Contract Law Problems Essay Example | Topics and Well Written Essays - 1000 words

Contract Law Problems - Essay Example ..any laws or regulations directed toward enforcing certain promises. In Australia contract law is primarily regulated by the 'common law', but increasingly statutes are supplementing the common law of contract - particularly in relation to consumer protection. â€Å" (Clarke, 2011). This law was formerly known in legal circles as the Trade Practices Act of 1974 but was officially renamed The Competition and Consumer Act 2010 on January 1, 2011 due to certain amendments that were made that â€Å"included a repeal of Part IVA (unconscionable conduct), Part V (Consumer Protection, including s 52), Part VA (Manufacturer's Liability) and Part VC (offences). The substance of the provisions that were contained in those parts is now contained in Schedule 2 of the Act which will be known as the 'Australian Consumer Law' and which, by virtue of enabling state and territory legislation, contains Australia's first nationally consistent consumer law. â€Å" (Clarke, 2011). One must keep in mi nd that a written contract is legally binding at the time of signing and cannot be altered nor revoked due to certain conditions that became present after the contract has been signed. By signing a contract, it becomes a legally binding promise on the side of both contracting parties to complete an agreed upon obligation. Australian law requires that a certain set of circumstances must be present at the time of the agreement for the written document to become a valid contract. These factors include â€Å" a compromising offer and acceptance, consideration, intention to create legal relations, compliance with any legal formalities and that the parties have the legal capacity to contract. â€Å" (Clarke 2010). The contract that Watertankz entered into with Harry specifically detailed what he had to do as a client in order to make the document that contained their price quote into a legally binding contract. To be specific, their letter of communication clearly indicated that all Har ry had to do was â€Å"please sign the enclosed terms and conditions of sale document and mail it back to us together with a 10% deposit. The quote is valid until June 30 â€Å". I would then ask Harry to take note of the validity date of the quote that was sent to him, June 30. Under the agreement that was proposed and approved by the company signatories, his rights as their client and their obligation to fulfil the agreement is clearly spelled out. As long as Harry signs the document and gets the document and the check deposit in the mail before June 30, the contract is now legally binding. As such, there are now legal sanctions in place should either party decide to renege on their deal prior to the deadline (Government of South Australia, Contract Law, 2009). Just like any other company in the public service, the price of Watertankz supplies and other pertinent materials may see an increase in cost at any given moment. Which is exactly what happened in the case of Harry. The c ost of materials for Watertankz rose sharply on the first day of June, which would definitely cut into their profit margin or post a loss for their company earnings. So, it us understandable that they adjust their prices accordingly. However, the law of contracts clearly indicates that they cannot reject and formal contract bids that they closed within a specific time frame, regardless of the increase in costs for their own company. The law in effect, protects the