...collateral contract was made. A collateral contract is the consideration which leads to the making of the main contract. It is a contract separated from the main contract but related to it. Yvonne’s promise to fit high quality tyres on the car is a term of contract because this promise leads to Marcel entering into the main contract with Yvonne. Thus, a collateral contract was made in order for Marcel and Yvonne to enter a contract with each other. Another issue is that whether the contract is fully written, fully oral or partly of both. Before the contract was made, Yvonne promised Marcel that she would fit high quality tyres for the car if Marcel buys the car from her. Her promise to Marcel is oral and considered as a term in the agreement. This contract between Marcel and Yvonne is partly written (the car) and partly oral (the promise for High quality tyres). Parol evidence Rule states that when there is a written contract, any oral evidence would not vary and would not be included into the contract. But there are exceptions that have been allowed by the courts. The third exception of parol evidence rule states that if the written agreement does not contain all of the terms agreed by the parties, verbal evidence of other (oral) terms might be allowed. In Van Den Esschert v Chappell case, the court held that Van Den Esschert promise was part of the contract, thus he had to pay for damages. This is because the promise (orally) was made just before entering to the contract, limiting...
Words: 1944 - Pages: 8
...Exclusion And Limiting Clauses INTRODUCTION A clause may be inserted into a contract which aims to exclude or limit one party's liability for breach of contract or negligence. However, the party may only rely on such a clause if (a) it has been incorporated into the contract, and if, (b) as a matter of interpretation, it extends to the loss in question. Its validity will then be tested under (c) the Unfair Contract Terms Act 1977 and (d) the Unfair Terms in Consumer Contracts Regulations 1999. A. INCORPORATION The person wishing to rely on the exclusion clause must show that it formed part of the contract. An exclusion clause can be incorporated in the contract by signature, by notice, or by a course of dealing. 1. SIGNED DOCUMENTS If the plaintiff signs a document having contractual effect containing an exclusion clause, it will automatically form part of the contract, and he is bound by its terms. This is so even if he has not read the document and regardless of whether he understands it or not. See: Struggling with your Law studies? We can help! Have a look at our huge range of products and services that may be useful when planning your next law assignment or essay. Law Essay Writing Service Essay Marking Service Our Guarantees Our quality promise Freelance Writing Jobs Place an Order L'Estrange v Graucob [1934] 2 KB 394. However, even a signed document can be rendered wholly or partly ineffective if the other party has made a misrepresentation as...
Words: 2419 - Pages: 10
...loan account. After researching the topic extensively, we came to the conclusion that although the contract may be one-sided and possibly even unethical, it is legal and enforceable. From the viewpoint of the buyer (or leasee, since this is sort of like a lease-to-own contract) this is a relatively good deal because it allows buyers with poor credit, such as mine at the time, to go ahead and buy a home then work on repairing their credit while they live in it. The downsides to this contract are that the buyer has little or no access to the account information. They cannot speak with the bank about the account, and cannot access it online without assistance from the mortgage holder. While they are paying on the mortgage, they are paying off the balance but the equity they are building belongs to the mortgage holder and there is no guarantee they will ever get it back, even in part. From the viewpoint of the homeowner, they get an increased opportunity to sell their home in a difficult market. However they have the additional responsibility of keeping tabs on the mortgage, which will remain in their name until the new buyers refinance. The situation is not ideal for either party, and in our case and I suspect many other both parties are looking to move immediately. In this situation, the homeowner and real estate agent have found a way around the traditional lease-to-own contract that allows them to keep complete control of the mortgage until the renter (myself and my wife) are...
Words: 1616 - Pages: 7
...Singapore Management University AY 2013-14 Term 2 Final Examination Date / Start Time | 21 Apr 2014 / 8.30am | Course | LGST 101 – Business Law | Group | G7 | Instructor | Assoc Prof Low Kee Yang | INSTRUCTIONS TO CANDIDATES 1 The time allocated for this examination paper is 2 hours, of which the first 15 minutes is reading time. Do not write on the answer booklet during reading time. 2 This examination paper has 1 question and comprises 2 pages, including this instruction sheet. All the best. : ) In November 2013, Cindy, a relatively unknown actress in the Singapore film scene, signed a contract to act in a movie produced by Daniel. Filming began in December 2013 and by mid-February 2014, more than $200,000 had been incurred on expenses, including costumes, marketing and shooting. On 15 February 2014, Cindy was ecstatic when she learnt that she has an Oscar nomination for best supporting actress in the category of foreign films for her role in a recent Singapore movie. She then decided that Daniel’s movie might negatively impact her future Hollywood career (as she was cast in Daniel’s movie as a stereotype) and informed Daniel that she would not be acting in his movie anymore. Daniel replied angrily that she will hear from his lawyers. On 22 February, Cindy contracted with Andy to play a lead role in his upcoming movie “The Noble Dragon”, which was scheduled to be released in September this year...
Words: 1072 - Pages: 5
...Business Law Assignment Introduction to Business Law Sachini Tharaka Talpe Liyanage Student number: 18532068 La Trobe university (Dandenong) Question 1 I. In this scenario, the issue is whether the advertisement on the notice board constitutes an offer or only an invitation to treat. An advertisement can either be an offer or an invitation to treat and it is based on intention of the parties. Vladimir’s shopping complex Managing Agent was just inviting people with the notice on his behalf. He only lease limited number of shops, as in the notice says “Shop available for sale” and he could not reasonably intend to be bound to lease to all those who might accept it. Therefore no promise existed and it is considered an invitation to treat as in the case Partridge v Crittenden [1968]¹. Although the wording in Vladimir’s advertisement is different to the Partridge’s case, it is suggest that the result is same in the both cases. In saying that “Shop available for sale”, Vladimir did not show a will or intention to be bound in a contract. An offer is made when one party makes it clear by verbally, written or by actions and it is quite different to the invitation to treat, though it is not easy to distinguish between two. This is as in the case of Carlill v Carbolic Smoke Ball Company [1892]², the court of appeal argued that the advertisement in this case is not an invitation to treat but an offer. Another case that is related with invitation to treat is the Pharmaceutical...
Words: 1454 - Pages: 6
...temperature, which is below zero degrees Celsius. The issue here is whether there is a breach of warranty or a condition. In accordance with the section 12(2) of SALE OF GOODS ACT 1957, a condition is a stipulation essential to the main purpose of the contract, the breach of which gives rise to a right to treat the contract as repudiated. The supportive case is Poussard v Spiers (1876), where it was held that it was a breach of condition, because Madame Poussard (defendant) was not able to perform the conditions because she was ill and Spiers (plaintiff) were entitled to end the contract (E-lawresources.co.uk, 2015). The main distinction between condition and warranty is a breach of condition will be considered as the breach of the whole contract, thereby a breach of warranty will be claimed only for damages. In the given case, there is not a breach of condition, because the unable of the freezer to retain the law temperature cannot be considered as a breach of the whole contract. According to the section12(3) of SALE OF GOODS ACT 1957, a warranty is a stipulation collateral to the main purpose of the contract, the breach of which gives rise to a claim for damages but not to a right to reject the goods and treat the contract as repudiated. In the case of Associated Metal Smelters Ltd V Tham Cheow Toh (1971), where the plaintiff sued for damages, the court held that they were allowed to treat the breach of conditions as a breach of warranty as sue for damages (Lawteacher...
Words: 524 - Pages: 3
...Ratification: an agent secures a contract on behalf of the principle and the principle agrees to it. Buy custom Law of Agency: Amber and Ashgan Case Study Analysis essay The law of agency applies to both the two individuals in the case given that they possess an agent-principal type of relationship. Thus, the law of agency between the two is narrowed-down to the duties of the agent in respect to their respective principals. It should be noted Ashgan, the personal assistant, is the agent while Amber, who happens to be the employer, is her immediate Principal, The first duty of Ashgan, as an agent, is not to become the principal as against her employer’s or principal’s knowledge. This duty, on the part of the agent, is meant to prevent her from situations in which there will be possible conflict of interest between her duty as an agent and her personal interest. Notwithstanding, a breach against this course of duty renders the contract, entered into by the agent, as voidable at the desire of the true principal. For this case, the contract to purchase the limited edition, sliver Bays-water Tote handbag created the aforementioned type of conflict and thus, it was Amber to decide whether or not the contract was voidable. Second, the agent has a duty not to engage in business activities and hence making secret profits. It should be noted that secret profits is a phrase taken to mean any form of material or financial benefit that may be accrued on the part of the agent without...
Words: 1089 - Pages: 5
...CPA LAW EXAM1—Essay questions 1. David cannot sue A1 for breach of contract for the loss of his commission due to A1’s math error in the audit. By entering into a contract, an account implicitly agrees to perform the contract in a competent and professional manner. They need not ensure the absolute accuracy of their work, but they must exercise the care of a reasonably skilled professional. Only the math error cannot make A1 liable. However, if she breaches the contract because she didn’t finish her job on time as the contract indicating ”time of essence”, she is liable to Bob and the third-party beneficiary—Bank. 2. Bob cannot refuse to pay A1 anything. A1 can get the reasonable value on quasi contract. A1’s failure to perform a promise promptly is a material breach if time is of the essence. In this case, A1 cannot accomplish her work on time, then there is a breach of the contract. This breach of contract discharges Bob from any further duty under the contract. However, A1 could go into quasi-contracts. Because A1 confers a benefit upon Bob—render him the audit services, Bob knows the benefit, and the retention of the benefit is inequitable. So A1 could recover the reasonable value of the service she rendered to Bob. 3. The sales agreement cannot be successfully enforced against A1. Fraud in execution, which consists of a misrepresentation that deceives the defrauded person do not know, or does not have reasonable opportunity to know the very nature of the proposed...
Words: 377 - Pages: 2
...library whenever she gets bored. Therefore, Teri decides to sell her home. She lists her home in an ad and receives an offer from Jack to buy her home for $300,000. Teri accepts the offer and they sign a contract to that effect. After the contract is signed, however, Teri learns of a Boston municipal rule that all firefighters must live within the Boston city limits. Since Cambridge is outside Boston, Teri decides that she can't move after all. She calls Jack and tells him that Jack will have to look for another house because Teri is not moving. Jack sues Teri in municipal court in Boston. He asks the judge for specific performance; i.e. to force Teri to sell him the house in accordance with the original deal. Teri argues that, although specific performance is usually appropriate in land sale contract cases, the judge has the discretion to deny specific performance. Teri argues that the unique facts of her case; i.e., that she can't move because of the Boston residence for firefighters rule, allow the judge to deny specific performance on this case. You are a law clerk in the municipal court in which the case is taking place. Please write an essay explaining whether or not the judge can deny specific performance to Jack in this case. Please use Massachusetts case law to the extent possible. To: Ellis Washington, Esq. FROM: Jun Min RE: Demand for Specific performance in real estate transaction dispute between Teri and Jack DATE:...
Words: 734 - Pages: 3
...CONFIDENTIAL ALD 2013 / JULY-NOVEMBER 2010 SECTION A (20 marks) Multiple choices 1. Maniam who is 20 years old, was fully drunk when he agreed to sell his 2008 model Perdana to Sim for RM15, 000.00. Maniam can rescind the contract because A. he is illiterate B. terms of the contract are uncertain C. he was confused. D. he was of unsound mind 2. A house is put on auction by James a licensed auctioneer. The reserve price has been fixed at RM95, 000.00. Under the law of contract, James is making A. an offer B. an acceptance C. an invitation to treat D. a special offer 3. When the seller is in breach of the Contract of Sale, a number of remedies are available to the buyer. The following are the remedies EXCEPTA Damages for non-delivery of goods B Specific performance C Breach of warranty D Arrest warrant 4. The law on negotiable instruments in Malaysia is covered by the A. Hire Purchase Act 1967 B. Civil Law Act 1956 C. Employment Act 1955 D. Bills of Exchange Act 1949 1 CONFIDENTIAL ALD 2013 / JULY-NOVEMBER 2010 5. Bob sold his diamond ring worth RM10, 000.00 to Ali for RM100.00. There is a contract between them. This is an issue under: A. certainty of terms B. inadequacy of consideration C. capacity of contract D. intention to create legal relations 6. The purpose of crossing a cheque is A. to give a cheque more value B. to signify to the bank that it is a special cheque C. to prevent fraud D. to make a cheque...
Words: 1190 - Pages: 5
...Essay Title: “Factors that affect free consent in a contractual agreement under the Contract Act 1950”. 1. Coercion. Since a contract will only be binding if the parties voluntarily consent to it, it is obvious that where one party is forced to consent by threats or undue persuasion by the other, that consent should be invalid.One form of such threats is ‘coercion’ and has been defined in section 15 of the Contracts Act for the purposes of section 14 (as discussed in para 2.1) which, among others, require ‘free consent’ of contracting parties. The latter section goes on to provide that consent is free when it is not caused by ‘coercion’ as defined by section 15, or others such as ‘undue influence, fraud, misrepresentation and mistake’. The relevant part of section 15 reads as follows: “ ‘Coercion’ is the committing, or threatening to commit any act forbidden by the Penal Code, or the unlawful detaining or threatening to detain, any property, to the prejudice of any person whatever, with the intention of causing any person to enter into an agreement.”Lord Moulton in Kanhaya Lal v. National Bank of India Ltd, an appeal to the Privy Council from India on a provision in pari materia with the local Act, opined that the definition of ‘coercion’ was solely a definition which applied ‘to the consideration whether there has been ‘free consent’ to an agreement so as to render it a contract’. This means that the definition of ‘coercion’ under section 15 applies solely to the consideration...
Words: 2844 - Pages: 12
...Critique This essay is poorly written in that it fails to use correct legal terminology. Instead, it uses casual slang that is unacceptable in todays court system. The citations are not formatted correctly nor are they used in an appropriate fashion. They were neither explained nor applied in depth to the case at hand. The citations were also not analyzed nor were the judgments discussed. Essay The plaintiff purchased a baseball bat from the defendant. A baseball bat is designed to hit baseballs at excessive speeds, so an implied warranty would be included in the purchase. However, the baseball bat itself was faulty in it's design and shattered as soon as the plaintiff attempted to use it. Its inherent defect violates the implied warranty of merchantability under the Universal Commercial Code (U.C.C.). We turn to Dudzik v. Klein's All Sports, 158 Misc. 2d 72 (1993) in this case for reference. In Dudzik, the plaintiffs purchased a bat manufactured with a specialized graphite carbon. This bat was being marketed as being an unbreakable bat that could hit the ball farther than a normal bat. The longer distance was not disputed in this case. The first bat bought from the defendant developed internal cracks due to a manufacturer defect. This bat was returned in exchange for another bat of the same make and model in accordance to the return policy posted at the store. The second bat also developed internal cracks and was rendered useless for its' intent and was again brought back to...
Words: 1101 - Pages: 5
...be add to or any outside evidence which can change written contract. In other words, if there is a written contract between two parties, they can’t give verbal evidence to add extra words to the agreement in any way or to modify the meaning. However, there are ways of exception to the rule that can be allowed by the court. Collateral contract can be argue as one of the exception to the parol evidence rule. This is an argument of a separate contract. The purpose of this essay is to explain about the legal rule which is parol evidence rule and the exception to the rule. Body Description of Parol Evidence Rule Parol evidence rule exist because is to prevent fraud and uncertainty of the contract. The written contract can never be add in or change the terms in it unless it is not clear. This rule only can be allowed when the written contract is incomplete, ambiguous, writing is not a true statement of the agreement of the parties, accident or mistake, and when the existence, subsequent modification or illegally of the contract is hanging. When the written contract is obviously incomplete or the parties themselves admit it is incomplete, therefore the court can allow evidence like oral as what has been agreed to along with the written contract earlier. In this case, there are exceptions of the rules that court must allowed. First Exception to Parol Evidence Rule and Relevant Case The first exception is the contract is partly written partly oral. This exception can only comes...
Words: 2286 - Pages: 10
...Introduction This essay is to discuss the nature and confusions with Parol Evidence Rule. To do this, the rule will be described and be reviewed with a brief history. Debates will be given after, in order to project its application and suitable situations to be influential. Nevertheless, exceptions, where the rule does not have such influence and cannot be applicable will be argued after. Finally, its application in prevention of further objections for contracts will construct the final deliberation. Ultimately the discussion will be concluded as a brief review to what has been done. Debate Parol Evidence Rule (PER) is a consideration of substantive common law that applies to contracts and eliminates parties to encounter any previous parol and oral evidences, with respect to their written total agreement (Corbin, 1944 and Blum, P: 2007, 348). According to Lawrence (1991) the history of the addressed rule travels to when agreements were made credible by written stamped latters, due to the impact of mystical and formal combination; where such formal evidences are nowadays a considerable factor for many courts to conclude justice. The rule was primarily established in 17th century English common law and has since been distributed among the other regions’ system of justice (Beveridge, 2000). Contract parties usually approach a set of common agreements after their interests are deliberately criticized and defended (Alces, 2005). A construction contract can be observed as an example...
Words: 2118 - Pages: 9
...Written Assignment 4 Case Study A dealer sold a new car to Raymond Smith. The sales contract contained language expressly disclaiming liability for personal injuries caused as a result of defects in the car and limiting the remedy for breach of warranty to repair or replacement of the defective part. One month after purchasing the auto, Smith was seriously injured when the car veered off the road and into a ditch as a result of a defect in the steering mechanism of the car. * If Smith sues the dealer for breach of warranty and the dealer defends by relying on the contract disclaimer, what would be the result and why? * In your essay, be sure to cite information on warranty and UCC Article 2. For buyers who have returned a product that simply didn’t work, they have benefited from the implied warrant of merchantability. This warranty guarantees that a product sold by a merchant will work when it’s used for its intended purposes. That is what’s called an “implied warranty” meaning it exists without a need to be written or spoken. A commercial seller does not have to tell a buyer that the product is guaranteed to work for its usual purpose because the law itself creates that warranty. The Implied Warranty of Merchantability falls under the Uniform Commercial Code (UCC) 2-314. The warranty is based off the idea that the seller should know whether a product will perform properly or not and encourages sellers to focus on quality assurance before putting products on the...
Words: 399 - Pages: 2
