In: Economics
QUESTION 5
Decide in each of the following instances whether the contract is valid, void or voidable. Motivate your answers. 5.1 Grace orders an oval-shaped swimming pool to be delivered, but the pool company delivers a square-shaped pool. (2)
5.2 Rob phones Lindsay’s home number and makes her a job offer. The next morning Lindsay’s sister, Janine, comes to work for him. Rob discovers that the offer was made to the wrong person. (2)
5.3 A traditional healer tells his patient, Julius, that he should give him all his sheep in order to be cured of Tuberculosis. Julius agrees. (2)
5.4 Louis thinks that he becomes the owner of the property by paying for the occupancy. (2) 5.5 Robert, a prominent official at the local university, wants to buy Gideon’s car. Gideon is reluctant to sell his car to Robert. Robert tells him that if he does not sell the car to him, he will see to it that his son (Gideon’s son) will not be allowed to study at the local university. Gideon sells his car to Robert. (2)
5.1 An overshaped swimming pool needs to be delivered only if the contract is valid and it is void then it becomes a major issue A valid contract is a written or expressed arrangement between two parties to provide a product or service. Six elements of a contract that make it a legal and binding document. In order for a contract to be enforceable, it must contain: An offer that particularly describes exactly what will be provided. .4 Requirements for a valid contract – Agreement, consideration, contractual capacity, and legality
Agreement – Offer and acceptance -Consideration – something of value received or promised to convince a person to make a deal-Contractual capacity – must be fully aware and conscious of what they are doing when getting into the contract-Legality – cannot be something that is illegal or against the law
These points occurs in case of constructing a swimming pool
5.2 Robeert has given a wrong offer to the wrong person .There is Unilateral contracts vs. Bilateral contact – Bilateral: offeree accepts simply by promising to complete the contract, promise for a promise. Unilateral: offer is phased so that the offeree can accept only by completing the contact performance, promise for an act.Elements of a valid form of an offer – Offer: a promise to preform or not preform an act in the future. There must be a serious objective intention by the offeror, The terms of the offer must be reasonable and definite and the offer must be communicated to the offeree
5.3 A traditional healter cannot provide slee to another person .Disaffirmance of a contact vs. Ratification of a contract – Disaffirmance: is the legal avoidance, or setting aside of a contractual obligation. A contract can be disaffirmed by a minor or for legal reasons such as legality of the contract or insufficient consideration or intoxication. Ratification: the act of accepting and giving legal force to an obligation that previously was not enforceable. -To disaffirm is to deny-To Ratify is to accept
5.4 Louis thinks that he becomes the owner of the property by paying for the occupancy.
Revocation of Unilateral contacts – Offers are normally revocable until accepted. Theoffer can not be revoked once work has been substantially undertaken. Basically youcan make an offer and take it back when ever unless a good deal of the work has been completed by the offeree.Express contract vs. Implied-in-fact contract – Express: terms of the agreement are fully and explicitly stated in words, oral or written. Implied: conduct of parties, not words creates a contact.