Commercial Law Formation of Contract Law

Question: Describe about the Commercial Law for Formation of Contract. Answer: Formation of Contract Introduction: The case involves formation of contract in compliance with the regulations of Commercial Law, Singapore. The present situation covers the offer of sale of textbooks through social website, which stated all the necessary information. Issues: If the agreement forms enforceable contract as per commercial law transactions for sale of Introduction to Business Law in Singapore textbook along with the class notes. The details of the offer was provided on a social networking site on 1November 2014 which was made by Alan. He provided the product information with the description on contents of textbook, class notes, amount of consideration and payment details. Rules: As per the Singapore commercial law, chapter 8 on Contract Law an agreement is said to be legally formed if it contains mandatory requirements which include the following points: The parties involved in the contract should be competent as the capacity to form a legally binding contract There must be offer and acceptance clause in the legal contract along with the rights and obligations of the seller and buyer respectively (Wilkinson?Ryan Hoffman, 2015) There must be appropriate disclosure of contractual terms and conditions in the contract to provide the details on duration of the contract, product description, payment mode and payment value (Hansen et al., 2015). Application: In the present situation, the contract is said to be legally formed that was offered by Alan on the social site indicating all the relevant details. The contract included the information on the textbooks and class notes, amount of consideration and the date of payment i.e. 5 November 2014. Since the offer accepted by other parties for purchasing the books by other parties on the agreed consideration, payment date as well as contents of the materials, the contract was said to be legally formed. As the sales offer had been accepted by Bernard, Charleen and Damien according to the terms and conditions mentioned in the contract offered by Alan hence, all the individuals are contracting parties. Conclusion: The offered agreement provided by Alan formed the legal contract as it contained all the mandatory requirements in terms of offer, acceptance and consideration details. Further, the contracting parties in the case are Alan, Bernard, Charleen and Damien. Bernards legal position Introduction: The case consists of consideration of legal position of Bernard for the sale of textbook that was available for free at the education centre. Although the contract offered by Alan contained all the relevant information therefore, can be considered as illegal basis of contract. Issues: Considering the requirements of contract, it has been established whether Bernard is eligible to enforce any claim against the contract created by Alan. It has been observed that the contract terms agreed by Bernard and performed completely on 4 November 2014 for exchange of Commercial Law book and class notes amounted to $200.00. Bernard accepted the offer and made the payment on due date but he came to know about the availability of the textbook for free of cost at the education centre. Rules: As per the contract law regulations, it is important to have clear and unambiguous intention to create the contract. Additionally, it is significant to mention the complete information for the agreement content by the offering party including the consideration value and payment mode (Cassiers, Janssens van Zimmeren, 2016). Further, the contract law regulation mentions that the party who accepts the offer should conduct due diligence on the subject of the contract and other relevant factors. It is important that the contract should contain all the error and fraud free information meant to deceive the contracting party. Application: The present situation covers offer made by Alan for the sale of textbooks and class notes in exchange of consideration $200 though the social networking site. Alan provided all the details on the contents of Commercial Law textbook along with the payment information. Moreover, there must be clear and unambiguous information present in the contract for a valid contract but details on the content with respect to the availability from others is not required to be mentioned by the offeror (Rice, 2015). In the given situation, Alan did not mention the details on availability of free distribution of textbooks at the centre, which is not mandatory disclosure according to the rules of contract law. Bernard himself was responsible to research thoroughly for the availability of the books from other sources therefore; he is not eligible to claim against the Alan on the grounds of free distribution of books from other sources. Besides, if Bernard is able to prove the fraud intention of Alan for creating the contract the he can claim the against Alan for damages. Conclusion: If the fraud intention of Alan is proved then Bernard is eligible to sue Alan at the court on the deceiving grounds. Moreover, the chances of favorable judgment are very less since the contract information does not contain any loopholes. Legal position of Charleen Introduction: The case covers the contract with minor for the sale of textbook which does not legally enforceable as per the Minors Contract Act. Issues: Whether Charleen is eligible to enforce legal claim against Alan for the contract on textbook as per the rules of Commercial Law. In the given case contract formed between Charleen and Alan on 7 November 2014 for the purpose of purchase of books against the cash payments as per the contract terms. However, Charleen was considered to be a minor since she stated to be a student of GCE at O level. Rules: According to the Contract Law rules and Common Law provisions for Minor Contract Act, contract with minors are not enforceable if it is made for the benefit of contractual party. It has been stated that the contract with minors are separately governed in consideration with the contracting elements. As per section 2, under Minors Contract Act contract for transactions on acquisition of land or shares are binding on minors while contract on other matters are not legally enforceable on the minors (Ferradi et al., 2016). Application: In he given situation Alan entered in a contract with Charleen, minor party to sell the Commercial Law textbooks on payment of $200. Since the contract is not for acquiring the shares or land, the contract for sale of textbooks is not legally binding on Charleen. In view of the regulations of section 2, if the contract with minors is covered by a guarantee then also the same will not be enforceable on the minor party. Moreover, the contract bind the guarantors if the legal matters are just and equitable to do so (Deutsch, 2015). As the contract does not involve any guarantor and the matter is on sale of textbooks therefore, Charleen does not form any legal position in the contract. Conclusion: As the accepting party in the contract is minor for the sale of Commercial Law book for $200, the contract cannot be said to have formed in legal manner. Further, there was no guarantor involved in the contract hence it was not bounded on Charleen. Legal position of Damien Introduction: The situation involves contract between Alan and Damien for the sale of textbook. Further, the accepting party discovered the availability of book at free of charge from the education centre disclosure of which was not Alans responsibility. Issue: Whether Damien is entitled to claim the legal position against Alan for the damages on the contract of sale of textbook. The parties entered the contract on 4 November against the payment to be made in cash for the purchase of textbook and class note. Damien suffered the damage from the contract after he discovered the availability of the textbook for free of cost at the education centre on 23 November 2014. Rule: Contract Act rules under Business and Commercial Law states the responsibility of seller to disclose all the relevant facts on the contracting subject. In case the contract found to be created with the intention to deceive the party by stating misleading information, then the same would be considered as breach of contract and the offeror will be liable to pay for the damages. Moreover, the aggrieved party is required to prove the intentional fraud contained in the contract on part of the offering party (Howard, 2015). Application: In the contract, Damien entered into a contract with Alan for the purchase of Commercial Law textbook and class noted for $200. Later, Damien discovered the availability of textbook free of cost at the education centre after its acquisition from Alan. It can be contended that Alans intention was to deceive the parties for the sale of book at higher price even when the same was available for free at the centre. However, Alan was not responsible to provide the information of free availability of book from other sources as a result, Damien would not be eligible to sue Alan. Conclusion: It can be concluded that Damien has less possibility to receive the favorable decision against Alan at the court. As the contract not contained any fraud information, hence claim for damages cannot be made. Alternative dispute resolutions Alternative Dispute Resolution is a process that helps in resolving the friction between the contracting parties in accordance with the rules of Contract Law. Several types of alternate resolutions are available to resolve the disputes or conflicts between the parties, which include arbitration, mediation and neutral evaluation. Arbitration is a procedure, which requires the parties to appoint the respective lawyers to solve the conflict in the presence of arbitrator. Arbitrator is considered to be neutral party who consider the case for the benefit of both the disputing parties by applying the regulations to form a fair decision (Zhuang Chen, 2015). However, arbitration contains a disadvantage for not accepting the decision as the process is conducted by following the arguments of respective lawyers. Mediation, on the other hand is a process where an individual is appointed being neutral to the conflicting parties. The mediator is required to negotiate and resolve the conflict by a pplying favorable means for the parties, which measures the solution to influence the decision of both the parties (Menkel-Meadow, 2015). On the contrary, the significant disadvantage of the mediation is diversion opinion after the application of mediator decision. Neutral evaluation is process considered by the third party authorized to settle the dispute case and the parties are required to attend the trial session by evaluating the required evidences and regulations. One of the primary disadvantages of the neutral evaluation resolution is non- maintenance of privacy and safeguards to the contracting party relationships (Lande Benner, 2016). 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