Law for Commerce

COMM 4716EL Assignment 2

Question One

A contractual relationship is defined as a binding relationship in which voluntary exchange of promises creating obligations that, if defaulted on, can be enforced and remedied within the court system (Yates, Bereznicki-Korol, Clarke, 191). It is important to note that in order for a contact to be deemed enforceable all elements of a contract must be present, inclusive of consensus, consideration, capacity, legality, and intention; however, there are various mediums though which a contractual relationship can terminate. The general common rule in the common law system is that when a person has tendered performance of a contract it defines the contract as performed. Tender of performance is present when one of the parties involved in the contractual agreement is fully willing and capable of performing work, but the other party involved in the agreement prevents this action; in addition, if the contract fails to take place the courts will define it as breach and not the party who has tendered performance (Yates, et al., 301). When examining tendered performance in the context of goods and services, and tender of performance is refused, the tendering party has no further obligation and can sue immediately. The breach of a contract involves the failure of the breaching party to properly perform it contractual obligations outlined in the agreement (Yates, et al., 302) and can occur through two different methods. Firstly a breach of contract can occur when one party of the contract does not fully complete the set of obligations outlined in the contractual agreement, or improperly completes the obligations, and secondly when one party of the contract refuses to perform the contract itself. The concept of contract breach can be affirmed through Olson v. Beaulieu [2002] S.J. No. 779 (prov. Ct.). where a seamstress performed alterations on a dress so poorly that the individual who required the dress was left in a distraught state, the...