Commercial Law - LAWS108

Invitation to treat

The legal status of an advertisement is?

Contract

An agreement between two or more parties under which legal rights and obligations are created and enforced by the courts. Essentially a set of promises which forms consideration.

Formal contract

A contract signed under seal for the sale of land.

Implied contract

An employment contract that was never written down but both parties have been acting according to its terms.

Unilateral contract

A contract created by an offer that can only be accepted by performance.

Bilateral contract

A contract in which both parties in the agreement exchange promises to perform a specific action.

Intention to create legal relations

In commercial contracts what presumption is carried. (Due to business interests typically being involved)

Equitable estoppel

When a representation is made and the other party relies on the representation, what doctrine does the court use to prevent unfair conduct.

Narrowly

Exclusion or exemption clauses are always [blank] interpreted by courts because they are considered harsh to consumers.

Invalid

Some exclusion clauses are rendered [blank] by statutory provisions in consumer protection legislation.

Regulation

Commercial law provides [blank] to allow parties (contracting and commercial) to pursue commercial transactions that will be legally enforceable.

Framework

Commercial law provides an important [blank] to facilitate and encourage transactions within the business community.

Insurance

Risk transfer contracts for protection against losses

Agency

Conducting transactions through intermediaries

Consumer Credit

Financial services provided to individual consumers

Bailment

Legal relationship involving temporary possession of goods

Competition Law

Regulations preventing anti-competitive practices

Contract law principles

What law’s primary foundation “principles” is commercial law built upon in Australia?

sufficient but need not be adequate

Under Australian law consideration must be…

Depends if they are a third-party beneficiary they can.

Using privity of contract can a third-party sue?

Formation Phase 1

All contract law elements. (offer, acceptance, consideration, certainty of terms, intention to create legal relations and capacity to contract) These factor must be present for a contract to be legally binding. Other formal documents such as a written document is necessary for sale of land.

Interpretation Phase 2

Terms of a contract, conditions and warranties' and hybrid (intermediary) terms. Sale of goods contract affected by statute. Express and implied terms and exclusion clauses.

Performance Phase 3

Breach of contract. Gap between one of contracting parties and their expectation. When a breach occurs there will be remedies e.g. equitable remedy, specific performance, injunction and right to terminate the contract aka recission.

Consent Phase 4

Genuine? Vitiating factors, that may take away [blank] mistake, misrepresentation, undue influence, unconscionable conduct.

Definition of Commercial Law

A type of law which governs individuals and organization who engage in commerce, trade, sales and merchandising.

Commercial law regulation?

Using contracts which address how commercial transactions will take place.

Commercial law business importance?

Crucial, as it ensures that business is run efficiently, effectively and fairly. It protects businesses from potential risks and helps companies by creating industry standards to follow creating a baseline for the future. Also allows for growth opportunities and avoiding costly disputes.

Contract and Commercial Law Relationship

Contract Law forms the basis of enforcement of contracts that are made between parties and thus forms the foundations of Commercial Law which focuses on regulating and creating a framework to work with parties engaging in commerce, trade, sales and merchandising.

How judges/courts deal with commercial law disputes

Fast cost effective and fair solutions, via negotiation, mediation, facilitation, and conciliation, liquid damages clause (without third party interference).

Define Agent

An agent is a person or entity authorized to act on behalf of another, known as the principal, in business transactions and legal matters. Agents have the power to create legal obligations and can negotiate contracts, often serving as intermediaries between parties.

Define Principal

A principal is an individual or entity that authorizes an agent to act on their behalf in business transactions and legal matters, assuming legal responsibility for the agent's actions within the scope of their authority.

If an agent acts beyond their scope of authority and the third party is aware of a agency relationship?

The principal is not bound by the agent's actions, and the agent may be held liable for any resulting damages or obligations. In this case, the third party cannot enforce the contract against the principal, as the agent acted outside their authority.

If an agent acts beyond their scope of authority and the third party is unaware of a agency relationship?

The principal may still be bound by the agent's actions, as the third party could reasonably believe the agent was acting within their authority. However, the principal retains the right to seek indemnification from the agent for any consequences resulting from the agent's unauthorized actions.

indemnification

The principle that a principal may compensate an agent for losses incurred while acting on their behalf, even if the agent exceeded their authority.

Definition of Agency

Relationship between two parties based on an agreement. Enables agent to make contract between principal and third party.

Definition of Agent

A person with express or implied authority to act for a principal with the general object of bringing the principal into legal relations with a third party

Creation of Agency

Expressly, by ‘holding out’ or estoppel, by ratification or operation of law.

Nature and Scope of an Agent’s Authority

The nature and scope of an agent's authority refer to the rights and responsibilities granted to the agent by the principal, which determine how the agent may engage with third parties on behalf of the principal.