We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

The valid contract - Case Study Example

Comments (0)
In a valid contract, the promise made by one must be accepted by another and it must be legally binding to both parties. A promise is an offer made by one to do or not to do something to another. When the offer made by the former (promissor) is accepted by the latter (acceptor), it becomes a contract…
Download full paper

Extract of sample
The valid contract

Download file to see previous pages... However, a point to be noticed in this context is that to be legally binding, the promise made by the party and its acceptance must be aimed at forming a legal relationship. Anything made out of natural relationship (or domestic arrangements) are assumed not to create any legally binding obligations. Nevertheless, the case -Parker Vs Clark [1960] NLR 286- demonstrates that although domestic arrangements are assumed not to create legally-binding obligations, in some cases this assumption may be overruled by the facts .
obligations. Moreover, Irene made the offer without having any intention to avail consideration from Gina. The offer is made just out of natural relationship. Therefore, it is not possible for Gina to approach the court for justice and get the promised money from Irene. Though, Gina has made some promises after the promise by Irene, this does not amount to a promise, which is legally enforceable.
In this context, the case Balfour v Balfour [1919] 2 KB 571 is worth notable as "it demonstrates the strong presumption that domestic agreements, even if framed in contractual terms, are not intended to create legal obligations" (Law Glossary, 2006).
Usually, when an order is made by one party to another for the supply of certain goods for a consideration, it becomes a contract. Both parties are legally binding to the terms of the contract are obliged to perform their part. If any of them makes a default, the aggrieved party can claim compensation from the defaulted party as the transaction is legally enforceable. When one is making an offer to another on the strength of the offer made by a third party, and if the third party makes a default and it subsequently results in the non performance of the offer, the third party is no way affected by the default of the promissor.
In the given case, though Irene has made a promise to pay Gina a sum of 15000 and subsequently defaulted to pay the sum, the offer (s) business or personal made by Gina will in no way affect Irene as the first offer itself is not a legally binding one. Therefore, it is not legally obligatory for Irene to pay the remaining amount to Kolumbie, the aromatherapy oil supplier.
Is Gina liable to Jaymark Fitness for the 4,000 balance on her debt
When an offer is made out of the strength of the offer of another and the subsequent default of the original offer, the second offer cannot be performed and will result in breach of contract. But, it is to be noticed that whether the original offer is legally binding or not. In the given case, the original offer is a domestic arrangement and it is out of the natural relationship between Irene and Gina. However, when Gina has placed an order for 10,000 worth goods and after the default by Irene, Gina could not keep the promise that the payment shall be paid later. Gina informed Jaymark that she could not pay the 10,000 owed but could manage 6,000 and that if Jaymark tried to sue her for more, she would declare herself bankrupt and Jaymark would get nothing at all. Jaymark reluctantly agreed to accept the 6,000 in full and final satisfaction of the debt. Therefore, Gina is not ...Download file to see next pagesRead More
Comments (0)
Click to create a comment
Finance - Valid Contract
A contact therefore gives partiers a legal remedy in case one party fails or breaches the terms of agreement (McKendrick, 2007). Different types of contract include express contracts, implied contracts, executed contracts, enforceable contracts, and void contracts among many more (McKendrick, 2007).
3 Pages(750 words)Assignment
Contract law
The parties should be able to rescind the contract under mediated caution. Rescission of a contract, based on mutual mistake, involves both legal and ethical considerations that should be made in justifying it. A legal approach to the issues identifies termination of a contract under mutual mistake because this makes a contract void per se.
3 Pages(750 words)Case Study
Australian contract law problem question
In the given situation, the issue is whether the parties (Elaine and Kramer) have reached an agreement Specifically, has Elaine made a properly constituted offer and validly accepted by Kramer The offer, made by the offeror to the offeree, is the the statement of a willingness to be bound on certain specified terms.
8 Pages(2000 words)Case Study
BUSINESS LAW High School Case Study
(Alabama Civil Code, Sec. 7-2-205). Here the offer to sell was clearly stated. It included all details pertaining to a valid contract except for consent of the parties: the lawful object which is the sale of handblown crystal goblets and the sufficient cause or consideration in the amount of $50 per goblet (California Civil Code Sec.
2 Pages(500 words)Case Study
Law of contract
In order to give effective analysis to this question it is important to look at relevant Irish case law on this issue in order to determine whether or not such actions constitute a binding contract enforceable in law.
8 Pages(2000 words)Case Study
Contract law,
A contract is a legal binding between two parties (individuals or companies at either side) which is signed by both parties at their full consent after having a "clear" understanding of the terms set forth. The primary attributes of a contract are: Contracts should always be written with all the terms clearly legible, numbered and referenced (if any reference to supporting documents are required - example, offer letter or technical specifications).
7 Pages(1750 words)Case Study
In such a case if one party, without the mutual consent of the subsequent party, fails to perform his obligation, the aggrieved party has the right to seek redress for the breach of the contract through normal enforcement procedures - civil court. There are two major types of contracts: contracts by deed and simple contracts.
8 Pages(2000 words)Case Study
English Contract Law
Even oral agreements become enforceable. The crux of the issue is that there is a contract made between Dodgy Tony Limited and Gordon and since there is a valid contract, both the parties to the contract are bound to fulfill the terms of the contract. Gordon is entitled to claim his money back which he has sent to Dodgy as the company has violated the terms of the contract.
4 Pages(1000 words)Case Study
Commercial Contract
b.) Offer: This is the part of the contract that defines the proposed product or service that will have to be acceptable on binding terms to proceed with the contract. In this case study, a second hand laptop was on offer at original price of $200 dollar.
4 Pages(1000 words)Case Study
Formation of a Contract
She really needed a car that was worth the 3000 she had been lend by her Stepfather but she came across an advertisement for sale of a second hand car that was going for 3200. There was a Janet's telephone number who owned the Black Ford Fiesta that was being sold and Barbara called the number in response to the offer.
4 Pages(1000 words)Case Study
Let us find you another Case Study on topic The valid contract for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us