CONTRACT LAW

Contract Law



Contract Law

Case Summary

In this case, Nick provided a rental car to Angela for £250 per week and the contract is to last for nine months. After three months of paying the rent, Angela falls ill and a contracts chronic fatigue syndrome. Nick agrees to accept £125 per week for the rental, until Angela recovers. For two months, Angela pays the reduced rent. Her husband Will wins £200,000 on the lottery, but he refuses to share any of the money with Angela. After this, Angela inherits £20,000 from her dead aunt. Even after attaining this large amount of money, Angela fails to inform Nick and continues paying the reduced rent for the car. After two weeks, Angela recovers from her illness. Nick finds out about Willy's lottery win and Angela's inheritance. After finding this out, Nick claims for the full arrears and the return of the car.

Contract Law

When two or more parties agree to an agreement with an intention of creating an obligation that is legal, is known as a contract. It is a promise that is enforced legally by one party to another. The agreement binds the parties to be concerned about the bargain which is commercial and involves the hiring as well as sale of commodities (Beale & Furmston, 2007, pp. 56). In English law, the contract is a promise or an agreement reached on a set of promises. The breach of contract is recognized by the law and legal remedies can be made.

Every contract cannot be enforced by the court for the enforcement of promises, or an agreement court observes some elements. Court will prove that agreement as a contract after having a check on these elements. The contract involves a process of certain elements. The process starts from an offer. For the formation of the contract the offer must be accepted, unconditionally. There are certain more requirements for the offer and acceptance. After the communication of acceptance, law needs two other elements. One is consideration another is terms of the contract (Adams & Brownsword, 2004, pp. 89). An individual or company that seeks to act under "British" contract law will need to be clear about which legal system it comes under. Depending on which system applies, there are several important differences in principle and application of contract law. English law has a concept named "equity" that applies in most cases, including contract law. Equity means that a court has the power to override the strict letter of written (or statute) law where it believes that to apply the statute law strictly would be contrary to the interest of fairness and justice. Scottish law does not recognize this concept.

Breach of Business Contract

If the contractual promise is not fulfilled by any one of the parties, it results in breach of contract in business. This is a legal cause of action that means that a party has not honored the promise either by no-performance or interference. The breach can vary in different situations, and some of ...