Business Law

Case Study – Second Assigment


Years ago to make agreements it was only by handshaking between each company without writing contracts but nowadays every company uses a contract to do any kind ofagreements, how can we know that the company will fulfill the agreement? Which are the terms and policies? And this kind of simple but elaborate questions the company wants to know. That is why incorporate environment exists “contracts”, but what are these? When we talk about contract is “an agreement between two or more persons in which legal obligations are created which are enforceable by law”(Simons, 1991, p.27). It is important to have writing evidence that help the company to prove and have a back up if exist any kind of problems even though it is a fax, note, phone call, receipt andso on, they are consider as a contract. The contract help us to have a very clear version of what is the company objective and reduce misunderstandings.


Talking about the specific case studybetween the Hotel Pty Ltd and the Convention Organisers Pty Ltd exist 2 different kind of contract and we can related like this: Company VS Company that is the Hotel VS Convention Organisers; Company VSGuests that is the Hotel VS Guests.


First of all the hotel has a contract with the Convention Company that talk about specific points: the rate per delegate per night it is $230 that includes asingle room and only continental breakfast, all the marketing material is include, the Hotel will book directly the rooms, the Convention Organisers has to deposit 50% of the rate from each person andthe terms and policies are on the hotel website. After signing the contract the Convention Organisers create a package for the delegates explaining their benefits on the hotel.


So on, the Companystarted to has some problems with their delegates, in the contract said that the package includes room and continental breakfast but it did not specify what does the continental breakfast include,...