Commercial Law and the Law of Contract - Assignment Example

Commercial Law Students Name: Institutional Affiliation: Department Course: Date: Law is construed as a set of rules governing the relationship and the way of contact among different people. Moreover, it also refers to a system of regulations which are enforced by business institutions to abide in enhancing consistencies in business operation. Laws has been classified and applied according to the set laws in enhancing legal bindings[Not09]. Law is a binding agreement which is actionable upon breach and damage or suit is remedies for the breach. Law has been categorized to serve best in the jurisdiction set in, for example the commercial which describes a set of principles governing the business relationship and processes involving contractual obligation among parties involved In the law of contracts some formidable ingredients should be present to give sense as law of contract. This are some of the characteristics that will enable one to notice whether its law of contract. There must be parties to the contract, mutual agreement, consideration and time of the contract. Case issue Law of contract exist as a result of two parties of age where in the case, both parties are present, the one offering internet products and one who needs the services[Swe07]. Kathy is just a mere invitee of the contract as she is offering meaning that her intentions are not valid until a valid person accepts the offer upon payment of some consideration. Invitation to treat is some intentions which makes one enter into the contract, once accepted becomes binding in law. As per the definition of law is that it has some pragmatic rules to be followed by both parties privy to the contract. All the above parties are attached to some rules that will govern their behaviors and conduct in the contract[Har]. Proper communication is key, so as both parties have valid terms explained not to injure or some to have more advantage than others. The above issue is to determine the legality of the contract and discuss if Hamidi is bound to the agreement or not. Various aspects of the agreement will be looked into as this will determined its validness. In the case above, Hamidi is accentuated to the law of contract as the contract was the acquisition of and use of internet. There is two parties that is the offeror and offeree which is embraced by acceptance upon payment of some consideration. The issue is to ascertain the validness of the contract after critical evaluation of the contract[Bea102]. The valid contract will have some characteristics attached to. There must the person initiating the contract and the party to take upon payment of some consideration. The contract should be accepted with no form of coercion or force and intimidation. The two parties should have the intention of creating legal binding. This is articulated by Hamid need of internet and Kathy offering internet contracts. Law of contracts have a specified period of time upon which can be terminated or some conditions can frustrate the contract and lead to its end. Law of contract may have implied terms which are binding and should be adhered. Law of contract to supply internet by Kathy to Hamid has some considerations attached to. Kathy is selling the contract for some amount after which if not paid or the contract ends before the specified period of time of 2 years, Hamid is required to pay some damages to Speed Connect Pty Company[Not09]. This damages paid is meant to cushioned the contract from premature termination. This is because of the fact that a contract is a legal binding which only can be terminated without the infringement of any party privy to the contract. Rule The rule is the main determinant to accentuate the validness of the contract. The above case is to accentuate on the legality of the contract upon looking into the contract as to the rules followed in arriving at the agreement[Bea102]. Some contracts are binding because of their nature for example written contacts will be binding once written but not orally administered. The above contract was written meaning it had some implied terms on it which are binding in the contract. Implied terms are binding once it’s written on its face of the contract but the other party has power to proof in court that some terms were not expressly implied. The court will have some jurisprudence on the matter. For a contract to be valid there must good communication as two parties should mutually agree without any form of coercion or misrepresentation. The terms of the contract should be expressly implied to both parties[Wel07]. As per the above case its evidence that Kathy deviate from the norm of using telephone translation and hurriedly makes Hamid to enter into the contracts. Even though Kathy has used some technical language its evidence that Hamid entered into the agreement without proper understanding of the terms of the contracts. The contract does specify the termination of the contract as to the time of two years; this is accustomed to a penalty of $1200 if the contract ends prematurely. Hamid is shocked when she is charged $1500 as damages as this wasn’t part of the contract terms. Hamid has to proof beyond doubt of this scenario so as to pay the required amount. There are some rules governing the discharge of the contract, only those parties privy to the contracts have the power to end the contract[Not09]. The contract can come to end after some conditions are fulfilled, after the lapse of the set time the contracts comes to an end, termination of the contracts by the parties upon mutual agreement, frustration of the contract, happening of some conditions which will mutilate the contract and the failure of some conditions to be adhered to are some of the reasons that will lead to contract termination. When the contracts come to an end without following the required conditions will lead to some damages paid to compensate the injured party[Swe07]. The availability of some extra costs attached to the contract by Hamid led to the person requesting for the termination, so Hamid has to pay some damages as the contract come to end before its actual period of time. Hamid with the impression that termination of contract is by any time without any damages is wrong, as the other party is aggrieved thus in need of payment of some damages caused by Hamid. Application This is the actual application of the rule to give its feedback on the validness of the contract upon looking on the state of the contract by the two parties. The rules will be a mirror used to ascertain the validness of the contract. In the above case it’s evidenced that the contract cannot go on because of the fact that Hamid is no longer willing to use the internet services as per the condition of high cost in the contract[Bon09]. There is many factors available in this case as the terms of the contract weren’t communicated properly meaning Hamid entered into the contract without proper understanding of the contract, but this doesn’t deter him from the payment of the damages because all contracts signed are binding and legal. The law will construed to mean that Hamid had full knowledge of the contract terms once she appended her sign on the contract. There are some of the penalties accustomed to the breach of contract; it’s the court discretion to set out the penalty as the case[Bea102]. As per the agreement its evidence that Hamid was required to pay $1200 upon termination of the contract before the lapse of two year term, but the company has overcharged the penalty by $300. Conclusion The law of contract is a wide kind of law which has its own characteristics, the aforesaid terms of the law of contract should be followed to deter one from going against the wishes of the law. Those parties entering into an agreement should have full information of the contracts and all details as to the contract. For the contract to be ruled valid or not valid will arise after critical analysis of many issues which will ascertain the validness. The contract with speed connects is valid as Hamid without understanding the terms of the contracts she went ahead and appended her signature meaning she will abide by the rules of the contracts. Any signed document is meant to mean that you have full specification of the contract thus no regret whatsoever. Hamid can get out of the contract by paying the injured party some damages as it was specified in the contract. The damages will paid to Speed Connect Company an amount of $ 1200 but not $1500 as the contract spell out the required amount. Bibliography Not09: , (Nottage, 2009), Swe07: , (Sweeney, 2007), Har: , (Hartley, 2008), Bea102: , (Beale, 2010), Wel07: , (Weller, 2007), Bon09: , (Bonell, 2009), Read More