The Rule of Law - Case Study Example

Student Name: Tutor: Course: Institution Date: Question One Discuss whether the parties have reached an agreement that can create an existing contract. In reference to Riley pg 1 the two parties in this case did not reach up to a mutual agreement legally they are deemed to have not entered into any type of contract1. For a contract to exist there has to be a mutual agreement in relation to the contractual term and contractual object in place with the main intention of creating a legally binding contract according to Stone pg 532. Is Chad is obliged to pay the correct amount of $4,500 ($2,250 AUD per adult) for two adult Hockey Packages? Yes. Chad is obliged pay the total amount of 2,250 AUD per adult. The main reason is that the company made efforts to notify him of the typing error that had occurred to their advertisement. In reference to Stone pg 612 therefore, he was aware of the intended changes that company had in mind at the time the contract was enforced. Case study The legal issue The legal fracas that this advert provides is the issue of a contract, an offer, and an invitation to treat and the breach of contractual obligations Riley pg 1 notes. In reference to O'Sullivan, Hilliard pg 166 a contract is an agreement between two parties that is legally enforceable in which Chad and the company entered into a collateral contract3. The termination of a contract ends an agreement in this scenario. A contractual breach is the incomplete or complete performance of contractual obligations that renders a contract terminated with immediate effect. In this instance then the company and Chad entered into collateral contact. This is a result of the two parties making promises that liable to be the terms of the contact. Moreover, a contact must meet all the contractual elements. According to Collins pg 167 the mode of communication and formalities are key in the communication of a contract4. The rule of law The rule of law states that the breach of a contract can occur in so many ways. A breach occurs when an obligation has mishandled or incompletely performed. The rule of law in contract law is the same rule that can be applicable in the any business agreement that caters for commercial practices. A contact in many is valid is the offere accepts the offer at hand. In reference to Collins pg 165 Felthouse v/s Bindley and Gibson v/s Manchester City Council acceptance of the offer must be communicated to the offeror in good time. The rule of law states that there are remedies that are only applicable when there is a breach committed by either of the parties. Where a contact goes sour, the parties offended can seek for remedies like monetary compensations, restitution, damages, injunction among other remedies. The parties to a contract must carry out the contractual capacity. In reference to Kodilinye and Kodilinye pg 99 a contact can never be enforced between minors, and insane person and a drunkard. However, there are exemptions that are put to accommodate such aspects in case they arise in a contract enforceable between a minor and a major. Both the insane person and the drunkard person are guarded by the lucid moment of the individual at the time of the contact initiation5. A Contract is only limited to the parties of the contact. According to McKendrick pg 952 this is what is termed as the privity of a contact6. The aspect comes into consideration in this case where there are two parties but a third party is also involved in the expansion of the contact. Therefore, Chad’s friend is not liable to sue the company in case Chad is not capable of suing them. This law entitles that only the parties to the contact can sue or be sued. The stipulation as to the time of delivery and the time of payments is a key factor in a contact. However, in such a case where the time is not states the offerer and the offer must act in reasonable time in acceptance and any other type of response expected. A contact must have the aspect illegality. The contact in this case should be able to carry out the subject matter that is legally enforceable in the laws of the country. According to Gillies pg 147 and 148 when a contact related to any illegal matter exist then no legal action can be assigned and it is deemed to be a void contract. The parties in such a case are held criminally liable for engaging in unlawful acts and making contractual terms altogether7. The application of the rules of law to the facts Chad immediately responded via email to Game Travel Pty Ltd he made an order for the tickets advertised however, he had his conditions which created terms of a contract. He would buy the tickets for adult Hockey Packages, as long as Games Travel Pty Ltd guarantees him tickets to the Women’s Hockey medal matches instead this created the consideration of the contact. There was a typing error in the advert which, was later corrected in relation to the price advertised for the commonwealth games in the internet that brought up a key condition to the contractual terms. The price changed from 1250 AUD to 2250 AUD for the adult tickets. In reference to Walker pg 22 Games Travel Pty Ltd guaranteed Chad tickets to the Women’s Hockey medal matches according to his plea in their email response to which they did not fulfill and were thereby liable. Chad agreed to the guaranteed terms the company promised to guarantee Chad the request he had this initiated acceptance from both parties of the contact8. Chad provided his credit card details with the authority to pay for the two adult tickets at 1250 AUD that, had been canceled in this regard Chad created a counter offer that could terminate the whole contract if the company deems it fit. The company representative was responsible to communicate to their clients in a reasonable manner and offer outstanding solution to the matter at hand. If Chad is not pleased with the services that they offered, he can sue them for compensation of the damages that he lost. The company can be liable for not meeting their contractual terms and obligations that they were aware. According to Kodilinye and Kodilinye pg 12 and 13 Chad can plead a termination of the offer when he made a counter offer that was not addressed to the by the company. The counter offer automatically terminates an offer previously placed. According to Walker 27 and 35 the company they neglected and did not owner their part of agreement of the collateral contract that they had with their client In addition, the company was a potential offeror while and Chad became a potential offerre to the agreement. A fully liable contract must have the element of a consent, legal relationship, consideration, offer, acceptance, subject matter, and undue influence. Honor in a contract is a key and essential part of a contact in relation to performance of contractual duties. The parties to a contact can also practice the honor clause that allows them to perform their duties in honor and respect of the contact. Although the third party may be the one who is highly affected by the termination or breach of the contact still he is not liable to sue unless there is the relations of trusty or sponsor. Question Two Assume that there is an enforceable contract between Games Travel Pty Ltd and Chad and determine the express terms of the contract. The terms of the contract are that the main statements that bind the two parties together in creation of legal contractual obligations in a contract. Terms are the main body of the contract. In this case, the terms that exist are as follows. The company agreed to offer packages to Chad at 2,250 AUD per an adult ticket after realizing that the prices they put were incorrect. The company was to offer two adults hockey packages that had guarantee tickets for the Women’s Hockey Medal Matches. Chad was liable to pay the correct amount of fee charged for the tickets. The company was entitled to deliver the ordered tickets in their correct form of number and package within a reasonable time. The legal issue According to O'Sullivan, Hilliard pg 362 Arcos Ltd v/s EA Ronaasen & Son (1933) the definition and application of a conditions and warranties in an agreement is a key issue that determines how to handle a contract and how it ends. The other legal issue raised is the elements that comprise of a contract. On the other hand, terms are the key elements in a contract that both parties make in a mutual settlement before they enter into a contract. In reference to Kodilinye and Kodilinye pg 102 in a collateral contract express terms of a contract are the determinate factors that create legal obligation upon each party. Warrants are the less important terms in a contract while conditions are the major terms that bind the two parties together. According to Gillies pg 106 Tramways Advertising Pty Ltd v/s Luna Park (NSW) Ltd 1938 conditions and warrants differ in many ways. The rule of law Where there is a warrant breach the contract still stands however, the innocent party may sue for loss of damages caused. In reference to O'Sullivan, Hilliard pg 366 the breach of a contact is a major offence in the law of contact that can lead to the termination of the contact and the contractual duties imposed. An unperformed condition may render a contract to end. Injunction and specific performance are remedies that can apply where there is breach or false performance of the obligation expected. Warrant and conditions are illustrated further in the sales of good terms9. Facts and the application of the rule of law According to Whincup pg 47, it is a fact that the two parties entered into an agreement that was highly enforceable to create legal relations10. Therefore, both parties where entitled to fulfill their contractual obligation in honor of the contract according to Whincup pg 20 and 110. The rule of law states that where there is a breach of warranty then the offended party may sue for the damages suffered but the contact still stands according to Collins Commonwealth of Australia v/s Verwayen pg 81. If the company failed to deliver, the tickets to Chad on time then Chad was liable to sue them for the loss of damages. The company on the other hand can sue Chad fails to pay them after they perform their duties. When a condition is false or breached, the contact becomes void, voidable, or rescinded. According to Stone pg 260 Harbutt Plasticine Ltd v/s Wayne Tank and Pump Co Ltd (1970) the innocent party is also liable to affirm the contract, such applications enables Chad to sue if he were not offered the expected service that he duly paid for. The offended party is liable to remedies like, injunction and specific performance. In reference to Gillies pg 100 and 101, warranties bring upon a fundamental breach in a contract. Conditions and Warranties The terms indicated are conditions and some of them fall in the categories of warrants according to Mirza Pg 111. Conditions Chad’s agreement to pay for the tickets to the first email that he sent to the first email The company’s agreement to deliver the package and tickets to Chad at his request The companies guarantee to Chad’s package request for adult and the tickets to the Women’s Hockey medal matches The company was obligated to issue out the correct number of ticket for the correct event that each client had requested. According to Kodilinye and Kodilinye Kempadoo v/s Chin pg 109 the company was liable to issue valid tickets that were not tattered, rejects, or expired. Warranties According to Chad was liable to give out the correct credit details for the deduction of the payments for the tickets and not fraudulent or fake identification. The company was liable to deduct the correct amount from Chad’s credit card In addition apart from the offended party engaging into a demand for the compensation of damages or losses incurred the party can decide to terminate the contact per without suing. Although both conditions and warrants carry diverse weight in the determination of a contract, they both bring out key elements of a contact. References Cases Used Arcos Ltd v/s EA Ronaasen & Son (1933) Tramways Advertising Pty Ltd v/s Luna Park (NSW) Ltd 1938 Kempadoo v/s Chin Commonwealth of Australia v/s Verwayen Felthouse v/s Bindley and Commonwealth of Australia v/s Verwayen Gibson v/s Manchester City Council Other Sources McKendrick, Ewan. Contract Law: Text, Cases, and Material. Oxford. Oxford University Press, 2012. Kodilinye, Gilbert and Kodilinye Maria. Commonwealth Caribbean Contract Law. London. Routledge, 2013. Mirza, Fysul. Define and distinguish or Difference between warranty and conditions with reference to the contract of the sale of the goods act, 2011. http://studypoints.blogspot.com/2011/08/define-and-distinguish-or-difference_4255.html Gillies, Peter. Concise Contract Law. Sydney. Federation Press, 1988. Collins, Hugh. The Law of Contract. Cambridge. Cambridge University Press, 2003. O'Sullivan, Janet and Hilliard Jonathan. The Law of Contract. Oxford. Oxford University Press, 2012. Riley, Jim. Contract - Elements of a Contract, 2012. December 28, 2013 http://tutor2u.net/law/notes/contract-elements.html Stone, Richard. Text, Cases and Materials on Contract Law. London. Routledge, 2012. Walker, Peter. Practice Notes on Consumer Law. London. Psychology Press, 2001. Whincup Michael H. Contract Law and Practice: The English System with Scottish, Commonwealth, and Continental Comparisons. New York. Kluwer Law International, 2006. Wairimu, Anne M. Business Law: Conditions and Warranties, 2011; December 28, 2013 http://ezinearticles.com/?Business-Law:-Conditions-and-Warranties&id=6361623 Read More