Australian Contract Law Conducting Businesses

Question: Describe about the Australian Contract Law for Conducting Businesses. Answer: Introduction The relation which develops between different people while conducting business or any sort of barter develops a unique correlation along with the primary one. The correlation often encompasses of different things which join up and hence formulate a mutual existence. The overall belief around the world between rational business men is that the nature of business has always been firm on the verbal commitments before a full fledge contract design. This particular quality of verbal agreement reveals how business has been always affiliated with good intentions rather than shady attitudes, it has always been successful between people who fulfill their responsibilities rather than to shy away from them. The book of law in the Australian courts has been projecting towards ethical business measures and reveals that how this particular activity has been cemented since the dawn of mankind in a trust worthy attitude and aesthetic towards not only being honest but also devotional towards the prod uct rather than just launching and throwing it away (Wiseman Kovarsky 2014). The world operates on different terms and conditions while making deals with other people, these deals have been prescribed onto pieces of paper which have legal constraints, and are embedded with different relevant laws and thus are known as contracts. These contracts not only promulgate how the deal is going to be done but also an array of different calculations and restraints from both the client and the contractors. The formation and ethical approach to these contracts while abiding the law have been discussed below. Formation and Application of Australian Contracts The very essence of a contract is what actually divides its formation into different parts, each of these parts covers the entire modules required to conduct the business. These parts are in different forms and many deals with the ambiguities clients often have to face while in the procedure of these business deals. Each and every contract is based on some proper rules and regulations which are meant to be implemented in a contract. Some terms and conditions are strictly followed in Australian contract law. It is necessary for both the parties to observe the conditions strictly while making a contract. Contract laws usually varies from state to state but the common contract law is observed throughout the country. Some of the formation steps will be discussed here. The very formation for these contracts and the parts have been defined as the most crucial steps in the promise making venture, each of these steps is necessary to consider and are stated as following. Offer The offer clause or part in the contract is the decided amount which is promulgated by the client in order to get a task done whereas the clients offer different prices in the form which is known as bidding. When considering the paradigm of offer, there are many scopes which can be pondered upon and have been defined by the Australian Contract law to be strictly kept in prior notice (Wilson Sandford-Couch 2016). In Australia, offers are generally placed under different scenarios whereas the court orders that these scenarios are to be mentioned separately and in a way which can be understood by the client. Many of these offers are often made to collective establishments of people and sometimes these offers are made to individual people running the companies. There are many reason to why an offer can be termed as unaccepted by the contractors. The first case which deals with the termination is that the contractors who have made the offers can simply deem any offer as insufficient or s imply not to their content which the Australian laws allow them to. However in the cases of the offer to be not suffice enough, the law also allows the client to make different offers if the contractors agree on the terms, these offers are still liable to the contractors for his innate decision of either acceptance or rejection. The case of death of contractors or time running out for these offers also permanently under the Australian Law terminates the offers. The general rejection of the offer is to be submitted to the clients in the form of either direct or non direct communication, the Australian Law has made it compulsory for these notifications to the client in order to save the sanctity of both parties (Sims 2016). In the cases of different disagreements between the contractors and the clients, the third party rule can be applied which can help to sort off the matter. Consideration The consideration under the Australian Contract law has been over the years recognized as a very important factor in making different contracts. The consideration has been also defined as the verbal acceptance by the contractors in paying some amount of money to the clients in order of their fulfillment of the deal. These conditions have been moderated to many extents since the law has been drafted, whereas the common practice in paying some amount of money at the signing of the deal has been considered as a good consideration. Intentions The nature of this particular clause under the formation of Australian Contract law holds paramount of importance while devising such type of legal papers. The intention critically defines that how the contract is to be made in a way which not only fulfills the considerations clauses but also helps to make both parties in a legal bond together. This legal bond has been however in the recent years made necessary by the High Court of Australia because of many cases appearing in the courts where companies did not have intentions clause in their agreements and thus suffered huge losses (Schwenzer et al. 2012). The example of Air great lakes and the company known as Easter is the most famous in Supreme courts up to this date. The first party known as Air great lakes when approached the courts in order to claim the damages made on the contract and the equipment, suffered a defeat in the case as the second company known as Easter argued how the contract did not hold any sort of intentions t owards a legal bond between both companies. These intentions clause however have been made and because of their profound presence in different commercial dealings have been in much importance rather than other types of agreements which only require social and family deals. Different Capacities The Australian Court of law has enforced over the years a myriad of different capacities which needs to be avoided if the proper formation of a contract needs to exist between two different parties. Amongst the first of these ones is that the contract can be voided at any times if any of the two parties suffer a mental disability. The case of Miss Gibbons and her sisters over an acquisition of a property was ruled in the favor of gibbons because of her valid claims with proofs that how her two sister manipulated the owner ship of the property from joint to singular because they suffered from mental illnesses. The capacity clause also deals with different situations such as the intoxication part which terms the contract as void if it has been drafted, signed and agreed under the influence of alcohol. The common law in Australia has also formed different measures of avoidance of these contracts between the minor people and the people on the verge of possible bankruptcy. The Signing Formality The formation of an Australian Contract has been termed as insufficient and incomplete without the formalities being abided by both parties, however these formalities often are different in cases such as the contracts which involve the exchange of lands require both parties to sign the contract, the process of business dealings and social job allocations require just the employee to sign a contract with the company (Pargendler 2016). The above made clauses have made significant impacts on the formation of Australian Contract laws because of different cases being enrolled in the high courts of the country every day. These clauses have been made necessary if the formation is to be ensured. Principles of Australian Contracts The fair share of different principles which have been involved in the Australian law contracts has made dealings easy between different clients. Some of these important principles have been discussed below (Poole 2012). The privacy The Nature of the Australian law introduces a general principle of privacy in these contracts which not ensures the sanctity of the deal but also provides a safe space for all the working to be done. The privacy law states that the contract when made between two different parties cannot be inferred and interjected by any other part even if the contract has been designed to give primal benefits to the third party (O'Sullivan Hilliard 2016). Terms and Conditions The importance in understanding both of these words under the common law of Australian and the contractual law devised by the courts holds significant importance in the business world. The terms are the articulated vision of the deals in form of different regulations which are in harmony with the Australian law, the party that which is found by the law and the court in the event of breaching of these terms are subjected to a termination clause by the opposing party with all favors on their side (Ndekugri Rycroft 2014). Whereas the terms when related with conditions allow for the opposing party to make reasonable and different claims other than the decided ones in the contract. The ministry of Law in Australia has advised all companies to make proper amounts of distinctions when devising these terms and conditions and to properly understand these very important principles of a contract (Klee 2015). The exclusion clauses The Exclusion clause has been serving many of its purposes in different amounts of contracts over the years, with its growing popularity many companies have made this practice to be mandatory in their contracts and therefore helping them escape futile and huge losses in the case of breaching by either themselves or the employees working for the company. The Exclusion clause has been simply explained as the part of the contract which explains that if a party is found in breaching of the contract would not be entitled to pay more than a fixed amount on the contract under the specific clause, these liabilities can also be found to be relating to the breaching of contracts by different employees in the company (Graw 2012). The principle of Duress The commonwealth law in Australia and the regulations imposed when combining all these different principles for the contract making under the ambit of law explain the principle of duress to be a state of contract formality where a single party has been either forced or manipulated to sign a contract and thus makes the part in debt of the other party which is obviously prevailing. The terms found unfair The year 2011, the Australian courts introduced a new revolution in the world of different consumer contract making and thus forming the Australian contract laws to be a more transparent and innovating gesture towards all the people. The phenomenon of unfair terms simply deals with the fact that the clauses which are often found to be unfair by both parties can simply be destroyed or voided in the form of either court rulings or mutual consent between both parties. The influence When considering the subjected effects of all the Australian contract law which have been specifically focused towards the protection of all parties and hence ensure that only the best amount of dealings can be performed the following influences on the business world of Australian companies and people can be critically evaluated. Eradication of Monopoly The eradication of different monopolized setups in Australia by different companies and even different people has been recognized as the most innate and important influence of the contract laws. The laws have provided the people diverse platform and different opportunities to seek out help in times when they are subjected to either unfair terms in different contracts or when they are forced to sign into a contract by a person or a company (Fisher 2014). This ensures not only the trust of people in the law enforcing agencies of the country but also develops a model nature which can be followed by all people and helps to justify the claims in the law book which says that the business venture between people in contracts should always be honest and in complete fairness to ensure a long lasting effect in the shape of either profit margins or capital rise. Transparency The most lucrative advantage of these laws being imposed on every contract formation in the company is the transparency they provide to the people while entering into an agreement with another party, the law states that the terms and conditions are the proof of how the commitment was initiated by both parties and under what sort of context (Bender Do 2014). The terms supply a complete different procedure whereas the conditions supply a complete different task. This makes it relatively easy for both parties to understand their stance in the contract and the procedure for which the contract has been devised. The transparency can also be adjudicated by different capacity clauses which have been released by the government, these laws explain that how a person can infer and evidently term the agreement as void if the partner is found to be under the influence of different drugs and alcohol abuse or his mentally unfit to run the business or sign the contract. The regard for law The biggest influence which the business fraternity has observed because of these laws being passed out is that the companies have been modulated and carefully specimen under the ambit of the state and all its regulations, this means that the company owners, no matter how much bigger companies they run will always have to remember that they are under the law whenever drafting or making different contracts with other companies (Baker et al. 2013). This step unifies all people under the law and helps to make the state run on peaceful grounds and for the betterment of the society. The overall cumulative influences of these laws bargained by the government have increased the flexibility in business and the revival of more sane practices amongst the people to ensure that the verbal agreement and the signing of the contract remains on the same ground of business ethics and the initial money which acts as the derivative does not cause humans to stray from their civic duties. This shows the important of contract law not only in terms of making something authentic but also to make it legally approved by the government of Australia. There are always some advantages of an agreement and in terms of contract law, it has far more significance than any other form of agreement. This is all about the contract law and its applications in Australia. 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