Contract Laws (Research Paper Sample)

Assignment 3
Assignment Task:
Write up a simple case of a contract that is void because it is entered into under duress (4 marks).
Write up a simple unilateral contract where the offeror reneges on a promise (6 marks). What does the offeree do in response to the offeror’s refusal to do as he promises in the contract (3 marks)?
Contract laws
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Question 1
In terms of entering a contract, duress involves threatening, use of violence or constrain for the purposes of making someone sign a contract. In most cases, illegitimate pressure is usually applied to the weaker party for the purposes of forcing them to enter into a contract. The common laws play an essential role in determining the concepts of the contract laws. When parties are entering into a contract, duress is held to have taken place where an actual threat or violence has occurred. An example is where one party uses threats or violence either directly or indirectly to force the party to enter into the contract. In such a scenario, the contract is considered void. However, the party must prove that violence or threats contributed to their signing of the contract. Forcing a party to enter into a contract through threats and violence amounts to their deprivation of the free will to act.
Question 2
In a unilateral contract, the offeror has to perform an act which indicates that he or she is in agreement with the bargain among the parties. Perfuming an act is also required during the process in order for the contract to take place. The acceptance occurs once the act that the offeror has been requested to perform has been embarked on. Once the offeree has performed the act, the unilateral contract takes effect and any contradiction by the offeror amounts to the renegation of the unilateral contract. In the case of  HYPERLINK "/cases/daulia.html" \t "_blank" Daulia Ltd v Four Millbank, an issue had arise on whether or not the offer may be revoked if the act that had been agreed upon has started but it has not been completed. The court ruled that once the act has been embarked upon, an acceptance has occurred which leads to the unilateral contract. This means that withdrawing the offer once the offeree has started the act amounts to the renegation of the unilateral contract. It is also important to note that the renegation of the unilateral agreement may lead to the legal issues and civil compensations may arise.
On the other hand, the renegation of unilateral contract also occurs when an offeree performs the required and decides to withdraw upon the completion of the act. In the case of Mobil Oil Australia v Wellcome International, the issues of revoking a contact also arose. Mobil oil Australia had promised the dealers that any dealer who performed at a set level for 6 years would be given a franchise for a further 9 years free of charge. However, Mobil later revoked the scheme despite the performance of several delars. The trial judge held that once the offeree has embarked on the performance, the offer cannot be revoked. The full court however disagreed with the trial judge based on the fact that there is no universal proposition that the offeror is not at liberty to revoke the offer once the offeree have embarked on the performance. The action of the company still amounts to the renegation of the unilateral contract. The renegation of the promise has a negative impact to the parties concerned as it may lead to financial losses and it may also lead to the court battles between the parties concerned. The offer may be revoked on special circumstances with the consultations of both parties.
In some situation the offeror may refuse do as promised in the contract with the offeree. While making an offer, it is important to note that it is only based on the promises and not form is required during the process. This means that the process is entirely dependant on the goodwill of both parties. The offeree has the option of rejecting the offer through an outright refusal or making a counter offer incase the offeror refuses to abide by the promises made. However, incase of rejecting the offer, proper communication must be used to ensure that the offeror...