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Contract may be defined as a voluntary agreement which takes place between two or more parties. In legal aspect, agreement turns into contract when it is enforceable by law. In this, the present report will shed light on the aspects of contract as well as associated laws and legislation.
In law, contract may be served as an agreement that creates obligation for the parties involved in it. For developing valid contractual relationship it is highly required for the parties to comply with the essential elements or aspects (Cartwright, 2016). Such elements include offer, acceptance, legal intention, consideration, capacity of parties and lawful objects. In the absence of having one element an agreement would not be enforceable by law.
From assessment, it has been identified that significant difference takes place between common laws and legislation. Moreover, common laws come from precedent, whereas legislation is introduced by the government authority. Hence, it is one of the main aspects which in turn differentiate common laws from legislation to the significant level (Poole, 2016). Further, rules related to contract, tort and property aspect comes under the category of common law. On the other side, legislation offers rigid and formal interpretation of rules as well as regulations.
In Australia, laws can be distinguished into two types such as common and statutory. In addition to this, businesses can also be divided in different forms such as sole trader, partnership, trusts, co-operatives, public and private limited organization. In this, Trade practices and privacy Act as well as law of tort are highly significant (Martin, 2016). This in turn provides high assistance to different types of business organizations in performing activities in an appropriate manner.
Validity and performance are two major aspects of simple contracts which in turn help concerned parties in developing lawful relations. Further, there are mainly two types of contracts that can be made such as express and implied. Under express contract, both terms and conditions are mutually agreed by the parties (Adriaanse, 2016). On the contrary to it, in the case of implied term acceptance is given by offeree through the means of performance.
In contract, main elements of which are needed for the development of legal relationship as follows:
In the legal relationship or contract issue in relation to breach is highly common. Moreover, usually plaintiff makes sue on defendant party due to their failure in relation to complying with the specified terms and conditions.
By considering the case of Keneric Tractor sales Ltd v Langille (1987) it can be said that in this situation breach of equipment lease occurred. In this, defendant party had undertaken farming equipments from Keneric on rental basis. On purchase, Keneric provided lease to the manufacturer in the form of securit. During the mid of lease Langille stopped paying instalments. Hence, it is considered as contractual breach because Langille failed to act according to the terms and condition.
In the case of Keneric Tractor sales Ltd v Langille (1987) court gave judgement that contract comes to an end when one party takes decision in relation to repudiation and other accepts the same (Time Limits, Breach & Remedies, 2012).
According to Australian law, contract can be discharged by the concerned parties in the following way:
On the basis of the above aspect, if one party fails to perform according to contractual aspects then other has right to discharge the contract by giving notice. Further, innocent party has right to discharge the contract if defendant party makes material alteration in an agreement (Discharge of a contract | definition | methods of discharge, 2017). On the occurrence of such situation by serving notice contract can be discharged by innocent party.
According to Australian law, remedies which are available at the time of contractual breach include compensation and termination. On the basis of such aspect, innocent party can either demand for compensation or repudiate contract (Yip ssssand Goh, 2017). Selection of remedy is highly influenced from the willingness of concerned party and type of contractual term. In addition to this, plaintiff party also have an option to affirm contract.
By doing investigation, it has been assessed that there are several situations or methods through which contract can be discharged. Hence, according to the situation parties to a contract can select suitable way for discharging the contract. For instance: In the case of actual breach, by giving notice to defendant party, plaintiff can discharge the contract. (Boyle, 2016) However, in this, innocent party is required to prove that defendant failed to perform according to the predetermined terms and conditions.
Through the means of corporate governance and complying with the legal requirements one can deal with legal matters at workplace more effectually. Hence, it can be stated that by indulging the system of internal control business unit can offer high level of protection to shareholders as well as stakeholders (Yip, M. and Goh, 2017). By undertaking such action firm would become able to maximize the value of shareholders and stakeholders.
By summing up this report, it has been concluded that by following the contractual aspects and legislation business units can perform activities more efficiently. Further, there are several remedies available to plaintiff party when breach occurs
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