Commercial Law

Commercial Law

Name:

Institution:
Commercial Law

Question 1

A contract is an agreement or relation bound by the law of a country, which involves two or more parties. Thin promise may involve performing or refrain from certain activities. Some of the crucial element is the formation of a valid contract include the existence of an offer from one of the parties and a sign of acceptance from the party presented with the proposal. Moreover, the parties involved in the formation of a valid contract ought to exhibit their intention of establishing a legally binding relationship on their free will on a practical issue (Barnett, 2009). In contrast, an agreement is a promise binding two or more parties and relies on the dependability of the involved individuals in fulfilling the written or oral pledge. This is because an agreement is not bound by the law. Based on these definitions, it is right to indicate that all contracts are agreements yet not all agreements are contracts.

The definition of a valid contract lies in the Contract Act of 1872. Based on the stipulations in section 2 (h) of this legal document, a contract is an agreement bound by the law (Barnett, 2009). This legal provision highlights two major characteristics of a valid contract, which portray it as an agreement. These features include the agreement between two or more parties as well as the formation of a treaty enforced by the existing policies of a region or country. For this reason, an agreement transforms into a contract after the fulfillment of these elements of a valid treaty. For instance, if a minor agrees to sell a house inherited from his parent to an adult, the law will consider such an entity as an agreement as opposed to a valid contract. This is because one of the major elements of a valid contract involves the capacity of the participants to engage in such legal affairs. Agreements enforced by the law have to comprise people who are above the age of 18 years and of sound mind. This concurs with the notion that all contracts are agreements but not all agreements are contracts.

Moreover, The Contract Act of 1872 refers to certain unauthorized considerations as agreements as opposed to valid contracts. For instance, section 2 (e) of this legal document indicates that all promises that forms a consideration for the other party is a valid agreement. Moreover, section 2 (a) and (b) indicate that when an individual shows his or her willingness to perform or refrain from doing something with the main intent of appealing to the other party to assent to the suggested stipulations, it equates to a proposal. These stipulations concur with the definition of a consideration, which is in section 2 (d) of The Contract Act of 1872 (Barnett, 2009). Based on the legal stipulations in this document, a typical consideration occurs when an individual or party promises to do or abstain from doing a particular act in line with the desire of the party responsible for proposing the agreement.  However, in line with the provisions of section 23 of The Contract Act, such considerations may be unlawful if they are fraudulent or may result in damage to property or a person. The invalidity of such an agreement may also occur if a law court perceives it as immoral or against the principles governing public policy.

This is one of the major differences between an agreement and a contract. The considerations of an agreement may be unlawful while those of a contract have to be enforced by law. This proves the assertion that not all agreements are contracts. Furthermore, section 10 of this legal document states that an agreement transforms into a contract following the fulfillment of certain key elements of a valid contract. This includes the consent of all the involved parties, intent to engage in a lawful relationship, and the capacity of the involved parties to participate in such lawful matters. This highlights the legal framework as the basis of the difference between an agreement and a contract. The considerations in an agreement may be unlawful while those of a contract have to be within the framework of the policies stipulated in The Contract Act of 1872 (Barnett, 2009). For this reason, it is right to state that all contracts are agreements but not all agreements are contracts.

Word Count: 720

Question 2

Part A

The elements embedded in equitable remedies were applicable in the ancient periods and are still evident in the modern legal practices of the United States. This is because the current legal system of the United States is in line with the English common law. Similar to the legal framework governing the decisions of the law courts in the ancient periods, these administrative structures still have the power to present an individual or party with equitable remedies. This is event in circumstances requiring an injunction. Equitable relief is only available when the legal remedies of a complainant are insufficient. For example, a court of law may offer an equitable relief to a plaintiff in cases where the substitutionary remedy of funds is inadequate to restore the health of the injured individual (Nolan & Sartorio, 2007). Nonetheless, these provisions must concur with the public policies of the state in question.

Another example highlighting the authority of a law court in the provision of equitable remedies to an individual entails the aspect of unconscionability. This involves the authority offered to a law court in order to decline the enforcement of a contract based on its unfairness to one of the integrated parties. UCC 2-302 comprises of detailed information that justifies such legal actions. However, the English common law used in the ancient and current legal structures of the united states only recognize UCC 2-302 as a defense as opposed to a structure upon which a plaintiff can acquire damages(Nolan & Sartorio, 2007). Another legal element that justifies the provision of equitable remedies is the Seventh Amendment. This legal alteration offers the citizens of the United States a right for a jury trial based on equitable claims.

Part B

In line with the provisions in the Competition Act, Todd may sell the table to Mike without experiencing any legal tussles. Section 74.01 (2) and (3) of this legal document contains civil stipulations, which prohibit misleading representations of the selling price of a product or service advertised by a merchant (Whish, 2009). In such a scenario, the ordinary price of the commodity is determined through two key approaches. To begin with, a substantial amount of similar products from the seller should have been sold within the stipulated price or at a higher fee for a reasonable period. This is referred to as the volume test. Moreover, with respect to the time test, the seller should advertise the offer for the sale of a particular commodity for a considerable period.  Accordingly, Todd may base his actions on the provisions of the volume tests.

In this case, Todd only proposes the sale of one item. For this reason, Susan cannot base her argument on the stipulations in this section of the Competition Act. This is because of the lack of any evidence showing the sale of similar products by Todd at the same price within a reasonable timeframe.  Furthermore, there exists additional information that may favor Todd’s actions with reference to selling the antique table to Mike for a higher price than the advertised charges. In section 74.04 of the Competition Act, factors regarding the nature of the market may determine the actions of a seller (Whish, 2009). This includes the type of commodity under consideration as well as other influential aspects regarding the business enterprise. In this case, the business transactions involving Todd, Susan, and Mike are not bound by the basic rules governing a commercial enterprise. An evaluation of the stipulations of the Competition Act may substantiate the assertion that Todd’s actions regarding the sale of this antique table depend on the available offers from potential buyers.

Part C

The agreement between John and his uncle regarding the payment for painting the two rental houses is governed by the elements embedded in the law of contract. Based on these features, John’s uncle ought to pay him a total of $ 75 after completing the proposed task. To begin with, there exists a clearly defined offer that binds the agreement (Barnett, 2009). In this case, John’s uncle presents his nephew with an offer of painting two rental houses at the fee of $ 15 per hour. For this reason, the number of hours spent in completing the tasks is the determining factor in this agreement. Moreover, John accepts the offer, an aspect that validates the agreement including the mode of payment. With the presence of these key elements of a valid contract, John’s uncle should fulfill his promise in line with the provisions of a valid agreement in the law of contracts.

In addition, the features of this agreement concur with the characteristics of an oral contract as highlighted in The Contract Act. This is because the events surrounding this agreement are in accordance with the major elements of a typical oral contract. For instance, John has accepted the offer presented by his uncle regarding the amount of work and the resultant mode of payment. Accordingly, the oral agreement is valid due to the existence of substantial evidence on the presentation of a reasonable offer and acceptance from the other party (Barnett, 2009). As indicated in the policies governing an oral contract, the painted rental houses is enough proof of the duties incorporated in the agreement. This makes it easy for John to seek legal advice if his uncle disregards the agreement.

Part D

Based on the stipulations integrated in the law of agency, Gemma should have no concerns regarding her actions with reference to the existing relationship with comedians. This is because her deeds are within the provisions of this legal document and do not warrant termination of the agency. For instance, in section 171 of the Contract Act 1950, one of the key duties of an agent in such a contract is to pay the principal the acquired sum of money based on the stipulations in the formulated agreement. In this case, Gemma has been fulfilling this promise by forwarding the attained amount of money to her clients after deducting 10 % of the cash as agreed upon in the treaty. This justifies her actions especially since she has not received any complains from the principals regarding her misappropriation of the acquired funds or any other element relating to the provisions of the signed agreements. Similar justifications are evident in section 169 of the Contract Act of 1950 (Tan, 2010). In this section of the formulated set of policies regarding the relationship between a principal and his or her agent, Gemma has fulfilled her duties of creating a business platform that will benefit her clients significantly. This is evident from the numerous events, which she has organized for the comedians.

Similarly, the rules justifying the termination of agency are not applicable in this situation. This is in line with the provisions in sections 154-163 of this legal document (Tan, 2010). Some of the circumstances that warrant the termination of such a legal relationship include the expiry of the timeframe indicated in the contract or completion of the duties indicated in the signed treaty. Furthermore, the death, mental illness, or bankruptcy of an agent may result in his or her termination by the principal. In this case, these circumstances are not applicable. For this reason, Gemma should be concerned about any possible legal tussles between her and her clients. Her actions are within the legal framework guided by the law of agency and the Contract Act of 1950.

References

Barnett, R. E. (2009). Perspectives on contract law. New York: Aspen Publishers.

Nolan, J. R., & Sartorio, L. J. (2007). Equitable remedies. St. Paul, Minn.: Thomson/West.

Tan, C. H. (2010). The law of agency. Singapore: Academy Pub.

Whish, R. (2009). Competition law. Oxford: Oxford University Press.

Calculate your order
275 words
Total price: $0.00

Top-quality papers guaranteed

54

100% original papers

We sell only unique pieces of writing completed according to your demands.

54

Confidential service

We use security encryption to keep your personal data protected.

54

Money-back guarantee

We can give your money back if something goes wrong with your order.

Enjoy the free features we offer to everyone

  1. Title page

    Get a free title page formatted according to the specifics of your particular style.

  2. Custom formatting

    Request us to use APA, MLA, Harvard, Chicago, or any other style for your essay.

  3. Bibliography page

    Don’t pay extra for a list of references that perfectly fits your academic needs.

  4. 24/7 support assistance

    Ask us a question anytime you need to—we don’t charge extra for supporting you!

Calculate how much your essay costs

Type of paper
Academic level
Deadline
550 words

How to place an order

  • Choose the number of pages, your academic level, and deadline
  • Push the orange button
  • Give instructions for your paper
  • Pay with PayPal or a credit card
  • Track the progress of your order
  • Approve and enjoy your custom paper

Ask experts to write you a cheap essay of excellent quality

Place an order