Spotting Issues in Business Law

Checklist on spotting issue

Some points to note:

i) Reason for spotting issue: You only have limited time in examination. Spotting issue will help you to focus on the answer.

ii) Topic not mentioned in the question will not be issue.

Example: If exemption clause is not mentioned in the question, no need to discuss whether there is any exemption clause.

iii) Issue should not be too general.

Examples: Does Mary have to pay?

Is there a binding contract?

iv) Issue should be more specific.

Examples: Is the service provided by Peter past consideration only?

Does William have the intention to enter into the contract?

Formation of Contract- essential elements

Question: Is there already a legally binding contract?

i) Offer- a statement of the terms by which the offeror is prepared to be bound

Issue: Is the statement/advertisement an offer/ invitation to treat?

Has the offer been communicated to the offeree?

Has the offer been effectively revoked?

When does the revocation of offer take effect?

ii) Acceptance- the unconditional assent of the offeree to all the terms of the offer

Issue: Is the offer validly accepted?

Does silence amount to acceptance?

Is it a counter offer/ request for further information?

When does the acceptance take effect? (whether postal rule/receipt rule/mixed rule has to be applied)

iii) Consideration- the promise or price that secures the bargain

Issue: Does consideration have to be sufficient?

Is it a past consideration?

Is Peter only performing his existing duty (public duty or contractual duty )?

Does part payment amount to good consideration? (Peter agrees to pay $500 in full settlement of the $1,000 he owes to John.)

Does the promise by Peter amount to promissory estoppel?

iv) Intention-Whether the parties to the...