ASSIGNMENT TWO - BUSINESS LAW Name: Institution: Course: Date: Part A - Question 1 Step I: Legal Issue The principle issue here is whether or not Peter and Burt are legally bound to purchase the Cadel Evans “GF” model bicycle from Sally. Step II: The Rule of Law with Reference to Relevant Authority The three prime elements necessary to constitute a binding contract are: intention, agreement and consideration…
Under the element of ‘agreement’, several aspects must be established to activate demonstrate a consensus on some of the major terms of the exchange: 1. Offer. There must be an offer for sale under clearly stipulated terms which includes a full description of the item(s) of exchange.The offer must be complete. Ordinarily this would include a description of the item(s) for exchange, nature of the item(s), the cost or price and any other sale-related features such as payment details. 2. Acceptance. The parties involved in the intended exchange must accept the offer as stipulated and communicate this acceptance within the period in which the offer still exists. Acceptance of the offertory terms becomes invalid when a counter-offer is made and allowed by the parties involved. 3. Genuine consent. Parties to the contract must have contractual capacity an additionally must freely enter into the contract. Elements of duress, mistakes and misrepresentation may render the acceptance void and thus, the contract too. Step III: Applications of the Rule of Law to Case Facts 1. Offer. Sally’s initial offer is for a dashing green Cadel Evans “GF” model bicycle at a cost of $6,000 payable upon delivery. The offer’s duration has not been expressively stated. ...
Peter’s acceptance is conditioned on acceptance of his counter-offer and a communication thereof within the closure of business the following day. His liability becomes questionable at this juncture. 3. Genuine consent. By responding to the offer, both Peter and Burt are aware that they are entering into contractual obligations. There is however an element of duress on Sally’s part that may render her consent void. She hastens the delivery of the bicycle to Peter’s premises to make the amount duly payable for fear of foreclosure by the bank on her outstanding mortgage payment amounting to $4,000. 4. Contractual capacity. Their contractual capacity is valid as they have both attained the majority age. Conclusion Sally cannot draw a suit against Burt for any breach of contract since he expressly denied acceptance of the adjusted $5,000 for the bicycle and communicated it in reasonable time to sally.The contract therefore does not exist between the two individuals.She might have had a claim against Peter except that it might be proved that there was lack of a genuine intent by sally to provide reasonable time for Peter to communicate and finalize the sale agreement i.e. It can be interpreted that Sally only entered into the contract to transfer her liability from the due mortgage and foreclosure to Peter. At Law, no contract can be valid if it is entered into with malicious intentions. However, ignoring the performance of the contract, Sally can enforce legal action against Peter as per the $ 4,000 under the contract for sale since there was implied agreement through their email discussion that instructed the seller to make delivery of the bicycle as soon as his ...
Cite this document
(“Business law Essay Example | Topics and Well Written Essays - 1500 words”, n.d.)
Retrieved from https://studentshare.net/other/8537-business-law
(Business Law Essay Example | Topics and Well Written Essays - 1500 Words)
“Business Law Essay Example | Topics and Well Written Essays - 1500 Words”, n.d. https://studentshare.net/other/8537-business-law.
The increase in price is justified obviously because none of the hoteliers, except Brad, object to the price increase. The likelihood of any consumer backing off or refusing to pay the new rates is minimal because Port
o be considered as the first source of English Law because its decisions and case law conclusions are binding in all courts below it in the hierarchy (Kelley and Holmes, 1997). House of Lords is considered to be the last resort in the UK.
Kelley and Holmes (1997) argued that it
Gharar refers to uncertainty or a perilous condition that is illegal under Islamic law. As a result, no damages can be awarded for breach of a contract in which a party took risks. The law therefore limits damages by the extent of the taken risk
Upon notification by the waiter, the defendant paid in cash all the accrued debt and later on development of complication from the frustration, sued for damages and compensation. The card was to secure
The court is likely to dismiss Price’s claims because of various legal concepts that invalidate his contract with the parties and even undermine possible claim from their dealings in the drug. A contract is only valid if its
1 Pages(250 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic Business law for FREE!