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International Commercial Law

Question 5

Considering the two parties, it is presumed that there was a contract. This is argued following the current international understanding of commercial law in the form enforceable contracts (Davies, 2005, pg. 43). From research so far carried out in this field, a contract is any legally enforceable agreement between two individuals or parties. The two have no obligation to put there contract in written. This implies that a contract can as well be performed orally. From a common understanding of international commercial laws, breach of such contracts leads to damages or fiscal compensation.

A close examination of the Townsend vs. Bitterand case, it can be concluded that there was a contract. The two parties at an international meeting had an oral agreement. As a result of this, at the moment Bitterand goes against their oral agreement, Townsend is most likely to get specific performance. This is because in their agreement, Townsend was obliged to ship the package to Paris, France before receiving the payment from Bitterand. In case Bitterand fails to complete the contract, damage could have been done and hence this calls for compensation (Davies, 2005, pg. 90).

In this case, the contract is referred to as enforceable following acceptance of the two parties. Contrary to this, when “offer and consideration” are considered, reception of a performance may not be possible to Townsend. This is because a contract may only be valid in some sates like the United States of America if the buyer puts it in writing (Davies, 2005, pg. 67). The two parties thereafter have to sign the agreement so that it serves as evidence in the court of law. A close look at this agreement, there is no written agreement to support reception of performance in a court of law.

Question 6

When it is taken that a contract has been formed between the two parties, Bitterand can only avoid the contract under the concept of acceptance (Davies, 2005, pg. 75). This is the only way in which two parties that have entered a contract can establish whether they have an enforceable contract. This is taken alongside the issue of offer and consideration or acceptance. Acceptance is the most imperative issue in every contract that involves two or more parties so that the same agreement can be considered legal in a court of law. It is however easy to establish whether individuals have an offer considering real estate business transactions.

In this case, Bitterand will argue that there was no valid contract following lack of written documentation. The two individuals were supposed to sign the contract which would be produced as evidence in a court of law in the case one of the parties failed to fulfill their part of the agreement (Davies, 2005, pg. 92). In addition, when we examine consideration, there was no enough investigation about the validity of the “Anglialingua” computer software package. It was after an oral agreement that the buyer made further consultations about the efficiency of the package. After consultation, it was noted that the package did not work effectively and at the same time overpriced.

This can be considered as a value given to induce the buyer following her ignorance about the package. In a real estate transaction, this cannot be taken as an actual contract. Based on such reasons, Bitterand could argue out that no contract was made.


Davies, I. 2005. Issues in international commercial law. New York: Ashgate Publishing, Ltd.