University Law Report: Corporation and Enterprise Law Analysis

This report analyzes key concepts in Corporation and Enterprise Law, focusing on contract law principles, including express and implied terms, conditions, warranties, and intermediate terms. It examines a case study involving a fireworks supplier and a client, exploring issues of contract breach, government regulations, and the discharge of contracts. The report also addresses a construction case, evaluating the essential elements of a valid contract, such as agreement, consideration, capacity, and intention, and identifying different types of contract breaches. The analysis provides insights into the legal implications of contract terms, liabilities, and remedies for breaches, providing a detailed overview of the legal principles and their application in the provided scenarios.

Running head: CORPORATION AND ENTERPRISE LAW
Corporation and Enterprise Law
Name of the Student
Name of the University
Author Note

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Table of Contents
Question One...................................................................................................................................1
Question Two...................................................................................................................................3
Question Three.................................................................................................................................5
Reference.........................................................................................................................................8

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Question One
i) The contract law s the most common law of enforcement where parties are promise to
form a legal relationship under some terms and condition. The contract law
establishes contractual terms which help to provision the obligation, breach according
to the litigation of the terms. The contract terms should be fair according to the
Australian Contractual terms. The terms help to identify the aim to form the contract
and the legal effects which will be applicable for the both parties.
The express terms in the contract must be enforceable, must establish promissory statement
which could be implied written or verbally. The implied terms of the contract will describe the
‘in fact’ terms according to the intension of the parties before they form the contract. However,
the contractual terms can be conditions, warranties or innominate or intermediate terms
(McKendrick 2014).
The condition of the contract is one of the main terms when a contract is formed. The parties
will imply the condition according to their mutual decision. If any of the party breaches the terms
then the innocent party will claim the compensation for the damages. In the case of Poussard v
Spiers (1876) it has been established that the parties were unable to perform according to the
terms of the contract and breach the conditions.
The term warranty defines the guarantee or promise where one party assures another party
about particular warranties for the implication of the contract. When the warranties are specified
then the enforcement of the facts should be fair according to the contract. When a warranty has
mentioned in the contract then the contract also allow the legal remedy in the contract f any party
breach the terms of warranty. Most of the time the warranty is used in the sale of goods contract

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terms regarding the supply of the goods. If any of the term has breached then the consumer will
take legal actions against the supplier. In the case of Clark v Macourt [2013] it has been found
that the aggrieve party has breach the warranty terms when the seller sale the products to the
buyer. Therefore the buyer has awarded with compensation (McKendrick 2014).
The intermediate terms are also the concept of the breach of the terms in the contract. When
the aggrieve party has rights to terminate the contract as per some consequences and severity of
the breach. If the innocent party find the seriousness terms in the contract for the breach then he
has right to take legal actions against the aggrieve party. If again the cause has been performed in
future then the party claims the compensation for the damages.
The implied terms are essential for the formation of contract where it establishes the clauses
for the termination of the contract. When the terms are applied against the nature of the rules
then the contract can be terminated. When the promisee make the assurance about the strict or
substantial performance of the promise in the contract then the contract can be terminated. The
absence of the terms could be the reason for the termination. Therefore all of the terms give the
provision for the innocent party to terminate the contract for the breach of the terms by the
aggrieved party.
ii) According to the contract law the contract only terminated when the consequences of
the conditions has been breached. The promise of only establishes when the promisee
assured about strict a substantial performance which is apparent to the promisor. The
consequences of the warranty oily applicable for the breach the terms. However,
according to the contract law the parties can terminate the contract if there is any
important reason has been established by the aggrieve party. The intermediate or in

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nominate terms express the serious cause of the termination. It the breach is
determined and aggrieves party breach the terms then the innocent party take legal
actions against the aggrieved party and also claim for the compensation (McKendrick
2014).
Question Two
According to the case study, the issue has been arise for Ahmad for the supply of the
fireworks to a client when the NSW government announces another 5 more permits for the sale
of fireworks.
According to the case study, when Claudia has placed order of $10,000.00 of fireworks
which has to deliver to the client by Ahmed then it is the duty of him that to supply the goods
according to the contract. As the NSW government announces another 5 more permits for the
sale of fireworks an obligation has been arose to deliver the goods within the time.
According to the expressed terms the contract should be expressed with the client for the
supply of the goods. As they are failed to deliver the supply of the fireworks therefore they are
paid of $10,000.00. According to the terms of the contract it has been breached by the supplier.
According to the nature of the contract the innocent party can terminate the contract when the
seriousness of the clause has been discussed in the implied terms (Poole 2016).
Warranty is the term which defines the guarantee or promise where parties assure each
other about the particular warranties for the implication of the contract. When the warranties are
specified in the contract terms then the enforcement of the facts should be fair according to the
contract. When a warranty has mentioned in the contract then the contract also allow the legal
remedy in the contract of any party breach the terms of warranty. Most of the time the warranty

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is used in the sale of goods contract terms regarding the supply of the goods. If any of the term
has breached then the consumer will take legal actions against the supplier. However as the
supplier of the goods it is the liability of him to provide the goods where the guarantee of the
contract also implied. However according to the government special rules and regulation Claudia
has taken the permission to run the business of fireworks. Now, according to the government
rues is there is any other provisions has been introduced for the sale of fireworks then the
supplier has not breach the contract terms directly (McKendrick 2014).
There fire according to the act of Parliament introduced such terms in the sale of the
goods where the act has prohibits those conditions of the application, exercise or liability under
the liability of the breach the terms of condition or warranty (Andrews 2015). Another issue can
be identified in the contract terms when the government has implied the laws for the sale of
fireworks (Poole 2016). According to the Act of Parliament never breach the terms because it
will hamper their business. The rules of the sale terms are should be followed for the seller. If the
government has found that the sale was processed without the rules and law of the sale and
goods then the sale will become illegal, invalid or unenforceable then it will affect the firework
business for the legality, validity or enforceability of the law of the contract in sale of goods
(Cartwright 2016).
Therefore according to the terms of the contract law the Ahmed who is the supplier of the
fireworks has failed to supply the products within the fixed time. According to the term of
efficient breach is the fundamental breach where it is necessary to breach the terms and terminate
the contract. In this case, it has been found that according to the terms of the contract Ahmed is
supposed to supply the fireworks on 6th July (Andrews 2015).

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However later the NSW government has announced on the day of deliver the goods that
another 5 terms of permits for the sale of the fireworks where Ahmed or Claudia has no ways to
deliver the fireworks on time. Here, it can be stated that they have no liability for the breach
because according to the government rules the seller are bound to follow the terms (McKendrick
2014).
Therefore no breach has occurred by the supplier to deliver the goods. The clients are
bound to pay them the $10,000.00 according to their contract of delivery of fireworks. According
to the discharge of the contract there is no breach has occur. In the famous case of Re Moore
and Landauer [1921] it has been found that the contract has been breach due to the interference
of the government for setting new rules (Poole 2016).
Question Three
i) According to the case study, the issue has arises when Jessica looks for the
construction work on the fence she explored that the material for built the fence
has been used cheap materials (Cartwright 2016). However for the formation of a
valid contract three are several elements should present in the valid contract.
There are mainly five essential elements are need to form a valid contract. Those
are:
 Agreement
 Consideration
 Capacity
 Intention
 Certainty

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According to the contract there must have an agreement should introduced to form the
contract between the parties. In the valid agreement one party will offer and another party will
accept the offer. They should have clear and fair concept to form the contract. They must have
the willingness to for the contract and bound to follow the terms according to the offer. The offer
also defines the invitation to treat of the offer and accept the terms (McKendrick 2014).
Another term is consideration to the contract. For the formation of the contract both of
the parties will consider the terms of the contract. In the consideration the parties should consider
the enforceable of the term in the contract. The consideration could be the offers, promises or
money (Andrews 2015). In the consideration one party will return anything regarding the
contract to another party for the promise which has been included in the contract. However, in
the consideration of the past consideration is never sufficient to perform for the services
according to the agreement terms (Poole 2016).
The capacity is another essential element to form the valid contract. As per the capacity
of the contract the parties should have the ability to form the contract. They are bound to form
the legal contract which consider the legal terms of the contract (Andrews 2015). The people
who are not complete the age of minority are not able to enter in to a legal contract. However
there are some exceptional to the term is the minor has the capacity to enter into the contract if
the opposite parties are considering the contract. The person who is unsound mind is not entitled
to enter into the contract. The drunken person or the mentally impaired persons are also not
allowed to enter the contract. They have not the adequate capacity to form the valid contract
(Cartwright 2016).

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ii) According to the contract law if the contract terms are not followed then it will
breach the contract. There are mainly four kinds of breaches which includes the
material breach, minor breach, anticipatory breach and actual breach. Therefore
according to the contract with JJ construction they are asked to recycle the bricks
but they use cheap cement blocks instead of the recycled bricks. Mario has
provided payments to the JJ construction. Therefore according to the contract
terms JJJ construction has breached the duties to complete the contracts. It is a
form of the actual breach where the innocent party can claim for the remedies
against the breach of the contract terms (Poole 2016).
According to the case facts, Mario can sue JJ construction for the breach of contracts.
According to the breach the court can compensate the innocent party for damages. Therefore a
court order is requiring for carrying out the obligation by the aggrieved party for breach the
contract. The liquidated damages will be estimated for the innocent party as compensate for the
breach of the contract. The rendered amount will be considered as an amount which is the
penalty for breach the terms of the contract. However the remedies can be claimed for the breach
of the contract (Cartwright 2016).

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Reference
Andrews, N., 2015. Contract law. Cambridge University Press.
Austen-Baker, R., 2013. Implied Terms in English Contract Law.
Carter, J., Courtney, W. and Tolhurst, G., 2014. Issues of Principle in Assessing Contract
Damages.
Cartwright, J., 2016. Contract law: An introduction to the English law of contract for the civil
lawyer. Bloomsbury Publishing.
Clark v Macourt [2013] HCA 56
Feldman, S.W., 2017. Laws as Implied Contract Terms: The Divergent Approaches and a
Proposed Solution.
Ganglmair, B., 2017. Efficient Material Breach of Contract. The Journal of Law, Economics, and
Organization, p.eww020.
Issa, M.R., 2015. Damages and Compensation in Case of Breach of Contract. International
Journal of Social Science Research, 3(1), pp.190-201.
Knapp, C.L., Crystal, N.M. and Prince, H.G., 2016. Problems in Contract Law: cases and
materials. Wolters Kluwer Law & Business.
McKendrick, E., 2014. Contract law: text, cases, and materials. Oxford University Press (UK).
Poole, J., 2016. Textbook on contract law. Oxford University Press.
Poussard v Spiers (1876) 1 QBD 410

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Re Moore and Landauer [1921] 2 KB 519.