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Application of Law of Contract to a Given Fact Situation

Paper Type: Free Essay Subject: Business
Wordcount: 2641 words Published: 13th Sep 2017

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An agreement is a legitimate get that can be connected by law between at least two gatherings. It can be composed or talked. In the event that an agreement is acknowledged by the gatherings, the proposition to make lawful relations is considered legitimately, on the off chance that it is thought and expected. These are likewise called five components of a substantial contract. Any gathering taking an interest in an agreement must have an ability to imply that it must be no less than 18 years of age to make an agreement. The individual must have the capacity to contract rationally. Minors who mean individuals less than 18 years old can sign an agreement just on the off chance that they have a few witnesses who can sign for their sake. Additionally, individuals who are hitched yet less than 18 years old can sign contracts since they are considered grown-ups in the court. Contracts might be composed or verbal, contingent upon the individual or contract they are subsidiary with. Contracts ensure a gathering as an agreement in which the agreement is marked, however just on the off chance that one side of the agreement does not ensure the execution of the other for the flawed establishment. The other type of the agreement is a restrictive contract assertion; Contract is an agreement that is utilized when administrations or costs cannot be given when the agreement is made. Execution will be performed on a future date and execution will be performed if certain conditions are met or satisfied. For instance lease a house.

Difference between a simple contract and a deed.

Simple contract: A simple contract is in written record in two parties. So that why it is called a simple contract. In this contract two parties write the conditions and signed the contract.

Deed: A deed is a legitimate instrument in composed and it is passes marked or bore witness to in a few wards fixed. It is usually connected with exchanging title to property. The deed has a more prominent assumption of legitimacy and is less rebuttable than an instrument marked by the gathering to the deed. A deed can be one-sided or reciprocal. Deeds incorporate transports, commissions, licenses, licenses, confirmations, and restrictively powers of lawyer if executed as deeds.

The requisite elements that must be established to demonstrate the formation of a legally binding contract are:-

  1. Offer
  2. Acceptance
  3. Consideration
  4. Legal capacity

Offer and acceptance Offer and acknowledgment are components required for the arrangement of a lawfully restricting contract: the outflow of an offer to contract on specific terms by one individual (the “offeror”) to someone else (the “offeree”), and a sign by the offeree of its acknowledgment of those terms. Alternate components generally required for a legitimately restricting contract are thought and an aim to be lawfully bound.

Offer and acknowledgment examination is a conventional approach in contract law

Consideration is the concept of legal value in connection with contracts. It is anything of value promised to another when making a contract.

Legal Capacity

A contract is a legitimately official understanding. Once an offer has been acknowledged, there is an understanding, however not really an agreement. The component that changes over any understanding into a genuine contract is “aim to make lawful relations”. The courts look for proof that the gatherings to the assention planned that it ought to be represented by, and subject to, the law of agreement; so that the understanding offers ascend to legitimate results. Each gathering subsequently receives a lawful commitment, and each may look for a cure in case of rupture.

There are also other two types of contracts:-

  1. Bilateral contract
  2. Unilateral contract

Two-sided and uneven contracts include the utilization of an activity or not to complete an activity in regard of each part. There is a Bilateral Agreement amongst corresponding and common trades of guarantees among people. A reciprocal arrangement is once in a while called respective assention since it makes two guarantees. The word made by the one party and the word made by the other party constitute a satisfactory thought (see exchange underneath). A one-sided contract contains a guarantee made by a solitary gathering. The bidder is promising to make an exchange (ie, a man making a proposition) to play out a specific activity when he or she understands the request that he or she is lawfully enforceable on a legally binding premise. The offer is acknowledged and contracted. Be that as it may, the acknowledgment of the proposition might be scratched off until the execution is finished. The main bidder that is specified is lawfully bound, since this is an uneven contract sort. The casualty may go about as he wishes, or the demonstration might act naturally forced, however I can’t be arraigned for not having the capacity to play, or since he began, he has made no guarantee, regardless of the possibility that he forsakes the execution.


As we as a whole know when two gatherings consent to the arrangement, at exactly that point an agreement is viewed as legitimate. In the event that the terms are valid, and the gatherings may expect that their conduct has imagined that the terms are authoritative, the assention is for the most part enforceable. The agreement is a legitimate hypothesis a standout amongst the most essential things is that the agreement applies lawfully. By the court the agreement can decide the rupture when it is inconceivable for a gathering to perform and on the opposite side if a gathering damages its own particular part and on the off chance that they see whether it is a genuine way or if the break is not genuine, then the blameless party You can guarantee an interest in court for the default contract or the announcement is not made by the traded off gathering. One more thing than the administer for cure rupture of agreement is known to remunerate harms. This implies an aggregate of cash to put the petitioner to repay harms


Main Facts: Mathew has been diagnosed with Alzheimer’s (memory loss) in the last 3 months. Jane Mathew’s wife wanted to sell her house and invited a mortgage broker to handle this sale. Helen and Jim were interested in buying the house. Jane and Mathew signed the agreement. Helen and Jim pull out of this agreement.

Legal Issues: Jane needed to offer their home and she knows his significant other enduring with Alzheimer issue (memory misfortune issue). Is the consented to arrangement by Mathew for his home deal to intermediary is lawful or voidable. Is that Helen and Jim haul out of this assention is a reasonable choice by representative as indicated by law.

Apply Legislation: The unlawful contract law was instituted in 1970 and the law of property in 2007. Mathew’s better half needed to offer the house when her significant other was determined to have Alzheimer’s. The deal was settled in Helen by the merchant home from home, and Jim couldn’t proceed. Mathew did not sign the agreement in light of the fact that there was an issue of memory misfortune since he was not rationally solid and in the event that he was rationally debilitated, any archive marked by him as indicated by the law is not substantial. Intemperate weight can be overruled by casualties of unjustified weight contracts. Subsequently, the withdrawal of Helen and Jim from this assention by middle people does not lawfully influence any representative.

A contract can be discharged by law under the following grounds

A: Two selected grounds

Agreement: A shared comprehension between at least two lawfully able people or substances about their rights and obligations in regards to their past or future exhibitions and thought. While an assention more often than not prompts to an agreement, it could likewise be an executed deal, a blessing or other exchange of property, or a guarantee without a lawful commitment.

Cancellation: Arrangement in an understanding that concedes the privilege to end. it before its lapse, under determined terms and conditions. At the end of the day they can scratch off their agreement whenever they needed yet they ought to keep a few terms and conditions in their brain before making any stride.

B: Main Facts:- John and Andrew signed an agreement for the sale of a property and an agreement for the payment of deposits. The deposit was not paid and the vendors who requested payment within three working days of the agreement were canceled. The buyer gave his attorney personal honor on the third day at 14.30, but the seller did not accept the check and canceled the deal.

Legal issues:- The understanding accommodated the installment of a store by john and Andrew however store was not paid by dealer issued see requesting installment inside three working days would be crossed out. However the individual check gave by john and Andrew on given time was not adequate and wiped out the understanding by dealer is lawful or not.

Apply Legislation:- By applying the 2007 property law, and the merchant is lawfully qualified for scratch off the agreement. Be that as it may, John and Andrew, through a legal advisor, gave the court an individual check in 3 business days when the vender declined to acknowledge the check and crossed out the agreement. For this situation, the court could apply the legally binding cures in 1979 and the vender may require more opportunity to make the installment. In another frame Cash or ledger.

C: Facts: Ben (offeror) and Michael (offeree) signed an agreement to build a fence made of barb wires. Ben visited the farm to check on his fence he saw the fence used diamond wire which was not in the contract. Ben wants to discharge their contract.

Apply Legislation:- Ben can release the agreement made by him with Michael to construct a fence in light of the fact that the agreement made between them to utilization of thorn wires for the fence. Be that as it may, without worried with ben he utilized jewel wire and now by applying law identifying with legally binding cures act 1979 the court can release his agreement as a result of under the execution of Michael.

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D: Facts: Dr. Anna is a plastic specialist. Paula is a model and she has been looking for exhortation from her as far as having a cosmetic touch up, yet Dr. Anna didn’t specify any reaction of this operation. According to concurred Paula pay 70% of store and consented to pay 30% after the recuperation. In any case, lamentably Paula built up a terrible response which left her with patches of wounds all over for increasingly that she anticipated. Paula declined to pay rest 30% and she needs to release this agreement.

Apply Legislation:-  For this situation Paula can grumbling against her Dr. Anna for not specified any symptom in understanding of that operation on the grounds that Paula grew awful response all over for progressively that she anticipated. By applying the law Frustrated contract act 1944 court can release the agreement in light of the fact that the execution of the agreement and furthermore not advising Paula to the symptoms of surgery so she don’t have to pay the staying 30%.

E: Facts:- Thompson offered a motel complex available to be purchased for $500,000. The motel was said to contain 24 units, which was valid. Yet, the purchaser didn’t know or he was not informed that the complex had asset agree to work just 12 units. Vincent sold the motel to Thompson however he wants to pay under the steady gaze of he counsels his legal advisor.

Apply Legislation:- Thompson purchased a motel from Vincent for $500,000 as contract said for 24 units yet when Thompson understand that the complex had asset agree to work just 12 units. For this situation Thompson has a lawful appropriate to counsels with his legal advisor before making any installment. Court will apply legally binding misstep act in light of the fact that the Vincent wasn’t done that purposefully so court will state to make another agreement of roll out improvements or court can likewise apply the authoritative cures act 1979 to settle down the deal for both sides.



Legal Issue:-  Ben and Sandeep marked an agreement to manufacture a walkway at his new home. According to understanding ben purchased every one of the materials required and provide for Sandeep to complete this work in only two weeks. Sandeep began work but since of terrible climate he not able to complete his work in two weeks yet ben did not get it. Because of this weight Sandeep paid $500 for two temporary workers to help him in completing off this walkway. Regardless of whether the Ben need to pay $500 which Sandeep paid for 2 temporary workers to done work on time.

Sandeep’s position:- In this case Sandeep’s position is not really good because weather did not allow him to complete work on time and ben was not understanding the situation and putting pressure on Sandeep to complete the job in given time according to contract. . Then Sandeep hired two contractors and paid $500(wages) to do his job on time.

The Law which Invalidate this contract:- Everything for this situation is the apprehensive contract of the law 1944, which can refute the agreement. This is on the grounds that the agreement like Sandeep and Ben gets to be distinctly unimaginable after the execution or else it is baffled and the gatherings are exempted from further execution thus.

B: For this situation, Elizabeth purchased a cleanser business from Thomas and in an assention marked between them. Thomas concurred not to manage any work that had been repudiating Elizabeth’s labor for a long time in New Zealand. Since, in the wake of putting the law on restricting exchange with the terms of the above contract, he would not like to exploit the boundless utilization of any contender business territory.

C: Legal issue: Antonia bought a gun from Nathan. The weapon was defective. Nathan had concealed defects during sales. As a result of the defect, parts flew when the gun fire.

The law applied to the misrepresentation: By applying the law identifying with distortion for this situation, the activity of repairing the 1979 contract is upheld in light of the fact that it was a false explanation at the season of the deal which was Nathan and Antonia’s blame is enduring because of deficient weapon.







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