Legal Social Moral Environment for Business

Question 1:
• Define the term ‘invitation to treat’:

Invitation to treat is a contract law term. It comes from the Latin phrase invitatio
ad offerendum and means "inviting an offer". Or as Andrew Burrows writes, an
invitation to treat is "an expression of willingness to negotiate. A person making
an invitation to treat does not intend to be bound as soon as it is accepted by the
person to whom the statement is addressed." Contract lawyers distinguish this
from a binding offer, which can be accepted to form a contract. The distinction
between an offer and invitation to treat is best understood through the categories
that the courts create. Invitations to treat include the display of goods; the
advertisement of a price or an auction; and an invitation for tenders. There may
however be statutory or complementary obligations, so consumer protection laws
prohibit misleading advertising and at auctions without reserve there is always a
duty to sell to the highest bona fide bidder.

• Two relevant examples:

❖ Example 1

You have a clothing store and have marked sale prices on the jumper rack. You
accidentally put ‘$10.00’ on the price tag, when it should have been ‘$100.00′. A
customer picks up the jumper and is excited to get a great bargain. So, they bring it
over to your checkout to purchase. Then you realise the mistake and tell the
customer that the price is $100.00. The customer can then agree or disagree to
purchase the jumper at that price. You do not have to honour the marked price, as
this was an ‘invitation to treat’. The customer made the offer to purchase when
they brought the jumper to the counter. You can accept or decline this offer.
However, there are exceptions to this, discussed later in this article.

❖ Example 2:
You are driving down the highway when you see a sign for a stall selling
mangoes. The sign states ‘MANGO TRAYS $10.’ You decide to pull over and
purchase a tray of mangoes. You greet the stall owner and go to pull $10 out of
your wallet. The stall owner states that they are out of their usual $10 trays.
However, they have premium mangoes available for $20 per tray. You are upset
 that they have advertised mangoes at $10 and now they want you to pay double
this price. However, the stall owner does not have to give you the mangoes at $10
per tray, since this was merely an invitation to treat.

Question 2:
• Minh did not have to pay the rest of the contract because before the establishment
and this company paid half of the contract and after the establishment of company
ABC continued to transfer a third of the contract to Equipment provider’s bank
accountand then stopped paying, contract was signed before the establishment of
the company but after the establishment the company paid, so now the contract is
ABC company's contract not just a contract signed between Minh and the
equipment provider.

Question 3:
The warehouse owner is not responsible for the loss, because he is required to sign
the invoice with an exclusion clause stating that the warehouse owner is not
responsible for any damage to the goods, which This application comes into force
after the contract has been agreed, which means that he fully agrees to it and
cannot claim compensation from the warehouse owners.

Question 4:
Analyze the “ Legal personality”
• Definition:
Legal person is an organization (a legal entity) with independent legal status, able
to participate in economic, political, social activities, etc. in accordance with the
law. This is a concept in jurisprudence used to distinguish it from natural persons
(individuals) and other organizations. If an organization has "juridical person
status", that organization has all the rights and obligations of a legal person as
provided for by law.

• Conditions of legal person:

First, legally established means that a legal entity can be established on the
initiative of an individual, organization or under a decision of a competent state
agency and has a legitimate purpose and mission. Second, having a tight
organizational structure means that the legal entity must have a tight
organizational structure to turn a collective of people into a unified entity (a
 subject) capable of most effectively performing its tasks. that organization set
forth upon its founding. Third, there must be independent property and
independent self-responsibility with that property, that is, "the independence of the
legal entity's property is expressed as follows: the legal entity's property is
independent of personal property - a member of a legal person, independent of the
superior body of the legal person and other organizations; Independent property of
a juridical person is the property under its right, which is possessed, used and
disposed by the juridical person within the scope of its duties and in accordance
with the juridical person's purposes. Fourthly, participating in legal relations on its
own behalf means that the legal entity is an independent subject of civil legal
relations, therefore, when establishing and performing civil transactions or other
relationships, the legal person must act in its own name and not in the name of
another individual or organization

• Classification of legal entities:

Based on the purpose of establishment and operation, legal entities are divided
into two types: commercial legal entities and non-commercial legal entities.

❖ Commercial legal entity: is a legal entity whose main goal is to seek profit and to
distribute profits to its members. Commercial legal entities include businesses and
other economic organizations

❖ A non-commercial legal entity: is a legal entity that does not have the main goal of
seeking profit, and if there is a profit, it is not distributed among the members.
Non-commercial legal entities include state agencies, people's armed forces units,
socio-political organizations, socio-political-professional organizations, social
organizations, socio-professional organizations, social funds, charities, social
enterprises and other commercial organizations

Relevant example: A limited liability company is called a legal entity ( limited liability
company VICO )