...explore the aspects of business contracts and these aspects’ application to business management. Discussion focuses on Internet contracts and international transactions. You conduct a simulation to evaluate contract performance requirements and solutions for if the contract is not upheld Contract Risk and Opportunities OBJECTIVE: Analyze legal issues arising from contract formation, performance, and remedies. Resources: Ch. 9–11, 16, 18, & 20 of Business Law: Legal Environment, Online Commerce, Business Ethics, and International Issues Content • Ch. 9: Nature of Traditional and E-Contracts o Introduction to Nature of Traditional and E-Contracts o Definition of a Contract o Sources of Contract Law o Objective Theory of Contracts o E-Commerce o Classifications of Contracts o Equity • Ch. 10: Agreement o Introduction to Agreement o Agreement o Offer o Special Offers o Termination of an Offer by Act of the Parties o Termination of an Offer by Operation of Law o Acceptance • Ch. 11: Consideration and Promissory Estoppel o Introduction to Consideration and Promissory Estoppel o Gift Promise o Contracts Lacking Consideration o Settlement of Claims o Equity: Promissory Estoppel • Ch. 16: Remedies for Breach of Traditional and E-Contracts o Introduction to Remedies for Breach of Traditional and E-Contracts o Performance and Breach ...
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...CONTRACT LAW 2012/2013 CONTRACT LAW Content: Formation of contract. Vitiating factors. Terms. Privity of contract. Discharge of contractual obligations. Remedies. Limitation of actions. BEA1003/BEA1003A 2 Contract FORMATION OF CONTRACT A contract was defined in the 19th century by Sir Frederick Pollock as “A promise or set of promises which the law will enforce”. The requirements of a valid contract are: 1.Agreement. 2.Consideration. 3.Capacity . 4.Intention to create legal relations. 5.Form. 6.Legality. Sir Frederick Pollock BEA1003/BEA1003A 3 Contract FORMATION OF CONTRACT 1. AGREEMENT There is agreement when one party (“the offeror”) makes an offer which the other party (“the offeree”) accepts. An offer: Is a clear statement of terms on which the offeror intends to be bound. Can be made to a specified person, a group of people or to the general public. Must be communicated before it is effective. Must be distinguished from an invitation to treat. An invitation to treat is where one party holds him/herself out as being ready to receive offers which s/he may then accept or reject. BEA1003/BEA1003A 4 Contract FORMATION OF CONTRACT The following are examples of invitations to treat: Bidding at an auction . The display of goods in a shop window Fisher v Bell (1961) and on a supermarket shelf Pharmaceutical Society of Great Britain Ltd v Boots (1953). Advertisements (including goods/services advertised in emails and on www pages): In...
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...Performance or Acceptance Under Reservation of Rights PART 1. SHORT TITLE, GENERAL CONSTRUCTION AND SUBJECT MATTER 2-102: Scope; Certain Security and Other Transactions Excluded From This Article 2-103: Definitions and Index of Definition 2-104: Definitions of Merchant; Between Merchant 2-105: Definitions of Transferability, Goods, Future Goods, Lot, Commercial Unit 2-106: Definition of Contract, Agreement, Contract for Sale, Sale, Present Sale, Conforming to Contract, Termination, Cancellation 2-107: Goods to Better Severed from Realty: Recording PART 2. FORM, FORMATION AND READJUSTMENT OF CONTRACT 2-201: Formal Requirements; Statute of Frauds 2-202: Final Written Expression: Parol or Extrinsic Evidence 2-204: Formation in General 2-205: Firm Offers 2-206: Offer and Acceptance in Formation of Contract 2-207: Additional Terms in Acceptance or Confirmation 2-208: REFER TO EDITORS NOTE! 2-209: Modification, Rescission and Waiver PART 3. GENERAL OBLIGATION; CONSTRUCTION OF CONTRACT; WARARANTIES; GAP FILLERS 2-301: General Obligations of Parties 2-302: Unconscionable Contract or Clause 2-305: Open Price Term 2-309: Absence of Specific Time Provisions; Notice of Termination 2-310: Open Time for Payment or Running of Credit; Authority to Ship Under Reservation 2-311: Options and Cooperation Respecting Performance 2-312: Warranty of Title and Against Infringement; Buyers Obligation Against Infringement 2-313: Express Warranties by Affirmation, Promise, Description...
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...business and the remedies available. ------------------------------------------------- ------------------------------------------------- D2 leads on from D1 in that the effectiveness of the statutory protection of consumers should be evaluated. Much of this will relate to the validity of contract terms. Consideration is then given to the effectiveness of the remedies. This may include a discussion of potential difficulties of enforcement but does not need to consider the underlying problems of the limits of equitable remedies. Produce a PowerPoint presentation which evaluates the statutory rights given to a consumer in their dealings with a business and the remedies available. You will not be delivering this presentation just creating it. * Give a judgement, based on evidence you have collected for M3, about how well the law protects the consumer and business, including damages and equitable remedies (Give a detailed evaluation of how well the law protects consumers and businesses * Are there sufficient remedies for consumers * Are there sufficient remedies for businesses * Are some better than others? * You need to provide a comparison of the protection given to consumer purchases and business purchases from another business * Compare the different remedies available to consumers and to businesses when there is a breach of contract * Are businesses more protected than consumers and why? (think about contract formation and standard form...
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...Elements of a Contract ETH/321 July 27, 2015 Professor A Contract A contract is defined as an agreement that creates obligations that are enforceable by law. Elements of a contract include mutual assent, consideration, legality and capacity (Legal Information Institute, 2015). Jack has to decide whether to engage an attorney. What would you advise? In this particular case I would advise Jack not to involve an attorney. The elderly lady that he entered into an agreement with is showing signs of early Alzheimers. This in itself would cause concern in a judge’s eyes. A person can only enter into a contract if they have contractual capability which means that they must understand the terms associated with the contract (Business dictionary, 2015). If the elderly lady didn’t have the capacity to fully understand the contract due to her deteriorating condition then it is unlikely that a judge would rule in Jack’s favor. A judge is not able to create an agreement for both parties. This fact being stated, the parties involved have no true agreement surrounding the terms of the contract so it is likely that the contract would be voided. Was there a valid contract when Jack purchased the china for $150.00? Why or why not? Did Jack's superior knowledge prevent formation of a contract? How might the widow's age or possible medical condition affect contract formation? A valid contract did exist during the period of sale and exchange since both parties had come to an agreement on...
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...Business I. The essential elements of a contract and the applicable remedies in the event of a breach. Four Essential Elements of a Contract An agreement must contain four essential elements to be regarded as a contract. If any one of them is missing, the agreement will not be legally binding. a. Offer There must be a definite, clearly stated offer to do something. For example: A quotation by sub-contractor to the main contractor and an offer to lease. An offer does not include ball park estimates, requests for proposals, expressions of interest, or letters of intent. An offer will lapse: * when the time for acceptance expires * if the offer is withdrawn before it is accepted * After a reasonable time in the circumstances (generally the greater the value of the contract, the longer the life of the offer). Invitation to treatAn invitation to treat is a mere declaration of willingness to enter into negotiations; it is not an offer, and cannot be accepted so as to form a binding contract. An agreement is not created if there is an acceptance of the invitation to treat.An invitation to treat is part of the preliminaries of negotiation, whereas an offer is legally binding once accepted, subject to compliance with the terms of the offer. For example: Invitations to treat are advertisements, price lists, circulars and catalogues. | b. Acceptance Only what is offered can be accepted. This means that the offer must be accepted exactly as offered without...
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...* TCO A Contract – an agreement that is enforceable by a court of law or equity. Also, a contract is a promise or a set of promises for the breach of which the law gives a remedy or the performance of which the law in some ways recognizes a duty. Sources of contract law include the Common Law of Contracts (developed primarily by state courts) and the Uniform Commercial Code (UCC) which is a comprehensive statutory scheme that includes laws that cover aspects of commercial transactions. Elements of a Contract: 1. Agreement – between parties, requires an offer and an acceptance, and mutual assent. 2. Consideration – EX: money, personal or real property, provision of services. 3. Contractual Capacity – have to have the ability to enter into the contract – have to be sane. 4. Lawful Object – can’t be an illegal contract, or involve illegal duties/sutf. Two defenses may be raised to the enforcement of contracts: 1. GENUINENESS OF ASSENT – The consent of the parties to create a contract must be genuine. If the consent is obtained by duress, undue influence, or faud, there is no real consent. 2. Writing & Form – certain contracts have to be in writing to be enforceable. Types of Contracts – Summary on pg 161-162 1. Bilateral Contract – an exchange of promises of the parties, “a promise for a promise.” 2. Unilateral Contract – Offer can be accepted only by the performance of the act by the offeree, “a promise for an act.” ...
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...Module Handbook Unit 5: Aspects of Contract and Negligence for Business Unit code: Y/601/0563 QCF level: 4 Credit value: 15 credits Module Tutor: Anila Mushtaq Contact Details: anila.mushtaq@yahoo.co.uk Preferred style of contact: In the first instance, if you have any queries regarding the teaching or assessment for this module, please ask question during the lecture. If you do not receive a satisfactory response then e-mail me with your query for an appointment. Introduction: The aim of this unit is to provide learners with an understanding of aspects of the law of contract and tort and the skill to apply them, particularly in business situations. Unit abstract: The unit introduces the law of contract, with a particular emphasis on the formation and operation of business contracts. Learners are encouraged to explore the content of these agreements and then develop skills relating to the practical application of business contracts, including offer, acceptance, intention, consideration and capacity. Relevant case law examples will be covered. Learners will consider when liability in contract arises, the nature of the obligations on both sides of the contract, and the availability of remedies when a contract is not fulfilled in accordance with its terms. Additionally, the unit will enable learners to understand how the law of tort differs from the law of contract and examine issues of liability in negligence...
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...explaining the essential elements of a contract and the applicable remedies in the event of a breach What is required for a valid offer? How can one accept an offer? What is the concept of consideration and what form(s) can consideration take in creating a contract? What factors must be considered in assessing the legal sufficiency of an offer, acceptance, and consideration in determining whether a contract is enforceable? In the event that a contract is formed and subsequently broken, what remedies are available to the non-breaching party under your state's law? explaining the essential elements of a contract and the applicable remedies in the event of a breach What are the 4 requirements of a valid contract? 1. Agreement 2. Consideration 3. Contractual Capacity 4. Legality What are the 3 elements that are necessary for an offer to be effective? 1. The offeror must have a serious intention to become bound by the offer 2. The terms of the offer must be reasonably certain or definite, so that the parties and the court can ascertain the terms of the contract 3. The offer must be communicated to the offeree What is an offer? a promise or commitment to do or refrain from doing some specified action in the future. What are the 3 exceptions to the consideration requirement? 1. Promises that induce detrimental reliance, under the doctrine of promissory estoppel 2. Promises to pay debts that are barred by a statute of limitations 3. Promises to make charitable...
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...Contract Formation Author: Jason Dorman Business Law Professor Riggs 11-24-2013 A contract must have certain elements to be considered a contract. However, there are also elements that exist that will negate a contract as well. Fraud, undue influence and duress are all elements that will negate a contract. When a contract is breached or negated one party can collect damages or seek equitable remedies. The common law doctrine of election of remedies prevents individuals from taking advantage of the system. These elements are what an individual would not want to deal in any business situation. There are also elements in place to prevent a party from double recovery and this is called the common law doctrine of election of remedies. What we can learn from contracts is that neither side will deceive the other. What is fraud and how does it affect a contract? Fraud is an intentional act by one party to deceive another. “Fraud prevents a mutual agreement to a contract because one party intentionally deceives another as to the nature and the consequences of a contract.” [legal-dictionary.thefreedictionary.com] When each party involved in the contract states their terms. The terms must be factual and any misrepresentation of the truth can void the contract. However, there are situations where an individual’s intentions are to get over on the other party. This is why it is important to read the contract before signing it. What is undue influence? “Undue...
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...Legal Underpinnings of Business Law BUS 670 Legal Underpinnings of Business Law Breach of contract is when a business contract creates an obligation that is to be full filled by people or companies that enter into an agreement. By law a party’s failure to complete the bargain which is under contract is known as a breach of contract. With regard to the specifics of the contract a breach can happen when a party fails to perform on time or does not perform at all according to the terms of the agreement. Breach of contract is categorized as material or immaterial to determine the appropriate legal solution or remedy for the breach (Retures 2012). Compensatory damages put the non-breaching party in the position that they had been if the breach had not happened. Punitive damages are payments that the breaching parties have to pay. Above and beyond the point that would fully compensate the non –breaching party. Punitive damages are meant to punish a wrongful party for a wrongful act and is rarely is used for business contract settling. Specific performance is used when damages are inadequate as a legal remedy. The non – breaching party may seek an alternative remedy which is specific performance. Specific performance is known for describing as the breaching party court ordered performance of duty under the contract. Specific performance might be used as a remedy for breach of contract if the matter is rare or unique. Damages would not suffice to place the non-breaching party...
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...basis in many businesses. The next primer you will prepare for your department's training series will acclimate your colleagues to the world of contracts. Prepare a 2–3-page, double-spaced document explaining the essential elements of a contract and the applicable remedies in the event of a breach. What is required for a valid offer? How can one accept an offer? What is the concept of consideration and what form(s) can consideration take in creating a contract? What factors must be considered in assessing the legal sufficiency of an offer, acceptance, and consideration in determining whether a contract is enforceable? In the event that a contract is formed and subsequently broken, what remedies are available to the non-breaching party under your state's law? Business plans are met through voluntary agreements amongst others. These voluntary agreements are also known as contracts. A contract focuses on holding a promise that is directed towards the future. Business cannot be successful unless people fulfill their promises. There also needs to be a system of punishment to those who break their promises. Making all contracts more of an obligation to complete, which allows business to continue today. Forming a contract involves a person, known as the offeror, who offers a promise to another person or party, known as the offeree. A contract could focus on a number of things, but whatever the subject, the main focus is in future performance. The science of management would fail...
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...* Chapter 20: The Formation of Sales and Lease Contracts - When we turn to contracts for the sale and lease of goods we move away from common law and into the area of statutory law. - UCC article 2: on sales, 2A: on leases - The goal of the UCC is to simplify and streamline commercial transactions, allowing parties to form contracts without observing the same degree of formality used in other types of contracts by making laws governing sales and lease contracts clearer, simpler and more readily applicable to the difficulties that can arise during such transactions. The Uniform Commercial Code (1949) Comprehensive Coverage of the UCC UCC: single most comprehensive codification of laws involved in total commercial transaction Views commercial transaction for sale and payment of goods as a whole Article 1: General Provisions Definitions and general principles applicable to commercial transactions, including an obligation to perform in “good faith” all contracts un the UCC Provides basic groundwork for the remaining articles A Single, Integrated Framework for Commercial Transactions UCC attempts to provide a consistent and integrated framework of rules to deal with all phases ordinarily arising in a commercial transaction Many sections from the different articles can apply to a single transaction Periodic Revisions of the UCC To clarify certain rules or establish new rules when changes in business customs have rendered existing UCC provisions inapplicable ...
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...Contract Creation and Management Assignment Paper George Van Hoosier LAW 531 June 26, 2012 Dr. Beverly Spencer Contract Creation and Management The scenario presented is on contractual conflicts. In summary, a software development company and a hotel company entered into a business partnership to develop an electronic reservation system for the hotel company. The groundwork of the plan changed and obfuscated what was expected by both parties. These changes were not communicated well enough, both internally and externally, to accommodate these changes (University of Phoenix, 2002). This case presented how a contract between parties was prepared, but what was required was not clear to either party. To further complicate matters, as the project requirements became clearer, no contract revision occurred to discuss how the expanding requirements could be negotiated. The increasing requirements and scope of work meant the original resources assigned to the project were rapidly becoming insufficient. Project delays and poor quality products were the result. Instead of addressing the changes and the need to revisit and negotiate the changing requirements, and additional compensation, the two parties filed suits and counter suits against each other (Cheeseman, chapter 16, 2010). The scenario points out how devastating the resultant legal costs were to both parties, and how the end result was a failed project that could have been resolved with less contract ambiguities...
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...David’s Case In advising if a legally enforceable contract exists between Sam and David, I would first consider the requirements of forming a valid contract. Formation of a valid contract requires six pre-requisites all of which must exist in order for a valid contract to exist. Intention to Create Legal Relations From an objective perspective it can be seen that a reasonable person in Sam’s position would not have had the intention to create legal relations with David. Although this may have been undertaken as a business transaction during the initial contact, it was a social and private arrangement at the time the offer was made. It is also a legal presumption that agreements made in a social environment are not be legally binding[1]. The case of Dietrich v Dare (1980) 54 ALJR 388[2], further illustrates this presumption, where no intentions of a legally binding agreement could be determined. Agreement- Offer and Acceptance “An offer is an undertaking by the offeror made with the intention that it will bind the offeror as soon as it is accepted by the offeree”[3] It can be seen here that Sam had made the offer to David at the end of the phone conversation. The offer met the required rules as set out in Latimer[4] such as the offer being communicated directly to David as well as being made obvious that it was an offer and not an invitation to treat. David had then accepted the offer the following week when he rang Sam to organise the internet connection. The...
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