Business Law
Part A
Question 1
Step 1
Identify the legal issue
The legal issue is whether the element of agreement requires the formation of a valid contract.
Step 2
Explain the principles of law relevant to that issue with reference to authority (cases and/or legislation)
The element of an agreement is one of the three elements of a contract intention to be legally bound either in formal execution in a deed; or consideration. Agreements means a meeting of the minds on at least those essential terms needed for a workable transaction. There are many way to reach a workable agreement. Agreement can be reached after long and complicated negotiations or when one party offers to do something in exchange for a performance ( Curtin College 2013).
In the general purpose, to reach the agreement can often be described or analysed as ‘offer’ and ‘acceptance’. According to Lambiris (2012, 41) an offer is referred to a clear indication of the terms upon which a person is prepared to be bound. While acceptance referred assenting to, agreeing, receiving the terms offered. There are two parties in an offer. Offeror is person who makes an offer and offeree is person who receives the offer ( Curtin College 2013)
The requirement of an offer is the transaction needs to be workable and sufficiently complete. Besides this, promissory is one of the requirement, an undertaking to give or do; or an undertaking of liability ( Curtin College 2013)
In the case of Placer Development Ltd v Commonwealth, the commonwealth government said that those companies who imported timber products into Australia would be paid a subsidy. The subsidy was to be ‘… of an amount or at a rate to be determined by the Commonwealth from time to time…’ The government made some initial payments to importers, but then stopped. Placer, who has imported timber, wanted to enforce payment of the subsidy (Lambiris 2012, 248).
The issue in this case is, was what government had said about paying a subsidy to
Question 1
Step 1
Identify the legal issue
The legal issue is whether the element of agreement requires the formation of a valid contract.
Step 2
Explain the principles of law relevant to that issue with reference to authority (cases and/or legislation)
The element of an agreement is one of the three elements of a contract intention to be legally bound either in formal execution in a deed; or consideration. Agreements means a meeting of the minds on at least those essential terms needed for a workable transaction. There are many way to reach a workable agreement. Agreement can be reached after long and complicated negotiations or when one party offers to do something in exchange for a performance ( Curtin College 2013).
In the general purpose, to reach the agreement can often be described or analysed as ‘offer’ and ‘acceptance’. According to Lambiris (2012, 41) an offer is referred to a clear indication of the terms upon which a person is prepared to be bound. While acceptance referred assenting to, agreeing, receiving the terms offered. There are two parties in an offer. Offeror is person who makes an offer and offeree is person who receives the offer ( Curtin College 2013)
The requirement of an offer is the transaction needs to be workable and sufficiently complete. Besides this, promissory is one of the requirement, an undertaking to give or do; or an undertaking of liability ( Curtin College 2013)
In the case of Placer Development Ltd v Commonwealth, the commonwealth government said that those companies who imported timber products into Australia would be paid a subsidy. The subsidy was to be ‘… of an amount or at a rate to be determined by the Commonwealth from time to time…’ The government made some initial payments to importers, but then stopped. Placer, who has imported timber, wanted to enforce payment of the subsidy (Lambiris 2012, 248).
The issue in this case is, was what government had said about paying a subsidy to