Commercial Law Case Study

In the case provided, Allan is in a position of a business person. He enters into agreement with three different potential buyers, Bernard, Damien and Charlene. He knowingly accepts money from the three buyers over the same item. A conflict is likely to erupt in future over this deception. Commercial law will therefore be important in in providing resolution when things don’t go as planned. It is important to understand the type of contract that was undertaken in this case. There are three types of contracts in business. They include bilateral simple contract where one party agrees to do something for the first party (Neal et al, 2003). In this case the first parties are Bernard, Charleen and Damien. In all of these cases, there are simple bilateral contracts that are undertaken.

It must be made into writing and signed by the concerned parties. It also requires witnesses to ascertain that a contract was made between the involved parties. Examples include mortgages, land transfer and conveyance. In the case provided there was neither Deeds nor Unilateral contract (Australian Government, 2018). The following elements are proofs that there was a contract involved between Allan and the other three people. They were not coerced in whichever way by the seller to enter into the contract. Similarly, the seller did not use any negative influence to get them into the agreement. For instance, Allan did not threaten any of them to get into the contract. These are not only illegal but will also fail to constitute a valid contract- “genuineness of consent”.

Charleen, Bernard and Darmien had legal age to enter into the contract. This was not the case. He only received the course boo. Allan told him that notes were written in the same book. This is considered as a breach of agreement (Bertino, 2018). Bernard has got a right to sue Allan for breaching the contract as agreed upon. Allan failed to pay attention to statements by Charleen her younger sister since he did not take her serious. However, taking money which was offered by Charleen on his on 6th November 2015 puts Charleen in a legal position as buyer and not just a sister to Allan. Allan accepted the offer that Charleen made to her which now translates this to a legal business contract (Hossaini, 2018).

Therefore Charleen has a valid and legal contract with Allan. Allan then fails to fulfill this agreement between them. Charleen has a right to register a lawsuit for a particular execution. This means that Charleen can still go ahead and ask Allan to execute the contract as initially it was. The court handling is bound to act according to the wishes of Charleen and grant her specific request so long as they are applicable. This is because she has equal grounds to take any action against Allan. Allan has an obligation to convince the court that there exist no standards which Charleen can use in ascertaining damage that his actions have caused to her for failing to execute his responsibility. He too was bound to the contract the moment the payment was accepted by Allan.

This becomes the first element of their contract. This makes Allan liable to perform his part which is now binding the two of them. Allan engages in full contract with Damien by stating that he will deliver the book to him by 7th November 2015. This leaves Darmien in high expectation of receiving the text book with a separate exercise book having hand notes before end of that day. Allan got a credit yet he advertised that the notes enabled him to get a distinction. Available Options for Dispute Resolution There are alternatives in which these disputes can be resolved. The subsequent section also discusses the pros and cons for each alternative as discussed. Arbitration: the parties involved in this dispute can agree on ways of solving these issues.

They should involve some people to act as mediators in these matters (Jannadia et al, 2000). One can also appeal in case of dissatisfaction. However it can take long before the decision is arrived at and is also very expensive (Citizen’s Guide, 2018). Mediation: Allan, Bernard and Charleen can decide to seek a third party who is neutral in this matter to resolve dispute. The mediator chosen in this case tries to uphold rights, interests and needs of all the three (Paul Divers Associate, 2018). This method is cost effective with high level of confidentiality.  European Review of Contract Law, 14(1), 24-59. doi:10. 1515/ercl-2018-1002 Bracher, P. (2018, June 6). Cancellation of contract not justified where most of the price already paid and restitution unlikely | Financial Institutions Legal Snapshot.