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Law of Contract

Names

Institution
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Law of Contract

Q1. A contract refers to an agreement amid two or more individuals or entities that result to a

detrimental loss to both parties in terms of considerations. Most business undertakings are form

from a mutual agreement of the parties of both parties contemplating to form a contract. For the

law of contract to be effective, it must have the following elements that include an offer, an

acceptance of the offer, deliberation, contractual capabilities, terms and conditions for the

performance, and performance of duties (Scott, 2013). It is also imperative to note that a contract

may either be unilateral or bilateral. A bilateral contract exist where one party promise is

compensated for a promise, for example, in the case of Lisa and Vicky, Lisa is making an offer

to buy 10 of the wave 500G jek-skis is contemplating to compensate Vicky that same amount

when she gets the goods that she offered to purchase from at Jet-skis at Blitz boats.

In addition, a contract may be written or unwritten. The law requires that all contract the

involved the sale goods must be put in writing but also consensus by the party members is also

bidding. Nonetheless, In case of any breach of contract by either party then the court may not

recognize the unwritten contract as valid and effective (Fassbender, 2016). The intention of Lisa

to make purchases of 10 of the wave 500G jek-skis from Vicky is not bidding in the court of law

since Vicky had not accepted the offer in the first place promising to reply back to Lisa a week

later. Even though she accepted to be bided by the new terms as communicated by Vicky during

the time they were chatting, it resulted to a counter offer hence making the original offer null and

void. In fact, the alteration of the terms and conditions repudiate the original contract and the

obligations that bounded the parties are discharge (Born, 2014). In lieu of the above statements,

it is evidently clear that there was no contract for sale of goods between Lisa and Vicky.
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Q2. Lisa should not pay any extra amount to Patrice. The elements that Patrice is adding to

the contract were not part of the initial contract that was entered and does not form any part of

the original contract. Essentially, this kind of terms that a party tries to bring into the contract

after the signing of the contract is null and void to the extent of the terms. Terms that form part

of the contract may either be implied or express (O'Sullivan & Hilliard, 2016). An implied terms

means that the activities of the offeror signify the acceptance of the contract for example a

person entering into a matatu simplify that they have accepted to paid the damages that will arise

due to the detrimental loss of the other party. On the other hand, express terms arise from the

statements made directly by the parties stating that they have mutually accepted to enter into a

contract. However, in any contract there should be a consideration that is attached to it.

All contracts must have a contract to be effective. Consideration is simply the something

which has worth in the judge of the law (Cartwright, 2016). The case of Lisa and Patrice has got

this element but it since that Patrice in contemplating to changing while the parties are still

executing of them. It is also importance to note that parties to the contracts have no choice of

repudiating the performance and either case, then, they should be prepared to suffer some losses

for failure to execute the contract (O'Sullivan & Hilliard, 2016). The court may order the parties

to the contact to do specific performance which means that the party is compelled to perform and

deliver on all terms of the contract as it was consented during its formation. The court also may

sanction the party to pay for the damages that have been suffered due to the repudiation of the

contract. This is only possible in the case where there have been no change of the conditions of

the terms of the contract which results to the changes in the general terms of the contract making

the contract null and void.

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Nevertheless, a contract may be terminated by the following circumstances which

includes; frustrations, breach of the contract, and operation of law (MacMillan, 2014). A contract

terminated by frustration is where the subject matter to the contract may have due to other

circumstances could have be frustrated for example the concert have been organize to take pace

in an given restaurant can be frustrated if the building that was set for the performance of the

concert is brought down maybe by fire just few time before the performance. Another example is

where an artist who is required to perform in an event becomes sick on the day of the event. On

these two scenarios results to the discharge of the contract due to frustration and therefore no

party will be liable to pay for the damages as the consequences for the frustration (Taylor v

Caldwell, 1863, 3 B& S 826). It is usually referred natural occurrence in the court of law.

Breach of contract emanates from alternation of the warranties which does not leads to

the termination of the contract but the court may offer an injunction for payment of damages to

the party that has suffered from the consequences of the breach of the contract (O'Sullivan &

Hilliard, 2016). The stature may however make certain laws that lead to some activities illegal

and hence continuing doing these activities negate the Act of law. Therefore all the contracts that

are affected should be brought to an end as soon as that law is sign. The contract is effective only

to the parties that mutual contributed in its formation. This is due to the fact Lisa repudiated the

contract immediately before Patrice suffer any losses. A contract that has been sign with all the

parties will be deemed to end in normal conditions after the parties have deliver the specific

performance they are obligated to perform (Cartwright, 2016).

Q3. Yes, Lisa should pay the participation fee since she took part in the event while assuming

that she had full knowledge on what the contract entails. Lisa is implying that she had read and

understood the terms and conditions of the contract before accepting to be bound by it
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(Fitzgeraid v Master, 1956, 95 CLR 420, textbook p. 365-60). As a professional member in both

national and international swimmer, Lisa did not bother to go into details thinking that she was

exempted from the payment of the fee that were charge to all participates in the events.

Kayaking event is an international event which involves participation of competitors

across various nations in the world. Several methods are considered in the eye of the law when

determining whether to charge or not the participation fee for members who have subscribed to

the company (Cartwright, 2016). The main factor that is greatly taken into consideration is the

types of membership for which members have been registered in, for example, having full

professional membership’s subscription. However, the effect of being a member does not

provides a guaranteed that the person will be exempted from the payment of the event’s fee. The

concept of implied terms in the law of contract clearly posit that activities of a person may

directly shows that he/she have accepted to be bound by the contract (MacMillan, 2014).

Additionally, once a party has entered into a contract then it must deliver all the obligations that

are making the contract valid otherwise it will be null and void in the eyes of law. Given this,

Liza in anyway have no excuse not to pay the participation fee because she has taken part in the

event hence bidding herself to the terms and conditions of the contract (Leng & Wei, 2017).

From the conversation that Lisa and Patrice made during a phone call, it is evidently that

Lisa is willing to pay more provided that goods that she wants from Vicky were delivered to her.

Nevertheless, there exists no contract since Vicky has changed the conditions of the offer having

perpetuated to increase the prices of the goods. Additionally, Lisa consented and accepted the

changed during their communication with Patrice over the phone call but later downturn offered.

It is however acceptable in the law to immediately decline the offer expressing to the offeror

communicating back through the same media that was used in creating the offer (Leng & Wei,
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2017). Notably, rescission through this means, the offeree must state the reasons for declining

the offer. In the conversation, Vicky is a third party in the contract has whatever she heard about

the dealings that Liza and Patrice were making should not in any case be worried unless Lisa

failed to fulfilled her obligation then she can make a complains on the performance.

The law requires that the parties who wants to make a contract should have a mutual

understanding on the responsibilities and obligations of each other before signing the terms and

conditions of the contract. Where a party is presumed that the other party to the party has

accepted the contract without the consent of that party then it does not results to any contract

therefore the court will nullify it (Cartwright, 2016). In this case study, there is no evident that

Lisa made a contract with Patrice. Nonetheless, Lisa made an intention to make a purchase from

Patrice of the wave of 500G jet-skis but immediately cancel the order. Lisa mere intention should

not be constructed to amount the obligation to enter into a contract with Patrice. Therefore,

Patrice has no right to be hungry with Lisa after seeing that she was contemplating to making a

contract with Vicky for the purchase of the similar goods. Giving a discount to a person do not

amount to accepting to enter into a contract has it is merely an inducement to make a party

accepts to sign a contract in order to get the financial benefits (Fried, 2015). In either case Vicky

can seek redress from the court to give an injunction to Lisa to deliver if she feels that she has

been portraits.
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REFERENCES

Born, G. B. (2014). The law governing international arbitration agreements: An international

perspective. SAcLJ, 26, 814.

Cartwright, J. (2016). Contract law: An introduction to the English law of contract for the civil

lawyer. Bloomsbury Publishing.

Fassbender, B. (2016). International Constitutional Law: Written or Unwritten?. Chinese Journal

of International Law, jmw032.

Fried, C. (2015). Contract as promise: A theory of contractual obligation. OUP Us.

Leng, J., & Wei, S. (2017). The Evolution of Contract Law in China: Convergence in Law But

Divergence in Enforcement?.

MacMillan, C. (2014). English Contract Law and the Great War: The Development of a Doctrine

of Frustration. Comparative Legal History, 2(2), 278-302.

O'Sullivan, J., & Hilliard, J. (2016). The law of contract. Oxford University Press.

Scott, R. E. (2013). Text versus Context: The Failure of the Unitary Law of Contract

Interpretation. Francis Buckley, The American Illness: Essays on the Rule of Law, 325-

326.
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