GROUP 4

BUSINESS LAW

Bui Thi Xuan Phuong – 1958006

Nguyen Ngoc Duy Tan – 1958007
Dao Mai Ai Tran - 1958008
 Table of Contents
CASE #1 CASE #2

01 Overview 06 Overview

02 Issue 07 Issue

03 Rules 08 Rules

04 Analysis 09 Analysis

05 Conclusion 10 Conclusion
CASE #1
01 OVERVIEW
Kim buys this car and asks Mary if the
car has been serviced regularly Mary verbally admitted that the
car had been serviced regularly

Th
epr
ice
of
th
sci
ar
is
5
,5
00
$
Kim checks her car and spots the
statement of Kim is not true related
to vehicle’s maintenance status.

Kim decided to take legal action

against Mary.
Case #1
Kim buys a used car from Mary for $5,500. Kim pays Mary the $5,500 and after she gets the keys of the
car from Mary, she asks Mary if the car has been serviced regularly.
Mary replies, “Of course, the car has been regularly serviced just like the manufacturer recommended”.
Three days later Kim discovered that the car has not been serviced for more than 2 years, during which
time it has been driven more than 40,000 km.
Advise Kim whether she can successfully sue Mary for damages for breach of contract.
 ISSUE
Legal issue: Kim whether she can successfully sue Mary for
damages for breach of contract under the provision of the
valid contract after buying car and of the Mary’s
02
misrepresentation.
RULES
03
 Contract
Plaintiff: Kim
Defendant: Mary
- Contract Law: Contract law is common laws and applies to all contracts except sales and leases
(governs by UCC – Uniform Commercial Code).
- Purpose: To make sure the private agreement participants that the promises/commitments they make
will be enforceable.
 Elements for the valid of contract:
- Agreement (Offer and acceptance).
- Consideration (Legally sufficient and bargained-for).
- Contractual Capacity (All parties must be competent).
- Legal (Purpose of contract must be legal at time of execution).
 Contract

- Enforceable Contract: An enforceable contract is a legally binding agreement between two or

more people or business entities. The people or entities entering into the agreement are called
the “parties” to the contract. With a few exceptions, contracts do not need to be in writing to
be enforceable but oral contracts are more difficult to prove.
- A breach of contract is a violation of any of the agreed-upon terms and conditions of a binding
contract. It will hold weight if taken to court. To successfully claim a breach of contract, it is
imperative to be able to prove that the breach occurred.
- A breach of contract claim is at the heart of business litigation. The elements of a breach of
contract claim are (1) the existence of a contract, (2) performance by the party seeking
recovery, (3) non-performance by the other party, and (4) damages attributable to the
breach.
 Contract

 If Mary and Kim in case:

- Oral contracts are verbal agreements between two parties. An oral contract occurs when
spoken words are rendered valid and legally enforceable in a court of law.
- For a contract - including an oral contract - to be valid, it must have the 3 essential elements
of an enforceable agreement:
 An executed contract is a signed contract that establishes a contractual relationship between
two or more parties. Once the contract is fully signed, each party agrees to uphold the legal
obligations they agreed on within the written agreement. If any provision is outside or not in
the contract which they signed, the defendant can’t advice breach the contract.
04 ANALYSIS
 Elements for the valid of contract:
- Agreement (Offer: Mary and acceptance: Kim): Mary also has the communication with Kim in giving the
price as well as status of service’s car for her. All offers in a sales contract must be valid and once
accepted, it is binding on both parties that agree to become a valid agreement.
- Consideration (Legally sufficient and bargained-for): Both Mary and Kim also have something of value
exchanged by each party are money - $5,500 and a used car.
- Contractual Capacity (All parties must be competent): Both Mary and Kim are not under the age
(Minors), mental disability or uncontrolled status (drunk).
- Legal (Purpose of contract must be legal at time of execution): According to Contract act, this agreement
may become a valid-contract only, if it is for a lawful consideration and lawful object.
- Contract law: If Mary as the offeror makes a valid offer, and Kim has
made a valid acceptance, then a genuine agreement has been
reached.
- In this case both Mary and Kim have already been in the voluntary
consent to the contract of selling cars.
- They also have an agreement in an express contract is an exchange
of promises in which the terms by which the parties agree to be
bound are declared verbally at the time it is made.
➜ After Kim got the they keys of the car from Mary, the contract was
done. Based on executed contract and consideration, the car being
serviced regularly is not included in the contract but after the contract,
Kim asked Mary about the service.
05 CONCLUSION
Kim cannot take a legal action against Mary on the breach of contract law.
CASE #2
06 OVERVIEW
 You should sell the
bungalow to me at
Adam will sue me for my the price of
Jack Susan $100,000 and pay for
failure to pay the money I
owed him. your debt to Adam.
 Jack have known that his bungalow
worth $200,000 at the time transfer
and want to set aside the contract.
Mark
Case #2
One evening, Jack met Susan and told her that Adam would sue him for his failure to pay the money he
owed Adam, amounting to USD100,000. After Jack revealed his problem to Susan, Susan persuaded Jack
to sell his bungalow to her at the price of US$100,000 to enable Jack to pay his debt to Adam. Jack
immediately agreed with Susan’s proposal because Susan is the only one in his heart. Jack had always
listened to Susan and would fulfill Susan’s wishes. A contract to transfer the bungalow to Susan was
done and six months later, Susan left Jack to marry her friend, Mark. Jack was frustrated and happened
to know that his bungalow worth USD200,000 at the time of the transfer. Now, Jack decided to set aside
the contract. Advise Jack.
 ISSUE
Legal issue: Whether Jack can set aside the contract
with Susan?
07
08 RULES
 Contract
Plaintiff: Jack
Defendant: Susan

Definition of a Contract: A contract is an agreement

formed by two or more parties who agree to a promise
(or set of promises).
Contracts can be enforced in court.
 Contract

 Requirements of a Valid Contract:

- Agreement (Offer and acceptance).
- Consideration (Legally sufficient and bargained-for).
- Contractual Capacity (All parties must be competent).
- Legal (Purpose of contract must be legal at time of execution).
 Defenses to Enforceability:
- Lack of Voluntary Consent: All parties must voluntarily consent
to the contract.
- Not following the requirements as to Form: Some types of
contracts must be in writing.
ANALYSIS
09
 Valid Contract
The contract was formed by two parties are Jack and Susan who agree to transfer the bungalow.
 Requirements of a valid contract:
- Agreement (offeror: Susan and offeree: Jack): Susan made an offer and convinced Jack to sell the
bungalow to her and he accepted it. 
- Consideration: Jack has money - $100,000 to pay Adam's debt and Susan has the bungalow.
- Contractual Capacity: Jack and Susan are not a minor (under 18) and have the legal and mental
ability to enter into a binding contract.
- Legal: The purpose of the contract is to buy and sell the bungalow and it is legal and not against
public policy.
→ The contract between Jack and Susan is a valid contract.
 Defenses to Enforceability:
 Lack of voluntary consent: 
- Both Jack and Susan voluntarily agreed to sell and buy the bungalow.
- No coercion or misrepresentation in the contract.
- Jack was fully aware of his choices and his consent was formed on free will.
- Susan just made an offer and persuaded Jack to sell, not force.
 Not following the requirements as to Form: 
The contract of the case is following the form legal requires is written form. And most of the contracts
is related to real estate must be in writing to be enforceable.
10 CONCLUSION
Jack should not set aside the contract with Susan under a valid and enforceable contract.
Thanks for listening
our presentation!