Key Elements of a Valid Contract and Their Importance Essay

I. T use up 1 Explain the different types of blood parallelism and importance of the key elements required for the anatomyation of a valid coerce. 1. cardinal elements of a valid incur and their importance Contract is very grave in the trading to bind champion or more than(prenominal) parties with the differents. Hence, rationalise is defined as an conformity which juristicly binds the parties1. Contract is excessively an balance made among deuce or more parties that compel rights and obligations enforceable by law. They have to follow all the conditions in centers and cig atomic number 18t non break it. on that point ar three basic requirements that need to be satisfied in order to understand a signalize An agreement consideration intention and capacity1.1.An agreement1.1.1.OfferOffer is one of two parts of an agreement. An support is defined squall tobe bound on specific shapes2. Generally, its accompanied by an expected credenza. Offeror is the soul who making an offer. Offeree is the one who accepts the offer. For pillow graphic symbol, the offeror makes an offer to purchase a car. If the offeree agrees, in that location is an agreement between two parties. An invitation to action is not an offer, its yet the invitation the other to make an offer. For instance, the advertising betters for sale through television or recentspaper. An offer keep be withdrew in front the offeree r to each onees the offer or revoked before offerees acceptance.1.1.2.AcceptanceAcceptance of the offer is the qualified agreement to the call of the offer3. An acceptance is in oral , writing or in other communications. When an offer has been made, no contract is formed until the offeree accepts the offer. In addition, acceptance moldiness(prenominal) be final and unconditional and communicated to the offeror. According to postal rule, the acceptance occurs when the letter is posted. The postal rule is not apply to instantaneous mode of communi cation.1.2. thoughtfulnessConsideration is usually described as being any(prenominal)thing which represents either some pull in to the idiosyncratic making a promise( the promisor) or some detriment to the soulfulness to whom the promise is made( the promisee) or both4. A consideration bottomland be executory (a promise in return for a promise) or executed (an act in return for a promise), moreover not past. For instance, in the miscue Roscorla & Thomas(1942)5. In addition, the consideration doesnt have to be adequate but must be sufficient. Furthermore, consideration must be legal, clear, certain and not be illusory. 1.3.Intention to reach legal relations and capacity to contract Intention to create legal relations on that point atomic number 18 two kinds of intention municipal Agreement and Commercial Agreement.In every home(prenominal) agreement between the people who have special relationship, there is no intention to create legal relations. If there is evidence of commercial substance in domestic agreements, there is intention to create legal relation. In contract, the commercial agreements be usually intended to be legally binding. Beside the agreement, consideration andintention, there is also capacity to contract. Capacity refers to ability of parties to fully clear the rights and obligations of an agreement. However, there atomic number 18 some groups which are unable to enter into binding contract Minors, drunkards, bankrupt, mentally incapacitated.2. Different types of business agreementThere are two types of business agreement consumer non-consumer. 2.1.ConsumerA person forget be considered as a node if he doesnt make the contract in business but the other parties make. The devouts which customer buy must be persona for private purpose. Consumers have legislative protection from unfair terms in consumer contracts. A supplier of goods or services behindful have an expediency over the consumer by including such an unfair term in a contract. however, consumer contracts are open to a test of fairness.Specifically, a consumer is a person who is buying a service or a product for themselves from psyche whose normal business it is to sell that product or service. When you buy goods or services you enter into a contract with the supplier of goods and services. This is called a consumer contract. The fount typical example is R&B customs Brokers and United Dominions trustingness Ltd 19886, this illustration is considered as a consumer sale, the company is not in the programme of business.2.2.Non-consumerNon- consumer contract is the contract which is made between two or more parties which are in the product line of business. NN .,LJLKLKMLMKLMKLM , M. For example, company A buy televisions from company B. the resell the products to customers and make a profit. In this case, the company A is considered as non-consumer.II. Claim 1There are two parties in this case Trung and supplier. Trung saw an advert in the local paper for nearly new machine. The advertisement articulate A cutting machine $7,000 or nearby offer. In good pull ining order. Recently tested, approved and guaranteed by the Ministry of works. Delivered to your speak to if within a 15 mile radius of our make out. Theadvertisement is an invitation to treat. Trung purchased the machine over the telephone and waited for delivery. An invoice was sent for 7,000$ and it was compensable. In this case, the invitation to treat of supplier becomes an offer and Trung agreed to purchase it. Its a good consideration between the supplier and Trung. Hence, there is a contract. However, the machine neer arrived. In this situation, the supplier breach the contract. The supplier of the machine claimed that Trung should have paid for delivery and that he had sold it to another customer, Sam for 8,500$.The supplier is lively to return Trungs cheque for $7,000. Situation 1 The agency from suppliers place to Trungs place is within a 15 miles. The supplier offered Trung to buy the machine and free delivery generatement to his address if within a 15 miles radius of his address. In addition, the length of the demeanor from Trungs place to suppliers place is 15 miles. Therefore, Trung can process the supplier for breaching of the contract. Situation 2 The way from suppliers place to Trungs place is more than 15 miles. The supplier offered that the delivery fee will be free if the length of the delivery way is within 15 miles. However, the way from suppliers place to Trungs place is more than 15 miles. Thus, Trung must compensate the delivery fee in order to own the machine.III. Claim 2There are two parties in this case Robert( the husband) and Theresa( the wife). Robert and Theresa are planning to divorce. They have washed-out their married life in a dwelling which they bought in marijuana cigarette names, with the help of a mortgage which has six years still o run. Robert and Theresa agree that Robert will move out of the house and if Theresa meets the mortgage re give inments for the contiguous six years, Robert will, at the end of that time, transfer sole ownership of the house to her. There is a domestic agreement between Robert and Theresa. Hence, there is no legally binding between the couple. However, Theresa pays the mortgage for a year, at which tiptop Robert says he has changed his mind, and doesnt intend to transfer his share of the house to her. Thus, there is evidence of commercial substance of Robert. .Its similar to the case Merritt& Merritt, 1970 6. Therefore, Theresa can sue him for breaching of contract. If Robert had changed his mind before Theresa had started paying the mortgage, the offer can be revoked any time before the acceptance of Theresa. Hence, Theresa can not sue Robert forbreaching of the contract. If there is the same case, the husband should be careful and consider almost his benefit when he decide to transfer the owner ship to his wife. In additio n, the wife should get divorced with her husband before making a contract to be sure that she will own the house when she refraines paying the mortgage.IV. Claim 3There are 3 parties in this case tung tree, Linh and the hotel. Tung is 16 years old and his friend, Linh is 19 years old. In this case, Tung is in youngster group and he is unable to make a contract and irresponsible for all he acts. Tung books the hotel as part of the contract he states that all drinks and extra food are to be put on the bill. The hotel asks for a deposit of $500 which Tung pays but does not state his age. In this situation, there is a contract between Tung and the hotel. However, Tung is in minor group so he is unable to make a contract but the hotel didnt check and care about his age. One night, Linh became hopelessly drunk, did not have what she was doing and damaged hotel hotel property. Linh was in drunkard and she caused the damages for the hotel. Although she was hopelessly drunk, she only need nt to pay the damages when she was making the contract. According to Law of Torts, Linh caused the damages and did the legal wrong acts.Hence, Linh must pay for the damages which was caused by her in this case. The pursuance day they were asked to leave the hotel. They refused to pay the dandy bills and the hotel gave them a bill for $myriad for the damage they caused. The contract was made between Tung and the hotel. However, the hotel didt ask his age and allowed him to hire the room. Hence, this is the hotels wrong action and Tung neednt to pay for the undischarged bill of him and Linh.On the other hand, Tung is in minor group so his parents must pay for the outstanding bills. Therefore, in this case, Linh must pay $ 10.000 for the hotels damages. Tung and Linh neednt to pay for the outstanding bills. However, Tungs parents must pay for the bill. If Linh made a contract with the hotel and Tung didnt make it, Linh must pay the outstanding bills for the hotel. Linh is more than 18 years old and she must respond for all her acts. Therefore, the outstanding bill must be paid by Linh and there is no wrong action of the hotel. If there is a similar case, the hotel should ask for the customers age before accepting him to hire the room.V. Task 4 Explain the differences among conditions, warranties and innominate terms with examples to illustrate. 1. ConditionsThe condition is defined as a term which is vital to the contract , going to the root of the contract7. When a condition is breached, the wound party can sue for the damages. For example, in the case Poussard and Spiers (1876)8, the vocalist can not sue the company because she breached the condition of the contract. Singing in an opera throughout a series of performance is considered as fundamental to the contract. 2. WarrantiesWarranties is a less crucial term. It does not go to the root of the contract, but is subsidiary to the main purpose of the agreement 8. The warranty terms can be breached withou t highly important consequences. For example, in the case Bettini and Gye, 18768, the breach of the article is considered as breach of warranty. Hence, the producer must accept the opera singers services3. Innominate termsThe Innominate term is the term which is not a condition term or warranty term. The decision will count on the nature and effect of the breach. If the effects are serious, the term will act as a condition. In contrast, If the effect of the breach is minor and not serious, the warranty term can be considered. For example, in the case Hong Kong Fir Shipping Co Ltd and Kawasaki Ltd(1962)9VI. Task 5What do you understand about law on type form contracts and give examples. The metre form contract is a standard document prepared by many large organizations and setting out the terms on which they contract with their customers. The individual must usually take it or leave it he does not really agree to it10. There are some important features of standard contract. For ins tance, its often used by large green goddess or as an attempt to limit financial obligation for damages or losses. The standard form of contract is also used to delayed by the party presenting the standard form agreement11. In addition, the companys deterrent example and customers have no authority to negotiate the standard terms contract. In addition, the standard form contract is also defined as a contract between two partiesthat does not allow for negotiation.It is often a contract that is entered into between unequal bargaining partners, such as when an individual is given a contract by the salesperson of a international corporation12. However, the standard form contract is rarely read. Although the information is discovered, the people powerfulness have no time to read it. The expected payoff from translation the contract is low and few people would be expected to read it. However, Standard form contracts may exploit unequal power relations. formerly the goods is really important to the customer and they must accept the standard form of contract in order to own the goods. The consumer must accept the standard provisions and does not have the ability to change those terms .This trouble may be mitigated if there are many suppliers of the good who can potentially offer different terms. This issue might apologise if there mare more suppliers who can offer different terms. This is one typical example for standard form of contract The licensee Plaintiffs arguments that the forum survival clause is unconscionable and that it is a contract of bail bond may be taken together. An unconscionable bargain is one which no man in his senses and not under delusion would make on the one hand, and no honest and fair man would accept on the other. The fact that the Franchise Agreement was presented on a take it or leave it backside and was not subject to negotiation renders it neither a contract of adhesion nor unconscionable13.VII. Claim 71. The ClaimThere ar e three parties in this case Thanh, Tung and another party. Thanh won a contract to regenerate a blocks of 20 flats, the work to be completed within 12 weeks. There is a contract between Thanh and another party to freshen the blocks. He subsequently subcontracted with Binh to install central heating in each of the flats for a fixed price of $20,000 $10,000 of which was to be paid on shutting and the rest being paid in weekly installments. In this case, Thanh promised to pay Binh half of money. Binh agreed to complete the work in 12 weeks. There is an agreements between Binh and Thanh. Hence, there is a contract.After 6 weeks, Binh is unable to finish the work in 12 weeks because he had underpriced the work involved. After that, Thanh offered to pay Binh an addition $500 for each flat so longas they were all furnished before the due completion date. According to pull back Majeure, when the parties can foresee that difficulties are likely to arise but the parties can not foresee t heir precise nature or extent, Force majeure is applied14. Thus, its Thanhs duty to pay more money for Binh to work.Binh carried onwork on the flats. In this case, Thanh ran out of money and he agreed to pay $5,000 of the money outstanding from the originary agreement. At this time, Binh has a consideration but Thanh didnt. Its not an agreement between Binh and Thanh. After that, Thanh awarded a prize $10,000. Thus, its Thanhs duty to pay Binh this amout of money because the contract was made between Binh and Thanh. All in all, Thanh must pay Binh $10,000 of his award prize.2. The Effects of Exlusion clauseAn forcing out clause is a clause which seeks to release one of the parties from liability should something go wrong with the contract15. Sometimes, the contract are unfair with some of the parties. Thus, the exclusion clauses will avoid liability for certain breaches of the contract. An exclusion clause must be co-ordinated into contract before it has legal effect. There are t hree ways of exemption clause which might be incorporated into a contract by signature, reasonable notice and previous course of dealing.When a term is unusual, the attention of other parties is drawn to it when the contract is made. The example is in case Interfoto Picture Ltd and Stiletto Visual Programmes Ltd 198816. However, there are some people or organizations who rely on the exclusion clause to make benefit for themselves, the court will interpret any ambiguity. It means that the terms must be clear and specific to be easy for other parties to understand. For example, in the case Hollier and Rambler Motors 197217, the acts of the garage can be considered as the negligence. quality pages1. Common law, BPP professional Education2. Contract Law, Catherine Elliott and Frances Quinn3. http//www.citizensinformation.ie/categories/consumer-affairs/consumer-protection/consumer-rights/unfair_terms4. http//www.bluemaumau.org/contract_adhesion5. http//www.innovation.gov.au/General/OSB-m arketsSection/Pages/WorkingwithContractsStandardformcontracts.aspx6. http//en.wikipedia.org/wiki/Standard_form_contract