Introduction
The meeting of minds on the conformity of the wills of the contracting parties as to the object and consideration creates the obligation which will be the binding force between the parties. As long as the contract gives rise to the obligation is valid and not contrary to law, public morals, public policy, public order or good customs; the contracting parties are legally bond to comply with their respective obligations in good faith.
Contracts are meant not only to the business but it is the most popular example where the power of a contract can be expressed. A contract can be presented in the form of written or oral agreement but the most highly valued is in the written form. But there are many things to be consider before making a contract and what are the rights of the contracting parties if and only if, the responsibilities are not performed well.
Understanding Common Law
The law of Australia can be just as confusing as any other legal system in the world. It is split into federal laws, Australian common law, and state laws. The Australian common law is actually based very closely on English common law as a result of most of the settlers originally coming from England.
Common law, also known as case law, consists of law formed through court decisions. Things like services or land sales are covered by common law. It also includes any goods that is tangible that a person can buy and sell. A land or building is considered a good because it's not often that during a purchase, the land or building is actually physically moved someplace else.
The Contract Law
A formation of a contract needs the essential elements and any absence of these elements will signify either that there is in law no agreement or that the agreement is not enforceable as a contract.
1. Agreement – the agreement between the contracting parties is analyzed through the rules of offer and acceptance which makes it as the binding force.
2. Consideration – it is which a promise will be enforceable at common law only if it is supported by consideration or made under seal. It comes with the mutuality that generally arrives through the form of money, property, or services.
3. Intention – this manifests the legal relations or its relativity. Both parties should enter the intention requirements.
4. Certainty – the contract requires to be done, or restricts from being done. The agreement must be sufficiently certain to complete the tasks, rights, or obligations.
Termination of a Contract
There are instances that a contract can be terminated and arise in different situations.
1. Revocation - is when the person that's made an offer decides he wants to take it back. He can revoke the offer as long as there has not yet been an acceptance.
2. Rejection - is when saying "No" to the offer. The offer then dies.
3. Counteroffer - is when the offeree responds to the offer with an offer of her own. This has two effects: first, rejection of original offer (which terminates it) and second, the creation of a offer. In a way, the offeree and offeror have switched roles as a result of a counteroffer.
4. Lapse of time - If the offer states that it terminates at a specific date, and should an acceptance not be made by that time, then that offer is terminated.
5. Intervening illegality - This is when the subject matter of the offer becomes illegal after the offer is made but before it's accepted. This arises even in the loss of a subject matter.
6. Subsequent death or insanity of either party - Both parties to the proposed contract must be mentally competent.
The case law reflects the tension between, on the one hand, the desire to hold parties to their bargains in accordance with the principle pacta sunta servanda and, on the other hand, the courts' reluctance to make a bargain for the parties. Although there have been differences in Australian judicial opinion as to the role of the court in giving effect to a contract, in general the courts give primacy to the need to uphold agreements, particularly executed agreements and commercial arrangements.
A Common Law Case Study
In the situation presented as the case study for business contract law, the client named Paula can certainly achieve her rights. In a simple case like receiving a wrong order from the store, she can refuse to pay the certain amount of goods delivered and eventually cancel the contract and if there had been damage occurred; the complainant is entitled to receive the monetary equivalent.
Since the problem is from a tangible good that bears a profit at the end of every year but still not sufficient to fulfill the promised amount written in the contract, the complainant can still keep the business under her protection and make an appeal in the court and demand for the right. One of the essential parts of the contract has been neglected or overlook, therefore, the other party should amend the issue and fulfill the promised subject into any other form.
The complainant can also set aside the contract or unrecognizing the termination of it by taking considerations. The consideration aspect is in the form of accepting the business fruitful conditions. The collective party has the priority in terms of the court law.
The contracting party has a right to enjoy the following:
1. The right to use, profit from, and transfer land contracting and operation rights, and the right of autonomy over production operations and disposition of products;
2. When land is expropriated in accordance with law, to receive the related compensation as provided by law;
3. Other rights that are set forth in laws and administrative regulations.
Conclusion
It is important to know the individual rights, and the scope and limitation of every contract before signing for an agreement. The rights are applicable if the other contracting party is incapable of giving the sufficient cost or object about the subject matter. On the other hand, the other party may demand for the right that originally belongs to her/him.
As long as there is the existence of a court, and can be considered as the last resort, the appealing party or the contracting party will receive proper attention. For they are the priority of the law, and since the ensuing party neglects the power of the contract and did not heed to the obligations written in the contract, therefore, he/she can be considered as an irresponsible and face corrective actions under the supervision of the court.
Credit:ivythesis.typepad.com
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