The commonest form of contract law Essay Example | Topics and Well Written Essays - 750 words

The commonest form of contract law - Essay Example A court of law usually enforces the contract as long the offeree proves that he posted the letter. For the case of Bella, the letter he posted on 25th September 2006, but arrived on 30th September 2006, the contract to purchase the text book became binding immediately he sent the letter of acceptance. It does not matter that the letter was delayed by the post office. On the issue that since the recommended textbook for the course has changed, and Bella does not wish to buy the textbook, this would not apply. Acceptance one made, it cannot be revoked. The moment Bella expressed his acceptance of an offer, that very moment the contract is concluded, and it does not matter whether the acceptance is by word of mouth or even by writing. On the case of Chu who accepted Arun's offer by telephone, his contract became complete when the acceptance was heard by Arun on 30th September 2006. According to the law of contract, there is an exception to the communication of acceptance. A contact is complete only when acceptance is actually communicated to the offeror. But a contract made by telephone is complete only when the acceptance is heard by the offeror. For this case, Chu should not revoke the acceptance on the basis that the book will not be useful since it is not recommended text book in his course. An acceptance once made, it cannot be revoked. On the case of Dilma, who accepted the offer by email sent on 27th September 2006 but read by Arun on 28th September 2006, the contract became binding immediately the email of acceptance was sent. According to law of contract, there is an exception to the communication of acceptance as acceptance made by cable takes effect from the moment of posting is an exception to the general rule, that a contract is complete only when acceptance is actually communicated to the offeror. For this case, Dilma cannot be able to revoke the acceptance since an acceptance made cannot be revoked. Past Consideration is Sufficient Consideration Although consideration must not be past, there are three exceptions to this rule that past consideration is no consideration. The exceptions to this rule are applicable when:- The past consideration consists of services rendered at the express or on legally implied request of the promissor. A relevant case studied on this concept is that of:- Lampleigh vs. Braithwait In this case B, under death sentence, requested L to obtain King's pardon for him, which he did. B subsequently promised to pay 100 to L, which he failed to pay, and pleaded the defence that his promise was based on past consideration. It was held that as the plaintiff performed services as the express request of the defendant, a subsequent T promise to pay would be binding on him. When a debt, the payment of which is barred by statute of limitations, is revived by a fresh promise in writing for example if a creditor does not demand the repayment of the loan from his debtor within six years of the loan hence he cannot enforce his claim in the court in case the debtor refuses to pay. Lastly in the bill of exchange Act that provides that an antecedent debt or liability on the part of the promisor or drawer of the

Coursework Example | Topics and Well Written Essays - 1250 words - 2

Coursework Example The government also wants that the economy function at the full employment level, so that all the people who are capable and willing to work would be able to attain a job, however the natural rate of unemployment will never be zero due to seasonal, structural and other reasons. (McConnell & Brue, 1996) Zero inflation is considered bad for the economy; however, the inflation rate shouldn’t be too high or even too low in the economy and shouldn’t change rapidly. The government wants to sustain the inflation at a moderate and sustainable level. The prices and accordingly the demand of goods and services will vary according to the price level and therefore it is important that the general price level remain stable in the economy. Lastly, the government also aims at keeping their finances sound as well as the balance of payments account. (McConnell & Brue, 1996) However it is difficult to classify the objectives in order of their importance. And this makes the task of the go vernment difficult due to clashing objectives and a tradeoff needs to be made. Such as a policy that would perhaps stimulate overall demand or aggregate demand in the short run may reduce unemployment but that may increase inflation in the long run and go against the government’s objective of maintaining moderate inflation rate. This may also lead to a worsening of the balance of payment position and the government needs to make a choice as to what is more important. At the same time, growth and inflation are considered to be of utmost importance because growth is what improves the standard of living for people and controlling inflation also leads to general price levels being stable and thus attaining the goal of sustainable growth. Inflation is supposed to be the most important goal to achieve since it is believed that the other aims would be difficult to achieve in the long run if the sustainable inflation rate is missed. (McConnell & Brue, 1996) Governments can employ two policies in times of a recession, that is, a decline in GDP as well in times of expansion, that is, a rise in the GDP level. And these are: fiscal and monetary policies. Fiscal policies involve government expenditure and taxes to increase or decrease the economic activity. There are two types of fiscal policies: contractionary and expansionary fiscal policies. Contractionary fiscal policy is when the government spends less that the tax revenue, that is, the taxes are higher and government spends less on the economy to finance their debt. They also try to increase public sector borrowing requirement. An expansionary fiscal policy is used to expand the economy when it is in recession by the government spending increasing and a reduction in taxes. This leaves people with more disposable income and consumption and spending in the economy increases overall. The figure for an expansionary fiscal policy is shown below: A situation where G=T is one where the overall tax revenue funds the o verall government spending and this is called a neutral fiscal policy and is applied in an economy which is in equilibrium. Fiscal policies can help with the objectives of achieving a stable growth rate, full employment and price stability. However, government spending and borrowing can also lead to high interest rates, and when a debt is incurred, it may need to be facilitated from overseas, monetization or public borrowing. This can actually