BUSINESS LAW

ASSESSMENT TWO

BUSINESS LAW

Table of Contents

TOC o "1-3" h z u IDENTIFICATION OF LEGAL ISSUES PAGEREF _Toc113454695 h 3IDENTIFICATION OF LEGAL RULES PAGEREF _Toc113454696 h 3ANALYSIS AND ARGUMENTS PAGEREF _Toc113454697 h 7CONCLUSION PAGEREF _Toc113454698 h 8REFERENCES PAGEREF _Toc113454699 h 9

IDENTIFICATION OF LEGAL ISSUESThe legal issues which have been arising out of the following scenario are-

If there is any valid contract formation about the banners?

If there is a valid contract formation about the outdoor sign?

Is the party Wineglass Bay Seafood bound by the terms and conditions of a contract?

Are there any other legal issues that arise out of materials?

IDENTIFICATION OF LEGAL RULESAccording to the law of contract, the term contract is defined as a set of promises which is enforced by the law. The contractual promises are considered to be enforceable in the eyes of the law when it provides the legal right to the parties for taking legal action in case the party has incurred any loss and the other party has failed in keeping its promise under the contract.

The contract is considered a fundamental basis of every commercial relationship. These laws of the contract are concerned with the principles of incorporating a contract, its performance, breaches of the contract, and its interpretation of the contract.

The process of the formation of the contract includes-

Discussion and negotiation with the parties like for buying and selling of the goods,

It also includes making statements either in writing form or in oral form,

It also includes agreeing on the terms and conditions stated among the parties to the contract,

And then the formation of a legal contract takes place.

There can be various forms of valid contract under the law-

Simple contracts-

These simple contracts can be oral, written, or partly oral and partly written. It requires all the elements of the contract to be present and validate the contract with a valid consideration.

Deeds or formal contracts-

The formal contract requires satisfying all the formalities, and there is no specific need for consideration that is mutual promises. The deeds are mainly required for the unilateral form of contracts, or where the law specifically requires the formation of deeds like a title deed.

The written form of contract is required because the simple verbal contract is valid, but it is treated as a good practice in a commercial manner. This is mainly to avoid disputes and if the deed is in written form, then it is presumed by the court as a whole contract and the court would not allow any other oral evidence to make a change or to make any contradictory statement on the written document. This is legally known as the parole evidence rule. The exceptions to the parole evidence rule are- whenever there is any kind of ambiguity or uncertainty in the written document, the oral evidence is permitted by the court.

The basic elements which are required for the formation of a contract are-

The intention of creating legal relationships-

The intention to create a legal relationship is usually conferred in such relationships which occurred at the commercial level but are not conferred on family relationships or social relationships. Concerning the case law, Rose & Frank Co v JR Crompton & Bros Ltd, it was held by the court that there was an intention of creating legal relationships between the parties which makes the contract valid.

Consideration-

The consideration is a term that simply means something in return, almost required in every type of contract except deeds. It is in the form of promises which are required to be performed by each of the parties to the contract. Concerning the case law, Currie v Misa [1875], it was held that the consideration may be in the form of the interest, right, promise, and benefit that is undertaken by both parties.

Concerning the case law, White v Bluett, it was held that consideration must be real and should not be illusionary, but also referencing the case law, Thomas v Thomas, the consideration can be nominal.

Concerning the case law, Collins v Godfrey, it was held by the court of law that existing duty can not be considered a good consideration.

Mutual consent-

The consent of the parties who are entering into the contract must be genuine, and there must not be any kind of misrepresentations or mistakes in the formation of a valid contract.

Mutual form of agreement-

The proper offer and acceptance and the conduct of the parties form a valid agreement. Concerning the case law, R v Clarke, it was held that the acceptance must be in response to the offer, but the counter offer does not lead to the formation of the contract.

Also, concerning the case law, Tinn v Hoffman [1873] 29 LT 271, it was held that acceptance must be correspondent to the offer. The formation of a contract takes place based on certain terms, which are required to be accepted by the communication in different terms, and this document is called a counteroffer.

Legal capacity of all the parties-

The parties must be legally capable to enter into a contract and thus they cannot be mentally incapable, minor, etc.

The legality of the objects-

The purpose of entering into the contract of the parties must not be illegal. It makes the contract void-ab-initio.

The law of torts-

According to the law of torts, the term negligence is defined as the conduct that falls below the reasonable standard of care which was required to be taken but the party has been a failure in the same causing harm and damages to the other party. There are three major elements to the law of torts that are- Duty to take standard and reasonable care, Breach of duty, and causation and remoteness.

The duty of taking reasonable care is established with the help of relationships that exist between the parties. Concerning the case law, Donoghue v Stevenson, it was held by the court that there is a legal duty of care established between the manufacturer and the consumer of the goods. In case of a breach of that duty of care, the manufacturer is held liable for the compensation of the damages that occur.

ANALYSIS AND ARGUMENTS

Therefore, in the given case scenario, Jeremy and Hugh was having a negotiation regarding the rate of banners and outdoor design on the 18th of February 2022. Regarding the outdoor design, Hugh replied with a rate of 7000 dollars but Jeremy made a counteroffer for 6250 dollars. Concerning the case law, Tinn v Hoffman [1873] 29 LT 271, it was held that acceptance must be correspondent to the offer. In this case, it was a counteroffer and not acceptance, thus there is no formation of the contract. Also, on the 22nd of February 2022, she mailed regarding the cancellation of the banners, and thus she is not liable to pay for the same. Regarding the banners, Hugh made an offer to supply designs at the rate of 158 dollars per banner, or else they would provide the same to her for free, in return for advertisements and Jeremy replied with thanks. Therefore, there is an acceptance and offer and thus there is a formation of a valid contract regarding the banners and she has to pay for the same.

Applying the case law, Rose & Frank Co v JR Crompton & Bros Ltd, it was held by the court that there was an intention of creating legal relationships between the parties which makes the contract valid and bound the terms and conditions on them. When the legal contract has been formed between Hugh and the party Wineglass Bay Seafood, then the terms and conditions regarding the banner are legally binding on both parties.

Further, in the given scenario, there was a duty of care which was owned by Hugh and its company towards the company of Jeremy, because he has delivered the services which were not ordered though. Applying the case law, Donoghue v Stevenson, it was held by the court that there is a legal duty of care established between the manufacturer and the consumer of the goods. In case of a breach of that duty of care, the manufacturer is held liable for the compensation of the damages that occur. While uninstalling those services, there was an occurrence of damage because there was a breach of the standard duty being owed. Therefore, all the damages caused to their property of Jeremy must be compensated by Hugh according to the law of torts.

CONCLUSION

It is hereby concluded that there was no valid contract formed regarding outdoor designs, but there was a valid contract formed about the banners. The party Wineglass Bay Seafood is bound by the terms and conditions of a contract with Hugh regarding banners as there is a valid formation of the contract. Also. The legal issues in relation to the occurrence of torts of materials arises because the damages has been caused to the property of Jeremy while uninstallation of the designs and Hugh is likely to be held responsible for compensating such damages of 25000 dollars.

REFERENCESAbhyuday. "Donoghue vs Stevenson." Jus Corpus LJ 2 (2021): 97.

Deagon, Alex. "The Lawyer's Question: Who is my Neighbour?." City Legal (2019).

Eisenberg, Melvin A. Foundational principles of contract law. Oxford University Press, 2018.

FBA, Jack Beatson, Andrew Burrows FBA, and John Cartwright. Anson's law of contract. Oxford University Press, 2020.

O'Sullivan, Janet. O'Sullivan and Hilliard's the Law of Contract. Oxford University Press, 2020.

Pal, Malabika. Economic Analysis of Tort Law: The Negligence Determination. Taylor & Francis, 2019.

QC, Adam Kramer. The law of contract damages. Bloomsbury Publishing, 2022.

Taylor, Richard, and Damian Taylor. Contract Law Directions. oxford university press, 2021.

ASSESSMENT TWO

BUSINESS LAW

Table of Contents

IDENTIFICATION OF LEGAL ISSUESThe legal issues which have been arising out of the following scenario are-

If there is any valid contract formation about the banners?

If there is a valid contract formation about the outdoor sign?

Is the party Wineglass Bay Seafood bound by the terms and conditions of a contract?

Are there any other legal issues that arise out of materials?

The process of the formation of the contract includes-

Discussion and negotiation with the parties like for buying and selling of the goods,

It also includes making statements either in writing form or in oral form,

It also includes agreeing on the terms and conditions stated among the parties to the contract,

And then the formation of a legal contract takes place.

There can be various forms of valid contract under the law-

Simple contracts and Deeds or formal contracts-

These simple contracts can be oral, written, or partly oral and partly written. It requires all the elements of the contract to be present and validate the contract with a valid consideration. The formal contract requires satisfying all the formalities, and there is no specific need for consideration that is mutual promises. The deeds are mainly required for the unilateral form of contracts, or where the law specifically requires the formation of deeds like a title deed.

This deed is in the form of written documents that show the terms and conditions of the agreement. This is formed between the parties, for example, settlement deed, and will. There is no such requirement of consideration, and the formalities must be followed. The written form of contract is required because the simple verbal contract is valid, but it is treated as a good practice in a commercial manner. This is mainly to avoid disputes and if the deed is in written form, then it is presumed by the court as a whole contract and the court would not allow any other oral evidence to make a change or to make any contradictory statement on the written document. This is legally known as the parole evidence rule. The exceptions to the parole evidence rule are- whenever there is any kind of ambiguity or uncertainty in the written document, the oral evidence is permitted by the court.

The basic elements which are required for the formation of a contract are-

The intention of creating legal relationships-

Consideration-

Concerning the case law, Collins v Godfrey, it was held by the court of law that existing duty can not be considered a good consideration.

Mutual consent-

The consent of the parties who are entering into the contract must be genuine, and there must not be any kind of misrepresentations or mistakes in the formation of a valid contract.

Mutual form of agreement-

The law of torts-

ANALYSIS AND ARGUMENTS

As in the given case scenario, Jeremy and Hugh were having a negotiation regarding the rate of banners and outdoor design on the 18th of February 2022. Regarding the outdoor design, Hugh replied with a rate of 7000 dollars but Jeremy made a counteroffer for 6250 dollars. Concerning the case law, Tinn v Hoffman [1873] 29 LT 271, it was held that acceptance must be correspondent to the offer. In this case, it was a counteroffer and not acceptance, thus there is no formation of the contract.

Also, on the 22nd of February 2022, she mailed regarding the cancellation of the banners, and thus, she is not liable to pay for the same.

Regarding the banners, Hugh made an offer to supply designs at the rate of 158 dollars per banner, or else they would provide the same to her for free, in return for advertisements and Jeremy replied with thanks. Therefore, there is an acceptance and offer which turns it into a valid contract. Thus, there is a formation of a valid contract regarding the banners and she has to pay for the same. Applying the case law, Currie v Misa [1875], it was held that the consideration may be in the form of the interest, right, promise, and benefit that is undertaken by both parties.