Key concepts of contract law

A contract is an agreement between two parties, which is binding by law. The parties entering into the business has certain rights and obligations under a contract (Law, 2016). According to the Contract Law, an offer is regarded as a proposal made by one person to another person for doing an act or abstains the person from doing so. The person making the offer is called the promisor and the person receiving the offer is known as the promisee. It is first essential requirement needed for forming a contract. An offer generally requires a unilateral act by two or more parties. When the promisor makes the offer and the promisee accepts the offer by giving his assent, the proposal will be treated to be accepted, thus will become a promise. The parties forming it decide the duration of a contract. The parties involved in a contract can terminate the contract (Andrews, 2015). It can be terminated by five ways. Firstly, when a contract is purposely honored by one party and is grounds for contract termination is known as breach of contract. It exists only when one party fails to meet his obligations. Secondly, when there is an impossibility of performance by the parties, the company has the right to terminate the contract. Thirdly, a contract can be terminated if an individual misrepresents himself by making a mistake. A contract can be terminated if the obligations mentioned in the contract are completed. Parties involved in the contract must provide evidence stating that they have fulfilled their duties of contract. If either of the parties provides a prior written agreement for contract termination for a specific reason, a contract is said to have terminated (Adriaanse, 2016). There are situations when matters may appear to be an offer but will not amount to an offer. In cases when an individual sends an invitation to tender it does not mean that person is offering. Similarly, an auction does not mean it will amount to an offer. This is because there is no acceptance from the other end. Public advertisements do not amount to an offer. Advertisements are regarded as an invitation to make an offer. Offer is the basic step of forming a contract (DeMarzo & Sannikov, 2016). Therefore, verbal offers may look like an offer but will not amount to it.

(1) The facts of the cases state that the two parties Extrapayne Pte Ltd and Ino-cent Landscape Pte Ltd entered into a contract based on a consideration of $150,000.  The contract stated that Ino had to construct a swimming pool for Extrapayne for the amount mentioned above in stages. The construction needed to be completed in 3 months.

Termination of a contract

(2) Ino had breached the contract and it was a fundamental breach of contract. Ino had breached the contract as Ino kept delaying the work and did not complete it within the time framed mentioned in the contract. Extrapayne paid him a sum in advance since Ino was facing cash problems. Ino still asked for more money to build the swimming pool.

(3) The type of the contract being a fundamental one, Extrapayne can sue Ino for the delaying and the damages incurred. Extrapayne can also terminate the contract if he wishes to. This kind of contract will permit Extrapayne to conclude the performance of the contract.

(4) Relating to the concept of contract law, since Ino had committed a breach of contract, Extrapayne will be liable to receive remedies from Ino. The remedies include monetary damages, specific performance, restitution, reformation and rescission. Ino will be liable to pay for the damages as in loss of time and money. The cost needs to recovered by Ino. Rescission is the remedy that terminates the contractual duties. Extrapayne can also opt for reformation. For this, the court would have to permit to change the substance of the contract.  

(5) Brining a substitute contractor in the contract will also be treated as a breach of contract since it was not mentioned in terms while the contract was formed.

(6) Extrapayne can claim for the sum of $10,000 that it had paid in advance to Ino since that money was suppose to get used for the construction of the swimming pool.

3.1- (D) All of the above

3.2- (C) Specific Performance

3.3 – (D) Injunction

3.4 – (C) An invitation to tender

3.5 – (A) Rodney should not buy from Daniel, and claim full damages from Jackson

3.6 – (D) A casual comment

3.7- (D) Sunny can claim against Joy Jewellery Store for breach of contract

3.8- (A) Mr. Sai’s promise was not enforceable in Court as the rescue was past consideration.

3.9-  (A) Andrea’s contract was void as it as it was for illegal purposes, and therefore, she could not sue to recover any unpaid rent from Ah Seng.

3.10- (A) A contract can only be made in writing

William can claim for remedies from Harry as he broke his promise of providing the manufacturing materials. Due to the delay of delivering the materials, William had to suffer a huge loss in monetary terms (Dobbs & Roberts, 2017). Therefore, he can claim for compensation of damages from Harry based on the law of contract. William can do so as harry had agreed on the terms of William. After agreeing and knowing the emergency of William, Harry failed to deliver the materials on time (Chen-Wishart, Loke & Ong, 2016). However, it can be concluded that Harry will be liable to compensate William for the losses incurred due to his fault. This is the only remedy applicable in such a situation. William can approach the court if he wishes to apply the remedy in this situation.

References:

Adriaanse, M. J. (2016). Construction contract law. Palgrave Macmillan.

Andrews, N. (2015). Contract law. Cambridge University Press.

Chen-Wishart, M., Loke, A., & Ong, B. (Eds.). (2016). Remedies for Breach of Contract. Oxford University Press.

DeMarzo, P. M., & Sannikov, Y. (2016). Learning, termination, and payout policy in dynamic incentive contracts. The Review of Economic Studies, 84(1), 182-236.

Dobbs, D., & Roberts, C. (2017). Law of remedies: damages, equity, restitution. West Academic.

Law, S. (2016). Contract law.