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Business law assignment on Law of Contract (Case Solution)

Case solution for law of contract in business law and ethics.

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Contract Law: The Case Study Essay

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A contract is a mutual agreement of obligation between two people or parties reaching consent. In most cases, such commitments are enforced by the law. The arrangement involves one side making an offer, which the other party accepts. A contract consists of such elements as offer and acceptance, appropriate consideration, and legality (Eisenberg, 2018). The parties involved should also have the contractual capacity to commit to the pact. Applying the law in contracting means that there are consequences if any participant forfeits the rules pertaining to the engagement. Therefore, breach of contract necessitates legal measures for failing to honor the deal or hindering the execution of the promise by the other party. This negligence is a case of punitive damage for which the complainant requires compensation for money and time wastage.

The scenario presented involves two individuals, Johnny, who is not a merchant under the Uniform Commercial Code, and his neighbor Mark, from whom he offers to buy a car for $30,000. The latter requires some time to consider the offer to which Johnny agrees and puts down in writing that his proposition is going to remain open for fourteen days. After a week, Johnny sees another car that fascinates him, buys it and informs Mark of his intention to revoke the initial offer. In response, Mark insists that Johnny’s proposal was in writing and still holds it. Johnny apologizes, saying he cannot keep the agreement but promises to give mark $10,000 for the assistance that he had received from him in the previous year around the house. Appeased, Mark accepts only for Johnny to annul his second pledge after a week. The former decides to sue Johnny for breach of contract on the two commitments, buying the car and the $10,000 offer.

There was a valid contract between the two, but Johnny dissipated both Marks’s time and money. He Hastily offers to buy the car instead of informing him that he hasn’t made a final decision and needs to check more cars before settling on one. Johnny also made the mistake of writing down his promise to Mark. Purchasing a car requires a lot of research and inquiries instead of choosing the first option due to the availability of more varieties that might even be cheaper in the market. After being approached by Mark, Johnny should have told him that he had not made a final decision because he still wanted to look around; therefore, he was unwilling to commit. The promising note written by Johnny caused the car to be withheld from other customers willing to purchase it. Mark, the car owner, had the opportunity to sell the machine, but he had the integrity to hold it. Johnny’s actions concerning the car are wrong, and he deserves to pay for them.

There is evidence of an oral contract between Mark and Johnny, although it is related to the first agreement, which Johnny also broke. He acknowledges Mark’s help on his property and offers to compensate him, making the latter cancel his initial disappointment on the car contract. This agreement makes Johnny legally liable to atone for all the words he fails to honor.

Breach of a contract is concluded when a party involved fails to perform their role and doesn’t give a valid excuse. In this view, the elements of a contract are not fully satisfied; therefore, Mark has an entitlement to take legal action against Johnny (Luntz et al., 2017). Having kept his part of the agreement, Mark deserves compensation for indemnity.

Eisenberg, M. A. (2018). The Theory of Efficient Breach. In Foundational principles of contract law . Oxford University Press.

Luntz, H., Hambly, D., Burns, K., Dietrich, J., Foster, N., Harder, S., & Grant, G. (2017). Torts: Cases and commentary ( 8 th ed.). LexisNexis Butterworths.

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IvyPanda. (2022, October 13). Contract Law: The Case Study. https://ivypanda.com/essays/contract-law-the-case-study/

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Business Law Assignment: Everything You Need to Know

A business law assignment is generally a legal case study about a dispute which law students are given to resolve through a legal means. 4 min read

A business law assignment is generally a legal case study about a dispute which law students are given to resolve through a legal means.

Business Law

Business law disputes arise between two parties over matters such as a sale, contract, merger, and others.

What Is an Example of a Business Case?

Tiffany got a mailer from Glam Girl Hair Salon. The salon's adverts claimed people could get manicures and any hairstyle of their choice for $15. A surprised Tiffany couldn't resist such a mouthwatering opportunity. She believed the salon was trying to woo new customers with the giveaway price. On getting to the salon, the manager informed Tiffany that there was a typo in the message she received and that the actual price was $100.

It's still a great price, said the manager as it costs about $200 for such service under normal circumstances. An exasperated Tiffany flared up in anger because of the fuel she used to get herself to the salon. Advise Tiffany as a lawyer. What advice would you give her if she was only informed of the real price after getting her hair styled and the manicure?

What Is the Solution to the Sample Business Case?

When a seller advertises his or her products inviting the public to buy, such information is referred to as an "invitation to treat" under contract law. If a buyer offers to buy the product and the seller agrees to sell, an enforceable agreement can be established. In Tiffany's case, she can't claim any travel expense because she only responded to an advert, which in this case is an "invitation to treat". If she had used the service without knowing the actual price, she would be forced to pay $100 and thus be able to establish an enforceable contract .

What Is the Purpose of a Business Law Assignment Report?

The purpose of the business law assignment report is to provide foreign clients with the fundamentals of English law. The report is divided into two parts. The first part details the various sources of English law as well as specific laws which apply to every type of organization.

The second part explains the role of government in legislation and common laws used in the court of justice. The role of government assesses the superiority of the parliament, bill formation, passage of laws, and royal assent. Also, the common law and its application in court use case law and the doctrine of precedent as its legal structure. The report also includes statutory law and its application in legal processes and related legislation.

What Is the Purpose of Law?

The fundamental concept of law holds that laws are formed to maintain basic societal structure through specific behaviors. Violating these behaviors may lead to sanctions on the violator. The court of law or justice is responsible for identifying and measuring rules violations.

What Does the English Law Deal with?

The English law system deals with the following:

• Legislation

What Is the Jurisdiction of the English Law?

The jurisdiction of English law is restricted to England and Wales. England and Wales's legal structure has primary and secondary legislative divisions.

What Is the Primary Legislation of The English Law?

The primary legislation of English law refers to laws created by the delegates of the English Parliament. These laws are similar to legislation created in the Scottish parliament or Ireland's assembly. Also, parliamentary delegates are empowered to create secondary legislation.

What Does Primary Legislation Include?

The primary legislation includes the following:

• Public Act: Acts are passed in parliament after royal assent. Acts can either be old or modern. Examples of acts include the Housing Act 1963 and the Transport Act 2000.
• Local and Personal Act: Local acts cover organizational benefits and corporate restrictions while personal acts cover divorce, grants of citizenship, name and title changes and others.
• Church of England and Church Assembly Measures: The 1919 Power Act (UK) gives the Church of England parliamentary powers. It also includes the Clergy Measure Act and Beneficiary Act.
• Privy Council : These form part of the royal limits. These laws are modified by parliament. They cover the appointments of the prime minister, civil services, overseas limitations under the provisions of the Civil Contingency Act, Government of Wales Act 2006, and the Statutory Instrument Act.

What Is the Secondary Legislation of The English Law?

Secondary legislation are laws created by delegates of primary legislative authority. They include national laws such as the Ireland Act of 1973, National Assembly of Wales Act, Warranty and Regulation Acts and so on.

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Contract Law Assignment : Analyzing Case Study Using Ilac Method

On September 5 Robert wrote to Cameron offering to sell 50 metric tons of wheat at $250 per metric tonne. On September 7 Cameron posted a reply in which he accepted Robert’s offer but added that if he did not hear to the contrary he would assume that the price included delivery to his (Cameron’s) warehouse. The following morning, before Cameron’s letter arrived at Robert’s office, Robert read a posting on the internet which stated that the price of wheat was about to fall and he immediately sent an email to Cameron stating ‘our price of $250 includes delivery’.

On receiving Robert’s email at 10am on September 8, Cameron posted a letter to Robert confirming his acceptance of Robert’s terms. By mid-day, however, Cameron also saw the posting on the internet which indicated that wheat prices were about to fall and, having considered the matter, sent an email to Robert stating ‘I do not accept your offer of wheat’.

The price of wheat fell to $230 per metric tonne and Cameron refuses to accept any wheat from Robert. Question 1: Advise Robert regarding the above.

Issue: Can Robert obligate to Cameron to comply with the contract. Is there exists a contract amid the two?

Relevant Law: As contract law assignment contract is the formation of an offer combined with acceptance which is supported by consideration by the capable parties who have a legally binding legal intention. (Latimer, 2012)

When the offeror conveys his intention of any act/omission to the offeree with the expectation that such communication would be confirmed by an offeree then it is an offer in law (Smith v Hughes [1871]. An offer can be made by words, in written form or by conduct (Carlill v. Carbolic Smoke Ball Co (1891) but as per Felthouse v Bindley (1862) the offeree must be in the knowledge of the same in order to consider the offer valid and enforceable in law.

Whenever an offer is made as described in this assignment in contract law, then, the offeree when gave his approval to the offer terms results in an acceptance and is held in Empirall Holdings v Machon (1988). As per Stevenson Jaques& Co v McLean (1880) an acceptance should coincide with the offer terms otherwise such an acceptance is invalid and is considered as counter offer.

Further, when an acceptance is made then as per Brambles Holdings Ltd v Bathurst City Council (2001) an acceptance should reach the knowledge of the offeror in order to be enforceable. Non transmission of acceptance is not a valid acceptance and is held in Latec Finance Ltd v Knight (1969).. (Bailey, 2014)

Further, if acceptance is made through letters then the acceptance is complete when the letter is posted and is held in Adams v Lindsell (1818).

Applicable Law: As per the facts,

On 5th September, Robert had written a letter to Cameron wherein he offered to sell 50 metric tonnes of wheat @ $250 per metric tonne.

As per Felthouse v Bindley an offer when made must reach the mind of the offeree and he must be aware of the terms of the offer in order to consider any offer to be enforceable in law. Since the offer made by Robert is in the knowledge of Cameron, thus, the offer is valid.

Now, on 7th September, a reply is posted by Cameron wherein an acceptance is furnished but a term is included specifying that if nothing is heard from Robert then it will be assumed that the price of the offer is inclusive of delivery to his warehouse.

Generally, as per Adams v Lindsell as discussed in this assignment in contract law when an acceptance is made by post then it is binding immediately. But, the rule does not apply hear as the acceptance made by Cameron is not valid as a new term is incorporated by Cameron. Thus, as per Stevenson Jaques& Co v McLean a counter offer is made by Cameron to Robert on 7th September.

Now, the new offer exists which is made by Cameron to Robert on 7th September.

Cameron is the new offeror and Robert is the new offeree. The letter must reach Robert in order to consider the same as binding and enforceable.

Now, before the letter reaches Robert, Robert read a post according to which the prices of the wheat will decline. Considering the same an email is sent by Robert to Cameron wherein he submitted that the prices of the wheat are inclusive of delivery.

Now, this statement that is made by Robert to Cameron is not considered as an acceptance in law as an acceptance can only be made when the offeree is aware of the terms of the offer. An acceptance without being aware of the offer terms is not an acceptance in law and is held in Empirall Holdings v Machon. Thus, the email sent by Robert has no relevance in law.

The position is still the same, that is, Robert must send his acceptance to the counter offer made by Cameron.

The email that was sent by Robert was received by Cameron on 8th September at 10AM. Cameron then sends a letter to Robert wherein he accepts the offer that is initially made by Robert.

If Cameron would have accepted the offer initially without adding any new term, that is, the price must be inclusive of delivery, then, by applying the rule of Empirall Holdings v Machon the acceptance would have been valid.

But, now, the acceptance that is made by Cameron is against such an offer which no longer exist as the original offer that is made by Robert already ceases to exists because of the counter offer that is made by Cameron on 7th September. Cameron is the new offeror and he himself cannot accept his own offer, rather, it is Robert who must accept the offer.

Later Cameron also saw the news with respect to the fall in the price and again sent an email wherein he submits that he is not willing to accept the offer of the wheat which was initially sent by Robert on 5th September. It is stated that there is no relevance that is attributed to the mail that is sent by Cameron now, as the mail is sent against that offer which already ceases to exist by Cameron himself by making a counter offer.

Thus, the revocation of offer by Cameron has no validly.

It is submitted that the only offer that now prevails is the counter offer that is made by Cameron on 7th September. This, counter offer was never accepted by Robert giving rise to a legally binding agreement.

Conclusion It is thus concluded in this contract law assignment that there is no contract that is established amid Robert and Cameron. The offer of Robert was rejected by the counter offer of Cameron. The new counter offer was never confirmed by Robert in order to establish a binding relationship amid the parties as discussed in this assignment in contract law. Contract law assignments are being prepared by our law homework help experts from top universities which let us to provide you a reliable assignment help online service.

Reference List Bailey, J. (2014) Construction Law. CRC Press.

Latimer, P. (2012) Australian Business Law 2012. CCH Australia Limited.

Adams v Lindsell (1818) 1 B & Ald 681.

Brambles Holdings Ltd v Bathurst City Council (2001) 53 NSWLR 153.

Carlill v Carbolic Smoke Ball Co. Carlill v Carbolic Smoke Ball Company [1892] EWCA Civ 1.

Empirnall Holdings Pty Ltd v Machon Paull Partners Pty Ltd (1988) 14 NSWLR 523.

Felthouse v Bindley (1862) EWHC CP J 35.

Latec Finance Ltd v Knight (1969) 2 N.S.W.R. 79, N.S.W

Smith v Hughes [1871] LR 6 QB 597.

Stevenson, Jaques, & Co v McLean [1880] 5 QBD 346.

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Contract Law Assignment

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