Business Law of CyberCom Company Samples †MyAssignmenthelp.com

Question: Discuss about the Business Law of CyberCom Company. Answer: Issue Hardcastle Furnishings entered into a contract with CyberCom Company through the companys founder Paul Elliot. However, before the implementation of the contract agreement, Paul Elliot passed on. As a result, the CyberCom directors informed Hrdcastle that they were declaring the contract terminated through frustration due to the demise of Elliott who had signed the agreement. Therefore, Hardcastle intends to know whether the contract was terminated or was a valid contract, and whether it was terminated due to legal capacity (metal illness) or was a valid contract. Rule There might be some situations where the termination of the deal may be the only option. Such situations might include the unforeseen event, impossible performance, and breach of contract. However, the termination of the contract by CyberCom was not due to frustration, but was a valid contract. On the other hand, if the termination was due to legal capacity (mental illness) at the time of the contract, then it could have not been a valid contract. Application Termination due to frustration could have happened only if Elliot had entered into the contract on his own capacity, but not as the companys promoter. There was a valid contract between Hardcastle Furnishings and CyberCom because Hardcastle placed an offer that was accepted by Elliot (Gray 2015, p. 359) Therefore, what remained was for CyberCom to perform its obligated duty in exchange of something valuable. However, if Elliot had a mental illness when he engaged in the contract, and that the illness made him not to understand the nature of the agreement, provided that the other party had the knowledge or ought to have known such illness, a court may make the contract voidable. Such situations are outlines in Gibbons v Wright (1954) 91 CLR 423 and Blomley v Ryan (1954) 99 CLR 362 cases (Australiancontractlaw.com, 2013). Conclusion In conclusion, it is vital to know that both parties in a contract have to fulfill the terms of the contract. Conversely, there may be some conditions where the termination of the contract may be the only choice, and that the court can also make the contract voidable when a person suffering from mental disorder is involved in the agreement. References Gray, A 2015, 'Good faith inAustralian contract law after Barker',Australian Business Law Review, 43, 5, pp. 358-378, Business Source Complete, EBSCOhost, viewed 12 October 2017. Australiancontractlaw.com. (2013).Australian Contract Law | Julie Clarke. [online] Available at: https://www.australiancontractlaw.com/law/formation-capacity.html