Business Law Essay Example | Topics and Well Written Essays - 1750 words - 1

Business Law - Essay Example This also helps to provide a clear indication about the intention or willingness of acceptance of certain rules and regulations by both the parties through a mutual understanding. If any misinterpretation occurs within the agreement then it might hamper both the parties resulting in uncertainty and misinterpretation of the law3. In addition to agreement, capacity is also the other significant element of a contract. It is referred as the capability of both the parties to come into a legally requisite contract. Other than this, intention of both the parties also offers a considerable role in the contract. This part mainly describes the key purposes of both the parties present within the contract5. Formalities are another considerable component of a contract which mainly describes that a contract may be created either in written or in oral form. Besides, the written form is more efficient as it helps to reduce the activities of frauds5. This can be reduced only when both the parties wit hin a contract are mutually in accord with one–another leading to concurrence of will. ... All the above constituents are equally important for making a contract legitimate and breach of one of these factors may result in a void agreement5. Application of the Law to the Case The case study presented in the assignment does not follow all the elements of a contract in an effective way. The case study mainly highlights a contract of selling a refurbished bicycle within Australia and so it needs to conform to various rules and regulations of Australian Contract Law. It was a transpiring business understanding between a university student named Peter and owner of ‘tourbikes’, Sally. Both the parties were well capable to enter into a mutual agreement. Besides, the intention of both the parties was entirely different from one another. The purpose of Peter was to purchase a bicycle in order to retain the part-time job as a courier, which might prove highly beneficial for him to pay for the fees of his university. In addition, the main consideration of Peter was that h e wished to purchase a bicycle within an amount of AU$5000. He desired to purchase a bicycle model named as Cadel Evans ‘GF’ only to fulfill his inclinations whereas Sally’s key perception was to sell off the bicycle at any cost. On the other hand, the intention of Sally was to sell the bike in order to pay off the amount taken as a credit. In the provided scenario, a proper offer as well as acceptance was not made from either of the interested parties i.e. Peter or Burt. Moreover, there was no proper agreement reached between the interested parties and the seller Sally. Sally also did not make a proper communication to Peter before delivering the bike to his house, which depicts certain lack of consideration on behalf of Sally as Peter did