Oliver Garden

Introduction

The meeting of minds on the conformity of the wills of the contracting parties as to the object and consideration creates the obligation which will be the binding force between the parties. As long as the contract gives rise to the obligation is valid and not contrary to law, public morals, public policy, public order or good customs; the contracting parties are legally bond to comply with their respective obligations in good faith.

Background of the Study and Problem Statement

Contracts are meant not only to the business but it is the most popular example where the power of a contract can be expressed. A contract can be presented in the form of written or oral agreement but the most highly valued is in the written form. But there are many things to be consider before making a contract and what are the rights of the contracting parties if and only if, the responsibilities are not performed well. Based on the situation above, the involved product is tangible and perishable and Oliver needs advise on the consequences after the delivery of his goods.

Research Objectives

The study identified the three essential objectives. First is to make a clarification on the case of Oliver and have a better explanation on the law of the contracts. Second is to provide a justification regarding the characteristics of the enforceable contract and the obligations of the involved parties. And third is to establish a well-grounded idea about the termination of the contracts and the applicable solution that Oliver may apply based on his right as a seller.

Research Questions

The study recognized the importance of the contract in making transactions therefore, the study provided several questions.

1. What are the essential elements in the contract?

2. What are the conditions stipulated in the contract between Oliver and Perfect Produce?

3. What are the obligations of the two parties in the contract?

Literature Review

A formation of a contract needs the essential elements and any absence of these elements will signify either that there is in law no agreement or that the agreement is not enforceable as a contract. First, there should be an agreement between the contracting parties is analyzed through the rules of offer and acceptance which makes it as the binding force. Second is the idea of consideration which is a promise will be enforceable at common law only if it is supported by consideration or made under seal. It comes with the mutuality that generally arrives through the form of money, property, or services. Third, the contract should stipulate the intention that manifests on the legal relations or its relativity. Fourth is the certainty where the contract requires to be done, or restricts from being done. The agreement must be sufficiently certain to complete the tasks, rights, or obligations. However, there are instances that a contract can be terminated and arise in different situations. Revocation is when the person that's made an offer decides he wants to take it back. He can revoke the offer as long as there has not yet been an acceptance. Rejection is when saying "No" to the offer. The offer then dies. Counteroffer is when the offeree responds to the offer with an offer of her own. This has two effects: first, rejection of original offer (which terminates it) and second, the creation of an offer. In a way, the offeree and offeror have switched roles as a result of a counteroffer. Lapse of time happens if the offer states that it terminates at a specific date, and should an acceptance not be made by that time, then that offer is terminated. Intervening illegality arrives when the subject matter of the offer becomes illegal after the offer is made but before it's accepted. This arises even in the loss of a subject matter. And the Subsequent death or insanity of either party in which both parties to the proposed contract must be mentally competent.

Methodology

The applied method of the study is based on the use of the secondary resource which will provide the essential answers for the study. The secondary resource allows the study to generate its own analysis regarding the main problem of the study.

Conclusion

According to the conditions stipulated in the contract: "It is a condition of this contract that the apples shall arrive at Perfect Produce's warehouse in perfect condition. If any of the apples in the cases are bruised, damaged or over-ripe, then perfect produce shall be entitled to reject the whole shipment." After using the secondary resource, the study identified that Oliver has a commitment to deliver the goods in perfect condition and due to some defects the purchaser did not accept. Oliver cannot say that the apples are in condition before shipment because part of his responsibility is to secure the quality of the goods. In addition, the purchaser is looking forward to have the goods in its best condition to give justice according to its price. However, Oliver has the right to turn down the second offer or accept it based on his perception.

Main Source:

Standing Committee of the National People’s Congress (2002). PRC Rural Land Contracting Law. [Online] Available at: http://www.rdiland.org/PDF/RDI_RuralLandContractingLaw.pdf [Accessed 12 Feb 2010].