Final assignment for mgt315

Part 1


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Mohammed and Ahmed are very good friends. Mohammed’s apartment needs decorating so he calls Ahmed, who is unemployed at the moment, and asks him: “Will you decorate all three rooms in my apartment for SAR 200?” Ahmed agrees. On May 1 he spends 80 SAR on materials and starts work. On 3 May Mohammed tells him that he needs the work to be finished by 12 May because his parents are coming to stay. Ahmed agrees to finish the work by then. Unfortunately, Ahmed is a bit lazy and the work is only half done by 14 May. He finally finishes on 20 May and asks Mohammed for his SAR 200, plus SAR80 for the materials. Mohammed can’t believe this. He insists that the SAR 200 included the cost of materials, and anyway Ahmed finished late. Mohammed has also lost his job in the last few days and offers him SAR 120. Ahmed consults you for advice.


Under law, four elements are needed to create a contract.


They are:

  1. intention to create a legal relationship
  2. offer
  3. acceptance
  4. consideration


Q: Please define each element and outline how they apply in this case


























Part 2


Put one of the words into the sentences below. You can use each word only once. You may have to change the tense of the verb.


  1. express
  2. implied
  3. presume
  4. amount to
  5. appeal
  6. enforce



  1. Where an oral agreement is made between very close friends the court might automatically ________________ that they did not intend to enter into a legal agreement, even if nothing specific was said on the subject.


  1. I have given you a letter to show the theatre box office when you collect the tickets. It gives you my _______________ permission to use my credit card to pay for them.


  1. The manager of the company decided that if his behaviour ______________ a breach of his contract of employment they may well sack him without notice. 59


  1. I lost the case in the lower court but have been advised that I have grounds for ___________________ .


  1. Where two companies have been doing business for a long time, the court might see an ______________________ contract in their behaviour even though they haven’t specifically agreed anything.


  1. If one party is in breach of contract the other can go to court to try to _____________ the agreement.
















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