Business Law, Promissory Estoppel - Assignment Example

Student Name: Tutor: Title: Business Law Course: 1556 Words Question 1 Issue Jen was in need for a DJ for her grandparents’ wedding anniversary. Jen goes online and looks at the profile of Tim who is 17 years old professional DJ. She emails Tim asking more information about her his services. She asks about what Tim charges for his services. Tim forwards the details about services he offers and charges. Jen replies back and tells Tim that he is interested in hiring him and asks about Tim’s availability on that day. Jen says she is prefers the weekend special package. She expects the party to last four hours and enquires what extra charges will be levied if the party goes beyond the four hours. She asks whether Tim has Cuban music that is fancied by her grandparents. Tim replies that he has plenty of Cuban Music and he is available on the stated date. He explains that he charges $30 per extra hour. Jen does not reply to Tim because she has heard that there is another friend who is willing to offer DJ services for free. Rule Anyone has a right to enter into a contract save for minors, people with unsound mind and some felons. The contract has to identify two parties. All the parties involved have to agree on the offer made by one of them and accepted by the other. Secondly, something that has value has to be exchanged for something else that has value. There is what is called consideration. This what the parties are gaining from the contract. This can comprise of services, goods, or a pledge to exchange these items. For a contract to exist it is fundamental that there must be an offer. The basic rule of law states that a legal contract exists when one party makes an offer and the other party accepts. This can be orally or in writing. A valid contract must have the parties’ consent that has to be free, mutual and well communicated across the parties1. The offer can be revoked as long as it has not been accepted by the other party. Application There is no enforceable contract between Jen and Tim and Jen is free to change her mind about Tim. Jen did not reply to Tim’s offer after hearing that she could get the same DJ services for free from a friend. Therefore there was no acceptance for the contract to be valid. Services have value but Jen did not accept them and Tim could not just show up at the party without getting confirmation and consent from Jen. Conclusion Jen can go ahead and use her friend as a DJ. Tim is still a minor and he needs a guardian in order for her to enter into contract2. Question 2 Issue Jen wanted a cake for the party. He was to Delish Cakes and spoke to the owner, Mr. Simon. Jen explained that the party was being held in honour of her grandparents and it had a Cuban theme. Simon suggests a certain type of cake and Jen agrees that would fit perfectly for the party. Simon can provide Cuban-style cake decorations. Jen is a hurry to catch a train and hence she leaves without finishing filling in the order form. She takes the order form with her and promises to come back. Jen does not answer Simon’s call when he calls on Tuesday. He leaves a message asking for the order form that Jen has. He further states that he will commence making the Cuban cake decorations. Jen does not call Simon back even after listening to the message. She is so busy that she had no time to fill in the order form. She decides on Friday to make the cake by herself, she calls Simon to inform him of the new developments. Simon is furious since he has spent hours making the Cuban decorations. Rule Promissory Estoppel with the law of contracts provides that if any party changes his or her position substantially either by acting or forbearing from acting with regard to a gratuitous promise, then the party has the ability of enforcing the promise although the essential elements of a contract are absent. For a promissory estoppel to be invoked there are certain elements that have to be met: The promisor must have made a promise that is significant enough to cause the promise to act on it. The promisee must have relied on the promise to take some action The promise must have suffered significant loss or detriment Lastly, relief can only come in the form of the promisor fulfilling the promise There is no essence of a contract. A promissory estoppel is used where there is no contract in existence. The court has to determine whether there was detrimental reliance or the position of the person promised and acts on the promise. Application Simon relied on the information given by Jen to purchase items that he used for Cuban decorations. Jen took with her the order form and promised to fill it in and return to Simon. When Simon called and Jen did not pick up, he told her that he will begin making the Cuban decorations.3 It is at this point that Jen would have called Simon back and asked for more time to consult before Simon committed himself to making the cake with a Cuban theme. Jen does not communicate until Friday when she decides to make the cake herself since she worried that Simon’s cake will be expensive. Jen’s silence made Simon to go ahead and prepare the Cuban decorations. He thought she was too busy to get back to him. Simon was expecting her to return the order form when it is filled in. Simon did not want to let Jen down and hence he began working on the Cuban decorations. Simon has already spent money purchasing items for the Cuban decorations. If Jen does not live to her promise and allow Simon to make the cake, Simon will incur a loss. Jen can only salvage the situation by allowing Simon to make the cake for the party as creed despite there no being a contract4. Conclusion Promissory estoppel is relevant to the dispute between Jen and Simon from Delish Cake5. Jen has to go back to the promise and allow Simon to make the cake to avoid him incurring unnecessary losses. He spent money buying the Cuban decorations that he cannot use on someone else’s order. Question 3 Issue Jen need help in setting up the venue where the party will be held. She sends a text message to her cousin Adam asking him to help her put up the balloons and streamers for the party the coming Saturday. Adam is ready to help but he wants to know what it is in offer for him. Jen texts back saying Adam has to return the favour of her helping him with the college assignment. However, Adam is not convinced. Jen goes ahead to text her other cousin fearing that Adam may not show up. Rule For a contract to be viable all the parties must be in agreement. An abject of value like a service or good must be present. The other party has to agree or there must be acceptance for the contract to hold6. One party has to make an offer and the other one has to accept the offer. Application There is no enforceable contract between Jen and Adam. When Jen helped Adam with his college assignment she did not tell him that she was doing so because she expected Adam to help her with setting up the venue for the party7. Jen was just helping out and she should ask Adam to just come and help out. Conclusion Adam can turn down her invitation if he has other engagements. Question 4 Issue Jen texts her other cousin asking them to come and help her prepare for the party the following Saturday and she was going to pay $20 in return. Jen’s Uncle by chance sees the text on his daughter’s phone. He makes up her mind to come and help Jen set up the venue for the party so that he is paid the $20. Rule For a contract to be viable all the parties must be in agreement. An abject of value like a service or good must be present. One party has to make an offer and the other one has to accept the offer Application Jen was sending the text to her cousins, Bill saw the text by mistake and decided to come and earn the $20. There was an offer made by Jen but the other parties did not accept it or show that they had consented to it. Bill cannot claim that he is entitled to the $20 because of the text she saw in his daughter’s phone by chance. Conclusion There is no enforceable contract between Bill and Jen. Read More