Hire Writer To constitute a contract, there must be an acceptance of the offer as noted above. Until the offer is accepted, both parties have not assented to the terms and, therefore, there is no mutual assent. Offeree in a manner invited or required by the offer.
Each of these issues will be considered individually below. The rule of law for this issue is in regard to two potential issues. S 1 provides that directors have a requirement to exercise reasonable care and diligence in their duties for the company.
The objective test for this is whether a reasonable person would have acted differently under those circumstances. In addition, an overlapping rule between statutory law and common law pertains to the requirement to exercise fiduciary duty of care and diligence, as shown in the recent case of Vines v ASIC,NSWCA This includes such a duty to avoid acts of corporate misconduct and avoid risk from such actions.
A third issue is the breach of agency for the company. In the first case, statutory duty of care, by her lack of care in not checking the order, Carol breached S 1 by conducting the business of the company without reasonable care and diligence, resulting in negligence.
In addition to the objective test of whether a reasonable person would have acted thus, common law also states that ignorance does not protect her from such negligence.
This action did breach the duty of care and fail the similar reasonable person test stated in S 1. Common law implies she should have exercised more care in the order placed.
Failing to do so also is a breach of the minimum standards of care. Thus, Carol failed to execute reasonable care, failed her requirement to act with fiduciary care and diligence, and exceeded her express grant of agency.
She has ignored her duty to exercise reasonable care, to exercise fiduciary care and diligence, and stay within her authorized agency for the company [Reference: In general, directors of a company must not have an interest in a transaction with another company unless the director makes full disclosure of the nature of that interest to members of the company in a General Meeting, and they approve that interest by ordinary resolution.
In this regard, the director must account to the company for any benefit which is received by use or reason of his or her position. S specifies that directors must use their powers to discharge their duties in good faith and in the best interests of corporation and for proper purposes.
S specifies a director using his or her position to gain advantage for themselves is in breach of their obligations to the company [Reference s 1 a ] S specifies that using business information for personal advantage is also a breach of obligation. The objective test of an improper use of a position is whether the actions consist of a breach of the standard of conduct expected by reasonable persons who have knowledge of the duties, powers, and authority of a director.
She has not disclosed the transaction to the company and therefore will be held liable to account for that profit. She also has a general law duty to avoid a conflict of interest. In terms of the Corporations Act, there would also be an improper use of her position as director.
Thus, the conditions for a breach of duty are clearly satisfied. Furthermore, as per s 1A she had a duty as a director to disclose material of personal interest. In the above mentioned case, Kate never disclosed and actively hid her personal interest.
Therefore, the breach in disclosing her interest leads to strict liability, and s 1A applies, leading to s 6.This essay has been submitted by a law student. This is not an example of the work written by our professional essay writers.
Formation Of The Contract Conditions And Warranties. Professor Sullivan UCC Final Exam -Article 2 Fall ANSWER ALL OBJECTIVE QUESTIONS ON "ANSWER SHEET". Objective/ Multiple Choice-Each Worth 1 Point 1 - 3. On June 4, , Mandy, a fruit merchant, mailed Chris, a fruit stand operator, a Did Chris and Mandy fonn a valid contract?
A). Yes, because Chris sent his acceptance to Mandy before. warranties and the obligations of the supplier and purchaser which will vary from contract to contract nor exclusion and limitation of liability which need particular care in drafting and not as such boilerplate or core clauses, although of equal importance.
Latest procurement and supply chain news, opinion, analysis, practical advice and tips from Supply Management, the official publication of the Chartered Institute of Procurement & Supply (CIPS). Chapter Nine Contracts and Consumer Law Contents Introduction A Contract Defined Contract Defined," outlines what contracts are and how people form them.
The second section, The fourth section, "Special Types of Contracts," discusses leases, warranties, advertising, door-to-door sales, and other special types of contracts. The fifth. Utilize the knowledge you have gained to respond to the following essay questions.
Your answers should state your position and use logical arguments and content from .