Acme Fireworks is a retailer who sells fireworks, puts on ground displays, and large aerial displays for entertainment purposes. Acme Fireworks is a small privately owned company that has received inquiries from several large businesses, wanting to place large recurring orders of fireworks. In this paper, we look at the components of the business agreement used to assist the business dealings. We recommend selecting the right type of business structure to help maximize a company’s chances of operational success while limiting personal liability. Therefore, before entering into a legal binding contract, the business owner needs to reconsider its current business structure to reduce liabilities and to avoid breach of contract due to financial …show more content…
The owner accepted the offer when he verbally stated he could fill the large orders of fireworks. The terms of the offer were communicated; most of the cost paid for skilled labor, insurance, and the actual displaying of the fireworks. The price was discussed and agreed upon between the retailers and the owner. The consideration was the bargained for exchange, the price agreed upon per unit of fireworks. A verbal contract under the Uniform Commercial Code involving the sale of specially manufactured products is legal if made by a merchant. Paragraph #2-Determine if the contracts with the businesses will be governed by common law or the Uniform Commercial Code (UCC), and explain why. Contracts are governed by both common law and the Uniform Commercial code. Contracts formed out of an agency are governed by common law. Contracts involving an agency needs to have an understanding of duty and an offer in the form of compensation or the agent can work voluntarily. Contracts involving the sale of goods are governed by the Uniform Commercial code. A contract for the sale of goods under the UCC has to be made by “designated merchants” (Dalan, 1977) Paragraph #3-Explain the potential personal liability to Acme Fireworks if a spectator is injured by a stray firework from a fireworks …show more content…
(Stimmel, Stimmel & Smith, 2003) As the business manager I have the expressed authority to sell fireworks and the implied authority to collect money from the customer. The advantage is the owner can rely on the manager to act on their behalf to handle business transactions. The disadvantage, the owner is liable for torts if the business transaction was not handled correctly. To make fireworks, it takes a skilled agent. It is the duty of the agent to prove capability and skill when putting together fireworks. The advantage, the owner can feel confident to sell a specialty product. The disadvantage, if the employee is not paying attention and puts together a firework that causes harm, the owner is liable for the employee’s
a) Given that Eva and Maria entered a written contract supported by a legal document for a price agreed on $75,000 for rendering decorating services, there is consideration. Both parties agree upon a price and this contract verifies validity.
A Louisiana attorney is constantly asked by non-Louisiana peers if the state ever adopted the Uniform Commercial Code or if they are still using the old, outdated, Napoleonic Code. Though Louisiana has stark interpretations of the relevance of the UCC, the state has adopted the code in piecemeal. This article is a partial synopsis of introducing readers to a few of the concepts of UCC as adopted by Louisiana compared to the existing principles of the law of sales.
The four elements of a contract are the agreement, the consideration, contractual capacity, and a legal object. The oral agreement between Sam and the chain store satisfies the agreement element of a contract definition because when the chain store offered to sell Sam 's invention at their stores, Sam accepted by agreeing to ship 1000 units in exchange. The second element of a contract, the “consideration of each party,” is satisfied because Sam and the chain store have something to give the other (1000 units of the invention in exchange for the exclusive sales of the product at their stores). The third element is “contractual capacity,” which may or may not be fulfilled since we do not know Sam 's age or whether
In order to have a valid contract, there are six elements that need to be established. The following is a defined list of these elements, as well as analysis pertaining to the case at hand.
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.
Which of the principles of AICPA Code of Conduct is most related section 5062.2 of the California Accountancy Act? Explain your conclusion.
Were the items specially manufactured goods? Is the defendant to blame since the items cannot be sold at any other location? Is the verbal agreement for the sale of goods more than $500 enforceable?
(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]
The release of the hazardous material or exposure to the fire that ensues results in the need to evacuate 25 or more people
This judgment given set criterion which is still been used in the modern court system and due to this case it was developed that an offer of contract can be unilateral and doesn’t have to be made to a specific party only. Also it was developed to that the acceptance of an offer does not require a notification and that once the concerned party purchases the product the contract is active then and there itself. And it was also established that purchase of an item is a fine example of consideration and therefore makes it a valid contract. (Smith, 2000).
"Safety must be the top priority of all attending the event, thus Fireworks International ensures this is the case. From the site survey to risk assessment and the actual firing of the display at the wedding, everything is handled by the company to ensure nothing goes wrong. Couples can request a brochure today or connect with our company via popular social media sites to take advantage of special offers. We are ready to make your wedding a memorable event, so give us a call or visit us online today to get the process started," Garner recommends.
Based on common law and precedent, the English law of contract has been formulated and developed over a number of years with it’s primary purpose to provide a regulated framework within which individuals can contract freely. In order to ensure a contract is enforceable there are certain elements which must be satisfied, one of which is the doctrine of consideration. Lord Denning famously professed; “the doctrine of consideration is too firmly fixed to be overthrown by a side wind” . This is a crucial indication that consideration has long been regarded as the cardinal ‘badge of enforceability’ in the formulation and variation of contracts in English common law.
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,
Unlike the past, arson can be committed in various forms today. The expansion now includes not only damaging another individual's home by fire, but ...