International Business Laws

Need an research paper on law (international business). Needs to be 10 pages. Please no plagiarism. To answer the legal questions at hand, let us look into the different principles of law involved in this case. b. Legal Principles Before we can determine as to whether or not there was a passing of property between the seller and the buyer, we need to establish first the existence of the contract. According to Section 3 of the Sale of Goods Act 1895, a contract of sale can be “made in writing…. or by word of mount, or partly in writing and partly by word of mouth…” There are three important elements needed to make a valid contract, namely, a valid cause or object offered, acceptance of the offer and consider. According to the court in the case of Grainger & Sons v Gough1, an offer must be made with the intention of entering into contract with the buyer and not merely an invitation to treat. When it comes to acceptance of the offer, the court ruled in the case of Entores Ltd v Miles Far East Corporation2 the acceptance must be communicated to the seller in order for the acceptance to be bidding upon the seller. The acceptance of the offer may be made in writing or through word of mouth. According to Denning LJ in this case, the acceptance must be made unequivocally and such unequivocal acceptance must be communicated clearly to the seller. For instance, if the acceptance was made through telephone, the buyer should see to it that the seller heard the acceptance. Acceptance and counter offer are two different things so it is important to determine as to whether or not what was communicated to the seller is an acceptance of the offer or merely a counter-offer. Note that acceptance give rise to a contract while a counter-offer does not. Also, in acceptance, the buyer accedes to the terms of the seller while in counter-offer. the buyer proposes different terms to the seller. When a counter-offer is accepted by the seller, such acceptance will be binding upon the parties. In international transactions, the place of acceptance is very important as this will determine the law applicable to the contract. In the case of Entores Ltd v Miles Far East Corporation3, the court ruled that the place of acceptance is the place where such acceptance is communicated. This means that if the offer was made in UK and the acceptance was made in Australia, the laws of Australia shall govern the transaction since the acceptance of the offer was made in Australia. Acceptance is not absolute in the sense that the parties can revoke the acceptance when the terms agreed upon are not met. According to the court in the case of Grainger & Sons v Gough4, the buyer may withdraw his or her acceptance anytime before or after the contract has been perfected. If the buyer withdraws his or her acceptance before the contract has been perfected, there contract is deemed inexistent. An accepted offer needs to be accompanied by valuable consideration in order for a valid contract to materialize. According to the court in the case of Currie v Misa5, consideration is not limited to money but also include rights, interest, profits and the like. As stated by the court in the case of Dunlop Pneumatic Tyre Co v Selfridge & Co Ltd6, the valuable consideration can be a “benefit to the promisor or a detriment to the promisee”.

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