Letter of Legal Advice - Essay Example

Letter of Legal Advice Accounting Practice Penrith 15 September Client Client Address: Email id: abc@hotmail.com Dear Managing Partner, Thank you for asking the accounting practice firm to the advice about the various forms of contractual acceptance in relation to the accounting business. 1. Introduction Acceptance is one of the core elements of a contract. The elements other than acceptance are offer, legal, consideration, intension and capacity. A contract always requires the presence of an offerer and an offeree. An offerer can be an individual or group who put forwards the contract. Moreover, an offeree is the acceptor of the contract. The essay aims to provide a brief idea about the legal contractual acceptance. It also highlights the different forms of acceptance with relevant examples. Furthermore, it also portrays the different communication mode through which a contract is built amid two parties. Moreover, it also puts forward some of the legal advices that are needed to be considered in order have a lawful advantage in this corrupted era. 2. Discussion 2.1 Define Acceptance Acceptance is an expression or implication of undertaking something, which is being offered. In legal terms, acceptance of a contract is an expression or the willingness by an individual or a party undertaking the contract that is being offered by ran offerer. In this regard, one party accepts the terms and conditions of a contract or deal as stated by the other (Krol, 1993). 2.2 Forms of Acceptance Acceptance is of three forms that are viewed in a contract. These are ‘Conditional Acceptance’; ‘Implied Acceptance’ and ‘Express Acceptance’. 2.2.1Conditional Acceptance To begin with, ‘Conditional Acceptance’, is a form of contractual acceptance where the acceptance is made on the account of fulfilment of certain conditions. Elaborately, the party who accepts the offer of contract considers the same only if certain conditions lay down by the acceptor are fulfilled by the party who offered the contract (Meena, 2008). This is evident from the fact of Malago Pty Ltd v AW Ellis Engineering Pty Ltd [2012] NSWCA 227, where a prominent depiction of the conditional acceptance was observed. The Head of the Agreement in this case proposed a condition of compelling the total water surface to the respondent. The decisions by the court were that both the parties should consider the surrounding circumstances. The court also rejected the agreement due to the lack of formalities. The court further, implemented that a conditional acceptance needs to have the formal guidelines and also requires considering the surrounding circumstances. From the case, it can be learnt that for any firm to have legal advantages in the contracts, adequate formalities and official procedures should be considered. Therefore, from the case analysis it can be stated that to have an effective conditional acceptance, a company should meet all the legal requirements amid the parties (Allens, 2012). Furthermore, there are witnesses in case of people accepting the offer of caution money of rent, only if it is being refunded after the end of the last month. This type of scenario is observed in case when an organisation provides replacement guarantee or warrantee of certain product to its customers. There are certain conditions for this agreement, such as, for a mobile handset, the customer is liable for the offer of the replacement warranty or guarantee only if it is not destroyed through breakage or something else (Meena, 2008). The conditional acceptance of a contract that takes place under the shadow of business law includes several of the factors. One of the most decisive is following the postal rule. There are various postal rules that are to be considered in order to have an adequate process of conditional acceptance. Postal rule suggests that if a party delivers any post containing some of the conditions of acceptance, then the acceptor who has send the post is liable for proposing the conditions, irrespective of delivery of the letter to the offerer. The letter if is destroyed or lost or even has the postal delays, still the acceptor is liable for proposing the conditions. However, the communication is not legally acceptable if it is communicated through telephone, fax and telex. For any party or individual to propose some conditions of acceptance in the contract, it should also be accessible through the wired cables and telegrams under the legal guidelines. In the past, before the 18th century, the communication amid the offerer and the offeree used to take place through the agent. Here, if a party states his/her proposal of the conditions to the agent, the acceptor of the contract is liable for proposing his/her conditions. Moreover, communication can be through the electronic mediums like internet and the emails (Gillies, 1988). 2.2.2 Implied Acceptance Implied acceptance is a type of contractual acceptance, which is directly conversed in a verbal along with non verbal form to the offeror through the action. Moreover, according to Moshal (2008), ‘Implied Acceptance’ is a type of acceptance wherein the conduct of a party or the situation helps in expressing the acceptance of the contract. Therefore, it can be better interpreted as “when party does some act as being intended by the offeror, it amounts to implied acceptance” (Moshal, 2008). Implied acceptance is an informal kind of acceptance, where there are no scenario legal procedures. For instance, this kind of scenario is observed in the case of Brogden v Metropolitan Railway Company, where there was no formal contract and the Metropolitan Railway Company thought that Brogden had accepted the contract and hence, Brogden continued to supply the coal to the Railway Company. Moreover, this kind of scene was also witnessed in the case of Masters v Cameron (1954) 91 CLR 353, where there is no scenario of formal or legal contract over the farming properties. This was because of the dispute that had taken place due to the selling price of the farming properties of Cameron, which was not negotiated properly amid the parties. As there was no formal contract, the court decided in favour of Cameron. Hence, since then it was implemented that there is a decisive need of formal agreements for any case of selling properties. Therefore, the case identified and helped to learn about the significance of formal written contract in a business to have long term sustainability. Every business henceforth should indulge into a legal formal contract before further activities (Dixon, 2004). 2.2.3 Express Acceptance ‘Express Acceptance’, is a kind of acceptance where the approval is made at the stated offer. Elaborately, the party who offers the contract states the conditions of the offer and mentions offer needs to be completely followed without any condition from the acceptor. This type of contract acceptance is seen in case of issuing a cheque from bank. The issuer states the amount of money to be transacted and the bank does not have any role in negotiating with the money to be issued (Meena, 2008). With regard to the business law, there are certain procedures through which the communication of the contractual express acceptance occurs. The postal form of delivery of the contract document can take place without any hurdle. Moreover, through telex and telegram the express acceptance can be made. The use of electronic medium like internet and emails can also be useful in the legality of the contract. Thus, communication technique used in contractual acceptance is comfortable due to the use of advanced technology (Denicola, 2004). 2.3 Analysis/Advice For the success of any organisation, it is essential to have legalised and benevolent contracts that leads to the objectives of the organisation. Legal contract takes place in several scenarios of work life as well as our personal life. With regard to small accounting practices, it can be stated that partnership amid the members can be reflected as an agreement. In this scenario, the contract takes place amid the partners, where they agree on the terms and conditions to stay together for the benefit of the firm. Moreover, there are various cases where in the work life individual need to meet certain agreements. This is seen in a loan agreement, employment agreement, promissory note, general agreement of a tender, and more. In this regard, it can be stated that for the agreement to be effective a proper process should be maintained efficiently. Agreement is also seen in case of employment, where the employer sorts out certain rules and regulations of the organisation to be strictly followed. The employee also strictly needs to follow the contents of the agreement and hence they are, liable for abiding all the stated conditions. The employee failing to meet the specified terms and conditions of the organisation is liable for facing legal actions. This type of agreement is known as expressive agreement or acceptance, where the stated conditions of the employer are rigid, without the scope of bargaining. Thus, from the aforementioned forms of contractual acceptance, it can be regarded that each acceptance has its importance depending on the situation. From the analysis of contractual acceptance, it can be advisable that the contracts should be legally implied to increase its significance. Moreover, acceptance depends on case-to-case basis as per the need of the individual and firm hence must abide by the contract to be successful. If a firm is having a monopoly in its sector, it is advisable to undergo an expressive form of acceptance. The customer of the firm is very likely to remain loyal even if the firm does not provide a scope of negotiation. This type of deal can be done through any means including the postal medium and the agents. Moreover, if two firms are having a symbiotic business relationship i.e. both of them are depended on each other, then it is advisable to undergo a conditional acceptance of contracts. In this type of contracts, it is advisable to undergo through internet and emails, to have a quicker proceedings. However, communication through postal form and agents do not affect much, as there is requirement of maximum 3 or 4 times of communication (Gillies, 1988). For any organisation to have legal advantages in regards to several contracts in the business environment, it is advisable to abide by all the postal rules and various communicational rules. The organisation is liable for the proposal for the contract, irrespective of the reach to the other party (Helewitz, 2010). Last but not the least, it is also advisable after observing the two cases of agreement which are Masters v Cameron (1954) 91 CLR 353 and Malago Pty Ltd v AW Ellis Engineering Pty Ltd [2012] NSWCA 227 that the agreements should be formal in order to have legal advantages and moreover, it should also consider the surrounding circumstances that may affect through the agreement. 3. Conclusion The essay briefly states the conception of acceptance in a contract. It suggests the different forms of acceptance, which include conditional acceptance, expressed acceptance and implied acceptance. It is found that contracts are seen in both personal lives and in the work life. There are various ways through which, contract is created in day-to-day to life. Moreover, for any corporate organisation to be successful, it is very decisive that the organisation has holistic knowledge of different forms acceptance. Hence, the organisation should have a legal benefit when essential. Depending upon the organisational objectives, different forms of contractual acceptance can be applied. Moreover, the modes of communication to the offerer or offeree should also be selected depending upon the need of the organisation. However, the use telex and telegram is no more in use worldwide, due to its high cost and slow delivery of the message. Nevertheless, the development of technology has given the faster and cheaper form of communication through internet and emails. Last but not the least; the agreement should also consider the legal formalities and the external affect through the decision. Hope the letter helps you in meeting the requisite regarding contractual acceptance. If there is any issue that you would like to discuss, please do not hesitate to further contact. Yours faithfully Name References Allens, 2012. Allens Contract Law Update 2012. Contract Information. [Online] Available at: http://www.allens.com.au/pubs/pdf/ldr/contldr12dec12.pdf [Accessed September 22, 2014]. Denicola, R., 2004. The Law of Contracts. Jones & Bartlett Learning. Dixon, W. M., 2004. Do We Have A Legally Binding Contract? The Queensland Lawyer, Vol. 24, Iss. 5, pp. 235-237. Gillies, P., 1988. Concise Contract Law. Federation Press. Helewitz, J. A., 2010. Basic Contract Law for Paralegals. Aspen Publishers Online. Krol, J. J. P., 1993. Construction Contract Law. John Wiley & Sons. Meena, R.L., 2008. Texbook on Contract Law Including Specific Relief. Universal Law Publishing. Moshal, B.S., 2008. Modern Business Law. Ane Books Pvt Ltd. Read More