\f\f\f9' \"'3' 22:13 @ 54% [:1- Done law assgiment.docx UTpLorrrUb-zs Introduction Alan is a student of Kaplan Higher Education, he completed Commercial Law module in June 2015 and intends to sell his book to earn money. He offers his book through the Facebook page for $200.00 with the lure including notes that he wrote in class which makes him gained high distinction in fact, he only received a Credit. From Alan's posting, there are three people who are interested in purchasing the book, Bernard as Alan's facebook friend keen to buy the book for $150.00 but unfortunately Alan refused and after long consideration he willing to pay for $200.00. On the other side there are Charleen which is Alan's sister and Damien as Bernard's friends, both of them are also willing to buy the book and already hand over their money to Alan. Furthermore, Alan only gave the original textbook to bernard while for Damien he gave the new textbook that he just bought along with his hand-written notes. At the end, they know that the book is free and they feel cheated by Alan. Issues ASYAH Mm mMegal issue in this case is whether any CT0275tracts have been formed between Alan with these three parties. The specific issues deals with whether it is social and domestic agreements according to the position of each party and whether the termination of offer included since one of parties makes alternative offer to offeree. In other hand there is a minor involved in this case and other issue appear since the statement which is term of the contract turns out to be false. The interesting issue, does silent could be concluded as an acceptance? and whether in this case Alan made a mistake to other parties. Law A contract is an agreement between two or more parties which is legally binding, a contract doesn't have to be ' bud-alonundicnmmrbnjnndnnnchmthdmnnln r)- ? 22:13 @ 54% [:1- Done law assgiment.docx ........_.._._..._.l__....._._..._..._. Law A contract is an agreement between two or more parties which is legally binding, a contract doesn't have to be written but also valid from verbal and conduct but people written down the promises or agreement into a document for evidence and certainty. A contract is enforceable in law if contain the four essential eiements are an Agreement (offer & acceptance), consideration, capacity, and an intention to create legal relations. The agreement is intended that a contract will be considered valid by law, both parties must be present conformity of opinion about what is stipulated by the contract on the other words there's must an offer and acceptance desired which is not from coercion or doctrine between both parties. An offer is a portent of willingness by an offeror to get into a legal binding contract Preston Corpn Sdn Bhd v Edward Leong{1982) an offer can be made for Unilateral, Bilateral, or even to the whole world Carliii v Carboiic Smoke Bail Co{1893) [Ravi, 2006]. Whereas an acceptance is the communication of the approval by offeree to the offer made by offeror. An acceptance must exactly same terms as the offer, if new terms or conditions are introduced then the acceptance become not valid instead that would be a counter offer. when the offeree makes an alternative offer and being rejected by the offeror and the original offer totally being canceled except the offeree makes new offer to oeror Hyde v Wrench (1840). In order to make a contract to be valid there must be a consideration which is exchanged something valuable and both parties must get benet. There are three important rules of consideration that are, consideration cannot be past Pao On v Lau Yiu Long (1980), consideration need not be adequate Chappeil & Co v Nestle Co Ltd (1960) and cannot be insufcient, consideration must move from promisee and need not move to the promisor Beswick v Beswick (1967). And there must be an intention to entering a legal binding contract which is both of parties should be ready and r)- ? 22:13 @ 54% [:1- Done law assgiment.docx can I'ITHKE a WWW years or above clear-minded , not drunk or under the inuence of substances that interfering the mentality. A minor is someone who is bellow 18,they are not capacity entering a legal binding contract as they still cannot take or appreciate the consequence of the agreement [Law Recognises Person As Legal Capacity.2013]. 0n the other hand, there is an exception with this rule. Minor can enter into a contract if that for necessaries for their daily life Nash v lnman (1908). Social and domestic agreement are agreement were made between friends and family such as father promise to his daughter or vice versa, those agreement are not binding Balfour v Balfour (1919) [Avneesh.2010]. Acceptance should not be passive, instead the party must actively accept the offer. Cannot be regarded as acceptable if no certainty or by doing nothing Felthouse v Bfndley (1862) so in other words. entirely silent is not considered as an acceptance. Misrepresentation is a condition when one contracting party making a false statement about a fact to other parties [Matthew,2015]. Parties who receive false statement could claim compensation for their losses Edgingfon v Fftzmaurice {1885). fact that untrue is misrepresentation except if it was an opinion and the statement of fact should be a positive statement or action conduct. Silence is not misrepresentation excepting if what is stated becomes a half-truth by what is left unsaid and where a change of circumstances make a prior honesty statement become misleading Dimmock v Hallet (1866). There are three types of misrepresentation: fraudulent. negligent, innocent. Fraudulent is when misrepresentator knows that facts are untrue [Christi,(n.d)]. The guilty party must pay compensation and refund for damages to the innocent party which has suffered some loss Doyle v Olby {1969) [misrepresentatiom (n.d)]. A mistake is the failure to understand the facts or an oversight caused by differences in interpretation the provisions of an agreement. Further in order to establish mistake, the mistake must relate to something {hie- m 3f lam am Fm- fmm nlnnr r)- ? 22:13 @ 54% [:1- Done law assgiment.docx mistake, and Unilateral mistake. Common mistake both parties are mistaken but on same matter subject while mutual mistake might be same as common mistake that both parties are mistaken but about different matters Raffles v Wicheihaus {1864) the court try to save the contract by applying objective test [mistake,(n.d]. Unilateral mistake is one type of mistakes where one party is mistaken but other parties are innocent and its valid, while it becomes void or not valid if one party is mistaken but other party has fully knowledge if that was a mistake in order to keep alive the contract by leveraging that situation Chewee Kin Keong v Digflandmalf. com Pte Ltd (2005). Apply the Law Based on the principle of law applied to the fact given, there was a valid contract formed among Alan with Bernard and Damien. As it is known to bind a contract there must be contain four essentials element that are an offer that Aian made in his facebook page and there are acceptance from both parties the agreement fullled already. Next is consideration, which is a benet or imptement the promises that have been made between Alan and other parties in this case Alan gave his books and earned money from them and they have the capacity or power to entering the contract regardless from minor, drunk, or even mentai disability. Contract must be far from domestic and social agreement which is made between friends or family, on the other hand Bernard is Alan's friend while Damien wasn't Alan friend. Charleen is clearly a minor she intend to buy the book may be considered as necessaries it does not appear to be a luxury and can be assume that it necessary for Charleen buy the book to increase her knowledge. Whereas in the case of Charleen the contract is void for some reason like as acceptance must not be passive which mean silent is not considered as an acceptance LI_. J'J._LI ' JI L m r)- ? 22:13 @ 54% [:1- Done law assgiment.docx thought that his sister must be mad to read up the book on her age but she still gave the money while Alan didn't notice that. Either consideration or legal intention are not contained in this contract. In addition, Alan and Charleen are siblings then it might be a domestic agreement wich is not legally binding. The contract can be made as written agreement or by verbal discussion or combining both, and the last can also through conduct. In this case the agreement made between Alan, Bernard, and Damien was written down in the message. either in the form of comments on Alan's facebook wall or through 3M8. There is a counter offer since Bernard made an alternative offer by asking Alan to sell the book for $150.00 and Alan reject that after long consideration he willing to buy with $200.00 but the original offer destroyed instead he make new offer to Alan. It is clearly seen that Alan did the misrepresentation to all parties he reveal false statement since the book was free from Kaplan and he giving untrue fact about he got High distinction from those textbook and his notes that he write on exercise book. while ihfact he just received a credit. He also commented to Bemand that his notes are written down in the book that he gave and it is included in silence as misrepresentation by giving half- truth to the offree. The truth is the notes originally written on his exercise book which he gave to Damien. In this case Alan was fraudulent because he knows the fact is untrue and he careless to his buyers. In addition to rescission, the innocent parties can sue for damages that they have suffered such as refunds and fines for the losses because Alan charges them for $200.00 while it was free book and should not be for sale. In this case obviously there are mistakes made by Alan that is unilateral mistake where he ignored Charleen and thought that his sister would not be able to read Commercial Law book at her age, whereas Charleen ' in In...\" Hag L451. W r)- ? 22:13 @ 54% [:1- Done law assgiment.docx that textbook but in this situation Alan is mistaken but Charleen position is innocent, she has no knowledge about the mistake so its valid except if she know that was mistaken but pretend like she didn't notice in order to keep the agreement and that contract will be void. In the other hand, silence does not constitute acceptance so she shouldn't gave her money. Conclusion There are two ways that can be taken in order to resolve the problem between Alan against Bernard, Damien, and Charleen that are mediation or arbitration. Mediation is an alternative form of dispute resolution outside the court to reach an agreement without through litigation which is more expensive, takes long time. and unpredictable. Mediator as the third party is neutral and will listen to both sides perception, the mediator has no power to judging other than persuasive. Arbitration is almost the same as mediation, the difference is the arbitrator looks like a judge who decides which party is right and wrong but just less formal and once the arbitrator dropping a decision it will binding among the parties. Litigation is not necessary in this case since Alain Bernard and Damien are friends and Charleen is Alan sister, they have a close relationship and still can be resolved amicably