Aspects of Contract and Negligence for Business

Assignment title   

Understand the essential elements of a valid contract in a business context and the importance of terms in a contract

LO1 Understand the essential elements of a valid contract in a business context   

1.1 Explain the importance of the essential elements required for the formation of a valid contract

1.2 Discuss the impact of different types of contract

1.3 Analyse terms in contracts with reference to their meaning and effect

LO2 Be able to apply the elements of a contract in business situations   

2.1 Apply the elements of contract in given business scenarios

2.2 Apply the law on terms in different contracts

2.3 Evaluate the effect of different terms in given contracts

Purpose of this assignment

The aim of this assignment is to provide an understanding of the law of contract, with a particular focus on the formation and operation of a business contract. Learners are encouraged to explore the contents of such an agreement and, in particular, to appreciate the practical application of standard-form business contracts.

Additionally, this assignment is to provide an understanding of the law of contract, with a particular focus on the formation and operation of a business contract. This assignment emphasis on the importance of contractual terms.

Scenario 1:

Al Habib Builders issued an advertisement in the newspaper stating that’’ We may be prepared to sell our house for RO 3000 to our tenants; if  you would like to buy it make a formal  application…”.Ahmed was a tenant of Al Habib builders and he sent a formal application. Al Habib Builders refused to accept it. Ahmed sued Al Habib Builders for breach of contract.

Task 1 – LO1 - Explain the importance of the essential elements required for the formation of a valid contract 1.1(P,M2,M3) :

1. Explain the importance of the essential elements required for the formation of a valid contract and examine whether these elements of contract are present in the above scenario?

2. Explain the invitation to treat in the above scenario with cited cases?

3. Explain other types of invitation to treat with decided cases?

Scenario 2:

Nestle was running a special offer whereby members of the public could obtain a music record by sending off three wrappers of Nestle's chocolate bars within a specified time to a specific address. Faisal a minor sent three wrappers within stipulated time and claimed his reward. Nestle then rejected his claim stating that he was a minor. Faisal sued Nestle for breach of contract

Task 2 – LO1 - Discuss the impact of different types of contract 1.2 P,M1,D2 :

1. Discuss the impact of different types of contract based on their enforceability in the light of above scenario

2. Examine whether there is a valid contract between Nestle and Faisal?

3. Explain the other types of contracts?

Scenario 3:

Abdulla offered to sell a restaurant to the Ali for RO 20,000. Ali in reply offered RO 18000 which was refused by Abdulla. Later Ali sought to accept the original offer of RO 20,000. Now, Abdulla refused to sell it. Ali approached court for specific performance

Task 3 – LO1 - Apply the elements of contract in given business scenarios 2.1 P,M2,D1 D3:

1. Apply the elements of contract in given business scenario and explain whether Ali can compel Abdulla to complete the sale?

2. Applying decided cases, determine whether a request for information amounts to a counter offer?

Task 4 – LO2 - Analyse terms in contracts with reference to their meaning and effect 1.3 P,M2,M3 :

1. Analyse the significance of ‘terms’ in a contract with respect to their meaning and effect

Scenario 4:

Mubarak developed a new medicine for Aids .He now entered in to contract with Al Qasim Pharma a sales company, who were granted the sole right to sell medicines manufactured by Mubarak.

At the time of entering into the contract both parties discussed various matters relating to the contract and finally concluded that, the total price of the medicines to be supplied would be RO 10,000, that the medicines should be collected by manager of the company on the first day of every week and the contract period is from 1st January 2016 to 31st December 2016.

This imposed an obligation to make 58 visits in total. The manager failed to make 2 visits and some visits were made by other officials of the company. Anyway the company collected the medicines needed for the business. Now Mubarak is not happy with this and wanted to cancel the whole contract with the company

Task 5– LO2 - Apply the law on terms in contracts 2.2  P,M1,M2:

1 Apply the law on terms and identify the various terms referred to in the above  scenario

Task 6 – LO2 -  Evaluate the effect of different terms in given contracts 2.3 P,M3,D1:

1. Evaluate the effect of different terms in the above scenario 4 using a relevant decided case on the issue.

2. Do you think Mubarak can cancel the contract with Al Qasim Pharma? Why?