and Smiles in oral form. In
which there is no written document framed by parties. In that case, Smiles having right to receive
amount on which they come in contractual relationship. Person having right to file case against
festival in order to amount of compensation which is decided by parties with mutual consent.
On the basis of above mentioned remedies can able to protect rights and interest of
Smiles. According to the contract act, remedy known as suit for quantum merit is able to protect
right to him (O’Leary, 2017). On which such person can file case and able to receive best
possible advice from courts.
Section B
(A)
As per the given scenario, Radio Dancer, which is a local radio station in Plymouth, plays
the following advert at 6:59 am on 4th March. Liv Local is the person who heard the news in the
morning that Archers provide special offer in the form of seafood casserole in the hemisphere.
Liv’s husband name called as Larry Local has been act as manager of Archers who get bonus
from owner for the purpose of every ten diners per evening. It offers Moet free to their customer
who will join that day. By 6:40 pm there are only five bottles of Moet left and Larry decides to
keep them for large groups that turn up later.
Bob and Mary Johnson are considered as customer and went to the restaurant and get to
the front of the queue at the time 8:00 pm. Waiter told them that stock of Moet is finished so
apple juice has been provided to them instead. But they noticed that Moet left in fridge at the
front. In this situation, remedies are available in order protect their rights and resolve their matter
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as well. In this case, remedy called as Suit for the purpose of specific performance has been
imposed on owner of the restaurant. In this injured party can suit another for perform specified
obligation which is imposed on him. In which parties seeks for the order of court requiring for
the performance of specific contractual legal obligation. After receive order from court party
have to fulfil their legal obligations which are imposed on them as decided by them with mutual
consent. On the basis of this, Larry have to pay amount of compensation or can perform his legal
duty which imposed on him. As per the law he is responsible to preform specific performance in
order to complete legal contract.
(B)
Remedies in contract law presented in order to protect rights and interest of parties for
secure their performance. As per this concept party can receive case against another in order to
receive amount of compensation which is imposed on them as per the provision of law. In the
present case, Jim and his 10 friends act as customer who are seated in the restaurant at 6:45 pm.
but are too drunk to notice that Moet isn’t being aided as well as they are not being offered free
drinks. The main purpose of them is to take free drinks because Larry offered people to take
advantage of free drinks. So that, customers should accept the order through go in restaurant. But
when Jim and his 10 friends leave, they noticed that bottle of Moet left in the front of fried but
not provided to them when they placed an order for the same.
In this case Larry is responsible to fulfil his legal obligation if they offered people to use
the free drinks. According to the rule of contract law, party refused to perform obligation due to
specific reasons which is not acceptable in courts. There are various remedies are available in
legal concept for protect rights and interest of injured party who suffered damages or loss due to
non-performance act of another. In this case customers can Suit for injunction for provide order
against Larry and imposed right on him to perform act.
(C)
In the present case, Larry framed offer and publish advert in order to provide free Moet.
According to the rule of contract law, in case one party send offer and another can accept the
same then both parties comes in contractual relationship with each other. After they form legal
agreement. In this case scenario, Larry published advert as offer and people can accept the same
through go in restaurant. When people take free drinks which they come in agreement with
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another party. In that case Larry is responsible to fulfil legal obligation which is imposed on him
as per the agreement.
Vera and her family get to the front of the queue at 10:00 pm. Liv walks into the
restaurant to speak to Larry. Vera goes up to her ask her for free Moet. In this Larry is have to
fulfil legal obligation which is imposed on them. In which customer can file Suit for the purpose
of specific performance. After this, person is responsible to follow rules, regulation and policies
which are imposed on them as per the certain provision of law.
(D)
As per the present scenario, the biggest table of evening ends up being the 15 Archers’ staff
members who are sit down for a free meal of left overs when last guests leave at midnight. On
the other side, Billy Barowner, who is owner and he walks in as well as sees them drinking final
jeroboam of champagne that Larry decided late on to keep for the existing staff members. Billy
is the person who act as furious but on the other side Larry who is responsible to fulfil legal
obligation says that they achieve wording of radio advert or shouldn’t have to pay for it. As they
are permitted to eat excess food for free at the end of each shift.
In this case, customers can suit for perform specific act. Certain remedies are available
for parties for secure their rights and interest. Suit for the purpose of specific performance is the
specified remedy which is available and fit for the present purpose. As per this parties have to
meet legal obligation of another party.
CONCLUSION
As per the above report, it is stated that contract law is the legal term in which one or more
parties can form legal contract with each other in order to meet obligation imposed on them. As
per the rule of law, various remedies are available for parties for protect and secure their rights
and interest. Different cases discussed above which can be resolve with the help of provision of
remedies.
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