LA4015 Contract Law: Problem Questions and Legal Relations Analysis

This report delves into key aspects of contract law, including offer, acceptance, revocation, and the intention to create legal relations. Section A addresses two problem questions: the first analyzes Jason's liability in a dance competition scenario, considering elements of offer and acceptance, and the second examines whether First Build Ltd can refuse payment to Plumbers 24/7 Ltd, focusing on contract revocation. Section B presents an essay discussing the rebuttal of the presumption against intending to create legal relations in social and domestic agreements, emphasizing the significance of intention in contract formation. The analysis incorporates relevant case law to support arguments and conclusions. Desklib provides students access to similar solved assignments and past papers.

Contract law
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
SECTION A...........................................................................................................................3
Question 1 .......................................................................................................................................3
Question 2........................................................................................................................................5
Advise Plumbers 24/7 Ltd .....................................................................................................5
SECTION B............................................................................................................................6
How far is it possible to rebut the presumption that there is no intention to create legal
relations for social and domestic agreements.........................................................................6
CONCLUSION..............................................................................................................................10
RERENCES...................................................................................................................................11
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INTRODUCTION
Contract laws are those laws which are used in order to form contract over agreements
taking place between two or more then two parties. These laws posses various rules and
regulations which are used for developing strong legal structure which is used for making
contract build in more effective way. Contract law are used for making guidelines and rules that
leads over forming legal contract. They are known as legally enforceable agreements used for
creating and defining about mutual rights existing between parties. The contract typically
involves transfer of goods, services and money required to be taken place between parties. In
this file there are two sections within which first two questions are based over case scenario
related to contract. In second section essay require to be written which is related over possible to
rebut the presumption that there is no intention to create legal relations for social and domestic
agreements.
MAIN BODY
SECTION A
Question 1
Issue: Weather Jason holds legal liability against Millie, Jean Paul, Sophia and Joshua?
Rule: Contracts laws are those law which are used in order to form agreements in legal manner
as per guidelines mentioned within contract law. Under contract laws there are various kinds of
elements that is used which are offer, acceptance, obligation and legality.
 Offer: In this only idea of performing contract is presented to parties. Offer is only related
to promise which refrain from doing something in exchange of something else.
 Acceptance: This is based over showing acceptance in relation to idea that has been
presented through offer.
 Consideration: Under it inducements has been given while entering within contract over
sufficiency rendering in relation to promise enforceable over courts.
 Legal Relation: Under it all laws which has been used within contract are analysed in this
act, agreement and jurisdiction is covered.
These element helps over forming contract if any one element is absent then contract
cannot be formed. The rule of invitation to treat covered under offer and acceptance is applied
within the case scenario. As per the concept of invitation to treat it has been marked out that an
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offer is presented in any form but no acceptance is shown upon it which leads towards absence
of acceptance within a contract. Further in this an offer is presented through providing invitation
over accepting it. The invitation to treat which is also invitation to offer, invites the other party to
come and make an offer for which the acceptance has to be done by the former party who makes
an invitation.(Martín-Casals, 2019). Invitation to offer also exists mainly stand applicable to the
case of advertisements or the display of goods in the shops or market places. Where one moves
forward to purchase any goods the display of the same in the shop is considered as the invitation
made by the shop owner where any one can come choose to buy the goods while negotiating the
prices. Invitation to treat takes place only when offer is made but no acceptance is created. The
relevant cases in relation over invitation to treat is Carlil v. Carbolic Smoke Balls Company,
which is one of the most famous case with respect to the concept of invitation to treat. Where it
was held by the court that there lies the binding contract between the plaintiff and the company
as son as the plaintiff buys the product of the company reason being the act of depositing the
money in account by the company shows their intent to be legally binding.
Application: Moreover in the cases of invitation to treat which stands also applicable to the
given case study of Jason, there lies the major role of intention in ascertaining the applicability of
the said contract. In the case of Similarly in the given case where the advertisement made by the
Jason to the general public for being the part of the dance competition while also stating the
prices as a winning amount. So here when the Jason made the advertisement then he is said to
make an invitation to treat to general public which the same was accepted by the Milie and Jean
as well as by Sophia and Joshua, in an implied way by the act of continuous dancing from 11
pm to 4 am. Also as a general rule of acceptance, the revocation of the offer must have been
made before the offer has been already accepted, which here in this case was mad by the Jason at
2 am after the offer has already been accepted by the interest parties as they were continuously
dancing from the 11pm . An offer or proposal has been defined as an act where one person
signifies to another person his willingness to do certain act or abstain from doing certain act
while having a view to obtain the assent of the other individual for the said act or abstinence.
One simple example of this can be where the one person makes an offer to sell his motorbike at a
certain sum of money. Here the person has made an offer(Machnikowski, Balcarczyk and Drela,
2020). Further when the other party accepts the same on the given price he is said to made an
acceptance as a result of which they are said to be entered into the contract. And further once the
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said consideration has been paid by one party one the motorbike has been delivered by the other
party then in such case the contract is said to have been performed. Generally the offer can be
made in either specific or general form. Where the offer which has been made to the general
public is said to be the general offer. An example of this can be where the advertisement made
for the lost pet or goods to the general public while stating some amount of consideration. Here
the any person who finds and returns the pet has said to become the party to contract and hence
is legally entitled to claim the amount of compensation. Whereas the specified offer is the one
which has been to some particular individual on personal basis. In this scenario there lies no
foundation of the part of any of the party to perform any such specified action until the one
makes an offer and the same gets accepted by the owner on the stated prices. But in order to have
the applicability of the concept on the given case there it is require that one must have a keen
knowledge of both the said concepts in depth.
Conclusion: Therefore seeing the said contentions the Jason stands liable against the Milie and
Jean as well as by Sophia and Joshua reason being it fulfils all the components of legally entitled
contract(Kreitner, 2021). As the advertisement made by the Jason is treated as the invitation to
offer along with also stating the specific consideration amount. But the same was got converted
in the offer when the parties accepted in in the implied way and started to act while being the
part of dance competition on the stated time as per the mad advertisement. Also the Jason stands
liable against the parties because, even though he made the revocation of the contract but the
same was not made prior to the acceptance of the offer which makes it not acceptable as the
general rule of acceptance under the law of contract.
Question 2
Advise Plumbers 24/7 Ltd
Issue: Weather First build Ltd can refuse to pay to Plumbers 24/7 Ltd?
Rule: Under the law of contracts refuse to pay has accrue causing revocation take place within
the contract. The rule in relation over refuse to pay is revocation that has been covered within
contract law. Revocation means annual cancellation of contract which is based over making
contract to cancelled due to violation of obligation taking place within contract. In relation to
revocation of contract important case law which is applied are Co Ltd v Karlshamns
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Oljefabriker as per the case, the claimant has mad a purchases of soya beans which has to be
shipped by the way of appellant vessel. The vessel named the British Monarch(TBM),who was
travelling from from Japan to Sweden, as the cargo was loaded by the said goods and the journey
was made to started. Later the said vessel faced a major problem with respect to its boilers which
resulted in the delay of the shipment of the claimant (Knapp, Crystal and Prince, 2019). Further
also during the period of delay the war broke up and as a result of which the TBM was ordered to
unload the whole shipment in Glasgow. Now claimant arranged abut cargo ad defendant wants to
recover loss. So, defended filed claim over outbreak of war and chain of causation. Court held in
the case that war did not impacted chain of causation as defendant should see possibility which
caused delay of voyage resulting in diversion of vessel. Bailey v Bullock in this case court held
that recover of damages reflects over incontinence having live within overcrowded
circumstances. Another cases is Stilk v Myrick which is an english contract contract law case
within which judgement passed says that an individual was bound to do a duty under an existing
contract, that duty could not be considered valid consideration for a new contract. The judgement
of the case has been passed in relation to Williams v Roffey within which suggested situation is
handled over considering situation handled by doctrine of economic duress. Hartley v Ponsonby
the crew is entitled to extra payment which has been promised over grounds either having going
beyond existing contractual duty over voyage making it frustrating over original contract and
leaving the crew free to negotiate a new contract.
Applicability: The above case are applicable within given scenario in a way that payment were
extra payment is not given to them. So, as per the scenario it has been Plumbers 24/7 Ltd should
use case of Bailey v Bullock and Hartley v Ponsonby . In order to file suite against First build
Ltd. As the situations within the scenarion shows that contract has been formed between First
build Ltd and Plumbers 24/7 Ltd which was revoked.
Conclusion: Upon analysing the above case scenario and relevant cases it has been marked out
that refuse to payment cannot be done under any circumstances since proper legal contract exists
within them. Thus by refusing the payment violation over obligation of contract has been done
which made revocation of contract done. So, it can be marked out that claim can be attained by
Plumbers 24/7 Ltd by using damages as remedy.
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SECTION B
How far is it possible to rebut the presumption that there is no intention to create legal relations
for social and domestic agreements.
Intention over creating legal relation is an important part of elements which is used
within contract. It has been defined as intention to create legal relations as the intention to enter
into legally binding contract and agreements. This is an important element which is used over
forming contract. It is used for showing readiness over parties included for accepting legal
consequences making agreements formed. Through the concept an contracting party requires
over entering within binding contract in lawful manner. As per the intention to create legal
relation various things requires to be kept in mind that is contracting parties should have the
obvious mid required for entering within serious contract. The contract is enforceable, legal and
binding in nature with intention over making legal relation. If the intention is absent then parties
cannot sue each other. The contract may lack binding effecting the absence of creating legal
relation. As per the contracts act with silent intention over the state that is necessary for parties
over making contract intention within the mind they have been deciding over drawing complete
agreement by words of action that is required to be wants by them for legal binding. The
common law principles states that no biding contract has been used over involving parties in
agreement making contract included within the existence of intention. In order to prove this
objective test has been conducted in this court will refer over opinion in reasonable way. As per
this presumption test makes courts established over burden of proof. There are two way within
which existence of intention has been defined that is Objective test in this consideration is
reasonable. The courts has been referring over opinion with reasonable man test through the test
courts is able to refer over opinion that if promiser is not intended to create legal relation that is
not promiser over deciding but the court would make assumption that intention exists over
reasonable man over opinion making promiser . The case of Carlill V Carbolic Smoke Ball
Company court has applied within objective test and has been examined that reasonable man
should know all circumstances of case it has been believed parties intention requires to be
bound . The judgement passed within case is that advertisement stated that organization requires
for showing their sincerity within the matters of 1000 pounds within the Alliance Bank. The
court held that court over any objective leading toward presumption makes parties to develop
contract which results in causing legal relation developed(Graziano, 2019). Then comes rebut
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table presumption is based over establishing burden of proof which cannot be rebutted by
evidence in the country . In relation to this presumption over exists requirements of courts make
legality to be develped within the case mentioning about proof. In this there are mainly two types
of agreement which are related to, Social, family or other domestic agreements:
There is a presumption of no contract in family agreements whereas the Social agreements are
decided based on the merits and demerits using objective test. It is also divided within two main
agreements that are agreement between husband and wife. The legal principles states that an
agreement between husband and wife have been presumed over intention creating legal relation
over the presumption showing intention to create legal relation making facts of each case to be
identified and analysed more effectively. Agreements between parent and child this is
understood with the help of case that is Balfour v Balfour within which agreement within
mother and daughter has been explained. This makes mother lived in Trinidad and mother was
very keen for her daughter to study law so that offer has been made over giving up post within
Washington DC and moved to London. Also she provided an apartment and pay for her keep up
it was accepted by daughter making offer accepted. In the few years fell off and mother wanted
her possession back to apartment. The daughter refused over it within which court held that
presumption over no intention to create legal relationship within the case since the daughter and
mother are included. The Case related to Balfour vs Balfour states that a wife and a husband who
are belonging to Sri Lanka. This case later turns into a major change as they go back to England.
They were in England, the wife was not well and went sick. As a result they were not able to
come back to Sri Lanka. The Husband promised to pay his wife a good amount of money after
settling back to the Ceylon. After a certain time period of time, husband stopped money supply
to his wife. Judgement- The court ruled that the husband is not entitled to pay the wife any
consideration. This case does not include intention to develop a legit and legal relationship
between husband and wife. There is an exception where the wife is separated from husband. The
husband finally moved out and the wife was supposed to stay in the home only. The wife has
also developed a signature paper which is to be signed by the husband. Judgement- The
respected court has made a judgement that they were separated and finally husband signed the
paper which has developed a legal obligation. In this case, the court has also considered
effectiveness of different operations related to social and legal care of the husband and wife. It is
also now major role and responsibility of the husband and wife to focus on achievement of goals
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and objectives which are developed by the law. Also with the help and support of legal remedies
the husband and wife can develop legal actions(Eisenberg, 2018)
It can be observed that intention to create legal relations for social and domestic
agreements which has been discussed in detail. Also the above discussion proves about the
creating strong legal relationship within domestic agreements that is an important part of
contract. The legal contracts are formed over domestic relations with the helps of binding
contract which provides relevancy over it. Also important cases has been discussed in order to
provide strong reference over the topic. Further, in this various kinds of aspects holds
responsibility over domestic relationship and there maintenance with positive approach that
helps in making agreement formed as legal binding contract for strengthening legal relationship
within society.
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CONCLUSION
From the above discussion it can be concluded that contract law are those laws which has
been used in order to make strong agreements created making contract legalized within the eyes
of law. In this file there are two sections which covers information relate to contract. The first
section explains about case scenario based over invitation to treat and damages. Invitation to
treat is an condition existing within contract and damages is remedy available over it. In second
section covers about various aspects related to binding contract forming legal relationship.
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RERENCES
Books and Journals
Eisenberg, M. A., 2018. Foundational principles of contract law. Oxford University Press.
Graziano, T. K., 2019. Comparative contract law: cases, materials and exercises. Edward Elgar
Publishing.
Knapp, C. L., Crystal, N. M. and Prince, H. G., 2019. Problems in Contract Law: cases and
materials. Aspen Publishers.
Kreitner, R., 2021. Speculations of contract, or how contract law stopped worrying and learned
to love risk. In Governing Risks (pp. 439-481). Routledge.
Machnikowski, P., Balcarczyk, J. and Drela, M., 2020. Contract law in Poland. Kluwer Law
International BV.
Martín-Casals, M. ed., 2019. The borderlines of tort law: interactions with contract law.
Intersentia.
Mathew, R., 2020. Force-Majeure under Contract Law in the Context of Covid-19
Pandemic. Available at SSRN 3588338.
Tan, Z. X., 2020. Where the action is: Macro and micro justice in contract law. The Modern Law
Review. 83(4). pp.725-760.
Tereszkiewicz, P., 2020. Digitalisation of insurance contract law: preliminary thoughts with
special regard to insurer’s duty to advise. In InsurTech: A Legal and Regulatory
View (pp. 127-146). Springer, Cham.
Woebbeking, M. K., 2019. The impact of smart contracts on traditional concepts of contract
law. J. Intell. Prop. Info. Tech. & Elec. Com. L., 10, p.105.
Zhang, M., 2019. Chinese contract law-theory & practice. Brill.
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