Challenge for the Principles of Asian Law - MyAssignmenthelp.com

Questions: 1. Peter has any rights to revoke the offer aftersignedthe nominated place for acceptance or not. 2. Is Peter is bound to pay $ 300 000 to Wendy or not? Answers: Law The contract law concerned with the legal enforcement of the promises between two or more than two parties for forming an illegal relationship. For the formation of the contract, it has five essential elements, which are agreement, consideration, intention, capacity and certainty. The postal rule is one of the exceptions in the general rule of the contract law where the acceptance of an offer takes place through a letter and formed a legal contract. In the formation of the legal contract through the postal rules, it must make an offer through a mail or letter, which is received by another party. After receiving the offer, the acceptance must be effective as soon as it is posted in the postal rule for revocation. It will be effective when the offeree has received the offer before they post the letter of acceptance. Therefore, the postal rule also consists of the equal terms like other common contract terms, which includes the agreement, consideration, intention, capacity and certainty (Hiscock, 2016). Adam v Lindsell [1818] is one of the significant cases of Postal rule under the contract law, which was found by the Federal government and identified the importance of the facts where a contract has formed through a mail, which consist the elements of contract. Tallerman Co Pty Ltd v Nathan's Merchandise (1957) is another example of contract law of Postal rule where the court has identified the issues about the dissatisfaction of the terms of contract due to not accepting the offer. Bressan v Squires Supreme Court of New South Wales [1974] is another postal rule case where a contract has formed through a letter between the parties but it failed to satisfy the elements of contract. in Entores Ltd v Miles Far East Corpn (1955) and Holwell securities Ltd v Hughes (1974) other two cases of Postal rules under the contract law where contracts have been formed but the terms has breached by the parties. According to the law of contract, revocation is a form of remedy for the buyers when the buyer has accepted a nonconforming good from the seller and after receiving such goods, the buyer may reject it. The buyer has rights to revoke the contract if the offer has failed to confirm according to the contract and if it is substantially impaired the value of the goods. Carlill v Carbolic Smoke Ball Company case, the court has stated that offeror can revoke the contract before it has been accepted but it is only applicable when the revocation is must take a form that is similar to the offer. Therefore, an offer may not revoke if it has been identified as an option. As per the terms of postal rule, it also represents a valid contract between two or more than two parties. Revocation is only effective when it has been communicated and received by the offer after the contract has been formed between the parties. Bryrne v Leon Van Tien Hoven is one of the significant English contract law cases for the issues of revocation in relation to the postal rule. In this case, the court has stated that the offer is only revoked by the direct communication with a fair terms and the postal rule does not apply in this case due to the posting as simple letter, which is count as a valid acceptance, and it does not count as valid revocation (Hiscock, 2016). An offer can be revoked at any time before it is accepted, unless it is not applicable if it will treat as an option according to the conditional agreement or it is itself an irrevocable offer. Goldsbrough, Mort and Co Ltd v Quinn [1910] the revocation has found as an irrevocable offer and it was revoked after accepted the terms of the contract. An offer can be revoked due to the failure of a condition subject to which the offer was made. Therefore, if the condition has been made during the formation of the contract and it has failed to satisfy the offer then the contract can be revoked. In the case of McCaul Pty Ltd. V Pitt Club Limited (1957), the revocation has found due to the failure of the conditions when the offer has been made where the plaintiff has cancelled the offers for not providing the actual products as per the contractual terms. Application According to the case study, the Peter and Wendy have formed a contract through a telephonic conversation. Peter asks Wendy about a truck, which has a heavy-duty suspension to transport bags of concrete to construction projects in rural areas. Therefore, the contract has been formed for buying trucks with heavy duty of suspension for $ 300 000. According to the application of the postal rule, a contract has formed through a letter. However, Peter wants to revoke the offer after he entered into the contract. As per the terms of the revocation, after entering into a valid contract, no party can revoke the contract. A valid and legal contract has established between them which is consists of agreement, consideration, intention, capacity and certainty. According to the Australian Contract Law, the contract has established through the application of the postal rule, which is a valid and legal (Wright, Ellinghaus, Kelly, 2014). According to the above facts, Peter and Wendy entered into a valid contract. Here, they have formed the contract about to buy a truck with heavy-duty suspension which will cost $ 300 000. However according to the terms of the contract, when Peter received the delivery of the truck, he found that it has no facility of heavy-duty suspension. Therefore as per the terms of the contract, Wendy has breached the contract. Now Peter refused to pay $ 300 000. According to the terms of the revocation form of remedy for the buyers when the buyer has accepted a nonconforming good from the seller and after receiving such goods, the buyer may reject it. The buyer has rights to revoke the contract if the offer has failed to confirm according to the contract and if it is substantially impaired the value of the goods (Hiscock, 2016). According to the perfect tender rule buyer can reject the nonconforming good or revoke the acceptance of the offer. The buyer only revokes the contract after he recovers that substantial damage of the goods or for missing parts of the goods (Wright, Ellinghaus, Kelly, 2014). If any substantial changes found of the goods which is not occur due to the own fault of the buyer. It is not applicable if the buyer himself notify to the seller about the revocation. Therefore, the buyer has right to revoked the contract. Now as per the facts of the case, Peter founds missing parts in the truck, which was delivered to him. According to the contract terms, Wendy has breached the terms of the contract. Therefore as per the terms of the revocation, Peter has right to revoked the contract because the delivered truck was not consists with heavy-duty suspension as per the contractual terms beteen Peter and Wendy. Conclusion As per the case fact, it can be concluded that: Peter has no rights to revoke the offer after signed the nominated place for acceptance of the contract. Peter is not bound to pay $ 300 000 to Wendy as she failed to satisfy the terms of the contract. Bibliography Adam v Lindsell [1818] B Ald 681 Bressan v Squires Supreme Court of New South Wales [1974] 2 NSWLR 460 Byrne Co v Leon Van Tien Hoven Co [1880] Carlill v Carbolic Smoke Ball Company [1892] EWCA Civ 1 Entores Ltd v Miles Far East Corpn (1955) Goldsbrough, Mort and Co Ltd v Quinn [1910] HCA 20; 10 CLR 674; (1910) 17 ALR 42 McCaul Australia) Pty Ltd. V Pitt Club Limited (1957) 59 SR (NSW) 122 Tallerman Co Pty Ltd v Nathan's Merchandise (1957) 98 CLR 93, 111-112 Reference Hiscock, M. E. (2016). The Universality of Good Faith and Moral Behaviour: A Challenge for the Principles of Asian Contract Law. InLegal Thoughts between the East and the West in the Multilevel Legal Order(pp. 355-367). Springer Singapore. Mcdermott, P. A. (2017). Contract law. Bloomsbury Publishing. Poole, J., Shaw-Mellors, A., Devenney, J. (2017). Contract Law Concentrate: Law Revision and Study Guide. Oxford University Press. Wright, T., Ellinghaus, M. P., Kelly, D. (2014). A Draft Australian Law of Contract.