BUSINESS LAW

Business Law Practical Assignment



Business Law Practical Assignment

Introduction

The government of Australia is committed to improving economic performance of Australian through constructive and innovative measures across all economy sectors. In order to do so, government has established common law of contract. The purpose is to establish seamless national economy that is productive and provides optimal trade opportunities within Australia and other countries of the world. Australian contract law owes its origin to English Common law that is a significant source of law for several international commercial transactions (Allen, 1987, 16). In order, to understand more about common law of contract we are going to discuss a case that includes application of common contract law of Australia. The key purpose of this paper is to let readers know about the importance common contract law of Australia in the modern economy and daily transactions.

Question # 1

Issue

This is case of Jane and David. Jane is a buyer and David is seller, Jane wanted to buy an antique Federation Bed from David. Jane saw the Advertisement in the daily newspaper. After discussion, all the important discussion Jane agreed to but the bed for $ 3,500. Next morning the bed was delivered to Jane's house, she was very excited and invited her friend Emily who was an expert of Federation period furniture. She confirmed her that the bed, not original antique. Now the question arises regarding the legal binding of the contract between David and Jane.

Law

According to the Law, there are some rules of a legal contract. There are two main components to legally two parties in a contract. One is agreement, and other is consideration. Within consideration and agreement lies variety of provisions that add to the contract legality. It includes performance, liability, offer, payment terms, obligations, terms, and conditions, and breach or default of the contract (Adams & Brownsword, 2000, 49). A legally binding contract includes an offer of an indication to the offeree from an offeror of the willingness of the offeror to enter into an agreement on the planned terms and offeree provides valid acceptance. Then the contract is considered to come into existence the movement an offeree make a valid acceptance and communicate to the offeror.

Application

Offer

In the Case of David and Jane, David offer to sell his antique bed in a newspaper. This newspaper advertisement shows that David want to sell his product; however, this is just an offer on the side of David, which he is free to make.

Acceptance

Initially Jane did not accept the offer and took time to think about it. However, when she found that David does not want to sell the bed the initial price, i.e. $3000, then Jane called David and accepted the offer at $3500 in cash. This shows that David is an offeror while the Jane is an offeree. There is an acceptance on the side of Jane pertaining to the bed.

Consideration

Consideration is the backbone of the process of contract. In the case of Jane and David, David ...