Contract Analysis

Contract Analysis

  • Submitted By: tionne
  • Date Submitted: 08/20/2015 9:19 AM
  • Category: Business
  • Words: 1007
  • Page: 5

What should you do about continuing to do business with Marshall?

After reading the case study, I would make every effort to terminate business with Marshall after

he had my son to sign a contract that he never mentioned to me. At that time my son was only

17 years old. This action goes against the validity of the contract. An attribute for a contract to

be valid is that the parties being involved in contract signing have to be competent. This is

according to 10 (1) of Contract Act 1959: the parties engaging in the agreement have to be

competent with reference to the law and not void. Competency is regarded by law to be the

ability to be an adult and should not be engaged in contracts if below 18 years; the limit for being

an adult. Section 11 further states that they should be of age of the most people involved (It’s

Law, 2012). As you can see my son is under the age limit to sign a contract, therefore my

business with Marshal will come to an end.

The purpose of a contract is to establish the agreement that the parties have made and to fix their

rights and duties in accordance with that agreement (Nature and Contractual Obligation, 2013).

My son was working as a part time deliveryman for my company and by law he was not capable

of signing the contract on behalf of my company. My son was not a designated employee to

make decisions or be involved in the agreement on behalf of the company.

Good faith and fair dealing is general assumption of the law of contracts, that people will act in

good faith and deal fairly without breaking their word, using shifty means to avoid obligations or

denying what the other party obviously understood ( Gerald and Kathleen Hall). Marshall went

against the duty of good faith and fair dealing when he handed my son the contract to sign. This

is illegal with regards to the law.

To establish good faith and fair dealings...

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