Commercial Law.pdf - A contract is something that is agreed upon by two parties and legally binds the parties to adhere to terms of the agreement For a

Commercial Law.pdf - A contract is something that is agreed...

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A contract is something that is agreed upon by two parties and legally binds the parties to adhere to terms of the agreement. For a valid contract to be formed, none of the representatives of the parties involved can be a minor. Agreement, Consideration, Intention in creating legal relations and Legal capacity to enter into a contract are the 4 essential elements that constitute a contract which required for the contract to be legally enforceable. The terms of the agreement must be agreed upon and compiled by both parties. In the case of exceptional terms, they must be clearly communicated to the other party and to be agreed upon. A breach of contract occurs if either party violates any agreement made in the contract that was being formed. In legal terms, an offer is made only when the intention of the party making a clear commercial announcement and acceptable without further negotiations. However, if there is the intention to further negotiate with the parties involved, it is merely an invitation to treat. This legal proposition was initiated and recognised by the instance of Preston Corporation Sdn Bhd v Edward Leong (1982) when the parties express their keen to enter a legal contract, an offer will be formed. The constructed offer must be apparent and capable of being comprehended without further negotiation. Once the offeree has agreed to the offer proposed by the offeror, the contract will be bound both parties. In the circumstance of Alan posted on his Facebook wall, regarding his decision on selling his Commercial Law textbook and notes written in class for $200 and further affirmed that payment must be issued by 5th November 2015. In accordance with this legal principle of binding contract and put in an application. Alan has visibly shown his clear intention of exchange his study materials with $200 without further negotiation, its accounted as an offer. Consequently, in the event of any individual whom except the offer and notified him, and also issues the payment before 5th November 2015 of $200, Alan would be bound in the legal contract as offeror. The difficulties in this instance are to modulate whether there was a contract that has been made between Alan and his friend, Bernard, Alan and his younger sister, Charleen, and Alan and Damien, a friend of Bernard.
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Bernard v Alan On the 2nd of November 2015, Bernard came across Alan’s post on his Facebook wall, where Alan publicised that he was putting his textbook on sale, titled “Introduction to Business Law in Singapore”, together with lecture notes that he was written in class. Moreover, Alan claimed that a High Distinction grade was rewarded him on the module. Bernard then proceeded to reply to Alan’s post on his Facebook wall, asking if Alan will except $150 for the study material. On 3rd November 2015, Alan wrote back to Bernard saying that he declined the offer of $150, as he decided to adhere to $200. In addition, Alan appended that in fact, an offer was already made. After consideration, Bernard determined to meet the asking price of $200. Despite that, Bernard would not be able to
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  • Fall '17
  • Mr. Lawrance Ong
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