Assignment 1 – M1 Analyse the impact of the requirements for a valid contract in a given situation Aled, aged 19, decided he wanted to set up in business. He was planning to buy and sell items both on the internet and by mail order. Aled agreed with his father, Brian, that they would convert a spare room in the family home into a ‘business centre’ with telephone lines, internet and fax facilities and a selection of office furniture and equipment. Aled then entered into the following agreements.
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Question 2 The general rule is that silence cannot amount to acceptance. The rationale behind this is based on the idea that acceptance must take some form of objective manifestation of the intention of the offeree (i.e. the party to which an offer has been made) to accept the terms of the contract. Such intention is usually best expressed though some form of positive action. This is so as to ensure that no one can enforce a contract upon an unwilling party. Case : Felthouse v. Bindley (1826)
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essential elements required in the formation of a valid contract and for each one define and explain the legal principles established by case law. Use supporting case law/statue to illustrate your answer. Answer: A Contract is possible when there will be trade between two parties named buyer and seller for the sales and purchase of goods. When acceptance takes effect, a contact will usually be binding on both parties. Rules of offer and acceptance are typically used to determine whether the parties
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All contracts are agreement but all agreement are not contracts Answer; A contract is a legally binding agreement or relationship that exists between two or more parties to do or abstain from performing certain acts. A contract can also be defined as a legally binding exchange of promises between two or more parties that the law will enforce. For a contract to be formed an offer made must backed acceptance of which there must be consideration. Both parties involved must intend to create legal relation
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there. For a binding contract to be formed, a definite offer must be followed by unequivocal acceptance . An offer is an expression of willingness to contract made with the intention that it shall become binding on the offeror as soon as it is accepted by the offeree. An invitation to treaty is where a party invites offers, which she is then free to accept or reject. In fisher v Bell Lord Parker CJ stated: ‘it is perfectly clear that according to the ordinary law of contract the display of an article
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20: The Formation of Sales and Lease Contracts - When we turn to contracts for the sale and lease of goods we move away from common law and into the area of statutory law. - UCC article 2: on sales, 2A: on leases - The goal of the UCC is to simplify and streamline commercial transactions, allowing parties to form contracts without observing the same degree of formality used in other types of contracts by making laws governing sales and lease contracts clearer, simpler and more readily applicable
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Essential Elements of Contract A contract is agreement enforceable by law. Every contract is an agreement but every agreement is not necessarily a contract. An agreement becomes contract only when it possesses certain essential elements. The presence of these features in the agreement gives it legal enforceability. 1. Valid offer Any agreement between two or more parties begins with an offer. An offer is made when one person signifies to another his willingness to do or abstain from doing something
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Problem 1: Under contract of sale dated April 30, 2013, the purchasers, Chris and Marie, agreed to purchase a two bedroom home unit from Simon, the vendor. Max was the conveyancer acting for the vendor. Completion date was June 15, with time the essence of the contract. Due to problems in obtaining finance, Chris and Marie phoned Max’s office on June 8, requesting a week’s extension of the completion date. Max was not available but the secretary said “I think that will be alright, but I’ll get
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1. Discuss the basic principles of contract law. What are the characteristics of a valid contract? How are contracts terminated? What are the legal consequences of terminating a contract? How is contract law, as an example of “private law regulation of business,” different in its operation from the public law regulation of business which we discussed for most of the semester? The law presiding over contracts is state law which is comprised of common law and judge-made rules. All the states except
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consists of mainly two parts: one is the formation of a contract and the other one is the operation of the contract. Thus in this paper I will discuss it in two individual parts. [PART I] ISSUE: Is the advertisement “mere puff”? Or is there a binding contract between Michael and Slimy Motors Pty. Ltd.or the manufacturer who authorized the advertisement? RULE: Five elements which must be established before a contract can be formed- offer, acceptance, agreement, consideration and intention; If a statement
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