"qwertyuiopasdfghjklzxcvbnmqwertyui opasdfghjklzxcvbnmqwertyuiopasdfgh jklzxcvbnmqwertyuiopasdfghjklzxcvb nmqwertyuiopasdfghjklzxcvbnmqwer LAW ASSIGNMENTtyuiopasdfghjklzxcvbnmqwertyuiopas Short Case studiesdfghjklzxcvbnmqwertyuiopasdfghjklzx 8/19/2016cvbnmqwertyuiopasdfghjklzxcvbnmq wertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghj klzxcvbnmqwertyuiopasdfghjklzxcvbn mqwertyuiopasdfghjklzxcvbnmqwerty uiopasdfghjklzxcvbnmqwertyuiopasdf ghjklzxcvbnmqwertyuiopasdfghjklzxc vbnmqwertyuiopasdfghjklzxcvbnmrty uiopasdfghjklzxcvbnmqwertyuiopasdf ghjklzxcvbnmqwertyuiopasdfghjklzxc vbnmqwertyuiopasdfghjklzxcvbnmqwContentsSolution to Question 1................................................................................................ 2Part a) ...................................................................................................................... 3Part b) ...................................................................................................................... 4Part c) ...................................................................................................................... 6Solution to Question 1................................................................................................ 7Bibliography .............................................................................................................101 | P a g e Solutionto Question 1The crux of all the questions present is whether the consideration is present or notand whether a contract exists or not.First of all Consideration is a part of contractto be valid .Contracts has four components that is an offer from the other party,theacceptance which is followed by the offer ,the promise and aconsideration.Common law was present and contract is formulated by them.A contract can be defined as an agreement, which binds both the parties andsupports them with what to do and what not.It is enforceable by law.In short wordswe can say contract is the agreement made and the agreement, which isenforceable. It can be written in oral as well as in written form.Next comes the Consideration means an exchange of promise for some valuablething , money, a promise made to something in futureand should not includeaffection ,love kindness in return.Julie Clarkie said Consideration as a price thatcan be promised.Consideration is simple words is the value that is gained from the promisor to thepromise.It actually moves from the promisor to the promise.Other forms ofconsideration are a right ,interest arising to someone or some responsibility ,given or beared by other If there is no Consideration,there is no Contract .If the contract is missingthere cant be any base for any liabililty.t is to be noticed that all the all contractsare called as agreements but all the said agreements cant be classified as contracts.2 | P a g e Answer to PART a)Jane is leaving for overseas and she before going offers to give Jack her Sports Car.The market price for this type of vehicle turns out to be $25000 with goodcondition. Jack on the other hand accepts the offer, which is given by JaneIssues arising from the caseFrom the respective case, there are certain situations that arise and for this, anapplication will be needed to solve the situation. The first issue that arise is if thereis any consideration involved in this or if there is sufficient consideration. Thesecond issue is that if there is valid contract made between the parties. The thirdissue is this whether there is an agreement and if there is whether the agreement isenforceable or not. The fourth issue is whether the agreement amounts togratuitous gift.What the law saysConsideration can just said to be a part of contract. Consideration is just said to bean element or component of contract. Offers and gifts are not mutually related. Thedifference between gift and contract is in the gift the donor provides some amounttangible thing to the done without expecting anything in return, whereas in case ofcontract both the parties exchange something to held the contract as valid. Acontract can be defined as an formal agreement between two parties setting outwhat they should do and shouldn’t, either in a written form or oral formApplying the facts of law3 | P a g e In this case the act performed by Jane to give his sports car can’t be called as avalid contract because there is no consideration involved here .There is nothingJack is willing to gift Jane .It is merely a gift. Jack does not have to give anythingin return so there is no consideration that is Jack does not have to provide monetaryconsideration to Jane. Jack accepted the car and therefore the gift was said to bepassed. The acceptance is very much required for a gratuitous gift to pass.We concludeWith the above discussion, there is no consideration and no enforceable contractexists. Offer can be termed as an agreement but contract binds two things that isagreement that is made and it had to be enforceable. If in a case of disagreementJane wants to have her car back, Jack will not be having any remedy in a court law.In this case the done has to prove that the donor did not give any reservations likehaving her car back in any conditions and the donor intended to pass the propertyto Jack.Answer to PART b) Jane has an offer to sell Jack her sports car for $25000.The market price prevailsin the market with good conditions is said to be $25000 and after the offerpresented by Jane, Jack accepts the offer.Issues that can be arise from the above case 4 | P a g e The foremost thing is consideration. From the above case, there are two things tobe seen. Firstly whether the give case attracts consideration and whether there issufficient amount of consideration that is whether it is adequately givenApplied lawIt is said that on terms of the consideration we cannot say a contract to be valid,invalid, or enforceable .Consideration must be initiated by the promise whopromises to provide goods or services to the promise. A contract should actaccording to the confines of law and who shall not act must be punished. The courtsays that if two parties enter in to contract with getting intimidated or throughmisinterpretation, Court will not be able to interfere in between.Combining the law with the factsIt is to be said that both the parties have fulfilled all the conditions related toconsideration because Jane has offered to sell and the other party accepts the offer,it can also be said as a returned promise. We can see that all the elements of theconsideration can be suffice and both the offer and acceptance is present. It ismoving from the promisor to the promise. With consideration, we also see that ifthere is adequate consideration or not. In this case, the market value is equal to theprice offered so it is very well adequate.ConclusionYes, the consideration exists, the enforceability exist. Hence a contract.5 | P a g e Answer to PART c)In this case Jane offers to Sell Jack her sports car for $2500.The market valueforthe same in the market is said to be$25000 and Jack gave a positive reply andaccepts.IssuesIn this case we see that there is consideration but not adequate as the market valueis much higher than the price offered. It is also being seen whether the contract isbinding or notLaw PrevailingConsideration does not comes with a clause that it has to same as the market priceprevailing. It just needs to be abundant enough. If a seller quotes any price and heis getting the value, it means that the contract is ample. For example, the normalprice of a scooter is $1000 and the seller sells it as $500, the seller cannot claimthat the consideration was not ample enough since it is below normal rateprevailing in the market. Two things are required there should be a value and boththe parties should agree and decide mutually. Respect should be there for thedecisions taken Application of the lawIn this situation the promisor makes the offer for $2500 and the existing marketprice at that point of time was $25000 .We see that a value is present an it ismutually accepted by both the parties and the consideration given is plenty and has6 | P a g e a definite value, and it does not include any love, kindness affection which isexcluded from the definition of consideration. The value was economic in natureand the contract was not entered for any debt settlement.ConclusionIt is to be concluded that the contract is binding and consideration is ample .Solution to Question 2A shipbuilder deals with a party to construct a tanker .The terms of payment was inUS dollars and the provisions of any fluctuation of currency was missing .Theconstruction was completed around fifty percent and then United States had due toforces of regulation of law had its currency devalued. After the devaluation, theshipbuilder was going at a loss as after the devaluation he had to incur extra moneyfor the construction. He then demanded an extra $ 3 million to be paid immediatelyor he would have stopped the work. The buyer had no other option but had to payas he was already having the charter for the said tanker and it was very essentialfor him to deliver it on time. He had no other option to take legal help as he wasunder pressure. The buyer commenced legal actions after nine months of thedelivery A contract has been made between the shipbuilder and the buyer .Contact is aformal agreement, which is required by law and is legally binding to both theparties. An agreement and the right to enforce it are known as Contract. It can beoral as well as Written. A Contract comes with different clauses depending on thesubject of the deal. Law agreements is been made different for different countries.7 | P a g e Contracts are said to be legally enforceable andcontracts speaks for itself in anyof the unforeseen circumstances.It is a type of proofand both the parties are boundto follow the terms written.However sometimes this method becomes too jarringon the other party.Sometimes situations are not in ones control an any of the partiesor both are made to take the pain.After this a application was made and a law waspassed called the Doctrine of Frustation.It is also called as unjust enrichment. Itmeans the events that take place, which acts as a hindrance in completion of thecontract, and it is even illegal to continue. It is also called ‘the thing which isdestroyed without the debtors act or default’.In case of Taylor vs. Cardwellwhen in opera house a play was about to rentedfor the concerts was destroyed by fire ,it is said that the contract was frustrated.The nature of the contract is such that it will not operate as the main thing does notexist anymore.The shipbuilder was in the middle of the contract and the decrease in value ofmoney leads him to ask for ectra money from the buyer.In this case the shipbuilderhad every right to ask for the money according to Doctrine of Frustation, as thesituations were not in control of either of the parties.It therefore becomes impossible to take it further as the conditions orthe clause was not taken in to consideration at that point of time.The seller asking for extra money was not wrong and was not deliberately orpurposive. If by any chance such subsection or note is not present in the contract,the loss should be shared both ways equally. So the diminishing8 | P a g e In this case, the seller asking for a hike in the price is falls under the clause of theDoctrine of Frustration and was not an intentional act...Lord Radcliff hassummarised that frustration occurs that without the default of either party anobligation has become impossible to perform as the conditions were not proper.However this situation is open for the parties to provide so in the making of thecontract.If by any conditionthe clause or the provision is not stated in the contract,the loss is to be shared equally .In this case a clause was not entered beforehand soloss would be shared equally. The extra cost which has been incurred by thedecline in dollar should be divided. To attract the plea of frustration it is importantto show that the situations have changed so radically.Hence, the provisions of section 6, Frustrated Contracts Act of Australia concludedthat buyer would be succeeded in his claim for the extra cost and the buyer wouldget half of the extra cost incurred by him as losses are to be shared equally.9 | P a g e Bibliography("Doctrine Of Frustration - Corporate/Commercial Law - India")."Doctrine Of Frustration - Corporate/Commercial Law - India". Mondaq.com.N.p., 2016. Web. 19 Aug. 2016. "Agreements Lacking Consideration: Gift Promises | CALI". Cali.org. N.p., 2016.Web. 19 Aug. 2016."Consideration". TheFreeDictionary.com. N.p., 2016. Web. 19 Aug. 2016."Meeting Of Minds: Doctrine Of Frustration Indian Contract Act".Likemindness.blogspot.in. N.p., 2016. Web. 19 Aug. 2016.Aitchison, S. (2016). When is a done deal not done?: a legally enforceablecontract. Retrieved August 19th, 2016, from Mondaq.com:http://www.mondaq.com/australia/x/291480/Contract+Law/When+is+a+don e+deal+not+done+a+legally+enforceable+contractGrace, F. E. (2016). Northern Territory of Australia Construction Contracts(Security of Payments) Act. Retrieved August 19th, 2016, from feg:http://feg.com.au/10 | P a g e J, G. (2016). Principles of Australian Contract Law. Australia: Lexis Nexis.t"Frustration In English Law". Wikipedia. N.p., 2016. Web. 19 Aug. 2016."Doctrine Of Frustration And Force-Majeure Clause". Legalserviceindia.com. N.p.,2016. Web. 19 Aug. 2016.("Consideration: Every Contract Needs It | Nolo.Com")."Consideration: Every Contract Needs It | Nolo.Com". Nolo.com. N.p., 2016. Web. 19 Aug.201611 | P a g e "