Contract Law Case Study

Only available on StudyMode
  • Download(s) : 794
  • Published : December 8, 2012
Open Document
Text Preview
The Business School| |

Assignment Topic Due Date: Friday, noon, of week 8
Semester Two 2012

word count:1470 words
1.in this situation, first we need to identify if there is a legal binding contract, a contract is a agreement which the law will enforce, a contract is a part of common law, common law is also called custom law, it is made by the judge to protect the community against the crimes, when an issue goes to court and there is no statue law that covers it, a judge will hear the case and issue a verdict. the record of this verdict becomes a precedent so that when similar cases arise, other judges may take into account the penalty previously issues. previous judgements therefore form the basis for common law. it is case laws that must follow' the doctrine of precedent' which means ' a court is bound to follow the decision of all courts superior to it in its own court hierarchy.

in this situation, contract law is important because it affects service agreement here, there are six essential elements of a contract, which are: 1. Offer- a promise to do something together with an intention to be contractually bound on acceptance by the other party. it can be made to one person,an identified group of people or the world at large. 2. Acceptance-a final an unqualified assent to the terms of an offer. it must be communicated by words or actions

Offer and Acceptance are the steps that need to be taken to create a contract in the first place 3. Consideration-the price paid by the promisee for the promisor's promise. consideration must be something of value in the eyes of the law, but it need not be of an equivalent market value to the promisor's promise. if there is no consideration, an agreement will only be enforceable if it is in the form of a deed. 4. Legal relationship-a contract is not enforceable if its object is considered to be illegal or against public policy. 5. Capacity-the general presumption of the law is that all people have a capacity to contract. 6. Certainty-both parties must have intended to enter into the contract and on can not have been misled by the other.

to identify if there is a legal binding contract in this situation, now we need to see if these six elements can be found in the story. 1. offer- yes, Georgia offered 'professional pet care service' to Malcolm and emailed him a copy of a standard form contract that she uses with all of her home pet care clients. 2. acceptance-yes, Malcolm signed the contract Georgia sent him and returned it with $700 cheque payment for his service. 3. Consideration-yes,Georgia inform Malcolm that her rate for caring for both his rabbit and fish will be $100 per day for a total of $700 for the week. 4. legal relationship-yes, pet care service is legal and Malcolm have ownership for his pets 5. Capacity-yes, both Georgia and Malcom have full mental capacity while establishing the contract, they are neither drunk or forced into the contract. 6. certainty-yes, Malcolm asked Georgia to look after his 'award winning rabbit and his tropical fish'

because all six elements can be found in this story, we can come to conclusion that there is an legal binding contract between Georgia and Malcolm.

2.Malcolm should sue Georgia for misrepresentation, a misrepresentation is a false and material statement which induces a party to enter into a contract, it may be made fraudulently, carelessly or innocently. a misrepresentation is innocent where the trader believes that the statement she or he is making is true and consequently has no intention to deceive the buyer. it is fraudulent where the trader makes the statement knowing it to be false or without believing in its truth, or without caring whether it is true or false.

the elements of a misrepresentation are as follows
* there must be a representation
* the representation must be false
* the representation induces the representee to enter into the contract...
tracking img