Sample Contract Law Case Study

Contract Law Case Study Assignment Help

Contract law is one of the major branches of legal studies. Students pursuing legal studies need to know the various aspects associated with contract law in which they need to prepare an assignment case study.

Before you embark on this mission to prepare your contract law case study, learn the most important concepts of contract law here.

What is Contract Law?

A contract refers to the voluntary agreement between two or more parties and contract law refers to the whole body of laws governing it. Every written and even oral agreement involves an exchange of goods, services, money and properties. The body of law governs the agreement and also encompasses the obligations of the parties, limitations, privities, obligation and jurisdiction and its termination (Businessdictionary.com, 2016). It also incorporates the possible remedies and legal actions in case of breach of the contract by any party. Though mainly used for commercial purposes, it also holds significance for civil purposes.
Students pursuing law are required to prepare a contract law case study assignment to exhibit their knowledge in this discipline. However, most of them do not have a firm knowledge and grip over this subject and feel helpless when they are assigned a contract law case study.

Elements of Contract

Before learning contract law, the students must have a clear idea about the different element of the contract which would help them to understand the subject better.

Offer and Acceptance

Offer and Acceptance are the most important elements for any successful contract. The offer is a statement of willingness to provide the contract on specific terms by the offerer whereas acceptance refers to the unconditional assent by the offeree with the intention of accepting the contract (Lawhandbook.org.au, 2016).

The parties of the agreement must enter into a legal agreement to make the contract effective. It creates a legal relation between the parties as the agreement gets enforced by law. It is also important that the offerer and the offeree understand the legal implications and consequences that will follow (E-lawresources.co.uk, 2016).

Consideration

To make the contract binding, it should be supported by a valuable consideration. Consideration refers to the value promised by one party to another at agreed benefits or returns. Consideration can be money, some kind of service or right. The court or any legal institution will not question the adequacy as long as consideration exists (Study.com, 2016).
The court will never interfere in any matter of dispute if one of the parties in the agreement thinks that he made a bad deal. The deciding consideration depends on the individual value and capacity of the parties. But the court can intervene if one of the parties accuses the other of influencing or forcing the former in the deal.

Legal Capacity

The parties or people who wish to enter into the legal contract must possess the legal capacity under the purview of law. As people who are mentally impaired, minors, bankrupt, prisoners and other people explicating stated cannot enter into a contract (Lawhandbook.org.au, 2016).

Consent

All the parties expressed their willingness to enter into a contract should enter it freely with a proper understanding of the contract details. They should not take their decision from external influence, intimidation, threat or false hope and misrepresentation (Contracts.uslegal.com, 2016).
To devise a strong contract law case study, the students must have a clear idea about these essential five elements. But there are many students who have several queries on different aspects of contract law. Consulting contract law case study sample or contract law case study example will help them in these circumstances.

Contract law : All Your Queries Answered

Not always a contract law case study sample is able to answer and suffice all the queries. The students have numerous questions in their mind with this vast discipline under law. Here are the most important aspects of contract law discussed in detail.

Breach of Contract

Breach of Contract refers to the legal action taken by any party when the other party does not honor the binding agreement or any of its clauses. If a person within an agreement breaks the contractual promise and does not perform the duty expected according to the contract, then it can be referred as breach of contract (Smallbusiness.findlaw.com, 2016). According to the severity and gravity of the breach, it can be classified into:

  • Minor Breaches
  • Material Breaches
  • Fundamental Breaches

While minor breaches refer to the slight violations, fundamental breaches are drastic violations ensuing legal action.

Consequences of contract breach

Firstly, both the parties can try to get into a solution through informal meetings when a dispute arises. But when they fail, the non-breaching party can seek legal remedy. This is performed through formal lawsuits and the established court system of the respective country.
The parties can also agree to hire a unanimous arbitrator who will review the contract dispute and breach and deliver a solution. But when the arbitrator too cannot provide a universally accepted remedy, it reaches the court of law.
In case of direct and proved breach of contract, the court can provide relief to the other party by awarding a remedy borne by the violator.

Damages

The violator needs to compensate the other party for the damages caused due to the breach of contract. According to the extent of the damage caused by the responsible party, the amount of compensation is decided.

Specific Performance

When the damages caused cannot be recovered through compensation then the court can ask the violator for a specific performance. Specific performance can be defined as any activity directed by the court that the breaching party must perform. But it is done when the compensation does not suffice the damages incurred. Generally, the court of law rules specific performance as a remedy when the product or service promised in the agreement is unique. Such as the real estate industry is referred to as unique where there cannot be a duplicate property with same facilities. But even the court will enforce this specific performance on the violator when the agreement made is fair and equitable without providing any undue advantage to any party.

Cancellation and Restitution

The non-breaching party can get authorization from the court of law the cancel the contract and sue for restitution when the violator get compelled to bring back the position it was before the contract was formulated.
These are the main consequences of contract breach (Contractsandagreements.co.uk, 2015). Breaching contract is a serious offence and a common reason of lawsuits.

Silence as Acceptance

Generally, silence or not responding to the offer does not get considered as a sign of acceptance. However, in some specific cases or situations, silence can be treated as acceptance. Then the question arises, when the silence of a party can be regarded as a sign of acceptance? Suppose a person X sends a packet of food to another person Y and also informs that the former expects payment for it. If person Y without agreeing eats the food then this activity can be regarded as acceptance. There are some specific requirements which when sufficed can be treated as acceptance (Legalmatch.com, 2016):

  • One party has made the offer while the other did not reject the offer
  • The offerer renders a particular service to the offeree
  • The offerer provides the service at his own free will without being influenced by any other person
  • The offerer informs the offeree as the former anticipates and expects a payment from the latter
  • The offeree has complete knowledge of all the above-mentioned events
  • The offeree should have used or accepts the service in some form which can be interpreted as acceptance under court of law.

This rule can cover other formal exchange of services other than the sale of goods. But unsolicited goods sent to people without formal acknowledgement cannot fall into this category. It would be treated as gifts.

Contract law : The basics

To make a contract viable under law it must accomplish certain requirements. It includes an offer and its acceptance, consideration, purpose, eligible parties and their consent. Other than these general rules, the associated parties, depending on the type of contract may need to fulfill additional requirements.
The term contract refers to the agreement in written form which includes the following elements. It must be verified under the court of law.

  • Introduction clauses (provisions)
  • Defining the parties and key terms
  • Statement (s) of purpose
  • Obligations of each party
  • Assurances and warranties
  • Attachments
  • Signature block
The contract can also be seen as a process which can be typically divided into three separate stages (Nolo.com, 2016).

Both the parties (can be even more) contemplate about the prospective deal by examining the arrangement and the risks associated with it.

Phase 1: Evaluate the deal

Both the parties (can be even more) contemplate about the prospective deal by examining the arrangement and the risks associated with it.

Phase 2: Reaching the agreement

In this stage, the parties negotiate and agree on the final deal with stated agreements. Then with accordance to the consent, the written contract is finalized which will act as documentary evidence.

Phase 3: Implementation and performance

The agreement after signed by all gets implemented. All the parties must remain obligatory towards their agreement and perform accordingly. If any of the party fails to perform their task, the other party can draw them into a legal suite.

Contracts and the Law

The basic contract is formed when two separate parties enter into an agreement and obliges to perform their duties responsibly. With the term party, it can refer to any organization, person or a corporation which enters into an agreement. The agreement is legally enforceable. The main laws which govern the contract law are:

The Common Law : Common laws refer to the set of laws which are developed by judges, courts and legal tribunals which provides regard and importance to every individual case. It is based on consistent principles where similar cases are deal with a similar set of laws (Legal-dictionary.thefreedictionary.com, 2016). The most crucial aspects of contract law fall under the category of common law.

The Uniform Commercial Code:

Contract Law Sample - Business and Contract Law

In order to answer this question, a discussion on the rule of Indoor management is needed. When an employee or authority from a company on behalf of the company, enters into a contract with any outsider, it is considered that the company as a whole is entering into the said contract. A noteworthy case in this regard is Bank of New Zealand v. Fiberi Pty Ltd . The outsider ....

Sarah Chernock
    

I have done Masters of Laws (LLM) from Australian National University.

Customer Feedback      5/5

Very good, i really recomend for every of my friends.they really care about of your works.

Contract Law Sample - Contract & Agency Law

(a) “The law affects a business from the moment it commences until the time it isdissolved.”Discuss the above statement in the context of three (3) key functions of business lawaffecting commercial activity in Singapore. In your analysis, you should providespecific examples...

Andrew Ponting
    

I have done Masters of Law from Bond University..

Customer Feedback      5/5

work was perfect done and i had a verry good mak, thanks for helpping me with my work.

Contract Law Sample - IRAC method

Barry decides to hire some ladders and planks from a local equipment hiring business to enable him to paint the exterior of his house. When he collects the hired goods, he is asked to sign a hiring agreement. Barry asks the employee of the hiring firm why he has to sign an agreement, to which the employee replies, "It is just for insurance purposes" ...

Laura Clawson
    

Graduate with a Bachelor of Laws (LLB) from Murdoch University School of Law.

Customer Feedback      5/5

Very good work done here and the expert are really eble to resolve our problems.

Contract Law Case Studies

Contract law is made up of a variety of regulations and laws enacted to enforce promises made under certain conditions. A contract is a legally binding agreement which enforces the obligations of each party, requiring them to honour any promises made to another party or parties under certain conditions. Contracts are entered into every day by individuals and businesses alike. A legally binding contract can be as simple as a transaction carried out by purchasing a loaf of bread from a convenience store, or as complex as a million dollar, hundred page credit agreement made between two businesses.

LGM Advisors is a leading Melbourne commercial law firm, professionals in contract law. LGM Advisors have the skills, experience and expertise to ensure that you and your contract matter is consulted upon with the utmost professionalism. Contact LGM Advisors and speak to a contract lawyer from Melbourne today on (03) 9832 0608 or by email at marketing@lgmadvisors.com.au.

☑High level expertise in contract law

☑Free fixed fee quotes

☑Delivery guaranteed

Check out our google reviews

Use our contract templates

Check out our legal fees

How are contracts formed?

  1. Agreement – The first step towards establishing a valid contract is an agreement of some sort, usually consisting of an offer made by one party which is accepted by another party or parties. To be legally binding, the contract must be based on an agreement which is not ambiguous, vague, or incomplete. All parties involved must reach consensus on the agreement.
  2. Consideration – This consists of the price or cost requested by and paid to whichever party has made the offer, in exchange for them performing what was offered. Consideration in this form is required for a contract to be legally binding.
  3. Intention to create legal relations – All parties to the contract must possess the intention to enter into a legal relationship through that contract. Consideration (price/payment) is usually evidence enough of this intention, though not always. This intention can be detailed in the terms of the contract.
  4. Capacity – Under law, some persons do not have the ability to enter into enforceable contracts. In this case, the ability to enter a contract or not is known as ‘capacity’, which is based on perceived vulnerability to exploitation. Minors and people affected by psychoactive substances such as alcohol, for example, do not have the legal capacity to enter a legally binding contract (with some exceptions, usually for simple contracts such as minor transactions).
  5. Formalities – Some types of contracts are subject to certain formalities. For example, a contract for the sale of a house must be issued in writing in order to be legally binding.

Contract Law Case Studies

Agreement – AGC (Advances Ltd) vs McWhirter, Supreme Court of NSW (1977) 1 BLR 9454

This case relates to the first requirement of any legally binding contract, agreement. In this case, the plaintiff had put up a property for sale at auction, subject to a reserve. The defendant made a bid of $75,000 which was the highest bid. When this bid was not accepted by the plaintiff (based on concerns over the defendants ability to pay), the defendant claimed a legally binding contract had been entered when they made the highest bid.

In this case, the court ruled that bidders at auctions are entitled to make offers, but that offer does not need to be accepted by the seller. Therefore, auctions act as an invitation to treat. This means that agreement was not reached, as the seller refused the bidder’s offer. Therefore a legally enforceable contract was not entered in this case on the basis of lack of agreement.

Capacity – Blomley vs Ryan (1956) 99 CLR 362

This case involved the sale of a farm by Ryan to Blomley. At the time the contract was entered, Ryan was suffering from prolonged and excessive alcoholism. Blomley knew this but went ahead with the contract. Ryan tried to call off the sale but Blomley took him to court, seeking specific performance (an order from the court to carry out the contract).

In this case, it was found that Blomley was aware of Ryan’s persistence problem with alcoholism, and the court noted that Ryan was ‘seriously affected by drink’ when the contract was entered. It was subsequently found that Ryan therefore lacked the capacity to enter a legally binding contract in this case, especially seeing as Blomley was aware of Ryan’s impairment and sought to benefit from it.

Intention to create legal relations – Air Great Lakes Pty Ltd vs KS Easter (Holdings) Pty Ltd, Supreme Court of NSW (1989) 2 NSWLR 309

This case involved the proposed sale of an airline to Easter by Air Great Lakes. Air Great Lakes claimed to have entered into a contract with Easter, which Easter subsequently refused to honour. Air Great Lakes sought damages from Easter, who claimed that they did not intend to create a legally binding agreement and that Air Great Lakes was aware of this.

The court found that the contract was not to be imposed as Air Great Lakes was aware of the fact the Easter did not intend for the agreement to be legally binding.

The above cases illustrate the importance of contract law, in that misunderstandings in this area can have costly consequences. It is the obligation of parties to ensure that they are aware of what constitutes a legally binding agreement should they seek to enter an agreement that is enforceable. For this reason, it is advisable that anyone seeking to create an important or valuable contract should have that contract drafted or reviewed by a contract lawyer to ensure it is legally binding and able to be enforced.

If you require expert assistance from a contract lawyer Melbourne, contact LGM Advisors on (03) 9832 0608 or by email at marketing@lgmadvisors.com.au.

Categories: 1

0 Replies to “Sample Contract Law Case Study”

Leave a comment

L'indirizzo email non verrà pubblicato. I campi obbligatori sono contrassegnati *