Introduction to business law Coursework Example | Topics and Well Written Essays - 1750 words

Introduction to business law - Coursework Example It can be gleaned from the communications made by herein parties their intention to enter into a contract. Under s.64 of Restatement, acceptance given by telephone or other medium of substantially instantaneously two-way communication is governed by the principles applicable to acceptances where the parties are in the presence of each other. Hence, if Eddie had intended to revoke the contract, he should have manifested the same on Tuesday. In the case of Megalift v Terminals [2009] NSWSC 324, the court ruled that both parties were already in negotiation, discussing terms and details such as transportation and delivery. These conversations involved quotations and although no fixed price was agreed upon, it was nonetheless a contract, which was legally binding. Moreover, her Honour disregarded the quotation for the purpose of a budget only. This did not prevent the parties from contracting. Answer to question # 2. Unfair Contract Terms Act 1977 (UCTA) places a number of restrictions on the contract terms businesses can agree to. Specifically, it lays down rules for the ways in which vendor businesses can use exclusion clauses to limit liability in certain areas. (Business Link, Buyers' terms and conditions and unfair contract terms). The business selling the goods or services isn't allowed to exclude liability for: death or injury - under any circumstances, losses caused by negligence - unless to do so is 'reasonable' and defective or poor quality goods - unless to do so is 'reasonable' (Ibid.) Liability for negligence that causes other types of damage are subjected to a test for â€Å"reasonableness† (Alistaire 2009, Exclusion clauses and unfair contract terms Part  2). S.2(1) of the UCTA states that â€Å"A person cannot by reference to any contract term or to a notice given to persons generally or to particular persons exclude or restrict his liability for death or personal injury resulting from negligence.† Under s2(1) no one acting in the cou rse of a business can exclude or restrict his liability in negligence for death or personal injury by means of a term in a contract or by way of notice (Law Teacher 2011, Exclusion and Limiting Clauses). Bambi cannot make reference to the notice on the desk that excludes or restricts its liability in case of claim for damages resulting from its negligence. UCTA is the main statutory provision, which regulates exclusion clauses and can either render a term effective, ineffective or subject to the test of reasonableness. It applies to business liability as between businesses or a business and a consumer. Therefore, if parties are not acting in the course of a business, say for example a contract between two private individuals, they can exclude liability. UCTA applies to exclusion clauses in the course of a business in three situations:1. Negligence 2. Consumer 3. Standard Term Contracts (Gillhams Lawyers 2008, Business and Commercial Contract Terms). Negligence is failure to use reas onable care. It is the doing of something which a reasonably prudent person would not do, or the failure to do something, which a reasonably prudent person would do under like circumstances. It is a departure from what an ordinary