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Contracts Under Common Law: Case Study (Essay Sample)


Each question in essay cites appropriate cases, all of which are from the First principles of business law textbooks or lectures. Please refer to attachment.


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1 Is there a binding agreement between Simon and Julie, for the job in February? (4 marks)
No. The agreement between Simon and Julie is not binding. First, Julie’s offer is open until the end of the week. The agreement can only be binding only when Julie has received a confirmation from Simon about the work. Up until then, Julie is not bound to have contract with Simon. Thus, when Julie will receive the communication from Simon and agree to it is the time they will have a binding agreement. At the moment, Simon has acted within the conditions offered by Julie but since the contract is binding at the point of acceptance, we cannot prove beyond reasonable doubt that Julie will receive the communication in time and agree to it. She may receive it on Monday and that would already have voided the condition for acceptance. The agreement is binding upon communication reverting to the offeror showing acceptance. It is important that the communication is duly received by the offeror which in this case cannot be proved. In the case between Brinkibon Ltd v Stahag Stahl und Stahlwarenhandelsgesellschaft mbH, Lord Wilberforce observed that “it appears logical that this should be at the place where acceptance is communicated to the offeror” Thus, Julie’s offer was binding when she verbally communicated her conditions. In the age of technology, the channel used by Simon to communicate his acceptance matters. At the time of communicating of Julie receiving the acceptance, it will be deemed that she is bound by the agreement and he accepted the offer she made.[Brinkibon Ltd v Stahag Stahl, 2 AC 34 (1983).]
2 Is there a binding agreement between Peter and Julie, for the local fundraiser job?
Julie is liable for breaching a contract which she entered verbally with Peter. One fact of the case is that she said she is ‘willing’ to help. Secondly, she went ahead and accepted the offer that Peter made. Peter claimed that they did not have much to offer for Julie’s company services to which she replied ‘that’s fine.’ In the case peter (the offeror) made an offer to Julie (the offeree) to which she willingly agreed to. Julie’s confirmation may have prompted Peter to stop searching for a traffic management company as his offer to round-the-bend was accepted. Thus, he has sufficient grounds to sue Julie and or her company for damages. Julies action, therefore, amount to an anticipatory breach of contract. If Julie follows through with her decision to pull out from participation in the easter eggs hunt with Peter. This decision is in line with Hochster v De la Tour[1853] which the court found that “from the day of the hiring till the day when the employment was to begin, they were engaged to each other; and it seems to be a breach of an implied contract if either of them renounces the engagement.” Thus, if Julie renounces her commitment in the agreement, Peter can sue her for breach of contract.[Hochster v De La Tour, 2 E &a

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