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LAW303 Law Of Business Organisations

tag 1 Download 12 Pages / 2,963 Words tag 12-07-2021

Question:

Ashley met Adam at a party and after a couple of drinks; Ashley found out that Adam is in the business of selling education products.

Compare and contrast the different liabilities in each of the following situation, where Ashley may become the buyer, Adam may become the seller and they are negotiating. They may or may not have an agreement and/or contract.

a. Both parties discussed their intentions and Ashley stated briefly what kind of products she would be interested in but they parted ways after that. Ashley said later that there was no contract between them. Discuss the issues involved.

b. While having drinks, as they were both in a good mood, they both agreed that they would like to enter into a contract for educational products. However, before they went into further details, Ashley started to flirt with Adam and their conversation diverted to other areas. Moreover, Ashley did say jokingly that because Adam is handsome, she would not mind buying anything that he has to offer. Adam was so distracted by Ashley’s flirting that he also did not state clearly what kind of products he offers and Ashley in turn did not state clearly, what she is looking for. Discuss the issues involved.

c. Ashley meets Adam the next day to discuss more of the details of the sale. They agreed to all terms clearly and Adam found out that Ashley is actually the owner of a major distributor of education products in her hometown. However, one week after they signed the contract, Adam found out that Ashley is a minor but Ashley kept reassuring him that she will be turning 21 (years old) in a week and she will honour her part of the contract. Discuss the issues arising from this situation.

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