This report is based upon the Contract law and the requirements for the valid contract. As per the given contract, it includes structural elements that are missing in the reviewed contract. It includes the suggested improvements that require to be implemented in the contract.
A contract is termed as an agreement in which two or more parties are voluntarily entered for the purpose of creating the legal obligations on the parties of the contract. Contract plays a very imperative part in various areas of life from business deals to the center for the local shopping. For the valid contract, it is important that all the essentials and requirements must comply by the contractual parties. The required essentials are mentioned below:
Offer and acceptance-
Offer is the willingness of one party to form the contractual relationship with another party to make the contract binding. It is important that one party, made the offer to another party and another must accept the offer whether verbally or in written form. If the party to whom the offer is made makes the changes in the offer terms and conditions and if the initial offer is rejected for this the party is not bound to accept the changed offer.
It states that a valid contract must consist of valid offer and acceptance which means that the acceptance can be verbally or in written form.
Consideration is such a thing which is promised by one person to another. Consideration can be in the form of money, service or promise to perform any action. Consideration may be sufficient about not require to be adequate. Consideration is regarded as a binding proof of the valid and existing contract.
Parties of the contract must possess the capacity to enter into the legal relation which states that the parties must be competent and of sound mind to make the purchase necessary for the parties. Parties of the contract must possess the ability to understand the contractual terms and conditions .
Parties of the contract must have legal and valid intention to make the party legally binding. It is important that the parties possess the intention to create legal relation by making the parties legally binding towards the agreement. It is important that the parties have the intention to legally binding the contractual parties.
It is important that the contract must be valid by complying all the essentials of the valid contract. It is important that the contract must formulate with all the legal formalities in written form.
It is important that the parties with the requirement of both the implied and express legal authority by complying with all the legality.
Any valid contract musty satisfies all the legal requirements and if contract elements are lacking or irregular than the contract becomes unenforceable and invalid. In this context, it is important that the contract must form for the legal purpose.
AGC (Advances) Ltd v McWhirter
In this case, P Put up the property for sale at auction of $70,000 and instructed for the withdrawal of the reserve to the auctioneer and on the other hand D make a bid of $70,500. In this D claimed for the contract as the highest bidder. In this case, the court held that bidders at auction make offers that may or may not be accepted which states that the highest bidder of an offer is liable to accept the offer and after acceptance parties make the contract but the vendor remain free to withdraw the property from the acceptance of any bid.
Biotechnology Australia Pty Ltd v Pace
In this case, parties enter into the contract of employment with Biotechnology which includes the option of participating the staff of the company in an equity sharing scheme. But at the time of the contract, there is no such scheme. In the Pace is sued for the breach of the contract terms and condition. The court states that if the parties making any promise for the payment of the unspecified amount is not enforceable.
Godecke v Kirwan
In this case, purchaser entered into a written agreement with the vendor for the sale of land. In this, the purchaser further entered into an agreement by containing the same terms of the above agreement. In this, the vendor refuses for the sale of the land. The court held that any insertion of the additional conditions and it, not an agreement on which the purchaser require to agree. Its concerns about the additional conditions which if required are implemented.
Popiw v Popiw
In this case, Helga Popiw left her husband and husband orally promised with his wife that after her returning he put the home in their names. After returning Helga she wants that her husband performs the promise. In this context, the court held that in return for the promise husband demand more and compels to cohabit with the husband. In this, there is a law which compiles the Helga to cohabit with the husband.
Australian Woollen Mills Pty Ltd v The Commonwealth
In this case, the government of Australia introduced the subsidy for the manufacturers of the woolen where AWB sues for the contract and its breach. In this, the government denied the liability which is not legally binding in the parties of the contract. In this, the court held that no contract is legally binding among the parties where the parties are not capable of the acceptance.
Henry Kendall Ltd v William Lillico Ltd
This case is a concern with the incorporation of the terms of the contract. In this case, the court held that it is assumed that the seller agrees with the terms of the contract for a good cause.
Structural elements are missing in the reviewed contract
In the reviewed Commercial Hire Purchase Agreement the under mentioned are the missing points that need to be implemented in this contract.
Terms and conditions
In this contract, it includes only terms, not the conditions on which the contractual parties perform their legal obligations.
Conditions that need to be inserted in the agreement are mentioned below:
In this, the buyer not possesses the right during the contract validity to transfer the goods to the third parties during the contract.
The buyer of the contract does not possess the right to assign the rights and obligation of the contract so as to offset the payment of the contract.
The buyer must promise to set forth the technical documentation for the goods as per the requirements established by the goods manufacturer.
It is the responsibility of the seller to fulfill the obligations as per the requirements that need to be complying as per the contract laws by providing technical assistance and goods exploitation.
In this, the right of the ownership shall be transferred to the buyer after the fulfillment of the contractual obligation.
Conditions related to the delivery of goods
While delivering the goods the buyer is accountable for the inspection of the goods for determining the compliance that can be used purposefully.
Buyers are not obligated for the payment of any loss or damage to the goods due to the conditions which are beyond the buyer control will not abide the buyer for the payment of the damaged or lost goods.
It is the responsibility of the seller to undertake the responsibility to deliver all the documents related to the goods and also inform the buyer about the uses of the goods by providing the necessary warranty.
In this agreement, the parties not include the unforeseen circumstances where the party is liable for the payment of the damages in case if any delay in performance of the contract. These are the circumstances which are caused due to the event which is not under the control of the parties. The seller can refuse to perform the contracting obligation in case of unforeseen circumstances.
In this agreement, this clause is missing as according to this clause seller is not liable for performing the contractual obligation in case of wars or change in the policies of the government.
Liability and Penalty
In this agreement related to the conditions for the maintenance and preservation of goods are missing from the moment of the goods acceptance until the termination of the contract. Any loss or damage to the goods will not exempt the buyer for the fulfillment of the contractual obligations.
In case the parties breach the contractual terms other than the obligation for the payment on the buyer behalf which makes the buyer liable for the payment under the contract up to 5% for the amount of the outstanding credit and termed as breach until and unless the reasonable period is established to implement the correction in the contract.
For the payment of the parties of the contract will not exempt the buyer from the fulfillment of the obligations related to the contract and not prematurely terminate the contract before the term of the contract.
In accordance with this clause if any party does not comply with any of the provisions or with the necessary compliance then the parties are liable for the penalties.
This agreement missing the provision related to the confirmation of the buyer for entering into the legal capacity for the performance of the contract.
Any entry into the contract not violates the contract, judicial decision or any document of the administrative agencies that binding upon the buyer.
The buyer provides a guarantee for the obligation fulfillment that may acquire by the buyer against for any existing or future property.
Premature termination and expiry of the contract
In this agreement, it is missing about the provisions of any additions or changes in the contract that are required to be prepared in writing.
In this agreement, the conditions related to the lapse of the contract are missing. The contract is lapse upon the expiry of the terms of the contract when all the contractual obligations are fulfilled. If the buyer has any arrear in the delivery of goods then the seller is not liable to transfer the right of the ownership.
If the buyer submitted false information to the seller which affects the contractual obligations and further if the buyer fails in making the contract fees within the specified period of time.
In case if the buyer fails in the payment or premature terminate the contract then the payment of the installment made during the validity period of the contract shall not be returned to the buyer.
Exchange of Notices
This clause is missing from the agreement where any notice submitted by one party to the other party as per the contract should be prepared in writing.
In this agreement, the clause for settling the disputes is missing. In this, it is important that the parties must mention that if any issues arise among the parties in the future then the issue is resolved in accordance with the arbitration clause.
If the parties fail to reach on an agreement through arbitration then the dispute is settled with the assistance of the courts.
With the discussions above, it is concluded that for the enforcement of the contract it is important that the parties must fulfill all the valid requirements of the contract so as to give the contractual validity to the contract under the law.
law assignment help, business law assignment, law dissertation help, business law assignment help, law assignment writing service, taxation law assignment help, corporate law assignment help, commercial law assignment, law homework help, contract law assignment help, constitutional law assignment help, criminal law assignment help, company law assignment, law assignment writing, commercial law assignment help, corporate law assignment, administrative law assignment help, property law assignment help