Business Law
| Assignment 1 | MBA 6163 Business Law | | Wan Chin HuiMBA-CUCST/F/12//03/0005(2792 Words) | |
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Table of Contents
Task 1 3 Task 2 6 Task 3 11 References: 15
Task 1
Mrs. Turner has decided to start her own business running a private day nursery. It is necessary for her to find appropriate premises. She sees a detached house, which would be appropriate, on the market for £200.000. After having viewed the property she decides to make a bid for the property for £150,000. The sellers state clearly however that they will only accept £180,000.
Mrs. Turner then sees another property on the market for £250,000. She offers the asking price for this and it is accepted ‘subject to contract.’
However a week later the sellers of the first property contact Mrs. Turner again stating that they have reconsidered are now happy to accept her bid for £150,000.
Your supervisor has requested that you research the relevant issues and compile a report for her attention which, outlines your findings.
Answer
Prior to examine whether Mrs Turner has entered into two contracts, we started with the definition of “Contract”.
A contract is defined in Section 2(h) of the Contracts Act 1950 as “an agreement enforceable by law.” In other words, a contract is an agreement which is legally binding between the parties. A legally enforceable contract requires: 1. An Offer 2. An Acceptance 3. An intention to Create legal relations 4. Consideration
If any of the above is missing, then there is no contract to speak of.
Section 7 of the Contracts Act 1950 states that:
7. In order to convert a proposal into a promise the acceptance must: a. Be absolute and unqualified; b. Be expressed in some usual and reasonable manner, unless the proposal prescribes the manner in which it is to be accepted. If the proposal prescribes a manner in which it is to be accepted, and the acceptance is not made in that manner, the proposer may,
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Table of Contents
Task 1 3 Task 2 6 Task 3 11 References: 15
Task 1
Mrs. Turner has decided to start her own business running a private day nursery. It is necessary for her to find appropriate premises. She sees a detached house, which would be appropriate, on the market for £200.000. After having viewed the property she decides to make a bid for the property for £150,000. The sellers state clearly however that they will only accept £180,000.
Mrs. Turner then sees another property on the market for £250,000. She offers the asking price for this and it is accepted ‘subject to contract.’
However a week later the sellers of the first property contact Mrs. Turner again stating that they have reconsidered are now happy to accept her bid for £150,000.
Your supervisor has requested that you research the relevant issues and compile a report for her attention which, outlines your findings.
Answer
Prior to examine whether Mrs Turner has entered into two contracts, we started with the definition of “Contract”.
A contract is defined in Section 2(h) of the Contracts Act 1950 as “an agreement enforceable by law.” In other words, a contract is an agreement which is legally binding between the parties. A legally enforceable contract requires: 1. An Offer 2. An Acceptance 3. An intention to Create legal relations 4. Consideration
If any of the above is missing, then there is no contract to speak of.
Section 7 of the Contracts Act 1950 states that:
7. In order to convert a proposal into a promise the acceptance must: a. Be absolute and unqualified; b. Be expressed in some usual and reasonable manner, unless the proposal prescribes the manner in which it is to be accepted. If the proposal prescribes a manner in which it is to be accepted, and the acceptance is not made in that manner, the proposer may,
References: Answers. (2012, Dec 24). Retrieved from Gale Encylopedia of Small Business: Liabilities: http://www.answers.com/topic/liabilities-2#ixzz2FvSlFuj9 Brozovsky,John Contractual Agreement - offer and acceptance. (2012, Dec 25). Retrieved from e-lawresources.co.uk: http://e-lawresources.co.uk/Offer-and-acceptance-contract.php Four Essential Elements of a Contract Harkness Henry & Co. (2012, Dec 30). Forming Contracts Electronically. Retrieved from FindLaw - Practical legal articles from FinLaw New Zealand: http://www.findlaw.com/12international/countries/nz/articles/872.html Iseme, Kamau & Maema Advocates Lee Mei Pheng; Ivan Jeron Detta. (2009). Business Law. Oxford University Press. Marry Charman. (2007). Contract Law, 4th Edition. William Publishing. PainSmith. (2012, Dec 24). Understanding "Subject to Contract". Retrieved from PainSmith Landlard and Tenant Blog: http://blog.painsmith.co.uk/2010/08/03/understanding-subject-to-contract/ Sharon Christensen Wiliams, Georgina; Thomas J. Phillips, Jr. (February 1994). Cleaning Up Our Act: Accounting for Environmental Liabilities. Management Accounting. Winicur, Barbara. (January 1993). Long Term Liabilities. National Public Accountant.