Discuss about the Business and Corporations Law for Companies Business Law.
Consider the following situations and indicate whether consideration is present and Whether Jack has an enforceable agreement:
a) Jane is going overseas and she offers to give her Lotus Super 7 sports car to Jack. The market value for this type of vehicle in good condition is around $25 000. Jack accepts. (2.5 MARKS)
The agreement between Jack and Jane is not legal. They have not signed any agreement that can be recognized by the law. Therefore the consideration is not present is not enforcement agreement (Datt, 2015, p. 10). According to the business laws, the parties had to identify value of the commodity and sign some contract pertain the contract. According to the laws of business, the relationship between the parties does not affect the terms and condition of the transactions. The owner of the car has not considered the value of the car before giving out. It has to be known if the car was in good terms or it was in a mess. The owner of the car had to consider the relations (Clark, Stuyck & Terryn, 2015, p. 18). According to this agreement, the parties could have made some oral contracts that they might have passed on their own.
This agreement did not come into conclusion nor was there any note written, as a proper or legal contract. It was only a confident appearance and evidence of the tenacity and purpose of the two parties apprehensive in which each parties is depicted to morally pledge themselves by the crammed self-confidence, founded upon previous commerce with every one of them (Datt, 2015, p. 11) would accept through it. It is important to note that the agreement between the parties is founded on the usefulness of the bond that could held them together, the parties have to trust each of the parties honor the promise. It is important to consider the terms of the contract and this can be determined through the value of the commodity (Clark, Stuyck & Terryn, 2015, p. 20). From the understanding of the scenario, it can concluded that the owner of the car could have decided so because the car was a liability and preferred that it could be better to give to someone to manage it to prevent some deft cases (Lowry & Dignam, 2006, p. 21). It was a mutual agreement that the parties made and the most important thing was that Jack agreed to have the car with him as requested by the owner. Both parties are depicted to benefit from the practice and therefore it is based on the competency of the parties to have the capacity to obliquely adhere to the set agreements.
The form of agreement between Jane and Jack is considered lawful if the parties could have signed some legal agreements based on the law (Kobel, KeÌˆLlezi & Kilpatrick, 2015, p. 8). In this case, if the parties did not sign some agreements in form of an official document, then the agreement was based on the oral terms, which must have some supportive evidence. In case where there would be a disagreement, the parties need to provide an agreed document or evidence to indicate their terms and condition to be used as a judgment base to the solution (Datt, 2015, p. 28).
It can be noted that the parties could have agreed to act independently though their own agreements.
b) Jane offers to sell Jack her Lotus Super 7 sports car for $25 000. The market
Value for this type of vehicle in good condition is around $25 000. Jack
Accepts. (2.5 MARKS)
According to the information, the parties might have agreed in their own terms to transact though their own mean. According to the business laws, the value of the materials or goods often depreciate but here the value of the car is at the original value (Gamertsfelder, 2015, p. 33). This shows that Jack was purchasing the car at a loss. The case is beyond reasonable ground that the car was sold at a price that it was not meant to be sold at. The parties in this case must have had their own terms and conditions pertaining the value of the goods (Poston, Ennings & Zeno, 2015, p. 34). It is expected that because the car is not a new one, the price of the car was half the original price (Clark, Stuyck & Terryn, 2015, p. 28). There was no official document to show the transactions between the two parties. It can be concluded that the car must have been bought under their terms and conditions. The car is assumed to be bought under the former terms of relations before this transaction, but that is not even reasonable enough because basing on the knowledge of business and its laws, the car value must depreciate on the basis of it being a second and good.
Motors are often liabilities and even one buys them, the expected value that was bought at, must reduce (Kobel, KeÌˆLlezi & Kilpatrick, 2015, p. 32). Nevertheless, if one wants to buy a car or any other good, the person must consult to get the right information concerning the values of the prices, it can therefore be concluded that Jack did not perform some research concerning the price of Jane’s car. It is therefore considered to his fault because it is expected that he knew the right price of the car when it was bought.
As if that was not enough, the owner of the car needed to be considerate because according to the laws of business, there is need to have the faith or trustworthiness during the transactions and sell their goods at the market price unless if the transactions are based on the earlier business terms (Poston, Ennings & Zeno, 2015, p. 22). It is based on the market price that one needs to buy or sell something; however, some individuals who are not willing to follow the laws of business often want to steal from the customers. It is also acceptable if the client in this case who is Jack accepted the price and bought it at that. That is also based on the agreement terms (Gamertsfelder, 2015, p. 10). This is a wrong impression of how many business individuals wants to benefit from the clients through the sales that they make. It is recommended that if Jack does not agree with the terms and conditions of the agreement, and has the legal transactions, can still claim his money through taking Jane to court. It is not a must that one has to understand the business knowledge but that one tries to work and find more on the application part of the business information.
According to the law, it is expected that one needs to understand the terms and conditions of the transaction before engaging in the transactions. In making the business transactions, it is important that both parties agree at a certain price and have a better price that is reasonable to the market price. This case shows how people make wrong transaction in the business without involving the business laws and regulations.
c) Jane offers to sell Jack her Lotus Super 7 sports car for $2500. The market
Value for this type of vehicle in good condition is around $25 000. Jack
Accepts. (5 MARKS)
There is no enforceable agreement between the parties. In this case, Jane has gone at a loss for selling the car at a very cheap price (Kobel, KeÌˆLlezi & Kilpatrick 2015). The value of the car is calculated based on the buying price and the duration that have passed since the good was bought. It is not reasonable enough to sell the car at such a very low price. It is important also to consider the value of the market price of the same car in the same condition. Transactions are making to be binding agreement that both the parties are able to agree at.
In this case, Jane must have no knowledge of the business laws and therefore her mistake not to apply the laws costs her through the wrong pricing price of her car (Hannigan, 2009, p. 10). According to the business, laws the practice have to be formal and no other relational basis need to be involved. It is recommended that if Jane does not agree with the terms and conditions of the agreement, and has the legal transactions, can still claim more money through taking Jack to court. It is not therefore, a must that one necessities to comprehend the business information but it is significant that one attempts to follow the right laws and regulations.
It is according to the laws of business that one must agree to indulge in the transactions in accordance with set laws and per prices set on the commodity (Nagel, 2000, p. 18). It is important that one have to research and find out ion the prices of things before finally purchasing the goods. The value of business laws and information is therefore shown to be important in controlling the prices of the commodities. A mutual transaction has to be made between the seller and the buyer to ensure that both benefit from the process of transactions. In this case the parties had no knowledge of business thus they indulged in the wrong form of transaction where there must have lacked a mutual understanding between the parties (Charlesworth, Morse, Marshall & Morris, 1987, p. 23).
Therefore, it was not a mutual contract that the parties made and the most important thing was that Jane agreed sell the car as requested by the client. One party is not depicted to benefit from the practice and therefore it is not based on the competency of the parties to have the capacity to obliquely adhere to the set agreements. Considerately, the state to of the care must also have contributed to the price level (Schulze, 2011, p. 45). It is not reasonable for Jack to buy the car at such a price if the liability would not be of help to him. Situation in the business law can force one to buy something or sell at a certain price to accomplish some other needs (Emerson, R. and Hardwicke, 1997, p. 67). It is advisable that one becomes considerate and during the selling and the purchase of goods to avoid wrong transactions.
Entirely, the basis of all the transaction is the business knowledge and one has to at least understand the forms of truncations or research about the market forces and perform transaction in the right way. Business individuals need to maintain the utmost good faith during the transaction and ensure that their actions reflect the laws of the business terms (Emerson, 2004, p. 18).
A shipbuilder had contracted to build a tanker for North Ocean Tankers. The
Contract was in US dollars and didn’t contain any provisions for currency fluctuations. Approximately halfway through construction of the ship, the United States devalued its currency by 10 per cent. As the shipbuilder stood to make a loss on the contract, it demanded that an extra US$3 million be paid or it would stop work. The buyer reluctantly agreed under protest to pay, as he already had a charter for the tanker and it was essential that it be delivered on time. The buyer didn’t commence action to recover the excess payment until some nine months after delivery. Will the buyer succeed in recovering the excess?
The buyer will succeed to recover the extra although the time for the recovery had passed. The buyer is allowed to perform the follow up at any time even after the delivery and claim the money back (Harris, Hargovan & Adams, 2015, p. 32). The use of business information in the marketing and selling of the goods is important because it states that the use of the legal agreements in the businesses is helpful in such cases where some disagreements have been raised. It is important that the buyer must note the value of the legal transactions made.
The legal documents are vital in making such claims because the evidence of the case is carried on the materials. It also must be considered that the buyer has to know that the time for the claim had passed and should also be fined for the late claim but be granted the justice. The condition under the period of delivery and the time of the claim must be noted before the solution is found. It must be known if the buyer was aware or not may be the buyer must have been under critical moment that obstructed him to perform the claim (Schulze, 2011, p. 21).
Application And Conclusion
The evidences to support the clam must be stated clearly in the case to provide the required information to make sound ruling. Since the buyer bought the goods at a protest, there is the legal provision that the money can be claimed back. Time of the agreement also need to be considered in the process of making such claims (Institute On Corporate & Securities Law In Hong Kong, Grandolfo, Park, Revell & Greene, 2015, p. 32).
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