LW2903 Business and Law
Mid-Semester Coursework Assignment
The case being discussed can demonstrate the formation of contract and the elements which are offer, acceptance and consideration. The scenario between Alex and Bob revealed the establishment of contractual relationships between these two parties. The situation will be analyzed in four areas.
Firstly, we shall examine the contractual relationship on the fence issue. Bob proposed that he would go to the court for an injunction about Alex because of the complaints of the high fence erected by Alex next to Bob’s farmland. Alex agreed and promised Bob that he would reduce the height of the fence if Bob agreed not to sue him. Then, they had instructed their solicitors to put this oral agreement into a written contract. Later on, Alex was being told by a law professor that his fence was perfectly lawful and hence Alex preferred not to keep his promise.
To check whether the above scenario is a legally enforceable contract or not, we should firstly distinguish if Alex and Bob both give the considerations. Consideration is something of value to move from the promisor in order to make the promise enforceable. It is given in exchange for getting something from another person. A valuable consideration must constitute either a benefit (right, interest or profit) accruing to one party or a burden (forbearance, detriment, loss or responsibility) suffered or undertaken by the other. Consideration must be real and genuine and it must have some value, usually measurable in monetary terms. Although Alex’s fence was told to be perfectly lawful, he could avoid the trouble of going to the court for injunction by Bob if he reduces the height of the fence. Take the example from Ward v, Byham, performance of a personal legal duty is a good consideration too. Therefore, the promise of reducing the height of the fence is still enforceable given that the fence was lawful. The discard of going to the court...
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