Law and ManagementQuestion No 1:i. terms of a contract 8 marksfrustration of a contract 8 marksThe term contract in the concept of law refers to the binding agreement between two parties. The terms of a contract thus refer to the various provisions included in the contract. Each of the implicated terms in a contact is geared at giving a certain obligation (Murdoch 120). The obligation carried by each of the terms in a contract may differ. This implies that certain terms may bear more significance or obligation than others.
With regard to the concept of law, a number of terms have been coined to depict the significance of various terms of contract. The classification of terms of a contract as implicated in the concept of law. Warranty or condition. This refers to the type of terms that are rooted in the contract it self. A violation of any of such terms disputes the intention of the entire contract. The status of a term of contract With regard to the concept of law, the status of a term is vital since it represents the legal action to be taken in the event that the contract is violated (Murdoch 120). The courts have the right to decide on a number of aspects in the event that a contract has been violated.
A contract can bear terms that reflect on its type with regard that there are several types of contracts. Terms of any type of a contract can take the form of expressed or implied terms. Expressed terms are the type of terms that are documented within the contract while expressed terms are not necessarily documented but are provided for by the contract. Frustration of a contract. This refers to the concept of terminating a contract in line with the legal procedures as a result of unforeseen situations (Murdoch 123).
Such situations under which a contract may be frustrated include: situations that may hinder the attainance of the laid out objectives of the contract, situations that are bound to render the performance of the contract unlawful and a number of situations that seem to make the contract impossible to uphold. The reasons behind the frustration of a contract include: occurrences of accidents, amendment of the law, and illness of any of the parties covered by the contract alongside fire, and interference from third parties.
When a contract is frustrated, its non performance is excused and it is discharged automatically (Murdoch 123). This does not imply that frustration of a contract is still excused in the event of foreseen circumstances. Frustration is also not applicable in certain types of negotiations especially in the insurance policy. 1, b advising Harry using CaseIn this case, Harry offered the bike and Ian was to accept the offer as per the requirements of any contract.
The letter of acceptance is viewed as an implication that the other party in this regard Ian is willing and able to purchase the bike. However with regard to the other terms of a contract, the owner of the bike reserves the right to control the price until when the bike would be delivered. Harry is thus justified to have pledged a different price. Ian can not blame Harry for selling the bike to some body else.
This is because his willingness to accept the offer was not implicated. Though such an agreement needs not to be necessarily documented, it is still a vital aspect of the contract. In this case Ian may not be justified to sue Harry even with the belated letter of acceptance as Harry is not any where involved in the acceptance. He did not receive the letter and can thus not be victimized on an aspect that can be termed as unforeseen. This is type of a frustration. The contract between Harry and his friend is terminated as a result of an accidental posting of the letter of acceptance.