Essay on business law

Submitted By tuchagomes28
Words: 1667
Pages: 7

Business Law Assignment 001
Student Number: 1307312

Business Law Assignment 001
Student Number: 1307312

Contents

Introduction Page 3-4
Main Body Page 5-8
Conclusion Page 9
Bibliography Page 10

Business Law Assignment 001
Student Number: 1307312

This essay will attempt to talk about a case study analysis, about a contract Law, an agreement made between 2 parties. Sue that borrowed Peter an sum of 25.000 to be repaid with interest of 12% by no later than 1st of July 2012.
In this case it was made an bilateral contract, when Sue received consideration in form of that Peter promise to pay the sum with an interest fee and Peter received consideration in form of the sum of 25.000, so this is called bilateral contract, because both of them made contractual promises.
The case will be argued, by advising Sue into 5 points of different situations. Considering the case above the concept of formation of contracts and their essential elements, such as Offer, Acceptance and Consideration, will be the main points to discuss and analyse the case at each situation and relate them with the appropriate table of cases according with Business Law.

Brief Note:
1.Contract Law is an agreement between 2 parties, when one makes an offer and the other accepts that offer. “A contract is a legally enforceable agreement giving rise to obligations for the parties involved. The law of contract determines which agreements are enforceable and regulates those agreements, providing remedies if contractual obligations (undertakings or promises) are broken. Under a contract, the parties voluntarily assume their obligations or undertakings” (The Law of Contract, Koffman and Macdonald, 2007: p.1)
2.Offer and Acceptance are essential elements when doing a contract its vital that one of the 2 parties have offered and the other have accepted.“ offer is a vital element on the road to agreement. It must be distinguished from all other statements made in process of negotiation. Only an offer is capable of being accepted and, therefore, making a contract…” “The acceptance should reflect the offer precisely in order to result an agreement…” (Contract Law, Sweet & Maxwell, 2001: p.29, 30, 43)
3.Consideration it the agreement support, each party must give something to another and it could be in form of goods or services.
“We have seen that an offer is not an offer to contract unless expressly or impliedly, it asks for something in return. Acceptance consists in giving what is asked for, whether it be a promise or an act, is the consideration” (The Law of Contract, Sweet & Maxwell, 2002: p.66)

Business Law Assignment 001
Student Number: 1307312

Case 1: In this situation Peter paid 20.000 in settlement of the debt early than the due date, under the rule in Pinnel’s Case, paying an debt early than the due date its considered a Good Consideration, because it benefits the promisor, so in that circumstances Peter was giving to Sue an Good consideration by paying early.
Even though Peter paid on a early date he did not paid the full amount that was stated on agreement, so that based on Pinnel’s case rule, the creditor will still able to claim the outstanding balance of the debt unless the borrower can show that some consideration was supplied in return for the creditors agreement to take the lesser sum. Equally if, the…