...Law Of Contract Definition and Nature A Contract is an agreement between two parties that creates an obligation to perform (or not perform) a particular duty. According to Section 2(h) of the Indian Contact Act of 1872, A Contract is - “An Agreement enforceable by law” In other words, A contract is a binding legal agreement. Thus we can say: Agreement + Enforceability by law = Contract Formation of Contract PROPOSAL/OFFER [SECTION 2(a)]: A person is said to make a proposal when “he signifies to another his willingness to do or to abstain from doing anything with a view to obtaining assent (Agree) of that other to such act or abstinence” Example: 1. Rima offers to sell her Law books to Rony . Here, Rima is offering or giving a proposal to Rony. If Rony accepts a Contact is formed. Proposal & Promise Section 2(b) of the Contract Act 1872 states that, “A proposal (Offer) when accepted becomes a promise” The person making the proposal is called the “promisor” (Offeror), and the person accepting the proposal is called the “promisee” (Offeree). [section 2(c)]. When, at the desire of the promisor, the promisee or any other person has done or abstained from doing, or does or abstains from doing, or promises to do or to abstain from doing something, such act or abstinence or promise is called a consideration for the promise. [section 2(d)]. Consideration is an important element of a Contact Agreement Thus...
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...13 MBA 16 – Business Law & Practice Module 01 - Law of Contract Coverage of: • Law of Contract: Definition, Essentials • Types of Contracts • Offer – Definition & Essentials • Acceptance - Definition & Essentials • Consideration – Definition & Essentials, Exceptions • Capacity of Parties • Free Consent • Quasi Contract • Legality of Object • Performance of Contract – Termination of Contract – Remedies for Breach of Contract Case Studies 1 The Indian Contract Act, 1872 The Indian Contract Act consists of the following two parts: General principals of the Law of Contracts – covered under section 1 to 75; the principles apply to all kinds of contracts irrespective of their nature Special kinds of contracts – covered under section 124 to 138 ; These special contracts are Indemnity & Guarantee (u/s124 to 147), Bailment & Pledge (u/s148 to 181) and Agency (u/s 182 to 238) in Chapter X – refer next Module 2) Section 76 to 123 – repealed by Sale of Goods Act, 1930 (refer Module 4) • • Section 239 to 266 – Chapter XI has been repealed by the Indian Partnership Act , 1932 ( not being covered separately; but major issues under different modules) The act does not affect any usage or custom of trade (u/s 1) – these prevail if reasonable & not illegal; an unique feature of this Act – most important branch of business law Some of the contracts not dealt with by the this Act are those related to Partnership, Sale of Goods (refer module 4), Negotiable...
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...Contract Law Name: Institution: Question 2 In instigating a legal redress against the company, Patrick would argue that the company owed him a legal duty to care a reasonable man would consider under the circumstances (Schwartz, Alan, and Robert 542). Patrick would argue that by the company failing to exercise this reasonable duty to care, he suffered actual damages (Schwartz, Alan, and Robert 546). Patrick can sue the company for negligent and claim for damages upon approving that the company had a duty to him and to the general public to care, and that had they cared enough, the placard could have been fixed well and the accident would have not occurred (Scott and Robert 1645). The court, in making their judgment would consider whether the damages Patrick suffered were reasonably foreseeable at the time of the alleged negligent act (Scott and Robert 1646). Patrick is more likely to win the negligent case. In case of the stolen car, Patrick had no agreement that is legally enforceable with the company permitting him to park the car at the company premises (Markovits and Daniel 1418). The company would urge that they, therefore, do not owe Patrick any duty to care for the lost property as they had forewarned him in the placard that any damage or loss of property in the company’s property would be his sole responsibility (Markovits and Daniel 1418). Question 3 Michael and Gordon enterers into an agreement that is legally enforceable (contract)...
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...Contract [Name of the Writer] [Name of the Institution] Contracts Introduction A contract is a legal agreement between two parties. For a contract to be valid, it must meet all prerequisites of the law, should bind the involved parties, and should be implementable in a legal court. Legal Competency: This means that the contract must be legally recognizable, i.e. both the parties entering into the agreement must have reached legal age (Miller, 2010). 1. Mutual Agreement: Also known as mutual consent, this means that both the parties entering the contract must be willing (and able). 2. Consideration: This refers to the payoff of the contract for both the parties involved. It can be monetary (valuable consideration) or in the form of physical items (goods consideration). 3. Stated Contract: The contract should be written in clear terms, in order to be clearly understood by both the parties (Beale et al 2010). Therefore, in light of the above framed notions, the case of Don Willetts will be deciphered. Moreover, this paper will address 2 questions in order to meet the pretext of the paper. Q1: What should you do about continuing to do business with Don? Answer: In the context of this case, the business with the Don should be stopped right away. As he took advantage of the 17 year old boy and made him sign the contract. Although the 17 year old should have told about the contract. The business with the Don should be stopped on the basis of ill intention...
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...|Coursework Header Sheet |[pic] | |186606-24 | | |[pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] | | |Course |LAW1091: Business & Co Law |Course School/Level |BU/UG | |Coursework |Business and company Law |Assessment Weight |100.00% | |Tutor |MF Ottley |Submission Deadline |01/12/2011 | [pic] |Coursework is receipted on the understanding that it is the student's own work and that it has not, in whole or part, been presented | |elsewhere for assessment. Where material has been used from other sources it has been properly acknowledged in accordance with the | |University's Regulations regarding Cheating and Plagiarism. | [pic] 000613042 [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] Han Tun |Tutor's comments ...
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...According to law for a contract to be sufficient but need not be adequate. There are four major elements which is very important in contract laws. First element is offer, whereby there must be an offer offered by the offeror or by offeree to each other which is accepted by the parties and which consequently creates a binding contract; offer is also an expression of willingness to contract done with an intention of creating a binding contract in as soon as the offer is accepted. The nature of offer differs if it’s an invitation for treat or a unilateral contract. However, in Rahman’s case it is an invitation to treat rather than normal offer and acceptance. The chair was exhibited in antique exhibition and it is very much expected to get many offers for that chair as it’s an invitation for offers. The second principal acceptance, whereby acceptance occurs when an offeree agrees to be mutually bound to the contracts conditions by giving considerations or something in value to close the deal. When a valid acceptance takes place a binding contract is created. Referring to this case, Rahman did offer a deposit of Rm500.00 to Kenny Yu but the offer was refused by Kenny, whereby at this point of time there was no binding contract between Rahman and Kenny Yu. The third principle is consideration and it is one of the most important principles among the four major elements. Consideration must be sufficient but no adequate; consideration must involve some kind of value in order to meet...
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...Mutual Mistakes in Contract Law Caryn Williams Southern New Hampshire Business Law MBA--610-X4247 Geri Drelling July 13, 2014 Mutual Mistakes in Contract Law From a personal perspective, this situation is somewhat close to home. I worked as car sales professional for a year and learned many things about the process. In my opinion, Mr. Hartly should have done a bit more research about the models available. In my experience, the consumers I dealt with were more knowledgeable about the products being purchased. In many cases, the consumers would know more about the cars than I would. The internet provided the specifications about the engine and the proper pricing of the vehicle. However, when the consumer was negotiating the pricing and telling the salesperson what he wanted then the specific engine issue should have been addressed right away. As a matter of fact, the specifications of the vehicle are part of the sales presentation and should be given to consumer in the initial discussion. With my knowledge of car contracts, the sales contract is not able to be rescinded due to lack of information. The specifications of the car are on the sticker placed in the window and the information is fully disclose and displayed for the consumer. Contractual capacity is the ability to understand that a contact is being made and to understand its general meaning (Twomey ,2013). However, the fact that a person does not understand the full legal meaning of a contract does not mean that...
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...INTRODUCTION TO THE LAW OF CONTRACT DEFINITION A contract may be defined as a legally binding agreement or, in the words of Sir Frederick Pollock: “A promise or set of promises which the law will enforce”. The agreement will create rights and obligations that may be enforced in the courts. The normal method of enforcement is an action for damages for breach of contract, though in some cases the court may order performance by the party in default. CLASSIFICATION Contracts may be divided into two broad classes: 1. Contracts by deed A deed is a formal legal document signed, witnessed and delivered to effect a conveyance or transfer of property or to create a legal obligation or contract. 2. Simple contracts Contracts which are not deeds are known as simple contracts. They are informal contracts and may be made in any way – in writing, orally or they may be implied from conduct. Another way of classifying contracts is according to whether they are “bilateral” or “unilateral”. 1. Bilateral contracts A bilateral contract is one where a promise by one party is exchanged for a promise by the other. The exchange of promises is enough to render them both enforceable. Thus in a contract for the sale of goods, the buyer promises to pay the price and the seller promises to deliver the goods. 2. Unilateral contracts A unilateral contract is one where one party promises to do something in return for an act of the other party, as opposed to a promise, eg, where...
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...According to Section 2(b) Contracts Act, 1950, ‘contract’ can be defined as ‘an agreement enforceable by law. It can be understand that a contract is an agreement which is legally binding between parties. There are 5 basic elements constituting a contract such as offer, acceptance of the offer, intention to create legal relations, consideration, certainty and capacity. Abu who operates small business manufacturing engine oil filters. He placed an advertisement in a car trade magazine stating that he would supply a filters at RM35.00 per unit, but he will consider reduction the price for large orders. Then a week later he received a letter from Brothers to asking about the quotation to supply 1000 units of oil filter. Under the law of contract, when Abu do the advertisement in the news paper is consider as an invitation to treat. The case of Grager & Sons v William Lane Gough (Suveyor Taxes) [1896] it was held that the price list was an attempt to induce offers from recipients, not an offers itself. A week later Abu received the quotation from Brothers Sdn Bhd asking about the quotations, and he replied, offering to supply the filers at a cost of RM28.00 each is the preminary negotiations where not will be taken as a proper offer that can be bring into the contract. An offer must be distinguished between the party. The case of Harvey v Facey [1893], the court held that there was no contract been made as the offer was never accepted. The telegram was not an offer merely...
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...Subject: Contract Law Section 1 (1) D (2) C (3) D (4) A (5) D (6) C (7) A (8) E (9) A (10) D (11) E (12) A (13) D (14) B (15) E Section 2 A | 5 | B | 8 | C | 7 | D | 9 | E | 2 | F | 10 | G | 6 | H | 1 | I | 3 | J | 4 | Section 3 Question 1 (1) Repudiation or anticipatory breach – An anticipatory breach of contract occurs when one of the parties unlawfully and unequivocally refuses to render performance of the contract. Basically repudiation is when either party owns performance of the contract and refuses to render it, not because he is entitled to do so. The repudiation can either be accepted or refused by the innocent party. Take note that if the innocent party does so ignore the repudiation, the legal position of both parties will remain unchanged. The innocent party must abide by his choice once it has been made. He will also lose the right to rescind if he refused to accept the repudiation or if the repudiation hasn’t been accepted within a reasonable time. To constitute an actual breach of contract the repudiation must be accepted and notice should be issued to the debtor, by the innocent party and will then amount to a rescission of the contract. The creditor may sue for the contracts rescission and damages if the contracts performance isn’t due yet. (2) Default of the debtor (mora debitoris) Mora debitoris – this is a form of breach of contract that takes...
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...DIPLOMA/CERTIFICATE IN BUSINESS AND MANAGEMENT Module: Law for Business The assignment covers the following learning outcomes: Outcome 1: Discuss the principles of law relating to the formation and discharge of commercial and consumer contracts * Identify the requirements for a valid contract * Explain the difference between an offer and an invitation to treat Outcome 2: Explain the significance of specialist terms contained in a specimen contract * Assess the validity of contractual clauses contained in a specimen contract * Identify the key Statutory provision for the use of exclusion clauses Outcome 3: * Identify the source and content of key Statutory provisions relating to consumer protection * Assess the effectiveness of specific provisions in relevant Acts * Apply relevant Legislation to the case study, and present findings 1. To: Devindra Subject: Contract Information CC: None Greetings, I’m writing to advise you regarding any legaly bindiing contract made from the advertisemnt of the caravan. A Contract is a transaction which two or more people voluntarily enter together for the transfer of wealth, assets or services. It can be written or it can be oral. Furthermore for a contract to be valid there must be an offer for the proposed item. There are two types of offers, a firm offer which is the indication that someone is seriously prepared to contract to someone such as the case of ‘CARLILL v CARBOLIC...
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...contract is the agreement entered into by two or more persons with the intention of creating a legal obligation or obligations. The validity of the contract of this nature can be ascertained by looking around the terms of the contract and the extent to which they are binding on the individual parties, the actual interpretation of the nature of the contract, whether it was a contract of sale or of exchange and the relative interpretations of similar cases in relent cases, law journals and statutes. From a general point of perspective, the contract can be regarded as valid since the agreement was verbally made and confirmed by the writing down of the general terms sealed by signatures of the seller and the buyer as was in the case between Dold and Bester, in which their contract was reduced by writing down the terms of the contract on a piece of scrap paper. The law states that no alienation of land after the commencement of this section shall, subject to the provisions of section 28, be of any force or effect unless it is contained in a deed of alienation signed by the parties thereto or by their agents acting on their written authority. In the case of David and Zindzi, the validity of the contract can be enforced since the seller (David) had clearly demonstrated his intent of selling his house by signing it down on the serviette and the buyer (Zindzi) also clearly demonstrated his willingness to acquire the property on offer. The terms of the contract agreed on the serviette...
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...Contents Question 1 | Pages | Contact Documents | 1 | Execution of the Contract | 1 | Requirement of Writing | 1 | Domestic Building Contracts | 2 | Variations | 2 | Question 2 | | How a Court Interprets Ambiguities and Inconsistencies | 2 & 3 | Definitions of Key Words | 3 | Order of Precedence | 3 | The Parol Evidence Rule | 3 | “Maxims” of Construction | 3 & 4 | Relevant Clauses | 4 | Rectification of Contracts | 4 | Criteria for Rectification | 4 | Question 3 | | Void for uncertainty | 5 | lump sum payment | 5 & 6 | Fixed date for completion | 6 | Stipulating a liquated damages amount | 6 | The prevention doctrine | 6 | Entitlements to an extension of time | 6 | | | References | 7 | Question 1 An abundance of documents may or may not form part of the building contract. How can a builder protect itself from any argument of what documents constitute the contract? If it’s not made clear during the contract formation stage which documents will form the building contract, disputes regarding what documents constitute the contract are likely to occur. To avoid this, the following precautions should be adopted by the builder. Before evaluating the documentation, the formation of the agreement must be assessed to ensure all essential elements are included, to make the contract legally binding. These elements consist of an intention to create a legal obligation, an offer and...
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...orally placed an order for fabrics with another company based in New York State called Yarner, Inc.. Terra, Inc. then sent a purchase order for the materials to Yarner, Inc. and the order had no terms as to how disputes regarding the contract would be handled. Yarner sent back an acknowledgment of the order and provided a clause stating that all disputes must be submitted to arbitration. Terra kept the acknowledgment and didn’t object to the arbitration clause. ISSUE: The first issue is wether, under New York law, the acknowldgement that contains an additional term is binding. The second issue is wether, under New York law, the contract was altered materially making the contract unenforceable. RULES: U.C.C. § 2-207 . Additional Terms in Acceptance or Confirmation. (1) A definite and seasonable expression of acceptance or a written confirmation which is sent within a reasonable time operates as an acceptance even though it states terms additional to or different from those offered or agreed upon, unless acceptance is expressly made conditional on assent to the additional or different terms. (2) The additional terms are to be construed as proposals for addition to the contract. Between merchants such terms become part of the contract unless: (a) the offer expressly limits acceptance to the terms of the offer; (b) they materially alter it; or (c) notification of objection to them has already been given or is given within a reasonable time after notice of them is...
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...There are a number of laws which are enforced when it comes to the regulating sales promotion. There are different acts which ensures the promotion of sales is equal and business follow. Sales promotion the regulatory framework Introduction The introduction should be designed to attract the reader's attention and give her an idea of the essay's focus. Main Body Express and Implied Terms 1. Define express terms and implied terms Key Cases: Ashmore v Lloyds, Spring v National Amalgamated SS & Dockers, Hutton v Warren, Spurling v Bradshaw & Schweppe v Harper 2. Terms implied by Statute: Sale of Goods Act, Supply of Goods Act 3. Terms implied by Common Law: Liverpool CC v Irwin & Scally v Southern Health Board 4. Distinguish between Conditions and Warranties Key Cases: Bettini v Gye & Poussard v Spiers & Pond Exclusion and Limitation Clauses 5. Define an exclusion clause Key Cases: Thompson v LMS (contractual documents), L’Estrange v Graucob (signed contracts), Spurling v Bradshaw (unsigned contracts and notices) 6. Fundamental Breach: Unfair Contracts Terms Act Key Cases: Karles v Wallis & Photo Production v Securicor 7. Statutory Restrictions: SEE STUDENT HANDBOOK PP. 46 – 48 Key Cases: R & B Customs Brokers v UDT, Smith v Eric Bush & St Alban’s DC v ICL Conclusion The conclusion brings closure to the reader, summing up your points or providing a final perspective on your topic. All the conclusion needs is three or four strong sentences, which...
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