Legal Contract Between Bob And Mike's Legal Obligation
Issues
Bob has faced with four situations where he seeks legal advice. Whether there is a legal contract between Bob and Mike? Does Bob have a legal obligation to pay to Tom as there is a contracted between them? Is Bob has to provide Steve with new computers, is there a verbal contract formed? Is the contract between Bob and Capital Motors?
Law
A contract can be defined as an agreement between an individual person or a company that the law enforce. (CSU LAW540 Modules, 2017, Topic 5) There are six primarily elements for a valid contract which are agreement, intention, consideration, capacity, content and illegality. From theses six elements, agreement, intention, consideration are essential elements, otherwise the contract is invalid. …show more content…
The case describes when a contract communicated through the post, the acceptance of the contract will be effective from the date, an offeree puts the acceptance letter in the post even though letter delayed in the post. The fax acceptance is effective when it is read by the offeror and the contract is formed at that time. (CSU LAW540 Modules, 2017, Topic 5)
The fourth element, intention of the contract has two presumptions developed by the court. The first one is related to family, domestic or social agreements which did not intend to be legally bound. This is highlighted in Cohen v. Cohen (1929) 42 CLR 91. However, in a business situation the parties did intend to create a legal relationship. (CSU LAW540 Modules, 2017, Topic 5)
A consideration can be defined as each party has to gain some advantage or benefit from the contract. (CSU LAW540 Modules, 2017, Topic 5) It should be at present or future and not a past action. According to the law, it is only a part of the agreement and does not consider equal financial value.
Application and …show more content…
This request was accepted by Tom on 12th of January when he replies to Bob by post. At this stage, a contract is formed and both parties are communicated and agreed with same terms and. On 14th January, when Bob sent an email to Tom, asking to cancel the order it is too late as the contract is already in place from 12th of January according to the postal acceptance rule. (CSU LAW540 Modules, 2017, Topic 5) There is clear evidence that a valid contract is formed and Bon has a legal obligation to pay $10,000 to Tom. (CSU LAW540 Modules, 2017, Topic
Bob has faced with four situations where he seeks legal advice. Whether there is a legal contract between Bob and Mike? Does Bob have a legal obligation to pay to Tom as there is a contracted between them? Is Bob has to provide Steve with new computers, is there a verbal contract formed? Is the contract between Bob and Capital Motors?
Law
A contract can be defined as an agreement between an individual person or a company that the law enforce. (CSU LAW540 Modules, 2017, Topic 5) There are six primarily elements for a valid contract which are agreement, intention, consideration, capacity, content and illegality. From theses six elements, agreement, intention, consideration are essential elements, otherwise the contract is invalid. …show more content…
The case describes when a contract communicated through the post, the acceptance of the contract will be effective from the date, an offeree puts the acceptance letter in the post even though letter delayed in the post. The fax acceptance is effective when it is read by the offeror and the contract is formed at that time. (CSU LAW540 Modules, 2017, Topic 5)
The fourth element, intention of the contract has two presumptions developed by the court. The first one is related to family, domestic or social agreements which did not intend to be legally bound. This is highlighted in Cohen v. Cohen (1929) 42 CLR 91. However, in a business situation the parties did intend to create a legal relationship. (CSU LAW540 Modules, 2017, Topic 5)
A consideration can be defined as each party has to gain some advantage or benefit from the contract. (CSU LAW540 Modules, 2017, Topic 5) It should be at present or future and not a past action. According to the law, it is only a part of the agreement and does not consider equal financial value.
Application and …show more content…
This request was accepted by Tom on 12th of January when he replies to Bob by post. At this stage, a contract is formed and both parties are communicated and agreed with same terms and. On 14th January, when Bob sent an email to Tom, asking to cancel the order it is too late as the contract is already in place from 12th of January according to the postal acceptance rule. (CSU LAW540 Modules, 2017, Topic 5) There is clear evidence that a valid contract is formed and Bon has a legal obligation to pay $10,000 to Tom. (CSU LAW540 Modules, 2017, Topic