Contract and Agency Law for Ah Choon-myassignmenthelp.com

Question: Discuss about theContract and Agency Law for Ah Choon. Answer: A contract is a valid agreement, which is legally binding between the two parties. Contracts may be verbal or in writing. ("Contracts and the Law - FindLaw", 2017) According to the Law a contract is considered to be valid if it contains the following essential elements: Offer Acceptance Intention to create legal relation Consideration to be paid An offer is a proposal to another to enter into a binding contact. An offer is generally made either to an individual or group or the world at large. An offer becomes binding only when it is communicated and accepted by the offeree. The power of acceptance has to be given to the offeree. ("Essential Elements of Contract", 2017). After a certain time lapse an offer cannot be considered valid. Like in the case of Ramsgate Victoria Hotel vs. Montefoire, there was an offer from the defendant side to purchase the shares of the claimant company. After six months when the price had duly fallen the claimant said he wants to go ahead with the offer to which the defendant wasnt ready. It was held that due to the nature of the contract it was considered as lapsed after a period of time. In our case, the offer from Ah Choon, he also refused to do in the same price and if we relate to this case the offer could be lapsed after a time period. ("Ramsgate Victoria Hotel v Montefoire", 2017) Acceptance occurs when the party agrees to accept the conditions of the offer in full by way of an act or statement. Acceptance must be unequivocal and communicated to the offeror. Exactly what has been offered needs to be accepted; partial acceptance is not considered as a contract. When there is a counter offer or additional conditions are added to the same offer then it is no longer acceptance of the original contract. It is not necessary to accept the offer only by way of words. At times the offer is also accepted by way of action. (Stim, 2017). In the case of Felthouse vs. Bindley, there was a deal between nephew and uncle that the nephew was buying a horse from his uncle and if nothing is heard from the latter side then he would consider the horse to be his. By mistake the horse was sold at the auction. The uncle wanted to proceed and he could, as there was no contract, because of silence of the uncle, which cant be treated as acceptance. Similarly, in our case when Ah Choon an d Dazzle Paint quoted the price there was no response of accepting the contract from Benjis side. So it is treated as void agreement. ("Felthouse v Bindley", 2017) In our case the offer was made by Ah Choon specifying that Call now for lowest price. No time limit, no pressure, take your time to consider our offer! But Benji didnt accept this offer as his words were just that will think about it, which cannot be termed as an acceptance of the offer. However, when he called Dazzle Paint they told that the price would be $3000, and then Benji responded saying, Ok, that sounds ok, I am not in a rush. And he provided his contact number and address. This is a case where there is preliminary negotiation and not an agreement. There were no words from Benji regarding the contract being given to them. It can just be termed as knowing the terms and conditions of Dazzle paint. Hence, no legal contract exists with Dazzle Paint also. Consideration is the price paid by the promisee in exchange for their promise. Consideration may be some right, detriment, loss or responsibility given, interest or benefit going to one party or forbearance suffered or undertaken by the other party. ("Contracts and the Law - FindLaw", 2017). In our case thought there is consideration in both the case of Ah Choon and dazzle Paint but the discussion with Ah Choon and Dazzle Paint cannot be considered as a legal contract as there was no acceptance of the offer. Mere talking about the policies cannot be termed as a contract. For a contract to exist the parties must intend to create a legal relation. Generally, the consideration is an evidence of this, where the promise agrees to pay a certain amount to the promisor on the fulfillment of the agreement. For ex- A friend offers a ride to home and the other friend accepts it, this is not a contract as there is no intention to enter in a legal binding agreement, However, if we hire a cab and pays him the fare for it then it is a binding contract. Here, though there was an intention to enter into a legal contract but due to the missing of acceptance clause it was never a contract. Benji never accepted the offer provided by both the parties. Contract disputes happen whenever the minds of the contracting people are is disagreement regarding some of the conditions of the contracts. (Akhbari, 2017). For a contract to be valid, all the parties should mutually agree to the points of the contract. There was no contract in this case i.e. it was void from the very beginning due to the absence of the basic requirements of a contract. Still if the matter isnt resolved Benji has to take out ways to solve this matter. In this case he is right that he didnt accept Dazzle Paints offer as it was a mere pre negotiation and there was no acceptance from his side. But also, he cannot ask Ah Choon to complete his work on the same price, which he had earlier offered as after a reasonable time period an offer can deemed to be expired. And, also Ah Choon cannot force Benji to get his work done from the former, as there was no contract between them and only a discussion. Benji can talk and resolve the matter. If they agree to a price, which is acceptable for all the three of them, Benji can give half contract to Ah Choon and half to Dazzle Paint. If still there is no consensus among them then Benji has the right to sue them and the matter will be solved in the court. References Akhbari, K. (2017). Contract Dispute Lawyers. LegalMatch. Retrieved 15 August 2017, from https://www.legalmatch.com/law-library/article/contract-dispute-lawyers.html Contract agreement - Offer and acceptance. (2017). E-lawresources.co.uk. Retrieved 15 August 2017, from https://www.e-lawresources.co.uk/Offer-and-acceptance.php/ Contracts and the Law - FindLaw. (2017). Findlaw. Retrieved 15 August 2017, from https://smallbusiness.findlaw.com/business-contracts-forms/contracts-and-the-law.html Contracts Law: Offer and Acceptance. (2017). Retrieved 15 August 2017, from https://www.4lawschool.com/contracts101/offer.htm Essential Elements of Contract. (2017). E-law.bc.ca. Retrieved 15 August 2017, from https://www.e-law.bc.ca/art_essential.html Felthouse v Bindley. (2017). E-lawresources.co.uk. Retrieved 17 August 2017, from https://www.e-lawresources.co.uk/Felthouse-v-Bindley.php Formation of A Contract | Lecture Notes. (2017). Lawteacher.net. Retrieved 15 August 2017, from https://www.lawteacher.net/lecture-notes/agreement-lecture.php Ramsgate Victoria Hotel v Montefoire. (2017). E-lawresources.co.uk. Retrieved 17 August 2017, from https://www.e-lawresources.co.uk/Ramsgate-Victoria-Hotel-v-Montefoire.php Stim, R. (2017). What Constitutes Acceptance of a Contract Offer?. www.nolo.com. Retrieved 15 August 2017, from https://www.nolo.com/legal-encyclopedia/acceptance-of-contract-offers-32651.html Study Material-1: (1) OFFER AND ACCEPTANCE. (2017). Sol.du.ac.in. Retrieved 15 August 2017, from https://sol.du.ac.in/mod/book/view.php?id=644chapterid=361