An understanding of legal system will help to determine the primary sources of law and types of legal materials. The legal system includes rules, procedures and institutions. They help to carry out public initiatives and private endeavors by legitimate means. It can be said that legal system is a system which helps in interpreting and enforcing the law as well as elaborates the responsibilities and rights. Legal system mainly includes civil law, common law and religious law. Others legal systems include jury system, tax system and electoral system.
Civil law systems and common law system are two dominant legal traditions. Civil law system is a system in which core principles are codified as primary sources of law. Common law system is a system in which judge made final law which stands equally with statues enacted by legislatures and regulations adopted by administrative agencies.
Foreign legal system considers as a base for the carry out international relations. This system regulates state actions under international law. The major subjects of international law are states, not individuals as they cover under municipal law. In Europe and Western Hemisphere, foreign jurisdictions have legal systems which come exclusively within either the civil law or the common law. On the other hand, other jurisdictions have mixed legal system. Mixed legal system includes elements of two or more than two legal traditions. This is correct in Africa and Asia because many country which adopting civil law or common law systems also have retained elements of customary law or religious law or both.
Hart published The Concept of Law, his most organized and exclusive essay in general jurisprudence. Today, the concept of law has become an established classic. This essay has five parts. In part 3, three important challenges are to hart’s doctrine of the rule of recognition. They are: 1) Hart’s rule of recognition under and over inclusive.2) Hart cannot explain how social parties are capable of generating rules that confer powers and impose duties and hence cannot account for the normatively of law. 3) Hart cannot explain how disagreements about the criteria of legal validity that occurs within actual legal system, such as in American law, as possible. The core of Hart’s argument is addressed to three questions: what is a legal rule. What are the differences and similarity between law and morality? What is a legal system? Hart answered to these three questions in The Concept of Law is more important to build up a coherent and satisfying picture of introduction of municipal legal system. According to Hart, The Concept of Law is a system of rules and rules are soul basis of legal system. Legal system is a combination of primary and second rules. Rules of recognition are a type of secondary rules which validates a legal system and which is central and essential to every legal system. The rule of recognition requires establishing a test for valid law in an applicable legal system and conferring validity to everything else in the applicable legal system. It is required to unify all the laws in the applicable legal system.
Similarly, the Australian legal system is founded on the concept of the rule of law and justice and equality before the law. Australian legal system also includes primary and secondary rules. The three main principles of the legal system are fairness, equality before the law and justice. Australian legal system is based on the rule of law. This means that everyone has to obey the law. The law applies not only to citizens but also to organizations and government.
Contract is an agreement between two parties which creates mutual obligations enforceable by law, where a promise is fulfilled by one party and consideration is paid by other party. In order to form a contract, there are certain elements to a contract, which are essential to form a contract. These are an offer, an acceptance, consideration, capacity, intention and clarity regarding the contract terms. A contract can be written or oral. A written contract is a contract where all the terms of the contract detailed on a paper and signed by both the parties of the contract and an oral contract is a contract where parties are agreed upon a contract verbally.
There are many elements which can make or break a contract. Invitation of treat is different from the offer. If an invitation to treat is made, instead of an offer then a contract cannot be formed. In the following parts, these facts have been highlighted with case study.
The first essential element to form a contract is an offer. In order to form any contract, one party has to offer, which shows their willingness to enter into a contract. An offer is different from an invitation to treat, where the parties show a willingness to negotiate. An offer is an expression of the offeror to contract on some specific terms, which states the intent that this would become binding on acceptance. And the invitation to treat is invitation to enter into negotiations to create an offer. Such invitation to treat is the intention to get offers from the other party and they do not intend to result in any obligation, which is binding in nature. In Fisher v Bell, it is clearly established that where the goods are displayed in the shop and tagged with price label, then display is considered as an invitation to treat not an offer. It can be offer when customer takes the goods to the cash counter with the payment.
In Harvey v Facey, the property owner’s indication that they may be interest in selling the Bumper Hall Pen at the lowest price, was not an offer, but merely an invitation to treat. This was because the first telegram had asked if Facey would be willing to sell the Bumper Hall Pen, which was not answered in the second telegram. So, the price stated in the second telegram was a response to the request for information and not an offer.
When the negotiations of contract are going on, statements are made by the parties. It could amount to representation or term of the contract. As per the common law, a misrepresentation refers a false and misleading statement of fact which is made by one party to another party of contract at the time of negotiation. It means misrepresentation occurs when one party of the contract made a statement to induce another party to enter into a contract.
In Bisset v Wilkinson, the plaintiff acquired a piece of farm land for sheep farming and asked the seller about the capacity to hold the sheep. Though, the seller had not used land as sheep farm but assessed that it can hold 2000 sheep. The claimant considers the statement true and later this estimation found wrong. The claimant took an action for misrepresentation. But the Privy Council does not consider it as misrepresentation because that statement of seller was of opinion not of the facts.
In order to form a contract, the basic elements of a contract, have to be present in the contract. In absence of such elements, the contract is not formed. In this case, Berry saw the advertisement of fruit and vegetable store and telephoned Angelo to get the information about the store. After having satisfaction, Berry negotiated with Angelo and signed the contract. So it was not an offer, but an invitation to treat. As a result of which a contract could not be formed.
On the basis of above analysis, it can be concluded that a contract was not formed in this case. As per the above discussion, Berry can claim misrepresentation.
In a contract, one party promise to perform duty and other party promise to pay consideration. Legally, when one party fails to fulfill any contractual obligation then other party can break the contract. Thus breach of contract arises. A breach of contract may arise when a party fails to perform duties in accordance with terms mentioned under contracts or does not perform timely or fails to perform whatsoever. A breach of contract can be classified as material breach or immaterial breach to determine the remedies available for breach of contract.
Whenever breach of contract occurs, one of the parties or both may enforce the contract as per the own terms and conditions otherwise parties may try to recover the financial losses due to breach. If both the parties failed to make resolution over breach of contract then lawsuit is only the option.
On the breach of contract by one party, other one will be entitled to get relief. The major remedies for breach of contract are available such as that non-breaching party can claim compensatory damages or punitive damages or nominal damages or liquidated damages. But if the damages are not adequate, non-breaching party may ask for specific performance in which a court can force the non-breaching party to provide service or goods or perform accordingly. Alternatively, option of cancellation and restitution are available to the non-breaching party.
In startup v McDonald, according to the contract 10 tons oil to be delivered to the defendant within last 14 days of March. The claimant made a delivery at 8.30 pm on 31st march and the defendant refuse to accept delivery. Here the claimant had tended performance within actual contractual time duration. The claimant was entitled to damages for rejection.
In order to breach of contract, one party fails to perform obligations towards the other party, contract can be break. In the given case, Berry noticed various things after took over the store. Angelo failed to perform legal obligations due to which breach of contract may rise. Angelo did not give full information about the loading van and broken loader, Berry can break the contract. But if berry does not want to get out of this contract, then they can enforce the contract as per their term and conditions Otherwise as a non-breaching party Berry may recover the financial losses from Angelo.
If Berry breaches the contract due to failure of performance of legal obligations then Berry will be entitled to get remedies. The most frequent remedy is to get the payment of damages. There are various types of damages such as Compensatory damages, punitive damages, liquidated damages and nominal damages. But if Berry does not get adequate damages then the option of specific performance is available for him. It is best explained as the court ordered to perform the duty under the contract. In addition of remedies of breach of contract, cancellation and restitution may be also used. Berry may cancel the contract and sue for restitution if Angelo has given the benefit to the Berry.
On the basis of above analysis, it can be concluded that if aggrieved party does not get out of the contract then financial damages can be claimed from non breaching party or otherwise adequate remedies can be claim.
Conclusion
In the preceding parts, the analysis of the scenario given with the different rules was done, to establish the validity of contract in each case. This analysis highlighted the different aspects of a contract, its elements, the vitiating factors and the differentiating between the terms of the contract and the representation. Through the various case laws quoted above, the rules were elucidated in detail and their applicability to the present case was established. To conclude, this analysis provided a thorough summary of the contract law.
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