Contract Law and Ethical Issues

Question: Discuss about the Contract Law and Ethical Issues. Answer: Introduction: The case study provided in the assignment focuses on the enforceable agreement that clearly depicts the contract law according to the Australian law of contracts. The fact that is focused is that Jane is selling its brand new lotus super 7 sports car to Jack with the amount of $25000 where the market price of the Lotus Super 7 Sports car is seemed to be $25000 (Anon, 2016). The condition of the vehicle as mentioned is seemed to be in the good condition. With focusing on the offer made by Jane to Jack, it represents the invalid offer made as referring to the practical conditions of law. Bust in this case Jack accepted the offer made by Jane and also the contract is done verbally which represents that the contract is seemed to be value less in nature. Issues The issues that are focused in this case study is the invalidation of the contract which is seemed to be the verbal contract made without the agreement. The invalidation of the contract helps in the creation of the performance that helps in the mitigation of the difficulties that arose in this case. The legal framework also helps in the creation of the issues of creation of the deal verbally without any agreement (Australiancontractlaw.com, 2016). This case also enhances the case for the settlement of the illegal framework that helps in creation of the issues for Jack and Jane. Henceforth the legal frameworks are mentioned with the mitigation of the issues of this case for the appropriate enhancement of the contract. That is why it depicts the failure of the decisions created by the law of the contract of the Australia with carrying out the contract without any agreement. Rules The acts that are applied in this case are the enforceable agreements with implication of the Australian laws of the contract. For this reason, the contract also helps in the mitigation of the illegal activities carried out by the Jack and Jane (The Law Handbook, 2015). It also helps in the enhancement of the issues that are required for the consideration of the acts with providing the reasonable money according to the laws of the contract. It also helps in the creation of the deals with the enhancement of the market and the legal creation of the product also helps in the creation of the appropriate rules with the consideration of the remedy clauses that defines the enforcement of the agreements with the creation of the agreement contract between them. Application The application of the contract helps in the creation of enhancement of the agreement with the appropriate following of the contract. It thereby also helps in the creation of the breaching of the contract with not following the rules and the conditions of the laws of the contract. It henceforth also helps in the creation of the breaching of the contract and thereby the contract leads to the breaching with the implementation of the clauses (PHILLIPS, 2008). Then the contract also helps in the creation of the remedy for the contract and also it helps in the breaching of the contract with the creation of the verbal communication. It also helps in the creation of the enhancement of the contract that helps in the implementation of the appropriate laws that are seemed to be helpful for the contract with the appropriate enactment of the contract (Sa.gov.au, 2016). For the consideration of the contract, the benefits of the contract can only be received by following the contract and it also h elps in the creation of the particular agreement appropriately with the consideration of the case of the contract. Conclusion As per the laws of the common law of Australia, the enactment of the laws of the contract helps in the enactment of the laws in the case of the Jack and Jane. The consideration of the contact helps in the consideration of the laws and the regulations helps in the creation of the enforceable acts in the case of the promises made. It thereby provides the breaking of the contract with undertaking the verbal communication (WILLETT, 2011). The benefits of the enforceable agreements help in the enforcement of the acts and it also helps in the consideration of enforcing the promises and it also shows the breaching of the contract with the implementation of the mitigation techniques. Issues In the given case study, a shipbuilder entered into a contract with North Ocean tankers to build a tanker for them. In US dollars the contract was done and the agreement didnt include any provisions for the fluctuations of currency. In the mid of the construction of the ship, the currency was devalued by the government of United States by 10 percent. Due to the devaluation of the currency, shipbuilder started to make losses on the contract (Radan and Gooley, 2009). Therefore, due to the loss on the agreement shipbuilder demanded an extra amount of US $3 million or they would stop the work. North Ocean Tankers agreed to pay as because it was essential for them to receive the ship on time. North Ocean Tankers did not take actions against shipbuilder in order to recover the excess amount till nine months after the delivery. Rules The rights of the consumers in Australia are protected by Australian contract law which is governed by common law. The contract law imposes rules and regulations on the basis of terms and conditions in the contract, to make a legal contract and dealing with the parties involved in the contract. A contract is bind legally and includes set of promises. In the given case study, the contract between shipbuilder and North Ocean Tankers are violated (Barker, 2005). A promise is undertaken under a set of conditions and terms and it also includes legal formalities. The party gets remedies if there is a breach of contract. The party would be entitled to the damages and entitled to remedies. The contract law explains the procedures to determine the extent of the damages. The consumers are protected under the contract law and from unfair trade practices. In the given case, the contract between shipbuilder and North Ocean Tankers are violated (Carter, 2006). Due to devaluation of currency, shipb uilder suffered losses on contract and demanded extra amount. The shipbuilder forced North Ocean Tankers to pay an extra amount. On the other hand, till nine months North Ocean tankers did not took any actions against shipbuilder. Therefore, both the parties violated the contract law of Australia and both the parties are liable. Application In the given case, the terms and conditions of the contract has been violated. Therefore, legal actions and remedies are available as per the Australian contract law. There was an agreement between shipbuilder and North Ocean Tankers and the contract was in US dollars. The contract did not included provision for currency fluctuations. The currency of United States devalued in the mid of the ship construction (Carter, 2012). The shipbuilder started to make losses and demanded an additional amount of US $3 million. The shipbuilder forced North Ocean Tankers to make an extra payment otherwise they will not complete the construction of ship. The demand of shipbuilder was agreed by North Ocean Takers as because they need the ship on time. Till nine months after the delivery of the ship North Ocean Tankers did not took any actions against shipbuilder (Ellinghaus, 2007). There was no provision for the currency fluctuation in the contract but shipbuilder demanded extra pay for the losses inc urred. On the other hand, North Ocean tankers also did not take any action after the delivery of the ship till nine months. Therefore, as per the contract law both the parties have committed an illegal act. It was important for North Ocean Tankers to take actions against shipbuilder as per the contract law as the company violated the terms and conditions of the contract (Watson, Gleeson and Higgins, 2013). Therefore, North Ocean Tankers will not be able to recover excess amount of money. Conclusion The contract law of a country establishes the rules of a contract by which the parties of the contract use to be bonded. A contract should have a valid offer and offer must be considered by the entire parties before completion of the contract. All the parties should be agreed to the term and conditions of the contract and all the terms and condition must be cleared to the entire parties, who are going to engage in a legal contract prior to make a legal contract. In the undertaken case study it is perceived that a shipbuilder company had entered into an agreement with North Ocean Tankers in order to build a tanker in a certain amount of money but they demand more money as the value of US dollar dropped, which is against the contract. References Anon, (2016). [online] Available at: https://www.lawsociety.com.au/cs/groups/public/documents/internetyounglawyers/644777.pdf [Accessed 12 Aug. 2016]. Australiancontractlaw.com. (2016).Australian Contract Law | Julie Clarke. [online] Available at: https://www.australiancontractlaw.com/law.html [Accessed 12 Aug. 2016]. PHILLIPS, L. (2008). 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