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Law and management - Essay Example

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a) For the purposes of the formation and termination of the contract, it is imperative to define the word contract so as to try to gain a clear understanding of the issues arising from the whole concept. Koffman L & McDonald E. (2007:1) define a contract as, “a legally…
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Download file to see previous pages Simply put, if you promise that you will do something for another person and in return, that person agrees to pay you something, then you and that person have made a contract. A contract can be in verbal or written form but the most important thing is that there would be an agreement especially between two parties. Likewise, according to the labour laws of many countries, both the worker and the employee are bound by certain statutory regulations that would ensure that no party will breach the agreed contract. Indeed, when a person has decided to enter into an agreement with someone, both parties should have a common ground of understanding of the nature of the contract they would be agreeing upon so as to avoid conflict and misunderstanding in the future.
(ii) When another party has frustrated the contract entered into between the two involved parties, it can be said that this other part would have failed to owner the obligations stated in the contract in the long run as a result of difficult conditions arising during the course of the contract. Thus, according to information obtained online, the issue of frustration here is about the subsequent impossibility of the contract which may be a result of an unforeseeable event to both parties. In most cases, this event would be beyond the control of both parties such as death. No mortal being is able to stop death hence this becomes impossible for both parties to stick to the contractual obligations since it would be difficult to press ahead especially in the absence of a key actor in such a scenario.
(b) The case involving Harry and Ian can be attributed to frustration of contract which in this case can be summed up as a legal termination of a contract as a result of unforeseen circumstances which may prevent that particular contract to achieve the intended goals or objectives. Whilst Ian had agreed to buy a motor vehicle from Harry, it is ...Download file to see next pagesRead More
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