Law for business assignment help-LETTER OF ADVICE
Mun and Siang met in a party, which was organized by a conservation society. They both discovered that they had a common affinity towards native animals and also was aware of that the government was issuing licenses to breed native animals such as native red tailed pipe snakes and the idea of the business was that the private breeders would supply them to the restaurant industry as a result of which the poachers shall no longer be interested in hunting them in the wild.
Mun has set forth a proposition that he shall provide for a private place to breed the red tailed piped snakes and Siang shall apply for license from the government for the said breeding program. Siang had paid $1000 for the license and the license clearly stipulates that Siang can breed the said native red tailed pipe snake in Mun’s farm.
Siang also purchased the snakes $100 a pair. When Mun tried to stroke one of the native snake, it attacked him and it nearly tore its fingers off.
Mun in utter shock and disgust now did not wish to breed any one of those vicious creatures on his farm and wanted to get rid of the said snakes and also mentions that he would not breed them for all the money in the world. He also goes on to say that there was nothing in writing and hence, there isn’t any proof that he had accepted her offer.
ISSUES/QUERIES
- What are the legal issues involved between Mun and Siang?
I am of the opinion that there is in fact a very valid and eminent legal issue between both the parties Mun and Siang. As we understand by the very definition of contract under the law is that, a contract shall some essential elements that shall constitute a valid contract.
These elements shall be that a contract shall essentially require for a promise or promises between the parties, the promises must be between parties have the legal capacity to enter into a contract, the above mentioned promises must create certain rights and obligations in a contract and finally these rights and obligations shall be enforceable by the law (Peden 2003).
Therefore, in view of the above stipulations of the law and the above circumstances, we shall safely conclude that both the parties in the above case have in fact constituted a valid verbal contract. Under a verbal contract or a simple contract under the law provides for a contract to be in both oral or written or partially oral or partially written.
In the above scenario we can safely justify that the license that was applied by Siang to perform the breeding of the said native red tailed pipe snake from the government shall be considered as sufficient proof that it is a form of partially written document of the verbal contract, evidencing that an agreement and/or valid contract between the parties.
The said government license also clearly stipulates that Siang had obtained permission for license to breed the said native red tailed piped snake in Mun’s farm with Mun’s consent. On the basis of the license Siang had purchases $100 a pair of the native red tailed pipe snake for breeding.
Siang’s invoices and receipts shall also be a part of the contract. On application to the government for license Siang has to provide with written documents which shall prove that Mun had consented to the breeding of the native creatures in his farm and the signature of both the parties must be present in the said document.
Upon satisfaction of the same the government shall sanction the license (Long v Miller (1879) 4 CPD 450) and (Tonitto v Bassal (1992) 28 NSWLR 564).
- What are the provisions of law that are involved in this case?
In the above scenario the Law of Contract shall apply. The parties both are residents of Singapore, the common law of contract shall be applicable irrespective of its jurisdiction. The common law of contract is applicable under any judicial system.
Under the common law of Contracts, a contract between the parties shall contain certain elements that are essential in constituting a valid contract. In order for both the parties to enter into a valid contract certain invariable elements must be fulfilled.
These elements are capacity, consent, offer and acceptance and consideration performance followed by consideration or vice versa under certain forms of contract. Irrespective of whether the contract is in the form of writing or oral or partly writing or partly oral.
Without these elements present a contract shall be termed invalid or the contract shall be render as void. Contract are categorized under two types firstly, simple contract and secondly, contracts under seal.
Under the contract act simple contract require minimum formalities and these form of contract may be written or may be verbal or oral. These forms of contract can be wholly or partially written or may be wholly or partially verbal or oral or may be implied by the actions of the parties to the contract.
In the present case the act of the party to enter into a private business with each other automatically creates a legal relationship of entering into a contract. The steps taken by Siang have in applying to the government for license and purchasing the snakes have proven that there is a binding legal relationship between the two parties in the contract.
It is pertinent to mention that a legal relationship need not be expressed in writing in a contract, the act of the parties in pursuance to the terms discussed in the contract shall be evidence to the legal relationship between the parties arising out of the said contract (Carlill v Carbolic Smoke Ball Co [1893] 1 QB 256 at 258; [1891-94] All ER).
Contracts are divided into two categories bilateral and unilateral contract. Bilateral contract generally occurs between two or more persons in the contract this sort of contract occur in the daily life for example in purchasing goods from the store. Unilateral contract shall mean in the case of business contracts whereby the actions of the parties shall constitute a terms and conditions of the contract.
In the above scenario is the perfect example of a unilateral contract.
ERRINGTON V ERRINGTON (1952)
FACTS
A father bought a house for his son and daughter-in-law and paid the deposits. Thereafter he informed the daughter that the daughter has to pay the mortgage installments for the said house, which was bought under the name of the father. Soon after the father died and the State is trying to remove them from the property.
ISSUE
Is the contract binding?
RULES AND APPLICATIONS
In a unilateral contract the said contract cannot be revoked and that the parties have already entered into the performance of the contract. However the contract shall cease to be binding if the party left incomplete. The couple thereby had never bound themselves to pay mortgage in the unilateral contract.
In the above scenario it is essential for the Siang to establish sufficient parol evidence in the said agreement between Mun and her to establish before the court the exact terms that was entered into the said agreement. In spite of the lack of written documentary evidence, it is thereafter important to establish the act of the part performance which existed in the contract between them, without this the said doctrine of performance shall not apply in the case (Thwaites v Ryan (1984) VR 65 at 77) and (Regent v Milett (1976) 199 CLR 679).
- Which particular facts in this case are pertinent to the laws of Contract?
In view of the above circumstance is the present scenario. There is in fact a valid contract executed between the parties Mun and Siang. Both the parties had mutually agreed to the proposition put forward by Mun. Mun had executed an offer of providing a place for breeding the said native red tailed piped snake and Siang consented to the said proposition and accepted the said offer.
They both agreed to a business whereby breeding the native red tailed pipe snake they would create profit in the business and that shall be divided between the parties. Thereafter Mun refuses to perform his share of the contract between them.
Though the terms and conditions of the said contract between them are said verbally, that shall not exclude them of the rights and obligations in the performance of the terms verbally agreed under the contract. Siang shall have the right under the common law of contract and under the Statutes of Fraud to claim damages and/or compensation for the loss caused to him by Mun.
MANCHESTER DIOCESAN COUNCIL FOR EDUCATION V
COMMERCIAL N GENERAL INVESTMENTS LTD (1970)
FACTS
The Manchester Diocesan Council had called for tender of the property and Commercial and General investments Ltd. had submitted the said tender. The tender specifically specified that the mode of acceptance of the tender shall be accepted by way of post. MD had decided to accept the said tender by C&G and send the acceptance to C&G’s solicitor.
ISSUES
Is this a valid contract? Was the mode of acceptance necessary to follow?
RULES AND APPLICATION
The court held that method of acceptance was nit mandatory to follow. The important point was that the offeror was made aware of the acceptance and that shall render the form of acceptance effective.
COMMENTS
Under the contract law it provides that a contract must have a valid offer and acceptance. In a valid form of contract a party must place an offer to induce or set a proposal to a contract and the other party shall accept the said offer, willingly (Brambles Holding Ltd. v Bathurst City Council (2001) 53 NSWLR 153 at 179).
It is not necessary that an offer under a contract is always have to be separately expressed or identifiable that clearly indicates that the parties are willing to deal. Some offers can also be implied by the action of the party (Clarke v Dunraven (1897) AC 59).
An offer shall not contain any formal language that should distinguishable (Fitzwood v Unique Goal (2001) 188 ALR 566 at 591) and the mode is also not prescribed under the law. Therefore we can safely conclude that an offer may be expressed or implied.
The contract law explicitly provides for a valid offer and acceptance. In a valid form of contract a party must place an offer to induce or set a proposal to a contract and the other party shall accept the said offer . The act of acceptance shall be in acceptance of the offer by the offeror (R v Clark) and (Williams v Carwardine).
In the above scenario Siang had accepted the offer given by Mun and the conditions of the contract was that they would profit from the said business and allow the business allow the profit to be divided between the parties. Even though in the present scenario there is no mention as to how the profit would be distributed between the parties.
In every form of contract there shall be consideration upon performance of the terms in the contract. The said contract between Mun and Siang implies that they have entered into a private contract whereby they would together help in the breeding of the said snakes and share the profit of the same.
Siang have undertaken the expenses of obtaining license and the purchase of the snake. He has duly fulfilled the obligations of the contract.
CONCLUSION
In conclusion I would like to mention that finality of a contract is an essential consideration of the contract. In view of the above circumstance the conduct of the party shall determine that the parties have indeed agreed to enter into a partnership.
Upon the actions, conducts and acts of the parties in the contract which shall evidence that the offeree has accepted the offer or the offeror and that the party has taken due steps to commence with the terms of the offer or the contract. It is important to mention that upon consideration of the acceptance by Mun, Siang have applied to the government for license for the breeding of he said native snakes which was an expresses term of the contract, however not written.
However this form of contract is a unilateral contract and the contract shall not be binding between the parties if the parties cease perform.
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