Business Law Assignment FINAL
COURSE NAME: Bachelor of Business, Procurement and Supply Management (BBUS)
MODULE: Business Law
MODULE CODE: OD003
LEARNER NUMBER: s416711
DATE OF SUBMISSION: 14/02/14
WORD COUNT: 2012
TABLE OF CONTENTS
Page
Introduction
3
1.
Intention to create legal relations – A fundamental issue
4
2.
Social and Domestic agreements
5/6
3.
Commercial and business relations
7
3.1 Honour clauses
7
3.2 Promotional puff and free gifts
7/8
3.3 Ex gratia payments and without prejudice offers
8
3.4 Letter of comfort
9
3.5 Letter of intent and understandings
9
4.
Collective
10
Conclusion
11
Bibliography
12
Glossary
13
INTRODUCTION
There are some essential ingredients to be present in an agreement for it to constitute a contract. They include offer, acceptance, consideration, intention to create legal relations and reconciliation of buyers’ and sellers’ terms and conditions. Each element is equally important and essential in the formation of a contract but for the purposes of this assignment I will focus on “the intention to create legal relations” and endeavour to discuss the importance of this element citing case law to support my points.
1. INTENTION TO CREATE LEGAL RELATIONS – A FUNDAMENTAL ISSUE
Intention to create legal relations can be defined as an intention to enter a legally binding agreement or contract.
The reason intention to create legal relations exists in contracts is to help determine which cases are applicable for court action. For example, agreeing to meet a friend for dinner is a moral obligation and not legally binding. This is because in general the parties to such agreements do not intend to be legally bound and the law seeks to mirror the party's wishes and avoid dealing with trivial issues.
In order to determine which agreements are legally binding and have an intention to create legal relations, the law draws a distinction between social and domestic agreements,
MODULE: Business Law
MODULE CODE: OD003
LEARNER NUMBER: s416711
DATE OF SUBMISSION: 14/02/14
WORD COUNT: 2012
TABLE OF CONTENTS
Page
Introduction
3
1.
Intention to create legal relations – A fundamental issue
4
2.
Social and Domestic agreements
5/6
3.
Commercial and business relations
7
3.1 Honour clauses
7
3.2 Promotional puff and free gifts
7/8
3.3 Ex gratia payments and without prejudice offers
8
3.4 Letter of comfort
9
3.5 Letter of intent and understandings
9
4.
Collective
10
Conclusion
11
Bibliography
12
Glossary
13
INTRODUCTION
There are some essential ingredients to be present in an agreement for it to constitute a contract. They include offer, acceptance, consideration, intention to create legal relations and reconciliation of buyers’ and sellers’ terms and conditions. Each element is equally important and essential in the formation of a contract but for the purposes of this assignment I will focus on “the intention to create legal relations” and endeavour to discuss the importance of this element citing case law to support my points.
1. INTENTION TO CREATE LEGAL RELATIONS – A FUNDAMENTAL ISSUE
Intention to create legal relations can be defined as an intention to enter a legally binding agreement or contract.
The reason intention to create legal relations exists in contracts is to help determine which cases are applicable for court action. For example, agreeing to meet a friend for dinner is a moral obligation and not legally binding. This is because in general the parties to such agreements do not intend to be legally bound and the law seeks to mirror the party's wishes and avoid dealing with trivial issues.
In order to determine which agreements are legally binding and have an intention to create legal relations, the law draws a distinction between social and domestic agreements,