...and acceptance are typically used to determine whether the parties are obliged to fulfil their promises. Formation of a valid contact required some essential elements. Essentials Elements of a Valid Contract: 1. Proposal and acceptance 2. Consideration 3. Legal relationship 4. Enforceable by law Proposal and acceptance: The most important elements in a contract is an offer as without it no contract is possible and An offer would be not possible with the acceptance in order to create a valid contract. It is a definite promise to be bound on specific terms which must be legally valid or acceptable between two or more parties. After offering the goods it must be accepted by the related person. For example: Mr. hasan want to give an advertisement about hi products. He looks for the offer in an advertisement agency. He made the agreement with Agency to give a advertisement. The Agency will prepare a contract by making forms with terms and conditions and required documents which need to be filled up by Mr. hasan. Once Mr. hasan agreed on Terms and Condition and sign the form, the contract has been made between the Mr. hasan and the advertising agency. Consideration: Consideration in a contract is defined as one person would give back something in return of getting something. It could take the form of payment of money for property, goods or services, exchange of services etc. Every contract...
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...Offer The first element in a valid contract would be offer. An offer or a promise or an agreement needs to be in contract because if there is no offer than there will be no contract. In the Contracts Act, 1950, the first elements in a contract would be offer. It is one of the elements to make sure that the contract is legally valid or acceptable. In a contract, it is very important that a party would make an offer. There is a difference of offer between an advertisement and an option. To make an offer, there should be at least two parties or even more so that it would be legally capable of entering into a contract. If the offer is accepted than it would constitutes to a legally valid contract. When an offer is being made, the other party or person would know what is being offer and what the person or party who made the offer expect to have in return. It is the same when anybody goes on a holiday, stays at a hotel and so on. For example, a family has made an arrangement with a tour agency to have a holiday at Hong Kong for a few days. The tour agency would make a contract by making forms to the family which would have to be filling up. The family member who fills up the form would have to be clear with the rules and regulations given by the tour agency company. Once it is fills up, the contract has been made between the family and the tour agency. 1.1.2 Acceptance After having an offer in the contract, there should be acceptance. For a contract to be made there should be acceptance...
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...FORMATION OF CONTRACT FORMATION OF CONTRACT 1. INTENTION to create legal relations Carlill v Carbolic Smoke Ball Co ‘Test’ of intention (I) to determine if agreement between parties were intended to have contractual force Edmonds v Lawson Domestic Agreement (NI) btwn close family members are not legally binding Balfour v Balfour Cohen v Cohen Domestic Agreement (I) with additional circumstances Merritt v Merritt Wakeling v Ripley Agreement btwn friends/ to provide charitable services (NI) are not legally binding Teen Ranch Pty Ltd v Brown Agreement btwn friends/ to provide charitable services (I) with additional circumstances Ermogenous v Greek Orthodox Community of SA Inc Commercial Agreement (I) have intention to be legally bound Carlill v Carbolic Smoke Ball Co Esso Petroluem Co Ltd v Commissioners of Customs & Excise Final creation of contract can be delayed if that is what the parties intended – when formalities are completed Masters v Cameron Perry v Coolangatta Investments Pty Ltd ‘Letter of Comfort’ given by creditor to debtor as obligations assurance may/may not intend to be legally binding MAY - Banque Brussels Lambert SA v Australian National Industries Ltd MAY NOT - Commonwealth Bank of Australia v TLI Management Pty Ltd 1. INTENTION to create legal relations Carlill v Carbolic Smoke Ball Co ‘Test’ of intention (I) to determine if agreement between parties were intended to have contractual force Edmonds v Lawson Domestic Agreement (NI) btwn close...
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...between parties who intend to create legal relations. Without the use of formal contracts, differing levels of ambiguity can occur between parties in regards to issues surrounding what promises/offers exist between the parties and what could be the possible consequences in cases where one or more of the parties fail to fulfil the terms agreed between them. A level of ambiguity appears to have arisen in the example given in the case study regarding Woohoo Wholesale (WW) and Provident Solutions (PS). This Essay services to investigate whether or not all of the necessary elements for a legal contract to be valid were in place. Firstly, in order for a contract to be legally binding, there are six elements that must exist. * An offer: A promise to do or not to do something proposed involving clear terms and finality. An offer is nullified if the offeree makes a counteroffer to the offerer. * Acceptance of the offer: The offeree must display absolute acceptance of the offer through written/verbal agreement or in their conduct. Silence does not constitute acceptance. * Consideration: There must be an exchange between the parties, involving a promise for a promise or a promise for performance flowing from the offeree to the offerer and the promise/performance must hold value. * Intention to create legal relations: This presumption can be rebutted with the onus being on the party who wishes to deny intent to create legal relations proving so through the relevant legal channels...
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...between parties who intend to create legal relations. Without the use of formal contracts, differing levels of ambiguity can occur between parties in regards to issues surrounding what promises/offers exist between the parties and what could be the possible consequences in cases where one or more of the parties fail to fulfil the terms agreed between them. A level of ambiguity appears to have arisen in the example given in the case study regarding Woohoo Wholesale (WW) and Provident Solutions (PS). This Essay services to investigate whether or not all of the necessary elements for a legal contract to be valid were in place. Firstly, in order for a contract to be legally binding, there are six elements that must exist. * An offer: A promise to do or not to do something proposed involving clear terms and finality. An offer is nullified if the offeree makes a counteroffer to the offerer. * Acceptance of the offer: The offeree must display absolute acceptance of the offer through written/verbal agreement or in their conduct. Silence does not constitute acceptance. * Consideration: There must be an exchange between the parties, involving a promise for a promise or a promise for performance flowing from the offeree to the offerer and the promise/performance must hold value. * Intention to create legal relations: This presumption can be rebutted with the onus being on the party who wishes to deny intent to create legal relations proving so through the relevant legal channels...
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...customer relations and building customer loyalty range from simply opening up communications channels to implementing elaborate point systems that reward loyalty. Enhanced customer communications approaches include: Providing customer feedback forms • asking about customer needs in general when customers call with problems • Training call-center staff to handle disputes uniformly and constructively • responding directly to customer feedback • demonstrating how the company listens to its customers • encouraging a service culture throughout the organization. * Listening skills * Analytical and problem solving skills, team work. * Have to be able to communicate information to patients effectively. * Be able to effectively communicate leads to better understand of the patients and population. * a. Know how to determine issues better. * b. You need to know how to address, and handle issues better. Strategies Strategies for improving customer relations and building customer loyalty range from simply opening up communications channels to implementing elaborate point systems that reward loyalty. Enhanced customer communications approaches include: Providing customer feedback forms • asking about customer needs in general when customers call with problems • Training call-center staff to handle disputes uniformly and constructively • responding directly to customer feedback • demonstrating how the company listens to its customers • encouraging a service culture...
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...which must be in writing; > recognise the classes of persons who have limited contractual capacity and describe the effect that each has on simple contract; > outline the common law rules regarding contracts entered into by infants and which can be valid, voidable or void; > summarise statutory changes to the common law made in NSW and SA in relation to infants; and > outline the common law rules with regard to capacity to contract with respect to corporations and bankrupts, the mentally ill and those under the influence of alcohol. Graduate School of Business 4:2 Step 3: Consideration Consideration is something for something. Put another way, it is the price the promisee pays for the promise. For example, in the case of the purchase of a house, it is that house in exchange for the purchase price. Consideration makes the agreement in a commercial bargain. A person seeking to enforce a contract must have, in fact, provided consideration for the promise which they seek to enforce against the other party. Note, that an exchange of promises may be enough to constitute consideration, as may be a promise to do work or a promise to release a person from liability. Consideration involves the idea of exchange. In other words it is something given by a party...
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...Question: Ian is the finance director at Silver Sachs, a banking ………within a company. What is the likelihood of Ian keeping his job? The position of Ian as a director of the company is one of utmost importance. Directors are tasked with managing the company in such a way as to maximise the benefits to shareholders and other stakeholders, whilst ensuring that the company complies with all applicable laws and regulations. It is, therefore, a serious matter for the company if a director is underperforming or if he or she is at odds with the strategies which the majority of the company’s management have adopted. In such circumstances, there may be no option for the company other than to seek the removal of such a director from office. In many companies, the power to remove a director from office is granted to the board of directors or to a majority shareholder under the company’s Articles of Association. For these companies, removing a director will be a relatively straightforward matter, usually requiring the board or majority shareholder to simply serve written notice on the director in question. For companies which do not have these powers enshrined in their Articles, company law provides a statutory procedure to allow shareholders to remove a director by passing an ordinary resolution at a general meeting of the company. Statutory Procedure The procedure for removing Ian by ordinary resolution is set out in sections 168 and 169 of the Companies Act 2006. A shareholder...
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...JPMORGAN CHASE RADEGUNDA MOSHA BUSINESS LAW 1 PROF. AALIYAH MOHAMAD AUGUST 25, 2013. REFERENCE Constance E. Bagley. Seventh Edition. www.stimmel-laws.com/articles/torts.html www.cftc.gov Administrative agencies are agencies created by the legislative branch of government to administer laws pertaining to specific areas such as taxes, transportation and labor. The Securities Exchange Commission and the Commodities Future Trading Commission are independent agencies that are legally charged with regulating and providing guidelines for the trading and exchange of the goods, services within their respective jurisdictions. The security act of 1934 has fully empowered the Security exchange commission the power to discipline individuals and entities that are regulated in breach of industry rules and regulation. The Commodities Future Trading Commission on the other hand was created in 1974 to protect individuals, the public and industry players from manipulating, fraud and potentially abusive practices. The mission of Securities and Exchange Commissions is to protect investors, maintain fair, orderly and efficient markets and facilitate capital formation. Requiring public companies to disclose meaningful financial information to the public is an effective approach of the Security Exchange Commission takes in order to assure the security of...
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...consideration, both parties must promise to give or do something for the other. (Note: if a contract is made by deed, then consideration is not needed.) In other word, consideration can be described as the mutual rights and promises made by the parties to a contract. This can be either a promise to do something that a person not legally obligated to do, or a promise not to do something that a person have the right to do (often, this means a promise not to file a lawsuit). There are a lot of rules that must be taken in order to govern consideration. One of them is consideration can be present or future, but not past. Present consideration is executed when the consideration is performed at the time the contract is made. As an example, Lin offers RM100.00 reward for the return of her lost handbag, if Alex finds the bag and returns it, Lin's consideration is executed. Meanwhile, future consideration will happen when there is an exchange of promises to perform acts in the future. For example, Mei promises to deliver goods to John at a future date and John promises to pay on delivery. If Mei does not deliver them, this is a breach of contract and John can sue. However, past consideration is not a valid consideration and has no legal value. Past consideration arises when a promisee’s action has happened before the promisor made his promise. This can be proved in the Roscorla v. Thomas case. In this case, Roscorla purchased a horse from Thomas and demanded a promise from Thomas that the horse...
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...a contract to be valid it must have the following characteristics: 1. Offer and acceptance A contract is formed when an offer by one party is accepted by the other party. An offer must be distinguished from mere willingness to deal or negotiate. For example, X offers to make and sell to Y calendars featuring Australian paintings. Before any agreement is reached on size, quality, style or price, Y decides not to continue. At this stage, there is no legally binding contract between X and Y because there is no definite offer for Y to accept until the essential terms of the bargain have been decided. An offer need not be made to a specific person. It may be made to a person, a class of people, or to the whole world. An offer is a definite promise to be bound, provided the terms of the offer are accepted. This means that there must be acceptance of precisely what has been offered. For example, a used car dealer offers to sell B a Holden panel van for $1,000, without a roadworthy certificate. If B decides to buy the Holden panel van, but insists on a roadworthy certificate being provided, then B is not accepting the used car dealer's offer. Rather, B is making a counter offer. It is then up to the used car dealer to accept or reject the counter offer. A person can withdraw the offer that has been proposed before that offer is accepted. For withdrawal to be effective, the person who has proposed the offer must communicate to the other party that the offer has been withdrawn. To continue...
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...asked if we are suing the friend or colleague for breach of contract our answer would be an emphatic no. (Why would we give an emphatic no? What is the common sense reason for this?) Before going further into this scenario lets look at a different one. We make a booking at a hotel. We fail to turn up. The hotel having reserved a room for us has been unable to sell the room to anyone else. If the hotel were to sue us we would accept the fact because there is an intention to create legal relations.Why? Because it is a business relationship. In the same way if the hotel had sold our room we would consider legal action of our own. A legally binding contract needs offer, acceptance, intent to create legal relations and consideration. It is the presence of intent to create legal relations and of consideration that converts a social agreement into a legal agreement. Offer Characteristics of an offer Must be certain : Gunthing v Lynn 1831 Must be differentiated from an enquiry : Harvey v Facey 1893 Must be differentiated from an intent to trade: Pharmaceutical Society of Great Britain v Boots 1953 May be to world at large (sometimes termed a unilateral offer) : Carlill v Carbolic Smokeball Co. 1893 During the build up to an agreement there is often a period of negotiation which differentiates an offer from negotiations. e.g. Harvey v Facey and must be distinguished from an intent to trade : Fisher v Bell 1961 and Pharmaceutical Society of Great Britain v Boots Cash Chemists 1953...
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...that, “Every promise and every set of promises, forming the consideration for each others, is an agreement.” From that definition it is clearly stated ‘promise’ is an agreement. However in section 2(b) which defines the term “when the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. A proposal, when accepted, becomes a promise”. An agreement is the total combination of “Offer” and “Acceptance”. However in this case Mini gives a promise to pay TK20000 as a reward to whom who finds her each items of lost jewellery. An agreement to become a contract must be able to rise to a legal obligation, a duty enforceable by law. If an agreement is incapable of creating a duty enforceable by law it is not a contract. As all we know that “All contracts are agreement but all agreements are not contracts.” Section 2(h) according to the Indian Contract Act 1872, however provides some essential elements to create legal contracts between two parties. These ares- To make a contract the first and foremost things is that there must be legal offer and legal acceptance which are necessary to form a contract. It also should satisfy the requirements of contract act in relation thereto. There must be intention to both parties to create legal relation among each other. However in the given case Mini will pay TK 20000 to anybody for finding and returning the missing jewellery. Here reward money TK 20000 is making a legal relation to the both parties...
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...Chapter6(Formation of a Contract: Consideration and Intention ) before an agreement is binding in law it must also have 2 primary elements:1. Consideration, and 2. Mutual intention to create legal relations Bargain: Each party pays a price for the promise of the other Consideration: the price or value for which the promise of the other is bought. Promisor: promise to pay money, deliver goods or provide servicesValid consideration must be: Specific but not necessarily “adequate” Must have some value With reference to present/future promises Not past consideration Document Under Seal (Deed) A seal represented a serious promise (a covenant), used in ancient times when population was illiterate The use of a seal eliminates the requirement of consideration for a promise because the seal signified the act and deed of the convenantor The seal must be placed on the document at the time of signing (cannot just print “seal” on the document): “conscious and deliberate effort” (SCC) Business tender – offer under seal becomes irrevocable like an option CHAPTER9 (The Requirement of Writing) DISTINCTION BETWEEN SUBSTANCE AND FORM The Benefits of a Written Record The Form of a Contract A contract may be: terms entirely oral terms entirely written terms are a combination of oral and writtenLegislation Dealing with Writing 3 common types...
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...The law Overview of Australian contract law Formation A contract is a promise or a set of promises that is legally binding. In this context a promise is an undertaking by one person to do something or refrain from doing something if another person does something or refrains from doing something or makes a promise in return. A promise or set of promises will be legally binding if certain criteria are met. In Australia this requires that there be an agreement (comprising an offer and acceptance), consideration, intention to create legal relations, compliance with any legal formalities and that the parties have the legal capacity to contract. Agreement Consideration Intention Capacity Formalities Scope and Content A contract is generally only enforceable by and against parties to the contract. This section considers the issue of privity of contract. This section also considers the content of a contract; once formed, how do you determine what the terms of the contract are? How should the various terms by classified and how should they be interpreted in cases of ambiguity? Exclusion clauses are given special attention here. Privity of contract Terms Construction Classification Exclusion clauses Avoidance / Vitiating Factors A contract validly formed may nevertheless be avoided as a result of a number of possible 'vitiating factors'. Most of these involve some form of unfair or unconscionable dealing by one of the parties. Misleading...
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