Business Low
Introduction
Law is a system of rules and guidelines which are enforced through social institutions to govern behavior, wherever possible. The law of contracts differs from other branches of law in a very important respect. It does not lay down so many precise rights and duties which the law will protect and enforce. Instead, the law of contract is a division of law which contains rather a number of limiting principles, subject to which the parties may create rights and duties for themselves, and the law will uphold those rights and duties. As long as all parties do not transgress some legal prohibition, all related parties make the law by framing any rule they like in regard to the subject matter of their contract for themselves.
The law of contract is a set of legal rules related to instruct the formulation, lapse, termination of legally binding agreement made between between two or more persons regarding the exchange of interests or asset ownership. Contract can be viewed as a kind of obligatory promise made by the offeror to the offeree, which ensures the execution of contract or provides the remedy during a breach of contract. Malaysian Contract Act 1950 defines the scope of an enforceable contract and duties of parties to a contract. Section 2(h) of Contracts Act 1950 defines a contract as a set of agreements enforceable by law. Although all contracts must be established upon an agreement, a mere agreement which does not fulfill the criteria of contract is not a contract. This is because the enforceability of a contract cannot be formed if certain essential elements of formulating a contract are omitted. In other word, to create a legal obligation, both parties must establish a set of agreements which meets the essential elements of a contract via either writing format or oral communication to validly create a contract.
Three parties are involved in this subject case: Melissa, Dory and Alice. At the commencement, Melissa wanted to sell her bike to Dory at
Law is a system of rules and guidelines which are enforced through social institutions to govern behavior, wherever possible. The law of contracts differs from other branches of law in a very important respect. It does not lay down so many precise rights and duties which the law will protect and enforce. Instead, the law of contract is a division of law which contains rather a number of limiting principles, subject to which the parties may create rights and duties for themselves, and the law will uphold those rights and duties. As long as all parties do not transgress some legal prohibition, all related parties make the law by framing any rule they like in regard to the subject matter of their contract for themselves.
The law of contract is a set of legal rules related to instruct the formulation, lapse, termination of legally binding agreement made between between two or more persons regarding the exchange of interests or asset ownership. Contract can be viewed as a kind of obligatory promise made by the offeror to the offeree, which ensures the execution of contract or provides the remedy during a breach of contract. Malaysian Contract Act 1950 defines the scope of an enforceable contract and duties of parties to a contract. Section 2(h) of Contracts Act 1950 defines a contract as a set of agreements enforceable by law. Although all contracts must be established upon an agreement, a mere agreement which does not fulfill the criteria of contract is not a contract. This is because the enforceability of a contract cannot be formed if certain essential elements of formulating a contract are omitted. In other word, to create a legal obligation, both parties must establish a set of agreements which meets the essential elements of a contract via either writing format or oral communication to validly create a contract.
Three parties are involved in this subject case: Melissa, Dory and Alice. At the commencement, Melissa wanted to sell her bike to Dory at
References: Abbot, K., Pendlebury, N. and Wardman, K. (2002) Business Law, Cengage Learning. Abdullah, N. I., Razali, S. S. and Ghadas, Z. A. A. (2011), Malaysian Business Law, p 79. Gulshan and Kapoor (2008), Business Law including Company Law, New Age International, p 2. Maggs, G. E. (1999), Comparative Contract Law: American and European, abstract from URL: http://docs.law.gwu.edu/facweb/gmaggs/maggs-augsburg.pdf Meiners, R [ 2 ]. Maggs, G. E. (1999), Comparative Contract Law: American and European, abstract from URL: http://docs.law.gwu.edu/facweb/gmaggs/maggs-augsburg.pdf [ 3 ] [ 4 ]. Abdullah, N. I., Razali, S. S. and Ghadas, Z. A. A. (2011), Malaysian Business Law, p 79. [ 6 ]. Meiners, R. E., Ringleb, Al. H. and Edwards, F. L. (2006), The Legal Environment of Business, 9th Edition, Thomson Higher Education, p 245.