Morris sold his photocopying and laminating business for $95,000 to Beth. Because Beth did not have the money to pay cash, Morris agreed to an immediate payment of $35,000 with the balance payable out of future profits over the next three (3) years.
In the first six (6) months the business did well and Beth was able to pay Morris a further $5,000…
Beth's profits fell alarmingly.
Beth advised Morris that financially she could no longer continue with the agreement and would have to close the business. Further, she accused Morris of knowing that the competitor was about to open up and therefore she was commencing legal action to rescind the contract based on fraudulent misrepresentation.
Morris contacted Beth and made the following comments: "I absolutely deny your accusation. By my reckoning you still owe me $55,000. However, if you continue with the agreement I'll reduce that amount to $35,000." Beth accepted the deal.
Six (6) months later Beth landed a huge contract laminating all the posters for a chain of tourist attractions along the north coast of New South Wales. Beth's profits have soared. Morris is now demanding that the original contract price be complied with (i.e. Beth pays the remaining $55,000).
This discussion is going to specifically deal with what a valid contract contains, because if these elements are essential to determining a valid contract. This is done from a sale of goods perspective; however the basics are the same whatever the type of contract. Finally this discussion will stress the importance of these elements and the necessity for all three, i.e. agreement, consideration and intention, to be present or the contract is void or voidable. The first element that will be dealt with is the notion of agreement between the seller and the buyer. This element contains the ingredients of offer and acceptance. The notion of a valid offer has to be distinguished from a mere invitation to treat, for example goods in a store on display is a mere invitation to treat and an offer happens until the buyer takes the goods to the sales person and it is the discretion of the sales person to accept the individual's offer to buy. The sale of goods concerns a bilateral agreement which consists of an exchange of promises, i.e. Item on sale for 10.00 (Invitation to Treat); Item taken to till which equates to - I will buy this item for 10 pounds (Offer); 10 pounds asked for by sales person (Acceptance); hence important with the sales of goods, when it comes to the standing of an advertisement or goods display or the communication of acceptance because there has to be an exchange of promises as opposed to the offeror alone making a promise and the acceptance is the act that the offeror has promised to pay for (unilateral agreement), i.e. rewards for lost items returned to the offeror. Therefore the sale of goods concerns a bilateral agreement, where two promises are exchanged as the offer and acceptance. An offer is a clear promise to be bound, as long as terms are accepted. A valid offer must be clearly communicated by writing, mouth or act in order to allow the other person or group of persons1 to decline or accept. In relation to sales of goods there is no requirement for the agreement and offer to be in writing, as with the sale of property; however the offer has to be certain in its terminology and must be clearly distinguishable from an invitation to treat. In respect to certainty of terms both parties must make their intentions clear, as the courts will not enforce a vague agreement2 or an incomplete agreement3; in addition it has to be more than a wish to enter negotiations, which the individual does not want to be bound (invitation to treat)4. Therefore the elements of a valid ...
Cite this document
(“Law case Essay Example | Topics and Well Written Essays - 1500 words”, n.d.)
Retrieved from https://studentshare.net/miscellaneous/307945-law-case
(Law Case Essay Example | Topics and Well Written Essays - 1500 Words)
“Law Case Essay Example | Topics and Well Written Essays - 1500 Words”, n.d. https://studentshare.net/miscellaneous/307945-law-case.
Antitrust laws can be defined as acts adopted by congress to ban or hinder business practices considered being monopolistic or restraining interstate commerce. A clear example is the Sherman antitrust Act of 1890 between states or foreign countries.
Thus in the case in question, the common law is taken into consideration. In some nations, the dispute may fall under the federal doctrine while in the United Kingdom; there is use of the U.K law to solve the dispute. This is especially when a member of the public is part of the dispute as seen in the case of Spiliada Maritime V Cansulex.
“The term quasi-contract is a more accurate designation of contracts implied in law. Implied contracts are as binding as express contracts. An implied contract depends on substance for its existence; therefore, for
In regard to the entry of judgment of the ruling, Dr Netzley was granted motion for a new trial on the basis of juror confusion in regard to interrogatory and verdict forms and the judge’s reference to excluded evidence
The plaintiff Mr. Tompkins, a citizen of Pennsylvania, complained in a Southern New York Federal court. His complain was that he had been injured by a passing train, while he was on his way home, after being dropped by his friend at
Karen claimed that Dean Witter had been issuing false information regarding the performance of the investments. When still a customer to Dean Witter, Howsam and Dean Witter had entered into an agreement
The administrative tribunals on the other hand have the powers of making decisions that deals with the matters of the constitution (Willes & Willes, 12). The Broadcast regulator has the powers of a regulator. It has the powers to cancel
6 Pages(1500 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic Law case for FREE!