ASSESSMENT

Posted: March 27th, 2020

ASSESSMENT

Zayed University

College of Business

LAW 200: BUSINESS LAW AND ETHICS

Spring 2018

DRAFTING A LEGALLY ENFORCEABLE CONTRACT

Student Name: …………………………..

ID: ………………………………………….

Section: ………………………………….

PART 1

Draft a hypothetical scenario of a valid contract for a sale, rental or employment contract (50 points)

PST Company had offered that it will delve into the contractual agreement that it has established with its employees. John contracts lung cancer and presents his purchasing records from his brand that indicates that he is loyal to it. Additionally, expert evidence proved that he had developed the disease due to smoking. Moreover, he presents several witnesses that testified that the only used the company product. Consequently, the court held that there was a valid contract between John and the cigarette manufacturer since the company had made an offer that John had accepted and paid a consideration for it. Subsequently, the company was liable to pay punitive and liquid damages to the plaintiff since he had fulfilled the terms of the agreement. 

PART 2

SECTION A: Based on the facts given in hypothetical contract scenario drafted in Part 1, identify the following elements. (5 * 6 = 30 points)

1. Offer

The company claimed that it would compensate every person who would accept its offer. Consequently, the offer was open to all the clients. Moreover, the offered had demonstrated that it had the intent to make an offer by offering a deposit that insinuated that it had the capacity to enter into a legally binding agreement. In addition, the court ruled that it was impractical to make an offer to the world. The fact that the plaintiff had contracted a credible hospital for lung transplants for smokers, the contract was not an offer for sale that could have disqualified it from being an offer. The claim that the wording might have been clear is dismissed by the fact that the company had specified that it was only open to the users of its brands irrespective of whether they bought it or not.

b) Acceptance

The client had accepted the offer by only being loyal to the cigarette brand. Moreover, the acceptance did not have to be in writing since it was a unilateral one. Therefore, the contract was binding and the company was liable to compensate John for breach of contract.

• Consideration

There was no consideration for the contract to be valid since it was a unilateral one. Therefore, since the plaintiff had specified all the provided conditions of only using the cigarette brand he had fulfilled the consideration requirement. On the other hand, the offerer had made plans to implement the contract by entering into a contract with a reputable hospital.

d) Competent Parties

Both parties were competent, which makes the contract legally binding. For instance, John has the purchasing power to demand the cigarettes. Moreover, the company had the capacity to provide the compensation since they could afford to compensate the people could contract the disease.

e) Mutual Agreement

The two parties had a mutual agreement since John had accepted the offer in a manner that is acceptable under the law of contracts. For instance, John had agreed to use only the cigarette brand he had satisfied the conditions of the agreement. Therefore, the company was liable to fulfill the terms of the mutual agreement by funding the medication of the patient and possibly punitive damages for his pain and loss of income.

f)  Legality of Purpose

The purpose was legal since both parties were not entering into an agreement that was illegal. For instance, in the state, it was legal to buy and sell cigarettes. Therefore, the purpose of the business was legal that makes the contract valid and enforceable

SECTION B: Convert the facts given in the scenario mentioned in Part 1 into a legally valid contract. (2*7=14 points)

1. Name of the offeror: PST Cmpany
2. Name of the offeree: John
3. Purpose of the agreement: to buy the cigarettes that would not cause lung cancer.

• A description of the consideration promised: the offeree would be compensated with free medical attention and other punitive damages if he suffered from lung cancer after using their cigarette.

• Date of the contract: Not specified
• Place of the contract: Not specified
• Signature of the parties

______________                    ________________________

(Name :                                                           (Name:

SECTION C: For the scenario hypothesized in Part 1, classify the contract by answering the following questions. (3*2=6 points)

a) Is this a bilateral contract?         NO

• In line with the statute of frauds, is a written evidence necessary to enforce this contract? Justify.

No, it is not necessary for it to be enforceable since it is a bilateral agreement