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AS and A Level: Law of Contract
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I hope, these will be helpful for you to understand your legal position. What makes an offer binding? A legally binding offer has to be certain in its terms, intended to do business and communication of that intention. Evans Furniture Ltd. on the 1st. of February sent you a letter, describing the particular type of desk -the 'Ambassador'- and announcing to 'clear out' the 12 desks, which remain in stock in the warehouse for �250 per desk by the end of the month.
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They cannot therefore be sued for trespass although it may be considered a nuisance at common Law. When an act is authorised by statute it would be assumed that all future consequences would have been taken into account. For example in the beginning of the railway system it was not always possible to prevent the escape of spark therefore the railway company could not be held responsible for any fire caused by the escape of sparks. In Fisher v Ruislip UDC  Ruislip council had been authorised to provide air raid shelters in or on the highway under the Civil Defence Act 1939.
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These modern types of communication have ensured that responses can be as soon as the respondent has read the message as messages are sent immediately. In addition, most modern methods of communication now alert the sender when the message has been read. A reasonable time in contracts usually apply to contracts with no time limit, a reasonable time is decided by the court based on the circumstances as demonstrated in Ramsgate Victoria Hotel v Montefiore (1866) where an offer to buy shares had lapsed when the company responded 5 months later.
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The impact of exclusion clauses on the consumer of goods and services in England and Wales is no longer of any significance. Critically analyse the statutory controls that exist over the use of exclusion clauses and assess the truth of this statement.
The Unfair Contract Terms Act 1977 has a significant effect on exclusion clauses. It imposes statutory limits on the avoidance of civil liability through exclusion clauses in business contracts. It only works when one of the parties were dealing as a consumer and another is not. It is interpreted widely, including businesses which are dealing as consumers. l However, the control may not extend to exclusion clauses that are not incorporated into the contract. In the case of R & B Custom Brokers case, the defendants was a shipping company who had purchased zlsome cars, which was merely incidental to their business and not integral to it.
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They are thus giventoo much discretion and this may potentially be unjust to parties who has really mean the terms to be construed as condtions.zl In the case of Hong Kong Fir Shipping vKawasaki, Here the claimants have chartered a ship for 2 years. Due to faulty engines and inadequate staff, 20 weeks of the charter has been lost to carry out repairs.
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Offers last forever unless expressly revoked. Critically evaluate this statement as it relates to the formation of contracts.
First and foremost, an offer will lapse once the offeror withdraw an offer which is known as revocation of an offer. In the case, Payne v Cave, it establishes the principle that an offer may be withdrawn at any time up until it is accepted. In Routledge v Grant, the defendant made a provisional offer to buy the claimant?s house at a specified price, ?a definite answer to be given within six weeks from date?. It was held that, regardless of this provision, the defendant still had the right to withdraw the offer at any moment before acceptance, even though the time limit had not expired.
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Misrepresentation Case. After a few days use, Bianca discovered the Adventurer ZX was totally unsuitable for her busy bar and restaurant.
After a few days use, Bianca discovered the Adventurer ZX was totally unsuitable for her busy bar and restaurant. The sound quality was poor and even at full volume it could not be heard over the voices of her customers. To make matters worse, the system was very complicated to operate. Advise Bianca whether she has any contractual rights and remedies for misrepresentation. This question is concerned with misrepresentation. A misrepresentation is defined as a false statement of fact that induces another party into entering a contract. This question requires advice to be given to Bianca as to whether she has any contractual rights and remedies for misrepresentation.
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However, a compromise must be reached before any sort of agreement can be reached. Acceptance of the counter-offer rather than the original offer will only be considered an agreement. As seen in the case of Hyde v Wrench , complications arise where a counter offer is rejected by the offerror and the offerrer decides to pay the originial amount stated in the first offer. It was ruled that because the first offer was initially rejected and a counter-offer made, the first offer couldn’t be considered a legally binding contract. The counter offer made by Khan & Co on Tuesday 6 Sept, willing to pay £17500 for the steel also allowed Brown & Co six days to mull over and make a decision.
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Erik leaks the report to the Morning Star, which duly publishes it. Sven also informs Matius, over a drink in the pub that shares in Bell Enterprises Ltd are bound to prove a sound investment. Erik, Matius and Annika, a reader of the Morning Star, purchase shares in Bell Enterprise Ltd and lose a substantial sum of money when the shares in the company drop in value. Advise Sven as to his potential liability. 1. Negligent misstatement - (when a duty of care is imposed upon a defendant for negligent words which cause loss to the claimant)
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Contract Law Legal Briefing on Lucy v. Zehmer Supreme Court of Appeals of Virginia (196. Va. 493, 84 S.E.2d 516 (1954)
While having drinks, Lucy persuaded Zehmer to write up a contract for the sale of Ferguson Farm to Lucy for $50,000. Zehmer wrote up a contract for thus sale of land to Lucy for $50,000 complete. Lucy brought suit for specific performance when Zehmer refused to complete the transaction. The trial court ruled for Zehmer holding that Lucy had not established a right to specific performance.
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The Legal Principle of Frustration has been limited by the Courts. Explain why and how this has been done
There are three main types of frustrating events; the first Impossibility is where the event makes performance impossible. This may happen due to the destruction of the subject matter or if it is otherwise unavailable as in Taylor v Caldwell in 1863. But it must been held or intended by both sides to be the subject matter. The second Illegality is where the performance of the contract becomes illegal to do due to either the outbreak of war or the change of a law. An example would be Avery v Bowden in 1855 when a war broke out and Russia became the enemy, trading with them would be illegal.
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Wrench decided to reject Hyde?s offer therefore forming no contract. As soon as Wrench rejected this offer Hyde said he would go back to the original price which he could not, so he was unable to sue Wrench when he tried to sell to another buyer. Hyde was unable to sue due to the counter-offer he had made. This idea of counter-offers can cause problems when terminating an offer because how can you tell when a counter-offer has been made and when a mere enquiry has been made.
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£ buyer: $ $ $ Signature: % % % signature: % % % The first element of the contract is the offer. This is where an item or service is being offered by one party to another party. It is simply what is offered to the other party in return of that persons promise to act. The terms of the contract on which the offer is made should not be ambiguous, in other words shouldn’t be unclear. The terms should be specific and certain.
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Offers may be withdrawn at any time up until acceptance Discuss the extent to which you agree with this statement and analyse the rules which determine the validity of the withdrawal of an offer.
An offer can be accepted or even rejected. In addition to that, it can also be revoked at any time up until acceptance. This is also known as revocation of an offer. This principle was laid down in an old case of Payne v Cave . Once an offer has been accepted by an offeree, a binding contract is formed and the offer ends ultimately. Nevertheless, there are a number of rules apply in relation with the withdrawal of an offer. If an offeror withdraws from an offer but fail to communicate his withdrawal to the offeree, the offer is still considered as valid.
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Law of Contract. With reference to case law, identify and discuss whether the common law rules relating to acceptance of offers provide certainty for businesses.
Firstly, the offeree must flower the offer as contracted and not trying to introduce new term. Secondly, the acceptance must subject to contract. Finally, acceptance must be communicated. So in my opinion, if the offer Accords with the rules above, the common law rules which relating to acceptance of offers can provide certainty for businesses. (Adams, 2012) In a unilateral offer, the acceptance relies on the obligation of offeror. For example, if a store offers a discount, only the store is obligated. No one has promised to take the store up on the offer, but if someone does, the store is responsible to give the discount.
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