Business Law Assignment Help
You must write an answer to the problem-type question below, using the ILAC (Issues, Law, Application, Conclusion) format, a worked example of which is in the Resources folder.
Dan owns a business which sells second-hand cars. He employs you as its legal advisor. Dan phones you one day and tells you about the issues.
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Business is a daily activity and therefore agreement or contract between two parties makes the trade legal and effective over a longer period of time. The current report will discuss various case related to contract law, which will in conducting business activities in an effective manner. Each case and application of law within the same will be done under the current report.
Under this case, a customer saw a second-hand car of which was placed in the shop of Mr. Dan and wanted to purchase the same (O'Sullivan, 2018). The model of the car was Honda Jazz, and it was off white color, however later on the car offered by Mr. Dan to the customer was a red car of the same model, the customer refused to accept the car and pay for the same, as she thought of a new white car instead of Red.
In this case, yet another customer, Michael, showed his interest in one of the 2015 Toyota CX truck to purchase $18,500 which showed a price tag of $20,000, in this regard a letter was sent by Mr. Michael to Mr. Dan and the same was reached to Dan on 5th January, and he gives acceptance of the same on 7thJanuary (Emir, 2018). On the 8th of January, Michael sent a letter to revoke his interest in buying the truck; the letter sent by Michael was delivered to Dan only on the 10th of January.
In this case, the salesman of Mr. Dan did not have the power to enter into contracts on his own, and the prospective contracts need to be presented in front of Dan. The salesman presented five contracts together in front of Dan; he signed it in a rush. However, while delivering one of the trucks to customers from the shop, Dan came and said he is not willing to sell the truck as he has promised to sell the same to another individual. The customer said, he has signed an agreement of Dan, but He refused to give the delivery of that particular truck.
In this case, one of the customers was walking in front of the car lot and see a sticker saying ‘$ 10 000' on the windshield. However, when the customer reached to Dan, he refused to sell the car, saying it is actually worth $15,000 and is actually worth 15,000 dollars; the sticker was put in by the salesman as a mistake. The lawyer of the customer sued Dan (Burrows, 2018).
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The law related to this case is laid in section 22 of the English contract act. The law said that any agreement which is made with a mistake related to the subject matter of the contract, the contract shall be called void.
The law related to this case is mentioned in the section of the English contract law. The section says, if the offer was communicated through letter and upon reading the same, the party gives acceptance of it meanwhile if the person revokes his intention to purchase by letter, it shall be revoked, however the letter should reach the next party before the proposal is accepted, if the letter will reach, later on, the contract will say to be made (Act, 2018).
The law related to this case is mentioned in the section of the English contract law. It says that an agent acts as a representative of the principle and can enter into a contract on behalf of his principle.
The law related to this case is mentioned in the section of the English contract law. The section says, that display of goods is merely an invitation to offer and the offer made by the customer to the desk for the purchase of product represents a proposal, which is when accepted by the shop owner, becomes a contract, otherwise not (Auchmuty, 2018).
In this case, the agreement between Dan and customer was in the light of mistake because both the parties felt that the good they are talking about is the same (Truby, 2018), while it was not the same (Teasdale, 2018). In Hartog v Colin & Shields, it was clearly mentioned that any agreement which is made in a mistake is regarded in law as null and void. None of the parties can force each other to follow the contract.
Under this case, the acceptance of the offer made by Michael was sent by Dan. The acceptance has been sent from Dan's end and for him, it is a contract, later on, Michael revokes the contract.The letter for revocation has reached to Dan after two days of acceptance; therefore it is a valid contract for both parties as laid down in Brogden v Metropolitan Railway Company.
The provisions on English contract act clearly states that an agent is a representative of his principle, a salesperson is also a representative of his principle, therefore the contracts which were signed by Dan through salesperson is valid and Dan is liable to follow the contract (De Filippi and Hassan, 2018).
In this case, the customer saw a car and wanted to purchase it. However, once the customer reaches to the owner for selling of same, he refused. He has all the rights for refusing to sell the car because a piece of good showed outside is just an invitation to offer, not an offer itself, the acceptance of which will amount to agreement or contract.
An agreement made by mistake. Therefore Void.
The contract is made before the letter of revocation reaches to the acceptor, therefore it is a contract
The contract is valid and Dan is liable for the contract signed by him.
No contract is made. It was an invitation to offer instead of the offering itself. The offer was rejected by Dan, therefore it is rejected.
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