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Question 8/ page 42
In general, a contract is a legally enforceable agreement between two or more
parties with mutual obligations, which may or may not have elements in writing.
Civil contract is defined as an agreement between parties in relation to the
establishment, modification or termination of civil rights or civil obligations. In
order to establish the contract, all of the parties must come to mutual agreement.
The first period for this is process to be called as offer and acceptance. To be a
binding contract, they must also be an offer and acceptance that involves the
exchange of promises to act and/or provide goods, services or money. The act,
promises, goods, services and/or money are called consideration.
About the case, in the first situation between Nhu and Huong,there is no legally
binding contract existing. Firstly, both of them have capacity to enter into a
contract. Nhu wrote a letter to Huong, offers one laptop computer for six million
dong. The proposal showed intention to enter into a contract (selling one laptop for
six million dong), and is bound to the other specified party (Huong). The
consideration here is a six-million-dong laptop. The offer is valid when the offeree
receives such offer; and in this case, Huong received the offer, even she posted her
response to Nhu. Therefore, the offer to enter into a civil contract takes effect.
However, there is a problem related to acceptance existing here. That is, the two
letters (accepting the offer and refusing the offer) were arrived at Nhus office in
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the same delivery. According to Article 400 under the Civil Code 2005, offeree can
withdraw the acceptance if the letter of refusing arrives before or at the same time
with the accepting letter. The two letters arrive at the same time; therefore, the
letter of refusing shall takes effect. That Nhu dispatched the laptop to Huong with
an invoice for 6 million does not abide the contract law. As a result, there is no
legally binding contract between Nhu and Huong, and Huong can send back the
computer to Nhu.
The second situation is between Nhu and Giang. The offer of Nhu to Giang in this
situation is also valid like the offer in the preceding situation. However, the reply
of Giang to Nhu created a new offer. According to Article 395 under the Civil
Code, when the offeree sends back the acceptance with modification to the term
and conditions in the offer, the offeree is deemed to have made a new offer to the
original offer, for which the original offeror may rejects or accepts. In the
beginning, Nhu offered a six-million-dong laptop to Giang but Giang replied
stating that he was only prepare to offer Nhu five million dong. This Giangs act
creates a new offer to Nhu and Nhu refused this new offer. There is no legall
binding contract between these two people anymore, and hence the acceptance of
Giang to the Nhus original offer after two week is not valid. Nhu can sell the
laptop to anyone she wants.
Question 9/page 42-43
a. Under Civil Code, a civil transaction shall be effective when it meets all the
following condition:
- The persons participating in the transaction have the civil act capacity;
same time. Therefore, Minh can successfully withdraw from the agreement with
Hai.
d. Minh will not be successful if a legal action is taken against Garden Ltd for
non-fulfillment of the obligation. According to Article 302 under the Civil Code
2005, in cases where an obligor cannot perform a civil obligation due a force
majeure event, he/she/it shall not have to bear any civil liability, unless
otherwise agreed upon or provided for by law. Minh has a legal binding
contract with Garden Ltd from April 28 to May 1. However, Garden Ltd is
unable to perform the contract because of severe weather conditions to work
outdoors. Normally, not performing contract in required time is considered as
breaching of contract. Nevertheless, in this case, the contract is not performed
because of unexpected circumstances, which is considered not breaching
contractual obligations. Therefore, Minh will be unsuccessful to take legal
action against Garden Ltd.
Question 10/page 43-44
a. Tran is not legally obliged to purchase the statue that Lan has dispatched. Tran
just shows his intent to buy the statute with a reasonable price. However, which
price level is reasonable to Tran is not determined. They do not reach an
agreement yet; they now are in a negotiation. There is no binding contract is
formed, so no legal obligation to force Tran to buy the statue. As a result, Tran
can send back the statue with invoice to Lan.
b. In contract law, advertisements are usually invitations to treat, which allows
sellers to refuse to sell products at prices mistakenly marked. However,
advertisements may be construed as offers if they are unilateral. The distinction
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As discussed above, Trung and Lan have a legally binding contract. However,
Lan sold the statue to another person and did not have goods for Trung. It
implied that Lan failed to perform an act and will be claimed for the reasonable
costs and damages that were either agreed in the contract or actually proved.
In the case between Lan and Pham, they have a written contract already, so Lan
has an obligation to deliver the statute to Pham in agreed time. However, Lan
sell the statute to another party. This means that Lan breaches contract with
Pham. Pham has the rights to require Lan to pay value of the goods for him.
Pham may also claim compensation if nonperformance of obligations results in
damages.