...moved into a contract of sale as circumscribe in section 2 (1) SGA, which says that a contract of sale of commodities is a contract by which the dealer agree to hand over the possession of goods to the customer for payment in money, termed as the price. Notwithstanding the conditions of the contract have been fabricated in order to pass over the indispensable rights of the individuals of this contract. The conditions of the contract mention the specific responsibilities and commitment of each individual to the contract. We must seem at the implied terms of this contract in order to incline to the considered objectives of the contracting individuals by way of affirming the demonstrated terms and creating a causal link to those that are not boldly demonstrated In directing the tacit terms for the protection of the people that are to be are established and thus gives rise to any reparation that may be provided by these specifications. 2. THE TWO METHOD BY WHICH CERTAIN TERMS OF A CONTRACT ARE IMPLIED There are two methods by which terms are implied in a contract. By custom, the court and by statute. Normally the terms that has been implied by a custom or the trade usage explain those terms in a conventional way as those circumstances are the common situation within the business context. For instance a case, Mr Deborah buys a car from a well reputed showroom car and so it is expected that the car has to be adequate for its function. This genre of implied terms normally acts...
Words: 1932 - Pages: 8
...Terms and Exemption Clauses 1) Parol Evidence 2) Terms and Representation 3) Implied Terms a) In Fact b) In Law c) In Statute d) By Custom 4) Classification of Terms 5) Exemption Clauses: Incorporation a) By Signature b) By Notice c) By Previous Course of Dealing 6) Construction a) Contra Proferentem Rule b) Rule in Cases of Negligence Liability c) Doctrine of Fundamental Breach 7) Unfair Contract Terms Act (UCTA) a) Liability in Negligence b) Liability in Contract c) Sale and Supply of Goods d) Test of Reasonableness Parol Evidence Rule a) No extrinsic evidence (such as any oral agreement or statement) is admissible to add to, vary or contradict a written instrument or contract. b) Exceptions c) Contract was the result of mistake, a lack of consideration, or of misrepresentation d) Mistake in the written contract i) Joscelyne v Nissen (1970) e) Contract has not yet come into existence or that it is no longer in operation i) Maybe due to the occurrence or non-occurrence of a certain event by a certain date, which has been accepted verbally ii) Pym v Campbell (1856) iii) Obligation to buy shares in an invention was conditional upon a 3rd party approving the invention, of which the approval had not been received. f) Where extrinsic evidence demonstrates that a particular custom of trade must be implied to, and therefore become a part of, the written agreement...
Words: 6952 - Pages: 28
...LAW204 - CONTRACTS Week 5 – Express Terms ___________ ** N.B. The main cases covered in lectures, containing MAIN RULES are highlighted in YELLOW! READINGS/LECTURE CHAPTER 10 – EXPRESS TERMS Introduction – Contents of a Contract? * Express Terms: contain contractual promise and terms that are capable of being Incorporation by pre-contractual statement: * Courts look at what the parties said * Have these statements become express terms? Statements the court acknowledges: * Irrelevant statements and Puffs: * Sales talk, exaggerations e.g. best on the market! * No reasonable person is supposed to take it seriously * No affect on contract, not actionable * Representations: * Factual statements which are intended to and do induce the representee to enter the contract not made to be binding * Merely representational/description with no promissory intent – truth not guaranteed by their marker * LACK ANY CONTRACTUAL FORCE * False representations may constitute a misrepresentation innocent party may be able to rescind the contract, or attract remedies under statue (misleading and deceptive conduct) * Legal action is limited to actions in negligence or fraud (deliberately lied to you) or misleading or deceptive conduct under s18 of Australian Consumer Law * Terms: * Contractual undertakings intended to be binding – not merely representational ...
Words: 6658 - Pages: 27
...to the incorporation of terms of these contracts. With such ambiguity within the ETA , this can create problems for parties entering into a contract of an electronic nature. This problem extends further to the judicial system, with no clear legislative materials to facilitate courts in the interpretation of how terms are to be incorporated into a contract. Two common methods of contract term incorporation will be discussed further in both an electronic and non-electronic context. These are incorporation of terms by signature; and incorporation of terms by notice. Incorporation of terms by signature Contracts that require a signature for validity will, under common law (for at least traditional written contracts), assume that the signing party has read and agreed to all terms that are stated within the contract, regardless of whether the parties have in fact read the contract terms. This reasoning was established in the English case of L'Estrange v Graucob The High Court of Australia accepted L’Estrange v Graucob (L’Estrange) as good law in Australia in the case of Toll (FGCT) Pty Limited v Alphapharm Pty Limited (Toll). Macdonald argues that if signatures were to be recognised as sufficient in the incorporation contract terms for online contracts, Toll and L’Estrange, would be recognised as the applicable law for these online contracts, despite the clear distinguishing features between traditional contracts and online contracts. McCullagh, Little...
Words: 1898 - Pages: 8
...Contracts 613 MIDTERM EXAMINATION Contracts 613 Issue: Valid Contract Betty v. Art Formation For there to be a contract, there must be an offer, acceptance and consideration. Offer An offer the present outward manifestation of intent to be bound by contractual agreement requiring definite and certain terms and is communicated to the offeree. When Betty asked Art on what terms he would build a barn on her property was a present outward manifestation. Here Art responded that he had never built a barn for hire, he would charge $100 per square foot about $10 more than expected cost was intent to be bound by contractual agreement. When Art told Betty that he could build a 50 x 50 barn Betty said, "OK, if you guarantee January 1, 2005 completion” by her own words that she wanted to be bound by contractual agreement, Art agreed to the contract. Hence, it would be deemed that this present outward manifestation, because in the parties own words indicates their intent to be bound by contractual agreement for the build of Betty barn. Art will counter that their agreement was nothing more than a preliminary negotiations because the price increase there was a new agreement Betty’s initial inquiry was for $100 per square due to the increase in lumber he had to increase the price by $30 per square feet. Further, he had contracted to sale his farm and would not be able to build the barn. However, since one barn would build (quantity), 50’ by 50’ (size), to be ...
Words: 2868 - Pages: 12
...Billings on Construction XXX To record collections: Cash XXX Accounts Receivable XXX To Record Revenue, GP, Completion, and expense: To Recognize Revenue and GP (dr.) Construction in Process (GP) XXXX Construction Expenses XXXX (cr.) Revenue – LT Contracts XXXXX Record Completion of Contract: (dr.) Billings on Construction in Progress (FULL BILLING AMT) (cr) Construction in Process (FULL CIP AMOUNT) Balance Sheet Reporting: CIP & Rec. Profit > Billings = Current Asset Billings > CIP & Rec. Profit = Current Liability ------------------------------------------------- Completed Contract Method Billings on Construction in Process XXXXXX Revenue – LT Contracts XXXXX Costs of Construction XXXXXX Construction in Process XXXXXX ------------------------------------------------- Losses on LT Contracts 1. Loss in current period – contract still profitable JE: (dr.) Consruction Expenses XXXXXX (cr.) Construction in Process (loss) XXXX (cr.) Revenue – LT contracts XXXX 2. Loss on an Unprofitable Contract – always recognize loss immediately. JE: (dr.) Consruction Expenses XXXXXX (cr.) Construction in...
Words: 277 - Pages: 2
...SML770 Make or Sub-contract Problem SML770 Financial Management Term Project M/s Good Machining Co. Make or Sub-contract Dated: 21st April 2008 Team Members: Name Arvind Kundalia Rahul Jain Sanjeev Thukral Entry No. 2007SMN7096 2007SMN7088 2007SMN7050 Mobile Phone 9910900355 9818031983 9818151991 Email ar_kundalia@yahoo.co.in Rahuljain_k@yahoo.com Sanjeev.thukral@xansa.com Project Mentor: Prof. P.K. Jain Page 1 of 4 SML770 Make or Sub-contract Problem Problem Statement M/s Good Machining Co. New Delhi, manufactures almost 15 different components for industrial equipments with a sales turnover of over Rs. 1 Crore per annum. Recent recessionary trends in the industry had adversely affected the volume of business and profitability of the Company. A major portion of their business is in supplying machined parts to equipment manufacturers. Good Machining had no foundry of its own but bought casting from the vendors. The Company employed 60 persons of whom 15 were in the machining department. Even though business was slack due to recession, the management did not want to layoff the skilled labour. The reduction in the volume and profitability had led the management to examine in details the profitability of their products. Two standard parts A & B caused particular concern to the management. The forecasted demand for these parts has gone down to only 450 and 220 per month respectively for the coming 1 year. This is substantially lower than normal demand...
Words: 1156 - Pages: 5
...conducted mainly direct as face to face or oral, but not through the signing of a written contract between businesses and partners. So, in some written contract have mistaken, that the firm should be noted and fixed to avoid unnecessary litigation in process cooperation with others organization. Examples, 2 written contract: No. DFG14140131, which was signed in 02/05/2014 about the company sale 52.084 kg Robusta coffee for Atlantic Vietnam foods, Ltd. and No. 131/04 HDMB about DakMan Vietnam, Ltd. buy 30 tons Robusta coffee of the firms that was signed in 12/04/2014. To help the manager of company understand more the contract in the business, I will introduce types of contracts, and essential elements of contract in UK law them analysis the two contracts were mistaken to she can realize problems and give the solution appropriate to resolve issues. II. The contracts. 1. Definition the contracts. The contracts is the agreement between two or more parties include one parties offer and one parties acceptances about anything and it is bound by the law ( Linda William. 2004 – 2009). Example, I offer selling my cell phone with brand is Nokia Lumina 520 with price is 1.500.000 VND and my friend is Hoang Anh accept buy this cell phone, at that time the contract buyingselling the cell phone between me and Hoang Anh was established. 2. Types of contracts and the impact of them. There are three kinds of contracts in UK law; they are face to face, written...
Words: 4982 - Pages: 20
...Cover Sheet Qualification | Unit Number and Title | Pearson BTEC Level 5 HND Diploma Business (Accounting) | Unit 5: Aspects of Contract and Negligence for BusinessUnit Code: Y/601/0563Credit Value: 15 Credits | Student Name | Assessor Name | Mukaram Khan Swati | Salman Haider | Date Issued | Completion Date | Submitted On | Validity | 7th October,2013 | 4th November,2013 | | 1st Oct, 2013-31st Jan,2013 | Assignment Title | Contract and Negligence | Assignment Number | 05AOCANFB- Y/601/0563-13 PKISL7002 | Hand In Policy You must complete this assignment on time. If u experience difficulties, you must inform your tutor accordingly. Late Work Policy Consideration will be given to students who have valid reasons for late submission (eg, Illness) Plagiarism In case of plagiarism, college regulations will be applied. You must declare that this assessment is your own work by signing the following statement: Learner Declaration | I certify that the work submitted for this assignment is my own and research sources are fully acknowledged.Student Signature: Date: | Table of Contents Acknowledgement 6 Research Method 7 Aims and Objectives 8 Literature Review 9 Abbreviation List 10 Introduction 11 Task 1 12 Essential Elements of a Contract 12 1. Offer and Acceptance 12 2. Lawful Consideration 12 3. Intention to Create Legal Relationship 12 4. Capacity of Parties...
Words: 5420 - Pages: 22
...search-advanced-form-portlet 1 of 7 https://www.lawnet.sg/lawnet/group/lawnet/legal-research/advanced-se... UNFAIR CONTRACT TERMS ACT (CHAPTER 396) (Original Enactment: U.K. 1977, c. 50) REVISED EDITION 1994 (20th May 1994) An Act to impose further limits on the extent to which civil liability for breach of contract, or for negligence or other breach of duty, can be avoided by means of contract terms and otherwise. [12th November 1993 *] * Date when this Act was made applicable by the Application of English Law Act (Cap. 7A). PART I Introductory Scope of this Part 1. —(1) For the purposes of this Part, “negligence” means the breach — ( a) of any obligation, arising from the express or implied terms of a contract, to take reasonable care or exercise reasonable skill in the performance of the contract; or ( b) of any common law duty to take reasonable care or exercise reasonable skill (but not any stricter duty) (2) This Part is subject to Part III; and in relation to contracts, the operation of sections 2 to 4 and 7 is subject to the exceptions made by the First Schedule. (3) In the case of both contract and tort, sections 2 to 7 apply (except where the contrary is stated in section 6(4)) only to business liability, that is liability for breach of obligations or duties arising from things done or to be done by a person in the course of a business (whether his own business or another’s), and references to liability are to be read accordingly...
Words: 3736 - Pages: 15
...Emiliya Mihaylova TASK 1 TASK1.1 Describe the essential elements of a contract. Should a contract have all those elements to be legally enforceable ? What will happen if one of the elements was missing in an otherwise valid contract? Legal Elements of a Contract The essential elements necessary to form a binding contract are usually described as: • An Offer • An Acceptance in strict compliance with the terms of the offer • Legal Purpose/Objective • Mutuality of Obligation – also known as the “meeting of the minds” • Consideration • Competent Parties Offer An offer is defined as the manifestation of the willingness to enter into a bargain so made as to justify another person in understanding that his assent to the bargain is invited and will conclude it. Acceptance Acceptance of an offer can occur in several ways: Acceptance of an offer is a manifestation of assent to the terms There of made by the offer in a manner invited or required by the offer. An acceptance must not change the terms of an offer. If it does, the offer is rejected. A material change in a proposed contract constitutes a counteroffer, which must be accepted by the other party. Legal Purpose The objective of the contract must be for a legal purpose. For example, a contract for illegal distribution of drugs is not a binding contract because the purpose for which it exists is not legal. Mutuality of Obligation This element is also known as the meeting of the minds. Mutuality...
Words: 913 - Pages: 4
...ACNB SHARON MALCOLM A4078694 RAKHI ASPECTS OF CONTRACT AND NEGLIGENCE FOR BUSINESS 1.1 Issue: Were all the elements of a contract in place between Primark Direct and Presec Presetters? Rule: All the elements of a contract have to be in place for a contract to be valid. There are four essential elements to a contract which are: offer, acceptance, consideration and intention as i will explained below. Offer A person that makes an offer is called the offeror. The person whom the offer made is made to be called the offeree. (664 hand handbook) Essential reading Mckendrick chapeter 3 on offer and acceptance states that An offer is an expression of willingness to contract on certain terms. It must be made With the intention that it will become binding upon acceptance. There must be no Further negotiations or discussions required. Offers can be offered to the public and when acted upon the offer is accepted. A good example of an offer is the Essential reading McKendrick, Chapter 3: ‘Offer and acceptance’ – Section 3.1 ‘Offer and invitation to treat’ to Section 3.7 ‘Acceptance’ page (15 miss notes) hnd book 664 Carlill v Carbolic Smoke Ball co (1893) case summery. In this case the defendants were the manufactures of smokeballs which they claimed could prevent the flu. They published adverts stating anyone that used their smokeballs for a specific period of time and caught the flu would receive a payout of£100. Carbolic company proved they were...
Words: 2257 - Pages: 10
...required for the formation of a valid contract 9 1b. Analyse the scenario from the perspective of the law of contract. Apply the rules of offer and acceptance in a given scenario, also considering any impact of new technology 11 1c. Assess the importance of the rules of intention and consideration of the parties to the agreement 12 1d. Explain the importance of the contracting parties having the appropriate legal capacity to enter into a binding agreement 14 2a. Analyse specific contract terms with reference to their importance and impact if these terms are broken 16 2b. Apply and analyze the law on standard form contracts 17 References 19 1a. Explain the different types of business agreement and the importance of the key elements required for the formation of a valid contract To implement the business activities with others, an person and even an organization needs make the legal contracts. The contract is considered as a versatile legal tool which guarantees legal enforcement of its terms. There are four popular types of business agreements such as sales agreements, employment agreements, independent contractor agreements and confidentiality agreements (1). * Sales agreements: this is a type of business contract between merchants and consumers. It is considered as a binding contract which binds the related parties if they sign the contract. The parties will be responsible for implement follow the terms of contract. The party of merchants usually has responsibility...
Words: 3964 - Pages: 16
...Table of Contents TABLE OF FIGURES 1 Introduction 3 1.1: IMPORTANCE OF THE ESSENTIAL ELEMENTS OF THE CONTRACT. 4 1.1.1. Agreement 4 1.1.2. Consideration 5 1.1.3. Intention to create legal relation 6 1.2: IMPACT OF DIFFERENT TYPES OF CONTRACT 6 1.2.1. Face to Face 6 1.2.2. Written contract 7 1.2.3. Distance Selling 7 1.3. ANALYSIS OF TERM IN CONTRACT 8 1.3.1. Condition 8 1.3.2. Warranty 8 1.3.3. Innominate term 9 1.3.4. Express 9 1.3.5. Implied 10 1.3.6. Exclusion Clauses 10 2.1. APPLICATION OF ELEMENTS OF CONTRACT IN 1ST SCENARIO 10 2.1.1. Agreement. 10 2.1.2. Consideration 11 2.1.3. Intention to create legal relations 11 2.2. APPLICATION OF ELEMENTS OF CONTRACT IN 1ST SCENARIO 11 2.2.1. The law on terms in the case study 1. 11 2.2.2. The law on terms in the case study 2. 13 2.3. EVALUATION OF EFFECT OF DIFFERENT TERMS 14 2.3.1. Condition 14 2.3.2 Warranty 14 2.3.3. Innominate Term 15 REFERENCE 16 TABLE OF FIGURES Figure 1: Composition of an agreement (Komma Naveen Kumar,2011) 5 Figure 2: Types of contract (Business Law,2013) 7 Figure 3: Innominate term 10 Introduction Vietnam JSC Software is a company that specializes in designing software applications for business organizations. The company has derived from applied outsourcing group and e-commerce for the US market in 2000 and it register business in 2003 and continue growth with high speed during recently years. JSC Software is evaluating to be a young...
Words: 4513 - Pages: 19
...anything even they can squeeze through law loopholes II: Analysis LO 1. Understand the essential elements of a valid contract in a business context Task 1 Explain and apply the importance of the essential elements required for the formation of a valid contract 1.1: Explain the importance of the essential elements required for the formation of a valid contract Law means rules were setting in one country and every one must comply with it. And as people know almost people in the world work base on contract and contract must comply with law. If one contract want effective it must require 5 elements: 1 Offer and acceptance; 2 Intention to create legal relations; 3 Consideration; 4 Capacity; 5 Privity of contract 1 Offer and acceptance: It means in one contract always exist 2 parties one people give offer and another people will accept with this offer or they can offer back and if they offer back first people will have accept or no. Example: A want buy one car of B with 10000 USD, but B think it not fair 10000 to small and he will talk “I don’t want sell it with 10000 USD only at least my car will sell with 15000 USD” This is “offer back” and A can accept or not if A decline this contract will gone, if A agree this contract accomplished 2: Intention to create legal relations: The requirement of intention to create legal relations in contract law is aimed at sifting out cases which are not really appropriate for court action....
Words: 5040 - Pages: 21
