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,
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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.
With commercial dealings on the rise in Australia and globally, so too are the complications. If some sort of codification is not established and built from the principals that already exist, commercial opportunities could be in jeopardy due to the uncertainty and risk of not having a clear outline or set of laws to cover contracts generally.
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.
1.1 Explain at least four points of differentiations between contract and agreement with the help of examples.
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.
(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.
Bilateral – The majority of offers are Bilateral. While it is not always true, most people make an offer to one named offeree or a small group of parties. Most contracts are made with both parties present on a face-to-face basis.
This case mentioned below is a fine example of understanding the Law of Contract in a better manner. (Gerald, 2014).
Implied terms – they are not expressed but they are adopted as “obvious” an individual must comply with (e.g) if buying a product and it is not in a good taste the consumer has the right to return it to the owner for exchange or refund.
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,
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)
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.