1. Contract Law in Private Enterprise
Discuss the importance of contract law to the private market system. How does contract law provide flexibility and precision in business dealings?
Private law enables private agreements to be legally enforceable. Enforceability of agreements is desirable because it gives people the certainty they need to rely on the promises contained in an agreement. Contract law provides enormous flexibility and precision in business dealings. It provides flexibility where you can agree to anything that’s not illegal or against public policy.
2. Sources of Contract Law
(a) What is meant by the common law of contracts?
Common law comes from judges’ decisions. The courts have developed principles controlling the contract formation, performance,
…show more content…
Bilateral contract involves a promise for a promise, a unilateral contract is an agreement with only one promise, and only one party is committed to perform. The marker of such a promise seeks an action rather than a promise in return.
(b) Which type is more common in business?
Most business contracts take the bilateral form. Courts presume a bilateral nature of an agreement whenever there is doubt about a form.
4. Express and Implied-in-Fact Contracts
(a) Using an instance in which you bought or sold something in the last week describe the terms of an express contract that might arise between the supplier and the seller.
I brought a Sam Club membership which in titles me to buy products wholesale at a discounted price per my membership agreement. Club members provided me with free items just for signing up also received a $10.00 gift card.
(b) When would an implied-in-fact contract arise between a seller and a buyer?
Implied-in-fact contract to pay for a cup of coffee arises when the buyer asks for a cup of coffee at Dunkin Donuts. The promise to pay is implied rather than expressed.
5. Implied-in-Law or
The difference between an express contract and an implied in fact contract is the manner in which assent is manifested.
1.1 Explain at least four points of differentiations between contract and agreement with the help of examples.
Australia, commercially would be at an advantage if contract law was codified. The common law system which contracts calls home, can only take on so many avenues and limits itself when stretched to cover new areas. There needs to be a national set of laws governing contracts on the commercial front and in general areas to overcome discrepancies across borders. However there still remains inconsistency with consumers, minors and business trade through contracts made online. The digital economy is not only one of the fastest growing areas but is forever changing and is definitely a prospect that needs to be covered. Effective legal safeguards against undue exploitation and advantage-taking in such online dealings would see Australian contract law remain in the global arena. The Australian public need greater stability and certainty from contract law, and codification is a step towards fulfilling that void by allowing citizens to be well equipped and educated on their rights and decisions.
When it comes to contracts, there are certain elements or requirements, which need to be met in order for the contract to be valid. Defined, a contract is “an agreement that can be enforced in a court; formed by two or more parties who agree to perform or refrain from performing some act now or in the future” (Hollowell & Miller, 2014, p. 110). With contract law, there is the enforcement of promises made between two parties, even if made in private. Additionally if a promise is made, there is the possibility of the obligation falling into a moral liability rather than a legal liability. All in all, when it comes to business agreements, contract laws will apply to avoid any possible problems that may arise.
Common law is “judge made-law” and “includes law by judges when they interpret law (lecture notes, 11/16)”. Common law authors trusted that “natural law was too abstract and theoretical for their pragmatic, concretely focused minds…simply out of touch with concrete human affairs (Coleman 593)”. Therefore, common law was developed.
(b) the other party does make the contract in the course of a business; and
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]
Contractual agreement has always been viewed in terms of offer and acceptance. The universal principle to contract law has always been parties may get into an agreement in whichever way they deem fit and they are subject to certain terms as they choose. As far as legal requirements vital to their formation are binding contracts may be formed. Moreover a binding agreement may be manifested in terms of writing or in verbal form.
Unilateral – some offers are purely one sided, made without the offeror’s having any idea whether they will ever be taken up and accepted, and thereby be transformed into a contract. For example when an advertisement where a person is rewarding another one if he finds his pet (which was lost). In this case the person who is making such an offer is not sure whether this offer will be ever accepted.
One of the last remaining strongholds of classical contract law is the notion that contracts require offer and acceptance therefore, in order for a contract to become binding, offer, acceptance, consideration and intention to create legal relations must exist. However contracts are formed in different ways for each different circumstance. (Shawn Bayern, Offer and Acceptance in Modern Contract Law: A Needles Concept, 103 Cal. L. Rev. 67, 102 (2015)
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.
This judgment given set criterion which is still been used in the modern court system and due to this case it was developed that an offer of contract can be unilateral and doesn’t have to be made to a specific party only. Also it was developed to that the acceptance of an offer does not require a notification and that once the concerned party purchases the product the contract is active then and there itself. And it was also established that purchase of an item is a fine example of consideration and therefore makes it a valid contract. (Smith, 2000).
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,
A contract is generally considered to be an exchange of promises or an agreement between parties which in due course legally binds the parties; this can be enforced by the English Law. A contract is always, referred to the basic foundations of Contract Law, which refers to promises being kept amongst two parties. It is clear that all people make contracts nowadays and do not even consider for a moment that they are forming contracts; these can be formal or informal, oral or written.