Unit 1 Concept Of Contract Assignment Help
This assignment strives at throwing light on the diverse concepts of the contracts legislation in Australia. There are various elements involved in the formation of a contract and it is very important to evaluate them. In addition to evaluation, the analysis of the consumer legislations with respect to the law of contract is to be presented to answer the case studies so provided. Besides, the various types of terms and conditions included under a standard contract are required to be studied and presented. The assignment has to be answered while keeping in mind the case laws supporting the evaluations so made.
Case study 1:
The situation arisen from the case selling agreement as regards flower business owned and run by Adam. As per agreement, Adam is considered the seller and Eve is considered a buyer. Adam had proven about the profitability through receipts of transactions. It was however, it was not divulged that the flower shop did not make so much profit during three months and only earns an average of $30,000. Hence, the actual profits so made by the shop are that of $540,000 and not $600,000 as projected. Based on the evidence, Eve proceeded with the purchase. After few months of purchasing the business Eve found out that the business is not profitable enough and the over head expenses are disproportionate with the profits. (Ciro & Symes, 2013)
a. Advise Eve of her rights, if any, against Adam and any remedies available for her under common law
Apparently the contract seems to be a valid one. This is because Adam expresses the intention to enter into a contract. The offer to purchase the flower shop is made by Eve, which is accepted by Adam. An offer is a statement made, including terms and conditions, to enter into a contract. The terms stated should be clear, without any ambiguity. An offer when made may be accepted or rejected. Sometimes the offeree may present a counter offer to the original offer. However, no counter offer was been included in the present offer yet. The acceptance to the contract is clear and express under the case. Thereby, the acceptance determined the existence of the contract. A valid contract is considered so if the exchange of the goods and services under the sale of contract is established through a consideration. Consideration is referred to as something of value. The purchase price in such a case is said to be the consideration. As it was a commercial contract it may or may not be present in writing. Either ways it would be enforceable for the purpose of the contract is business skill and not personal. (Sweeney, O’ Reily & Coleman, 2013)
Kind attention must be drawn that the contract was entered into based on certain conditions. And the condition of the business making certain amount of profit was one of the primary reasons for Eve to enter into the contract. Thereby, such a term is said to be the express term to the contract. The contract was entered into without expressing a condition to the contract. Hence, not providing the entire information regarding the purpose of the contract amounts to breach of express condition thereby, rendering the contract void. The remedy available to Eve for the breach of conditions that is express is that the contract may be voided according to the Sales of Goods Act, 1954. According to the Consumer, guarantees the consumer shall be disclosed the true information of the product or service in question. If the consumer has been misrepresented with respect to the good at the time of selling, the consumer may have the remedies available such as repair, refund or replace. The product may also be rejected if the same is not according to the standards according to the consumer guarantees. (Corones, 2011)
b. Would your advice be different if Eve has asked Adam the exact turnover of the business?
If Eve had enquired about the exact turnover for the business before purchasing it then the same would not have been the advice for the event undertaken in the situation. Such misrepresentation would not be said to have occurred regarding the actual turnover of the business of the flower shop. It is thereby, determined that if Adam had still not informed about the profit so made despite being answered regarding the same then a clear misrepresentation would persist resulting in the similar remedies expressed above. If Adam would have informed about the true amount of turnover the flower shop actually makes along with the overheads then Eve would have a clear picture and complete information system to make the decision of purchasing the flower shop or not. In such a case, the misrepresentation would have cropped up and that no remedies would be present for the same. (Miller, 2011)
Case Study 2:
The case study being considered here illustrates that the two parties, namely Brian and Robert enter into a contract every week for the delivery of flowers. Robert owns the Bowral Heritage Forms and Brian is the owner of the flower shop in the city. Every Monday, as per the modus operandi Brian posts a letter for the order of flowers to Robert. The same is delivered on tuesday and reaches Brian by wednesday. The delivery is made every thursday as per the scheduled time. Unlike other weeks Brian did not receive the letter of acceptance by wednesday, so he placed the order at another shop. However, Brian received two deliveries for the same order both from Robert and the new supplier. Brian had already initiated the process by paying premium to the new supplier for the express delivery of the flowers on time on Thursday. As a result of which Brian refused to pay for the flowers delivered by Robert as the contract was not entered and there was non-receipt of acceptance like every week. Later it was fond out that postal service was on strike on Wednesday and thereby resulting in failure to unable to deliver the letter as intended. (Harris, 2013) Order Now