Business and Corporations Law : Trade Contracts

Describe about the Business and Corporations Law for Trade Contracts.

Introduction

In the sphere of business law and trade contracts, the very term of enforceable agreement denounces the criteria to establish an agreement in legal perspectives. The business laws and legislations of Australian government provide sustainable guidelines to conduct enforceable agreements. This assignment has evaluated the provided case studies in order to gain sustainable information about the factors that can provide and maintain the legitimacy of an agreement by fulfilling the legal criteria.

1. a) Issue- Jane has decided to sale her Lotus Super 7 sports car to Jack and the current market value of this car is $25000. The issues in this legal agreement are whether the contract between Jane and Jack has certain considerations and whether this agreement is an enforceable agreement or not.

Rules- According to Vagts et al. (2013, p. 95), the Consumer and Competition Act 2012 states the necessity of written or oral account of consideration to make an enforceable agreement. The “Mailbox Rule” does have a prolific role in enforceable agreement that deals with the acceptance of the buyer to make the agreement legitimate. Written contract under mutual adjustment and consent between the stakeholders is a pivotal aspect of enforceable agreement.

Application- Jack has agreed with the offer of Jane through some undefined transaction of money that ventilates the consideration aspect of this agreement. This agreement does not witness any negotiation as Jack has agreed upon the offer directly. This agreement has managed to sustain the legitimate offer and consideration part of an enforceable agreement in lawful manner. Both the stakeholders have provided concurrence to this deal of sports car as there is no trace of illegal activities in the agreement (Tolhurst, 2016, p. 22).

Conclusion- However, Jack has an enforceable agreement through perpetual existence of consideration and static consent to the provided offer by Jane.

b) Issue- Jane has made a contract with Jack to sale her Lotus Super 7 sports car in $25000, which is the accurate market price of the car in Australia. The issues of this contract are whether Jack and Jane have made an enforceable agreement under the business laws of Australia with specific considerations.

Rules- The Trade Practices Act 2010 and schedule (2) has revealed the identical aspects to make an agreement an enforceable one to be presented and validated in law tribunal. The Victorian Law, NSW Law and Australian Business Law suggest the relevance of competency of the stakeholders to articulate an enforceable agreement (Hanrahan et al. 2013, p. 65).

Application- Jack has agreed upon the offer of Jane without negotiating by considering an exact amount of money in return of the sports car. The consideration of this agreement is totally valid with the present market proposition of Australia and Jack and Jane is totally capable of making a trade agreement on the basis of their age and legal background. The Second-hand Vehicle Dealers Act 1995 of Australian government suggests that the agreement between Jack and Jane is a valid and legal one. The terms of the agreement are set upon the acquiescence of Jack and Jane to establish a legal platform for the contract (McKendrick, 2014, p. 97).

Conclusion- This agreement has specific considerations that have proportionate value according to the business and corporation law. The overall activities of this agreement process make it an enforceable agreement for Jack under the guidelines of trade laws of Australia.

c) Issue- Jack has agreed to the offer of Jane for buying the Lotus Super 7 sports car in just $2500 whereas, the market price of that particular car is $2500 in Australia. The ultimate issue of this agreement deals with whether Jack manages to have an enforceable agreement with the existence of legal considerations.

Rules- According to Malbon et al. (2014, p. 30), the Fair Trading Act 1987 suggests the contract offer needs to be set in compliance with the market trend and economic perspective for being legal. Foggy and illegal transaction for trading hazardous components or intending to avoid tax payment is regarded as severe crime in the corporation law of Australia. The Second-hand Vehicle Dealers Act 1995 states that the consideration and offer needs to comprise comprehensive value to make the agreement enforceable. The 3rd schedule of Sale of Goods Act (1987) denounces that the stakeholders and the trading object needs to be legal and righteous to proclaim enforceability. The Consumer Transaction Act (1972) does state that any agreement with the involvement of person with criminal record cannot be granted as an enforceable one.

Application- In this agreement, Jane is selling the car in an awkwardly low price that has no clear justification. Jane needs to justify her offer clearly to make this agreement enforceable. On the other hand, the acceptance and consent of Jack is evident to make an enforceable agreement. The consideration is present as Jack is paying $2500 for the sports car. The very segment of offer is not clear at all as the value of the offer is not adequate as per the Second-hand Vehicle Dealers Act 1995. The contrasting value of the offer with the present market hypothesis makes immediate effect on the consideration that needs analysis to obtain the grant of law for being enforceable. Jack and Jane is completely competent to make this agreement through generation of mutual consent and the activities of the agreement are also legal in the prospect of the Sales of Goods Act 1987. Moreover, the execution of contractual terms by Jack and Jane is completely lawful in order to procure and enforceable agreement (Sa.gov.au, 2016).

Conclusion- This agreement has specific consideration through the transaction of specified money in return of the sports car. But, legally Jack did not have an enforceable agreement due to the gloomy aspect of the offered amount that has harmed the transparency of the process. The consideration and terms of offer need to be verified and modified in orderly manner to make this agreement enforceable according to the Australian business and corporation law.

2. Issue- The contractual agreement between the shipbuilder and the buyer did not comprise any provision of clauses regarding currency fluctuation. Due to devaluation of US dollar of near about 10% from the previous rate, the buyer had to pay additional amount of money to the shipbuilder to eradicate the chances of interruptions in the work process. The main issue in this agreement is whether the buyer can get back the additional money of $3 million of US currency from the shipbuilder as he is concerning his voice about the claim after nine months of delivery.

Rules- The international business laws and Australian trade law has some specific acts and guidelines for this kind of issues regarding absence of relevant clauses and late claims against contract breaches. According to Vagts et al. (2013, p.95), the Australian Second-hand Vehicle Dealers Act 1995 and the schedule (4) of this act states the obligation for a buyer to make the claim before 24 months from the delivery date of the product. According to the articulation of business law of Australia, the buyer may face severe problems in the course of validating his claim in the court for improper contractual process. There was no provisional clause about a fluctuating currency value in the agreement that at once denies the claim of the buyer under the articulation of section (9) of the Corporations Act 2001. This rule clearly verdicts that an agreement cannot grant the change of currency value of fall in economic stature of a country unless there is a prolific mention of a clause regarding this issue in the contract paper (Libguides.acu.edu.au, 2016).

The Fair Trading Act 2012 can be used in this claim to address the issue of economic fluctuation and devaluation through the systematic set of rules provided in FTD (Fair Trading Disputes) console. According to Lester  et al. (2016, p. 33), the unconventional clause like economic inconstancy that has tormented this agreement is subjected in Australian Consumer Law that suggests the buyer to provide relevant written account to strengthen the claim. The legislation of Australia has the provision for using a mediator in this kind of issues like financial turbulence of debtor and creditor for conducting mutual settlement outside the legislative court.

According to Latimer (2013, p. 301), the rule 3001 of the schedule (7) of Claims and Distribution Act (1998) of Australia can be applied to this specific case for helping the buyer to provide sufficient evidence in support of his claim to get back the extra money from the shipbuilder organisation. On the other hand, the C subdivision of Australian Compensation Act (2002) has the rule in favour of the buyer that suggests to submit a copy of agreement paper to the court to enhance the aptness and authenticity of the claim.

Application- The buyer has made a contract with the shipbuilder under the guidelines of Australian Business and Trade Law and the clause of currency devaluation was not mentioned in the agreement paper. Later, due to the fluctuation of the value of US dollars, the shipbuilder had demanded extra $3 million for finishing the project in estimated time. The buyer has made a legal claim to get back the excess money within the sanctioned time period by the Corporations Act 2002. Instead of that, he may face some critical turbulence in this process due to shortcomings in the contractual terms and conditions. The circumspection consent of the buyer to pay the additional money for ensuring the delivery in proper time changes the perspectives of the contractual agreement. The buyer has taken nine months to raise his concerns but, his claim is indeed legal under the Second-hand Vehicle Dealers Act 1995 (Round, 2013, p. 201).

The contractual agreement did not have the provision of currency devaluation clause and it is not even added in the process of paying additional money to the shipbuilder for continuing the uninterrupted flow of work process. As opined by Carr and Stone (2013, p. 36), the buyer can embrace the terms of Fair Trading Disputes Console and Fair Trading Act 2012 to establish his claim in the court by allowing the approval of economic fluctuation in contractual agreement. In order to gain strength in judicial prospect, the buyer needs to show written account of primary agreement with the paperwork that reveals the excess payment of money. The buyer ought to follow the VCAT rules to eradicate every possible chances of fake allegation to prove the authenticity of his claim. The contractual laws of the constitution of Australia need to be followed by the buyer to enhance the possibility of getting back the excess expenditure in the contract.

According to Lester  et al. (2016, p. 33), the buyer needs to ensure the relevance and authenticity of the evidences that is going to be produced in court otherwise, the court can verdict severe penalty for making illegal claims under the False and Misleading Claim Act 1997. The buyer may not get back exactly $3 million as the Australian business law defines the requirement to judge the current valuation of currency to determine the exact amount of money that is needed to be paid. The financial transaction details can be provided in the court to detail the terms and conditions of the agreement for engrossing the contingency to retrieve the money with ease.

Conclusion- The claim of the buyer is utmost legal as per the business and corporation acts of Australia. In order to get back the excess expenditure with sheer smoothness, the buyer needs to go through the acts and rules to provide lawfulness to the claim for gaining approval from the honourable court. Thus, the buyer can get his money back with this claim through proficient management of the legal processes that can establish an advantageous position for him in the court.

Conclusion

The factor of consideration needs to be emphasized in the course of articulating an agreement to generate sufficient ability to make the agreement enforceable according to the business and corporation laws. The different clauses of a business agreement play pivotal role to bring overall compactness to the agreement that is very much essential to nullify the possibilities of problems in future. This assignment generates systematic ability to ensure prolific formulation of business agreement with important terms and clauses to provide solidity to the contract.

Reference List

Carr, I. and Stone, P., (2013). International trade law. Abingdon: Routledge.

Hanrahan, P.F., Ramsay, I. and Stapledon, G.P., (2013). Commercial applications of company law. COMMERCIAL APPLICATIONS OF COMPANY LAW, CCH Australia Ltd,. 24(3), pp.52-96

Latimer, P., (2012). Australian Business Law 2012. New South Wales: CCH Australia Limited.

Lester, S., Mercurio, B. and Bartels, L. eds., (2016). Bilateral and regional trade agreements: Commentary and analysis (Vol. 1). Cambridge: Cambridge University Press.

Libguides.acu.edu.au (2016). Contract law. Available at: http://libguides.acu.edu.au/c.php?g=234001&p=1553409 [Accessed on 16th august]

Malbon, J., Lawson, C. and Davison, M., (2014). The WTO Agreement on Trade-Related Aspects of Intellectual Property Rights: A Commentary. Northampton: Edward Elgar Publishing.

McKendrick, E., (2014). Contract law: text, cases, and materials. Oxford: Oxford University Press (UK).

Round, D.K. ed., (2013). The Australian Trade Practices Act 1974: Proscriptions and prescriptions for a more competitive economy (Vol. 19). London: Springer Science & Business Media.

Sa.gov.au (2016). Terms and conditions of Australian Contractual law. Available at: https://www.sa.gov.au/topics/crime-justice-and-the-law/contract-law [Accessed on 16th august]

Tolhurst, G., (2016). The assignment of contractual rights. London: Bloomsbury Publishing.

Vagts, D.F., Koh, H., Dodge, W.S. and Buxbaum, H.L., (2015). Transnational business problems. Minnesota: West Academic.

 

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