A contract creates a set of legally enforceable obligations and rights PDF

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Important notes on contract law...

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1.

Acont r actcr eat esasetofl egal l yenf or ceabl eobl i gat i onsandr i ght s.Descr i bei ny our ownwor dswhatt heeffectoft hi s Thi sSt at ementmeanst hatwhenacont r acti smade.Theper s oni sbasi cal l ymaki nga pr omi set odocer t ai nt hi ngsbycer t ai nwayeg:dr i vi ngonar oadbutt hespeedl i mi ti s50 k m/ h.Howev er ,al t hought hi si sagr eed,i ti susual l yaf t ermanynegot i at i onsar emade bet weenbot hpar t i es Acont r acti nv ol v es2par t i esi nwhi chanofferi smadebyonepar t yandt heot herone accept st hi s.Fur t her mor e,whenmaki ngt heoffer ,t het y peofmat t ert heofferi s c at egor i sedasmustbeacommer ci al mat t erandt hepar t ymaki ngt heoffermusthav e t hei nt ent i ont oenf or ce.Howev er ,i nor derf oracont r actt obev al i d,t heper sonmaki ng t hecont r actmustbe18+y ear sandt hes ubj ectmat t ermustbel egal andpos si bl e.The per sonbei nggi v ent heoffermus tal sogi v egenui neconsentf ort hecont r actt obemade.

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Whatar et her equi r ement sorel ement st hat‘ f or m’ acont r actorbr i ngacont r acti nt o exi st ence? Theoffermadebyonepar t yi saccept edandagr eedupon Thesubj ectmat t eroft hecont r actmus tbeacommer ci alone -Al l par t i esmustbeabl et ounder s t andt het er msandanyobl i gat i onsundert hecont r act . Par t i esmus tex c hanges omesor tofv al uef ort hecont r actt obebi ndi ng. Thecont r actmustbel egal andposs i bl e

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Descr i bet hes econdr equi r ementorel ementt hati snecess ar yt ot ur nan agr eement / ar r angementorunder s t andi ngi nt oal egal l ybi ndi ngcont r act ?I not herwor ds , whati st hes econdl egal r equi r ementt of or m acont r actandwhatar et het womai n pr esumpt i onst hatar i sei nr el at i ont ot hi sr equi r ement ? Thes econdel ementoff or mi ngav al i dcont r acti st hatt hatt hesubj ectmat t eroft he cont r actmustbecommer ci al .Thi smeanst hatbot hpar t i eswi t hi nt hecont r actmust ex changesomet hi ngt hati sofmonet ar yv al ue( usual l yt hecas e)f orsomeot hergoodor s er vi ce.Howev er ,t her ear et wocondi t i onsi nor derf ort hi sel ementt odeem acont r act v al i d.Thefir s tcondi t i oni st hatbot hpar t i esmus tbeatl eas t18y ear sol dandar e ment al l ys ound.Thi smeanst hatt hepar t i esar ei nf ul l under st andi ngoft hei ract i ons dur i ngwhent hecont r acti smadeduet ot hei rment al st abi l i t yaswel l ast hei rappr opr i at e age.Thes econdcondi t i oni st hatt hecont r actmus tbel egal andposs i bl e.Thi smeans t hatanycommer ci al mat t erdi sc us sedi nt hecont r actmustbeabl et obef ul fii l edbybot h par t i esaswel l asbei ngwi t hi nt hel aw. Adal i v edi nSi ngapor eands entaser i esofemai l st oherni ece,Chl oe,whol i v edi n Aust r al i a.Ada’ semai l sencour agedherni ecet omov et oSi ngapor et el l i ngChl oe“ y ou canl i v ei nmyhous eandpaynor enti fy oucomeandk eepmecompany ” .Adaev en madepr omi sest oal t erherwi l l t opr ov i det hatChl oecoul dl i v ei nAda’ shousef orl i f ef r ee ofr ent .Chl oeaccept edt heoffer ,qui therj obasamar k et i ngex ecut i v e,sol dherhousei n

Aust r al i aandflewt oSi ngapor e.Af t erar r i vi ng,AdaandChl oehadafi ghtandAdaas k ed Chl oet ol eav e.Advi seChl oeusi ngcommonl awpr i nci pl es . Chl oecanmak et hecasef orf r audormi sr epr esent at i onoft heor al cont r actasshe c l ear l ydi dnotunder st andt henat ur eoft hecont r actandt husdi dnotexpectAdat o c hangehermi ndandnotpr oceedwi t ht hecont r act . 4.

Nady ar unsanaccount i ngpr act i ce.I nt hepr act i ceshopwi ndowi sas i gnt hatr eads “ Annual Tax at i onRet ur nsf or$100” .Nady a,however ,hasr ecent l yi ncr easedt hepr i ce f ort hi sser vi cet o$120.Gi deoni swal ki ngpastNady a’ spr act i ceandent er s .Gi deonsays t oNady a“ Iwoul dl i k ey out odomyt axr et ur nf ort hepr i cei nt hewi ndow” .I sNady a cont r act ual l yobl i gat edt odoGi deon’ st axr et ur nf or$100? Nady ai sobl i gat edt odoGi deon’ st axr et ur nf or$100ast hi swoul dbecl as si fiedas mi s r epr esent at i onofi nf or mat i ont oc ust omer sasGi deondi dnotunder st andt henat ur e oft hecont r actass het houghtt hatNady awoul dchanget hesi gni fs hec hangedt he pr i ce. Ti ps: Lookatt her el at i ons hi pbet weent het wopar t i es( i ft hey’ r ef r i ends,t hecont r acti snot enf or ceabl e) I fy ouar eI nanagr eement ,y oucanst i l l enf or cepr omi ssor yest oppel Ensur ey ouhav eagoods t r uct ur et ohel punder st andhowy ougott ot heconc l usi on St r uct ur e I st her eanI nv i t at i ont ot r ade I st her eanoffer I st her eanaccept ance( i si ti mpl i edorexpect ed) I ft hepar t yhaspost edi t ,i thasbeenaccept ed I st hesubj ectmat t eracommer ci almat t er I st her eaconnect i onofmi nds Di dt heyex changeconsi der at i on Di dt heyex changesuffic i entcons i der at i on -Howl ongdot heyhav ebef or et oenf or cet hi scont r act Goodcases t udi est ouse: Cas esf orPr omi ssar yEst oppel :

Page241 Page254

Compul sor yc hapt er s: Chapt er7pager221, 224, Casesf orcommuni cat i onofaccept ance Page228and229 Soci al / Domes t i cagr eementcases Page232 Commer ci al orbusi nesscont extcases( Cont r actl aw) Page233 Consi der at i oncasest udi es Page236 Suffic i entconsi der at i oncas est udi es Page237, 238 ReadFoak esvsBeercasest udyonpage239 Recommendl i nki ng23casest oeac hpoi nt

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Dewi andChengar egoodf r i ends .Dewi hear dt hatChengwask eent obuyhi sDewi t el ephonedChengandsai d" Iheary ouwantt obuymyHonda.Youcanhav ei tf or $3, 000.I ' l lgi v ey ouaweekt omak eupy ourmi nd" .Thenex tdayDewi metanot her f r i endEt hanandaf t ersomedi sc us si onsol dEt hant heHondacarf or$3, 500.Twoday s l at erChenghear df r om amut ual f r i endPi at hatDewi hadal r eadysol dt hecar .Cheng i mmedi at el yr angDewi t oacceptt heHondaf or$3, 000.DoesChenghav eaconcl uded cont r actwi t hDewi ?Woul dy ouranswerbe di ffer enti fChenghadgi v enDewi $50t o k eept heofferopen?

Youcanex er ci sePr omi ssar yEst oppel wheny ou’ r ei nanagr eementnotacont r act .I tcan beappl i edwhent hepr omi seeDewi hasacknowl edgedt heagr eementbutdi dnotr ev ok e hi soffert oChengbef or esel l i nghi scart oEt han.

No,i twoul dnotbedi ffer entast heor al cont r actbet weenDewi andChengwasgi v ena cool i ngoffper i odwhenDewi gav eChengaweekt omak euphi smi nd.Ther ef or e,t hi s gi v esDewi l eewayt ochangehi smi ndi fhecomesacr ossanot hercust omerwhi ch,i n t hi scase,wasEt han,whohesol dt hehondat of orahi gherpr i ce. 6.

Youar eanaccount ant / adv i serandy ouneedanewmobi l ephone.Youwal ki nt ot he Tel st r ashopont hecor nerofSwanst onandBour k eSt r eetMel bour ne.Thesal esper son t el l sy out obuyt hel at estSamsungGal axymodel .I ti sbet t ert hant heAppl eIPhone comi ngoutsoonandcheaper .Youar enotconvi ncedandspeakt oy ourf r i end.He t el l sy out hathi ssi st er ,I vy ,want st osel lherSamsungGal axyphone.YousendI vyan emai l " Iheart haty ouwantt os el l y ourSamsungGal axy .I fi ti si ngoodcondi t i onandi f t hepr i cei sr i ght ,Iwoul dl i k et obuyi t .Pl easeadvi semeassoonaspossi bl e" .I vyr epl i es byemai l " Thephonei si nex cel l entcondi t i onandi scheapat$700" .Youemai l I vyback andsay" Iaccepty ourofferandwi l l buyt hephonef or$700" .Howev erbef or er eadi ng y ouremai l I vyr ecei v esanemai lf r om anot herper sonwhooffer sher$800f ort hephone. I vysel l st hephonet ot heot herper sonf or$800.I st her eacont r actbet weenI vyandyou f ort hephone?Howmi ghty ourans werbedi ffer ent( i fatal l )i ft heconv er sat i onbet ween I vyandy oubyemai l wasasf ol l ows :“ Hi I vy ,Iwoul dl i ket obuyy ourSams ungGal axyf or $700,pl easel etmeknowbyemai l ” .Twodaysl at ery ouchangey ourmi ndandpur c has e t hel at es tAppl eIPhonef r om ashop.Thesamedayy our ecei v eanemai l f r om I vywhi c h r eads“ Gr eat .I t ’ sy our s” .I st her eacont r actbet weenI vyandyou?Woul dy ourans wert o ( b)abov ebeanydi ffer enti fy ouchos enott or eadI vy’ semai l buti nst eaddel et ei t ? Ther ei sacont r actasi ncase( a)t her ewasacool i ngoffper i odf ort heper sont omak e uphi smi ndasi twasl i k el yass umedt hathewoul dmak euphi smi ndi nashor tper i odof t i me.Ther ef or e,i ncase( b) ,si ncet her ewasnot echni cals i gnat ur emeani ngt hatt he cont r acti sbi ndi ngt ot heper son,hehast heabi l i t yt ochangehi smi nd

Ther ei sacont r actasy ouhav enotr ev ok edt heofferbef or eI vyaccept edt heoffer . Ther ef or ei ncase( b)I vyi sboundbyt hecont r actt oy out oensur et hatsheabi desbyt he condi t i onsofsel l i ngt hephone.

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Howwoul dy oudesc r i beconsi der at i on?Gi v i ngex ampl esf r om casel aw,what di ffer entf or mscanconsi der at i ont ak eornott ak e ? Consi der at i onbasi cal l yi sdefinedast heex c hangeofonet hi ngofv al uef oranot her ,f or ex ampl e,anempl oy eeatacompanywoul dsi gnacont r actwi t ht heempl oy eri nwhi ch

t heconsi der at i onwoul dbet heempl oy eegi vi nghi ss er vi c est ot hecompanyi nwhi cht he empl oy erpay shi m money .

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Saanvi ’ sf at her ,Mohammed,pr omi s esSaanvi t hati fs hest udi eshar dandobt ai nsa hi ghdi st i nct i onf orherCommer ci alLawcour seatRMI T,hewi l lgi v eher$1, 000.Saanvi andMohammeds i gnawr i t t enagr eementt ot hi seffect .Saanvi spendsal l herf r eet i me s t udyi ngCommer ci alLawandr ecei v esahi ghdi st i nct i on.Saanv ias ksherf at herf ort he moneyhepr omi sedbuther ef usessayi ng“ y ouhav en’ tdoneanyt hi ngt haty ou’ r enot al r eadyr equi r edt odo.Yourhi ghmar ksshoul dbeenoughr ewar d” .CanSaanvi t ak e s uccess f ul l egalact i onagai ns therf at her ? Saanv icant ak esuccess f ull egalact i onagai nstherf at herasMohammedsi gnedt he cont r actwi t hf ul lunder st andi ngofwhathewoul dgi v eheri fshesuccessf ul l yf ul fil l edt he condi t i ons .Fur t her mor e,s i nceSaanv iwasgi v ennocool i ngoffper i odt odeci det hi s whi l est udy i ngcommer ci al l aw,Mohammedal s ocannotmak eacasef or mi s r epr esent at i onei t her .

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Kat i ei sempl oy edbyabusi nesssol ut i onsfir m.Shei swor ki ngi nat eam off our per sonst ocompl et eas peci alpr oj ectby1August2017.Twooft het eam member sl eav e t hefir m,l eavi ngt hes peci alpr oj ectshor tst affed.Kat i e’ sbos spr omi sesKat i et hati fshe wor ksweek endsont hepr oj ect ,hewi l l payheranext r a.$500perweek end.Whent he pr oj ecti scompl et ed,Kat i e’ sbossr ef usest o pay t he$500f oreachoft het hr ee week endsshehaswor k ed.Advi seKat i ewhet hers hehasanyr i ght st ot heext r a$500f or eachoft het hr eeweek endswor k ed. Shedoeshav et her i ghtt oenf or cet hecont r actasshehadav er bal cont r actwi t hher bos si nwhi cht hebossoffer edher$500f orwor ki ngon week endsandKat i eaccept ed t hi s.T

10. Aar onhasf ormanyy ear swor k edonhi spar ent ’ sf ar m asapar t neri nt hef ami l y bus i ness .Aar oni sanexper i encedhousebui l derbutdec i dedt ogi v euphi ss uccess f ul bus i nesst ohel phi sel der l ypar ent sont hef ar mf ornoSev er al mont hsago,Aar on dec i dedt omar r yandwask eent or et ur nt ohi sbusi nesst obet t erpr ovi def orhi sf ami l y . Knowi ngt hi s ,Aar on’ spar ent spr omi sedhi mt hati fhecont i nuest owor kont hef ar mt hey wi l l di vi deoffandgi vet ohi m par toft hef ar m pr oper t ys ot hathecoul dbui l dhi sown home.I nr el i anceont hi spr omi se,Aar oncont i nuedt owor kont hef ar m andobt ai neda l ar gebankl oant opayf ort heconst r uct i onofhi snewhome.Thepar ent spr omi sedAar on t heywer ear r angi ngwi t ht hei rl awy ert oex ec ut eacont r actt oev i dencet hi st r ansf eroft he pr oper t y .Howev er ,af t ermanymont hsandwi t ht hehouseal mostcompl et ed,nof or mal cont r acthady etbeenent er edi nt o.Unknownt oAar on,t hepar ent swer er el uct antt o pr oceedwi t ht hi sar r angement .Theywant edt ogi v et heent i r ef ar mt ot hei rdaught er , Mar i on.Thepar ent st ol dt hei rl awy ert o“ gosl owwi t ht hepr epar at i onoft hecont r act ” . Aar onhasr ecent l yspok ent ohi spar ent ’ sl awy erandwast ol dt hathi spar ent snow

r ef uset osi gnanycont r actandwanthi mt ol eav et hef ar mi mmedi at el y .Adv i seAar onas t oanyr el ev antcommonl awr i ght shehasagai nsthi spar ent s. Aaron can make the claim that his parents gave him misrepresented information which would therefore not require any ‘formal’ contract for the oral contract to be legally binding....