Business Law

Business Law

Answer 1

Case Introduction

In broader terms, the circumstances stated, and the nature of the contract in the case given is the general business contract. These types of contracts can be made for any small business or even for the mild level company. The example can be that if a person buys a franchise so he or she will enter into the general business contract with the franchisor or the parent company. This is also known as the partnership or the joint venture agreement because the two or more parties that are involved in the agreement pools in the resources and money for the establishment and running of the business. The contract, in the case, lacks the indemnity agreement. The indemnity agreement entails in it the future perspective regarding the contract made and the agreement signed.

Legal Implications of Case

The indemnity agreement was not present because both George and Anita were friends and they never predicted the fights and misunderstandings in the future. Furthermore, the indemnity agreement also includes the point that one party will protect the other partner in the future (Hagedoorn, 2007). This was also missing in the contract made between George and Anita, and was not written. The lack of indemnity does not bind both parties to protect each other in the future. This is because in the business contracts, the general rule is that if something is not present in writing then it is not enforceable by law (Governatori, 2006).

The circumstances mentioned in the case are an example of a bilateral valid contract. This is because firstly both George and Anita were willing to enter into the contract at the time of the agreement and both signed the contract. They also involved the solicitors in their contract which is a, clear reflection that there was a mutual understanding between both of them. Aside from this, all the legal requirement of the agreement and contract were also met, and all the rights and obligations of each party were also formulated in the written form (Hagedoorn, 2007).

The contract was also the partnership contract or agreement in terms of the nature of the contract. Both George and Anita were in the partnership business with equal sharing of the losses and the profits (Governatori, 2006). In the contract and in the partnership the violation of the contract has taken place, but, the problem is that the reason for breach of the contract is personal fights rather than any law or agreement related issues. The further consequences of the fights lead to the issues which has to be dealt legally and in the light of the law. In this case, there are several aspects that are appropriate in terms of the violation and the broke of the contract that took place between George and Anita (Governatori, 2005).

Breach Conditions of the Case

There are three conditions that are appropriate on this situation as far as the violation of this case is concerned. These three implications include the bad faith expulsions, continuation ...