Tutor Quora

Business And Corporations Law : Modern And Contract

Academic Anxiety?

Get an original paper within hours and nail the task

156 experts online

Free Samples

Business And Corporations Law : Modern And Contract

.cms-body-content table{width:100%!important;} #subhidecontent{ position: relative;
overflow-x: auto;
width: 100%;}

Business And Corporations Law : Modern And Contract

0 Download9 Pages / 2,075 Words

Describe about the Business and Corporations Law for Modern and Contract.

1. The aim is to find the presence of considerations for given situations and conclude that whether Jack has an enforceable agreement which is legally binding on Jane.
(a) In this scenario, Jane is the offeror and Jack is the offeree. Jane is going overseas, hence she has offered her car to Jack, and Jack has agreed to take the car from Jane. This scenario is having both the elements to enact an agreement i.e. valid offer and acceptance. However, the question arises in this situation is to verify the presence of the consideration (Gibson & Fraser, 2014). Jane the offeror has not revealed any consideration amount for the exchange of the Lotus Super 7 Sports car from Jack. Thus, this case is having lack of consideration. According to the contract law, any agreement will be termed as void, if it does not have valid consideration. It can be the price made by the offeror to the offeree. This consideration value must be paid by the offeree in the exchange of the offer. Any valid consideration can have the tendency to bind both the parties into the enforceable agreement (Taylor & Taylor, 2015).  The court has provided the decision in Placer Development Ltd. Commonwealth [(1969) 121 CLR 353], that in any case, when there is any uncertainty to determine the consideration amount, then the case does not have valid consideration and results in void agreement (Davenport & Parker, 2014). It is also a critical feature that the offeror must inform the offeree about the consideration amount with any mode of communication, it can be direct or indirect. Also, the offeree cannot adopt any consideration amount without the confirmation from offeror. It is the prerequisite for the valid consideration that the consideration amount must be valid and lawful as per the civil law, besides the fact that it is regulatory value or non-regulatory value (Paterson, Robertson, & Duke, 2015).
In this situation, Jane has not asked for any value for her Lotus Super 7 Sports to Jack, this indicates the invalid consideration value. However, it also cannot considered from the above situation that Jane was going foreign, hence she offered her car to Jack at the current market price, because she has not cited any value for car, then Jack cannot adopt this car for any assumed consideration amount. Since, consideration cannot be any assumed value from offeree, irrespective of the fact that the offeror did not mention any value. In the present case scenario, the offeror has not asked for any consideration price from offeree and thus no enforceable agreement for Jack. It would in fact be referred to as gratuitous promise since Jane has no consideration in the promise made and such promises are non-enforceable.
(b) In this situation, Jane the offeror has communicated a consideration amount to sell her Lotus Super 7 Sports car to Jack. This amount of the car is same as the market rate of the car i.e. $25,000 and this value of the car is acceptable by Jack. Hence, all the elements of any enforceable agreement are specified between the offeror and offeree i.e. valid offer, acceptance and consideration. It is not imperative that consideration have a numeric value in return to the offer, it can include any benefit interest, or devolving of rights in exchange of the offer (Harvey, 2009).
Consideration for the offeror is expressed in terms of the return favour from the offeree. It is the amount for the offer that the offeree needs to pay to satisfy the offer. The amount of consideration made by the offeror i.e. $25,000 is a valid consideration amount for the car, and easily distinguish in the view of law. Thus, this case satiated all the conditions needed for the contract. Hence, Jack has an enforceable agreement with Jane.
(C)  In this situation, Jane the offeror has clearly mentioned the consideration amount for the sale of her Lotus Super 7 Sports car to Jack. This amount is legally valid under common law and termed as regulatory value.
In the enactment of enforceable agreement, the intent and capacity of the parties are the imperative factors.. The main impact of the enforceable agreement is that both the parties are legally bound with regards to the obligations and rights as per the contract. There is not such importance in the equality of the consideration amount with the market real rate of the offer. This is called the adequacy of consideration (Gibson & Fraser, 2014).  Hence, the consideration must have some value more or less, is not the question in case of enforceable agreement. This adequacy of the consideration becomes imperative, when any unsuspicious conduct has offered between the parties. It is not essential that the consideration value is same as the specific monetary value. In Carlill v. Carbolic Smoke Ball Co case, it is necessary that the offeror should accept the consideration and same should be transferred from the offeree (Pendleton & Vickery, 2005).
The nature of the consideration can be explained with the example of the case Chappell v. Nestle, in which the offeror made the consideration of stipulated things. Even a mere peppercorn or an empty wrapper can also be treated as a valid consideration (Richard, 2003).
Additionally, the consideration must be a real value or object and should be feasibly exchanged between the parties. In this case, offeror Jane has made a consideration amount of $2,500 beside the deed that the real rate of the car is $25,000. This stipulated amount has been accepted by Jack. Even though, this consideration amount is much lesser than the real amount of the car, but still a valid consideration is present. Therefore, all the essential conditions are satisfied in this case i.e. valid offer, consideration, and acceptance. Thus, Jack has an enforceable agreement with Jane.
2. Issue
To comment on the possibility of success for North Ocean Tankers with regards to claim for $ 3 million recovery based on the applicable legal principles.
One of the key requirements in the execution of a valid contract is that the parties should provide their free consent to assume the various contractual obligations. At times, when one of the parties do not find requisite consideration to be bound in a contractual relations, the offers by the other party may be turned down. In such cases, it is possible that the offeror may obtain a forced consent through the use of force, a situation which is termed as duress. The use of duress is quite common in bringing modifications to the contract clauses which essentially required consent from both parties and cannot be implemented unilaterally (Harvey, 2009),
It is noteworthy that as per the common law, any contracts that are executed with the use of force (whether physical or economic) are voidable if the party subject to threat desires the same (Pathinayake, 2014). This view is derived from the verdict given by the honourable court in the Electrcity Generation Corporation t/as Verve Energy v. Woordside Energy Ltd. [2013] WA SCA 36 case. The court detected the presence of economic duress and thus concluded the voidable nature of the contract.  The party subject to threat can claim duress as a valid defence and therefore demand losses from the other party due to the compliance with the unreasonable demands (Taylor & Taylor, 2015). However, the scope of claim is limited to only that damage which is caused due  to forced consent being given under the influence of threat (physical or economic) (Richard, 2003).
Over the period of time, duress has emerged as a strong defence for parties who are forced into contractual relations. This has been especially enabled with the addition of economic threat to the purview of the already existing duress concept. This is significant since unlike the old days when threat were primarily physical and apparent, now the threats are implicit and through the usage of superior economic power so as to gain at the behalf of the interests of the other party. In order to conclusively establish the usage of economic duress, certain aspects need to be established in the court (Gibson & Fraser, 2014). There needs to be evidence with regards to the economic power being used in bad faith with the intention of gaining agreement on an unfair term or promise. This threat leads plaintiff into a circumstance which demands that only possible option worth pursuing is acting in agreement with the demand.  As the plaintiff provides consent to the term, condition or clause, there is legal agreement between the parties which prevents the party from dishonouring the commitment given (Davenport & Parker, 2014).
If the presence of economic duress is established, the plaintiff gets the right to claim damages from the defendant citing duress (Harvey, 2009).  However, a critical aspect in this regard is the time within which the plaintiff should file a claim with the court. Ideally, this needs to be carried out as soon as the delivery of the product or the service is done but in case of valid reasons, if it cannot be filed immediately, then the same should be done before the passage of reasonable time. The definitive authority with regards to define the “reasonable time” is the court which decides this timeframe based on the underlying case facts (Pendleton & Vickery, 2005).
A leading case in this regard is the North Ocean Shipping v Hyundai Construction (The Atlantic Baron) [1979] QB 705 case. The court agreed to the presence of economic duress based on the case facts and thereby applying the above theory, the claimant should have been successful. However, it was not so as the court indicated that the delay amounting to right months since the tanker delivery is clearly beyond reasonable time in the given case ((Pathinayake, 2014).. Owing to this huge delay, the claimant has indirectly indicated voluntary acceptance to the extra payment and hence cannot now claim it
The given case facts indicate that a legal enforceable contract has been executed between North Ocean Tankers (“Buyer”) and a shipbuilder (“Seller”) with regards to tanker construction. During the building period, the buyer executes a charter for the tanker but there is request for payment of $ 3 million by the shipbuilder. The shipbuilder justified this on account of devaluation in USD but the contract did not had any provision for such a payment. The buyer denied making the payment even though subsequently it complied but only because the seller threatened to stop the work which the buyer could ill afford. The buyer got the tanker delivered on time but made a claim on the $ 3 million payment only after nine months.
It is apparent from the case fact that the seller acted in bad faith and used economic power by threatening to not fulfil the contractual obligations. The buyer on account of the charter could not delay the delivery and hence agreed for the payment. It is clear that if it hadn’t been for the threat from the seller, the payment of $ 3 million would not have been made by North Ocean Tankers. By agreeing to the demand, they had to make the payment which they did. Hence, economic duress is undoubtedly established but the long delay after delivery seemed unjustified and belong reasonable time. The same would also be indicated by the verdict in the North Ocean Shipping v Hyundai Construction (The Atlantic Baron) [1979] case. Thus, the buyer would not find any success in the recovery of the payment to the tune of $ 3 million as the long delay has made the modified contract legally valid.
North Ocean Tankers will not be able to recover the payment made to the buyer to the tune of $ 3 million on account of the delay beyond the reasonable time available to claim damages in cases involving duress.
Davenport, S & Parker, D 2014, Business and Law in Australia, 2nd eds., LexisNexis Publications, Sydney
Gibson, A & Fraser, D 2014. Business Law, 8th eds., Pearson Publications, Sydney
Harvey, C. 2009, Foundations of Australian law. 3rd eds., Tilde University Press, Prahran, Victoria
Pendleton, W & Vickery, N 2005.  Australian business law:  principles and applications, 5th eds., Pearson Publications, Sydney
Paterson, J, Robertson, A & Duke, A 2015, Principles of Contract Law, 5th eds., Thomson Reuters, Sydney
Pathinayake, A 2014, Commercial and Corporations Law, 2nd eds., Thomson-Reuters, Sydney
Richard S 2003, The Modern Law of Contract, 5th eds., Cavendish, London
Taylor, R & Taylor, D 2015, Contract Law, 5th eds., Oxford University Press, London

Free Membership to World’s Largest Sample Bank

To View this & another 50000+ free samples. Please put
your valid email id.


Yes, alert me for offers and important updates


Download Sample Now

Earn back the money you have spent on the downloaded sample by uploading a unique assignment/study material/research material you have. After we assess the authenticity of the uploaded content, you will get 100% money back in your wallet within 7 days.

UploadUnique Document

DocumentUnder Evaluation

Get Moneyinto Your Wallet

Total 9 pages


*The content must not be available online or in our existing Database to qualify as

Cite This Work
To export a reference to this article please select a referencing stye below:


My Assignment Help. (2017). Business And Corporations Law : Modern And Contract. Retrieved from https://myassignmenthelp.com/free-samples/business-and-corporations-law-modern-and-contract.

“Business And Corporations Law : Modern And Contract.” My Assignment Help, 2017, https://myassignmenthelp.com/free-samples/business-and-corporations-law-modern-and-contract.

My Assignment Help (2017) Business And Corporations Law : Modern And Contract [Online]. Available from: https://myassignmenthelp.com/free-samples/business-and-corporations-law-modern-and-contract[Accessed 19 December 2021].

My Assignment Help. ‘Business And Corporations Law : Modern And Contract’ (My Assignment Help, 2017) accessed 19 December 2021.

My Assignment Help. Business And Corporations Law : Modern And Contract [Internet]. My Assignment Help. 2017 [cited 19 December 2021]. Available from: https://myassignmenthelp.com/free-samples/business-and-corporations-law-modern-and-contract.

.close{position: absolute;right: 5px;z-index: 999;opacity: 1;color: #ff8b00;}


Thank you for your interest
The respective sample has been mail to your register email id


$20 Credited
successfully in your wallet.
* $5 to be used on order value more than $50. Valid for
only 1

Account created successfully!
We have sent login details on your registered email.



MyAssignmenthelp.com is one of the noted service providers that deliver essay help. We provide tailored essay assistance to make sure that student gets online essay help exactly in the way they want it to be written. We at MyAssigemnthelp.com have built teams of consultants, who readily attend every query related to help me writing my essay. We provide essay writing help in forms of tips and steps in order o assist students with tough essay assignments.

Latest Business Law Samples

div#loaddata .card img {max-width: 100%;

BU1112 Business Law
Download :
0 | Pages :

Course Code: BU1112
University: James Cook University

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: Australia

Part A
Whether Stella is considered as an employee of PRX?
The main difference between employee and independent contractor is stated below:
Employee entered into contract of service, but contractor entered into contract for services.
Employer exercise control over the employee but no control was exercised by employer on contractor. It is considered as traditional test which was developed in Zuijs v Wirth Bros(Zuijs…
Australia South Lake Management health finance management  University of New South Wales 

BSBWHS605 Develop Implement And Maintain WHS Management Systems
Download :
0 | Pages :

Course Code: BSBWHS605
University: Swinburne University Of Technology

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: Australia

Work Health and Safety Management System (WHSMS) is a collection of plans, tools, activities and processes. List 3 of these plans, tools, activities or processes and explain what they are,
The means, nitty gritty beneath, can be utilized whether the arranging procedure is straightforward or complex. They are:
Evaluating the current word related to wellbeing and security status including the ‘administration framework’ Lussier, R. N…
Australia Brisbane Management Work Health and Safety Management System (WHSMS University of Brisbane MBA 

BUSN331 Business Law
Download :
0 | Pages :

Course Code: BUSN331
University: Centennial College

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: Canada

In Alberta, the Residential Tenancies Act applies to all the people in this jurisdiction, who rent their space out (Alberta Queen’s Printer, 2016). Through this act, the rights and responsibilities of the landlords and tenants are brought forward (Landlord and Tenant, 2015).
Question 1
Before a tenant can move in the rented accommodation, the tenant and the landlord have to reach an agreement, with regards to the…
Australia Edmonton Humanities Management University of New South Wales Masters in Business Administration 

LA1040 Contract Law
Download :
0 | Pages :

Course Code: LA1040
University: University Of London

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: United Kingdom

A contract is an agreement between the parties which is enforceable legally in the courts. There are several provisions of law which governs how the terms related to the contract would operate. A contract consists of a set of provisions which are known as contractual terms. The weightage of such terms are not equal as one term may have a more significant consequence as compared to the other in relation to their brea…
United Kingdom London Economics Management University of London 

TLAW202 Corporations Law
Download :
0 | Pages :

Course Code: TLAW202
University: Top Education Institute

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: Australia

If any person wants to carry out his business in the form of a company, then, it is necessary that the registration or incorporation requirements of such country must be met. In Australia, the Corporation Act 2001 and the guidelines laid down by ASIC provides with the steps that must be accomplish in order to establish a corporate entity.  (Malbon & Bishop, 2006).
A company is of great significance as it is treated as a …


Need an essay written specifically to meet your requirements?

Choose skilled experts on your subject and get an original paper within your deadline

156 experts online

Your time is important. Let us write you an essay from scratch

Tips and Tricks from our Blog

11174 Introduction To Management

Free Samples 11174 Introduction To Management .cms-body-content table{width:100%!important;} #subhidecontent{ position: relative; overflow-x: auto; width: 100%;} 11174 Introduction

Read More »