International business law Essay Example | Topics and Well Written Essays - 1500 words

International business law - Essay Example A contract and an agreement do not have equal status in the eyes of the law because the former is used in a legal context whilst the other is normally employed in a generic, non-legal sense. A contract is a term used to refer to the coming together of the minds (in other words, an agreement) of two or more parties, the terms of which are binding upon them, and is enforceable in a court of law. It necessarily denotes accompanying obligations and duties of the parties. An agreement, on the other hand, is not legally enforceable and does not create binding obligations on the part of the parties.1 The word â€Å"contract† indicates a much deeper and broader implication than an agreement because of the requirement of certain essential and formal elements to constitute, features not required in an agreement. To legally constitute a contract, the elements of offer and acceptance, consideration, legality of subject, intention to create legal relations, form, and definite terms, among others, must be present.2 An agreement, which necessarily refers to offer and acceptance, is only a part of a contract, but does not make up all of it. An agreement does not need consideration, definite terms, relevant form, and an intention to create legal relations for its formation. ... Moreover, the implication of a contract’s legal enforceability is that whenever one of the parties to it have breached any of its terms, the other can seek recourse in a court of law to recover remedies in accordance with law. Thus, an injured party to a contract can apply for damages, discharge, specific performance, injunction, rescission and reformation.†4 Since agreements are not legally enforceable, the aforesaid remedies are not available to it. B. Kingsley Limited Paul’s dilemma falls into fitness of the goods for the purpose for which they were bought. This topic is dealt both by the Convention on International Sale of Goods (CISG hereinafter) and the Sales of Goods Act 1976 (SOGA hereinafter). The CISG, however, is applicable to contracts of sale of goods that take place internationally, or between a buyer and seller who live in different countries, which are contracting states of the Convention.5 The condition stated in the present problem does not seem to contemplate multi-jurisdictions, but is purely domestic, which makes the CISG inapplicable. Nonetheless, the relevant CISG is discussed without taking into consideration this particular aspect. Article 35(2) of the CISG enumerates the four specific instances when a seller delivers good, which do not conform to CISG. It is understood that non-conformity occurs under the following conditions: the goods are not fit for the purposes of their ordinary use; the goods do not fit the purpose made known to the seller by the buyer at the time the contract was concluded, except when the buyer did not rely, or it was not reasonable for him to rely, on the judgment or skill of the seller; the goods do not possess the qualities they are supposed to have as indicated by the seller, and; they are not adequately