Business Law Essay Example | Topics and Well Written Essays - 1500 words - 2

Business Law - Essay Example The creation of the Australian law has been because of the decisions made by the Australian courts along with diverse laws that have been passed by the Parliament of Australia2. In the context of this case study, it can be assumed that both the elements i.e. intention as well as consideration needed for the formation of a contract exists. The main intention of Sally is to sell the bicycle to either Peter or Burt at a cost so that she can meet her outstanding accounts with the creditors and thus needs to make a payment of AU$4000 within the next few days. For a contract to be lawfully obligatory, it is quite necessary for consideration for a promise to exist3. Considerations from part of Peter can be established on the ground related to condition of the bike to be purchased and the free consent in between the two entities becoming a part of the contract. It is to be mentioned that a contract generally comes into subsistence when there are three elements present such as intention to be lawfully bound, agreement and formal execution in a deed. An agreement is attained in numerous ways such as after long and complex negotiation, by accommodating standard terms and conditions that have been set out in a document. An agreement can also be reached without expressly stated terms and when one party proposes to do something in return of an act. The basic method of attaining consent can describe as involving offer and acceptance. An offer must be complete, promissory and proposed to consequence in a contract if accepted. Acceptance needs to be made in an acceptable form4. Step Three: Rule of Law Applied To Facts The case involves numerous legal issues. One of the issues is related to the fact that the bike was delivered to Peter without his consent. For a contract, there must be agreement involving two parties5. The initial price of the bike was quoted to be AU$6000. However, Peter negotiated over the price and asked the bike for an amount of AU$4000. Sally agreed to sell the bike at AU$4000 to Peter. However, Peter refused to pay the specified amount. This can be considered as a legal issue. Peter is not supposed to alter his mind and thus must make decisions rationally. It is to be mentioned that the case presented cannot be considered as a contract since it does not meet the needs of contract. However, it can be stated that the element of agreement required for the formation of a contract can be established. In the context of the case, it has been identified that Sally did not take approval from Peter for purchasing the bike at an agreed upon price. She must not have delivered the bike without gaining any consent from Peter. Sally must state in written statement that she agrees to sell the bicycle to Peter at AU$4000 and Peter must state in written statement that he agrees to buy the bicycle at the price that he has agreed to pay. This will assist both the parties in eliminating any kind of confusions regarding the exchange of goods in the near f uture. Sally can claim that her business has an enforceable contract with Peter when he concurs to buy the bicycle at the amount that has been decided by both the parties. Step Four: Conclusion Contract can be stated as consent