Rollistone sends Bob to give Jimi advice but he gives him misleading advice. Bob failed his apprentice exams but he is hired as an electrical assistant. After the visit an email is sent as normal by Jimi. He fills the details duly and sends a hard copy by email as he normally would. The email is delayed because there is a postal strike, and does not arrive at Rollistone’s offices until two weeks later after the email is posted.
The issue is whether a valid contract exists between Rollistone despite the misleading advice from Bob. The issue is also whether there is offer and acceptance thus creation of a valid contract.
In the case scenario, we see offer and acceptance. An offer could constitute the express offer or can be implied from the character. Acceptance is the unconditional assent by the offeree and communicated to the offeror. Such communication by the offeree are made with all intentions to accept the offer. Such acceptance must be unconditional. Acceptance can occur by the behavior of the parties or through correspondence between both sides.
Another rule is that an offer is acceptable when a medium used by the offeree used is typically used. A medium of communication is considered reasonable if it’s usually used under the same circumstances. However, the mailbox rule is only applicable when the offeree accepts the communication (Gillies 2004). Also, acceptance is valid, when it is mailed before rejection; thus a contract is formed.
In Contract Law, the principal is that, once acceptance is properly mailed, then it is binding to the offeror. The mailbox rule asserts that acceptance is effective after dispatch, this is effective even when the offeror has not received the mail. This rule was also affirmed in Cities services oil co vs National Shawmut Bank. However, there are certain exceptions to the acceptance of an offer by proper mailing. For effective dispatch, to take place, acceptance has to be sent in a timely and proper manner. If the offeror gives a specified period, the offeree has to accept within such timelines (Haupt 2006). If the timelines are not specified, the offeree needs to communicate such acceptance within a reasonable time.
When Jimi is sent an email and fully fills the form and replies with a deposit, he accepts the offer of the company unconditionally; therefore a contract is created between Jimi and Rollistone. In Taylor V Allon 1966 it was decided that the offeror can waive the need for communication in regards to acceptance. It was also determined that acceptance takes place through conduct. In Jimi’s case, the acceptance takes place by the conduct of the offeree when he sends a deposit and depositing the mail with details duly filled (Galaty 2001).
In Jimi’s case, we see that he communicates as usual, and responds within the shortest period, thus the mailbox rule applies to him. A valid contract is formed even when the offeror receives the acceptance after time lapses. Therefore, in the above circumstances, the offer and acceptance are valid as per the rules of contract.
Conclusion
Consequently, a contract exists between Jimi and Rollistone. Rollistone is obligated to perform their duties as per the contract; otherwise they will be in breach and damages will follow.
The rule in agency are that in regards to Bob, who is the new assistant who gives advice to Jimi, the rules of agency apply. Agency law is the relationship between an agent and the principal or master. The agency relationship arises when the principal or master asks the agent to act on their behalf in the contract thus creating a responsibility to the master in regards to the agent’s actions. These agency relationships are often formed through power of attorney. An agency relationship is created with the consent of the agent and the master. A person cannot become an agent of another person by force. The concept of control always exists between the master agent relationships (Mann 2018). Usually, the agent has to act under the instructions of the principal. The authority of an agent can be apparent or actual. If actual authority is practiced by the agent, the agents act as if the principal is the one acting; thus, the agent’s actions bind the principal. If the principal, without knowledge, authorizes the agent to act in a certain way, then apparent authority is implied. Fowler vs. Westair Enterprise shows where implied agency relationships exist. The court held that Fowler represented the sellers because he was also the listing agent.
Also, the Cases in agency show that liability against the agent warrants an authority which is non-existent. In Humblle vs Hunter, an agent is liable when he acts on behalf of the principal, and such identity is disclosed. If a party identifies such relationship before any action has been taken, then the third party can sue the principal (Beatty 2008). In Okolo and Ors vs UBN, it was held that a company would bear liability when it enters into a contract on behalf of an incorporated company.
The issue is whether Rollistone is liable for the acts of Bob who is acting as an agent on behalf of Rollistone, and whether the actions of Bob are binding to the principal (Company).
In relation to the above rules, an agency relationship exists between Rollistone and Bob, and the principal is liable for any contracts created by Bob. Jimi relies on Bob’s advice while making a decision in regards to waiting for the switches. Jimi can sue the principal for specific performance because the agent acting on his behalf negotiated a valid contract between the company and the client.
Conclusion
Therefore in the case of Bob, the principal may have to incur liability in regards to the contract which arises between Jimi and Rollistone. On the other hand, Rollistonme can avoid the contract on basis of hardship or being unable to perform due to unrealistic demands, commercial impracticability. This happens when the contract is too costly and hence performing such contract is not financially practical. Therefore, circumstances which are not anticipated could lead to a party being excused from performance. Therefore, in Jimi’s and Rollistone case, Rollistone could be excused from the contract due to the commercial impracticability of the contract unless Jimi adds the $1000 upfront.
Case Scenario 2-Torrent system on Registration of Land
The Torrens land registration system, introduced by Robert Richard Torrens, was introduced in 1850’s when he was the registrar of lands. The Torrens system requires that there is a single register for all details and interests affecting a piece of land. Such interests include easements, caveats, resumptions, mortgages, leases and charges in ownership. Under the Torrens system, the property can be classified into a real and personal property.
Real property includes land and things attached to it. Sometimes land is referred to as reals estate or realty. Things such as steel and wood built into structures also become real property. Plants such as trees and or plants growing naturally on land are also treated as real property. However, plants which require supervisions and cultivation are not considered real property. On the other hand, personal property is any property that can be moved. Personal property can include chattels, which are tangible property. Personal property, such as fixtures on real property, become real property.
Claims in real property vary depending on whether property is attached and becomes part of the real estate and whether property is personal. Therefore the statement claims in and against real property take note of the different forms of possession of the personal and real property.
The nature and scope of clams under the land registration system as opposed to PPSA.
The Torrens certificate shows that a person who is registered as the owner of the land own it free from all encumbrances and estates; except those noted in easements, leases and local liens (Brennan 2014). Adverse possession cannot be used to claim a title in the Torrens system. Therefore, the owner of the title has rights against the land and cannot be claimed by anyone except with certain exposition to the government (Rossini 1998).
Claims against personal property in the land registration system is possession based. On the other hand, most forms of valuable properties are an intermediate between money and land. The PPSA registers all security interests; dealing with competing interests, protection of third parties and rules of enforcement and extinguishment in personal property. In PPSA fixtures are not included in the interests in land. PPSA determines the extent of interest one has on personal property this was difficult to determine before the introduction of PPSA.
Conclusion
The PPSA concerns itself with property with the element of security interest. Comparatively, clams on property in the land registration system is concerned with the general interests. The PPSA strikes the balance on competing interests to land.
References
Backhaus, J. G. (2005). The Elgar companion to law and economics. Cheltenham, UK: Edward Elgar.
Beatty, J. F., Samuelson, S. S., & Beatty, J. F. (2008). Legal environment. Mason, Ohio: Thomson/South-Western West.
Brennan, G. (2014). The impact of econveyancing on title registration: A risk assessment.
Galaty, F. W., Allaway, W. J., & Kyle, R. C. (2001). Modern real estate practice in Ohio. Chicago, IL: Dearborn Real Estate Education.
Gillies, P. (2004). Business law. Sydney: Federation Press.
Haupt, K. J., & Rockwell, D. L. (2006). Principles of California real estate. Bellevue, WA: Rockwell Pub. Co.
Mann, R. A., & Roberts, B. S. (2018). Smith & Roberson’s business law.
Rossini, C. (1998). English as a legal language. London [u.a.: Kluwer Law International.
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