StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Business and Corporate Law - Essay Example

Cite this document
Summary
This paper 'Business and Corporate Law' tells us that The case at hand is between two parties, namely, the Blundell sisters herein referred to as the “promise” and Amy, a well-known Australian country music promoter herein referred to as “promisor”.  The two parties executed a valid contract…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER98.5% of users find it useful
Business and Corporate Law
Read Text Preview

Extract of sample "Business and Corporate Law"

? Business and Corporate Law   Legal Question 596 words   I. Facts and Issues of the Case The case at hand is between two parties, namely, the Blundell sisters, herein referred to as the “promisee” and Amy, a well-known Australian country music promoter, herein referred to as “promisor”. The two parties executed a valid contract between themselves, particularly a formal Consulting Agreement for three years with validity starting 2 January 2011 to 31 December 2013. The salient provisions of the contract are as follows: (a) for Amy to arrange three (3) TV show appearances and five (5) radio interviews for the Blundell sisters, (b) to book the two sisters to Totti’s, Brisbane’s most exclusive salon, (c) to secure them a national record deal by 2012 and (d) to hold a Nashville tour by 2013. The aforementioned details should be fulfilled during the first 6 weeks of the contract, as stipulated in it. It is noteworthy that prior to the execution of the contract, Amy advised the Blundell sisters that she had entered into a lot of contracts in the music industry and that she has the capacity to “really make them known in Queensland, Australia and the world”. However, the contract is already on its seventh (7th) week but none of the provisions in the contract has been accomplished. Worse, Amy has a falling out with the head of Australia’s biggest country record label rendering it unlikely for the sisters to secure an album as scheduled in their contract. It is therefore the Blundell sisters’ problem what to do with the contract they have with Amy knowing that she failed to fulfill its provision and is seemingly impossible to ever accomplish all the other salient portions of it. The termination of the contract is the most likely solution to this problem. In view of the aforementioned facts, the main legal issues for the Blundell sisters would be first, to move for the voiding of the contract with Amy based on misrepresentation or to move for the contract’s termination due to breach of contract. II. The Law Applicable to the Issue at Hand Given the fact that the issue at hand revolves around a contract, the law concerned would be the Australian Contract Law. Under this law, a contract is defined as an agreement between two (2) or more individuals which is intended to become binding and enforceable by law. Under a contract, the parties involve would be consist of a promisor, who makes a promise, and a promisee, who is the recipient of the promise.1 Case at hand is a type of formal contract. The main elements in any binding contract would the intention to go into a binding legal relation by the parties involved, the agreement or the offer and its acceptance, the contract’s consideration, which is a promise or an act by a party in exchange for the other party’s act or promise, and finally, a genuine consent by the parties involved. When these elements are proven to exist, it can therefore be declared that the contract is binding. There are many ways to void a contract, e.g., mistakes, duress, unconscionability, undue influence, etc. This paper will however focus only on the pertinent legal actions possible for the aggrieved party to terminate and void the contract from the promisor. The Contract Law provides for the voiding of a contract by reason of misrepresentation. A misrepresentation is made if there are statements made before the execution of the contract that led to its formation. The representation made by one party is done to induce the other party to agree to enter into contract, thus making it a false representation. Misrepresentations can become cause for action leading to breach of contract or misleading conduct among others. There are three categories of misrepresentation two of the applicable ones are the fraudulent and the negligent misrepresentation. The former refers to the maker of the statement who purposefully or recklessly made an untrue statement that resulted into the execution of the contract. The latter is based on the statement-maker’s careless wrong representation. If proven, the contract can be voided. Another provision of the Australian Contract Law that is relevant to this case is the discharging or termination of contract. This law provides six (6) ways by which to terminate a contract, i.e., by performance, via the terms of contract, through the agreement, via the operation of law, due to frustration and because of breach of contract. This paper will focus only on the last one, discharge by breach. A discharge or termination of a contract can be done when one of the parties is unable to deliver or perform his duties as stipulated in the contract. Given such situation, the aggrieved or the innocent party can terminate the existing contract and even file for damages or such other remedies the courts may find necessary. In terms of remedies, liquidated claims and damages are the most basic for cases of breach. These damages for breach are taken to be performance’s “substitute. It is created to make plaintiff be in a position where he should have been should the stipulations of the contract been accomplished correctly. Losses claimed should however be too remote and the innocent party should also be reasonable with his damage claims. III. Application of the Law to the Issue In applying the Australian Contract Law to the issue and establish that there is indeed a binding contract between the Blundell sisters and Amy, it is necessary for the former to show the elements mentioned above, namely, a complete and certain agreement, the intention to create legal relations2 and the consideration. There is a clear business context for the fulfillment of certain actions between the two parties, therefore, an intention to be bound legally is presumed.3 In the facts presented, nothing indicated a rebuttal for said presumption,4 and an analysis of the information clearly shows that the parties are intending on executing a binding contract.5 In fact, the information supplied simply says that a binding contract has been executed by the two parties thereby implying that all the above requirements are met. Consideration is defined as the “price” by which Amy’s “promise” is purchased by the.6 In this case, the price to be paid by the sisters is implied to be a sum of money for the services they expect Amy to deliver for them. It is assumed given the statement establishing the existence of an executed binding contract. Therefore, the consideration is executor whereby the Blundell sister’s promise to compensate Amy is the consideration for Amy’s promise to do the abovementioned services to the sisters. Therefore, the necessary elements are proved. These elements are thereby proved. Due to the inability of Amy to deliver what was promised in the contract, the sisters are now in the position to either void or terminate the contract and even sue for damages or other remedies. Limited with the given facts, it is apparent that there is a possibility of misrepresentation on the part of Amy when she declared that she can make the Blundell sisters known in Queensland and the world. It is a misrepresentation if she said this before she had an altercation with the head of the biggest country record label in Australia. Such information should not be hidden from the sisters since it is quite detrimental to their goal in taking Amy as their promoter. However, if the falling out with said head happened after the execution of the contract, then Amy did not misrepresent herself in her declaration. However, the sisters may still move for the termination or discharge of the contract due to breach. As defined, it is the failure of one party to deliver as promised given a certain period of time. In the case of this contract, it is quite clear that Amy failed to fulfill the stipulations in the contract wherein she is supposed to deliver some services for the Blundells. As such, the sisters are given the right to terminate the contract with Amy. In this case, it can be said that the breach is sufficiently serious since all the provisions indicated therein are not met. These provisions are detrimental to the sisters and are in fact the very reason why the contract exists. Failure to deliver said provisions would mean failure to the Blundell sisters to achieve their career goals. As provided by law, the sisters may sue Amy for damages or remedies. They can either sue her for the cost of actual damage she made, which may be decided by the courts or find remedies that would force Amy to find a way to still make good on her promises in the contract. IV. Conclusion In a nutshell, the case at hand involves basically a misrepresentation or a breach of a duly executed binding contract. The promisee (Blundells) is the innocent party and the promisor (Amy) failed to deliver her part of the bargain making it possible for the former to either void or terminate the contract between them and even file for damages or remedies. References Atkin LJ in Rose & Frank Co v JR Crompton & Bros Ltd [1923] 2 KB 261 at 293. Australian Contract Law Dunlop Pneumatic Tyre Co Ltd v Selfridge & Co Ltd (1915) AC 847 at 885; endorsed as ‘quid pro quo’ in Australian Woollen Mill Pty Ltd v The Commonwealth (1953) 92 CLR 424 at 456-457. Edwards v Skyways (1964) 1 WLR 349. Ermogenous v Greek Orthodox Community of SA Inc (2002) 209 CLR 95 at CLR 105-106. Rose and Frank Co v J R Crompton and Brothers Ltd (1925) AC 445. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Legal problem question Essay Example | Topics and Well Written Essays - 1500 words”, n.d.)
Retrieved from https://studentshare.org/environmental-studies/1413008-legal-problem-question
(Legal Problem Question Essay Example | Topics and Well Written Essays - 1500 Words)
https://studentshare.org/environmental-studies/1413008-legal-problem-question.
“Legal Problem Question Essay Example | Topics and Well Written Essays - 1500 Words”, n.d. https://studentshare.org/environmental-studies/1413008-legal-problem-question.
  • Cited: 0 times

CHECK THESE SAMPLES OF Business and Corporate Law

Corp Law Assignment. Directors Duties / Remedies / Removal of Board

Corp law Assignment.... Directors Duties / Remedies / Removal of Board Name Professor Institution Course Date Question 1: Facts/Issues: Nifty is suing Dodgy for breaching his common law duty of care, skill and diligence in failing to rent the cheaper premises.... law: s180(1) of the Corporations Act 2001 (Cth) – Care and diligence – directors and other officers; ASIC v Rich – non-executive directors in breach of their duty of care, skill and diligence....
4 Pages (1000 words) Essay

How the Law of England and Wales Is Made

The paper "How the law of England and Wales Is Made" focuses on the formation of law in England and Wales, and the evaluation and incorporation of any company with respect to these countries.... hellip; Generally speaking, through the study, the formation of the law in the two countries within the UK has been reflected and the process of incorporation of companies has also been reflected.... The present study focuses on how the law of England and Wales is made and how a company is incorporated with a study on the evaluations of the incorporation of companies....
6 Pages (1500 words) Term Paper

Business and Corporate Law: St. Ronan's Ales Limited

The author analyzes the business law issues of St.... The duties covered under these sections are made to replace the common law rules and equitable principles on which the duties of directors are based earlier.... Section 170 also provides that these general duties "shall be interpreted and applied in the same way as common law rules or equitable principles, and regard shall be had to the corresponding common law rules and equitable principles in interpreting and applying the general duties"....
6 Pages (1500 words) Essay

Speedway Airways Pty Ltd

In the paper “Speedway Airways Pty Ltd” the author focuses on an airline carrier.... In the present economic climate, its sales have fallen, in an attempt to boost sales it advertises a promotion in different forms of media.... Speedway Airways Pty.... is a limited organization.... hellip; The author states that Speedway's promotion entailed bonus air miles being attached to being collected through domestic bookings....
8 Pages (2000 words) Case Study

Corporate Governance Rules albazie law business

n both cases a corporate is required by law to have a memorandum of association and articles number Prof 11 March, Comparison between corporate governance in the US and Kuwait Corporate governance is defined as a set of rules established by corporates to facilitate accountability, transparency and control framework into the corporate affairs.... imilarities: In both cases a corporate is required by law to have a memorandum of association and articles of association to govern the interactions of the corporate with its shareholders and its own internal affairs respectively....
1 Pages (250 words) Admission/Application Essay

Business and Corporate Law: St. Ronans Ales Ltd

"Business and Corporate Law: St.... It is a firmly established tenet of company law that directors in the course of exercising their duties are held to a specific standard.... The standard is compared to the care and conduct that would generally be anticipated of a business man with the relevant skills and training.... Taking this approach, it is inconceivable that a business man running a business with a 1 million pound turnover and net assets of 100,000 pounds would borrow money against the entire net worth of the business....
7 Pages (1750 words) Case Study

A Misrepresentation or a Breach of a Duly Executed Binding Contract

nbsp;… The Contract law provides for the voiding of a contract by reason of misrepresentation.... iven the fact that the issue at hand revolves around a contract, the law concerned would be the Australian Contract law.... Under this law, a contract is defined as an agreement between two (2) or more individuals which is intended to become binding and enforceable by law....
6 Pages (1500 words) Case Study

Business Law in the US

It also formulates the rules, regulations, rights and privileges governing the formation of a business and its further operation.... It also formulates the rules, regulations, rights and privileges governing the formation of a business and its further operation.... uestion 1Rules of Contract in Business Contracts in commercial engagements are a part of business law used on daily basis to guarantee the legality of dealings.... Debts may be recovered back through debt recovery law, which is a way of protection to any innocent persons trying to recover back any form of financial- related asset that are subjected to the individual, therefore their own rights....
5 Pages (1250 words) Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us