...acceptance must be clear and unqualified; an acceptance that modifies the offer is treated as a counteroffer.” In addition, “the offeree must accept in any manner required by the offer.” (Emerson, 103) Failure to meet requirements of the offer, such as conditional acceptance, may be fatal to the contract. Consideration is “something a party provides in exchange for something from the other party.” (Emerson, 93) Furthermore, “consideration is based on the idea of quid pro quo (something for something): some action, forbearance, or promise. In almost all contracts, consideration is required for enforceability.” (Emerson, 105) However, there are a number of reasons why consideration may be absent, such as, illusory promises, doing what one is bound to do, moral obligation, past consideration, and statute of limitations. Capacity of the parties is “only a person who is legally competent has the power to make a binding contract and can be held to any promises therein. Persons who may be considered to be legally incompetent include minors, insane persons, and, sometimes under specified circumstances, intoxicated persons.” (Emerson, 99) Legality means that “if the subject matter is not legal, the agreement is not enforceable in court.” (Emerson, 133) This further relates to agreements that...
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...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 ...
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...وunilateral promise One party binds itself to perform a function for another Does not normally create legal obligation Legal obligation is created: • • Genuine need of the masses – (ر Contingent promise ا س )رد ا ز ن ز ا إذ ا 2. Muwaa‘ada – ا ة • • • • – bilateral promise Two parties performing two unilateral promises on the same subject Use of two unilateral promises can lead to a forward contract, which is impermissible Not allowed and non–enforceable according to majority (AAOIFI, IFA and others) Some Hanafi/subcontinent scholars allow it provided no other prohibition (excessive gharar or short selling) 3. ‘Aqd – – contract Promises do not constitute a contract • Difference between a contract and a bilateral promise is there is no proprietary transfer in bilateral promise ENFORCEABILITY OF PROMISES • • • Islam prohibits rolling 2 contracts into one (safaqah-fi-safaqah). Modern financial transactions often need to combine 2 contracts into one eg Hire Purchase. As Islam prohibits client signing agreement binding him to 2 contracts at the same time eg rent and purchase, how can a bank structure an Ijara Mortgage where there is a rental element and purchase element? How can a Bank offer an Islamic Mortgage yet still prevent itself having to hold huge assets on the balance sheet and potentially suffer massive losses on property disposals? Solution is to make client sign one rental contract coupled with a legally enforceable promise to purchase...
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...agreement. Mark was not happy about the fact that Johnny went and purchased a car without giving him the full two weeks to make up his mind as into if he was willing to sell the car or not to Johnny. Johnny then told Mark that he is revoking his offer. Mark was not happy with this at all. To make things a little better, Johnny gave Mark a promise to pay him 10,000 dollars for some work Mark had previously helped him with around his home a year or so ago. Mark took that offer. About a week or so later, Johnny reneged on that promise to pay Mark the 10,000 dollars for his help. Mark was very upset at this point. Mark decided that he was going to sue Johnny for the breach of contract for the car as well as the promise to pay for the help that he had given Johnny for the amount of 10,000. When it comes to breach of contract there must be a promise made. A promise is a declaration that binds the person who makes it to do or not to do a certain act. An offer is a promise or commitment to perform or refrain from performing some special act in the future. Johnny made the offer to Mark to buy the car, Mark did not ask Johnny if he wanted to purchase the car. Mark just informed Johnny that he would leave offer that Johnny made open for two weeks to figure out if he...
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...car it was a clear offer. Acceptance. This basically means that the terms of the offer have been clearly understood and agreed to through consent and assent and at no time will the terms be changed. When the buyers agreed to the terms of sales and even agreed to pay a deposit, it clearly shows that they have accepted the seller’s offer. Legal purpose. It means that the reason for the contract must be legal. In this case, the sale and purchase of a car from a licensed dealer is legal and done under the regulations specified by law. Mutuality of obligation. This refers to the parties’ mutual understanding and also assents in expressing their agreement. They must both agree to the same sense, same thing ant also the same time. When the two buyers approached a dealer seeking to purchase a car, there was both an offer and acceptance. There was clear communication between the terms of the buyer and the seller and were both in mutual agreement. Consideration is basically the benefit to the person making a promise or the person to which the promise is intended for. In this case, both the buyers and the seller agreed to the terms and conditions of the agreement leading the buyers to make a deposit of an amount as proof of consideration. Consideration is sometimes not put in monetary...
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...law rules regarding contracts entered into by infants and which can be valid, voidable or void; > summarise statutory changes to the common law made in NSW and SA in relation to infants; and > outline the common law rules with regard to capacity to contract with respect to corporations and bankrupts, the mentally ill and those under the influence of alcohol. Graduate School of Business 4:2 Step 3: Consideration Consideration is something for something. Put another way, it is the price the promisee pays for the promise. For example, in the case of the purchase of a house, it is that house in exchange for the purchase price. Consideration makes the agreement in a commercial bargain. A person seeking to enforce a contract must have, in fact, provided consideration for the promise which they seek to enforce against the other party. Note, that an exchange of promises may be enough to constitute consideration, as may be a promise to do work or a promise to release a person from liability. Consideration involves the idea of exchange. In other words it is something given by a party...
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...a boring routine and would love to explore different things. In addition to that the world is more and more “online”, so it became logical that creating a website/app to help people find attractive and cheap deals to have fun would be a success! They solved a really complex problem, which is engage with local customers so it’s possible to adapt Groupon to local communities. 2) What is the Groupon promise? How does the Groupon Promise affect a consumer’s perceived risk and cognitive dissonance? According to Groupon’s founder, his company promise is: “Any costumer can return a Groupon, no questions asked - even if they used it - if they feel like Groupon has let them down.”. Giving to consumers the opportunity of “returning” a coupon even if it was used without any questions reduces post purchase anxiety or tension. Some studies shows that satisfaction affects consumers chances to repeat a purchase of determined brand. With that in mind it became possible to affirm that consumers feel secure about their purchase due to Groupon’s return policy. 3) Describe the five-stage purchase decision process for a typical Groupon user. A- Problem Recognition. Groupon shows new deals (via email/notification etc) that intend to attract consumers needs, offering an opportunity to do something that is not commonly done by the consumer. B- Information Search: A Groupon offer will usually start an “internal search,” so the consumer will reflect on previous...
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...but nevertheless are tolerated in Shariah 3. Ijaarah - ( إ رةleasing) 4. Muraabahah - ( اcost plus pricing) We will also briefly analyse Salam - , Istisnaa‘ – ع Tawarruq – رق اand 1 Mushaarakah • “Mushaarakah” literally means sharing • “Mushaarakah” is derived from “shirkah” which means “being a partner”. • Mushaarakah is “a joint enterprises formed for conducting business in which all partners share the profit according to an agreed ratio while the loss is shared according to the ratio of investment” • It is an ideal alternative for interest based financing with far reaching effects on the economy. Types of Shirkah SHIRKAH SHIRKAT-UL-MILK joint ownership SHIRKAT-UL-‘AQD joint enterprise OPTIONAL via joint purchase NON OPTIONAL inheritance SHIRKATUL-AMWAAL SHIRKATUL-‘AMAL SHIRKATUL-WUJOOH mushaarakah Mushaarakah • The term Mushaarakah has been introduced recently by those who have written on the subject of Islamic modes of financing • It is normally restricted to a particular type of “Shirkah”, i.e. Shirkat-ul-amwaal, where two or more persons invest some of their capital in a joint commercial venture. • However, sometimes it includes Shirkat-ul’amal also where partnership takes place in the business of services. Rules of Musharakah • • Assets of Mushaarakah are jointly owned in proportion to the capital of each partner. Ratio of profit distribution must be agreed at the time of the execution of...
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...offerror and the offeree. Everybody in this world is an offeree as we all purchase goods and services to meet our personal needs and if our expectations are not met, there is a problem which is why the contract is created for both parties to follow. However, if either of them fails to do so, then they are in breach of contract and the aggrieved party has legal rights that they can try and enforce. A contract is formed when there is an offer or acceptance. In this assignment I have been given a case to resolve and advise the parties whether they are in breach of contract or not. A contract is a promise or set of promises the law will enforce. The scenario I have been given states that Fred placed an advertisement providing his potential buyers with the information given below. ‘Garage sale of law books. Items include the entire set of Weekly Law Reports from 1970 – 1990 to be sold to the first person who is willing to pay £100 for the lot. Sale starts Saturday 11th December at 9am. Address 1, Fairfield Road, Hygate, Telephone Number, Hygate 12345.’ Hence, Peter sets out early on Saturday 11th December to be the first one in the queue and offers £100 to Fred. However, he discovers that Fred has sold the books to Sally who had phoned him to purchase the books as soon as she saw the advertisement. In order for a contract to arise, there must be an offer and acceptance. An offer is a definite promise to be bound provided certain specific terms are accepted. However, there are...
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...375 American cities and 40 countries. Their subscriber base has grown from 400 in 2008 to 60 million today. According to Forbes magazine, Groupon is the fastest growing company in history. Groupon is a service where subscribers are offered at least one deal in their city each day but a certain amount of people need to buy into the offer before the coupon discount is valid. Once the minimum number is met, Groupon and the merchant split the revenue. An example of how it works is that a yoga studio might offer a $100 membership for $50 if 200 people participate in the offer. Once 200 consumers have indicated interest, the deal “tips” and Groupon and the yoga studio each receive 50% of the revenue. Groupon has a policy called “The Groupon Promise” that any customer can return a Groupon, no questions asked, even if they used it. Groupon also has other services such as Groupon Stores which permits merchants to create their own deals and send them out to their own audience. Groupon also have a mobile service called Groupon Now, an app where consumers pick 2 options “I’m Hungry” or “I’m Bored” and then the phone transmits it location to Groupon services and display a list of nearby deals. Part of the reason Groupon has grown as quickly as it has is because...
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...for a verbal contract with a pending date of sale, the date of sale being Brian’s retirement. Harry made plans to purchase the train station by saving money, borrowing money and adding on to his home to prepare for the train set. Brian was aware of all the plans that Harry was making. Upon Brian’s retirement he told the train set to his neighbor, James. Harry sued Brian, claiming breach of contract, or in the alternative, for promissory estoppel. Harry’s claims of promissory estoppel are based on the grounds that a promisor (Brian) made a gratuitous promise (to sell his train set) to a promise (Harry). Harry relied on the promise and made purchases to the fact. Brian was aware of all the purchases that Harry was making and he never said anything to Harry to suggest that he had changed his mind. Harry will ask the judge for compensation for all he spent preparing for the train set, the cost of building a 2,000 sq. ft. addition to his home and the loan from aunt Ida the 2,000 square foot room that Harry built for the model train collection and the money that Harry borrowed from his aunt to purchase the model train collection. The judge or jury will rule in Harry’s favor because Brian entered into the contract with Harry and falsely continued to lead Harry on about the selling Harry the train collection. Brian was aware that Harry was making plans to purchase the collection and never alluded to the fact that he may have other potential...
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...Name Date Class Lesson 8-1 Types of Consideration LESSON 8-1 OUTLINE I. Consideration A. Act, Forbearance, or Promise B. Trading C. Legal Value D. Adequacy of Consideration E. Nominal Consideration Lesson 8-1 Review Vocabulary Review Define the following vocabulary terms. 1. consideration That which is given or received in a contract. 2. gift The transfer of ownership without receiving anything in return. 3. donor The person giving a gift. 4. donee The person receiving a gift. 5. forbearance A promise to not do something. 6. promisor The person who promises an action or forbearance. 7. promisee The person to whom a promise is made. Concept Review 8. Define consideration. Consideration is what a person demands and generally must receive in order to make his or her promise legally binding. Lesson 8-1 Review (continued) 9. How can legal value be found in the exchange of benefit for a detriment? With legal value, the detriment is the giving up of a legal right. A detriment arises when a person promise forbearance. 10. Under what conditions is there no consideration? There is no consideration if one of the parties does not give an act, forbearance, or promise to the other, if one of the parties does not trade her or his contribution to the transaction, or if what is traded has no legal value. 11. What is adequacy of consideration? The values that different people place on similar...
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...Term Paper on What is investment and debt/trade financing modes followed by Islamic Banks in Bangladesh. Do they conform to shariah rules. If so, how and if not, why not. Give your own conclusion/concluding remarks / recommendation. Course code: Fin-5502 Subject: Submission of Term Paper Dear Sir, I am very much delighted that I am submitting herewith my term paper titled “what is investment and debt/trade financing modes followed by Islamic Banks in Bangladesh. Do they conform to shariah rules. If so, how and if not, why not ” under the reference of my term paper for partial fulfillment of MBA Program on the Comparative Banking. As of the requirement, I have closely studied the topic and tried my best to make this paper meaningful. I believe and hope that you will find this report informative and insightful. Your valued assessment of my assignment would help me in the enhancement of my skill, knowledge and efficiency. Any further clarification, if needed, regarding the paper will be instantly responded. Regards. ___________________ Saima Sultana Acknowledgement In preparing this report, I am beholden to the most venerable teacher Mr.x, Faculty, Department of Business Administration, IIUC for his guidance and supervision for furnishing this term paper. I am very much pleased on him for his continuous encourage to undertake the term paper, to collect, analyze data and finally editing, presentation of...
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...Abstract Consideration is the price that the promisor asks in exchange for their promise, that is, the price of a given promise. Consideration is not a significant part of a contract in a number of jurisdictions. Once parties have reached a binding agreement, that becomes sufficient. Nevertheless, the common law requires that for agreement to be binding, the person to whom a promise is made (promisee) must offer consideration (maybe in monetary terms) for the promise given to him (Lorenzen, 1918, p.28). Hence, most gratuitous promises are never enforced because of a few exceptions. There are different types of consideration and they include: Executory consideration Executory consideration is a type of consideration where the promise has not yet completed the requirements of the consideration. Therefore, executory consideration will exist in cases where the promisor’s promise is made in return for a counter-promise from the plaintiff. For instance, A makes a promise of delivering some products to B at a future date and B promises to make payment for the goods once he receives the shipment. B can sue A for breach of contract if A fails to deliver the goods (Carter et al., 1996, p. 312). Executed consideration Consideration is termed as executed when the consideration is issued at the time the contract is made. Therefore, an executed consideration will only come into existence when the promisor’s promise is matched by a performance of an act. For instance, Philip can offer to pay...
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...Power = Channel Power Developing a Brand Strategy Business Strategy & Vision Brand Strategy Platform Brand Driver Attributes & Values Positioning Architecture Visual and Verbal Identity Customer Service Advertising Web Business Papers Sales Collateral Public Relations Target Audiences Branding Touchpoints A Touchpoint is The connections between our ‘brand’ and our customers: prospective, current and past. Customers experience our touchpoints along their path from consideration – purchase – use – repurchase / recommend. • • Can be physical (people, buildings, literature, events etc.) Can be intangible (feeling we convey via our communications by leaders, other representatives) Can be virtual (our website) etc. • Touchpoints and the Purchase Cycle Touchpoints can be instrumental in driving customers through the purchase process or to derail them. Commitment Awareness Loyalty Customer Experience Familiarity Purchase Preference Concept takeaways… • • • • • Brands are promises. Branding happens everyday, everywhere. Should have clear roles to play Less is more, must not be too...
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