Contract between Jackson and Nu-Shoes Ltd - Case Study Example

STUDENT NAME INSTRUCTOR NAME INSTITUTION DATE OF SUBMISSION Response to question one The parties’ privy to the contract includes Jackson and Nu-Shoes Ltd. Nu-shoes Pty Ltd is the offeror of the contract while Jackson is the offerer of the contact. The contract in the case involves the supply/delivery of computer software for installation. Jackson offered to deliver computer software and acceptance came from the Nu-Shoes Pty Ltd. Misty was given the responsibility of running the family business and was free to enter into contact on behalf of the company. Misty and Jackson were cousins. Consideration for the contract involved payment of $50, 000 and the offer was to remain open up to 5pm Friday. The contract also provided that acceptance of the contract was to be through email, fax and/or post. Legality of the contract On Tuesday, Misty accepted the purchase of the computer software for $50,000.Jackson delivered the computer software as agreed with payment invoice. Family relationship is not considerations indetermination of legality of the contract. The aspect of Jackson and Misty being cousins does not entitle a business discount of $5,000 to the business. Discussion A contract is a legally binding agreement between parties privy to the contract. Jackson can enforce the contract against Nu-Shoes Pty Ltd. Jackson offered to deliver the computer software for $50,000 which was accepted. The intention to be legally binding agreement was through delivery of computer software to Nu-shoes Pty ltd with payment voucher. The contract became binding the moment Misty sent acceptance email on Tuesday to Jackson. A contract is legal and binding as long as offer and acceptance is within the stipulated time. The offer was open until 5pm Friday and actual delivery of contractual goods (computer software) by Tuesday. There was no lapse of time which would have led to the breach of contract. Jackson has a right to demand a full amount of $50,000 for the delivery of computer software. Consideration is the value attached to the contract. Intention to enter a legally binding contract is determined by presence of a business arrangement and absence of family relationship. In the present case, presence of business arrangement is the determinate factor to determine intention of the contract. There is intention of presence of family relationship but the actual contract was of commercial nature which makes the contract legally binding in our present case. The contract is legally binding since the two parties’ privy to the contract clearly expressed intention to be bound by the contract. Misty accepted the offer by sending an email before Friday while Jackson delivered the computer software with a payment invoice clearly indicating consideration of $50, 000.the contract to deliver computer software is enforceable as there seems to be intention of legal bind in the actual contract. The contract is therefore enforceable. Consideration is defined as something given for a promise given (Miller, 2013). Consideration in the case involved payment of $50,000 for a promise of delivery of computer software to the company. Actual delivery of computer software was sufficient consideration in the contract. Evidence of deed in the contract involved delivery of computer software as agreed with payment invoice. Consideration involved a payment of $50,000 which is actually something of value to Jackson. A decision to pay $45,000 is seemingly an intention to breach the contract which is legally binding. Misty had promised to pay $50,000 for the delivery of computer software to Jackson. Jackson promised to deliver the computer software to the company and actually honored his promise. The issue of family relationship does not quality the discount argument on the part of Misty. The promise to pay $50,000 was a valid consideration as it was the actual contract price. The decision to pay $45, 000 with $5,000 as contract discount is an invalid consideration on the part of the defendant. The two parties had capacity to enter into contract as they were both adults and of sound mind parties. The contract exists as the intention to enter a legally binding contract and consideration is valid in the prevailing case. Jackson can enforce the contract against Nu-Shoes Ltd as there was offer and acceptance regarding the contract. Jackson offered to deliver the computer software and Misty accepted the offer which was valid up to 5pm Friday. The elements of consideration and intention to establish a legally binding contract can be established from the facts of the case. There is clear illustration of facts regarding the two facts in the case as argued above. The offer in the contract is the delivery of computer software and acceptance took place through email. Valid consideration involved a payment of $50,000 without discount. The demand for a discount of $5,000 is considered as past consideration as it was not agreed in the initial offer.in business agreements there is nothing like family discounts. Business nature agreements are not guided by existing family relationship. Misty had initially accepted the offer to get delivery of computer software at a consideration of $50,000.it is an invalid argument on the part of Misty that since they are family relatives they do not have to adhere strictly follow the agreement. This was a business nature agreement which meets the tenets of elements of valid agreement. The contract is enforceable as there is an element which guarantees termination of the contract.in case of a dispute regarding payment for the delivered computer software, the plaintiff (Jackson) can sue Nu-Shoes Pty Ltd for damages. Damages will involve legal costs and full compensation of the contract cost (consideration of $50,000). Question two Introduction The elements of agreement required for formation of a valid contract include offer, acceptance, consideration, legality of contract and contractual capacity. Offer involves expression of interest in a contract. Acceptance involves promise to fulfill contractual obligations. Consideration is something of value in exchange of a promise. Consideration need to be sufficient and past consideration is not sufficient consideration for a valid contract to be enforced (Bonell, 2005). Offer and acceptance represents core elements of a valid contract. The offer involved an offer of a grand prize of a Mazda CX-9.this was a promotion gimmick used as a promotion tool used by Chicken Galore restaurant. Presentation of contractual facts is necessary for a valid contract. Misrepresentation of facts in order to induce a party to a contract amounts to invalid contracts (Dimatteo, 2013). Sales promotion meant to induce buyers to increase or enhance market present of business tends to misrepresent facts to the disadvantage of the aggrieved party. Brian Smith Brian Smith acted on the promotion and ordered 25 Chicken boxes and eventually redeemed scratch cards coupon from the eating session. The notice which claimed to cover up for the printing error was tantamount to misrepresentation of facts. Brian had participated in the eating marathon so that he can win the Mazda CX-9.The apology was offered while he was in hospital and therefore there was no sufficient communication in regard to the apology.in the initial offer there was nothing like only one scratch card would win the promotion. Chicken galore declared the promotion null and void while Brian was in Hospital. It may have been difficult to inform every participant about illegality of the promotion but the fact remains the printing error was not caused by the happy participants such as Brian. She is nothing in the sales promotion offer which can be said to be destruction of the subject matter of the contract which can terminate the contract in specific regard of Brian. A printing error cannot be regarded as destruction of the subject matter of the initial contract. An apology in form of printing error amounts to misrepresentation of facts and coercion on the art of participating parties. Since Brian was sick at the time of cancellation of the offer and the cancelation notice was covered, Brian is entitled to the grand prize of Mazda CX-9.Facts such as chicken Galore had difficulties to cancel the promotion are immaterial on the part of Brian. The winning of a grand prize was an offer to the whole world which the restaurant needed to take extra careful measures before placing it open to the whole world. Printing error was a negligent act on the part of the restaurant. Christian A chicken galore was not obliged to provide a Mazda CX-9 to Christian. The sales promotion was an offer to the whole world which was intended to serve as a sales promotion on the part of Chicken galore. A sufficient apology in regard to the printing error of tickets was given by the Chicken galore and a notice was also offered to the general public. Even the initial offer was intended to promote sales for the restaurant. Christian is said to have scavenged through bins of the restaurant and acquired 50 coupons. Act of scavenging amounts to misrepresentation on the part of Christian. The scavenged coupons do not represent valid consideration for Christian to be entitled to the Mazda CX-9.Chrisitan will not suffer any loss in the event She is not given a Mazda.in conclusion, there is no binding and legal contract which will make Christian to demand a grand prize from the Chicken Galore Restaurant. REFERENCES Bonell, Michael Joachim. 2005. An international restatement of contract law: the UNIDROIT principles of international commercial contracts. Ardsley, N.Y.: Transnational Publishers. DiMatteo, Larry A. 2013. Commercial contract law: transatlantic perspectives. Miller, Roger LeRoy, and Gaylord A. Jentz. 2013. Fundamentals of business law: summarized cases. Mason, Ohio: South-Western Cengage Learning. Read More