Obligations Case Study Example | Topics and Well Written Essays - 2000 words

Obligations - Case Study Example In five different examples we shall try to explain complexity of issues that they cover. According to US Senate "obligation is an order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period." (US Senate reference glossary) Bravo Shearing Ltd (BSL) are manufacturers of tube cutting machinery and have advised in Tube World their latest tube shear at 980.000 Laurel and Hardy Ltd (LH) are manufacturers of welded stainless steel tubing and on seeing the advertisement request further information from BSL, who send a brochure complete with price list. On the price list the shear is listed is listed at 900.000. L&H dispatch a letter stating that they wish to purchase the shear for the list price. BSL have now contacted L&H and advised them that the price in the list is incorrect and that the correct price is 980.000 L&H insist that they have a contract at 900.000 Commercial ads are not considered valid offers, same as general price lists. Obligational offer is document which is obligational for the seller of the product. "There are also obligations in other normative contexts, such as obligations of etiquette, social obligations, and possibly the obligation to spell words correctly" (Law Dictionary and Research guide). On the other hand, if price list is sent specifically on request of potential customer requesting the offer for specific product, than it can be considered as valid offer, and at that moment mailer of the offer or price list has become obligatory document. Therefore, L&H has right to buy tube shear for 900.000 EXAMPLE 2 Dispute L&H have made an offer to PW Metals for the sale of 500 lengths of tube at a price of 1.85/meter. PW Metals have faxed back asking if L&H "may accept a price of 1.80/meter."L&H did not respond, and a week later sold the material to Premier Ltd. PW Metals have now contacted L&H requesting a delivery date for the tubes. Solution PW Metals are right when claiming that they have valid contract for delivery of 500 lengths of tube at price of 1.85/meter, unless that date of validity expiration has been clearly stated on the offer that has been sent by L&H, AND that validity period has expired on the moment when PW requested delivery date for the tubes. The fact that PW Metals asked for price reduction does not have any effect on the validity of previous offer. EXAMPLE 3 Dispute L&H have made an offer by fax machine for 100 lengths of tube to Whitehouse Stockings Ltd (WSL) at 2.30 pm on Monday, 19th of November. After consideration WSL decide to take up the offer and fax back an acceptance at 5.12 pm on the same day, and place a copy of the acceptance in the post that night. Unknown to the either party the fax acceptance falls down a gap in the desk behind the fax machine and is not seen by anyone at L&H. The following morning L&H sell the 100 lengths to Pentagon Steel and there will be no replacements available for several months. At 10 am the post is opened at L&H and they notice the acceptance, upon which they advise WSL of what has happened. WSL claim that they

If you invest $20 million in China Research Paper

If you invest $20 million in China - Research Paper Example The economy’s growth potential therefore identifies room for more investments and capitalizing $ 20 million dollars is not likely to stretch the economy’s resources (Oecd 33). Another significant macroeconomic indicator for determining investment decision in a country is the trend in inflation rate. Inflation defines a steady and significant rise in commodity prices. It can similarly be defined as a continuous decrease in the value of money in an economy. Inflation would therefore induce a loss in invested money because the investment’s value will be lower than the original one and even derived profits might not be able to compensate for the loss from inflation. Inflation trends in China however offer a good indicator because it has conveyed a decreasing trend. The inflation rate was for example reported at 6.9 in the year 2004 and the value had steadily decreased to 2.5 by the year 2008. The steady trend further projects high probability of lower inflation rates in future and this means that an invested amount in the economy is not likely to lose its value. The trend that can be forecasted to persist further shows that an investment in China has high chances of gaining value as the country’s inflation rate continue to decrease (Oecd 33). A review of the past trend of China’s consumer price index also offers a basis for determining prospects of investing the $ 20 million in the economy. The macroeconomic indicator defines percentage change in a group of commodities’ weighted prices and is related to inflation. A fall in consumer price index, as represented by the Chinese economy therefore implies economic stability and improving money’s value with time. The index was for example reported at about four in the year 2004 and... Business organizations are established with the prime objective of making profit through entrepreneurial ventures that may identify diversified economic risk. It is therefore necessary to analyze economic environment around a business in order to understand its possible risks and benefits before deciding on establishing a business. Making decisions over which economy to invest in may require analysis of microeconomic and macroeconomic factors of economies of interest for evaluation and comparison of involved risks and benefits. Similarly, an investor who has focused on one economy needs to evaluate the economy’s factors before establishing a venture. In this paper, the potential and risks of investing $ 20 million in China are investigated, based on the country’s macro and microeconomic indicators. The country’s major challenges are however its banking system that is strictly regulated by the government and its currency that does not reflect real value against other currencies. The government’s regulation may hinder delivery of quality and unbiased banking services and may allow for government control on investments. Trends in China’s macroeconomic indicators identify investment potential in the economy that indicates high probability of further expansion and favorable economic factors. The increasing real gross domestic product, decreasing inflation rate, and falling consumer price index indicates the economy’s trend of increasing stability that is safe for investments. Even though government control over banks and the country’s currency are threats to investment in China, the identifiable potentials are more significant.