LL1023C Law of Contract II - Coursework Question

LL1023C Law of Contract II - Coursework Question

Introduction to Case

This case relates to the contractual rights of the parties involved, in a sense that each stakeholder in the case attains as per his obligatory binding in the eyes of the Law. The three parties involved in this case are:

Marlene,

Dash Signs Ltd (DSL), and

Henry.

Marlene is disappointed because of a delay in delivery of coffee machine by DSL, which could have enabled her to make a lucrative profit. However, it is important to note here that DSL made a disclaimer beforehand, stating the firm would not be responsible in case the machine delivery is delayed. In order to overcome financial distress caused as a result of such a delay, Marlene decides to sell off her private car. However, the sale was faulty since the car was sold using misrepresentation of the vehicle making it seem like it has only been used by two owners and concealing food stains on the seat with the help of seat covers. Henry, the buyer of the car, when found out the fraud, wanted to return the car in return of his money. Therefore, here Marlene was involved in making false commitments and claims using advertising to attract the buyer.

Background

This case relates to the requirement of defining contractual rights of the parties involved in a given situation. IAS 38 defines contracts as “intangible assets that have a fixed or definite term agreed by both parties. They provide for contractual rights to receive money or contractual obligations to pay money on fixed or determinable dates”. Contracts represent the value of rights that arise from contractual arrangements. Parties entering into a legal contract pursue the purpose of satisfying their needs. Another important concept that finds suitable application in this case scenario is that of contractual freedom. Contract law is, in fact, a sub-sector of liability law; a set of legal rules governing the civil liability arising from the different types of contracts.

Contract is known as the promise or the set of promises which are enforced by the law. For a valid contract there should be two or more separate parties must be involved. The parties should have to be certain consensus on specific matters. They should be ready to create legal relations for their promises as they are contractual promises in contract. Unlike U.S. law, the U.K. law does not recognize the principle of good faith performance of contracts. Otherwise the English courts will not enforce an undertaking to negotiate in good faith. If one focuses more particularly to the sales contract, it should be noted that the final agreement on price may be delayed, unlike French law, even if payment of the prize is one of the conditions of formation of contract. Similarly, transfer of property is determined by the contractual terms and may occur after the conclusion of the Convention. The risk passes to the buyer upon transfer of ownership, unless the parties have agreed ...