Contract Law

Question 1

The two parties may enter into a collateral contract which will serve to show that the first contract exists.

Question 2

The police are experts in protection. They therefore know how much protection is sufficient for a certain situation. The business owner’s request to have more protection than would be found necessary by the police binds him to pay for it. The excess protection given serves as protection.

Question 3

The court looks into the contract either subjectively or objectively. The court in this regard may seek to determine if the parties in a contract intended to be legally bound. This rule may be applied to a couple who are separated. Objective testing involves the court using an outside testing mechanism so as to decide if all the facts provided would be sufficient to show a reasonable independent third party that the two parties wanted the contract to be binding.

Question 4

Abdul does not make an offer that is capable of being acceptable. Instead, he makes an invitation to offer.

Sakna makes an offer to buy at $1800. If Abdul accepts to sell to her at the required price, he is legally bound to sell upon proper agreements of time and place.

Question 5

The article stands to be an offer because it has conditions. If a customer goes to the supermarket within the week, he is entitled to buy at the offered price.

Question 6

The postal acceptance rule applies when the offeree sends a letter to accept. New developments in communication systems acknowledge the availability of other communication methods. Emailing is applicable but only becomes effective the moment, the offerer receives the mail.

Question 7

Contractual law requires that Jassim does not pay the extra $50 since the agreement to dismiss it was beneficial to both parties. Jassim benefits from the $50 sum while Ali benefits from having an early payment.

Question 8

Promissory estoppel law prevents someone who has used deception in the past from benefitting from it.

If A tells his farm worker B that substance Y is mean is a fungicide and B goes ahead and sprays Y into A’s farm, he cannot then sue B for destroying his crops.

Question 9

If the buyer signs the document, he cannot be exempted from it

The buyer may however sue if the product has no term and does not work or causes injury.

Question 10

Some terms are only implied in the contract. They include statutes, prior dealings and conventions.

Question 11

The statements are measured on various grounds. First, it is measured on whether the statement was intended to be a lie or represented the belief of the person who used it. Second, the statement is looked at to determine if it ha any significant impact to the contract itself.

Question 12

There exist prior terms, conventions and statutes. These are recognized in the contract regardless of the fact that they may not be written. Other unwritten terms need however be acknowledged in the contract before they apply.

Question 13

Unconscionability principal is useful when unequal parties have entered into a contract. For it to be used one of the parties must be significantly weaker, the other person must know about this weakness and still use the weakness to his advantage. Otherwise, the rule does not apply.

Question 14

A breach of a condition amounts to a breach of the contract. A breach of warranty is not fatal to the contract. A breach of an intermediate term lies between the other two and is dependent on the time and severity. The condition is therefore the most important.

Question 15

If they have not taken advantage of it, they may claim that they have not accepted the contract. If they have taken advantage of the conditions set out in the contract, then they have shown acceptance of the conditions.