Tuesday, February 18, 2020

Contract Law Exam seen case study Essay Example | Topics and Well Written Essays - 1000 words

Contract Law Exam seen case study - Essay Example In order to get that loan, he made Sophia sign on a deed which gave the Bank legal charge over her house. In this case, Tim has an undue influence over Sophia. He stands in a superior position to her and as, according to the given facts, Sophia is expecting her first child and wants to marry Tim, he can persuade her to do anything he wants. Also, Tim is described to be of an aggressive nature. It can be easily construed that Sophia gave the guarantee without knowing the consequences and she did that to secure her future with Tim as he had given assurances to her. He told her that he could afford to marry her only if he could raise some money and became a partner in the firm. That was the sole reason that Sophia agreed with Tim but she was not aware of the subtleties of this transaction. The only advice that she got in respect of this transaction was from Tim. Tim had undue influence over her and his advice would be disregarded. In Yerkey v Jones, a husband procured a guarantee from h er wife against his creditor. It was held that such a guarantee was not valid. In a special set of circumstances, such a guarantee is invalidated, they are: a. A husband procures his wife’s guarantee to obtain a loan; b. The guarantee is not for the benefit of wife but of husband; c. There is a default in repayment by the husband; d. The creditor relies on the wife to get repaid; e. The creditor does not have sufficient reasons to believe that the wife’s consent was free. Sophia’s consent was not free. Tim is not her husband but his relation with her and the facts of the case are quite similar those of Yerkey v Jones. The transaction was for the sole benefit of Tim and had nothing in it for Sophia. Tim has left Sophia after having an affair. The Bank seeks to get possession of her house. There are no sufficient grounds for Trusty Bank to believe that Sophia understood the transaction and gave a free consent. It was obtained under undue influence and resulted in a voidable contract. As Sophia is looking to get out of the contract, it can be easily construed that the contract would become void. Sophia’s guarantee would be invalidated and Trusty Bank would not be able to get possession of her house. Tim is still liable to pay the loan and Trusty Bank has all the rights of a creditor against Tim. Against Deluxe Kitchens Ltd In a legally binding contract, the parties involved must perform their respective promises according to terms on which they agreed on. If any of the parties does not perform its promise correctly, the other party becomes entitled to sue for damages. The damages involve the amounts of losses that are caused directly due to the negligence or fault of the other party. In the given case, Sophia had contracted with Deluxe Kitchens Ltd to build and install some new fitted kitchen units to match existing units and new kitchen equipment for ?15,000. The work was not done as it was promised and Deluxe Kitchens Ltd were 4 week s late in doing their job. Also, their work was not satisfactory. Sophia hired them to install units that would match her kitchen and they did not. Furthermore, there were some errors in their working. In order to fix those errors, almost ?3000 would be required. Sophia was without a cooker and she was offered by Deluxe Kitchens Ltd that they would install her old cooker but she refused. Due to delay in getting a new cooker, she was unable to cater for her sister’

Monday, February 3, 2020

Taxation Essay Example | Topics and Well Written Essays - 750 words - 2

Taxation - Essay Example Taxation in essence is a system created in order to fuel the society, a manner of giving back to society for its protection. This however is not the case in modern times. Governments use taxation to run the national affairs. One thing which has still not changed is using taxation to fund wars. This practice was carried out by empires thosands of years ago and is still in pratice today. An income tax is a tax levied on the income of corporations or individuals. The amounts of tax is determined by not a fixed amount but by a percentage. This means that the tax would increase as the income increase. In most economies there are different tax brackets. This would mean that a certain percentage would be charged for an income of a certain level, however as the income would cross that threshold the tax rate would increase. There are four different types of income taxes based on sources of funds accquired i.e. personal income tax, corporate income tax, capital gain tax, payroll tax and inheretence tax. The idea of income tax is not just to aquire money to run the society (government) but also to keep a check on earnings of the rich. This system of check and balance ensures that a share is given back to welfare of state. Inflation is also controlled through this mechanism. Moreover incomes taxes can be progressive, regressive or proportional. Sales tax is a form of consumption tax. Unlike the income tax it is not applicable when you earn but only when you spend. This is because although the tax is paid by sellers of commodities, it is not in fact actually paid by them. A typical example can be buying your favorite perfume from a shopping mall. When the payment is made there is a few extra pounds charged above the selling price. This is the sales tax; the perfume seller will pay this amount to the government. The income tax would still apply on the seller on his profits and would be collected separately. Adam Smith