Business Law in Action Essay Example | Topics and Well Written Essays - 250 words

Business Law in Action - Essay Example There was a mutual agreement between the parties and they had agreed to bind themselves by the terms and conditions of the contract. One of the basic principles of contract law is that once a contract is framed and drafted, the parties are duty bound to follow the contract. Therefore, in this case, since the contract was modified by the parties, the owner of the building is duty bound to follow the new terms and condition of the contract. Alpha computers can succeed over Beta Computers for fraud. Beta computers were aware of the overstated inventory for the previous financial year. They did not disclose this inventory to Alpha computers knowing that this might lead to a problem with respect to the buyout. The financial statements are very important whenever a business deal is taking place between two parties since there was a contract being formed; it was pertinent that Beta computers should have divulged all their details. Since they did not do that and went ahead with the contract knowing that they were hiding valuable information, they are liable for fraud.