Business Law Questions
Question 2 Can Paul take any legal action against Derek? Did Derek breathe the contract made between him and Paul? A contract is agreement concerning promises made between two or more parties with the intention if creating certain legal right and obligation upon the parties to that agreement which shall be enforceable in court law. The Trade practices act 1974 (Cth) particularly s52 cover the contract law: seven elements to create a simple contract, which are listed as the following: * Intention * Agreement * Consideration * Capacity * Consent * Legality purpose * FormAcceptance can be accepted by the party to whom offer was made, and be strictly in accordance with the terms of the offer, it can only did by the offeree him self or his agent and Acceptance must be unconditional. In case of Paul and Derek most of the element is right Paul has the intention, capacity, legal purpose and consideration to buy the fabrics. The only problem is in agreement between both parties. Acceptance, if the for of communicating between parties is instantaneous the agreement is only concluded when the offeror receives the acceptance at time agreed in contract.Entores Ltd Vs Miles far east corps (1955) Gilbert J McCaul pty Ltd Vs Pitt club Ltd (1954) Derek sent the offer to buy some fabrics and expect the reply by express post next day that is a condition in the offer of Derek.
Paul received the offer and he accepts, but the acceptance needs to apply the condition which is express post or a faster way than express post (telephone). otherwise Derek who make the offer can not know whether they are bound in offer or not. Paul reply to Derek by a letter of acceptance using slower method of communication that affects the agreement which made no agreement and no contract.In conclusion Derek did not breach the contract made with Paul because simply the contract does not exist by law. Paul the offeree do not have the right to sue Derek or take any legal action against him because he did not accept the offer with all condition.