Law for International Trade

Law for International Trade

Case I

The contract is a mutual agreement in which two or more parties exchange the products or services with the intention of following any legal obligations involved in the process. Thus, contracts are legal bindings and have certain conditions that need to be met:

Offer

Acceptance

Consideration

Intention of legal relation

These elements are essential elements of any contract. The contract is not legal if any of the elements is missing (Rawls 2009). The three cases discussed in this assignment are evaluated against above mentioned elements to find out if in each case the contract is formed between the parties or not. Webb Timer Merchants Ltd entered into an English contract with O'Flynn Furniture Co. Ltd. of Dublin, Ireland to deliver American tulipwood. However, O'Flynn Furniture Co. Ltd was not able to make payment on the promised date due to the financial issues and liquidation of the company. According to current situation, seller has delivered the goods but buyer has not paid for them as per the contract. This shows that buyer has breached the contract.

Breach of contract is a condition in which one of the parties involved in the contract is unable to perform as per the requirements. The breach of contract is committed by any of the party involved in the contract by failing or refusing to perform without any lawful excuses. The breach is also practiced if the party gives defective performance or incapacitates from performing. Breach can also occur if the party refuses or fails to perform in case of the fallen performance. This is called prima facie a breach (Singh 2010, pp. 25).

There can be a number of reasons of breaching the contract which in the case under discussion is financial situation of the buyer. In the case under discussion, the buyer company has not informed the selling party about its financial constraints. Thus no legal excuses as of current situation are given by the buying party. However, the company has not breached the contract in terms of defect in performance as it occurs when the breach takes place when promise is fulfilled but in a different way such as difference in timing of payment. In the current case, O'Flynn Furniture Co. Ltd has shown breach as it is completely unable to perform the contractual obligation. Also, the company has not incapacitated itself as it has not bought the same product of American tulipwood from any third party. O'Flynn Furniture Co. Ltd has no longer the capacity to perform the contract or it may no longer be willing to perform.

In this scenario, the seller can seek the court for the remedy of its delivered goods. A legal remedy is one in which court upholds the rights of the claimant and the defendant in such case has to redress for breaching the contract. Thus, Webb Timer Merchants Ltd can ask the court to provide the remedy for the breach of contract that it entered with O'Flynn Furniture ...