INTRODUCTION As businesses become increasingly globalized, it is only natural that international commercial transactions and contractual obligations follow. While parties entering into such transactions may not always be aware of applicable foreign laws, they still desire freedom, predictability, and convenience in contracting. The need for a uniform set of laws is especially significant in the area of international contracts because ascertaining the applicable law is more difficult in this area than in almost any other area of law. A dispute about an international contract may have foreign elements and thus one or both of the parties may be foreign, or the making or performance of the contract, or its terms, may be connected with one or …show more content…
Specifically, the presence of these connecting factors makes it difficult for any party or court to identify a single factor that determines the applicable law. Second, there is a question as to which law should determine, among other things, the interpretation, validity, and discharge of the contractual obligation. And third, due to the number of different types of contracts that exist, including contracts for the sale of goods, employment contracts, and insurance contracts, an issue arises as to whether different types of contracts should be governed by a uniform law or whether different laws should govern each particular type of contract. Both contracting parties and courts must consider these issues in creating, interpreting, and enforcing international …show more content…
If the contract is a domestic contract then the Indian law applies but the moment the foreign element comes into picture, the question arises as to which law will govern the relations between the parties of the contract or whether the proper law of contract would regulate the contract. To know which law is the governing law one sees the formation of contract and the effect of the contract. It must also be noted that even in cases of domestic law, foreign law can apply. On the other hand, proper law of contract is that law by which the contract is intended to be governed. English judges assert that it is that law which the English court is to apply to determine the obligation under the contract. The law by which the parties have intended to be governed is ascertained from the terms of the contract, the situation of the parties and all other circumstances. There are basically two approaches in this context: 1. Westley or Westlake
When discussing the concept of contract law, there exist two bodies of legal rules that may apply to the contract. These bodies are the common law of contracts and Article 2 of the Uniform Commercial Code or the UCC. The common law of contracts is court made and is constantly changing, but the UCC is required in every state within the U.S.A. It is important to know which one to use and when, as well as what the differences between them are.
That said, we agree that the core of commercial transactions and the Uniform Commercial Code are fundamental bases for international commercial transactions. Over the years, all laws have influenced society to shape their format into better laws more applicable to the reality of each time. The same has happened with the UCC, to better serve the demands of today’s business commerce. The UCC serves today as such a complete version for business transactions that common law will only apply when the Code is not spoken. One example of this situation is that prior to the adoption of the UCC, sales contracts were governed by the common law of contracts.
Legal Studies Essay Joey Agerholm Exclusion clauses determine the liability of something that might go wrong within a contract. They are used by sellers as an attempt to avoid or limit their liability. The seller has the advantage over the buyer who must agree to the clauses to purchase the product/service. Because of the buyers disadvantage the court takes such cases, involving exclusion clauses, very seriously, and the content of the clauses are carefully interpreted. With the current Trade Practises Act and the Fair Trading Act the standard form of business contract is adequate and effective in protecting the buyer. The Trade Practise Act is the most effective legislation for the protection of the consumer. It implies to the following situations:- - “A promise by the seller that the buyer will become the owner” If a car dealer breaks a promise or part of a contract, for example that he has the right to sell a car, and the car is stolen then although the buyer will have to give the car back he/she will get her money back. - “ A promise by the seller that goods will fit the description supplied by the seller” In this case the buyer is protected if the seller makes a promise, which is a condition of the contract, describing the product, and when the buyer receives the product, it does not match the description. - “ A promise where the seller is made aware of the purpose for which the goods are required, that the goods will be reasonably fit for that purpose” This condition is implied when the buyer makes the purpose of the goods needed known to the seller, and the buyer then relies on the seller’s judgement in providing the correct product. For example it would not be reasonable if you made the seller aware that you wished to purchase something suitable for mowing the average suburban backyard and you were sold a tractor. - “A Promise that goods are of merchantable quality” According to this act a good is considered to be merchantable if they are suitable for the prospect for which other similar goods are sold, involving the description applied to them, the price and any other relevant information. This act does however does not protect the consumer if he/she has examined the product and missed any defects that should have been seen or if the seller made him/her aware of the defect prior to the purchase of the product.
-Court must be convinced that failure to comply with an agreement will lead to one of the parties to suffer prejudice. Court will protect innocent party, will provide remedy
The article suggests that mutual intention should replace objective presumptions of intention to provide sufficient evidence for contract formations and argues that the Australian court system has a long way to go. It further investigates the different court hierarchies and examines the impact to them through different case law. The central argument presents that evidence of intention should be of utmost importance and considered in every case, negating a flat objective
With commercial dealings on the rise in Australia and globally, so too are the complications. If some sort of codification is not established and built from the principals that already exist, commercial opportunities could be in jeopardy due to the uncertainty and risk of not having a clear outline or set of laws to cover contracts generally.
Contract law controls most agreements between parties, whether oral or written, that involve goods, services, money, employment contracts and real estate deals. In order for a contract to be valid, there must be a few elements that are satisfied. There must be a negotiation, an agreement which consists of an offer and acceptance of the offer, consideration, capacity, and legality. The sources of law that governs contracts today consist of two bodies of law, Article 2 of the Uniform Commercial Code, also known as the UCC, and the common law of contracts. Determining what body of law applies to a contract dispute is an important first step in analyzing that problem. The Uniform Commercial Code, or UCC, is a statutory law that was adopted in every
The primary purpose of the “Statute of Frauds” (SOF) is to protect the interests of parties once they are involved in litigating a contract dispute (Spagnola, 2008). The relevant statutes are reliant upon state jurisdictions to determine whether the contract falls under the SOF, and whether the writing of the contract satisfies the requirements of the statute of frauds (Spagnola, 2008). However, all contracts are not covered under the SOF. In essence, for a contract to be deemed as legal by definition of the SOF, there must be verification of the following requirements for formation of the contract, which are as follows: (1) There must be least two parties to the contract, (2) There must be a mutual agreement and acceptance on the price to pay for goods and services offered, (3) The subject matter or reason for entering the contract, must be clearly understood by all parties to the contract, (4) and there must be a stipulated time for performance of duties under the contractual obligations (Spagnola, 2008). Lastly, there are five categories of contracts that are covered under the SOF, which are as follows: (1) The transfer of real property interests, (2) Contracts that are not performable within one year, (3) Contracts in consideration of marriage, (4) Surtees and guarantees (answering to the debt of another), and (5) Uniform Commercial Code (U.C.C.) provisions regarding the sale of goods or services, legally valued over five hundred dollars ($500.00) (Spagnola, 2008).
The case presented is that of Sam Stevens who resides in an apartment. He has been working on an alarm system that makes barking sounds to scare off intruders, and has made a verbal agreement with a chain store to ship them 1,000 units. He had verbally told his landlord, Quinn, about his new invention and Quinn wished him luck. However, he recently received an eviction notice for the violation of his lease due to the fact that his new invention was too loud and interrupting the covenant of quiet of enjoyment of the neighbors and for conducting business from his apartment unit.
HILLIARD, J. And O’SULLIVAN, J. (2012) The Law of Contract [Online] 5th Ed. Oxford: Oxford University Press. Available from - http://books.google.co.uk/ [Accessed: 2nd January 2014]
In any kind of legal relations, subject always play an important role, and it is one of the signals to determine the relation that pertaining the adjustment of any legislation system. International law is a legislation system that is a set of thousands of documents from various sources. The research about the subjects is necessary since it helps to find out the source of law, which relation pertains the adjustment of law. The subjects of international law include sovereign states and analogous entities, intergovernmental organizations, the individuals, and multinational corporations.
The basic law of a contract is an agreement between two parties or more, to deliver a service or a product. And reach a consensus about the terms and conditions that is enforced by law and a contract can be only valid if it is lawful other than that there can’t be a contract. For a contract to exist the parties must have serious intentions, agreement, contractual capacity meaning a party must be able to carry a responsibility, lawful, possibility of performance and formalities. Any duress, false statements, undue influence or unconscionable dealings could make a contract unlawful and voidable.
A contract is an agreement between two parties in which one party agrees to perform some actions in return of some consideration. These promises are legally binding. The contract can be for exchange of goods, services, property and so on. A contract can be oral as well as written and also it can be part oral and part written but it is useful to have written contract otherwise issues can be created in future. But both the written as well as oral contract is legally enforceable. Also if there is a breach of contract, there are certain remedies for that which are discussed later in the assignment. There are certain elements which need to be present in a contract. These elements are discussed in the detail in the assignment. (Clarke,
Public International law International law contains of rules and principles, which preside over the relations and communication of nations with each other. International Law that is in most other countries referred to as Public International Law concerns itself only with questions of rights among more than a few nations or nations and the citizens or subjects of other nations. In dissimilarity, Private International Law deals with controversies among confidential persons, natural or juridical, arising out of situations having important association to further than one nation. In current years the line up connecting public and private international law have became more and more doubtful. Issues of private international law may also associate issues of public international law and numerous matters of private international law nave considerable meaning for the international group of people of nations. International Law consists of the basic, classic concepts of law in nationwide legal systems, status, property, responsibility, and tort. It also includes substantive law, procedure, process and remedies. International Law is rooted in receipt by the nation states, which comprise the system. Customary law and conventional law are primary sources of international law. Customary international law results when states trail convinced practices usually and time after time out of an intelligence of legal responsibility. Lately the customary law was codified in the Vienna Convention on the Law of Treaties. Conventional international law derives from international agreements and may obtain any appearance that the constricting parties have the same opinion upon. Agreements may be complete in admiration to any substance except for to the leve...
The area of law that is required in order to form a legally enforceable contract is agreement.