Legal Analysis: Contract & ACL Claims - Formation, Misrepresentation, Consumer Protections, Essays (high school) of Economics

Download Legal Analysis: Contract & ACL Claims - Formation, Misrepresentation, Consumer Protections and more Essays (high school) Economics in PDF only on Docsity! Examples of some good applications for the Contract claims: Formation of contract (lack of sufficient consideration) The-legal issue is whether-the additional contract between Ryan and Nick is enforceable and whether Ryan could-sue Nick for-breach of contract when-not-paying-him $2000. Nick-offered Ryan that that he would hire more people to decorate Ryan’s house on time with an additional payment of $2000. Ryan accepted this offer and agreed to pay Nick $2000. However, the extra $2000 is in exchange for completing the work on time, which has already been mentioned as Nick’s obligation under the existing contract, thus constitutes an insufficient consideration. In other words, Nick just performed an existing contract obligation and is not entitled to the addition payment of $2000. Therefore, there is no-valid contract-between the two parties. Incorporation of outside statements Regarding whether Josh could sue Mike for breach of contract: Even though there was no breach of the written contract, the outside statement must be considered. The- outsidestatement was Mike’s agreement to provide food and-drinks for Josh parents’ party with no beef-based food. Mike’s statement could be incorporated into the contract as it was a promise that can be verified and was delivered to Josh with reasonable notice before the contract was formed. Next, Parol Evidence Rule-(PER)’s-exceptions-should be-examined. The first-exception was-satisfied because-this-statement-is-very-important, especially in relation to the health issues of the elderly, thus confirming-the enforceability of the verbal statement as a contract term. This term was breached as Mike prepared beef-based snacks. The-breached term is a-condition as it was extremely vital to the contract. Disclaimer The next issue is whether the disclaimer was effective. Firstly, the written contract had included the clause stating that Mike will not be responsible for food allergies caused by a reasonable substitution of an ingredient (L’Estrange v F Graucob Ltd). Thus, the disclaimer is a part of the contract. Secondly, it is not in the scope of the disclaimer since Mike accidentally included a small number of beef-based snacks in the food, which is not a reasonable substitution of an ingredient. Therefore, the disclaimer is ineffective against Mike. Misrepresentation Prior to forming the contract, Mike agreed with Josh’s requirements for the food preparation and promised to do it. However, Mike later didn’t commit to his promise, causing his making a false statement about a material fact regarding the food preparation. The promise was also addressed directly to Josh. Furthermore, the promise induces Josh to sign the contract with Mike. According to Derry v. Peek, there was a misrepresentation in the contract and Josh could sue Mike to negate the contract. Collateral contract Next, we need to consider whether there was a collateral contract between Mike and Josh, and whether Josh could sue Mike-under-breach-of-collateral-contract. Before contract formation, Mike promised-to send people to help-Josh with cleaning after the party. However, thispromise did-not-induce-Josh-to-the-main-contract-as-he already decided to enter-the-maincontract- before mentioning-this. Therefore, as-there was-no-collateral contract, Josh couldnot-sue-Mike under-breach-of-collateral-contract. Overall Comments: These are concise and clear analyses. The student adequately mentions and applies the relevant legal rules surrounding the legal issues, rendering complete analyses. The presentation is clear and easy to follow with the regular and proper use of transitions. Example of a non-qualified application for the Contract claim: Josh's contract at Mike's office contains a disclaimer clause possibly missed by Mike about a beef ingredient. The contract has presented that the other party cannot sue Mike if the consumer is allergic to the food she provided. Josh, in this situation, has signed a contract that he did not read carefully. Therefore, the signature of Josh has bound him to the contract that he is the disadvantaged side. Comment: No mark will be given to this improper analysis of disclaimer. The student jumped into the conclusion of an effective disclaimer without analysing any of its condition, including the disclaimer being a part of the contract and the breach falling in the scope of the disclaimer. The student's weak English expression needs to be improved as well. Examples of some good applications for the ACL claims: General protections Felix-is-a-consumer as-the-services-she acquired from Joey are less than $100,000 and the services are normally acquired for personal, household-use. Thus, she-is protected under s18 and s23 ACL. In-examining elements of s18, the first-two requirements are satisfied as Joey had a conduct in which-she made-a-promise-to not-include-pork in-the food, and the conduct took place in trade as Joey’s on-going business. Besides, Joey’s conduct was misleading anddeceptive-as-applying-the-Objective test, any reasonable person acquiring the services from Joey would believe-in her promise as a part of the negotiation. Accordingly, s18 was- invoked. Under-ACL s23, a-term of-a consumer contract will be-void-if-the term-is-unfair and the contract-is-a-standard-form contract. First, their contract-is-a-standard-form-contract, as it has not been negotiated by the parties but prepared and provided by Joey. Second, there are unfair