The Legal Force of the Contract - Coursework Example

?Case Study Task: Understanding how law operates is often complex and requires clear examination of the arising issues beforeentering into any agreements. This goes to businesspersons who are bound to abide by strict terms and conditions toward meeting the company’s goals and objectives. It is also critical to assess the scenarios of contract cancellation especially in contexts lacking consent from both parties. Consent involves the total agreement from the members entering into any contract such as that of Antony to provide clothe garments and jewels at subsidized price to secure more businesses while increasing sales and therefore, more profits. However, in case of violation of the legally binding contract, the non breaching party is permitted to take a legal action of filing a lawsuit to demand for the payment of damages incurred as a result of immature cancellation (Chitty 2012, p. 145). Alternatively, the breaching party is mandated by law to compensate the aggrieved party in this case Antony is obligated to pay Joyce and Taz for contravening the existing terms. Despite the measures in place to safeguard the success of any legally binding contract such as that involving a company selling goods and services, instances of violation are rampant because people do not comprehend the basics of law. According to common law, contracts operate within legal systems that entail forging a lawful accord where two or more members seek an agreement to conduct a given activity. Therefore, in Antony’s case, whether he has reached a legally binding contract with Joyce on the choice of supply depends on several factors worth noting. For example, Antony is in agreement with Joyce because there was an offer and acceptance where he promised to supply 100 pieces at the cost of ?350 per piece. This implies that the element of contractual law called the ‘meeting of the minds’ had been achieved to satisfy the wishes of both parties. Additionally, the exchange of promise from Antony signifies his willingness to provide clothe pieces at a subsidized price and hence expand the business prospects of his Rocco Company. Antony must also acknowledge the essence of ‘consideration’ in legally binding agreement that encompasses his promises and acts of assuring Joyce that she would receive the 100 pieces at a lowered price to elevate her business through increased sales and profits (Harris 2007, p. 110). This is called the enforceable contract and it often entails consideration as a binding word for the first party offering the promise such as Antony in his prospects of supplying Joyce with clothes. Enforceable contract, according to legal experts, is achievable either orally as was done by Antony and therefore, cannot rescind his promise or through writing. However, in special instances as stipulated by state by-laws, some enforceable contracts are only legally binding in writing. Contrastingly, this does not overrule verbal contracts that are enforceable such as the case of Antony who stated in person that she would assist Joyce by cutting the garment prices from ?1000 to a manageable ?350 per piece. This suggests that while Antony’s main idea was to double the sale of Rocco products and establish strong image for his name, the verbal communication with House of Style Department fixed a contract that cannot be contravened under any legal terms (Koffman & Macdonald 2007 134). Interestingly, Antony’s decision to cancel the agreement is part of a legally enforceable contract recognized by the law and hence accorded Joyce an edge in upholding the agreement. An agreement to perform a particular act such as supplying garment pieces also signified a binding agreement for both parties thus preventing Antony from altering his mind concerning his promise. Advice, therefore, in a legally binding contract requires all the members involved in the contract to find a neutral platform of amending the considerations before recalling any emerging obligations. Contrastingly, the conditions of agreement always matter when specific obligations breach the promises and acts such as Antony’s decision to defy Joyce’ wishes. This means the non-breaching party has the moral obligation to file a lawsuit to counter the claims of contraventions of a legally binding contract such as the promise of receiving a supply of garment pieces at a reduced price to increase her sales and therefore, profits. In case of a court case, the aggrieved party attempts to enforce the contract through the determination of a continued payment in Antony’s case to favor Joyce’s prospects. Alternatively, if the non-breaching party fails to file her complaint within a year, the lawsuit is procedurally viewed null and void (Rose et al 2001, p. 89). This extension spreads to the performance act where Antony enters a new agreement to fulfill his original promise and enforce his contract through writing. Involvement of a lawyer is also critical to enable the two parties find an amicable solution that avoids contravention of both verbal and written contracts as that binding Antony and Joyce in the garment scenario. It is thus fundamental for the breaching party to acknowledge the pitfalls of entering into lawsuit that could amount to high legal fees for the payment of the arbitrator. On that note, it compels both parties to assess all the existing considerations that are legally binding and enforceable in contract before questioning the arising conflicts flouted by the breaching party. Antony should take caution that by avoiding possible consequential damages, liquated damages and special damages as a result of breaching an earlier legally binding contract. It could also arise because he refused to sell Joyce clothe garments at ?350 per piece according to the early agreement. Seeking remedies remains the only viable solution for Antony by enforcing his contract though a third party who agree with the existing terms and conditions. He also has the right to cancel the contract and consider it invalid to prevent Joyce from moving to court for any arbitration (Young 2009, p. 156). Therefore, a written cancellation is recommended to make the legally binding contract less expensive and complicated through unnecessary fees of proving the validity of case. It will equally avert disputes such as Joyce’s claim that she had received the letter of Antony’s changed mind later after assuring her clients of the new price at ?350 per piece and not ?1000 per piece. Explaining all obligations of the new contract is also important because it ensures that any future misunderstandings are avoided. There are several implications that are likely to emerge concerning Taz’s phone call to Antony in regards to the promised jewels. For example, the cancellation of the contract via the phone by Antony forms part of Consumer Protection Regulations of 2000 that mandates the use of telephone to enter or revoke legally binding contracts. The above regulation states that rights with goods purchased over the phone have the same effect as that conducted in a shop. Therefore, in accepting to receive Antony’s call of termination of the initial agreement, Taz is accepting the new terms and conditions. However, other violations committed by the other party such as disallowing Taz the 7 working days of cooling is against the law and could warrant a lawsuit for the breach of contract. A cold-call by Antony to Taz violates Consumer Protection Regulation because it does not satisfy the business environment of reaching an amicable solution (Koffman & Macdonald 2007 145). Additionally, while entering a legally binding contract via telephone is acceptable when the two parties cannot do it in person, it is not a guarantee to the full implementation of the contract. Any useful information, according the provisions stipulated by the Regulations of 2000 cautions against allowing a caller to strike a binding contract without consent or giving prior information to the recipient. This is to permit considerations before showing consent to the terms and conditions. However, in case of complaints such as that raised by Antony to reverse the decision from delivering 20 garments at ?500 per piece to ?900 hence disappointing the non-breaching party’s clients; it could warrant a fine or lawsuit. Taz, therefore, is mandated to take a decisive action through writing to a neutral arbitrator who can revoke Antony’s change of mind promptly. This has varying ramifications such as giving the contract new terms and conditions that prevent the acceptance or cancellation of a legally binding contract via telephone calls. It could also adjust the existing provisions of the contract by organizing a physical meeting that allows for full information and clearance to facilitate the cooling period when either of the party could opt out of the contract (Harris 2007, p. 118). On other hand, while writing is pertinent when in affirming the validity of any contract, it is always not completely necessary. Exceptions are only found in consumer credit agreements and leases that assist in purchasing property unlike garments where alterations could be effective through telephone calls. In that spirit, by Taz accepting Antony’s phone call, he is accepting the eventual cancellation of the supply of garments as per the initial agreement. Other agreements, however, are complicated because the lack of communication precipitates a scenario of amending the terms and conditions such as that agreement by Antony and Taz. It means both parties should ask pertinent questions touching on the statutory rights of the contract while assessing the ingredients that define the contract in a broader context. Alternatively, Taz and Antony could conduct a fact-finding mission that includes research on the merits and demerits of selling jewels at ?500 and not ?900 as now suggested by the breaching party to satisfy his company’s goals and objectives (Rose et al 2001, p. 93). In the same capacity, while a legally binding contract is constitutionally allowed if the telephone agreement had the consent of both parties; it should not have unfair terms such as canceling an earlier deal because this is unlawful. Antony’s transgression according to the provisions of the law disallows him to contravene Taz’s plan of selling jewels to his clients at ?1500 as per the former agreement. Alternatively, it negates the cordiality of telephone agreements in sensitive matters such as a legally binding contract of supplying garments at a subsidized price and without cancelling the deal at the last minute. It, therefore, is fundamental for organizations to assist their workers and clients in understanding the essentials that define contract laws such as when selling goods and services. This begins by stating the required recommendations before entering into any legally binding contract and the prospects of both party members to reach an agreement (Chitty 2012, p. 149). In that context, defining a contract allows the parties involved to critically examine the existing provisions before making any verbal or written promises and acts such as those done by Antony to Joyce and Taz. The ability to interpret a contract permits both parties to avoid the pitfalls that characterize breached deals that often end up in courts for the payment of damages. References Chitty, J, 2012. Chitty on Contracts: General principles. New York: Sweet & Maxwell. Harris, P, 2007. An Introduction to Law. New York: Cambridge University. Koffman, L, & Macdonald, E, 2007. The Law of Contract. Mason: Oxford University Press. Rose, A et al 2001. Getting Out of a Contract: A Practical Guide for Business. Mason: Gower Publishing. Young, M, 2009. Understanding Contract Law. New York: Routledge. Read More