Contract Law- Terms of a Contract
LAW 203 – LAW OF CONRACT 1
ASSIGNMENT 2
STUDENT ID: S120343
LECTURER/TUTOR: MR HUMPHREY MARAU
NUMBER OF WORDS: 2284 Contract law is a body of law that governs oral and written agreements associated with exchange of goods and services, money, and properties. Not only does contract law set out the rules and guidelines of how to form a contract but also teaches us how the parties to a contract are to fulfil it and what may happen when the terms of a contract are not fulfilled. The background or facts of the scenario are that Credit Corp (plaintiff) leased its commercial property situated in Vitogo Parade to Mr Singh (defendant) in 2002. The lease stipulated that interest would accrue on arrears of rent and outgoings and was due to expire on 1 April 2012. Sugar City Mall was the major shopping centre in town and Singh operated a bookstore from the premises called the Book Centre. By the beginning of 2007, MH’s had opened “Mega Centre” a large shopping hub which quickly became the most popular shopping destination in town. This new development had quickly become the most popular shopping destination and as a result, Singh suffered a substantially reduced turnover (defined as the amount of business transacted during a given period of time) and had difficulty paying the rental. Singh discussed a rent reduction with Credit Corp but the parties could not come to an agreement and as a result, Singh’s turnover continued to decline. Credit Corp was aware that the turnover was continuing to decline but wished to continue a contractual relationship with Singh. Singh was in no doubt about what he was obliged to pay under the lease, but his turnover made it clear that he could not do so and continue to trade. For this reason Singh wrote a proposal asking that the rent be reduced. In early 2012, Singh failed to make one payment of the monthly rental and thereafter paid only half of the monthly rental after which Credit Corp sought a proposal from Singh in respect
ASSIGNMENT 2
STUDENT ID: S120343
LECTURER/TUTOR: MR HUMPHREY MARAU
NUMBER OF WORDS: 2284 Contract law is a body of law that governs oral and written agreements associated with exchange of goods and services, money, and properties. Not only does contract law set out the rules and guidelines of how to form a contract but also teaches us how the parties to a contract are to fulfil it and what may happen when the terms of a contract are not fulfilled. The background or facts of the scenario are that Credit Corp (plaintiff) leased its commercial property situated in Vitogo Parade to Mr Singh (defendant) in 2002. The lease stipulated that interest would accrue on arrears of rent and outgoings and was due to expire on 1 April 2012. Sugar City Mall was the major shopping centre in town and Singh operated a bookstore from the premises called the Book Centre. By the beginning of 2007, MH’s had opened “Mega Centre” a large shopping hub which quickly became the most popular shopping destination in town. This new development had quickly become the most popular shopping destination and as a result, Singh suffered a substantially reduced turnover (defined as the amount of business transacted during a given period of time) and had difficulty paying the rental. Singh discussed a rent reduction with Credit Corp but the parties could not come to an agreement and as a result, Singh’s turnover continued to decline. Credit Corp was aware that the turnover was continuing to decline but wished to continue a contractual relationship with Singh. Singh was in no doubt about what he was obliged to pay under the lease, but his turnover made it clear that he could not do so and continue to trade. For this reason Singh wrote a proposal asking that the rent be reduced. In early 2012, Singh failed to make one payment of the monthly rental and thereafter paid only half of the monthly rental after which Credit Corp sought a proposal from Singh in respect
Bibliography: Jennifer C. Care, Contract Law in the South Pacific, Cavendish Publishing Limited, Sydney, 2001 INTERNET SOURCES Contract Law definition (2006) Notes on Contract Law <http://www.businessdictionary.com/definition/contract-law.html > at 23rd May, 2012 Proprietary estoppel definition (2007) Business law < www.biztaxlaw.com> at 26th May 2012 Turnover definition (2004) Business Loss < www.thefreedictionary.com> at 23rd May, 2012 -------------------------------------------- [ 2 ]. Contract Law definition (2006) Notes on Contract Law at 23rd May, 2012 [ 3 ] [ 4 ]. Jennifer C. Care, Contract Law in the South Pacific, Cavendish Publishing Limited, Sydney, 2001, pg 81 [ 5 ] [ 6 ]. Jennifer C. Care, Contract Law in the South Pacific, Cavendish Publishing Limited, Sydney, 2001, pg 81 [ 7 ] [ 8 ]. Elizabeth A. Martin, A Concise Dictionary of Law, 2nd edition, Oxford University Press, Suffolk, 1983, pg 440 [ 9 ] [ 10 ]. Jennifer C. Care, Contract Law in the South Pacific, Cavendish Publishing Limited, Sydney, 2001, pg83 [ 11 ] [ 12 ]. Jennifer C. Care, Contract Law in the South Pacific, Cavendish Publishing Limited, Sydney, 2001, pg83 [ 13 ] [ 14 ]. 13. Proprietary estoppel definition (2007) Business law < www.biztaxlaw.com> at 26th May 2012. [ 16 ]. Elizabeth A. Martin, A Concise Dictionary of Law, 2nd edition, Oxford University Press, Suffolk, 1983 pg 283 [ 17 ]