Busines Law

In: Other Topics

Submitted By ajmaladiljamal
Words 559
Pages 3
Four Step Process
Step 1
The legal issue in this case us whether there was a breach of contract between both parties and the termination of the contract by the injured party.
Step 2
The terms of a contract describe the entire contents of a legally enforceable agreement. Terms define the rights and duties of the parties. When a person signs a document that they know contains contractual terms, they objectively appear to be agreeing to be bound by those terms and this is sufficient enough to bind them. The law only asks whether a reasonable person observing the situation would conclude that, in the circumstances, the person signing the document appeared to consent to the terms. This can be seen in the case between L’Estrange v F Graucob Ltd. In this case, both parties were bound by a contract that excludes any implied warranties or conditions from the agreement, where one party has to deliver a cigarette vending machine. Upon delivery, the machine proved to be unsatisfactory. The issue of the case is whether the receiving party was bound by the provision in the contract, even though she had not read the contract before signing it.
Even when a written contract initially appears complete, if what was agreed orally is of obvious importance in the type of transaction, the court may conclude that the oral undertaking was intended to be a term. This can be seen in the case of Van Der Esschert v Chappell. In this case, the buyer wanted assurance from the seller that the house was free of white ants. The seller gave assurance which led to a legally enforceable contract. Unfortunately, the house’s condition proved otherwise, The issue of the case is whether the buyer is entitled to lead evidence of an orally agreed term, that the house was free of white ants.

Step 3
According to the case, Peter has drawn up a written document, which both parties…...

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